Document:

Exhibit 10(b)-15

 

TCF
FINANCIAL CORPORATION

 

LETTER AGREEMENT

 

THIS
LETTER AGREEMENT made and entered into as of December 14, 2009 between
[Name of Executive] (the “Executive”) and TCF Financial Corporation, a Delaware
Corporation (“TCF”).

 

Executive
and TCF have been parties to an Employment Agreement dated January 1, 2008
(the “Employment Agreement”) and/or a Change in Control Agreement dated January 1,
2008 (the “Change in Control Agreement”).

 

In
exchange for good and valuable consideration, Executive and TCF agree to
terminate any Employment Agreement and Change in Control Agreement with the
Executive effective December 14, 2009.

 

In
exchange for terminating Executive’s Employment Agreement and/or Change in
Control Agreement, TCF shall grant to Executive a restricted stock award
effective December 14, 2009.

 

IN
WITNESS WHEREOF, the parties have duly executed this Letter Agreement as of the
day and year first written above.

 

	
  ATTEST:

  	
   

  	
  TCF
  FINANCIAL CORPORATION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Vice
  Chairman and Secretary

  	
   

  	
   

  	
  William A. Cooper

  	
   

  	
   

  
	
   

  	
   

  	
  Its:
  

  	
  Chairman
  and Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  	
   

  
						

 

1Exhibit 10(b)-16

 

TCF FINANCIAL INCENTIVE STOCK PROGRAM

 

RESTRICTED STOCK AGREEMENT

 

RS
NO.           
 (Non-deferred) (Performance-based)

 

Shares
of Restricted Stock are hereby awarded effective December 14, 2009 by TCF
Financial Corporation (“TCF Financial”) to                           
(the “Grantee”), as a matter of separate
inducement in connection with Grantee’s agreement to terminate the Employment
Agreement and/or Change in Control Agreement (as defined in that certain Letter
Agreement dated as of December 14, 2009, between Grantee and TCF
Financial), subject to the terms, conditions and restrictions set forth
in this Restricted Stock Agreement (the “Agreement”):

 

1.                                       Share Award.  TCF Financial hereby awards the Grantee           
shares (the “Shares”) of Common Stock, par value $.01 per share (“Common Stock”)
of TCF Financial pursuant to the TCF Financial Incentive Stock Program (the “Program”),
upon the terms, conditions and restrictions therein and hereinafter set
forth.  A copy of the Program as
currently in effect is incorporated herein by reference and is attached hereto
as Exhibit A.

 

2.                                       Restrictions on
Transfer and Restricted Period.

 

(a)                                  During the
period (the “Restricted Period”) hereinafter described, the Shares may not be
sold, assigned, transferred, pledged, or otherwise encumbered by the Grantee.

 

(b)                                 The Shares
granted pursuant to paragraph 1. are subject to the restrictions in paragraph
2.(a) during the Restricted Period commencing on the date of this
Agreement (the “Commencement Date”) and (subject to the forfeiture provisions
herein) continuing through the date of vesting applicable to that portion of
the Shares specified in clauses (i), (ii), and (iii) below:

 

(i)                                     One-third of
the Shares will vest on April 1, 2011 if TCF Financial’s return on equity
(“ROE”) for fiscal year 2010 exceeds the mean of TCF Financial’s peer group of
institutions (as such peer group applicable to fiscal year 2010 is disclosed in
the proxy statement) and, if achieved, the restrictions shall lapse as to
one-third of the Shares on the vesting date as finally determined by the
Committee referred to in section 2. of the Program (the “Committee”).

 

(ii)                                  One-third of
the Shares will vest on April 1, 2012 if TCF Financial’s ROE for fiscal
year 2011 exceeds the mean of TCF Financial’s peer group of institutions (as
such peer group applicable to fiscal year 2011 is disclosed in the proxy
statement) and, if achieved, the restrictions shall lapse as to one-third of
the Shares on the vesting date as finally determined by the Committee.

 

(iii)                               One-third of
the Shares will vest on April 1, 2013 if TCF Financial’s

 

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ROE
for fiscal year 2012 exceeds the mean of TCF Financial’s peer group of
institutions (as such peer group applicable to fiscal year 2012 is disclosed in
the proxy statement) and, if achieved, the restrictions shall lapse as to
one-third of the Shares on the vesting date as finally determined by the
Committee.

