Document:

Exhibit 10.1

 

AGREEMENT

 

- by
and between -

 

GENPACT
ONSITE SERVICES INC.

 

- and -

 

PATRICK
COGNY

 

- with
respect to -

 

THE
PERFORMANCE OF BRANCH MANAGEMENT SERVICES

 

OCTOBER
21, 2008

 

1

 

TABLE
OF CONTENTS

 

	
  Article 1
  - Task and Responsibilities

  	
  3

  
	
  Article 2
  - Obligations of Manager

  	
  4

  
	
  Article 3
  - Obligations of the Company

  	
  4

  
	
  Article 4
  - Compensation of the Manager

  	
  5

  
	
  Article 5
  - Expenses

  	
  6

  
	
  Article 6
  - Duration and Termination

  	
  7

  
	
  Article 7
  - Confidentiality and Proprietary Information

  	
  8

  
	
  Article 8
  - Intellectual Property Rights

  	
  9

  
	
  Article 9
  - Assignment of Rights

  	
  9

  
	
  Article 10
  - Independent Parties

  	
  9

  
	
  Article 11
  - Miscellaneous

  	
  9

  
	
  Article 12
  - Applicable Law - Competent Courts

  	
  10

  

 

2

 

AGREEMENT
FOR THE PERFORMANCE OF BRANCH MANAGEMENT SERVICES

 

This agreement for the performance of branch
manager services (this “Agreement”)
is entered into on October 21, 2008.

 

BY AND BETWEEN:

 

1.            GENPACT ONSITE SERVICES INC., a company
organized and existing under the laws of Delaware, United States, with
registered office at Corporation trust Center, 1209 Orange, Wilmington,
Delaware 19801 (hereinafter referred to as the “Company”), and
with a Belgian branch office  at 1000 Brussels,
Rue Royale 97; and

 

2.            Mr. Patrick Cogny, residing at
138 avenue Molière, 1050 Bruxelles (hereinafter referred to as the “Manager”);

 

The Company and Manager are hereinafter
collectively referred to as the “Parties” and individually as a “Party”.

 

WHEREAS:

 

(A)          The
Manager has been appointed as a director of the Company by the relevant
corporate body in accordance with applicable US laws;

 

(B)           The
Manager has subsequently been appointed by the relevant corporate body as a
branch manager of the Company’s Belgian branch in accordance with the
applicable relevant legal rules;

 

(C)           The Parties hereby wish to specify the
terms and conditions of such appointment as branch manager in this Agreement.

 

IT HAS BEEN AGREED AS
FOLLOWS:

 

Article 1
- Task and Responsibilities

 

1.1           The
Manager will - in his capacity of branch manager – have the powers for daily
management of the Company’s Belgian branch as determined by the relevant
corporate body of the Company (hereinafter referred to as the “Services”).

 

1.2           The
Services will cover (i) all daily management services, financial,
operational,  administrative, commercial and
legal aspects of the business operations of the Company’s Belgian branch
including the responsibilities of CEO for Genpact Europe and the Manager will
more specifically have the powers and responsibilities as further described in
Annex A to this Agreement and (ii) all related assistance that may be
required or requested by the Company.

 

3

 

Article 2
- Obligations of the Manager

 

2.1           The
Manager undertakes:

 

·              to
assume full responsibility for the daily management, global operations and
functioning of the Belgian branch of the Company, including all legal and
internal, local and group level reporting requirements;

 

·              to
discharge the Services on a full-time basis during at least 195 service days
per calendar year;

 

·              to
perform the Services in the best interest of the Company, to the best of his
abilities, in a loyal manner and in good faith;

 

·              to render the Services in a professional and
competent manner in accordance with the high performance and quality standards,
which a contact or customer of the Company may expect;

 

·              to
take into account the guidelines that will be issued from time to time by the
Company’s board of directors (the board of directors of the Company hereinafter
being referred to as the “Board); and
to discharge the Services subject to regular consultation with and reporting to
the Board in order to assure the coherence of the Services rendered whilst
maintaining all freedom and autonomy in organising the performance of its
Services;

 

·              to
communicate to the Board all information which is pertinent for the performance
of the Services and the Company’s business in general.

 

2.2           The Manager can in view of the needs
of the Company be required to provide the Services outside normal working days
or working hours.

 

Article 3
- Obligations of the Company

 

3.1           The Company will provide the Manager with
access to all documents, information and guidelines that are reasonably
required for the proper performance of the Services.

 

3.2           The Company will file an
application tending to obtain the benefit of the special tax regime for foreign
executives temporarily assigned to Belgium, as provided for by the Circular of August 8,
1983. The Manager agrees to fully cooperate and to provide all documents and information required in the framework of such application.

 

3.3           Assuming (under all
reservation) that the Belgian tax authorities will grant the benefit of the special
tax regime for foreign executives in the Manager’s respect, the Manager will be
responsible for keeping track of his foreign business travelling. As such, the
Manager is required to keep copies of, amongst others, expense reports,
transport documents (with boarding passes where available), fuel costs, hotel
bills, mobile phone bills, etc. to justify the applicable business travel
exclusion rate.

 

4

 

Article 4
- Compensation of the Manager

 

4.1           Subject to the availability of the Manager for the
performance of the Services during at least 195 service days per calendar year,
the Manager will be entitled to a fixed annual fee of EUR 252,810 gross payable
according to article 4.6. The fixed fee will be increased to EUR 266,184
effective December 1, 2008 and will thereafter be reviewed by the Parties
at least every 15 months.

 

If the Manager is during any
calendar year unable to perform the Services during at least 225 service days
per calendar year, the annual fee will be
reduced accordingly pro rata temporis. To the extent possible such reduction
will be corrected on the remaining monthly fee for the month of December or
in any other appropriate manner indicated by the Company on the basis of the
following correction formula: (fixed annual fee X 1/225 = daily fixed fee) X
(number of service days below 225 service days per year).

 

4.2           The Manager’s
gross compensation package is deemed to include certain tax free allowances
(reimbursement of expenses proper to the company) which are intended to cover
the extra expenses resulting from the Manager’s temporary relocation to
Belgium. Assuming the Belgian tax authorities will grant the benefit of the
special tax regime for foreign executives in the Manager’s respect, said
allowances will be calculated in accordance with the guidelines of the
technical note, established by the Belgian tax authorities in the framework of
said special tax regime.

