Document:

exv10w2

Exhibit 10.2

$300,000,000 INCREMENTAL REVOLVING CREDIT FACILITY

AMENDMENT NO. 4 AND ASSUMPTION AGREEMENT

Dated as of November 5, 2009 among

TD AMERITRADE HOLDING CORPORATION

as Borrower

and

CERTAIN SUBSIDIARIES THEREOF

as Guarantors

THE LENDERS, EACH ISSUING BANK AND

SWING LINE BANK NAMED HEREIN

as Lenders, Issuing Bank and Swing Line Bank

and

THE BANK OF NEW YORK MELLON

as Administrative Agent and as Syndications Agent

and

BANC OF AMERICA SECURITIES LLC

CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES INC.

WELLS FARGO BANK, N.A.

as Co-Lead Arrangers

 

 

AMENDMENT NO. 4 AND ASSUMPTION AGREEMENT

Dated as of November 5, 2009

          AMENDMENT NO. 4 AND ASSUMPTION AGREEMENT (this “Agreement”) among TD AMERITRADE
Holding Corporation, a Delaware corporation (the “Borrower”), the Guarantors party hereto,
the Lenders party hereto and The Bank of New York Mellon, as the administrative agent (in such
capacity, the “Administrative Agent”) for the Lenders, and as the Swing Line Bank and an
Issuing Bank.

          PRELIMINARY STATEMENTS:

          (1) The Borrower, the Guarantors, the Administrative Agent and the other agents and lenders
named therein have entered into a Credit Agreement dated as of January 23, 2006 (as heretofore
amended, supplemented or otherwise modified, the “Credit Agreement”). Capitalized terms
not otherwise defined in this Agreement have the same meanings as specified in the Credit
Agreement.

          (2) The Borrower, the Increasing Lenders (as hereinafter defined), each Issuing Bank, the
Swing Line Bank and the Administrative Agent have agreed to enter into this Agreement in order to
(a) effectuate an Incremental Revolving Credit Facility (the “Facility”) in accordance with
Section 2.17 of the Credit Agreement and (b) subsequently, upon the Restatement Effective Date (as
hereinafter defined), amend and restate the Credit Agreement in full to read as set forth in
Exhibit A hereto.

          SECTION 1. Commitment Increase. Pursuant to Section 2.17 of the Credit Agreement:

          (a) Subject to the satisfaction of the conditions precedent set forth in Section 4(a), on the
Incremental Revolver Date (as hereinafter defined), each Lender listed on the signature pages
hereof (each, an “Increasing Lender”) shall (i) if such Increasing Lender is a Lender under
the Credit Agreement before giving effect to this Agreement, increase its existing Revolving Credit
Commitment to the amount set forth on such Lender’s signature page hereto and (ii) if such
Increasing Lender is not a Lender under the Credit Agreement before giving effect to this
Agreement (such Increasing Lender, an “Assuming Lender”), hereby make a Revolving Credit
Commitment under the Credit Agreement as of the date hereof equal to the amount set forth on such
Assuming Lender’s signature page hereto.

          (b) As of the Incremental Revolver Date and immediately after giving effect to the
effectiveness of the Facility, the aggregate Revolving Credit Commitments shall be $300,000,000.

          SECTION 2. Amendments to the Credit Agreement. Pursuant to Section 2.17 of the Credit
Agreement, subject to the satisfaction of the conditions precedent set forth in Section 4(a),
effective as of the Incremental Revolver Date:

          (a) Section 1.01 of the Credit Agreement is hereby amended by adding the following new
definitions therein in appropriate alphabetical order:

     “Applicable Percentage” means, as of the Incremental Revolver Date, 0.375% per annum,
and as of any other date, a percentage per annum determined by reference to the Public Debt
Ratings in effect on such date as set forth below:

 

 

	 	 	 	 	 
	Public Debt Ratings	 	 
	S&P/Moody’s	 	Applicable Percentage
	Level I

A/A2 or above
	 	 	0.225	%
	Level II

A-/A3 or above but below A/A2
	 	 	0.300	%
	Level III

BBB+/Baa1 or above but below A-/A3
	 	 	0.375	%
	Level IV

BBB/Baa2 or above but below BBB+/Baa1
	 	 	0.500	%
	Level V

BBB-/Baa3 or above but below BBB/Baa2
	 	 	0.625	%
	Level VI

Below BBB-/Baa3 or unrated
	 	 	0.750	%

     “Incremental Revolver Agreement” means the Amendment No. 4 and Assumption Agreement
dated as of November 5, 2009 among the Borrower, the Guarantors party hereto, the banks,
financial institutions and other institutional lenders parties thereto, the Swing Line Bank,
each Issuing Bank and the Administrative Agent, as amended.

     “Incremental Revolver Date” has the meaning specified in the Incremental Revolver
Agreement.

     “Incremental Revolver Letters of Credit” means the Letters of Credit, if any,
outstanding as of the Incremental Revolver Date.

     “Public Debt Rating” means, as of any date, any of the Moody’s Rating or S&P Rating.
For purposes of the foregoing, (a) if only one of S&P and Moody’s shall have in effect a
Public Debt Rating, the Applicable Margin and the Applicable Percentage shall be determined
by reference to the available rating; (b) if neither S&P nor Moody’s shall have in effect a
Public Debt Rating, the Applicable Margin and the Applicable Percentage will be set in
accordance with Level VI under the definition of “Applicable Margin” or “Applicable
Percentage”, as the case may be; (c) if the ratings established by S&P and Moody’s shall
fall within different levels, and if (i) such ratings shall not be apart by more than one
level, the Applicable Margin and the Applicable Percentage shall be based upon the higher of
such ratings or (ii) otherwise, the Applicable Margin and the Applicable Percentage shall be
based upon the level that is immediately higher than the lower of such ratings; (d) if any
rating established by S&P or Moody’s shall be changed, such change shall be effective as of
the date on which such change is first announced publicly by the rating agency making such
change; and (e) if S&P or Moody’s shall change the basis on which ratings are established,
each reference to the Public Debt Rating announced by S&P or Moody’s, as the case may be,
shall refer to the then equivalent rating by S&P or Moody’s, as the case may be.