 

Notwithstanding
the foregoing, as to any portion of the Shares for which the restrictions have
not lapsed as a result of the failure to achieve the ROE goal applicable
thereto, all rights of the Grantee to such portion of the Shares shall
terminate and be forfeited effective as of April 2nd of the year in which such Shares would
otherwise have vested and be returned to TCF Financial on or about that date.

 

3.                                       Vesting.

 

(a)                                  Shares will
vest in accordance with the schedule set forth in paragraph 2.(b), and no
longer be subject to the restrictions imposed by paragraph 2.(a), at the
expiration of the Restricted Period with respect thereto.  The Committee shall not have any authority to
accelerate the time at which any or all of the restrictions in paragraph 2.(a) shall
expire with respect to any Shares, or to remove any or all such
restrictions.  However, the Committee
shall have all the authority provided in the Program with respect to
performance-based compensation, including the authority to reduce or delay the
Shares vesting under this Agreement or the determination of whether TCF’s ROE
exceeded the mean of its peer group of institutions for any year, or to
otherwise reduce the compensation provided under this Agreement in any other
manner which the Committee considers appropriate in its discretion.

 

(b)                                 Termination of
Service for Reasons other than Disability, Retirement or Death.  In the event of the Grantee’s termination of
employment for any reason other than disability, retirement or death during the
Restricted Period, all unvested Shares at the time of such event shall be
forfeited and returned to TCF Financial.

 

(c)                                  Termination of
Service by Reason of Retirement, Death or Disability.  In the event of Grantee’s retirement (as
determined by the Committee), death or  disability
(the Grantee has been receiving benefits under TCF’s long-term disability plan
for at least three months), or death during the Restricted Period:  (1) a pro-rata percentage of the Shares
subject to vesting for the fiscal year in which the event of retirement, death
or disability occurs, will vest on the same date that such portion of the
Shares otherwise would vest under subparagraphs 2.(b)(i), (ii), or (iii), as
applicable, had Grantee remained employed through that date, and (2) all
Shares in excess of that percentage and any portion of the Shares subject to
vesting in a subsequent period shall be forfeited and canceled upon such
retirement,  death or disability.  The pro-rata percentage shall be determined
based on the number of full calendar months from January 1 of the
applicable fiscal year to the date of retirement, death or disability, divided
by 12. 
For purposes of this paragraph 3.(c), the date of Grantee’s retirement
shall be determined by the Committee and the date Grantee became disabled shall
be the date on which the Grantee has received disability benefits under TCF’s
long-term disability plan for three months.

 

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4.                                       Certificates
for Shares.  TCF
Financial may issue one or more certificates in respect of the Shares in the
name of the Grantee, and shall hold such certificate(s) on deposit for the
account of the Grantee until the expiration of the Restricted Period with
respect to the Shares represented thereby. 
Certificate(s) for Shares subject to a Restricted Period shall bear
the following legend:

 

“The
transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) contained in the
TCF Financial Incentive Stock Program (the “Program”) and an agreement entered
into between the registered owner and TCF Financial Corporation.  Copies of such Program and agreement are on
file in the offices of the Secretary of TCF Financial Corporation, 200 Lake
Street East, Wayzata, MN 55391.”

 

The
Grantee further agrees that, if certificates are issued, simultaneously with
the execution of this Agreement one or more stock powers shall be executed,
endorsed in blank and promptly delivered to TCF Financial.

 

If
certificates are not issued, TCF Financial shall direct the transfer agent to
issue and hold the Shares during the Restricted Period in an account where
their transferability is subject to the restrictions set forth in paragraph 2.(a) of
this Agreement.

 

5.                                       Grantee’s
Rights.  Except as otherwise provided
herein, Grantee, as owner of the Shares, shall have all rights of a
stockholder, including the right to vote the Shares.  The Grantee hereby irrevocably and
unconditionally assigns to TCF Financial any and all cash and non-cash dividends
and other distributions paid with respect to unvested Shares.

