Document:

exv4w2

 

Exhibit 4.2

 

Registration Rights Agreement

by and between

Stone Energy Corporation

and

Banc of America Securities LLC,

June 28, 2006

 

 

 

REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (the “Agreement”) is made and entered into this 28th day
of June, 2006, among Stone Energy Corporation, a Delaware corporation (the “Company”), and Banc
of America Securities LLC (the “Initial Purchaser”).

          This Agreement is made pursuant to the Purchase Agreement, dated June 23, 2006, among the
Company and the Initial Purchaser (the “Purchase Agreement”), which provides for the sale by the
Company to the Initial Purchaser of an aggregate of $225.0 million principal amount of the
Company’s Senior Floating Rate Notes due 2010 (the “Securities”). In order to induce the Initial
Purchaser to enter into the Purchase Agreement, the Company has agreed to provide to the Initial
Purchaser and their direct and indirect transferees the registration rights set forth in this
Agreement. The execution of this Agreement is a condition to the closing under the Purchase
Agreement.

          In consideration of the foregoing, the parties hereto agree as follows:

          1. Definitions.

          As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

    “1933 Act” shall mean the Securities Act of 1933, as amended from time to
time.

    “1934 Act” shall mean the Securities Exchange Act of l934, as amended from
time to time.

    “Closing Date” shall mean the Closing Time as defined in the Purchase
Agreement.

    “Company” shall have the meaning set forth in the preamble and shall also
include the Company’s successors.

    “Depositary” shall mean The Depository Trust Company, or any other depositary
appointed by the Company, provided, however, that such depositary must have an address in
the Borough of Manhattan, in The City of New York.

    “Exchange Offer” shall mean the exchange offer by the Company of Exchange
Securities for Registrable Securities pursuant to Section 2.1 hereof.

    “Exchange Offer Registration” shall mean a registration under the 1933 Act
effected pursuant to Section 2.1 hereof.

    “Exchange Offer Registration Statement” shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate form or on

1

 

any successor
form used for substantially the same transactions), and all amendments and supplements to
such registration statement, including the Prospectus contained therein, all exhibits
thereto and all documents incorporated by reference therein.

    “Exchange Period” shall have the meaning set forth in Section 2.1(b) hereof.

    “Exchange Securities” shall mean the Senior Floating Rate Notes due 2010,
issued by the Company under the Indenture containing terms identical to the Securities in
all material respects (except for references to certain interest rate provisions,
restrictions on transfers and restrictive legends), to be offered to Holders of Securities
in exchange for Registrable Securities pursuant to the Exchange Offer.

    “Holder” shall mean the Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its successors, assigns and direct and indirect
transferees who become registered owners of Registrable Securities under the Indenture and
each Participating Broker-Dealer that holds Exchange Securities for so long as such
Participating Broker-Dealer is required to deliver a prospectus meeting the requirements of
the 1933 Act in connection with any resale of such Exchange Securities.

    “Indenture” shall mean the Indenture relating to the Securities, dated as of
June 28, 2006, between the Company and JPMorgan Chase Bank, National Association, as
trustee, as the same may be amended, supplemented, waived or otherwise modified from time
to time in accordance with the terms thereof.

    “Initial Purchaser” shall have the meaning set forth in the preamble.

    “Issuer Free Writing Prospectus” shall have the meaning set forth in Section
2.6 hereof.

    “Majority Holders” shall mean the Holders of a majority of the aggregate
principal amount of Outstanding (as defined in the Indenture) Registrable Securities;
provided that whenever the consent or approval of Holders of a specified percentage
of Registrable Securities is required hereunder, Registrable Securities held by the Company
and other obligors on the Securities or any Affiliate (as defined in the Indenture) of the
Company shall be disregarded in determining whether such consent or approval was given by
the Holders of such required percentage amount.

    “Participating Broker-Dealer” shall mean Banc of America Securities LLC, and
any other broker-dealer which makes a market in the Securities and exchanges Registrable
Securities in the Exchange Offer for Exchange Securities.

    “Person” shall mean an individual, partnership (general or limited),
corporation, limited liability company, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

2

 

    “Private Exchange” shall have the meaning set forth in Section 2.1 hereof.

    “Private Exchange Securities” shall have the meaning set forth in Section 2.1
hereof.

    “Prospectus” shall mean the prospectus included in a Registration Statement,
including any preliminary prospectus, and any such prospectus as amended or supplemented by
any prospectus supplement, including any such prospectus supplement with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Shelf
Registration Statement, and all other amendments and supplements to a prospectus, including
post-effective amendments, and in each case including all material incorporated by
reference therein.

    “Purchase Agreement” shall have the meaning set forth in the preamble.

    “Registrable Securities” shall mean the Securities and, if issued, the Private
Exchange Securities; provided, however, that the Securities and, if issued, the Private
Exchange Securities, shall cease to be Registrable Securities when (i) a Registration
Statement with respect to such Securities shall have been declared effective under the 1933
Act and such Securities shall have been disposed of pursuant to such Registration
Statement, (ii) such Securities have been sold to the public pursuant to Rule l44 (or any
similar provision then in force, but not Rule 144A) under the 1933 Act, (iii) such
Securities shall have ceased to be outstanding or (iv) the Exchange Offer is consummated
(except in the case of Securities purchased from the Company which may not be exchanged in
the Exchange Offer).

    “Registration Expenses” shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including without
limitation: (i) all SEC, stock exchange or National Association of Securities Dealers,
Inc. (the “NASD”) registration and filing fees, including, if applicable, the fees and
expenses of any “qualified independent underwriter” (and its counsel) that is required to
be retained by any Holder of Registrable Securities in accordance with the rules and
regulations of the NASD, (ii) all fees and expenses incurred in connection with compliance
with state securities or blue sky laws and compliance with the rules of the NASD (including
reasonable fees and disbursements of one counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Exchange Securities or Registrable
Securities and any filings with the NASD), (iii) all expenses of any Persons in preparing
or assisting in preparing, word processing, printing and distributing any Registration
Statement, any Prospectus, any amendments or supplements thereto, any underwriting
agreements, securities sales agreements and other related documents, (iv) all fees and
expenses incurred in connection with the listing, if any, of any of the Registrable
Securities on any securities exchange or exchanges, (v) all rating agency fees, (vi) the
fees and disbursements of counsel for the Company and of the independent public accountants
of the Company, including the expenses of any special audits or “cold comfort” letters required by or incident to such
performance and compliance, (vii) the

3

 

fees and expenses of the Trustee, and any escrow
agent or custodian, (viii) in the case of a Shelf Registration, the reasonable fees and
disbursements of special counsel representing the Holders of Registrable Securities and
(ix) any fees and disbursements of the underwriters customarily required to be paid by
issuers or sellers of securities and the fees and expenses of any special experts retained
by the Company in connection with any Registration Statement, but excluding underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or disposition
of Registrable Securities by a Holder.

    “Registration Statement” shall mean any registration statement of the Company
which covers any of the Exchange Securities or Registrable Securities pursuant to the
provisions of this Agreement, and all amendments and supplements to any such Registration
Statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

    “SEC” shall mean the Securities and Exchange Commission or any successor
agency or government body performing the functions currently performed by the United States
Securities and Exchange Commission.

    “Shelf Registration” shall mean a registration effected pursuant to Section
2.2 hereof.

    “Shelf Registration Statement” shall mean a “shelf” registration statement of
the Company pursuant to the provisions of Section 2.2 of this Agreement which covers all of
the Registrable Securities or all of the Private Exchange Securities on an appropriate form
under Rule 415 under the 1933 Act, or any successor or similar rule that may be adopted by
the SEC, and all amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

    “Trustee” shall mean the trustee with respect to the Securities under the
Indenture.

          2. Registration Under the 1933 Act.

          2.1 Exchange Offer. The Company shall, for the benefit of the Holders, at the
Company’s cost, (A) prepare and, as soon as practicable but not later than 360 days following the
Closing Date, file with the SEC an Exchange Offer Registration Statement on an appropriate form
under the 1933 Act with respect to a proposed Exchange Offer and the issuance and delivery to the
Holders, in exchange for the Registrable Securities (other than Private Exchange Securities), of
a like principal amount of Exchange Securities, (B) use commercially reasonable efforts to cause
the Exchange Offer Registration Statement to be declared effective under the 1933 Act within 180
days after the filing of the Registration Statement, (C) use commercially
reasonable efforts to keep the Exchange Offer Registration Statement effective until the closing
of the Exchange Offer and (D) use commercially

4

 

reasonable efforts to cause the Exchange Offer to
be completed within 210 days after the filing of the Registration Statement. The Exchange
Securities will be issued under the Indenture. Upon the effectiveness of the Exchange Offer
Registration Statement, the Company shall commence the Exchange Offer, it being the objective of
such Exchange Offer to enable each Holder eligible and electing to exchange Registrable
Securities for Exchange Securities (assuming that such Holder (a) is not an affiliate of the
Company within the meaning of Rule 405 under the 1933 Act, (b) is not a broker-dealer tendering
Registrable Securities acquired directly from the Company for its own account, (c) has acquired
or will acquire the Exchange Securities in the ordinary course of such Holder’s business and (d)
has no arrangements or understandings with any Person to participate in the Exchange Offer for
the purpose of distributing the Exchange Securities) to transfer such Exchange Securities from
and after their receipt without any limitations or restrictions under the 1933 Act and under
state securities or blue sky laws.

          In connection with the Exchange Offer, the Company shall:

               (a) mail as promptly as practicable to each Holder a copy of the Prospectus forming part of
the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and
related documents;

               (b) keep the Exchange Offer open for acceptance for a period of not less than 20 business
days after the date notice thereof is mailed to the Holders (or longer if required by applicable
law) (such period referred to herein as the “Exchange Period”);

               (c) utilize the services of the Depositary for the Exchange Offer;

               (d) permit Holders to withdraw tendered Registrable Securities at any time prior to 5:00
p.m. (Eastern Time), on the last business day of the Exchange Period, pursuant to the
instructions in the letter of transmittal;

               (e) notify each Holder that any Registrable Security not tendered will remain outstanding
and continue to accrue interest, but will not retain any rights under this Agreement (except in
the case of the Initial Purchaser and Participating Broker-Dealers as provided herein); and

               (f) otherwise comply in all respects with all applicable laws relating to the Exchange
Offer.

          If, prior to consummation of the Exchange Offer, the Initial Purchaser holds any Securities
acquired by it and having the status of an unsold allotment in the initial distribution, the
Company upon the written request of the Initial Purchaser shall, simultaneously with the delivery
of the Exchange Securities in the Exchange Offer, issue and deliver to the Initial Purchaser in
exchange (the “Private Exchange”) for the Securities held by the Initial Purchaser, a
like principal amount of debt securities of the Company on a senior subordinated basis, that

5

 

are
identical (except that such securities shall bear appropriate transfer restrictions) to the
Exchange Securities (the “Private Exchange Securities”).

          The Exchange Securities and the Private Exchange Securities shall be issued under (i) the
Indenture or (ii) an indenture identical in all material respects to the Indenture and which, in
either case, has been qualified under the Trust Indenture Act of 1939, as amended (the “TIA”), or
is exempt from such qualification and shall provide that the Exchange Securities shall not be
subject to the transfer restrictions set forth in the Indenture but that the Private Exchange
Securities shall be subject to such transfer restrictions. The Indenture or such indenture shall
provide that the Exchange Securities, the Private Exchange Securities and the Securities shall
vote and consent together on all matters as one class and that none of the Exchange Securities,
the Private Exchange Securities or the Securities will have the right to vote or consent as a
separate class on any matter. The Private Exchange Securities shall be of the same series as and
the Company shall use all commercially reasonable efforts to have the Private Exchange Securities
bear the same CUSIP number as the Exchange Securities.

          As soon as practicable after the close of the Exchange Offer and/or the Private Exchange, as
the case may be, the Company shall:

     (i) accept for exchange all Registrable Securities duly tendered and not
validly withdrawn pursuant to the Exchange Offer in accordance with the terms of the
Exchange Offer Registration Statement and the letter of transmittal which shall be
an exhibit thereto;

     (ii) accept for exchange all Securities properly tendered pursuant to the
Private Exchange;

     (iii) deliver to the Trustee for cancellation all Registrable Securities so
accepted for exchange; and

     (iv) cause the Trustee promptly to authenticate and deliver Exchange
Securities or Private Exchange Securities, as the case may be, to each Holder of
Registrable Securities so accepted for exchange in a principal amount equal to the
principal amount of the Registrable Securities of such Holder so accepted for
exchange.