 

4.3.          As long
as the Manager maintains a Belgian place of abode, the Company will reimburse
his Belgian housing costs up to a maximum of EUR 48,000 per year. The Manager
acknowledges that such payment constitutes a taxable benefit in kind part of
which only a fraction can be considered as a tax free allowance, assuming that
the special tax regime for foreign executives will be granted, in accordance
with the guidelines of the technical note as referred to on article 4.2.

 

4.4           The Manager will be entitled to receive a school
allowance capped at EUR 62,000 in connection with his children attending an
international school in Belgium during his temporary Belgian stay. Said allowance
will cover a one time registration fee and the tuition fee. The local transport
costs and other costs imposed by said school will be paid by the Manager. Entitlement
to the schooling allowance is subject to submission of invoices relating to the
present type of expenses.

 

4.5           [Intentionally omitted.]

 

4.6           The
fixed annual fee will be due in twelve equal installments at the end of each
month (without prejudice, however, to the possible reduction as referred to in
the second paragraph of article 4.1 of this Agreement) and is subject to the
applicable tax withholdings. The Company will set up the appropriate payroll
for this purpose.

 

4.7           The Company will have the right to make the payment of the monthly
installments conditional on the submission of work documentation reflecting the
service days during which the Services have been performed during the relevant
month or during the calendar year as the case may be.

 

4.8           The Manager can participate in a variable
compensation scheme, of which the terms and conditions are unilaterally
determined by the Board. The amount of the variable compensation will depend on
the level of achievement of targets, i.e. business performance against
operating plan, established every year by the Board and is payable in the month
of March or 

 

5

 

April of the
following year. The amount of the variable compensation will be determined by
the Board in its sole discretion and is not guaranteed.

 

4.9           The
Manager will be affiliated to the applicable insurance schemes, providing
medical, death and disability coverage as well as additional retirement
benefits which all constitute taxable benefits subject to the applicable tax withholdings as
applicable. The level of benefits will be equivalent to the level of coverage
before joining the Company.

 

4.10         The
Company will put a company car at the Manager’s disposal. The Manager may
select a car model up to an annual cost of EUR 15,000 per annum excluding VAT. Alternatively, if more appropriate the Company will pay allowances to the
Manager at the level of EUR 1,250  per
month.

 

4.11         All
payments to be made to the Manager will be subject to deduction of all withholdings
required under any applicable laws and regulations. In addition, and if
applicable, the Company will declare a benefit in kind relating to the use of
the company car, which will be evaluated on the basis of the applicable rules and
regulations and in function of the position of the tax administration. The
Manager expressly agrees that the Company is entitled to deduct any
withholdings legally required to be made in respect of any amounts and benefits
(including benefits in kind) due to him, from any amounts payable to him in
cash and without restriction.

 

Article 5
- Expenses

 

5.1           The fixed annual fee will cover all costs
incurred by the Manager in the framework of the performance of the Services,
with the exception only of reasonable expenses in relation to business travel and lodging expenses actually
incurred or paid by the Manager in the performance of his Services under this
Agreement.

 

5.2           The Company will pay or reimburse the
Manager for any such expenses upon presentation of the appropriate supporting
documents as the Company may reasonably require and, if the nature and amount
would so require, subject to prior approval by the Company.

 

5.3           The expenses will be due at the end of each
month together with the instalment of the fixed fee and will be payable within
the same time period as set forth in article 4.6 of this Agreement.

 

5.4           To the extent that no company car is put at
the manager’s disposal, the Company will reimburse the Manager for using his
private car for professional purposes in accordance with maximum reimbursements
as provided by Belgian legislation. The maximum amount of professional
kilometres is 24,000 km per annum.

 

6

 

Article 6
- Duration and Termination

 

6.1           This Agreement is entered into for an
unlimited term and is effective as of September 1, 2008.

 

6.2           Each Party will have the right to terminate
this Agreement at all times subject to a prior notice period of 1 (one) month
to be notified by registered mail, which becomes effective on the next working
day following its dispatch, or alternatively with immediate effect subject to
the payment of an equivalent indemnity in lieu of notice equal to 1 (one)  monthly
instalments of the fixed annual fee as set forth in article 4.1 of this
Agreement.

 

6.3           In
case of termination of this Agreement by the Company for a cause not covered
under article 6.6.2 below, the Company will pay an indemnity equivalent to 10
monthly instalments of the fixed annual fee as set forth in article 4.1 of this
Agreement.

 

6.4           The
Company may at its option terminate this Agreement at all times in the event

 

6.4.1        that the Manager
would on a permanent basis be no longer available to render the Services or if
in any calendar year his unavailability to render the Services will exceed a
total of three (3) months (not necessarily consecutively).

 

6.5           The
Manager can terminate this Agreement at all times with immediate effect,
without prior notice or indemnification, in the event of bankruptcy,
composition with creditors, the appointment of a trustee, or the liquidation of
or with respect to the Company.

 

6.6           Both
Parties can terminate this Agreement at all times with immediate effect,
without prior notice and, in the case of 6.6.2 only, without indemnification,
in the event:

 

6.6.1        that
the other Party would be in breach, other than a serious breach as referred to
in article 6.6.2. of this Agreement, of a contractual obligation and would fail
to remedy such breach within fifteen (15) days following a written warning by
registered mail to correct the deficiency;

 

6.6.2        of a
serious breach of this Agreement by the other Party, or of a serious misconduct
or serious negligence by the other Party with respect to or affecting this
Agreement.

 

7

 

Article 7
- Confidentiality and Proprietary Information

 

7.1           The
Manager agrees to regard and preserve as confidential all information, whether
in writing or in other tangible or intangible form, relating to the business of
the Company, or any of the Company’s customers or suppliers that has not
previously been publicly released by duly authorized representatives of the
Company and will include (but will not be limited to) information encompassed
in all proposals, marketing and sales plans, financial information, costs,
pricing information, computer programs, consumer information, customer lists,
and all methods, concepts, know-how or ideas in or reasonably related to the
business of the Company or any of the Company’s customers (hereinafter referred
to as “Proprietary Information”)
during the term of this Agreement and for a period of  five (5) years following its
termination.

 

7.2           The
Manager will not, without the prior written approval from the Company, directly
or indirectly, use for his benefit or purposes, nor disclose to others, during
the term of this Agreement and for a period of five (5) years following
its termination, except as required for carrying out the Services under this
Agreement, any such Proprietary information.

 

7.3           The
Manager agrees not to remove from the premises of the Company or any customer
of the Company, except to the extent required to perform the Services or except
as specifically authorized in writing by the Company, any document or object
containing or reflecting any Proprietary information.