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          (b) The definition of “Applicable Margin” in Section 1.01 of the Credit Agreement is hereby
amended in full to read as follows:

     “Applicable Margin” means (a) in respect of the Term A Facility, a percentage per annum
determined by reference to the Leverage Ratio as set forth below:

	 	 	 	 	 	 	 	 	 
	Leverage Ratio	 	Base Rate Advances	 	Eurodollar Rate Advances
	Level I

1.75 : 1.0 or greater
	 	 	0.50	%	 	 	1.50	%
	Level II

1.0 : 1.0 or greater,
but less than 1.75 : 1.0
	 	 	0.25	%	 	 	1.25	%
	Level III

less than 1.0 : 1.0
	 	 	0.00	%	 	 	1.00	%

, (b) in respect of the Revolving Credit Facility, (i) on the Incremental Revolver Date,
1.50% per annum for Base Rate Advances and 2.50% for Eurodollar Rate Advances and (ii)
thereafter, a percentage per annum determined by reference to the Public Debt Ratings in
effect on such date as set forth below:

	 	 	 	 	 	 	 	 	 
	Public Debt Ratings	 	 	 	 
	S&P/Moody’s	 	Base Rate Advances	 	Eurodollar Rate Advances
	Level I

A/A2 or above
	 	 	1.00	%	 	 	2.00	%
	Level II

A-/A3 or above but below
A/A2
	 	 	1.25	%	 	 	2.25	%
	Level III

BBB+/Baa1 or above but
below A-/A3
	 	 	1.50	%	 	 	2.50	%
	Level IV

BBB/Baa2 or above but
below BBB+/Baa1
	 	 	2.00	%	 	 	3.00	%
	Level V

BBB-/Baa3 or above but
below BBB/Baa2
	 	 	2.50	%	 	 	3.50	%
	Level VI

Below BBB-/Baa3 or unrated
	 	 	3.00	%	 	 	4.00	%

, (c) in respect of the Swing Line Facility, (i) the percentage per annum applicable to Base
Rate Advances in respect of the Revolving Credit Facility or (ii) such other rate as shall
be agreed upon between the Borrower and the Swing Line Bank and (d) in respect of the Term B
Facility, 0.50% per annum for Base Rate Advances and 1.50% per annum for Eurodollar Rate
Advances.

For any time after the date of delivery of quarterly financials for the fiscal quarter
ending June 30, 2006 pursuant to Section 5.03(c), the Applicable Margin for each Base Rate
Advance in respect of the Term A Facility shall be determined by reference to the Leverage
Ratio in effect on the last day of the most recently completed fiscal quarter of the
Borrower for which financial statements

3

 

have been delivered pursuant to Section 5.03(b) or
(c), as applicable, and the Applicable Margin for each Eurodollar Rate Advance in respect of
the Term A Facility shall be determined by reference to the Leverage Ratio in effect on the
last day of the most recently completed fiscal quarter of the Borrower for which financial
statements have been delivered pursuant to Section 5.03(b) or (c), as applicable; provided, however, that (A) no change in the Applicable
Margin (in the case of the Term A Facility) shall be effective until three Business Days
after the date on which the Administrative Agent receives the financial statements required
to be delivered pursuant to Section 5.03(b) or (c), as the case may be, and a certificate of
the Chief Financial Officer of the Borrower demonstrating such Leverage Ratio and (B) the
Applicable Margin shall be at Level I (in the case of the Term A Facility) for so long as
the Borrower has not submitted to the Administrative Agent the information described in
clause (A) of this proviso as and when required under Section 5.03(b) or (c), as the case
may be.

          (c) The definition of “Base Rate” in Section 1.01 of the Credit Agreement is hereby amended in
full to read as follows:

     “Base Rate” means, (a) in respect of the Term A Facility and the Term B Facility, a
fluctuating interest rate per annum in effect from time to time, which rate per annum shall
at all times be equal to the higher of:

     (i) the rate of interest announced publicly by the Administrative Agent in
New York, New York, from time to time, as the Administrative Agent’s prime rate; and

     (ii) 1/2 of 1% per annum above the Federal Funds Rate; and

     (b) in respect of the Revolving Credit Facility, the Letter of Credit Facility and the
Swing Line Facility, a fluctuating interest rate per annum in effect from time to time,
which rate per annum shall on any day be equal to the highest of:

     (i) the rate of interest announced publicly by the Administrative Agent in
New York, New York, from time to time, as the Administrative Agent’s prime rate;

     (ii) 1/2 of 1% per annum above the Federal Funds Rate; and

     (iii) 1% plus the Eurodollar Rate for a one-month Interest Period commencing on
such day that would apply to the applicable Base Rate Advance if such Base Rate
Advance were a Eurodollar Rate Advance.

          (d) The definition of “Lenders” in Section 1.01 of the Credit Agreement is hereby amended in
full to read as follows:

     “Lenders” means the Initial Lenders and each Person that shall become a Lender
hereunder pursuant to Section 2.17 or 9.07 or the Incremental Revolver Agreement for so long
as such Initial Lender or Person, as the case may be, shall be a party to this Agreement.

          (e) The definition of “Letter of Credit Facility” in Section 1.01 of the Credit Agreement is
hereby amended in full to read as follows:

     “Letter of Credit Facility” means, at any time, an amount equal to the aggregate amount
of the Issuing Banks’ Letter of Credit Commitments at such time as such amount may be
reduced at or prior to such time pursuant to Section 2.05. After giving effect to the
Incremental Revolver

4

 

Agreement, the Letter of Credit Facility as of the Incremental Revolver
Date shall be $75,000,000.

          (f) The definition of “Revolving Credit Commitment” in Section 1.01 of the Credit Agreement is
hereby amended in full to read as follows:

     “Revolving Credit Commitment” means, (a) with respect to any Revolving Credit Lender at
any time prior to giving effect to the Incremental Revolving Credit Facility effectuated by
the Incremental Revolver Agreement, the amount set forth opposite such Lender’s name on
Schedule I hereto under the caption “Revolving Credit Commitment” or, if such Lender has
entered into one or more Assignment and Acceptances, set forth for such Lender in the
Register maintained by the Administrative Agent pursuant to Section 9.07(d) as such Lender’s
“Revolving Credit Commitment,” as such amount may be reduced at or prior to such time
pursuant to Section 2.05 and (b) with respect to any Revolving Credit Lender at any time
after giving effect to the Incremental Revolving Credit Facility effectuated by the
Incremental Revolver Agreement, the amount set forth on such Lender’s signature page to the
Incremental Revolver Agreement or, if such Lender has entered into one or more Assignment
and Acceptances, set forth for such Lender in the Register maintained by the Administrative
Agent pursuant to Section 9.07(d) as such Lender’s “Revolving Credit Commitment,” as such
amount may be reduced at or prior to such time pursuant to Section 2.05.

          (g) The definition of “Swing Line Facility” in Section 1.01 of the Credit Agreement is hereby
amended in full to read as follows:

     “Swing Line Facility” means, at any time, an amount equal to the amount of the Swing
Line Bank’s Swing Line Commitment at such time, as such amount may be reduced at or prior to
such time pursuant to Section 2.05. After giving effect to the Incremental Revolver
Agreement, the Swing Line Facility as of the Incremental Revolver Date shall be $50,000,000.

          (h) The definition of “Termination Date” in Section 1.01 of the Credit Agreement is hereby
amended by replacing “December 31, 2010” appearing in clause (b)(i) thereof with “December 31,
2012”.

          (i) Section 2.01(e) is hereby amended by adding immediately after the end of the first
sentence therein the following new sentence:

“Each Issuing Bank, the Revolving Credit Lenders and the Borrower agree that effective as of
the Incremental Revolver Date, the Incremental Revolver Letters of Credit shall be deemed to
have been issued under the Incremental Revolving Credit Facility effectuated by the
Incremental Revolver Agreement and the Revolving Credit Lenders under such Incremental
Revolving Credit Facility shall be deemed to have assumed the rights and obligations under
the Loan Documents in respect of the Incremental Revolver Letters of Credit of the Persons
that were Revolving Credit Lenders before giving effect to the Incremental Revolving Credit
Facility.”