          Interest on each Exchange Security and Private Exchange Security will accrue from the last
date on which interest was paid on the Registrable Securities surrendered in exchange therefor
or, if no interest has been paid on the Registrable Securities, from the date of original
issuance. The Exchange Offer and the Private Exchange shall not be subject to any conditions,
other than (i) that the Exchange Offer or the Private Exchange, or the making of any exchange by
a Holder, does not violate applicable law or any applicable interpretation of the staff of the
SEC, (ii) the due tendering of Registrable Securities in accordance with the
Exchange Offer and the Private Exchange, (iii) that each Holder of Registrable Securities
exchanged in the Exchange Offer shall have represented that: (A) it is not an affiliate (as

6

 

defined in Rule 405 under the 1933 Act) of the Company; (B) all Exchange Securities to be
received by it shall be acquired in the ordinary course of its business; (C) at the time of the
consummation of the Exchange Offer it shall have no arrangement or understanding with any person
to participate in the distribution (within the meaning of the 1933 Act) of the Exchange
Securities; and (D) if such Holder is a Participating Broker-Dealer, it will receive Exchange
Securities for its own account in exchange for Registrable Securities that were acquired as a
result of market-making activities or other trading activities and that it will deliver a
prospectus in connection with any resale of such Exchange Securities; and such Holder shall have
made such other representations as may be reasonably necessary under applicable SEC rules,
regulations or interpretations to render the use of Form S-4 or other appropriate form under the
1933 Act available and (iv) that no action or proceeding shall have been instituted or threatened
in any court or by or before any governmental agency with respect to the Exchange Offer or the
Private Exchange which, in the Company’s judgment, would reasonably be expected to impair the
ability of the Company to proceed with the Exchange Offer or the Private Exchange. The Company
shall inform the Initial Purchaser of the names and addresses of the Holders to whom the Exchange
Offer is made, and the Initial Purchaser shall have the right to contact such Holders and
otherwise facilitate the tender of Registrable Securities in the Exchange Offer.

          2.2 Shelf Registration. (i) If, because of any changes in law, SEC rules or
regulations or applicable interpretations thereof by the staff of the SEC, the Company is not
permitted to effect the Exchange Offer as contemplated by Section 2.1 hereof, (ii) if for any
other reason the Exchange Offer Registration Statement is not declared effective within 180 days
following the filing of the Exchange Offer Registration Statement or the Exchange Offer is not
consummated within 210 days after the filing of the Exchange Offer Registration Statement, (iii)
upon the request the Initial Purchaser with respect to Registrable Securities held by the Initial
Purchaser that are not eligible to be exchanged for Exchange Securities in the Exchange Offer or
(iv) if a Holder is not permitted by applicable law to participate in the Exchange Offer or
elects to participate in the Exchange Offer but does not receive fully tradeable Exchange
Securities pursuant to the Exchange Offer, then in case of each of clauses (i) through (iv) the
Company shall, at its cost:

     (a) as promptly as practicable, file with the SEC, and thereafter shall use
commercially reasonable efforts to cause to be declared effective as promptly as
practicable but no later than 180 days after the filing of the Exchange Offer
Registration Statement, a Shelf Registration Statement relating to the offer and
sale of the Registrable Securities by the Holders from time to time in accordance
with the methods of distribution elected by the Majority Holders participating in
the Shelf Registration and set forth in such Shelf Registration Statement.

     (b) use commercially reasonable efforts to keep the Shelf Registration
Statement continuously effective in order to permit the Prospectus forming part
thereof to be usable by Holders for a period of two years from the date of the
original issue of the Securities, or for such shorter period that will terminate
when all Registrable Securities covered by the Shelf Registration Statement have
been sold pursuant to the Shelf Registration Statement or cease to be outstanding or

7

 

otherwise to be Registrable Securities (the “Effectiveness Period”); provided,
however, that the Effectiveness Period in respect of the Shelf Registration
Statement shall be extended to the extent required to permit dealers to comply with
the applicable prospectus delivery requirements under the 1933 Act and as otherwise
provided herein.

     (c) notwithstanding any other provisions hereof, use commercially reasonable
efforts to ensure that (i) any Shelf Registration Statement and any amendment
thereto and any Prospectus forming part thereof and any supplement thereto complies
in all material respects with the 1933 Act and the rules and regulations thereunder,
(ii) any Shelf Registration Statement and any amendment thereto does not, when it
becomes effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) any Prospectus forming part of any Shelf
Registration Statement, and any supplement to such Prospectus (as amended or
supplemented from time to time), does not include an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading.

          The Company shall not permit any securities other than Registrable Securities to be included
in the Shelf Registration Statement. The Company further agrees, if necessary, to supplement or
amend the Shelf Registration Statement, as required by Section 3(b) below, and to furnish to the
Holders of Registrable Securities copies of any such supplement or amendment promptly after its
being used or filed with the SEC. Notwithstanding the foregoing, this Section 2.2 shall not
apply if the Company determines, in its reasonable judgment, upon advice of counsel, that the
continued effectiveness and usability of such Registration Statement would (i) require the
disclosure of material information, which the Company has a bona fide business reason for
preserving as confidential, or (ii) interfere with any financing, acquisition, corporate
reorganization or other material transaction involving the Company or any of its Affiliates (as
defined in the rules and regulations adopted under the Exchange Act); provided, however, that the
failure to keep the Registration Statement effective and usable for offer and sales of
Registrable Securities for such reasons shall last no longer than 30 days in any 12-month period
(whereafter Additional Interest (pursuant to Section 2.5) shall accrue and be payable), so long
as the Company promptly thereafter complies with the requirements of Section 3(j) hereof, if
applicable. Any such period during which the Company fails to keep the Registration Statement
effective and usable for offers and sales of Registrable Securities is referred to as a
“Suspension Period.” A Suspension Period shall commence on and include the date that the Company
gives notice that the Registration Statement is no longer effective or the Prospectus included
therein is no longer usable for offers and sales of Registrable Securities and shall end on the
earlier to occur of (i) date when each seller of Registrable Securities covered by such
Registration
Statement either receives the copies of the supplemented or amended Prospectus contemplated by
Section 3(j) hereof or is advised in writing by the Company that use of the Prospectus may be
resumed and (ii) the expiration of

8

 

the 30 days in any 12-month period during which one or more
Suspension Periods has been in effect.

          2.3 Expenses. The Company shall pay all Registration Expenses in connection with
the registration pursuant to Section 2.1 or 2.2. Each Holder shall pay all underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or disposition of such
Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

          2.4. Effectiveness. An Exchange Offer Registration Statement pursuant to Section 2.1
hereof or a Shelf Registration Statement pursuant to Section 2.2 hereof will not be deemed to have
become effective unless it has been declared effective by the SEC; provided, however, that if,
after it has been declared effective, the offering of Registrable Securities pursuant to an
Exchange Offer Registration Statement or a Shelf Registration Statement is interfered with by any
stop order, injunction or other order or requirement of the SEC or any other governmental agency or
court, such Registration Statement will be deemed not to have become effective during the period of
such interference, until the offering of Registrable Securities pursuant to such Registration
Statement may legally resume.

          2.5 Interest. The Indenture executed in connection with the Securities will provide
that in the event that (a) the Exchange Offer Registration Statement is not filed with the SEC on
or prior to the 360th calendar day following the date of original issue of the
Securities, (b) the Exchange Offer Registration Statement or a Shelf Registration Statement, if
applicable, has not been declared effective on or prior to the 180th calendar day
following the filing of the Exchange Offer Registration Statement or (c) the Exchange Offer is not
completed on or prior to the 210th calendar day following the filing of the Exchange
Offer Registration Statement (each such event referred to in clauses (a) through (c) above, a
“Registration Default”), the interest rate borne by the Securities shall be increased (“Additional
Interest”) by one-quarter of one percent per annum upon the occurrence of each Registration
Default, which rate will increase by one quarter of one percent each 90-day period that such
Additional Interest continues to accrue under any such circumstance, provided that the maximum
aggregate increase in the interest rate will in no event exceed one percent (1%) per annum. Upon
the cure of all Registration Defaults the accrual of Additional Interest will cease and the
interest rate will revert to the original rate.

          If the Shelf Registration Statement is declared effective but thereafter becomes unusable by
the Holders for any reason, for more than 30 consecutive days, then the interest rate borne by
the Securities will be increased by 0.25% per annum of the principal amount of the Securities for
the first 90-day period (or portion thereof) beginning on the 31st such date that such
Shelf Registration Statement ceases to be usable, which rate shall be increased by an additional
0.25% per annum of the principal amount of the Securities at the beginning of each subsequent
90-day period, provided that the maximum aggregate increase in the interest rate will in no event
exceed one percent (1%) per annum. Any amounts payable under this paragraph shall also be deemed
“Additional Interest” for purposes of this Agreement. Upon the Shelf
Registration Statement once again becoming usable, the interest rate borne by the Securities will
be reduced to the original interest rate if the Company is otherwise in

9

 

compliance with this
Agreement at such time. Additional Interest shall be computed based on the actual number of days
elapsed in each 90-day period in which the Shelf Registration Statement is unusable.

          The Company shall notify the Trustee within three business days after each and every date on
which an event occurs in respect of which Additional Interest is required to be paid (an “Event
Date”). Additional Interest shall be paid by depositing with the Trustee, in trust, for the
benefit of the Holders of Registrable Securities, on or before the applicable semiannual interest
payment date, immediately available funds in sums sufficient to pay the Additional Interest then
due. The Additional Interest due shall be payable on each interest payment date to the record
Holder of Securities entitled to receive the interest payment to be paid on such date as set
forth in the Indenture. Each obligation to pay Additional Interest shall be deemed to accrue
from and including the day following the applicable Event Date.

          2.6 Issuer Free Writing Prospectuses. The Company represents that any Issuer Free
Writing Prospectus will not include any information that conflicts with the information contained
in the Shelf Registration Statement or the Prospectus and, any Issuer Free Writing Prospectus,
when taken together with the information in the Shelf Registration Statement and the Prospectus,
will not include any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading.

          3. Registration Procedures.

          In connection with the obligations of the Company with respect to Registration Statements
pursuant to Sections 2.1 and 2.2 hereof, the Company shall:

          (a) prepare and file with the SEC a Registration Statement, within the relevant time period
specified in Section 2, on the appropriate form under the 1933 Act, which form (i) shall be
selected by the Company, (ii) shall, in the case of a Shelf Registration, be available for the
sale of the Registrable Securities by the selling Holders thereof, (iii) shall comply as to form
in all material respects with the requirements of the applicable form and include or incorporate
by reference all financial statements required by the SEC to be filed therewith or incorporated
by reference therein, and (iv) shall comply in all respects with the requirements of Regulation
S-T under the 1933 Act, and use commercially reasonable efforts to cause such Registration
Statement to become effective and remain effective in accordance with Section 2 hereof;

          (b) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary under applicable law to keep such Registration
Statement effective for the applicable period; and cause each Prospectus to be supplemented by
any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or
any similar provision then in force) under the 1933 Act and comply with the provisions of the
1933 Act, the 1934 Act and the rules and regulations thereunder
applicable to them with respect to the disposition of all securities covered by each Registration

10

 

Statement during the applicable period in accordance with the intended method or methods of
distribution by the selling Holders thereof (including sales by any Participating Broker-Dealer);

          (c) in the case of a Shelf Registration, (i) notify each Holder of Registrable Securities,
promptly after filing, that a Shelf Registration Statement with respect to the Registrable
Securities has been filed and advising such Holders that the distribution of Registrable
Securities will be made in accordance with the method selected by the Majority Holders
participating in the Shelf Registration; (ii) furnish to each Holder of Registrable Securities
and to each underwriter of an underwritten offering of Registrable Securities, if any, without
charge, as many copies of each Prospectus, including each preliminary Prospectus, and any
amendment or supplement thereto and such other documents as such Holder or underwriter may
reasonably request, including financial statements and schedules, in order to facilitate the
public sale or other disposition of the Registrable Securities; and (iii) hereby consent to the
use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of
Registrable Securities in connection with the offering and sale of the Registrable Securities
covered by the Prospectus or any amendment or supplement thereto;

          (d) use commercially reasonable efforts to register or qualify the Registrable Securities
under all applicable state securities or “blue sky” laws of such jurisdictions as any Holder of
Registrable Securities covered by a Registration Statement and each underwriter of an
underwritten offering of Registrable Securities shall reasonably request by the time the
applicable Registration Statement is declared effective by the SEC, and do any and all other acts
and things which may be reasonably necessary or advisable to enable each such Holder and
underwriter to consummate the disposition in each such jurisdiction of such Registrable
Securities owned by such Holder; provided, however, that the Company shall not be required to (i)
qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would
not otherwise be required to qualify but for this Section 3(d), or (ii) take any action which
would subject it to general service of process or taxation in any such jurisdiction where it is
not then so subject;

          (e) notify promptly each Holder of Registrable Securities under a Shelf Registration or any
Participating Broker-Dealer who has notified the Company that it is utilizing the Exchange Offer
Registration Statement as provided in paragraph (f) below and, if requested by such Holder or
Participating Broker-Dealer, confirm such advice in writing promptly (i) when a Registration
Statement has become effective and when any post-effective amendments and supplements thereto
become effective, (ii) of any request by the SEC or any state securities authority for
post-effective amendments and supplements to a Registration Statement and Prospectus or for
additional information after the Registration Statement has become effective, (iii) of the
issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose,
(iv) in the case of a Shelf Registration, if, between the effective date of a Registration
Statement and the closing of any sale of Registrable Securities covered thereby, the
representations and warranties of the Company contained in any underwriting agreement, securities
sales agreement
or other similar agreement, if any, relating to the offering cease to be true and correct in all
material respects, (v) of the happening of any event or the

