Document:

exv10w3

 

EXHIBIT 10.3 

TD BANKNORTH INC.

NONQUALIFIED STOCK OPTION AGREEMENT

2003 EQUITY INCENTIVE PLAN

	1.  	GRANT OF OPTION:

     TD BANKNORTH INC. (the “Company”), granted to ___(the “Optionee”), effective ___
___, ___(the “Grant Date”), an option (the “Option”), to purchase an aggregate of ___shares
of the Company’s Common Stock, $0.01 par value (“Shares” of “Stock”), at a price of $  per
share. The Shares subject to the Option are sometimes referred to as the “Option Shares.” The
Option was granted pursuant to the Company’s 2003 Equity Incentive Plan (the “Plan), and is subject
to the terms and conditions of this Agreement and of the Plan. Capitalized terms not separately
defined herein shall be defined as provided in the Plan. This option is not intended to be an
Incentive Stock Option as described in Section 422 of the Internal Revenue Code of 1986 as amended
(the “Code”).

	2.  	BASIC TERMS OF OPTION:

	 	(a)  	Term: This Option shall extend from the Grant Date until the date immediately
preceding the tenth anniversary of the Grant Date (the “Expiration Date”), provided
that this Option shall only be exercisable as permitted in Section 2(b) below.
	 
	 	(b)  	Schedule of Exercisability: Except as otherwise specifically provided in this
Agreement, this Option shall become exercisable pursuant to the following schedule:

	 	 	 	 	 	 
	Years of Continuous	 	 	Percentage of the Option Shares
	Employment with the Company	 	 	for which the
	or an Affiliate after the Grant Date	 	 	Option may be Exercised
	 	 	 	 
	Grant Date until the day before the first
anniversary of the Grant Date

	 	 	 	0	%
	 
	 	 	 	 	 
	First anniversary of the Grant Date until the day
before the second anniversary of the Grant Date

	 	 	 	33	%
	 
	 	 	 	 	 
	Second anniversary of the Grant Date until the
day before the third anniversary of the Grant
Date

	 	 	 	67	%
	 
	 	 	 	 	 
	Third anniversary of the Grant Date and thereafter

	 	 	 	100	%

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For all purposes of this Option, (i) “employment” shall be defined in accordance
with the provisions of Treasury Regulations Section 1.421-7(h) (or any successor
regulations); and (ii) if this Option shall be assumed or a new option substituted
therefore in a transaction to which Section 424 of the Code applies, employment by
such assuming or substituted corporation (hereinafter called the “Successor
Corporation”) shall be considered for all purposes of this Option to be employment
by the Company or an Affiliate of the Company, as the case may be. The Company and
its Affiliates are referred to collectively as the “Group.” The Option shall in all
events expire on the Expiration Date (unless sooner exercised or terminated) and may
not be exercised at any time thereafter.

	 	(c)  	Exercise Following Termination of Employment:

	 	(i)  	If the Optionee ceases to be an employee of the Group on
account of death, Disability or Early Retirement (as those terms are defined
below), then (A) the Option, to the extent it has not yet become exercisable,
shall become exercisable, and (B) the Option shall remain exercisable until the
earlier of the first anniversary of the date the Optionee’s employment
terminates or the Expiration Date, and shall then expire.
	 
	 	   	For purposes of this Agreement, “Disability” means that the Optionee: (i)
is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected
to result in death or can be expected to last for a continuous period of not
less than 12 months, or (ii) is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or
can be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than three
months under an accident and health plan covering employees of the Company.
For purposes of this Agreement, “Early Retirement” means voluntary
termination of employment after (A) the Optionee has attained age 55 and (B)
either (1) has become eligible for a fully vested benefit under the
Company’s Retirement Plan, as amended (the “Retirement Plan”), or (2) if at
the time of retirement, the Optionee was employed by an Affiliate that is
not an “Employer” as defined in the Retirement Plan, would have become so
eligible if his or her Affiliate employer were an “Employer” as defined in
the Retirement Plan.
	 
	 	(ii)  	If the Optionee ceases to be an employee of the Group on
account of Retirement (as defined below), then (A) the Option, to the extent it
has not yet become exercisable, shall become exercisable, and (B) the Option
shall remain exercisable until the earlier of the third anniversary of the date
the Optionee’s employment terminates or the Expiration Date, and shall then
expire.