 

7.4           All
Proprietary Information and all of the Manager’s interest in trade secrets,
trademarks, computer programs, customer information, customer lists, employee
lists, products, procedures, copyrights, patents and developments, developed by
the Manager as a result of, or in connection with the services carried out
under this Agreement, will be the property of the Company.

 

7.5           The
Manager will upon termination of this Agreement immediately return to the
Company all equipment, software, documents (including documents established by
the Manager for or in connection with the Company’s business), business
information and other proprietary data which have been made available or
established, irrespective of the carrier and without retention of any copies.

 

7.6           In
case of violation of this confidentiality and Proprietary Information
undertaking, the Company will have the right to claim all justified damages in
addition to any other remedy the Company may be entitled to.

 

8

 

Article 8
- Intellectual Property Rights

 

8.1           The Manager explicitly agrees that all
inventions, projects, drawings, processes and improvements of any nature
whatsoever, including rights on patents, designs, databases, software (or
rights on the application for registration of such rights) (hereinafter
referred to as the “Intellectual
Property Rights”) of which he would become during the term of
this Agreement the author or co-author and which relate to the business of the
Company, will be the exclusive property of the Company and the Manager
undertakes to make full and prompt disclosure without compensation of all
relevant documents and data in favour of the Company and to provide all
necessary co-operation to secure for and / or to assign to the Company all
monetary Intellectual Property Rights.

 

8.2           [Intentionally omitted.]

 

8.3           The normal fixed fees as set forth in article
4.1 of this Agreement will be deemed to cover Manager’s compensation for the
Intellectual Property Rights so assigned.

 

Article 9
- Assignment of Rights

 

9.1           The assignment of the rights and obligations
of the Manager under this Agreement and the subcontracting by the Manager of
the Services or part thereof must be approved in advance and in writing by the
Company.

 

9.2           The Company may assign its rights and
obligations under this Agreement in whole or in part to other Members of the
Group provided such assignment will not have adverse consequences for the
performance of the Manager’s mission.

 

Article 10
- Tax and Social Security

 

10.1         The
Manager will diligently comply with all legal and contractual provisions to
which he is subject and will be exclusively responsible for compliance with all
his obligations under the income tax and / or social security legislation or
any other legislation such as, amongst others, the Manager’s obligation to
affiliate himself to the Belgian social security regime as a self employed
remunerated director.

 

The Company will provide the
assistance of a tax advisor in order to complete his annual income tax
statement and Belgium Social Security obligations.

 

The Manager will indemnify the
Company and the Group Companies for all claims that would be made against the
Company or Group Companies by any third party or administration because of intentional
non-compliance by the Manager with any of its legal obligations and for any
claim that would be made against the Company or Group Companies on the basis of
or in relation to this Agreement and the Services carried out under this
Agreement.

 

Article 11
- Miscellaneous

 

11.1         This Agreement constitutes the entire understanding of
the Parties and supersedes any prior agreements or understandings, written or
oral, between the Company, the Manager with respect to the subject matter of
this Agreement.

 

11.2         If any provisions of this Agreement are held to be
invalid or illegal in whole or in part, this Agreement will continue to be
valid as to its other provisions and to the remainder of the 

 

9

 

affected
provision. The Parties undertake to replace the invalid provision by a
provision having the same effects and objectives.

 

11.3         Any amendment to this Agreement or modification of the
obligations of a Party has to be agreed upon in writing by all Parties.

 

Article 12
- Applicable Law - Competent Courts

 

12.1         This
Agreement will be governed by Belgian law.

 

12.2         Any
dispute in connection with the conclusion, interpretation or the performance of
this Agreement will be submitted to the competent courts of Brussels.

 

IN WITNESS WHEREOF, the Parties hereto have initialled each page of this
Agreement, and have signed and executed this Agreement in two (2) originals
on the day and year first written above, and each Party acknowledges the
receipt of one original.

 

 

(1)           GENPACT
ONSITE SERVICES INC.

 

	
  By:

  	
   

  	
  /s/ Heather White

  	
   

  
	
   

  	
  Name:

  	
  Heather White

  
	
   

  	
  Title:

  	
  Officer

  
					

 

(2)           Mr. Patrick
Cogny

 

	
  By:

  	
   

  	
  /s/ Patrick Cogny

  	
   

  
	
  Name:

  	
  Patrick Cogny

  

 

10

 

ANNEX A:

 

In exercising the Services
as set forth in article 1.2 of this Agreement, the Manager will, amongst
others, have the following day to day duties and responsibilities:

 

1)         Sign
the daily correspondence.

 

2)         Draw and receive from the National Bank of
Belgium, the Belgian Treasury, and from any public pay-offices,
administrations, companies or persons, any sums or bills which might be due to
the branch as and for principal, interest and charges, for any reason
whatsoever; give good and valid receipt and release, in the name of the branch,
for any sums or bills received.

 

3)         Withdraw in the name of the branch, from the
post office, customs, forwarders and railways and/or receive at the branch’s
address, all letters, boxes, parcels, packages, whether or not registered or
insured, containing items of value or not; receive all deposits; present bills
of lading, airway bills and all other necessary documents, sign all instruments
and discharges.

 

4)         Establish inventories or dismiss all agents
and employees of the branch, fix their emoluments, commissions, salaries,
gratifications, as well as all other conditions of their employment and of
their separation.

 

5)         Make application for all registrations or
modifications at the Clerk’s Office of the Commercial Court and the Company
Office.

 

6)         Apply for the affiliation of the branch to
any professional organization.

 

7)         Represent the branch before all public and
private administrative bodies.

 

8)         Open and close in the name of the branch all
postal checking accounts or banking accounts at financial institutions and make
all deposits on or withdrawals from these accounts.

 

9)         Have such banking powers as are specifically
notified to the Company’s and branch’s depositories.

 

10)       Enter into or ratify all contracts for the
renting of real or personal property in Belgium and particularly for the
establishment of office premises, register such lease and, in general, to
everything necessary relating thereto.

 

11)       Engage in all normal commercial activities.

 

12)       Delegate to one or more persons such part of
his powers as he will determine and for such time as he will establish.

 

13)       Generally, to do, perform and execute all
such matters, acts, or things as may be necessary and proper to conduct and
carry out the ordinary business of the branch to the best interests of the
branch.

 

14)       Draw
up all documents and sign all papers in order to be able to exercise the powers
listed above.

 

11

 

15)       Adopt
all necessary measures to implement the resolutions and recommendations of the
Board of Directors of the Company in his capacity of CEO for Genpact Europe.

 

And in general,
all assistance that can be reasonably requested in relation with the business
operations of the Company as indicated by the Company.