11

 

discovery of any facts during the
period a Shelf Registration Statement is effective which makes any statement made in such
Registration Statement or the related Prospectus untrue in any material respect or which requires
the making of any changes in such Registration Statement or Prospectus in order to make the
statements therein not misleading, (vi) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Securities or the Exchange
Securities, as the case may be, for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose and (vii) of any determination by the Company that a
post-effective amendment to such Registration Statement would be appropriate;

          (f) in the case of the Exchange Offer Registration Statement (i) include in the Exchange
Offer Registration Statement a section entitled “Plan of Distribution” which shall contain a
summary statement of the positions taken or policies made by the staff of the SEC with respect to
the potential “underwriter” status of any broker-dealer that holds Registrable Securities
acquired for its own account as a result of market-making activities or other trading activities
and that will be the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of
Exchange Securities to be received by such broker-dealer in the Exchange Offer, whether such
positions or policies have been publicly disseminated by the staff of the SEC or such positions
or policies represent the prevailing views of the staff of the SEC, including a statement that
any such broker-dealer who receives Exchange Securities for Registrable Securities pursuant to
the Exchange Offer may be deemed a statutory underwriter and must deliver a prospectus meeting
the requirements of the 1933 Act in connection with any resale of such Exchange Securities, (ii)
furnish to each Participating Broker-Dealer who has delivered to the Company the notice referred
to in Section 3(e), without charge, as many copies of each Prospectus included in the Exchange
Offer Registration Statement, including any preliminary prospectus, and any amendment or
supplement thereto, as such Participating Broker-Dealer may reasonably request, (iii) hereby
consent to the use of the Prospectus forming part of the Exchange Offer Registration Statement or
any amendment or supplement thereto, by any Person subject to the prospectus delivery
requirements of the SEC, including all Participating Broker-Dealers, in connection with the sale
or transfer of the Exchange Securities covered by the Prospectus or any amendment or supplement
thereto, and (iv) include in the transmittal letter or similar documentation to be executed by an
exchange offeree in order to participate in the Exchange Offer (x) the following provision:

“If the exchange offeree is a broker-dealer holding Registrable Securities acquired
for its own account as a result of market-making activities or other trading
activities, it will deliver a prospectus meeting the requirements of the 1933 Act in
connection with any resale of Exchange Securities received in respect of such
Registrable Securities pursuant to the Exchange Offer;” and

(y) a statement to the effect that by a broker-dealer making the acknowledgment described in
clause (x) and by delivering a Prospectus in connection with the exchange of Registrable
Securities, the broker-dealer will not be deemed to admit that it is an underwriter within the
meaning of the 1933 Act;

12

 

          (g) make every reasonable effort to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement at the earliest possible moment;

          (h) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities
and each underwriter, if any, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto, including financial statements and schedules
(without documents incorporated therein by reference and all exhibits thereto, unless requested);

          (i) in the case of a Shelf Registration, cooperate with the selling Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends; and enable such
Registrable Securities to be in such denominations (consistent with the provisions of the
Indenture) and registered in such names as the selling Holders or the underwriters, if any, may
reasonably request at least three business days prior to the closing of any sale of Registrable
Securities;

          (j) in the case of a Shelf Registration, upon the occurrence of any event or the discovery
of any facts, each as contemplated by Sections 3(e)(v) and 3(e)(vi) hereof, as promptly as
practicable after the occurrence of such an event, use commercially reasonable efforts to prepare
a supplement or post-effective amendment to the Registration Statement or the related Prospectus
or any document incorporated therein by reference or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities or Participating
Broker-Dealers, such Prospectus will not contain at the time of such delivery any untrue
statement of a material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading or will remain
so qualified. At such time as such public disclosure is otherwise made or the Company determines
that such disclosure is not necessary, in each case to correct any misstatement of a material
fact or to include any omitted material fact, the Company agrees promptly to notify each Holder
of such determination and to furnish each Holder such number of copies of the Prospectus as
amended or supplemented, as such Holder may reasonably request;

          (k) obtain a CUSIP number for all Exchange Securities, Private Exchange Securities or
Registrable Securities, as the case may be, not later than the effective date of a Registration
Statement, and provide the Trustee with printed certificates for the Exchange Securities, Private
Exchange Securities or the Registrable Securities, as the case may be, in a form eligible for
deposit with the Depositary;

          (l) (i) cause the Indenture to be qualified under the Trust Indenture Act of 1939 (the
“TIA”) in connection with the registration of the Exchange Securities or Registrable Securities,
as the case may be, (ii) cooperate with the Trustee and the Holders to effect such
changes to the Indenture as may be required for the Indenture to be so qualified in accordance
with the terms of the TIA and (iii) execute, and use commercially reasonable efforts to cause the
Trustee to execute, all documents as may be required to effect such changes, and all other

13

 

forms
and documents required to be filed with the SEC to enable the Indenture to be so qualified in a
timely manner;

          (m) in the case of a Shelf Registration, enter into customary and appropriate agreements
(including underwriting agreements) and take all other customary and appropriate actions in order
to expedite or facilitate the disposition of such Registrable Securities in such manner as the
Majority Holders elect and may reasonably request (including an underwritten offering) and in
such connection whether or not an underwriting agreement is entered into and whether or not the
registration is an underwritten registration:

     (i) make such representations and warranties to the Holders of such
Registrable Securities and the underwriters, if any, in form, substance and scope as
are customarily made by issuers to underwriters in similar underwritten offerings as
may be reasonably requested by them;

     (ii) obtain opinions of counsel to the Company and updates thereof (which
counsel and opinions (in form, scope and substance) shall be reasonably satisfactory
to the managing underwriters, if any, and the holders of a majority in principal
amount of the Registrable Securities being sold) addressed to each selling Holder
and the underwriters, if any, covering the matters customarily covered in opinions
requested in sales of securities or underwritten offerings and such other matters as
may be reasonably requested by such Holders and underwriters;

     (iii) obtain “cold comfort” letters and updates thereof from the Company’s
independent certified public accountants (and, if necessary, any other independent
certified public accountants of any subsidiary of the Company or of any business
acquired by the Company for which financial statements are, or are required to be,
included in the Registration Statement) addressed to the underwriters, if any, and
use commercially reasonable efforts to have such letter addressed to the selling
Holders of Registrable Securities (to the extent consistent with Statement on
Auditing Standards No. 72 of the American Institute of Certified Public Accounts),
such letters to be in customary form and covering matters of the type customarily
covered in “cold comfort” letters to underwriters in connection with similar
underwritten offerings;

     (iv) enter into a securities sales agreement with the Holders and an agent of
the Holders providing for, among other things, the appointment of such agent for the
selling Holders for the purpose of soliciting purchases of Registrable Securities,
which agreement shall be in form, substance and scope customary for similar
offerings;

     (v) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the
indemnification provisions and procedures set forth in Section 4 hereof with

14

 

respect
to the underwriters and all other parties to be indemnified pursuant to said Section
or, at the request of any underwriters, in the form customarily provided to such
underwriters in similar types of transactions; and

     (vi) deliver such documents and certificates as may be reasonably requested
and as are customarily delivered in similar offerings to the Holders of a majority
in principal amount of the Registrable Securities being sold and the managing
underwriters, if any.

The above shall be done at (i) the effectiveness of such Registration Statement (and each
post-effective amendment thereto) and (ii) each closing under any underwriting or similar
agreement as and to the extent required thereunder;

          (n) in the case of a Shelf Registration or if a Prospectus is required to be delivered by
any Participating Broker-Dealer in the case of an Exchange Offer, make available for inspection
by representatives of the Holders of the Registrable Securities, any underwriters participating
in any disposition pursuant to a Shelf Registration Statement, any Participating Broker-Dealer
and any counsel or accountant retained by any of the foregoing, all financial and other records,
pertinent corporate documents and properties of the Company reasonably requested by any such
persons, and cause the respective officers, directors, employees, and any other agents of the
Company to supply all information reasonably requested by any such representative, underwriter,
special counsel or accountant in connection with a Registration Statement, and make such
representatives of the Company available for discussion of such documents as shall be reasonably
requested by the Initial Purchaser;

          (o) in the case of a Shelf Registration, a reasonable time prior to filing any Shelf
Registration Statement, any Prospectus forming a part thereof, any amendment to such Shelf
Registration Statement or amendment or supplement to such Prospectus, provide copies of such
document to the Holders of Registrable Securities, to the Initial Purchaser, to counsel for the
Holders and to the underwriter or underwriters of an underwritten offering of Registrable
Securities, if any, make such changes in any such document prior to the filing thereof as the
Initial Purchaser, the counsel to the Holders or the underwriter or underwriters reasonably
request and not file any such document in a form to which the Majority Holders, the Initial
Purchaser on behalf of the Holders of Registrable Securities, counsel for the Holders of
Registrable Securities or any underwriter shall not have previously been advised and furnished a
copy of or to which the Majority Holders, the Initial Purchaser of behalf of the Holders of
Registrable Securities, counsel to the Holders of Registrable Securities or any underwriter shall
reasonably object within two business days after receipt thereof, and make the representatives of
the Company available for discussion of such document as shall be reasonably requested by the
Holders of Registrable Securities, the Initial Purchaser on behalf of such Holders, counsel for
the Holders of Registrable Securities or any underwriter and provide copies of any comment
letters received from the SEC or any other request by the SEC or any state securities authority
for amendments or supplements to a Registration Statement and Prospectus or for additional
information.

15

 

          (p) in the case of a Shelf Registration, use commercially reasonable efforts to cause all
Registrable Securities to be listed on any securities exchange on which similar debt securities
issued by the Company are then listed if requested by the Majority Holders, or if requested by
the underwriter or underwriters of an underwritten offering of Registrable Securities, if any;

          (q) in the case of a Shelf Registration, use commercially reasonable efforts to cause the
Registrable Securities to be rated by the appropriate rating agencies, if so requested by the
Majority Holders, or if requested by the underwriter or underwriters of an underwritten offering
of Registrable Securities, if any;

          (r) otherwise comply with all applicable rules and regulations of the SEC and make available
to its security holders, as soon as reasonably practicable, an earnings statement covering at
least 12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
thereunder; and

          (s) cooperate and assist in any filings required to be made with the NASD and, in the case
of a Shelf Registration, in the performance of any due diligence investigation by any underwriter
and its counsel (including any “qualified independent underwriter” that is required to be
retained in accordance with the rules and regulations of the NASD).

          If following the date hereof there has been a change in SEC policy with respect to exchange
offers such as the Exchange Offer, such that in the opinion of counsel to the Company or the
Holders there is a substantial question as to whether the Exchange Offer is permitted by applicable
federal law, the Company hereby agrees to seek a no-action letter or other favorable decision from
the SEC allowing the Company to consummate an Exchange Offer for the Notes. The Company hereby
agrees to pursue the issuance of such a decision to the SEC staff level and diligently pursuing a
resolution (which need not be favorable) by the SEC staff.

          In the case of a Shelf Registration Statement, the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities
to furnish to the Company such information regarding the Holder and the proposed distribution by
such Holder of such Registrable Securities as the Company may from time to time reasonably
request in writing.

          In the case of a Shelf Registration Statement, each Holder agrees that, upon receipt of any
notice from the Company of the happening of any event or the discovery of any facts, each of the
kind described in Section 3(e)(v) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 3(j) hereof, and, if so
directed by the Company, such Holder will deliver to the
Company (at its expense) all copies in such Holder’s possession, other than copies in permanent
files then in such Holder’s possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice.

16

 

          If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that
will manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless such Holder (a)
agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting arrangements.

          4. Indemnification; Contribution.

          (a) The Company agrees to indemnify and hold harmless the Initial Purchaser, each Holder, each
Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being
an “Underwriter”) and each Person, if any, who controls any Holder or Underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows:

          (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement (or any amendment or supplement thereto)
pursuant to which Exchange Securities or Registrable Securities were registered under the
1933 Act, including all documents incorporated therein by reference, or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to
make the statements therein not misleading, or arising out of any untrue statement or
alleged untrue statement of a material fact contained in any Prospectus (or any amendment
or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or
supplement thereto), the omission or alleged omission therefrom of a material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading;

          (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or
threatened, or of any claim whatsoever based upon any such untrue statement or omission, or
any such alleged untrue statement or omission; provided that (subject to Section 4(d)
below) any such settlement is effected with the written consent of the Company;

          (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by any indemnified party), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged

17

 

          untrue
statement or omission, to the extent that any such expense is not paid under subparagraph
(i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished
to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any
amendment or supplement thereto) or any Prospectus (or any amendment or supplement thereto);
provided further, that the Company shall not be liable under the indemnity agreement in this
subsection (a) with respect to any Registration Statement or Prospectus to the extent that any
such loss, claim, damage, liability or expense results from the fact that such Underwriter sold
Securities to a person as to whom there was not sent or given, at or prior to the written
confirmation of such sale, a copy of the effective Registration Statement or final Prospectus, as
then amended or supplemented, if the Company has previously furnished copies thereof in
sufficient quantity to such Underwriter and sufficiently in advance of such confirmation of sale
to allow for distribution by such time and the loss, claim, damage, liability or expense results
from an untrue statement or omission of a material fact contained in or omitted from the
Registration Statement or Prospectus which was corrected in the effective Registration Statement
or final Prospectus, as then amended or supplemented, and such correction would have cured the
defect giving rise to such loss, claim, damage, liability or expense.