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	 	   	For purposes of this Agreement, “Retirement” means voluntary termination of
employment with the Group after the Optionee has (A) attained age 65 and (B)
either (1) has become eligible for a fully vested benefit under the
Retirement Plan, or (2) if at the time of retirement, the Optionee was
employed by an Affiliate that is not an “Employer” as defined in the
Retirement Plan, would have become so eligible if his or her Affiliate
employer were an “Employer” as defined in the Retirement Plan.
	 
	 	(iii)  	If the Optionee ceases to be an employee of the Group for any
reason other than death, Disability, Early Retirement or Retirement, the
Option, to the extent not then exercisable, shall expire immediately upon such
termination, and, to the extent exercisable, shall remain exercisable for
ninety (90) days after such termination (but not beyond the Expiration Date),
and shall thereafter expire.

	 	(d)  	Change of Control:

Notwithstanding any other provision of this Agreement, following a Change of Control
(as defined below), all Options shall become exercisable, as provided in Section 12
of the Plan, and notwithstanding Section 2(c) above, in the event an Optionee’s
employment terminates, the Option shall remain exercisable until the earlier of (i)
the third anniversary of the date the Optionee’s employment terminates, or (ii) the
Expiration Date. For purposes of this Agreement, “Change of Control” means a change
in the ownership of The Toronto-Dominion Bank (“TD”) or the Company, a change in the
effective control of TD or the Company or a change in the ownership of a substantial
portion of the assets of TD or the Company as provided under Section 409A of the
Code, as amended from time to time, and any Internal Revenue Service guidance,
including Notice 2005-1, and regulations issued in connection with Section 409A of
the Code, except that (i) any change in the ownership, effective control or
ownership of a substantial portion of the assets of the Company effected by TD and
its affiliates shall be excluded, and (2) any change in the ownership, effective
control or ownership of a substantial portion of the assets of TD shall be excluded
if TD and its affiliates are not a majority shareholder of the Company at the time
of such change.

	3.  	EXERCISE OF OPTION:

Subject to the conditions set forth in this Agreement, this Option may be exercised by the
Optionee’s delivery of written notice of exercise to the Clerk of the Company, specifying
the number of whole Option Shares to be purchased and the purchase price to be paid
therefor. The Optionee may purchase less than the number of Option Shares covered hereby,
provided that no partial exercise of this Option may be for any fractional Share. The
Company shall then schedule a closing date as soon as practicable, but no later than thirty
(30) business days following receipt of such notice. Unless otherwise agreed by the
“Committee,” as that term is defined in the Plan, payment of the purchase price for

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Shares purchased upon exercise of the Option shall be made by delivery to the Company of
cash or a certified or bank check to the order of the Company in an amount equal to the
purchase price of such Shares; or by delivery of a properly executed exercise notice,
together with irrevocable instructions to a broker directing the broker to sell the Shares
and then to properly deliver to the Company the amount of sale or loan proceeds to pay the
exercise price, all in accordance with the regulations of the Federal Reserve Board. As a
condition to any exercise of the Option, the Optionee shall make arrangement, reasonably
acceptable to the Company, for withholding of any tax or other amount required to be
withheld under applicable law in connection with the exercise of the Option. The Company
shall, upon payment of the option price for the number of Shares purchased, and delivery of
a subscription agreement in form satisfactory to the Committee, make prompt delivery of such
Shares to the Optionee, provided that if any law or regulation requires the Company to take
any action with respect to such Shares before the issuance thereof, then the date of
delivery of such Shares shall be extended for the period necessary to complete such action.
No shares shall be issued and delivered upon exercise of any option unless and until, in the
opinion of counsel for the Company, any applicable registration requirements of the
Securities Act of 1933, any applicable listing requirements of any national securities
exchange on which stock of the same class is then listed, or any other requirements of law
or of any regulatory bodies having jurisdiction over such issuance and delivery, shall have
been fully complied with.

	4.  	NONTRANSFERABILITY OF OPTION :

	 	(a)  	During the Optionee’s lifetime, the Option may be exercised only by the Optionee.
The Option shall not be sold, transferred, assigned, pledged, hypothecated, attached,
executed upon or otherwise disposed of in any way (whether by operation of law or
otherwise), in whole or in part.
	 