 

IN WITNESS WHEREOF, the Parties hereto have initialled each page of this Annex A,
and have signed and executed this Annex A in two (2) originals on the day
and year first written above, and each Party acknowledges the receipt of one
original.

 

(1)           GENPACT
ONSITE SERVICES INC.

 

 

	
  By:

  	
   

  	
   

  	
  /s/ Heather White

  	
   

  
	
   

  	
  Name:

  	
  Heather White

  
	
   

  	
  Title:

  	
  Officer

  
						

 

 

(2)           Mr. Patrick
Cogny

 

 

	
  By:

  	
   

  	
  /s/ Patrick Cogny

  	
   

  
	
  Name:

  	
  Mr. Patrick Cogny

  

 

12Exhibit 10(j)-2

 

TCF EMPLOYEES STOCK PURCHASE PLAN—

SUPPLEMENTAL PLAN

 (As amended and restated
effective January 1, 2008)

 

I.                                         Purpose of Plan; Effective Date of Plan

 

The purpose of the TCF Employees Stock Purchase
Plan—Supplemental Plan (the “Plan”) is to provide Eligible Employees with
supplemental retirement benefits as set forth herein to remedy certain
limitations or reductions in benefits under the Internal Revenue Code (“IRC”),
as set forth herein, to such Employees under the TCF Employees Stock Purchase
Plan (“ESPP Plan”).  The Plan was
originally effective for benefits based on Covered Compensation earned in
calendar year 2005 and thereafter.  The
Company hereby adopts this amendment and restatement effective January 1,
2008.  A previous plan, the Supplemental
Employee Retirement Plan — ESPP Plan (the “Previous Plan”) was and remains in
effect for benefits based on Covered Compensation earned in calendar year 2004
and before and is a separate stand alone plan. 
This Plan does not make any material modifications to the Previous
Plan.  This Plan is intended to be exempt
from the participation, vesting and funding provisions of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), and is intended
to be maintained “primarily for the purpose of providing deferred compensation
for a select group of management or highly compensated employees” within the
meaning of §§ 201(2), 301(a)(3) and 401(a)(1) of ERISA.

 

The Plan is intended to satisfy the requirements for
nonqualified deferred compensation plans set forth in IRC § 409A, and it shall
be interpreted, administered and construed consistent with said intent.

 

This Plan is also intended to be a plan, program, or
arrangement under 4 U.S.C. section 114 (the “State Taxation of Pension Income
Act of 1995”) maintained solely for the purpose of providing retirement
benefits for employees in excess of the limitations imposed by one or more of
IRC sections referenced in such Act on contributions or benefits in qualified
plans such as the ESPP Plan, and to be an “excess plan” as defined in Rule 16b-3
of the Securities and Exchange Commission.

 

II.                                     Definitions.  Whenever used in this Plan,
the following terms shall have the respective meanings set forth below, unless
a different meaning is required by the context in which the word is used. When
the defined meaning is intended, the term is capitalized.  Capitalized terms not otherwise defined
herein shall have the meaning set forth in the ESPP Plan.

 

(a)          Affiliate; Affiliated Group.  “Affiliate” means any entity which is
required to be aggregated with TCF Financial as a member of a controlled group
of corporations 

 

1

 

in accordance with IRC § 414(b), or as a trade
or business under common control in accordance with IRC § 414(c).  [The requirements of IRC §§ 414(b) and
414(c) shall be applied using the 80% standard specified therein for all
purposes of the Plan, including, without limitation, for the purpose of
determining whether a Participant has had a Separation from Service.]  The term “Affiliated Group” means the Company
and its Affiliates.

 

(b)         Annual
Bonus.   
“Annual Bonus” is the annual cash bonus, if any, payable to an Eligible
Employee under any annual bonus program of the Company that meets the
requirements for performance-based compensation under IRC § 409A and the
regulations thereunder.

 

(c)          Change in
Control. 
“Change in Control” with respect to an Employer shall mean a change in
ownership with respect to the Employer or TCF Financial Corporation (as defined
in Treasury Regulation § 1.409A-3(i)(5)(v)), a change in effective control of
TCF Financial Corporation (as defined in Treasury Regulation §
1.409A-3(i)(5)(vi)) provided, however, that the ownership percentage shall be
50%, or a change in the ownership of a substantial portion of the assets of the
Employer or TCF Financial Corporation (as defined in Treasury Regulation §
1.409A-3(i)(5)(vii)).

 

(d)         Commissions.   “Commissions” shall mean amounts payable to
Eligible Employees and credited to them as “commissions” by their Employer in
connection with products or services they have sold. Commissions include any
draw paid as an advance against Commissions.

 

(e)          Committee.  The Compensation Committee
of the Board of Directors of TCF Financial Corporation (“TCF Financial”), or a
special sub-committee thereof, which shall consist only of individuals who
qualify as independent directors under Rule 303A of the listing standards
of the NYSE as applicable to compensation committee members, as non-employee
directors under Rule 16b-3 of the Securities and Exchange Commission and
as outside directors for purposes of IRC section 162(m) (“million dollar
cap”).

 

(f)            Covered
Compensation. 
 “Covered Compensation” is any “Basic
Compensation” as defined in the ESPP Plan including such Compensation in excess
of the limit on Basic Compensation under IRC § 401(a)(17) earned by a
Participant in any Plan Year, and also including any amounts which would have
been Basic Compensation (disregarding any limit on Basic Compensation under IRC
§ 401(a)(17) in such Plan Year) except that such Participant authorized the
Employer before the beginning of the Plan Year in which such Compensation was
earned (or in the case of an Annual Bonus, six months prior to the end of the
performance period) to defer such amounts which would otherwise be deferred
under the ESPP Plan to this Plan.

 

(g)         Eligible
Employee.    An “Eligible Employee” is an employee of an
Employer who is designated as eligible to participate in this Plan in
accordance with the provisions of Article III(a).

 

2

 

(h)         Employer.  “Employer” means TCF Financial
and each of its subsidiaries that constitutes an Affiliate.

 

(i)             ESPP Plan.  The “ESPP Plan” is the TCF
Employees’ Stock Purchase Plan as amended from time to time.

 

(j)             IRC.  The “IRC” is the Internal
Revenue Code of 1986, as amended.

 

(k)          Participant.  A “Participant” is an
Eligible Employee who has elected to participate in this Plan in accordance
with the provisions of Article IV(a).

 

(l)             Plan
Administrator. 
The “Plan Administrator” of this Plan is the Committee.

 

(m)       Plan Year.    The “Plan Year” is the calendar year.