          (b) Each Holder severally, but not jointly, agrees to indemnify and hold harmless the
Company, the Initial Purchaser, each Underwriter and the other selling Holders, and each of their
respective directors and officers, and each Person, if any, who controls the Company, the Initial
Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and
expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with
respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the
Shelf Registration Statement (or any amendment or supplement thereto) or any Prospectus included
therein (or any amendment or supplement thereto) in reliance upon and in conformity with written
information with respect to such Holder furnished to the Company by such Holder expressly for use
in the Shelf Registration Statement (or any amendment or supplement thereto) or such Prospectus
(or any amendment or supplement thereto); provided, however, that no such Holder shall be liable
for any claims hereunder in excess of the amount of net proceeds received by such Holder from the
sale of Registrable Securities pursuant to such Shelf Registration Statement.

          (c) Each indemnified party shall give written notice as promptly as reasonably practicable
to each indemnifying party of any action or proceeding commenced against it in respect of which
indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not
relieve such indemnifying party from any liability hereunder to the extent it is not materially
prejudiced as a result thereof and in any event shall not relieve it from any liability which it
may have otherwise than on account of this indemnity agreement. An indemnifying party shall be
entitled to appoint counsel of the indemnifying party’s choice at the

18

 

indemnifying party’s
expense to represent the indemnified party in any action for which indemnification is sought (in
which case the indemnifying party shall not thereafter be responsible for the fees and expenses
of any separate counsel retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be satisfactory to the indemnified party.
Notwithstanding the foregoing, the indemnified party shall have the right to employ its own
counsel in any such action and the indemnifying party shall bear the reasonable fees and
disbursements of such separate counsel, which shall be reimbursed promptly after receipt of a
bill therefore, if: (i) the employment of such counsel shall have been specifically authorized
in writing by the indemnifying party, (ii) the indemnifying party shall have failed to assume the
defense and employ counsel to represent the indemnified party within a reasonable time but no
later than 7 days after notice of the institution of such action or (iii) the named parties to
any such action (including any impleaded parties) include both such indemnified party and the
indemnifying party and such indemnified party shall have been advised by such counsel that there
may be one or more legal defenses available to it which are different from or additional to those
available to the indemnifying party. In no event shall the indemnifying parties be liable for
fees and expenses of more than one counsel (in addition to any local counsel), which firm shall
be designated in writing by the indemnified parties, separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or related actions
in the same jurisdiction arising out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the indemnified parties (which
consent shall not be unreasonably withheld or delayed), settle or compromise or consent to the
entry of any judgment with respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution is being sought under this Section 4(e) hereof (whether or not
the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to act by or on
behalf of any indemnified party. Except as provided below in Section 4(d), no indemnified party
shall, without the prior written consent of the indemnifying parties (which consent shall not be
unreasonably withheld or delayed), settle or compromise or consent to the entry of any judgment
with respect to any litigation, or any investigation or proceeding by an governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which indemnification or
contribution is being sought under this Section 4 (whether or not the indemnified parties are
actual or potential parties thereto).

          (d) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii)
effected without its written consent if (i) such settlement is entered into more than 45 days
after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party
shall have received written notice of the terms of such settlement at least 30 days prior to such
settlement being entered into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request for fees and expenses of counsel prior to the
date of such settlement.

19

 

          (e) If the indemnification provided for in this Section 4 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and the Holders and the Initial Purchaser on the other hand in
connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

     The relative fault of the Company on the one hand and the Holders and the Initial Purchaser on
the other hand shall be determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company, the Holders or the Initial Purchaser and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

     The Company, the Holders and the Initial Purchaser agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable considerations referred
to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified party in
investigating, preparing or defending against any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue or alleged untrue statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 4, the Initial Purchaser shall not be required
to contribute any amount in excess of the amount by which the total price at which the Securities
sold by it were offered exceeds the amount of any damages which the Initial Purchaser has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section 4, each Person, if any, who controls the Initial Purchaser or
Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have
the same rights to contribution as the Initial Purchaser or Holder, and each director of the
Company, and each Person, if any, who controls the Company within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the
Company. The Initial Purchaser’s obligation to contribute pursuant to this Section 4 are several
in proportion to the principal amount of Securities set forth opposite their respective names in
Schedule A to the Purchase Agreement and not joint.

20

 

          5. Miscellaneous.

          5.1 Rule 144 and Rule 144A. For so long as the Company is subject to the reporting
requirements of Section 13 or 15 of the 1934 Act, the Company covenants that it will file the
reports required to be filed by it under the 1933 Act and Section 13(a) or 15(d) of the 1934 Act
and the rules and regulations adopted by the SEC thereunder. If the Company ceases to be so
required to file such reports, the Company covenants that it will upon the request of any Holder
of Registrable Securities (a) make publicly available such information as is necessary to permit
sales pursuant to Rule 144 under the 1933 Act, and (b) deliver such information to a prospective
purchaser as is necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will
take such further action as any Holder of Registrable Securities may reasonably request. Upon
the reasonable request of any Holder of Registrable Securities, the Company will deliver to such
Holder a written statement as to whether it has complied with such reporting requirements.

          5.2 No Inconsistent Agreements. The Company has not entered into and the Company
will not after the date of this Agreement enter into any agreement which is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts
with the provisions hereof. The rights granted to the Holders hereunder do not and will not for
the term of this Agreement in any way conflict with the rights granted to the holders of the
Company’s other issued and outstanding securities under any such agreements.

          5.3 Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given unless the Company has
obtained the written consent of Holders of at least a majority in aggregate principal amount of
the outstanding Registrable Securities affected by such amendment, modification, supplement,
waiver or departure.

          5.4 Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, registered first-class mail, telex,
telecopier, or any courier guaranteeing overnight delivery (a) if to a Holder, at the most
current address given by such Holder to the Company by means of a notice given in accordance with
the provisions of this Section 5.4, which address initially is the address set forth in the
Purchase
Agreement with respect to the Initial Purchaser; and (b) if to the Company, initially at the
Company’s address set forth in the Purchase Agreement, and thereafter at such other address of
which notice is given in accordance with the provisions of this Section 5.4.

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two business days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt is acknowledged, if
telecopied; and on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

21

 

          Copies of all such notices, demands, or other communications shall be concurrently delivered
by the person giving the same to the Trustee under the Indenture, at the address specified in
such Indenture.

          5.5 Successor and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided
that nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture. If
any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities such person shall
be conclusively deemed to have agreed to be bound by and to perform all of the terms and
provisions of this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and the Indenture, and such person shall be entitled
to receive the benefits hereof.

          5.6 Third Party Beneficiaries. The Initial Purchaser (even if the Initial Purchaser
is not a Holder of Registrable Securities) shall be third party beneficiaries to the agreements
made hereunder between the Company, on the one hand, and the Holders, on the other hand, and
shall have the right to enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights or the rights of Holders hereunder. Each Holder
of Registrable Securities shall be a third party beneficiary to the agreements made hereunder
between the Company, on the one hand, and the Initial Purchaser, on the other hand, and shall
have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

          5.7. Specific Enforcement. Without limiting the remedies available to the Initial
Purchaser and the Holders, the Company acknowledges that any failure by the Company to comply
with its obligations under Sections 2.1 and 2.2 hereof may result in material irreparable injury
to the Initial Purchaser or the Holders for which there is no adequate remedy at law, that it
would not be possible to measure damages for such injuries precisely and that, in the event of
any such failure, the Initial Purchaser or any Holder may obtain such relief as may be required
to specifically enforce the Company’s obligations under Sections 2.1 and 2.2 hereof.

          5.8 Counterparts. This Agreement may be executed in any number of counterparts
and by the 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 one and the same
agreement.

          5.9 Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

22

 

          5.10 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS
THEREOF TO THE EXTENT THAT APPLICATION THEREOF WOULD PROVIDE FOR THE APPLICATION OF THE
SUBSTANTIVE LAWS OF ANOTHER JURISDICTION.

          5.11 Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions contained herein shall not be affected or impaired
thereby.

          5.12 Entire Agreement. This Agreement represents the entire agreement among the
parties hereto with respect to the subject matter hereof and supercedes and replaces any and all
prior agreements and understandings, whether oral or written, with respect thereto.

23

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	STONE ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Kent Pierret	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: J. Kent Pierret	 	 
	 

	 	 	 	Title: Senior Vice President –
Chief Accounting Officer and Treasurer	 	 
	 

	 	 	 	 	 	 

Agreed and accepted as

of the date first above

written:

	 	 	 	 	 
	BANC OF AMERICA SECURITIES LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lex Maultsby	 	 
	 

	 	 	 	 
	 

	 	Name: Lex Maultsby	 	 
	 

	 	Title: Managing Directorexv10w1

 

Exhibit 10.1

TD AMERITRADE HOLDING CORPORATION

JOSEPH H. MOGLIA EMPLOYMENT AGREEMENT

     This Agreement was originally entered into as of May 19, 2006, by and between TD Ameritrade
Holding Corporation (the “Company”) and Joseph H. Moglia (“Executive”), and is hereby amended
effective as of June 23, 2006.

     1. Duties and Scope of Employment.

          (a) Positions and Duties. As of May 19, 2006 (the “Effective Date”), Executive will
serve as Chief Executive Officer, reporting to the Company’s Board of Directors (the “Board”). The
period Executive is employed by the Company under this Agreement is referred to herein as the
“Employment Term”.

          (b) Board Membership. Executive was appointed to serve as a member of the Board prior
to the Effective Date. During the Employment Term, at each annual meeting of the Company’s
stockholders at which Executive’s term as a member of the Board has otherwise expired, the Company
will nominate Executive to serve as a member of the Board. Executive’s service as a member of the
Board will be subject to any required stockholder approval. Upon the termination of Executive’s
employment for any reason, unless otherwise requested by the Board and agreed to by Executive,
Executive will be deemed to have resigned from the Board (and any boards of subsidiaries)
voluntarily, without any further required action by Executive, as of the end of Executive’s
employment and Executive, at the Board’s request, will execute any reasonable documents necessary
to reflect his resignation.

          (c) Obligations. During the Employment Term, Executive will devote Executive’s full
business efforts and time to the Company and will use good faith efforts to discharge Executive’s
obligations under this Agreement to the best of Executive’s ability and in accordance with each of
the Company’s corporate guidance and ethics guidelines, conflict of interests policies and code of
conduct. For the duration of the Employment Term, Executive agrees not to actively engage in any
other employment, occupation, or consulting activity for any direct or indirect remuneration
without the prior approval of the Audit Committee of the Board (which approval will not be
unreasonably withheld); provided, however, that Executive may, without the approval of the Audit
Committee of the Board, serve in any capacity with any civic, educational, or charitable
organization, provided such services do not interfere (other than in an insubstantial manner) with
Executive’s obligations to Company. Executive expects to serve as a member of the Board of
Directors of AXA Financial, Inc. and of its subsidiary, The Equitable Life Assurance Society of the
U.S., and the parties agree that such service will not constitute a violation of this Section 1(c).

               (i) Executive hereby represents and warrants to the Company that Executive is not party to any
contract, understanding, agreement or policy, written or otherwise, that would be breached by
Executive’s entering into, or performing services under, this Agreement. Executive further
represents that he has disclosed to the Company all threatened, pending, or actual claims that are
unresolved and still outstanding as of the Effective Date, in each case, against Executive of which
he is aware, if any, as a result of his employment with his previous employer or his membership on any boards of directors (other than the Board or its affiliates,
predecessors or subsidiaries).

 

 

          (d) Other Entities. Executive agrees to serve, without additional compensation, as an
officer and director for each of the Company’s subsidiaries, partnerships, joint ventures, limited
liability companies and other affiliates, including entities in which the Company has a significant
investment as determined by the Company. As used in this Agreement, the term “affiliates” will
include any entity controlled by, controlling, or under common control of the Company. The parties
agree that the indemnification, contribution and insurance rights of Executive referenced in
Section 12 will also apply to Executive’s activities under this Section 1(d).

     2. At-Will Employment. Executive and the Company agree that Executive’s employment
with the Company constitutes “at-will” employment. Executive and the Company acknowledge that this
employment relationship may be terminated at any time, upon written notice to the other party, with
or without good cause or for any or no cause, at the option either of the Company or Executive.
However, as described in this Agreement, Executive may be entitled to severance and other payments
and benefits depending upon the circumstances of Executive’s termination of employment.