          (j) Section 2.07(a)(ii) of the Credit Agreement is hereby amended in full to read as follows:

     “(ii) Eurodollar Rate Advances. During such periods as such Advance is a
Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for
such Advance to the sum of (A) the Eurodollar Rate for such Interest Period for such Advance
plus (B) (1) in the case of a Term A Advance, the Applicable Margin in effect on the last
day (subject to the last

5

 

proviso to the definition “Applicable Margin”) of the most recently
completed fiscal quarter of the Borrower for which financial statements have been delivered
pursuant to Section 5.03(b) or (c), as applicable, or (2) in the case of a Term B Advance or
a Revolving Credit Advance, the Applicable Margin in effect from time to time, in each case payable in arrears (x) on the
last Business Day of such Interest Period, (y) if such Interest Period has a duration of
more than three months, on each day that occurs during such Interest Period every three
months from the first day of such Interest Period and (z) on the date such Eurodollar Rate
Advance shall be Converted or paid in full.”

          (k) Section 2.08(a) of the Credit Agreement is hereby amended in full to read as follows:

“(a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the
account of the Lenders a commitment fee, (i) from the date hereof in the case of each
Initial Lender and from the effective date specified in the Assignment and Acceptance
pursuant to which it became a Lender in the case of each other Lender until the Incremental
Revolver Date, payable in arrears quarterly on the last Business Day of each fiscal quarter
of the Borrower ending in March, June, September and December, commencing on March 31, 2006,
and on the Incremental Revolver Date, at the rate of 0.375% per annum on the average daily
Unused Revolving Credit Commitment of such Lender during such quarter and (ii) from the
Incremental Revolver Date in the case of each Lender party to the Incremental Revolver
Agreement and from the effective date specified in the Assignment and Acceptance pursuant to
which it became a Lender thereafter in the case of each other Lender until the Termination
Date in respect of the Revolving Credit Facility, payable in arrears quarterly on the last
Business Day of each fiscal quarter of the Borrower ending in March, June, September and
December, commencing on December 31, 2009, and on the Termination Date, at the Applicable
Percentage in effect from time to time on the average daily Unused Revolving Credit
Commitment of such Lender during such quarter; provided, however, that no commitment fee
shall accrue on any of the Commitments of a Defaulting Lender so long as such Lender shall
be a Defaulting Lender.”

          SECTION 3. Amendment and Restatement of the Credit Agreement; Release of Collateral.
Subject to the satisfaction of the conditions precedent set forth in Section 4(b), effective as of
the Restatement Effective Date:

          (a) The Credit Agreement shall be amended and restated in its entirety to read as set forth in
Exhibit A hereto (as so amended and restated, the “Amended and Restated Credit Agreement”)
and all signature pages to the Amended and Restated Credit Agreement held by the Administrative
Agent pursuant to Section 4(a)(ii) shall be released, in each case, without any further action of
any party hereto; provided, that the Administrative Agent is hereby authorized to, and shall, upon
the occurrence of the Restatement Effective Date, complete the Amended and Restated Credit
Agreement by inserting the Restatement Effective Date as the date thereof and attaching all
exhibits and schedules thereto (such completion to be evidenced by distribution of such completed
Amended and Restated Credit Agreement to the Borrower via electronic mail and to the Lenders via
the Platform on the Restatement Effective Date in accordance with Section 9.02 of the Amended and
Restated Credit Agreement).

          (b) All of the Collateral shall be released from the assignment and security interest granted
under the Collateral Documents, each Guarantor that is not a Significant Subsidiary as defined in
Exhibit A hereto shall be released from the Guaranty (provided that for the avoidance of doubt, no
Broker-Dealer Subsidiary or CFC or any direct or indirect Subsidiary of a Broker-Dealer Subsidiary
or CFC shall be a Guarantor under and as defined in the Amended and Restated Credit Agreement), and
the Administrative Agent and the Collateral Agent shall (and are authorized by the Increasing
Lenders to), at the Borrower’s expense, execute and deliver to the Loan Parties such documents as the Loan Parties may

6

 

reasonably request to evidence such release, together with all original stock
certificates or other collateral held by the Administrative Agent and/or the Collateral Agent that
are subject to such release.

          SECTION 4. Conditions to Effectiveness. (a) Sections 1 and 2 of this Agreement shall
become effective as of the date (the “Incremental Revolver Date”) on which the following
items have been received by the Administrative Agent:

          (i) (A) Counterparts of this Agreement executed by each Loan Party, the Administrative Agent,
the Collateral Agent, each Issuing Bank, the Swing Line Bank and the Increasing Lenders or, as to
any of the Increasing Lenders, advice satisfactory to the Administrative Agent that such Lender has
executed this Agreement and (B) any Revolving Credit Note payable to the order of any Revolving
Credit Lender party hereto requesting the same pursuant to the terms of Section 2.16 of the Credit
Agreement;

          (ii) Counterparts to the Amended and Restated Credit Agreement executed by each party thereto
(such counterparts to be held in escrow pending release in accordance with Section 3(a));

          (iii) A certificate signed by a duly authorized officer of the Borrower, dated the Incremental
Revolver Date, stating that:

     (A) The representations and warranties contained in each of the Loan Documents
and this Agreement are correct in all material respects on and as of the Incremental
Revolver Date, before and after giving effect to the Facility, as though made on and
as of such date, other than any such representations or warranties that, by their
terms, refer to a specific date other than the Incremental Revolver Date, in which
case as of such specific date;

     (B) No Default exists both before and after giving effect to the Facility; and

     (C) As of the last day of the fiscal quarter of the Borrower immediately
preceding the Incremental Revolver Date for which financial statements of the
Borrower are required to have been delivered pursuant to the Credit Agreement, after
giving pro forma effect to the Facility and other customary and appropriate pro
forma adjustment events, including any acquisitions or dispositions or repayment of
Debt after the beginning of such fiscal quarter but prior to or simultaneous with
the effectiveness of the Facility, the Borrower is in pro forma compliance with all
financial covenants set forth in Section 5.04 of the Credit Agreement;

          (iv) (A) Opinions of counsel for the Loan Parties reasonably satisfactory to the
Administrative Agent, addressing among other things the due execution and delivery of this
Agreement and the Notes (if any) delivered in connection herewith and the due authorization and
enforceability of the Credit Agreement, the Notes (if any) delivered in connection herewith, the
Security Agreement, the Intellectual Property Security Agreement and the Guaranty, each as
theretofore supplemented or otherwise amended and after giving effect to this Agreement, the
absence of any violation of any applicable law, constitutive document or material contract binding
upon the Borrower, the continuing validity of the security interests in the Collateral created
pursuant to the Security Agreement and the perfection of such security interests by the filing of
financing statements under the Uniform Commercial Code or (in the case of stock certificates) by
possession; (B) a certificate as to the good standing or status of each Loan Party as of a recent
date, from each applicable Secretary of State or other Governmental Authority; (C) a certificate of
the Secretary or Assistant Secretary of each Loan Party dated the Incremental Revolver Date and
certifying (1) as to a true and correct copy of the certificate or articles of incorporation (or
similar constitutive documents) of such Loan Party, the by-laws (or similar constitutive