 

(n)         Salary.  “Salary” is the Eligible
Employee’s Covered Compensation, excluding Annual Bonus.

 

(o)         SERP
Employee Contributions.  “SERP Employee Contributions” is any portion
of a Participant’s Covered Compensation which such employee has elected to have
treated as SERP Employee Contributions under Article IV of this Plan.

 

(p)         TCF
Financial.  “TCF Financial” or “Company” is TCF Financial
Corporation, a Delaware Corporation.

 

(q)         TCF
Financial Stock.  “TCF Financial Stock” is
common stock of TCF Financial, par value $.01 per share.

 

III.                                 Eligibility

 

(a)                                  General Eligibility.  Employees of an Employer are
eligible to participate in this Plan as determined by the Committee, in its
discretion subject to the following:

 

(i)            No
employee shall be eligible to participate in this Plan unless the Committee
determines that such employee will be for that Plan Year a member of “a select
group of management or highly compensated employees” within the meaning of §§
201(2), 301(a)(3) and 401(a)(1) of ERISA.

 

(ii)           The
Committee shall select such employees for eligibility in this Plan on a Plan
Year by Plan Year basis by promulgating a written statement describing or
listing such Eligible Employees. 
Selection for one Plan Year does not entitle the employee to be selected
the next Plan Year.  An employee who has
been selected by the Committee shall, however, be presumed to be selected for
the subsequent Plan Year unless and until the Committee evidences a contrary
intention.

 

3

 

Notwithstanding the foregoing, no employee shall be
eligible for benefits under this Plan with respect to a particular Plan Year if
the employee is not also an Active Participant in the ESPP Plan for that
year.  Individuals who become employees
of an Employer as a result of a merger or acquisition shall not be eligible to
participate under this Plan unless and until the Committee has identified them
as Eligible Employees pursuant to this section (a).

 

(b)                                  Specific Exclusions.  Notwithstanding anything
apparently to the contrary in the Plan document or in any written
communication, summary, resolution or document or oral communication, no
individual shall be an Eligible Employee in this Plan, develop benefits under
this Plan or be entitled to receive benefits under this Plan (either for
himself or herself or his or her survivors) unless such individual is a member
of “a select group of management or highly compensated employees” within the
meaning of §§ 201(2), 301(a)(3) and 401(a)(1) of ERISA. If a court of
competent jurisdiction, any representative of the U.S. Department of Labor or
any other governmental, regulatory or similar body makes any direct or
indirect, formal or informal, determination that an individual is not in “a
select group of management or highly compensated employees” within the meaning
of §§ 201(2), 301(a)(3) and 401(a)(1) of ERISA, such individual shall
no longer be an Eligible Employee in this Plan.

 

IV.                                Supplemental Benefits Related to the ESPP Plan.

 

(a)           SERP Employee Contributions.

 

An Eligible Employee who elects to participate in
this Plan for the Plan Year will defer compensation under this Plan in an
amount that equals the amount that exceeds limitations on such Employee’s
contributions to the ESPP Plan imposed by the ESPP Plan to effectuate the
requirements of IRC §§ 401(a)(17), 401(k)(3), 401(m)(2), 402(g) and 415
(the “IRC Limitations”) provided that:

 

(i)            Prior
to the beginning of each Plan Year, an Eligible Employee who elects to
participate in this Plan for the Plan Year authorizes the Employer to reduce
the Participant’s compensation by the amount by which such Employee’s Salary
and/or Commission deferral contribution elected under the ESPP Plan is limited
by the IRC Limitations, and credit such amount to the Participant’s account
under this Plan as the Employee’s SERP Employee Contributions for the Plan
Year.

 

(ii)           Prior
to June 30 of each Plan Year, an Eligible Employee who elects to
participate in this Plan for the Plan Year authorizes the Employer to reduce
the Participant’s Annual Bonus by the amount by which such Employee’s Annual
Bonus contribution elected under the ESPP Plan is limited by the IRC
Limitations, and credit such amount to the Participant’s 

 

4

 

account under this Plan as the Employee’s SERP
Employee Contributions for the Plan Year.

 

For each Plan Year an Eligible Employee elects to
participate in this Plan and as a condition to receiving benefits from this
Plan for that year, the Employee shall, prior to the first day of the Plan
Year, irrevocably agree: (i) to make pre-tax contributions to the ESPP
Plan equal to the maximum amount permitted under the ESPP Plan and (ii) not
to make changes to pre-tax contributions to the ESPP Plan at any time during
such Plan Year.

 

Any election by an Eligible Employee of SERP
Employee Contributions pursuant to this section (a) shall be in writing,
shall be made prior to the beginning of the Plan Year in which the services are
performed (or with respect to the Annual Bonus, the date the election is
required under paragraph (ii), above), shall be irrevocable when received by
the Employer, and shall be applicable to all Covered Compensation earned during
such Plan Year.  Employees who first
become Eligible Employees after the beginning of the Plan Year may elect to
participate in this Plan within thirty (30) days after becoming Eligible
Employees provided such election only applies to Salary and/or Commissions
earned after the election is received by the Employer.  This election shall not be available to an
Employee who has previously been eligible to participate in any other plan
maintained by a member of the Affiliated Group that is required to be
aggregated with this Plan under Treasury Regulation § 1.409A-1(c).  For purposes of the Annual Bonus, such
election only applies to total bonus compensation for the performance period
for such Bonus, multiplied by the ratio of the number of days remaining in the
performance period after the election is made over the total number of days in
the performance period.

 

Notwithstanding the foregoing, any increase or
decrease in a Participant’s SERP Employee Contributions for a taxable year that
results from the Participant’s action or inaction under the ESPP with respect
to pre-tax contributions subject to the contribution restrictions under IRC
§§  401(a)(30) or 402(g), including an adjustment to a deferral election
under the ESPP, shall not exceed the limit with respect to elective deferrals
under IRC § 402(g)(1)(A), (B), and (C) in effect for the taxable year
in which such action or inaction occurs.

 

(b)                                  Employer Matching Contributions.  At the same time as an amount of SERP
Employee Contributions is deferred under paragraph (a), the Employer shall also
credit to the Participant’s account under this Plan the amount of Employer
Matching Contribution that would be due under the ESPP Plan with respect to
such SERP Employee Contributions if they had been contributed as pre-tax
elective deferrals under the ESPP Plan. 
No Participant in the Plan shall be credited with Employer Matching
Contributions with respect to pre-tax deferrals (to this Plan and the ESPP
Plan, combined) that exceed 6% of the Participant’s Covered Compensation for
each payroll period.