     3. Term of Agreement. This Agreement will have a total term of five (5) years (the
“Term of the Agreement”). The Term of the Agreement will be divided into two periods, with an
initial period of three (3) years commencing on the Effective Date (the “Initial Term”) and an
additional two (2) year period (the “Additional Term”) commencing upon the completion of the
Initial Term. On the third anniversary of the Effective Date, this Agreement automatically will
renew for the Additional Term unless either party provides the other party with written notice of
non-renewal at least sixty (60) days prior to the date of automatic renewal.

     4. Compensation.

          (a) Base Salary. As of March 1, 2006, the Company will pay Executive an annual salary
of $1,000,000 as compensation for his services (such annual salary, as is then effective, to be
referred to herein as “Base Salary”). The Base Salary will be paid periodically in accordance with
the Company’s normal payroll practices and be subject to the usual, required withholdings.

          (b) Annual Incentive. With respect to each full fiscal year during the Employment
Term, Executive will be eligible to participate in the Ameritrade Holding Corporation Management
Incentive Plan (“MIP”), pursuant to which Executive will be eligible to earn an annual incentive
award (the “Annual Incentive”) based upon the achievement of applicable performance criteria
established in good faith by the Board within the first ninety (90) days of each fiscal year during
the Employment Term and communicated in writing to Executive within such ninety (90) day period.
Each Annual Incentive will have a target value of $3,000,000 (the “Target”).

          (c) Equity Awards. During the Employment Term, Executive will be eligible to
participate in the Ameritrade Holding Corporation 1996 Long-Term Incentive Plan (the “LTIP”).

               (i) Special Grant. On March 10, 2006, Executive was granted a special award under the
LTIP of 580,550 performance restricted share units (the “Special Grant”). The Special Grant will
be scheduled to vest and be settled in accordance with the performance criteria and vesting
schedule set forth on Exhibit B of the applicable Special Grant Award Agreement.

-2-

 

Notwithstanding the foregoing, this Special Grant was made contingent upon Executive and
Company executing this Agreement by May 23, 2006. In the event this Agreement is not executed by
Executive and the Company by May 23, 2006, Executive will forfeit the Special Grant.

               (ii) Annual Award. With respect to each full fiscal year during the Employment Term,
Executive will be eligible for an award under the LTIP of performance restricted share units with a
target value, determined by the Company pursuant to a reasonable and uniform methodology, equal to
$6,000,000 on the date of grant (the “Annual Award”), 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.

               (iii) Should any conflict or inconsistency exist between the terms of this Agreement and the
terms of the Special Grant or the Annual Award, the terms of this Agreement will prevail.

     5. Employee Benefits.

          (a) Generally. Executive will be eligible to participate in accordance with the
terms of all Company employee benefit plans, policies and arrangements that are applicable to other
executive officers of the Company, as such plans, policies and arrangements may exist from time to
time.

          (b) Airplane Travel. When traveling on Company-related business, Executive will be
entitled to fly on private aircraft, at the sole expense of the Company.

     6. Expenses. The Company will reimburse Executive for reasonable travel,
entertainment and other expenses incurred by Executive in the furtherance of the performance of
Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy with
respect to all executive officers of the Company as in effect from time to time.

     7. Termination of Employment. In the event Executive’s employment with the Company
terminates for any reason, Executive will be entitled to any (a) unpaid Base Salary accrued up to
the effective date of termination, (b) unpaid, but earned, Annual Incentive for any completed
fiscal year as of his termination of employment, (c) pay for accrued but unused vacation, (d)
benefits or compensation as provided under the terms of any employee benefit and compensation
agreements or plans applicable to Executive, (e) unreimbursed business expenses required to be
reimbursed to Executive, (f) rights to indemnification and contribution Executive may have under
the Company’s Articles of Incorporation, Bylaws, the Agreement, or separate indemnification
agreement, as applicable, and (g) payments and reimbursements under Sections 10 and 17 hereof. The
payments and benefits set forth in this Section 7 will be in addition to the applicable payments
and benefits set forth in Section 8.

-3-

 

     8. Severance.

          (a) Termination Without Cause, Resignation for Good Reason, or Company Notification of
Non-Renewal During the Initial Term. If during the Initial Term Executive’s employment is
terminated by the Company without Cause, if Executive resigns for Good Reason, or if the Company
notifies Executive of its intent not to renew the Agreement for the Additional Term, then, subject
to Sections 9 and 10, and in addition to the payments in Section 7, Executive will receive: (i)
continued payment of Base Salary for the Severance Period in accordance with the Company’s normal
payroll policies; (ii) continued payment of Executive’s Annual Incentive at the target level
applicable during the fiscal year of Executive’s termination for a period of time equal to the
Severance Period in accordance with the Company’s normal payroll policies with the form of such
payout identical to that received by the other participants in the MIP for such year; (iii) the
current fiscal year’s Annual Incentive pro-rated to the date of termination, with such pro-rated
amount to be payable within thirty (30) days after termination and calculated by multiplying the
current fiscal year’s target incentive compensation 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 the form of such payout identical to that received by the other
participants in the MIP for such year; (iv) the payment in cash of the value (i.e., $6,000,000 per
year) of any Annual Awards scheduled to be granted to Executive (but not yet so granted) during the
Initial Term, payable within thirty (30) days after such termination; and (v) performance
restricted share units granted under the LTIP as part of any Annual Awards or the Special Grant
will be fully earned and the actual number of performance restricted share units which will be
considered vested (in addition to those which vested in accordance with their terms) will be
determined (1) by actual performance for any completed performance period through the date of
Executive’s termination and (2) as if actual performance equaled target performance, as specified
in the applicable Award Agreement, for any incomplete or remaining performance periods after
Executive’s termination. The vested performance restricted share units will be settled in shares
of Company common stock on the original settlement date as forth in the Award Agreement (without
regard to such termination).

          (b) Termination Without Cause or Resignation for Good Reason During the Additional
Term. If during the Additional Term Executive’s employment is terminated by the Company
without Cause or if Executive resigns for Good Reason, then, subject to Sections 9 and 10, and in
addition to the payments in Section 7, Executive will receive: (i) continued payment of Base Salary
for the Severance Period in accordance with the Company’s normal payroll policies; (ii) continued
payment of Executive’s Annual Incentive at the target level applicable during the fiscal year of
Executive’s termination for a period of time equal to the Severance Period in accordance with the
Company’s normal payroll policies with the form of such payout identical to that received by the
other participants in the MIP for such year; (iii) the current fiscal year’s Annual Incentive
pro-rated to the date of termination, with such pro-rated amount to be payable within thirty (30)
days after such termination and calculated by multiplying the current fiscal year’s target
incentive compensation 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 the form
of such payout identical to that received by the other participants in the MIP for such year; (iv)
the payment in cash, payable within thirty (30) days after such termination, of the value (i.e.,
$6,000,000 per year) of any Annual Awards scheduled to be granted to Executive (but not yet so
granted) during the Additional Term; and (v) performance restricted share units granted under the
LTIP as part of any Annual Awards will be fully earned and the actual number of performance
restricted share units which will be considered vested

-4-

 

(in addition to those which vested in accordance with their terms) will be determined (1) by
actual performance for any completed performance period through the date of Executive’s termination
and (2) as if actual performance equaled target performance, as specified in the applicable Award
Agreement, for any incomplete or remaining performance periods after Executive’s termination. The
vested performance restricted share units will be settled in shares of Company common stock on the
original settlement date as forth in the Award Agreement (without regard to such termination).

          (c) Termination Without Cause or Resignation for Good Reason During the Term of the
Agreement in Connection with a Change of Control. If during the Term of the Agreement
Executive’s employment is terminated by the Company without Cause or if Executive resigns for Good
Reason or the Company elects not to renew the Agreement for the Additional Term and such
termination or non-renewal is in Connection with a Change of Control, then, subject to Sections 9
and 10, and in addition to the payments in Section 7, Executive will receive in lieu of the
benefits described in Sections 8(a) and (b): (i) continued payment of Base Salary for three (3)
years after such termination, payable in accordance with the Company’s normal payroll policies;
(ii) continued payment of Executive’s Annual Incentive at the target level applicable during the
fiscal year of Executive’s termination for three (3) years after such termination, payable in
accordance with the Company’s normal payroll policies with the form of such payout identical to
that received by the other participants in the MIP for such year; (iii) the current fiscal year’s
Annual Incentive pro-rated to the date of termination, with such pro-rated amount to be payable
within thirty (30) days after such termination and calculated by multiplying the current fiscal
year’s target incentive compensation 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 the form of such payout identical to that received by the other participants in the MIP
for such year; (iv) the payment in cash of the value (i.e., $18,000,000) of three (3) years of
Annual Awards, payable within thirty (30) days after such termination; and (v) performance
restricted share units granted under the LTIP as part of any Annual Awards or the Special Grant
will be fully earned and the actual number of performance restricted share units which will be
considered vested (in addition to those which vested in accordance with their terms) will be
determined (1) by actual performance for any completed performance period through the date of
Executive’s termination and (2) as if actual performance equaled target performance, as specified
in the applicable Award Agreement, for any incomplete or remaining performance periods after
Executive’s termination. The vested performance restricted share units will be settled in shares
of Company common stock on the original settlement date as forth in the Award Agreement (without
regard to such termination).

          (d) Termination Without Cause, Resignation for Good Reason During the Term of the
Agreement, Voluntary Termination Upon the Completion of the Initial Term, Voluntary Termination
During the Additional Term, or the Company’s Non-Renewal of the Agreement for the Additional
Term. If Executive (i) is terminated without Cause during the Term of the Agreement, (ii)
resigns for Good Reason during the Term of the Agreement, (iii) voluntarily terminates his
employment upon the completion of the Initial Term, (iv) voluntarily terminates his employment
during the Additional Term (other than a termination in which Executive does not provide the
Company with sixty (60) days advance written notice of his termination), or (v) if the Company
elects not to renew the Agreement for the Additional Term, then, in addition to any other payments
or benefits described in the applicable sections (including Section 7 and the other applicable
paragraphs of this Section 8) of this Agreement, Executive will receive at the sole expense of the
Company: (i) an office at Company headquarters or at a location of Executive’s choosing with the
cost and size of such office to be

-5-

 

reasonably determined by the Audit Committee of the Board, for a period of five (5) years
following the date of Executive’s termination; (ii) an experienced full-time personal executive
assistant employed by the Company and covered by the Company’s benefits plans as in effect from
time to time, for a period of five (5) years following the date of Executive’s termination with
such expense to the Company to be reasonably determined by the Audit Committee of the Board and
Executive; (iii) post-retirement medical coverage for Executive, his spouse and Executive’s
eligible dependents under the Company’s benefit plans for the life of Executive, or for the life of
Executive’s spouse if she survives Executive, with such coverage to be secondary to Executive’s
Medicare benefits, with such benefits to be comparable to the terms of all Company medical plans,
policies and arrangements that are applicable to other executive officers of the Company (except
that Executive’s spouse will also receive coverage for the remainder of her life), as such plans,
policies and arrangements may exist from time to time, and (iv) use of a private aircraft when
traveling at the Company’s request.

          (e) Voluntary Termination Without Good Reason During the Initial Term. If Executive
voluntarily terminates his employment without Good Reason during the Initial Term, then, except as
provided in Section 7, (i) Executive will forfeit his Annual Incentive award for the fiscal year in
which the termination occurs, and (ii) Executive will forfeit all unvested performance restricted
share units previously granted as part of the Special Grant or any Annual Awards under the LTIP.

          (f) Voluntary Termination During the Additional Term. In addition to the payments and
benefits in Section 7 and Section 8(d), if Executive voluntarily terminates his employment during
the Additional Term for any reason (for avoidance of doubt, not including a termination by the
Company for Cause or termination by Executive for Good Reason), then, subject to Sections 9 and 10
and subject to Executive providing the Board with written notice of his resignation at least sixty
calendar (60) days prior to the date of termination, any Annual Awards granted under the LTIP will
be considered earned and will continue to vest as if actual performance equaled target performance
and will be settled according to the original settlement date as set forth in the Award Agreement
(without regard to any such termination).

          (g) Termination due to Death or Disability. In the event of a termination of
Executive’s employment during the Employment Term due to death or Disability, then, subject to
Sections 9 and 10, and in addition to the payments in Section 7, Executive will be entitled to
receive (i) 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 fiscal year’s target incentive
compensation 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, and (ii)
performance restricted share units granted under the LTIP as part of any Annual Awards or the
Special Grant will be governed by the applicable (death or disability) provision of the Award
Agreement.

     9. Conditions to Receipt of Severance; No Duty to Mitigate.

          (a) Separation Agreement and Release of Claims. The receipt of any severance pursuant
to Section 8 will be subject to Executive signing and not revoking a separation and release of
claims agreement in substantially the form attached as Exhibit A, but with any appropriate
reasonable modifications, reflecting changes in applicable law, as is necessary to provide the
Company with the protection it would have if the release were executed as of the Effective Date.
No

-6-

 

severance will be paid or provided until the separation agreement and release agreement
becomes effective. The Company agrees that it will execute and deliver to Executive said
separation and release of claims agreement no later than eight (8) days after it receives a copy of
such agreement executed by Executive. Company agrees that it will be bound by such separation and
release of claims agreement and that same will become effective from and after the “Effective Date”
thereof (as defined in Section 28 of such separation and release of claims agreement), even if
Company fails or refuses to execute and deliver same to Executive.