	 	(b)  	If the Optionee should die while in the employment of the Group, the Option may
be exercised by the person designated in the Optionee’s will or, in the absence of such
designation, by the Optionee’s estate, to the extent provided herein.
	 
	 	(c)  	If the spouse of the Optionee has or shall have acquired a community property
interest in the Option, the Optionee (or permitted successors-in-interest upon the
Optionee’s death) may exercise the Option on behalf of the spouse of the Optionee, or
such spouse’s successor-in-interest.

	5.  	NO SPECIAL RIGHTS:

The Optionee shall have no rights as a shareholder with respect to any Shares which may be
purchased by exercise of this Option unless and until a certificate representing such Shares
is duly issued and delivered to the Optionee. No adjustment shall be made for dividends or
other rights for which the record date is prior to the date such stock certificate is
issued.

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	6.  	WITHHOLDING TAXES:

The Company’s obligation to deliver Shares upon the exercise of this Option shall be subject
to the Optionee’s satisfaction of all applicable federal, state and local income and
employment tax withholding requirements.

	7.  	MISCELLANEOUS:

	 	(a)  	Except as provided herein, this Option may not be amended or otherwise modified
unless evidenced in writing and signed by the Company and the Optionee. In the event
that the Committee determines, after a review of Section 409A of the Code and all
applicable Internal Revenue Service guidance, that the Plan or any provision thereof or
Award thereunder should be amended to comply with Section 409A of the Code, the
Committee may amend the Plan and this Agreement to make any changes required to comply
with Section 409A of the Code.
	 
	 	(b)  	All rights and obligations of the Company and the Optionee are subject to the
terms and conditions of the Plan. In the event of any conflict between the terms of
the Plan and the terms of this Agreement, the terms of the Plan shall govern, except as
expressly set forth in Section 8 hereof. The number of Shares and the exercise price
are subject to adjustment as provided in the Plan.
	 
	 	(c)  	Neither Shares acquired on exercise of the Option, nor the Option, nor any
interest in either of them, may be sold, assigned, pledged, hypothecated, encumbered or
in any other manner transferred or disposed of, in whole or in part, except in
compliance with the terms, conditions and restrictions as set forth in the Certificate
of Incorporation of the Company, the Plan, applicable federal and state securities laws
or any other applicable laws or regulations or listing requirements and the terms and
conditions hereof.
	 
	 	(d)  	Any interpretation of the Committee of the provisions under the Plan and this
Agreement made in good faith shall be final and binding on all parties.
	 
	 	(e)  	The Optionee agrees that no member of the Committee or of the Board or the
Company or its subsidiaries or affiliates shall be personally liable for any actions
taken in good faith in connection with the Option or this Agreement.
	 
	 	(f)  	This Agreement, and the grant of Options described hereunder, shall not be
effective until this Agreement is executed by the Optionee.
	 
	 	(g)  	This Option shall be governed by and construed in accordance with the laws of
the State of Maine.

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	8.  	CONSENT TO AMENDED DEFINITION:

The Company and the Optionee expressly agree that, notwithstanding any provision in the Plan
or in any employment or retention agreement between the Company and the Optionee to the
contrary, the term “Change of Control” shall have the meaning set forth in this Agreement,
as required by recently-enacted Section 409A of the Code, and not as set forth in the Plan
or in any employment or retention agreement between the Company and the Optionee. The
Optionee acknowledges that the definition of Change of Control included in this Agreement
may in certain circumstances be less favorable to the Optionee, and the Optionee agrees to
such change. Except as expressly noted in this Section 8, this Agreement shall not by
implication or otherwise alter, modify, amend or in any way affect any of the terms of the
Plan or any employment or retention agreement between the Company and the Optionee.

	 	 	 	 	 
	 	TD BANKNORTH INC. 

 
	 	By:  	 

	 	

	 	       Name:  	 
	 	       Title:  	 
	 
	

	Optionee:
	

	 	

	

	 	           Name:
	 
	 	 
	
	Date:	_________________________________
	 

6exv10w4

 

EXHIBIT 10.4

TD BANKNORTH INC.