 

5

 

Notwithstanding the foregoing, in no event shall the
sum of a Participant’s Matching Contributions exceed 100% of the matching
contribution the Participant would have received under the ESPP, absent any
plan-based restrictions that reflect limits on qualified plan contributions
under the Internal Revenue Code.

 

For purposes of determining the amount of Employer
Matching Contributions, no more than $250,000 of a Participant’s Commissions
payable during the Plan Year shall be included in Covered Compensation.

 

(c)                                  Establishing Accounts; Investment of Accounts; Valuation of Accounts.  On the date that a Contribution
under paragraph (a) or (b) would be paid to the ESPP Plan if it were
a contribution to that Plan (the “contribution date”), the amount of such
Contribution shall be credited to an account on the books of the Employer and
shall be deemed as of such date to be invested as directed by the
Participant.  SERP Employee contributions
shall be deemed to be invested in such investment fund options available under
the ESPP Plan or in TCF Financial Stock, as elected by the Participant.  Employer Matching Contributions will be
deemed invested in TCF Financial Stock. 
Actual or notional earnings from such deemed investments shall be
credited to the Participant’s account at least annually.

 

Each Participant’s account in the Plan shall be
divided into two sub-accounts:  a “TCF
Stock Account” and a “Diversified Account.” 
All shares of common stock of TCF Financial that are deemed to be held
in a Participant’s account on the Effective Date shall be allocated as of that
date to the participant’s TCF Stock Account. 
Any new amounts credited to a Participant’s account on or after the
Effective Date shall be allocated to either the Participant’s TCF Stock Account
or Diversified Account.  The Sub-Accounts
shall operate as follows:

 

                (i)            The TCF Stock Account shall be
deemed to be invested solely in shares of TCF Financial Stock (and in cash or
cash equivalent money market funds for fractional shares or for funds held
temporarily prior to investment).  The
Diversified Account shall not at any time be deemed to be invested in any
shares of TCF Stock.  No transfer of
assets will be permitted from the TCF Stock Account to the Diversified Account
or from the Diversified Account to the TCF Stock Account.

 

                (ii)           A Participant’s TCF Stock Account
will be deemed to be invested in all shares of TCF Financial Stock allocated to
it on or after the Effective Date and such shares shall not be subject to any
deemed sale, transfer, assignment, pledge or other hypothecation in any
manner.  Any distributions from the Plan
to the participant with respect to the TCF Stock Account will be made in the
form of an in-kind distribution of the number of shares of TCF Financial Stock
deemed to 

 

6

 

be held for such Participant’s TCF Stock Account
pursuant to the terms of the Plan.

 

                (iii)          The Diversified Account shall not at
any time be deemed to purchase or invest in any shares of TCF Financial Stock,
but shall be deemed to invest in such investment funds as may be approved by
the Committee and as the participant directs.

 

                (iv)          The portion of the Participant’s
account that is deemed to be invested in TCF Financial Stock shall be increased
to reflect the number of shares of TCF Financial Stock deemed to be purchased
as of each future contribution date (including any fractional shares), and
shall be further adjusted to reflect any stock splits or other similar events
involving a change in the number or form of outstanding shares of TCF Financial
Stock.  Adjustments shall be determined
in each case by the Committee and the Committee’s determination shall be
final.  The balance of shares of TCF
Financial Stock shall in no event be decreased.

 

                (v)           If any dividends are paid with
respect to TCF Financial Stock, then in lieu of any adjustments to the
Participants’ accounts under the Plan, an amount shall be paid in cash (or in
stock, if the dividend is in stock, provided that stock splits in the nature of
a stock dividend shall not be distributed) directly to the Participant whose
account would otherwise be deemed to be due the deemed dividend and the
Participant’s account shall not be credited with the deemed dividend.  Such dividends shall be paid by a date not
later than the 15th day of the third month following the calendar year for
which the credited to the Participant’s account.  The time and form of payment of such
dividends is treated separately from the time and form of payment of the
underlying deferred compensation.

 

                (vi)          In the event of a Change in Control
and the Company is not the surviving corporation, a Participant will be given
the opportunity to elect out of TCF Stock and into one or more investment fund
options then provided under the ESPP Plan.

 

(d)                                  Distributions from Accounts.

 

General Distribution Rules.  A Participant shall receive payment of his or
her entire vested account in a single lump sum distribution (less applicable
withholding) on the first to occur of the following in accordance with Appendix
B:

 

                (i)            Separation from Service.  Payment shall be made during the 90 day
period commencing six month after the Participant’s Separation from Service
with the Affiliated Group as defined in Treasury Regulation 1.409A-1(h).  If 

 

7

 

Separation from Service occurs as a result of death,
payment shall be made within 90 days following the Participant’s death.

 

                (ii)           Disability (Disabled).  In the event of Disability, payment shall be
made 30 days after such Disability occurs. 
For purposes of this section, a Participant is considered Disabled if he
or she is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under the long-term
disability plan of the Participant’s Employer.

 

                (iii)          Date Certain.  Payment shall be made on a date specified by
the Participant on or before the date 30 days after the Employee first becomes
eligible for this Plan (and any other plan maintained by a member of the
Affiliated Group that is required to be aggregated with this Plan under
Treasury Regulation § 1.409A-1(c)). 
This provision shall not apply to any amounts attributable to SERP
Employee Contributions or Employer Matching Contribution credited after the
specified date.

 

                (iv)          Change in Control.  If designated by a one time irrevocable
election by the Participant made on or before the date 30 days after the
Employee first becomes eligible for this Plan (and any other any other plan
maintained by a member of the Affiliated Group that is required to be
aggregated with this Plan under Treasury Regulation § 1.409A-1(c)), in the
event of a Change in Control, the lump sum payment shall occur on or about 30
days after the date one year after the Change in Control.

 

                (v)           Unforeseeable Emergency.  In the event of an unforeseeable emergency,
as defined in IRC § 409A and the regulations thereunder, payment shall be made
within 90 days following the Committee’s determination that an unforeseeable
emergency has occurred.  Payment shall be
limited to the amount reasonably necessary to satisfy the emergency.  However, the amount of the payment may
include any amounts necessary to pay any federal, state or local income taxes
or penalties reasonably expected to result from the payment.

 

(e)                                  Cancellation of Deferrals Following an Unforeseeable Emergency or
Hardship Distribution.