7

 

documents), and each amendment thereto, and that such documents so certified are in effect on the
Incremental Revolver Date and at all times since a date prior to the date of the resolutions
described in clause (2) below, (2) that attached thereto is a true and complete copy of resolutions
duly adopted by the board of directors (or the equivalent governing body) of such Loan Party authorizing the
authorization, execution and delivery of this Agreement, the performance of the Loan Documents,
after giving effect to this Agreement and, in the case of the Borrower, the borrowings thereunder,
and that such resolutions have not been modified, rescinded or amended and are in full force and
effect, and (3) as to the incumbency and specimen signature of each officer executing any Loan
Document or any other document delivered in connection herewith on behalf of such Loan Party; and
(D) a certificate of another officer as to the incumbency and specimen signature of the Secretary
or Assistant Secretary executing the certificate pursuant to clause (C) above;

          (v) Evidence that on the Incremental Revolver Date, immediately prior to or concurrently with
the effectiveness of this Agreement, the aggregate Revolving Credit Commitments in existence
immediately prior to the effectiveness of this Agreement shall have been reduced to zero and all
Revolving Credit Advances, Swing Line Advances and Letter of Credit Advances outstanding
immediately prior to the effectiveness of this Agreement shall have been paid in full; and

          (vi) Evidence that the Borrower shall have paid all accrued fees of the Administrative Agent
and the Increasing Lenders due and payable as shall have been mutually agreed and all accrued
reasonable, out of pocket expenses of the Administrative Agent (including the accrued reasonable
fees and expenses of Shearman & Sterling LLP) to the extent invoices shall have been presented to
the Borrower two Business Days prior to the Incremental Revolver Date.

          (b) Section 3 of this Agreement shall become effective as of the date (the “Restatement
Effective Date”) on which the Administrative Agent shall have received evidence that the
“Effective Date” under and as defined in Exhibit A hereto shall occur on such date, which in any
event shall be no later than January 31, 2010 (the “Restatement Termination Date”), and all
conditions precedent set forth in Section 3.01 therein, including, without limitation, the
prepayment in full of all of the Obligations (other than in respect of unasserted contingent claims
for indemnity) in respect of the Term A Advances and Term B Advances, including all principal
thereof and all interest thereon, shall have been satisfied.

          SECTION 5. Reference to and Effect on the Credit Agreement; Confirmation of Guarantors and
Collateral Agent. (a) On and after the effectiveness of this Agreement, each reference in
the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring
to the Credit Agreement, and each reference in each of the other Loan Documents to “the Credit
Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement,
shall mean and be a reference to the Credit Agreement, as amended by, and after giving effect to,
this Agreement.

          (b) Each Loan Document, after giving effect to this Agreement, is and shall continue to be in
full force and effect and is hereby in all respects ratified and confirmed, except that, on and
after the effectiveness of this Agreement, each reference in the Guaranty to the “Credit
Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall
mean and be a reference to the Credit Agreement, as amended by, and after giving effect to, this
Agreement. Without limiting the generality of the foregoing, the Collateral Documents and all of
the Collateral described therein do and shall continue to secure the payment of all Obligations of
the Loan Parties under the Loan Documents, as amended by, and after giving effect to, this
Agreement.

          (c) Each Loan Party hereby (i) ratifies and reaffirms all of its payment and performance
obligations, contingent or otherwise, under each of the Loan Documents to which it is a party, (ii)
ratifies and reaffirms each grant of a lien on, or security interest in, its property made pursuant
to the Loan

8

 

Documents (including, without limitation, the grant of security made by such Loan Party
pursuant to Section 1 of the Security Agreement) and confirms that such liens and security
interests continue to secure the Obligations under the Loan Documents, including, without
limitation, all Obligations resulting from or incurred pursuant to the Facility and (iii) in the case of each Guarantor, ratifies
and reaffirms its unconditional guaranty of the Obligations pursuant to Article VIII of the Credit
Agreement.

          (d) The Collateral Agent hereby ratifies, approves and confirms that certain Amendment No. 1
to the Loan Documents dated as of March 31, 2006 and that certain Amendment and Waiver No. 2 to the
Loan Documents dated as of December 11, 2006.

          (e) The execution, delivery and effectiveness of this Agreement shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under
any of the Loan Documents, or constitute a waiver of any provision of any of the Loan Documents.

          SECTION 6. Assuming Lenders.

          (a) Each Assuming Lender (i) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements referred to in Section 4.01 thereof and such other
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Agreement; (ii) agrees that it will, independently and without reliance upon any
Agent or any Lender Party and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking action under the
Credit Agreement; (iii) represents and warrants that its name set forth on its signature page
hereto is its legal name; (iv) confirms that it is an Eligible Assignee; (v) appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise such powers and
discretion under the Loan Documents as are delegated to such Agent by the terms thereof, together
with such powers and discretion as are reasonably incidental thereto; (vi) agrees that it will
perform in accordance with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Lender; and (vii) attaches any U.S. Internal
Revenue Service forms required under Section 2.12 of the Credit Agreement.

          (b) On and after the Incremental Revolver Date, each Assuming Lender shall be a party to the
Credit Agreement and, to the extent provided in this Agreement, shall have the rights and
obligations of a Lender Party thereunder. All notices and other communications provided for
hereunder or under the Loan Documents to each Assuming Lender shall be to its address as set forth
in the administrative questionnaire it has furnished to the Administrative Agent.

          SECTION 7. Increasing Lenders. Each Increasing Lender agrees that until the earlier
to occur of the Restatement Effective Date and the Restatement Termination Date, (a) it shall not
assign to any Person any of its rights and obligations in respect of the Revolving Credit Facility
unless such Person shall have consented in writing to this Agreement, including, without
limitation, Section 3 and delivered an executed counterpart to the Amended and Restated Credit
Agreement (such counterpart to be held in escrow pending release in accordance with Section 3(a)),
and (b) notwithstanding anything to the contrary contained in any Loan Document, any assignment of
any of its rights and obligations in respect of the Revolving Credit Facility without such written
consent and executed counterpart shall be void ab initio.

          SECTION 8. Costs, Expenses. The Borrower agrees to pay on demand all reasonable out
of pocket costs and expenses of the Administrative Agent in connection with the preparation,
execution and delivery of this Agreement and the other instruments and documents to be delivered
hereunder (including, without limitation, the reasonable fees and expenses of counsel for the
Administrative Agent) in accordance with the terms of Section 9.04 of the Credit Agreement.