          (b)  Non-solicitation and Non-competition. The receipt of any severance pursuant to
Section 8 will be subject to, during the Employment Term and the Restricted Period, Executive not
(without the written consent of the Board) engaging or participating in any business within any
state in the United States where the Company conducts business (as an owner, partner, stockholder,
holder of any other equity interest, or financially as an investor or lender, or in any capacity
calling for the rendition of personal services or acts of management, operation or control) which
is engaged in any activities or business competitive with any of the primary businesses conducted
by the Company or any of its Affiliates (as defined below). For purposes of this Agreement, the
term “primary businesses” is defined as an on-line brokerage business, including active trader and
long term investor client segments, and also includes any other business conducted by the Company
at the date of termination (unless such business is de minimis as compared to the on-line brokerage
business) and any such other business formally proposed (and considered at a meeting of the Board)
to be conducted by the Company or any of its Affiliates during the twelve (12) month period prior
to the date of termination (collectively a “Competitive Business”). Provided that this restriction
will not restrict Executive from being employed by or consulting with a business, firm,
corporation, partnership or other entity that owns or operates an on-line brokerage, provided that
(i) the on-line brokerage business is de minimis as compared to its core business in terms of
revenue and/or resources, and (ii) Executive’s involvement with the company excludes, directly or
indirectly, the on-line brokerage business during the Restriction Period. For purposes of this
Section 9, a business shall be considered “de minimis” if (i) its revenues constitute less than 10%
of the total revenues of the entity, (ii) the employees working in the business comprise less than
10% of the total employees of the entity and (iii) the marketing spent for the business is less
than 10% of the total marketing spent of the entity, in each case on a consolidated basis.
Notwithstanding the foregoing, Executive may own securities of a Competitive Business so long as
the securities of such corporation or other entity are listed on a national securities exchange or
on the NASDAQ National Market and the securities owned directly or indirectly by Executive do not
represent more than 2% of the outstanding securities of such corporation or other entity;

               (i) During the Restricted Period, neither Executive, nor any business in which Executive may
engage or participate in, will directly or indirectly, (A) knowingly induce any customer or vendor
of the Company or of corporations or businesses which directly or indirectly are controlled by the
Company (collectively, the “Affiliates”) to patronize any Competitive Business; (B) knowingly
request or advise any customer or vendor to withdraw, curtail or cancel such customer’s or vendor’s
business with the Company or any of its Affiliates; or (C) compete with the Company or any of its
Affiliates in merging with or acquiring any other company or business (whether by a purchase of
stock or other equity interests, or a purchase of assets or otherwise) which is a Competitive
Business. Subsection (A) above will not apply to a customer or vendor that was already a customer
or vendor of the Competitive Business at the time Executive’s employment with the Company is
terminated, and will only apply to vendors that supply products or services that are

-7-

 

by their nature specialized and significant to the Company in relation to any of the primary
businesses of the Company at the time of termination.

               (ii) During the Restricted Period, neither Executive nor any business in which Executive may
engage or participate in will (A) knowingly hire, solicit for hire or attempt to hire any key
employee of the Company or any of its Affiliates, or (B) encourage any key employee of the Company
or any of its Affiliates to terminate such employment. For purposes of this Agreement, “key
employee” means current employees whose base annual salary exceeds $200,000 as well as anyone
employed by the Company or any of its Affiliates within the prior six (6) months from Executive’s
date of termination whose base annual salary exceeds $200,000; provided, however, that this
provision will not preclude any business in which Executive may engage or participate in from
soliciting any such employee by means of or hiring any such employee who responds to a public
announcement placed by the business as long as Executive otherwise complies with subsections (A)
and (B) above; and

               (iii) In the event that any of the provisions of this Section should ever be deemed to exceed
the time, geographic or occupational limitations permitted by applicable laws, then such provisions
will and are hereby reformed to the maximum time, geographic or occupational limitations permitted
by applicable law.

          (c) Nondisparagement. During the Employment Term and Restricted Period, Executive
will not knowingly disparage, criticize, or otherwise make any derogatory statements regarding the
Company, its directors, or its officers. The Company will instruct its officers and directors to
not knowingly disparage, criticize, or otherwise make any derogatory statements regarding Executive
during the Employment Term and Restricted Period. Notwithstanding the foregoing, nothing contained
in this agreement will be deemed to restrict Executive, the Company or any of the Company’s current
or former officers and/or directors from providing information to any governmental or regulatory
agency (or in any way limit the content of any such information) to the extent they are requested
or required to provide such information pursuant to applicable law or regulation.

          (d) Other Requirements. Executive’s receipt of continued severance payments will be
subject to Executive continuing to comply with the terms and provisions of Sections 9 and 10.
Executive will not be obligated to comply with Section 9 of this Agreement while the Company is in
material default of its payment and reimbursement obligations under Sections 7, 8, 10, or 17 of
this Agreement. Notwithstanding the foregoing, the Company will not be considered to be in default
of its payments and reimbursement obligations unless Executive provides written notice to the Board
setting forth his reasons why he believes the Company is in default and giving the Company fifteen
(15) days to cure such default, if any.

          (e) No Duty to Mitigate. Executive will not be required to mitigate the amount of any
payment or consideration contemplated by this Agreement, nor will any earnings that Executive may
receive from any other source reduce any such payment or consideration.

          (f) Inadvertence. Notwithstanding anything in this Section 9 (or any other provision)
of this Agreement to the contrary, any inadvertent violation by Executive of any of the provisions
of Section 9(b)(i) or 9(b)(ii) which Executive believed in good faith was not a violation of such
Sections

-8-

 

and any violation by any business in which Executive may engage or participate of any of the
provisions of Section 9(b)(i) or 9(b)(ii) which violation was done without the Executive’s
knowledge and without the Executive’s direct or indirect participation or encouragement shall not
result in the cessation of Executive’s severance payments hereunder (but Executive shall remain
liable for the Company’s direct damages, if any, resulting from any such violation by Executive).

     10. Confidential Information and Intellectual Property.

          (a) Except as may be required by law or legal process, or except to the extent required to
perform Executive’s duties and responsibilities hereunder, Executive will keep secret and
confidential indefinitely, so long as same remains secret and confidential, all non-public
confidential information (including, without limitation, information regarding cost of new
accounts, activity rates of different market niche customers, advertising results, technology
(hardware and software), architecture, discoveries, processes, algorithms, maskworks, strategies,
intellectual properties, customer lists and other customer information) concerning any of the
Company and its affiliates which was acquired by or disclosed to Executive during the course of
Executive’s employment with the Company (“Confidential Information”) and not use in any manner or
disclose the same, either directly or indirectly, to any other person, firm or business entity.

          (b) At the end of the Employment Term (whether by expiration or termination) or at the
Company’s earlier request, Executive will promptly return to the Company (or destroy if so directed
by the Company) any and all records, documents, physical property, information, computer disks,
drives or other materials relative to the business of any of the Company and its affiliates
obtained by Executive during the course of his employment with the Company and not keep any copies
thereof.

          (c) Executive acknowledges and agrees that all right, title and interest in inventions,
discoveries, improvements, trade secrets, developments, processes and procedures made by Executive,
in whole or in part, or conceived by Executive either alone or with others, when employed by the
Company, including such of the foregoing items conceived during the course of employment which are
developed or perfected after Executive’s termination of employment, are owned by the Company
(“Company IP”). Executive assigns any and all right, title and interest he may have to Company IP
to the Company and will promptly assist the Company or its designee, at the Company’s expense, to
obtain patents, trademarks, copyrights and service marks concerning Company IP made by Executive
and Executive will promptly execute all reasonable documents prepared by the Company or its
designee and take all other reasonable actions which are necessary or appropriate to secure to the
Company and its affiliates the benefits of Company IP. Such patents, trademarks, copyrights and
service marks will at all times be the property of the Company and its affiliates. Executive
promptly will keep the Company informed of, and promptly will execute such assignments prepared by
the Company or its designee as may be necessary to transfer to the Company or its affiliates the
benefits of, any Company IP. The Company will promptly reimburse Executive for all costs, fees
(including reasonable attorney fees) and expenses incurred by him in connection with his
obligations and undertakings in this paragraph (c) and in paragraph (d) below.

          (d) To the extent that any court or agency seeks to require Executive to disclose Confidential
Information, Executive promptly will inform the Company and take reasonable steps, at the Company’s
expense, to endeavor to prevent the disclosure of Confidential Information until the

-9-

 

Company has been informed of such requested disclosure, and the Company has an opportunity to
respond to such court or agency. To the extent Executive obtains information on behalf of the
Company or any of its affiliates that Executive knows is subject to attorney-client privilege as to
the Company’s attorneys, Executive will promptly inform the Company and take reasonable steps, at
the Company’s expense, to endeavor to maintain the confidentiality of such information and to
preserve such privilege.

          (e) Confidential Information does not include information in the public domain or information
which has been released to the public by the Company. Nothing in this Section 10 will be construed
so as to prevent Executive from using, in connection with his employment for himself or an employer
other than the Company, knowledge which was acquired by him during the course of his employment
with the Company and which is generally known to persons of his experience in other companies in
the same industry. Subject to Section 10(d), Executive will be permitted to disclose Confidential
Information if required by a subpoena or court or administrative order.

          (f) The receipt of any severance pursuant to Section 8 will be subject to Executive complying
with the terms of this Section 10.

     11. Definitions.

          (a) Award Agreement. For purposes of this Agreement, “Award Agreement” will mean the
form of award agreement entered into between Executive and the Company in connection with the
Special Grant and Annual Awards.

          (b) Cause. For purposes of this Agreement, “Cause” will mean Executive’s conviction
of, or plea of nolo contendere to, a criminal offense arising out of a breach of trust,
embezzlement or fraud committed against the Company by Executive in the course of Executive’s
employment with the Company.

          (c) Change of Control. For purposes of this Agreement, “Change of Control” will have
the meaning set forth in the LTIP.

          (d) Disability. For purposes of this Agreement, Disability means, by reason of any
medically determinable physical or mental impairment which prevents Executive from performing his
material duties under this Agreement, with reasonable accommodation, on a substantially full time
basis for not less than one hundred eighty (180) consecutive calendar days.

          (e) Good Reason. For purposes of this Agreement, “Good Reason” means the occurrence
of any of the following, without Executive’s express written consent:

               (i) The appointment of any individual other than Executive as Chief Executive Officer of the
Company;

               (ii) Any failure by the Company to provide Executive with the reporting relationship as
provided in Section 1(a) or any material and adverse reduction in Executive’s reporting
relationship other than any isolated, insubstantial and inadvertent failure by the Company that is
not in bad faith and is cured promptly on Executive giving the Company notice of such failure;

-10-

 

               (iii) A material reduction in the kind or level of employee benefits to which Executive is
entitled immediately prior to such reduction with the result that Executive’s overall benefits
package is significantly reduced. Notwithstanding the foregoing, a one-time reduction that also is
applied to substantially all other executive officers of the Company and that reduces the level of
employee benefits by a percentage reduction of 10% or less will not constitute Good Reason;

               (iv) A reduction (even if permitted under the applicable plan documents or Award Agreement or
Annual Incentive) in Executive’s Base Salary, Target Annual Incentive, Special Grant, or Annual
Award as in effect immediately prior to such reduction. Notwithstanding the foregoing, a one-time
reduction that also is applied (and continues to apply) to substantially all other executive
officers of the Company and which one-time reduction reduces any of the Base Salary, Target Annual
Incentive, Special Grant, or Annual Award by a percentage reduction of 10% or less in the aggregate
will not constitute Good Reason. Notwithstanding anything in this Section 11(e)(iv) to the
contrary, any such reduction (even if permitted under the applicable plan documents or Award
Agreement or Annual Incentive) will not reduce or otherwise limit the Company’s obligations under
Section 8 of this Agreement;

               (v) The relocation of Executive to a facility or location more than twenty-five (25) miles
from his current place of employment; or

               (vi) The failure of the Company to obtain the assumption of the Agreement by a successor.

The failure of the Company’s stockholders to elect or reelect Executive to the Board will not
constitute Good Reason for purposes of this Agreement.

          (f) In Connection with a Change of Control. For purposes of this Agreement, a
termination of Executive’s employment with the Company is “in Connection with a Change of Control”
if Executive’s employment is terminated within twelve (12) months following a Change of Control, or
if during the Initial Term the Company elects not to renew this Agreement for the Additional Term
and a Change of Control occurs within ninety (90) days thereafter, or if the Company terminates
Executive’s employment without Cause or if Executive terminates his employment for Good Reason
during the period commencing on the day the Company enters into an agreement in principle with
respect to a Change of Control and ending on the day following the closing of such Change of
Control.