 

A Participant’s deferral election shall be cancelled
with respect to Covered Compensation earned after receipt of a hardship
distribution pursuant to Treasury Regulation § 1.401(k)-1(d)(3) or an
unforeseeable emergency distribution under
Article IV(d)(v) of this Plan. 
Participants may not restart contributions to this Plan pursuant to Article IV(a) until
the first day of the first Plan Year that begins at least six months after
receipt of the hardship distribution or unforeseeable emergency distribution.

 

8

 

V.                                    Vesting.

 

A Participant shall be entitled to a benefit from
the Employer Matching Contributions equal to his or her account balance
attributable to such Contributions multiplied by the vesting percentage
determined under the ESPP Plan that is applicable to the Participant under the
ESPP Plan.  In the event the Participant
forfeits a portion of the account, and is subsequently reemployed, the
forfeited portion shall be reinstated in the same manner as provided under the
ESPP Plan.  Notwithstanding the foregoing,
Participants with an account balance in the Plan on March 31, 2006 shall
be subject to the vesting provisions of the Plan in effect on that date.

 

VI.                                Committee.

 

The Committee shall have full power to construe,
interpret and administer this Plan, including to make any determination
required under this Plan and to make such rules and regulations as it
deems advisable for the operation of this Plan. 
The Committee shall have sole and absolute discretion in the performance
of their powers and duties under this Plan. A majority of the Committee shall
constitute a quorum. Actions of the Committee shall be by a majority of persons
constituting a quorum and eligible to vote on an issue.  Meetings may be held in person or by
telephone.  Action by the Committee may
be taken in writing without a meeting provided such action is executed by all
members of the Committee.  To the extent
it is feasible to do so, determinations, rules and regulations of the
Committee under this Plan shall be consistent with similar determinations, rules and
regulations of the ESPP Plan. All determinations of the Committee shall be
final, conclusive and binding unless found by a court of competent jurisdiction
to have been arbitrary and capricious. The Committee shall have authority to
designate officers of TCF Financial and to delegate authority to such officers
to receive documents which are required to be filed with the Committee, to
execute and provide directions to the Trustee and other administrators, and to
do such other actions as the Committee may specify on its behalf, and any such
actions undertaken by such officers shall be deemed to have the same authority
and effect as if done by the Committee itself.

 

VII.                            Benefits Unfunded.

 

The rights of beneficiaries, survivors and participants
to benefits from this Plan are solely as unsecured creditors of their
Employers.  Benefits payable under this
Plan shall be payable from the general assets of the Employers and there shall
be no trust fund or other assets secured for the payment of such benefits.  In its discretion, an Employer may purchase
or set aside assets, including annuity policies or through use of a grantor
trust, to provide for the payment of benefits hereunder but such assets shall
in all cases remain assets of the Employer and subject to the claims of the
Employer’s creditors. This Plan constitutes a mere promise by the Employers to
make benefit payments in the future, and it is intended to be unfunded for tax
purposes and for purposes of Title I of ERISA.

 

9

 

VIII.                        Beneficiaries and Survivors.

 

A Participant’s beneficiary or survivor under Article IV
of this Plan shall be the same as the person(s) designated as such
pursuant to or under the provisions of the ESPP Plan, unless the employee has
designated in writing and filed with the Committee a different beneficiary for
this Plan.

 

IX.                                Amendments, Claims Procedure

 

(a)                                  In General.  The Committee may amend the
Plan prospectively, retroactively or both, at any time and for any reason
deemed sufficient by it without notice to any person affected by this Plan and
may likewise terminate this Plan as provided in Article X with regard to
persons expecting to receive benefits in the future.  The benefit, if any, payable to or with
respect to a Participant as of the effective date of such amendment or the
effective date of such termination shall not be, without the knowing and
voluntary written consent of the Participant (which consent shall only be
effective to the extent it does not result in the imposition of an excise tax
on the Participant under IRC § 409A), diminished or delayed by such
amendment or termination.

 

(b)                                  After a Change-in-Control.  Notwithstanding the provisions of Article IX(a),
after the occurrence of a Change-in-Control, the Committee’s authority to amend
the Plan or terminate the Plan as provided in section (a) shall be subject
to the following limitations.

 

(i)                                     Existing
Participants.  During the
two year period following the date a Change-in-Control with respect to TCF
Financial occurs, the Committee may only amend the Plan or terminate this Plan
as applied to Participants who are Participants immediately preceding the date
of the Change-in-Control if:

 

(1)                                  all benefits
payable to or with respect to persons who were Participants as of the
Change-in-Control (including benefits earned before and benefits earned after
the Change-in-Control) have been paid in full prior to the adoption of the
amendment or termination, or

 

(2)                                  eighty (80)
percent of all the Participants determined as of the date of the
Change-in-Control give knowing and voluntary written consent to such amendment
or termination (which consent shall only be effective to the extent it does not
result in the imposition of an excise tax on any Participant under IRC
§ 409A).

 

(ii)                                  New
Participants.  After the
occurrence of a Change-in-Control, as applied to Participants who are not
Participants immediately preceding the date of the Change-in-Control, the
Committee may amend or terminate the 

 

10

 

Plan prospectively, retroactively or both, at any
time and for any reason deemed sufficiently by it without notice to any person
affected by this Plan and may likewise terminate this Plan, subject to the same
restrictions as IX(a).

 

(c)                                  Claims
Procedures.  If a
Participant, or beneficiary or survivor thereof, wishes to make a claim for
benefits or disagrees with a determination of the Committee, such person may
file a claim and make such appeals in the same manner as permitted under the
ESPP Plan.   The claims shall then be
processed as provided for claims under the ESPP Plan, except that all
determinations which would be made by the “Company” under such Plans shall be
made by the Committee instead.

 

X.                                    Plan Termination.

 

The Committee in its discretion may terminate the
Plan and may accelerate distribution of Participant account balances to such
time as the Committee shall determine notwithstanding the provisions of Article IV(d) in
accordance with one of the following:

 

                                                (i)                                     The Plan may be
terminated within 12 months of a corporate dissolution of TCF Financial taxed
under IRC § 331, or with the approval of a bankruptcy court pursuant to 11
U.S.C. 503(b)(1)A), provided that the amounts deferred under the Plan are
included in the Participant’s gross income in the latest of—

 

(1)                                  The calendar
year in which the plan termination and liquidation occurs;

 

(2)                                  The first
calendar year in which the amount is no longer subject to a substantial risk of
forfeiture; or

 

(3)                                  The first calendar
year in which the payment is administratively practicable.