9

 

          SECTION 9. Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
but one and the same agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier (or other electronic transmission) shall be effective as delivery of a
manually executed counterpart of this Agreement.

          SECTION 10. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

[remainder of page intentionally left blank]

10

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	TD AMERITRADE HOLDING CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ WILLIAM J. GERBER
 

William J. Gerber
	 	 
	 

	 	Title:
	 	EVP and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	TD AMERITRADE ONLINE HOLDINGS CORP. 

(formerly
Ameritrade Online Holdings Corp. and successor to
Datek Online Holdings Corp. and TD Waterhouse Group,
Inc.)
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ MICHAEL D. CHOCHON	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Michael D. Chochon, Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TD AMERITRADE IP COMPANY, INC. 

(formerly Ameritrade
IP Company, Inc.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ MICHAEL D. CHOCHON	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Michael D. Chochon, CFO	 	 
	 
	 	 	 	 	 	 
	 	 	TD AMERITRADE SERVICES COMPANY, INC. (formerly
Ameritrade Services Company, Inc.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ WILLIAM J. GERBER	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	William J. Gerber, President	 	 
	 
	 	 	 	 	 	 
	 	 	THINKTECH, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ MICHAEL D. CHOCHON	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Michael D. Chochon, Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	THINKORSWIM GROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ WILLIAM J. GERBER	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	William J. Gerber, Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	THINKORSWIM HOLDINGS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ WILLIAM J. GERBER	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	William J. Gerber, CFO	 	 

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON, as 

Administrative Agent,
Swing Line Bank and Issuing Bank and as an Increasing
Lender
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ ANDREW T. KARP
 

Andrew T. Karp
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $20,000,000	 	 

 

 

	 	 	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC., 

as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ WILLIAM MANDARO
 

William Mandaro
	 	 
	 

	 	Title:
	 	Director	 	 

 

 

	 	 	 	 	 	 	 
	 	 	Bank of America, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ GARFIELD JOHNSON
 

Title: Senior Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $48,000,000	 	 
	 
	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ DAVID BARTON	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $48,000,000	 	 
	 
	 	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ WILLIAM MANDARO	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $48,000,000	 	 
	 
	 	 	 	 	 	 
	 	 	J.P. MORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ PIERS C. MURRAY	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $48,000,000	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ RYAN K. JOHNSON	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $48,000,000	 	 
	 
	 	 	 	 	 	 
	 	 	First National Bank of Omaha	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ MARK BARATTA	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Vice President, Manager	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $20,000,000	 	 
	 
	 	 	 	 	 	 
	 	 	BANKERS TRUST COMPANY, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ JOE M. DEJONG	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $10,000,000	 	 
	 
	 	 	 	 	 	 
	 	 	The Private Bank and Trust Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ KIM A. BUTLER
 

Title: Managing Director
	 	 
	 
	 	 	 	 	 	 
	 	 	Revolving Credit Commitment: $10,000,000	 	 

 

 

EXHIBIT A

AMENDED AND RESTATED CREDIT AGREEMENTexv10w3

Exhibit 10.3

TD AMERITRADE HOLDING CORPORATION

JOHN BUNCH EMPLOYMENT AGREEMENT

     This Agreement, originally entered into as of December 13, 2004, by and between TD Waterhouse
Group, Inc. and John Bunch and assumed by TD Ameritrade Holding Corporation (the “Company”)
and subsequently amended effective as of July 10, 2006 and June 24, 2008, is hereby amended and
restated in its entirety effective as of September 18, 2008.

     1. Employment.

     Subject to the provisions or Section 6 hereof, this Agreement shall be deemed to be effective
and your employment shall be deemed to have commenced on July 6, 2004 (the “Effective
Date”) and shall continue through July 5, 2009 (the “Term”), on the terms and subject
to the conditions set forth in this Agreement; provided, however, that commencing July 6, 2009 and
on each July 6 thereafter (each an “Extension Date”), the Term automatically shall be
extended for an additional one-year period, unless the Company or Executive provides the other
party hereto 60 days prior written notice before each such Extension Data that the Term shall not
be so extended.

     2. Position, Duties and Responsibilities.

          (a) During the Term, the Company shall employ you in the position of President, Retail
Distribution. You shall perform your assigned duties at the Company or, at the option of the
Company, at one of its subsidiaries or affiliates. You shall devote your full time and efforts to
the performance of all of the duties associated with that position as well as any and all other
duties Company management may from time to time designate or assign.

          (b) During the Term, you may not, without prior written consent of the Company, accept an
appointment, whether or not for remuneration, as a director, officer, manager, employee or
consultant of or to a company or business that is not affiliated with the Company.

     3. Compensation.

          (a) Base Salary. During the Term, and effective as of October 1, 2008, the Company
shall pay you a base salary at the annual rate of $400,000, payable Bi-weekly in accordance with
the Company’s prevailing payroll practices. Your base salary shall be reviewed annually and you
shall be entitled to such increases in your base salary, if any, as may be determined in the sole
discretion of the HR & Compensation Committee (the “Committee”) of the Board of Directors
(the “Board”) of the Company. Your base salary, as in effect from time to time, is
hereinafter referred to as your “Base Salary.”

 

 

          (b) Annual Incentive. You will be eligible to participate in the TD Ameritrade
Holding Corporation Management Incentive Plan (the “MIP”) and receive an incentive award
(an “Annual Incentive”) for each full fiscal year of the Company. Payment of Annual
Incentives in any fiscal year is subject to approval by the Committee, as well as your continued
satisfactory performance and active employment with the Company. For the Company’s 2009 fiscal
year, your annual target incentive award under the MIP will be set at $800,000. Thereafter, the
amount of each such Annual Incentive shall not be guaranteed but shall be established by the
Committee in its sole discretion, subject to firm and individual performance, and shall be payable
in accordance with customary Company practices.

          (c) Annual Awards. You will be eligible to participate in the Company’s 1996
Long-Term Incentive Plan (the “LTIP”). For the Company’s 2009 fiscal year, you will be
eligible for an award of restricted stock units with a target value of $800,000, determined by the
Company pursuant to a reasonable and uniform methodology on the date of grant, and will be
scheduled to vest and be settled in accordance with the applicable performance criteria and vesting
schedule provided in the applicable award agreement under the LTIP.

          (d) Special Grant. You will be granted, at the next regularly scheduled meeting of
the Committee which follows the execution of this Agreement, a special award under the LTIP of
restricted stock units with a target value, determined by the Company pursuant to a reasonable and
uniform methodology, equal to $2,000,000 on the date of grant, which will be scheduled to vest and
be settled in accordance with the applicable vesting schedule provided in the applicable award
agreement under the LTIP.

     4. Benefits.

          (a) Employee Benefits. During the Term, except as otherwise specifically provided for
herein, you shall be eligible to participate in the Company’s employee benefit plans, programs and
policies (other than bonus and stock-based compensation plans) as in effect from time to time
(collectively “Employee Benefits”) on the same basis as those benefits are generally made
available to employees of similar position.

          (b) Vacation. You will entitled to 20 paid vacation days per calendar year.