 

6.                                       Expiration of
Restricted Period.  Upon the
expiration of the Restricted Period with respect to the Shares, TCF Financial
shall redeliver or deliver to the Grantee (or, if the Grantee is deceased, to
his legal representative, beneficiary or heir) the certificate(s) in
respect of such Shares, without the restrictive legend provided for in
paragraph 4. above or re-register the shares in an account with the transfer
agent which is not subject to the restrictions set forth in paragraph 2.(a) of
this Agreement.  The Shares as to which
the Restricted Period shall have lapsed or expired shall be free of the
restrictions referred to in paragraph 2.(a) above and any such
certificates shall not bear the legend provided for in paragraph 4. above.

 

7.                                       Adjustments for
Changes in Capitalization of TCF Financial.  In the event of any change in the outstanding
Common Stock of TCF Financial by reason of any reorganization,
recapitalization, stock split, combination or exchange of shares, merger,
consolidation or any change in the corporate structure of TCF Financial or in
the shares of Common Stock, or in the event of any issuance of preferred stock
or other change in the capital structure of TCF Financial which the Committee
deems significant for purposes of this Agreement, the number and class of
Shares covered by this Agreement as well as the ROE, vesting and forfeiture
provisions in paragraphs 2. and 3., shall be appropriately adjusted by the
Committee, whose determination of the appropriate adjustment, or whose
determination that there shall be no adjustment, shall be conclusive.  Any Shares of Common Stock or other
securities received, as a result of the foregoing, by the Grantee subject to
the restrictions contained in paragraph 2.(a) above also shall be subject
to such restrictions and the certificate or other instruments representing or 

 

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evidencing
such Shares or securities shall be legended and deposited with TCF Financial or
otherwise restricted by the transfer agent in the manner provided in paragraph
4. above.

 

8.                                       Effect of
Merger.  In the case of any merger,
consolidation, or combination of TCF Financial with or into another corporation
or other business organization (other than a merger, consolidation, or
combination in which TCF Financial is the continuing entity and which does not
result in the outstanding shares of Common Stock being converted into or
exchanged for different securities, cash or other property, or any combination thereof),
the Committee may authorize the issuance or assumption of Benefits (as defined
in the Program) as it may deem appropriate.

 

9.                                       Effect of
Change in Control.  Each of the
events specified in the following clauses (a) through (c) of this
paragraph 9. shall be deemed a “change in control” of TCF Financial (herein
referred to as the “Company”), provided, however, that this paragraph shall not
take effect until January 1, 2010:

 

(a)                                  Any “person”,
as defined in sections 13(d) and 14(d) of the Securities Exchange Act
of 1934 (the “Exchange Act”) is or becomes the “beneficial owner” as defined in
Rule 13d-3 under the Exchange Act, directly or indirectly, of securities
of the Company representing fifty percent (50%) or more of the combined voting
power of the Company’s then outstanding securities (for purposes of this clause
(a), the term “beneficial owner” does not include any employee benefit plan
maintained by the Company that invests in the Company’s voting securities); or

 

(b)                                 During any
period of two (2) consecutive years there shall cease to be a majority of
the Company’s Board of Directors (the “Board”) comprised as follows:
individuals who at the beginning of such period constitute the Board of new
directors whose nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved; or

 

(c)                                  The stockholders
of the Company approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least 50% of the combined
voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders
of the Company approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or substantially
all the Company’s assets; provided, however, that no change in control will be
deemed to have occurred until such merger, consolidation, sale or disposition
of assets, or liquidation is subsequently consummated.

 

Subject
to the six month holding requirement, if any, of Rule 16b-3 of the
Securities and Exchange Commission but notwithstanding any other provision in
this Agreement or the Program (including, but not limited to, paragraphs 2.(b) and
4. of this Agreement) in the event of a change in control of TCF Financial, all
terms and conditions of this Agreement shall be 

 

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deemed
satisfied, all the Shares awarded hereunder shall vest as of the date of such
change in control and shall thereafter be administered as provided in paragraph
6. of this Agreement.