 

(ii)                                  The Plan may be
terminated pursuant to irrevocable action taken by the Employer within the 30
days preceding or the 12  months
following a Change in Control event with respect to TCF Financial.  However, any such termination within the 12
months after such a Change in Control shall require the consent of 80% of the
participants as required in Article IX (which consent shall only be
effective to the extent it does not result in the imposition of an excise tax
on any Participant under IRC § 409A). 
For purposes of this paragraph this Plan will be treated as terminated
only if all plans sponsored by the Affiliated Group immediately after the time
of the Change in Control that are required to be aggregated with this Plan
under Treasury Regulation § 1.409A-1(c)) are terminated, so that each
Participant in the Plan and all participants under substantially similar
arrangements who experienced the Change in Control event are required to receive
all amounts of compensation deferred under the terminated arrangements within
12 months of the date the Employer irrevocably takes all necessary action to
terminate and liquidate all of such plans. 
Solely for purposes of this paragraph (ii), the Employer with the
discretion to terminate the Plan is the service recipient that is

 

11

 

primarily liable immediately after the Change in
Control event for the payment of the deferred compensation.

 

(iii)                               The Plan may be
terminated for any other reason, provided that:

 

(1)                                  the termination
does not occur proximate to a downturn in the financial health of the
Affiliated Group;

 

(2)                                  all plans
sponsored by the Affiliated Group that would be required to be aggregated with
this Plan under Treasury Regulation § 1.409A-1(c) if the same
Employee had deferrals of compensation under all of the plans are terminated
and liquidated with respect to all Participants;

 

(3)                                  no payments
other than those otherwise payable under the terms of the Plan if the
termination had not occurred are made within 12 months of the termination of
the Plan,

 

(4)                                  all payments
are made within 24 months of the termination of the Plan, and

 

(5)                                  no member of
the Affiliated Group adopts a new plan that would be aggregated with any of the
terminated plans under Treasury Regulation § 1.409A-1(c) at any time
for a period of three years following the date of termination of the Plan.

 

(iv)                              Such other
events and conditions as the Commissioner may prescribe in generally applicable
guidance published in the Internal Revenue Bulletin.

 

XI.                                Miscellaneous.

 

(a)                                  Notices under
this Plan to the Employer, TCF Financial or the Committee shall be sent by
Certified Mail, Return Receipt Requested to: Compensation Committee, TCF Financial
Corporation, c/o General Counsel, TCF Financial Corporation, 200 Lake Street
East, Wayzata, MN   55391.  Notices under this Plan to Eligible Employees
or their beneficiaries or survivors shall be sent by Certified Mail to the last
known address for such person(s) on the books and records of the Employer,
by Certified Mail.

 

(b)                                 Nothing in this
Plan shall change a Participant’s status to anything other than an employee “at
will” or otherwise enlarge or modify such Employee’s employment rights or
benefits other than as provided herein.

 

(c)                                  Nothing in this
Plan shall abridge a Participant’s rights, or such Employee’s beneficiary’s or
survivor’s rights, of participation in the ESPP Plan except to the extent the
Eligible Employee agrees to such restrictions.

 

12

 

(d)                                 Expenses of
administering the Plan shall be borne by the Employers in proportion to their
share of Participants in this Plan, provided that an Employees’ Accounts may
reflect deemed transaction costs of acquiring or selling TCF Financial Stock.

 

(e)                                  A Participant’s
benefits under this Plan may not be assigned, transferred, pledged or otherwise
hypothecated by said Employee or the beneficiary or survivor thereof.

 

XII.                            Number of Shares under the Plan/Adjustments for Certain Changes in
Capitalization

 

As of December 31, 2006, 140,862 shares of TCF
Financial Stock were credited to Participant accounts.  On and after January 1, 2006, no more
than an additional 1,000,000 shares of TCF Financial Stock may be credited to
Participant accounts, except that any share credits to a Participant which are
forfeited pursuant to Article (V) may again be credited under the
Plan.

 

If the Company shall at any time increase or
decrease the number of its outstanding shares of Company common stock or change
in any way the rights and privileges of such shares by means of the payment of
a stock dividend or any other distribution upon such shares payable in Company
common stock, or through a stock split, subdivision, consolidation,
combination, reclassification, or re-capitalization involving the Company
common stock, then the numbers, rights and privileges of the shares of Company
common stock that are and may be credited under the Plan shall be increased,
decreased, or changed in like manner as if such shares had been issued and
outstanding, fully paid, and non-assessable at the time of such occurrence.

 

13

 

APPENDIX A RE: IRS NOTICE 2000-56

 

Notwithstanding
anything to the contrary in the Plan or any trust agreement for any related
grantor trust established by an Employer (the “Trust”), TCF Financial stock or
other assets contributed to the Trust by TCF Financial or any other Employer
for the benefit of employees or service providers of TCF Financial or such
Employer are subject to the claims of creditors (in the event of insolvency) of
both TCF Financial and such Employer.  In
addition, such stock and assets are subject to the claims of creditors (in the
event of insolvency) of any Employer from which benefits are due to a
participant or beneficiary under the terms of the Plan. Nothing in this
Appendix, however, shall relieve any Employer of its obligation to pay any
benefits due from the Employer to a participant or beneficiary under the terms
of the Plan.

 

Notwithstanding
anything to the contrary in the Plan or Trust, any TCF Financial stock or other
assets not transferred to an Employer’s employees or their beneficiaries will
revert to TCF Financial upon termination of the Trust.

 

14

 

APPENDIX B

DISTRIBUTION PROCEDURES

 

Timing of Distribution (Lump Sum).

 

·                  Lump Sum – payable during
the 90 day period commencing six months after the employee’s Separation from
Service.

 

Form of Distribution – Stock or Cash

 

All
distributions from a TCF Stock Account are in the form of TCF Financial Stock
plus cash for any fractional share, less tax withholding.  Distributions from a Diversified Account
shall be in the form of cash.

 

Tax Withholding

 

The
minimum required income tax withholding will be automatically deducted from
each distribution unless the employee elects otherwise no less than 30 days
prior to distribution.  The withholding
will be deducted first from the Diversified Plan Account balances, then from
the TCF Financial Stock Account balances. 
Alternatively, participants may pay the withholding by check in lieu of
a deduction from the distribution if they so elect at least 30 days prior to
distribution if they elect at least 30 days prior to distribution.

 

Distributions
will be sent by U.S. Mail to the recipient’s home address on file with the TCF
Legal Department unless the recipient has provided other delivery instructions
in writing.  If the recipient has a stock
brokerage account, distributions can be sent to it electronically.

 

These
procedures are subject to interpretation and application by the Committee,
whose interpretation is final.

 

15

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