     5. Expenses.

     During the Term, all documented and verified, reasonable and necessary business expenses that
you incur in connection with the performance of your duties hereunder shall be reimbursed in
accordance with the Company’s general policies.

     6. Termination of Employment.

     The Term and your employment hereunder may be terminated by either party at any time and for
any reason; provided, that you will be required to give the Company at least 30 days advance
written notice of any resignation of your employment. Notwithstanding any other provision of this
Agreement, the provisions of this Section 6 shall exclusively govern your rights upon termination
of employment with the Company and its affiliates.

-2-

 

          (a) By the Company For Cause.

               (i) The Term and your employment hereunder may be immediately terminated by the Company for
“Cause” (as defined below).

               (ii) As used herein, “Cause” shall mean:

                    (A) Your failure to substantially perform your duties hereunder (other than as a result of
total or partial incapacity due to physical or mental illness) for a period of 10 days following
written notice by the Company to you of such failure or immediately if, in the reasonable judgment
of the Company, you would not be able to rectify such failure within 10 days;

                    (B) dishonesty in the performance of your duties hereunder;

                    (C) an act or acts on your part constituting (x) a felony or (y) a misdemeanor involving
dishonesty, breach of trust or moral turpitude;

                    (D) your willful malfeasance or willful misconduct in connection with your duties hereunder or
any act or omission which is materially injurious to the financial condition or business reputation
of the Company or any of its subsidiaries or affiliates;

                    (E) your breach of any of the provisions of Sections 7, 8, 9 or 10 of this Agreement;

                    (F) your misappropriation of assets of, or embezzlement from, the Company or any of its
subsidiaries or affiliates or customers; or

                    (G) your willful failure to implement promptly the material directives of the Company that are
susceptible of performance by you, which are in furtherance of a lawful business objective of the
Company of any of its subsidiaries or affiliates and are within the scope of your responsibilities,
where such failure is not cured within 10 days following written notice by the Company to you of
such failure or immediately if, in the reasonable judgment of the Company, you would not be able to
rectify such failure within 10 days.

               (iii) If your employment is terminated by the Company for Cause, you shall be entitled to
receive:

                    (A) the Base Salary through the date of termination;

                    (B) payment for any vacation accrued but unused as of the date of termination;

                    (C) reimbursement for any unreimbursed business expenses properly incurred by you in
accordance with Company policy prior to the date of your termination; and

-3-

 

                    (D) such Employee Benefits, if any, as to which you may be entitled under the employee
benefits plans of the Company (the amounts described in clauses (A) through (D) hereof being
referred to as the “Accrued Rights”).

     Following such termination of your employment by the Company for Cause, except as set forth in
this Section 6(a)(iii), you shall have no further rights to any compensation or any other benefits
under this Agreement, and you shall not be entitled to any unpaid Annual Incentive. No service
shall accrue, and no benefit accruals based on service, including, but not limited to vacation
benefits, shall accrue beyond the effective date of termination.

          (b) Disability or Death.

               (i) The Term and your employment hereunder shall terminate upon your death and may be
terminated by the Company on account of your “Disability” (defined below).

               (ii) As used herein, “Disability’ shall mean your inability to perform the essential functions
of your duties and responsibilities to the Company, or any affiliate of the Company, by reason of a
physical or mental disability or infirmity that is reasonably be expected to be permanent and has
continued (i) for a period of twelve consecutive months or (ii) such shorter period as the
Committee may reasonably determine. The Disability determination shall be made in the sole
discretion of the Committee, and you (or your representative) shall furnish the Committee with
evidence documenting your ability to perform the essential functions of your job that is
satisfactory to the Committee.

               (iii) Upon termination of your employment hereunder for either Disability or death, you or
your estate (as the case may be) shall be entitled to receive:

                    (A) the Accrued Rights;

                    (B) any Annual Incentive earned but unpaid as of the date of termination for any previously
completed fiscal year; and

                    (C) a pro rata portion of any Annual Incentive, if any, that you would have been entitled to
receive pursuant to Section 3(b) of this Agreement in such year based upon the percentage of the
fiscal year that shall have elapsed through the date of your termination of employment, payable
based upon actual performance and when such Annual Incentive would have otherwise been payable had
your employment not terminated.

     Following your termination of employment due to death or Disability, except as set forth in
this Section 6(b)(iii), you shall have no further rights to any compensation or any other benefits
under this Agreement. No service shall accrue, and no benefit accruals based on service,
including, but not limited to vacation benefits, shall accrue beyond the effective date of
termination.

          (c) By the Company Without Cause or By Your Resignation for Good Reason.

               (i) The Term and your employment hereunder may be terminated by the Company without Cause or
by your resignation for Good Reason.

-4-

 

               (ii) For purposes of this Agreement, “Good Reason” shall mean (A) the failure of the Company
to pay or cause to be paid your Base Salary or Annual Incentive, when due hereunder, or (B) any
substantial and sustained diminution in your authority and responsibilities from those described in
Section 2 hereof; provided, that either of the events described in Clauses (A) and (B) of this
Section 6(c)(ii) shall constitute Good Reason only if the Company fails to cure such event within
30 days after receipt from you of written notice of the event which constitutes Good Reason; and
provided, further, that “Good Reason” shall cease to exist for an event on the 60th day
following the later of its occurrence or your knowledge thereof, unless you have given the Company
written notice thereof prior to such date.

               (iii) If your employment is terminated by the Company without Cause (other than by reason of
death or Disability) or if you resign for Good Reason, you shall be entitled to receive:

                    (A) the Accrued Rights;

                    (B) any Annual Incentive earned but unpaid as of the date of termination for any previously
completed fiscal year; and

                    (C) subject to your continued compliance with the provisions of Sections 7, 8, 9 and 10 of
this Agreement, and conditioned upon your execution, at the time of your termination, of a general
release substantially in the form used by the Company and satisfactory to it, which release is not
revoked by you:

                         a) You will be paid severance as (1) continued payment of your Base Salary and (2) your
average Annual Incentive (calculated based on the prior two completed fiscal years, or, if two
fiscal years have not been completed, calculated based on the sole prior completed fiscal year)
until the later of (x) 24 months after the date of such termination and (y) the expiration of the
Employment Term determined as if such termination had not occurred (the “Severance
Period”); provided, that the aggregate amount described in the clause (C) shall be reduced by
the present value of any other cash severance or termination benefits payable to you under any
other plans, programs or arrangements of the Company or its affiliates; and

                         b) You will be paid severance in an amount equal to the current year’s Annual Incentive
pro-rated to the date of termination, with such pro-rated amount to be calculated by multiplying
the current year’s actual Annual Incentive award which would be paid based on actual performance by
a fraction with a numerator equal to the number of days between the start of the current fiscal
year and the date of termination and a denominator equal to 365, with such pro-rated payment being
made at the same time and in the same form as other payments are made to participants in the MIP.