          (g) Restricted Period. For purposes of this Agreement, if Executive is terminated
during the Initial Term, “Restricted Period” will mean the greater of: (i) the period of time
commencing on the date of the termination of Executive’s employment and continuing for the
remainder of the Initial Term, or (ii) one (1) year. If Executive is terminated during the
Additional Term, “Restricted Period” will mean the greater of: (i) the period of time commencing on
the date of the termination of Executive’s employment and continuing for the remainder of the
Additional Term or, (ii) six (6) months. If Executive is terminated and such termination is in
Connection with a Change of Control, the Restricted Period will equal eighteen (18) months. In the
case of a termination upon the completion of the Term of the Agreement, the Restricted Period will
equal six (6) months.

-11-

 

          (h) Severance Period. For purposes of this Agreement, if Executive is terminated
during the Initial Term, “Severance Period” will mean the greater of: (i) the period of time
commencing on the date of the termination of Executive’s employment and continuing for the
remainder of the Initial Term, or (ii) one (1) year. If Executive is terminated during the
Additional Term, “Severance Period” will mean the greater of: (i) the period of time commencing on
the date of the termination of Executive’s employment and continuing for the remainder of the
Additional Term or, (ii) one (1) year.

     12. Indemnification. Subject to applicable law, Executive will be provided
indemnification and contribution to the maximum extent permitted by the Company’s Articles of
Incorporation or Bylaws, including, if applicable, any directors and officers insurance policies,
with such indemnification and contribution to be on terms determined by the Board or any of its
committees, but on terms no less favorable than provided to any other Company executive officer or
director and subject to the terms of any separate written indemnification agreement. This Section
12 will apply to claims made during and/or after the Employment Term to the extent such claims
relate to any period Executive was employed by the Company or any of its subsidiaries, predecessors
or affiliates.

     13. Assignment. This Agreement will be binding upon and inure to the benefit of (a)
the heirs, executors and legal representatives of Executive upon Executive’s death, and (b) any
successor of the Company. Any such successor of the Company will be deemed substituted for the
Company under the terms of this Agreement for all purposes. For this purpose, “successor” means
any person, firm, corporation, or other business entity which at any time, whether by purchase,
merger, or otherwise, directly or indirectly acquires all or substantially all of the assets or
business of the Company. None of the rights of Executive to receive any form of compensation
payable pursuant to this Agreement may be assigned or transferred except by will or the laws of
descent and distribution. Any other attempted assignment, transfer, conveyance, or other
disposition of Executive’s right to compensation or other benefits will be null and void.

     14. Notices. All notices, requests, demands and other communications called for
hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered
personally, (b) one (1) day after being sent overnight by a well established commercial overnight
service, or (c) four (4) days after being mailed by registered or certified mail, return receipt
requested, prepaid and addressed to the parties or their successors at the following addresses, or
at such other addresses as the parties may later designate in writing:

If to the Company:

Attn: Chairman of the Compensation Committee

c/o Corporate Secretary

TD Ameritrade Holding Corporation

4211 South 102nd Street

Omaha, NE 68127

If to Executive:

at the last residential address known by the Company.

-12-

 

     15. Severability. If any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full
force and effect without said provision.

     16. Arbitration. The Parties agree that any and all disputes arising out of the terms
of this Agreement, Executive’s employment by the Company, Executive’s service as an officer or
director of the Company, or Executive’s compensation and benefits, their interpretation and any of
the matters herein released, will be subject to binding arbitration in Omaha, Nebraska before the
American Arbitration Association under its National Rules for the Resolution of Employment
Disputes, supplemented by the Nebraska Rules of Civil Procedure. The Parties agree that the
prevailing party in any arbitration will be entitled to injunctive relief in any court of competent
jurisdiction to enforce the arbitration award. The Parties hereby agree to waive their right to
have any dispute between them resolved in a court of law by a judge or jury. This paragraph will
not prevent either party from seeking injunctive relief (or any other provisional remedy) from any
court having jurisdiction over the Parties and the subject matter of their dispute relating to
obligations under this Agreement.

     17. Legal and Tax Expenses. The Company will reimburse Executive for reasonable legal
fees and expenses incurred by him in connection with the negotiation, preparation and execution of
this Agreement and Exhibit A hereto (including any amendments thereto sought by the Company after
the Effective Date.

     18. Integration. This Agreement and the standard forms of equity award grant that
describe Executive’s outstanding equity awards, represents the entire agreement and understanding
between the parties as to the subject matter herein and supersedes all prior or contemporaneous
agreements whether written or oral, including, but not limited to, the Employment Agreement entered
into between Executive and Ameritrade Holding Corporation dated March 1, 2001, as amended and
restated and neither party will have any further obligations under such agreement. No waiver,
alteration, or modification of any of the provisions of this Agreement will be binding unless in a
writing and signed by duly authorized representatives of the parties hereto. In entering into this
Agreement, no party has relied on or made any representation, warranty, inducement, promise, or
understanding that is not in this Agreement. Notwithstanding anything herein to the contrary,
nothing in this Agreement will limit or waive any of Executive’s existing rights with respect (a)
to options, awards or other compensation granted or awarded to Executive prior to the Effective
Date, or (b) any accrued but unpaid salary, benefits, compensation or expenses.

     19. Waiver of Breach. The waiver of a breach of any term or provision of this
Agreement, which must be in writing, will not operate as or be construed to be a waiver of any
other previous or subsequent breach of this Agreement.

     20. Survival. The Company’s and Executive’s responsibilities under Sections 7, 8, 9,
10, 12 and 17 will survive the termination of this Agreement.

     21. Headings. All captions and Section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement.

-13-

 

     22. Tax Withholding. All payments made pursuant to this Agreement will be subject to
withholding of applicable taxes.

     23. Governing Law. This Agreement will be governed by the laws of the State of New
York without regard to its conflict of laws provisions.

     24. Acknowledgment. Executive acknowledges that he has had the opportunity to discuss
this matter with and obtain advice from his private attorney, has had sufficient time to, and has
carefully read and fully understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

     25. Code Section 409A. Notwithstanding anything to the contrary in this Agreement, if
the Company reasonably determines that Section 409A of the Code will result in the imposition of
additional tax to an earlier payment of any severance or other benefits otherwise due to Executive
on or within the six (6) month period following Executive’s termination, the severance benefits
will accrue during such six (6) month period and will become payable in a lump sum payment on the
date six (6) months and one (1) day following the date of Executive’s termination. All subsequent
payments, if any, will be payable as provided in this Agreement.

     26. Counterparts. This Agreement may be executed in counterparts, and each
counterpart will have the same force and effect as an original and will constitute an effective,
binding agreement on the part of each of the undersigned.

-14-

 

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by a duly authorized officer, as of the day and year written below.

	 	 	 	 	 
	COMPANY:
	 	 	 	 
	 
	 	 	 	 
	TD AMERITRADE HOLDING CORPORATION
	 	 	 	 
	 
	 	 	 	 
	/s/ Fredric J. Tomczyk 
	 	 	 	 
	Fredric J. Tomczyk

	 	 
	 	Date: June 22, 2006
	Chairman of the Compensation Committee
	 	 	 	 
	 
	 	 	 	 
	EXECUTIVE:
	 	 	 	 
	 
	 	 	 	 
	/s/ Joseph H. Moglia
	 	 	 	 
	Joseph H. Moglia

	 	 
	 	Date: June 23, 2006
	 
	 	 	 	 

[SIGNATURE PAGE TO MOGLIA EMPLOYMENT AGREEMENT]

-15-

 

 Exhibit A

SEPARATION AND RELEASE OF CLAIMS AGREEMENT

RECITALS

     This Separation and Release of Claims Agreement (“Agreement”) is made by and between Joseph H.
Moglia (“Employee”) and TD Ameritrade Holding Corporation (“Company”) (collectively referred to as
the “Parties”):

     WHEREAS, Employee and Company entered into an Employment Agreement dated May 19, 2006 (the
“Employment Agreement”);

     WHEREAS, the Company and Employee have entered into Performance Restricted Stock Unit
Agreements, dated [DATES], (collectively the “Restricted Stock Unit Agreements) pursuant to which
the Employee was eligible to participate in the Ameritrade Holding Corporation 1996 Long-Term
Incentive Plan (the “Plan”);

     WHEREAS, Employee was employed by the Company;

     WHEREAS, Employee’s employment with Company was terminated on or about [DATE] (the
“Termination Date”);

     WHEREAS, the Parties, and each of them, wish to resolve any and all disputes, claims,
complaints, grievances, charges, actions, petitions and demands that the Employee may have against
the Company as defined herein, including, but not limited to, any and all claims arising or in any
way related to Employee’s employment with, or separation from, the Company;

     NOW THEREFORE, in consideration of the promises made herein, the Parties hereby agree as
follows:

COVENANTS

     1. Consideration.

          (a) The Company agrees to pay and reimburse Employee pursuant to Sections 7, 8, 10, and 17 of
the Employment Agreement, as appropriate, subject to Section 9 of the Employment Agreement.
Payment shall commence on the first regular payroll date following the Effective Date. Except as
expressly provided in the Employment Agreement or in any plan or program referenced therein or
herein, following the Effective Date Employee shall not be entitled to the accrual of any employee
benefits.

          (b) Stock. The Parties agree that Employee’s vesting with respect to those unvested
equity awards outstanding as of the Effective Date shall accelerate pursuant to Section 8 of the
Employment Agreement, as appropriate, subject to Section 9 of the Employment Agreement. All shares
shall continue to be subject to all other terms of the Restricted Stock Unit Agreements except as
otherwise provided in the Employment Agreement.

          2. Confidential Information. Employee shall continue to maintain the confidentiality
of all confidential and proprietary information of the Company and shall continue to comply with

 

 

the terms and conditions of Section 10 of the Employee’s Employment Agreement. Employee shall
return (or, to the extent permitted in the Employment Agreement, destroy) all of the Company’s
property and confidential and proprietary information in his possession to the Company on or before
the Effective Date of this Agreement. The receipt of any severance benefits set forth in Section 1
above is subject to the Employee’s continued compliance with Section 10 of the Employee’s
Employment Agreement. In the event that the Employee fails to comply with Section 10 of the
Employee’s Employment Agreement, other than an inadvertent and immaterial violation made in good
faith, the Company is entitled to immediately recover any payments made pursuant to Section 1 of
this Agreement.

     3. Payments. Employee acknowledges and represents that the Company will have paid all
salary, wages, bonuses, accrued vacation, commissions and any and all other benefits due to
Employee once the above noted payments and benefits are received.

     4. Release of Claims. Employee agrees that the foregoing consideration represents
settlement in full of all outstanding obligations owed to Employee by the Company and, with respect
to the Company, its officers, managers, supervisors, independent contractors and employees.
Employee, on his own behalf, and on behalf of his respective heirs, executors and assigns, hereby
fully and forever releases the Company and, with respect to the Company, its officers, directors
and employees, and the Company’s affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, from, and agrees not to sue concerning, any claim, duty, obligation or
cause of action relating to any matters of any kind, whether presently known or unknown, suspected
or unsuspected, that Employee may possess arising from any omissions, acts or facts that have
occurred up until and including the Effective Date of this Agreement including, without limitation:

          (a) any and all claims relating to or arising from Employee’s employment relationship with the
Company and the termination of that relationship;

          (b) any and all claims relating to, or arising from, Employee’s right to purchase, or actual
purchase of, shares of stock of the Company, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law,
and securities fraud under any state or federal law;

          (c) any and all claims under the law of any jurisdiction including, but not limited to,
wrongful discharge of employment; constructive discharge from employment; termination in violation
of public policy; discrimination; breach of contract, both express and implied; breach of a
covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent
or intentional infliction of emotional distress; negligent or intentional misrepresentation;
negligent or intentional interference with contract or prospective economic advantage; unfair
business practices; defamation; libel; slander; negligence; personal injury; assault; battery;
invasion of privacy; false imprisonment; and conversion;

          (d) any and all claims for violation of any federal, state or municipal statute, including,
but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the
Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act

2

 

of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974,
The Worker Adjustment and Retraining Notification Act, Older Workers Benefit Protection Act; the
Massachusetts Fair Employment Practice Act;

          (e) any and all claims for violation of the federal, or any state, constitution;

          (f) any and all claims arising out of any other laws and regulations relating to employment or
employment discrimination;

          (g) any claim for any loss, cost, damage, or expense arising out of any dispute over the
non-withholding or other tax treatment of any of the proceeds received by Employee as a result of
this Agreement; and

          (h) any and all claims for attorneys’ fees and costs.

     The Company and Employee agree that the release set forth in this section shall be and remain
in effect in all respects as a complete general release as to the matters released.
Notwithstanding anything in this Agreement to the contrary, this release and agreement not to sue
does not extend to any obligations incurred under this Agreement or to any obligations under
Section 7, 8, 10, or 17 of the Employment Agreement or to any indemnification or contribution
rights the Employee may have with respect to any third-party claims.

     Employee acknowledges and agrees that any uncured material breach of any provision of this
Agreement, after receipt by Employee of written notice specifying such breach and a reasonable
opportunity to cure, shall constitute a material breach of this Agreement and shall entitle the
Company to recover any direct damages resulting therefrom, including the right to cease the
severance benefits hereunder to the extent of any such damages.