RESTRICTED STOCK UNIT AWARD AGREEMENT – STOCK SETTLEMENT

2003 EQUITY INCENTIVE PLAN

     THIS AWARD AGREEMENT (the “Agreement”) is made as of this ___day of March 2005 (hereinafter
referred to as the “Date of Grant”) by and between TD Banknorth Inc. (the “Company”) and
___(the “Participant”). Defined terms, unless otherwise defined herein, shall have
the same meaning as set forth in the Plan (as hereinafter defined).

     WHEREAS, the Company has adopted the 2003 Equity Incentive Plan (the “Plan”), which is hereby
incorporated in its entirety by reference herein; and

     WHEREAS, the Company desires to grant to the Participant Restricted Stock Units, as described
in the Plan.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the Company and the Participant agree as follows:

     1. Restricted Stock Units. The Company hereby grants to the Participant an Award of
___Restricted Stock Units (the “Stock Units”), with each Stock Unit representing one
share of common stock, $0.01 par value per share, of the Company (the “Common Stock”), upon the
terms and conditions set forth herein. The number of Stock Units is subject to adjustment as
provided in the Plan. The Stock Units represent an unfunded, unsecured deferred compensation
obligation of the Company.

     2. Vesting of Restricted Stock Units.

     (a) The Stock Units granted by this Agreement shall become 100% vested on the
three-year anniversary of the Date of Grant, except as otherwise provided in the Plan and in
this Agreement.

     (b) Notwithstanding the general rule set forth above, all Stock Units held by the
Participant whose Service to the Company or any Affiliate terminates due to death,
Disability or Retirement (as such terms are defined below ) shall be deemed earned and
become fully vested as of the Participant’s last day of Service with the Company or any
Affiliate. In addition, all Stock Units held by the Participant shall be deemed to be
earned and fully vested upon the occurrence of a Change of Control, as defined below.

     (c) For purposes of this Agreement, “Disability” means that the Participant: (i) is
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or

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can be expected to last for a continuous period of not less than 12 months, or (ii) is, by
reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months
under an accident and health plan covering employees of the Company.

     (d) For purposes of this Agreement, “Retirement” means voluntary termination of
employment with the Company or any Affiliate after the Participant has (A) attained age 62.5
and (B) either (1) has become eligible for a fully vested benefit under the Company’s
Retirement Plan, or (2) if at the time of retirement, the Participant was employed by an
Affiliate that is not an “Employer” as defined in the Retirement Plan, would have become so
eligible if his or her Affiliate employer were an “Employer” as defined in the Retirement
Plan, provided that no Retirement may occur prior to the one-year anniversary of the Date of
Grant.

     (e) For purposes of this Agreement, “Change of Control” means a change in the ownership
of The Toronto-Dominion Bank (“TD”) or the Company, a change in the effective control of TD
or the Company or a change in the ownership of a substantial portion of the assets of TD or
the Company as provided under Section 409A of the Code, as amended from time to time, and
any Internal Revenue Service guidance, including Notice 2005-1, and regulations issued in
connection with Section 409A of the Code, except that (i) any change in the ownership,
effective control or ownership of a substantial portion of the assets of the Company
effected by TD and its affiliates shall be excluded, and (2) any change in the ownership,
effective control or ownership of a substantial portion of the assets of TD shall be
excluded if TD and its affiliates are not a majority shareholder of the Company at the time
of such change.

     (f) If the Participant’s Service shall be terminated for any reason other than death,
Disability or Retirement prior to the three-year anniversary of the Date of Grant, then this
Agreement and the Stock Units covered hereby shall expire immediately upon such termination
and all of the Stock Units shall be forfeited. The Participant shall thereafter have no
rights under this Agreement and no rights to receive the shares of Common Stock underlying
the Stock Units.

     3. Delivery of Common Stock. When the Stock Units become fully vested pursuant to
Section 2 of this Agreement, the Company shall, subject to the implementation of an arrangement
between the Company and the Participant to effect all necessary tax withholding, issue a
certificate to the Participant for the shares of Common Stock underlying the Stock Units. Such
certificate may, however, reflect any applicable stop transfer orders, legends or other
restrictions as the Committee may deem advisable. The Company shall follow all requisite procedures
to deliver such certificates to the Participant; provided, however, that such delivery may be
postponed to enable the Company to comply with any applicable procedures, regulations or listing
requirements of any governmental agency, stock exchange or regulatory agency.