 

10.                                 Delivery and
Registration of Shares of Common Stock.  TCF Financial’s obligation to deliver Shares
of Common Stock hereunder shall, if the Committee so requests, be conditioned
upon the receipt of a representation as to the investment intention of the
Grantee or any other person to whom such Shares are to be delivered, in such
form as the Committee shall determine to be necessary or advisable to comply
with the provisions of the Securities Act of 1933, as amended, or any other
federal, state, or local securities law or regulation.  It may be provided that any representation
requirement shall become inoperative upon a registration of such Shares or
other action eliminating the necessity of such representation under such
Securities Act or other securities law or regulation.  TCF Financial shall not be required to
deliver any Shares under the Program prior to (i) the admission of such
Shares to listing on any stock exchange on which the Common Stock may be
listed, and (ii) the completion of such registration or other qualification
of such Shares under state or federal law, rule, or regulation, as the
Committee shall determine to be necessary or advisable.

 

11.                                 Program and
Program Interpretations as Controlling; Performance-Based Status.   The Shares hereby awarded and the terms and
conditions herein set forth are subject in all respects to the terms and
conditions of the Program, which are controlling.  All determinations and interpretations of the
Committee shall be binding and conclusive upon the Grantee or Grantee’s legal
representatives with regard to any question arising hereunder or under the
Program.  The Shares awarded hereunder
are intended to qualify as performance-based compensation under section 162(m) of
the Internal Revenue Code and under the Program, and the terms of this
Agreement shall be construed in accordance with that intent.

 

12.                                 Grantee Service.  Nothing in this Agreement shall limit the
right of TCF Financial or any of its affiliates to terminate the Grantee’s
service as a director, officer, or employee, or otherwise impose upon TCF
Financial or any of its affiliates any obligation to employ or accept the
services of the Grantee.

 

13.                                 Grantee
Acceptance.  The Grantee
shall signify acceptance of the terms and conditions of this Agreement by
signing in the space provided below and signing the stock powers, as required
under paragraph 4. above, and returning a signed copy hereof and of the stock
powers to TCF Financial.

 

14.                                 Section 409A
of the Internal Revenue Code.  The arrangements described in this Agreement are
intended to comply with Section 409A of the Internal Revenue Code to the
extent (if any) such arrangements are subject to that law.

 

15.                                 Non-Solicitation
Covenant.

 

(a)                                       While actively
employed by TCF Financial or subsidiaries of TCF Financial and,  in the event of termination of employment
other than (i) a termination by TCF Financial or subsidiaries of TCF
Financial without Cause, or (ii) a termination by the Grantee for Good
Reason (as defined in subparagraph (b)), for a period of one year after the Grantee’s
termination of employment, the Grantee agrees that, except

 

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with
the prior written approval of the Board of the Directors of TCF Financial, the
Grantee will not offer to hire, entice away, or in any manner attempt to
persuade any officer, employee, or agent of TCF Financial or  subsidiaries of TCF Financial to discontinue
his or her relationship with TCF Financial or any of its subsidiaries nor will
the Grantee directly or indirectly solicit, divert, take away or attempt to
solicit any business of TCF Financial or subsidiaries of TCF Financial as to
which the Grantee has acquired any knowledge during the term of the Grantee’s
employment with TCF Financial or subsidiaries of TCF Financial.

 

(b)                                      The Grantee shall have the
right to terminate employment with TCF Financial or subsidiaries of TCF
Financial for “Good Reason” in the event there is: (i) any material
diminution in the scope of the Grantee’s authority and responsibility
(provided, however, in the event of any illness or injury which disables the
Grantee from performing the Grantee’s duties, TCF Financial or subsidiaries of
TCF Financial may reassign the Grantee’s duties to one or more other employees
until the Grantee is able to perform such duties); (ii) a material
diminution in the Grantee’s base compensation (salary, bonus opportunity,
benefits or perquisites as in effect before the Change in Control, if
applicable); (iii) a material diminution in the authority, duties,
responsibilities of the supervisor to whom the Grantee is required to report; (iv) a
material diminution in the budget over which the Grantee  retains authority; or (v) a material
change in geographic location at which the Grantee must perform the services.

 

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IN
WITNESS WHEREOF, the parties hereto have caused this RESTRICTED STOCK AGREEMENT
to be executed as of the date first above written.

 

	
   

  	
   

  	
  TCF
  FINANCIAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACCEPTED:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Signature]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Street
  Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City,
  State and Zip Code)

  

 

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