               (iv) Change in Control. In the event that the Term and your employment hereunder is
terminated by the Company without Cause or by your Resignation for Good Reason during the twelve
month period following a Change in Control (as defined in the LTIP), then, subject to your
execution, at the time of your termination, of a general release substantially in the form used by
the Company and satisfactory to it, which release is not revoked by you, you shall receive from

-5-

 

the Company, in addition to any benefits payable to you pursuant to Section 6(c)(iii) above,
continued payment of your Base Salary and continued provision of medical, vision and dental
benefits, on the same terms and subject to the same participant contributions as applicable to
active employees, for a period of twelve months following the Severance Period referred to in
Section 6(c)(iii) above.

     Following your termination of employment by the Company without Cause (other than by reason of
your death or Disability) or your resignation for Good Reason, except as set forth in this
Section 6(c), you shall have no further rights to any compensation or any other benefits under this
Agreement. No service shall accrue, and no benefit accruals based on service, including, but not
limited to vacation benefits, shall accrue beyond the effective date of termination.

          (d) Expiration of Term.

               (i) Election Not to Extend the Term. Unless your employment is earlier terminated
pursuant to paragraphs (a), (b) or (c) of this Section 6, your termination of employment hereunder
(whether or not you continue as an employee of the Company thereafter) shall be deemed to occur on
the close of business on the day immediately preceding the next scheduled Extension Date and you
shall be entitled to receive the Accrued Rights. Notwithstanding the above, in the event that at
any time, the Term is not extended by reason of the election of the Company and you do not continue
as an employee of the Company following the expiration of the Term, then, upon the termination of
your employment, and subject to your continued compliance with the provisions of Sections 7, 8, 9
and 10 of this Agreement, and conditioned upon your execution, at the time of termination, of a
general release substantially in the form used by the Company and satisfactory to it, which release
is not revoked, you will be paid severance as (1) continued payment of Base Salary and (2) average
Annual Incentive (calculated based on the prior two completed fiscal years until 24 months after
the date of such termination (the “Severance Period”)), provided, however, that the Annual
Incentive for fiscal year of your termination shall be forfeited; provided, that the aggregate
amount described herein shall be reduced by the present value of any other cash severance or
termination benefits payable to you under any other plans, programs or arrangements of the Company
or its affiliates.

               (ii) Continued Employment Beyond the Expiration of the Term. Unless you and the
Company otherwise agree in writing (i.e., by agreeing to a written renewal of this Agreement or a
written extension of the Term), continuation of your employment with the Company beyond the
expiration of the Term shall be deemed an employment at-will and shall not be deemed to extend any
of the provisions of this Agreement and your employment may thereafter be terminated at will by
either you or the Company; provided, that the provisions of the Section 6(d)(ii) and Sections 7, 8,
9, 10, 11 and 18 of this Agreement shall survive any termination of this Agreement or your
termination of employment hereunder. Upon the termination by the Company of your at-will
employment, and subject to your continued compliance with the provisions of Sections 7, 8, 9 and
10 of this Agreement, and conditioned upon your execution, at the time of termination, of a general
release substantially in the form used by the Company and satisfactory to it, which release is not
revoked, you will be paid severance as (1) continued payment of Base Salary and (2) average Annual
Incentive (calculated based on the prior two completed fiscal years until 24 months after the date
of such termination (the “Severance Period”)), provided, however, that the

-6-

 

Annual Incentive for fiscal year of your termination shall be forfeited; provided, that the
aggregate amount described herein shall be reduced by the present value of any other cash severance
or termination benefits payable to you under any other plans, programs or arrangements of the
Company or its affiliates.

          (e) Notice of Termination. Any purported termination of employment by the Company or
by you (other than due to your death) shall be communicated by written Notice of Termination to the
other party hereto in accordance with Section 12 hereof. For purposes of this Agreement, a
“Notice of Termination” shall mean a notice which shall indicate the specific termination
provision in this Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of employment under the provision so
indicated.

     7. Non-Competition.

          (a) You acknowledge and recognize the highly competitive nature of the “discount broker
business” of the Company and its affiliates (the “Business”) and accordingly agree that
while you are employed with the Company, and for a period of 12 months following the termination of
your employment by the Company, or if elected pursuant to Section 6(d), your resignation of
employment (the “Restricted Period”), you will not directly or indirectly, (i) engage in
any business that competes with the Business (including, without limitation, “discount broker
businesses” which the Company or its affiliates have specific plans to conduct in the future and as
to which you are aware of such planning), (ii) enter the employ of, or render any services to, any
person engaged in any “discount broker business” that competes with the Business, (iii) acquire a
financial interest in, or otherwise become actively involved with, any person engaged in any
“discount broker business” that competes with the Business globally, directly or indirectly, as an
individual, employee, partner, shareholder, officer, director, principal, agent, trustee or
consultant, or (iv) interfere with business relationships (whether formed before or after the date
of this Agreement) between the Company or any of its affiliates and customers, suppliers, partners,
members or investors of the Company or any of its affiliates and customers, suppliers, partners,
members or investors of the Company of its affiliates. For purposes of this Agreement, the term
“discount broker business” is defined as on-line brokerage business and the active trader and long
term investor client segments, and also includes any such other business formally proposed (and
considered at a meeting of the Board) to be conducted by the Company.

     Notwithstanding anything to the contrary in this Agreement, you may, directly or indirectly,
own, solely as an investment, securities of any person, business or entity engaged in the “discount
broker business” that is a competitor of the Company or its affiliates which are publicly traded on
a national or regional stock exchange or on the over-the-counter market if you (i) are not a
controlling person of, or a member of a group which controls, such person and (ii) do not, directly
or indirectly, own one percent or more of any class of securities or such person.

     8. Non-Solicitation.

     While you are employed with the Company or any of its affiliates, and during the Restricted
Period (as defined in Section 7(a) above):

-7-

 

          (a) you will not (i) recruit or hire any current employee or consultant of the Company, or
(ii) otherwise solicit or induce, directly or indirectly, or cause other persons to solicit or
induce, any such employee or consultant to leave the employment or service of the Company or to
become an employee of or otherwise be associated with you or any company or business with which you
are or may become associated, or (iii) encourage or assist in the hiring process of any employee or
consultant of the Company or in the modification of any such employee’s or consultant’s
relationship with the Company; and

          (b) you will not, directly or indirectly, solicit the trade or business of any clients or
customers of the Company, regardless of location, with respect to any such client or customer as of
the time of termination.

     9. Non-Disclosure of Confidential Information.

     You will not at any time, whether during your employment or following the termination of your
employment, for any reason whatsoever, and forever hereafter, directly or indirectly disclose or
furnish to any firm, corporation or person, except as otherwise required by law, any “confidential
or proprietary information” of the Company with respect to any aspect of its operations or affairs.
“Confidential or proprietary information” shall mean information generally unknown to the
public to which you gain access by reason of your employment by the Company and includes, but is
not limited to, information relating to business and marketing plans or results, sales, trading and
financial data and strategies, salaries and employees and operational costs.