     5. Acknowledgement of Waiver of Claims Under ADEA. Employee acknowledges that he is
waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967
(“ADEA”) and that this waiver and release is knowing and voluntary. Employee and the Company agree
that this waiver and release does not apply to any rights or claims that may arise under ADEA after
the Effective Date of this Agreement. Employee acknowledges that the consideration given for this
waiver and release Agreement is in addition to anything of value to which Employee was already
entitled. Employee further acknowledges that he has been advised by this writing that:

          (a) he should consult with an attorney prior to executing this Agreement;

          (b) he has up to twenty-one (21) days within which to consider this Agreement;

          (c) he has seven (7) days following his execution of this Agreement to revoke this Agreement;

          (d) this Agreement shall not be effective until the revocation period has expired; and,

3

 

          (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a
determination in good faith of the validity of this waiver under the ADEA, nor does it impose any
condition precedent, penalties or costs for doing so, unless specifically authorized by federal
law.

     6. Unknown Claims. The Parties represent that they are not aware of any claim by
either of them against the other, other than the claims that are released by this Agreement.
Employee acknowledges that he has been advised by legal counsel and is familiar with the principle
that a general release does not extend to claims which the releasor does not know or suspect to
exist in his favor at the time of executing the release, which if known by him must have materially
affected his settlement with the releasee. Employee, being aware of said principle, agrees to
expressly waive any rights Employee may have to that effect, as well as under any other statute or
common law principles of similar effect.

     7. No Pending or Future Lawsuits. Employee represents that to his knowledge he has no
lawsuits, claims, or actions pending in his name, or on behalf of any other person or entity,
against the Company or any other person or entity referred to herein. Employee also represents
that he does not intend to bring any claims on his own behalf or on behalf of any other person or
entity against the Company or any other person or entity referred to herein, other than any claims
to enforce his rights hereunder and under the relevant provisions of the Employment Agreement.

     8. Application for Employment. Employee understands and agrees that, as a condition
of this Agreement, he shall not be entitled to any employment with the Company, its subsidiaries,
or any successor, and he hereby waives any right, or alleged right, of employment or re-employment
with the Company, its subsidiaries or related companies, or any successor.

     9. Confidentiality. The Parties acknowledge that the Company’s and the Employee’s
agreement to keep the terms and conditions of this Agreement confidential was a material factor on
which all parties relied in entering into this Agreement. The Company and the Employee hereto
agree to use his (its) reasonable efforts to maintain in confidence: (i) the existence of this
Agreement, (ii) the contents and terms of this Agreement, (iii) the consideration for this
Agreement, and (iv) any allegations relating to the Employee, the Company or its officers or
employees with respect to Employee’s employment with the Company, except as otherwise provided for
in this Agreement (hereinafter collectively referred to as “Settlement Information”). Employee and
Company each agrees to take every reasonable precaution to prevent disclosure of any Settlement
Information to third parties, and agrees that there shall be no publicity, directly or indirectly,
concerning any Settlement Information. Employee and Company each agrees to take every precaution
to disclose Settlement Information only to those attorneys, accountants, governmental entities, and
family members who have a reasonable need to know of such Settlement Information. The Parties
agree that if Company proves that Employee breached this Confidentiality provision, it shall be
entitled to an award of its costs spent enforcing this provision, including all reasonable
attorneys’ fees associated with the enforcement action, without regard to whether the Company can
establish actual damages from the breach by Employee.

4

 

     10. No Cooperation. Employee agrees he shall not, in breach of any duty or obligation
he owes to the Company, act in any manner that he knows or should know is reasonably likely to
damage the business of the Company. For purposes of this Section 10, an inadvertent and immaterial
violation made in good faith shall not constitute a breach of this Section 10. Employee agrees
that he shall not counsel or assist any attorneys or their clients in the presentation or
prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third
party against the Company and/or, with respect to the Company, any officer, director, employee,
agent, representative, shareholder or attorney of the Company, unless under a subpoena, legal
discovery device or court order to do so. Employee further agrees both to immediately notify the
Company upon receipt of any court order, subpoena, or any legal discovery device that seeks or
requires the disclosure or production of the existence or terms of this Agreement, and to mail,
within three (3) business days of its actual receipt by Employee, a copy of such subpoena or legal
discovery device to the Company.

     11. Non-Disparagement. Employee shall refrain from any defamation, libel or slander
of the Company or tortious interference with the contracts and relationships of the Company. The
Company shall instruct its officers and directors to refrain from any defamation, libel or slander
of the Employee or tortious interference with the contracts and relationships of the Employee. All
inquiries by potential future employers of Employee shall be directed to the Company’s Human
Resources Department. Upon inquiry, the Company shall only state the following: Employee’s last
position and dates of employment. The Company’s notification of any potential future employer of
the Employee’s duties and responsibilities under this Agreement and pursuant to the terms of the
Employee’s Employment Agreement shall not be considered defamation, libel, slander, or tortious
interference.

     12. Non-Solicitation. Employee agrees to comply with the provisions of Section 9 of
the Employee’s Employment Agreement.

     13. No Admission of Liability. The Parties understand and acknowledge that this
Agreement constitutes a compromise and settlement of disputed claims. No action taken by the
Parties hereto, or either of them, either previously or in connection with this Agreement shall be
deemed or construed to be: (a) an admission of the truth or falsity of any claims heretofore made
or (b) an acknowledgment or admission by either party of any fault or liability whatsoever to the
other party or to any third party.

     14. No Knowledge of Wrongdoing. Employee and Company each represents that he (it) has
no knowledge of any wrongdoing involving improper or false claims against a federal or state
governmental agency, or any other wrongdoing that involves Employee or other present or former
Company employees.

     15. Tax Consequences. The Company makes no representations or warranties with respect
to the tax consequences of the payment of any sums to Employee under the terms of this Agreement.
Employee agrees and understands that he is responsible for payment, if any, of local, state and/or
federal taxes on the sums paid hereunder by the Company and any penalties or assessments thereon.
Employee further agrees to indemnify and hold the Company harmless from any claims, demands,
deficiencies, penalties, assessments, executions, judgments, or

5

 

recoveries by any government agency against the Company for any amounts due on account of
Employee’s failure to pay federal or state taxes payable by Employee or damages sustained by the
Company by reason of any such claims with respect to Employee’s failure to pay such tax payable by
him, including reasonable attorneys’ fees.

     16. Costs. The Parties shall each bear their own costs, expert fees, attorneys’ fees
and other fees incurred in connection with the enforcement of this Agreement. The Company shall
pay Employee’s reasonable legal fees incurred in connection with any changes sought to be made by
the Company to the original form of this Agreement (Exhibit A to the Employment Agreement).

     17. Indemnification. Employee and Company each agrees to indemnify and hold harmless
the other from and against any and all loss, costs, damages or expenses, including, without
limitation, attorneys’ fees or expenses incurred by the other arising out of the breach of this
Agreement by him (it), or from any false representation made herein by him (it), and Employee
agrees to so indemnify and hold harmless the Company from any action or proceeding which may be
commenced, prosecuted or threatened by Employee or for Employee’s benefit, upon Employee’s
initiative, or with Employee’s aid or approval, in breach of the provisions of this Agreement.
Employee further agrees that in any such action or proceeding, this Agreement may be pled by the
Company as a defense, or may be asserted by way of counterclaim or cross-claim.

     18. Cooperation in Litigation. Employee agrees to reasonably cooperate (subject to
his other commitments at such time) with the Company, at the Company’s sole expense, in any matters
that have or may result in a legal claim against the Company, and of which Employee may have
knowledge as a result of Employee’s employment with the Company. This requires Employee, without
limitation, to (1) make himself available upon reasonable request (subject to his other commitments
at such time) to provide information and assistance to the Company on such matters without
additional compensation, except as provided below and except for Employee’s out-of-pocket costs
(including his reasonable legal fees and expenses), and (2) subject to applicable law and legal
requirements, notify the Company promptly of any requests to Employee for information related to
any pending or potential legal claim or litigation involving the Company, reviewing, at the
Company’s sole expense (including reimbursement to Employee for his reasonable legal fees and
expenses), any such request with a designated representative of the Company prior to disclosing any
such information, and not objecting to the representative of the Company being present during any
communication of such information. If a significant amount of Employee’s time is so required, the
Company shall also pay Employee reasonable compensation for such time.

     19. Arbitration. The Parties agree that any and all disputes arising out of, or
relating to, the terms of this Agreement, their interpretation, and any of the matters herein
released, shall be subject to binding arbitration in Omaha, Nebraska before the American
Arbitration Association under its National Rules for the Resolution of Employment Disputes. The
Parties agree that the prevailing party in any arbitration shall be entitled to injunctive relief
in any court of competent jurisdiction to enforce the arbitration award. The Parties agree that
the prevailing party in any arbitration shall be awarded its reasonable attorneys’ fees and costs.
The Parties hereby agree

6

 

to waive their right to have any dispute between them resolved in a court of law by a judge or
jury. This section shall not prevent either party from seeking injunctive relief (or any other
provisional remedy) from any court having jurisdiction over the Parties and the subject matter of
their dispute relating to Employee’s and Company’s obligations under this Agreement and the
agreements incorporated herein by reference.

     20. Authority. The Company represents and warrants that the undersigned has the
authority to act on behalf of the Company and to bind the Company and all who may claim through it
to the terms and conditions of this Agreement. Employee represents and warrants that he has the
capacity to act on his own behalf and on behalf of all who might claim through him to bind them to
the terms and conditions of this Agreement. Employee warrants and represents that to his knowledge
there are no liens or claims of lien or assignments in law or equity or otherwise of or against any
of the claims or causes of action released herein.

     21. No Representations. Each party represents that it has had the opportunity to
consult with an attorney, and has carefully read and understands the scope and effect of the
provisions of this Agreement. Neither party has relied upon any representations or statements made
by the other party hereto which are not specifically set forth in this Agreement or in the
Employment Agreement.

     22. Severability. In the event that any provision hereof becomes or is declared by a
court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue
in full force and effect without said provision so long as the remaining provisions remain
intelligible and continue to reflect in all material respects the original intent of the Parties.

     23. Entire Agreement. This Agreement (and the continuing obligations under the
Employment Agreement referred to herein) represents the entire agreement and understanding between
the Company and Employee concerning the subject matter of this Agreement and Employee’s
relationship with the Company, and supersedes and replaces any and all prior agreements and
understandings between the Parties concerning the subject matter of this Agreement and Employee’s
relationship with the Company, with the exception of the Restricted Stock Unit Agreements, and the
applicable Sections of the Employment Agreement.

     24. No Waiver. The failure of any party to insist upon the performance of any of the
terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms
and conditions of this Agreement, shall not be construed thereafter as a waiver of any such terms
or conditions. This entire Agreement shall remain in full force and effect as if no such
forbearance or failure of performance had occurred.

     25. No Oral Modification. Any modification or amendment of this Agreement, or
additional obligation assumed by either party in connection with this Agreement, shall be effective
only if placed in writing and signed by both Parties or by authorized representatives of each
party.

     26. Governing Law. This Agreement shall be deemed to have been executed and delivered
within the state of New York, and it shall be construed, interpreted, governed, and

7

 

enforced in accordance with the laws of the state of New York, without regard to conflict of
law principles. To the extent that either party seeks injunctive relief in any court having
jurisdiction for any claim relating to the alleged misuse or misappropriation of trade secrets or
confidential or proprietary information, each party hereby consents to personal and exclusive
jurisdiction and venue in the state and federal courts of the state of New York.

     27. Attorneys’ Fees. In the event that either Party brings an action to enforce or
effect its rights under this Agreement, the prevailing party shall be entitled to recover its costs
and expenses, including the costs of mediation, arbitration, litigation, court fees, plus
reasonable attorneys’ fees, incurred in connection with such an action.

     28. Effective Date. This Agreement is effective after it has been signed by Employee
and after eight (8) days have passed since Employee has signed the Agreement (the “Effective Date”)
and delivered it to Company, unless revoked by Employee within seven (7) days after the date the
Agreement was signed by Employee.

     29. Counterparts. This Agreement may be executed in counterparts, and each
counterpart shall have the same force and effect as an original and shall constitute an effective,
binding agreement on the part of each of the undersigned.

     30. Voluntary Execution of Agreement. This Agreement is executed voluntarily and
without any duress or undue influence on the part or behalf of the Parties hereto, with the full
intent of releasing all claims. The Parties acknowledge that:

          (a) they have read this Agreement;

          (b) they have been represented in the preparation, negotiation, and execution of this
Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such
counsel;

          (c) they understand the terms and consequences of this Agreement and of the releases it
contains; and

          (d) they are fully aware of the legal and binding effect of this Agreement.

8

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth
below.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TD AMERITRADE HOLDING CORPORATION
	 
	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	[NAME]
	 	 	 	 	 	 	[TITLE]
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	JOSEPH H. MOGLIA, an individual
	 
	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Joseph H. Moglia

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]