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     4. No Voting of Underlying Shares of Common Stock. Because no stock certificates for
the shares of Common Stock underlying the Stock Units will be issued prior to the vesting of the
Stock Units, the Participant shall have no right to vote the underlying shares of Common Stock
prior to the time that stock certificates for such shares are actually issued.

     5. Terms and Conditions. The terms and conditions included in the Plan are
incorporated herein by reference, and to the extent that any conflict may exist between the terms
and conditions included in the Plan and the terms of this Agreement, the terms and conditions
included in the Plan shall control, except as expressly set forth in Section 15 hereof.

     6. Withholding. The Company’s obligation to deliver shares of Common Stock pursuant
to Section 3 hereof shall be subject to the Participant’s satisfaction of all applicable federal,
state, local and other income and employment tax withholding requirements as required by the Plan.

     7. Transferability. Neither this Agreement, the Stock Units covered by this Agreement
nor the shares of Common Stock underlying the Stock Units may be assigned, alienated, pledged,
attached, sold or otherwise transferred, encumbered or disposed of by the Participant prior to the
time that the Stock Units are earned and the shares of Common Stock are distributed pursuant to the
terms of the Plan and this Agreement, except that prior to such time this Agreement and the Stock
Units may be transferred by will or the laws of descent and distribution or pursuant to a QDRO.

     8. Administration. The authority to manage and control the operation and
administration of this Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of
the Agreement by the Committee and any decision made by it with respect to the Agreement is final
and binding in the absence of action by the Board.

     9. Not an Employment Contract. The grant of the Stock Units covered by this Agreement
does not confer on the Participant any right with respect to continuance of employment or other
Service with the Company or any Affiliate, nor shall it interfere in any way with any right the
Company or any Affiliate would otherwise have to terminate or modify the terms of the Participant’s
employment or other Service at anytime.

     10. Notices. Any written notices provided for in this Agreement or the Plan shall be
in writing and shall be deemed sufficiently given if it is hand delivered, sent by fax or overnight
courier, or sent by postage paid first class mail. Notices sent by mail shall be deemed received
three business days after mailing but in no event later than the date of actual receipt. Notices
shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s
records, or if to the Company, at the Company’s executive office.

     11. Amendment. This Agreement may be amended by written agreement of the Participant
and the Company, without the consent of any other person. In addition, in the event that the
Committee determines, after a review of Section 409A of the Code and all applicable

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Internal Revenue Service guidance, that the Plan or any provision thereof or Award thereunder
should be amended to comply with Section 409A of the Code, the Committee may amend the Plan and
this Agreement to make any changes required to comply with Section 409A of the Code.

     12. Interpretations. Any interpretation of the Committee of the provisions of the Plan
or this Agreement made in good faith shall be final and binding on all parties.

     13. No Personal Liability. The Participant agrees that no member of the Committee or
of the Board shall be personally liable for any actions taken in good faith in connection with the
Plan or this Agreement.

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

     15. Consent to Amended Definition. The Company and the Participant expressly agree
that, notwithstanding any provision in the Plan or in any employment or retention agreement between
the Company and the Participant to the contrary, the term “Change of Control” shall have the
meaning set forth in this Agreement, as required by recently-enacted Section 409A of the Code, and
not as set forth in the Plan or in any employment or retention agreement between the Company and
the Participant. The Participant acknowledges that the definition of Change of Control included in
this Agreement may in certain circumstances be less favorable to the Participant, and the
Participant agrees to such change. Except as expressly noted in this Section 15, this Agreement
shall not by implication or otherwise alter, modify, amend or in any way affect any of the terms of
the Plan or any employment or retention agreement between the Company and the Participant.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant has hereunto set his or her hand, all as of the day first
above written.

	 	 	 
	ATTEST:

	 	TD BANKNORTH INC.
	 
	 	 
	

	 	By:
	

	 	

	Name:

	 	Name:
	

	 	

	Title:

	 	Title:
	

	 	

	 
	 	 
	

	 	PARTICIPANT
	 
	 	 
	 

	 	

	

	 	Name:
	 

	 	

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