     10. Return of Company Property and Company Work Product.

     All records, files, memoranda, reports, customer information, client lists, documents,
equipment, and the like relating to the business of the Company, which you shall use, prepare, or
come into contact with, shall remain the sole property of the Company. You agree that on request
of the Company, and in any event upon the termination of your employment, you shall turn over to
the Company all documents, papers, or other material in your possession and under your control
which may contain or be derived from confidential information, together with all documents, notes,
or other work product which is connected with or derived from your services to the Company whether
or not such material is in your possession. You agree you shall have no proprietary interest in
any work product developed or used by you and arising out of employment by the Company. You agree
to return to the Company any Company property in your possession such as, but not limited to,
building keys, corporate credit card, and computer and electronic communication equipment (i.e.,
laptop, cellular phone, palm pilot, etc.).

     11. Right to Injunctive Relief.

     The undertakings in Section 7 (Non-Competition), Section 8 (Non-Solicitation), Section 9
(Non-disclosure of Confidential Information) and Section 10 (Return of Company Property and Work
Product) of this Agreement shall survive the termination of your employment with the Company for
any reason whatsoever. You acknowledge that the Company will suffer irreparable injury not readily
susceptible of valuation in monetary damages, if you breach any of your obligations under
Sections 7, 8, 9 or 10 of this Agreement. Accordingly, in addition to any other

-8-

 

rights and remedies which the Company may have, you agree that the Company will be entitled to
injunctive relief against any breach or prospective breach by you of your obligations under
Sections 7, 8, 9 and 10 of this Agreement in any federal or state court of competent jurisdiction
located in New York State. You hereby submit to the jurisdiction of said courts for the purpose of
any actions or proceedings instituted by the Company to obtain such injunctive relief, and agree
that process may be served on you by registered mail at your last address known to the Company, or
in any other manner authorized by law and that you will pay the Company’s costs and reasonable
attorney’s fees in the event the Company is required to initiate a proceeding for injunctive relief
to enforce the provisions hereof, and such an injunction is issued.

     12. Notices.

     Any notice to be given hereunder shall be in writing and delivered personally or sent by
certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the
address indicated below or to such other address as such party may designate in writing.

	 	 	 	 	 
	TO: Mr. John Bunch

	 	TO:
	 	Chief Human Resources Officer
	 

	 	 	 	TD Ameritrade Holding Corporation
	 

	 	 	 	4211 South 102nd Street
	 

	 	 	 	Omaha, NE 68127

     Any notice delivered personally under this Section shall be deemed given on the date
delivered, and any notice sent by certified mail, postage prepaid, return receipt requested, shall
be deemed given on the date mailed.

     13. Code Section 409A.

     Notwithstanding anything in this Agreement to the contrary, if you are a “specified employee”
within the meaning of Section 409A of the Code and the regulations thereunder at the time of any
termination of employment, all of the cash payments required pursuant to this Agreement shall be
delayed by six months in order to avoid the imposition of additional tax under Section 409A of the
Code and the regulations thereunder, provided that any cash payments due to you within the first
six months after such a termination of employment will instead be paid in a lump sum six months and
one day following such a termination of employment. Thereafter, any additional payments will
continue to be paid in accordance with the terms and conditions of this Agreement. It is the
intent of this Agreement to comply with the requirements of Section 409A of the Code, and any
ambiguities herein will be interpreted to so comply.

     14. Savings.

     Should any provision herein be rendered or declared legally invalid or unenforceable by a
court of competent jurisdiction or by the decision of an authorized governmental agency, such
invalidation of such part shall not invalidate the remaining portions thereof.

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     15. Your Representation and Warranty.

     By signing your name below and agreeing to the terms of this Agreement, you represent and
warrant that you are not a party to any agreement or bound by any obligation which would prohibit
you from accepting and agreeing hereto or fully performing the obligation hereunder and that your
performance of your duties hereunder shall not constitute a breach of, or otherwise contravene, the
terms of any employment agreement or other agreement or policy to which you are a party or bound.

     16. Prior Agreements.

     This Agreement supersedes all prior agreements and understandings between you and the Company
and/or its affiliates regarding the terms and conditions of your employment with the Company and/or
its affiliates, without limitation.

     17. Complete Agreement.

     The provisions herein contain the entire agreement and understanding of the parties and fully
supersede any and all prior agreements or understandings between them pertaining to the subject
matter hereof. There have been no representations, inducements, promises or agreements of any kind
that have been made by either party, or by any person acting on behalf of either party, which are
not embodied herein. The provisions hereof may not be changed or altered except in writing duly
executed by you and a duly authorized agent of the Company.

     18. Withholding Taxes.

     The Company may withhold from any amounts payable under this Agreement, such taxes as may be
required to be withheld pursuant to any applicable law or regulation.

     19. Cooperation.

     You agree to provide your responsible cooperation in connection with any action or proceeding
(or any appeal from any action or proceeding) that relates to events occurring during your
employment hereunder. This provision shall survive any termination of the Term or of this
Agreement.

     20. Applicable Law.

     The interpretation and application of the terms herein shall be governed by the laws of the
State of New York without regard to principles of conflict of laws.

     21. Consent to Jurisdiction.

     The sole jurisdiction and venue for actions related to the subject matter of this Agreement or
the employment relationship between us shall be any federal or state court of competent
jurisdiction located in New York State.

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     22. No Waiver.

     The failure of a party to insist upon strict adherence to any term of this Agreement,
including but not limited to its rights to terminate this Agreement, on any occasion shall not be
considered a waiver of such party’s rights or deprive such party of the right thereafter to insist
upon strict adherence to that term of any other term of this Agreement.

     23. Severability.

     In the event that any one or more of the provisions of this Agreement shall be or become
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.

     24. Assignment.

     This Agreement shall not be assignable by you. This Agreement may be assigned by the Company
to a person or entity that is an affiliate or successor in interest to substantially all of the
business operations of the Company. Upon such assignment, the rights and obligations of the
Company hereunder shall become the rights and obligations of such affiliate or successor person or
entity.

     25. Successors; Binding Agreement.

     This Agreement shall inure to the benefit of and be binding upon personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees, and
legatees.

     26. Verification.

     This Agreement and your employment hereunder is subject to verification by the Company that
you have no criminal record of any nature, and will be void ab initio if the Company shall be
unable to make such verification.

     27. Titles.

     Titles to the sections in this Agreement are intended solely for convenience and no provision
of this Agreement is to be construed by reference to the title of any section..

     28. Counterparts.

     This Agreement may be executed simultaneously in one or more counterparts, each of which shall
be deemed an original but all of which together shall constitute one and the same instrument.

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     If the foregoing terms of employment are acceptable, please so indicate in the space provided
below.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	By:  	/s/ FRED J. TOMCZYK
 	 
	 	 	Name:  	Fredric J. Tomczyk 	 
	 	 	Title:  	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	AGREED AND ACCEPTED	 	 
	 
	 	 	 	 
	Signed:

	 	/s/ JOHN BUNCH
 

John Bunch
	 	 
	 
	 	 	 	 
	Date: 9/18/08	 	 

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