Document:

exv10w8

 

Exhibit 10.8

TD BANKNORTH INC.

2005 PERFORMANCE BASED RESTRICTED SHARE UNIT PLAN

AMENDED AND RESTATED PARTICIPATION AGREEMENT

1. The Award. Pursuant and subject to the provisions of the Plan, TD Banknorth has made an Award
to ___(the “Participant”) as follows:

	 	 	 
	Award Date:
	 	March 1, 2005
	 
	 	 
	 
	 	 
	Amount of Award:
	 	$
	 
	 	 
	 
	 	 
	Number of Initial Units:
	 	 
	 
	 	 
	 
	 	 
	Maturity Date:
	 	March 1, 2008
	 
	 	 
	 
	 	 
	Share Price Used to Determine Number of Units:
	 	$40.78
	 
	 	 

2. Participant’s Agreement to be Bound. This Award is subject to the agreement of the Participant
to be bound by the Plan (which includes this Participation Agreement).

3. Defined Terms. Defined terms in the Plan shall have the same meaning when used herein. In the
event of any inconsistency between the terms of the Plan and this document, the terms of the Plan
shall govern.

4. Performance Target

     (i) Performance Target for Year One. The Performance Target to be used for calculating Year
One Units is EPS for fiscal 2005 that is 10% greater than the EPS reported for fiscal 2004, as set
forth in Section 5(i) below. The Performance Target for calculating Year One Units shall be
calculated in the manner set forth in Section 7 below.

     (ii) Performance Target for Year Two and Year Three. The Performance Target to be used for
calculating Year Two Units and Year Three Units will be determined by the Committee each year, in
its sole discretion, in accordance with the terms of the Plan. Once determined by the Committee,
the Administrator will advise the Participant, in writing, of the Performance Target to be used in
Year Two and Year Three of the Particular Award in accordance with the terms of the Plan.

     5. Performance Factor. The Performance Factor is a multiple that is determined by comparing the
Performance Result and the Performance Target pursuant to the formula determined by the Committee
each year of the Award.

 

     (i) Performance Factor For Year One. The Performance Factor for Year One of the Award will be
a multiple which is equal to the percentage shown opposite the applicable Percentage Growth line
below for the year in which the Units are being determined. For example, if EPS for TD Banknorth
for Year One was $2.47, and therefore 7% greater than EPS for the previous year, the Performance
Factor shall be 91%. If the Performance Result for 2005 is EPS between $2.43 and $2.66 per share,
but the EPS is not shown in the table below, the Performance Factor shall be pro-rated between the
Performance Factors related to the next higher and lower EPS figures. For example, if the
Performance Result for 2005 is EPS of $2.48, the Performance Factor shall be pro-rated between the
Performance Factors for EPS of $2.47 and $2.49 in the table below, for a Performance Factor of
92.5%. The Performance Factor is then multiplied by one-third of the number of Initial Units to
determine the Number of Year One Units.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERFORMANCE	 	PERFORMANCE	 	 	 	 	 	 	 	 
	TARGET:	 	TARGET:	 	 	 	 	 	 	ILLUSTRATIVE
	PERCENTAGE	 	2005	 	 	PERFORMANCE	 	NUMBER OF
	GROWTH IN EPS	 	EPS	 	 	FACTOR	 	YEAR ONE UNITS(1)
	4.0%
	 	$	2.40	 	 	 	85	%	 	 	85	 
	5.0%
	 	$	2.43	 	 	 	85	%	 	 	85	 
	6.0%
	 	$	2.45	 	 	 	88	%	 	 	88	 
	7.0%
	 	$	2.47	 	 	 	91	%	 	 	91	 
	8.0%
	 	$	2.49	 	 	 	94	%	 	 	94	 
	9.0%
	 	$	2.52	 	 	 	97	%	 	 	97	 
	Performance Target:
	 	 	 	 	 	 	 	 	 	 	 	 
	10.0%
	 	$	2.54	 	 	 	100	%	 	 	100	 
	11.0%
	 	$	2.56	 	 	 	103	%	 	 	103	 
	12.0%
	 	$	2.59	 	 	 	106	%	 	 	106	 
	13.0%
	 	$	2.61	 	 	 	109	%	 	 	109	 
	14.0%
	 	$	2.63	 	 	 	112	%	 	 	112	 
	15.0%
	 	$	2.66	 	 	 	115	%	 	 	115	 
	16.0%
	 	$	2.68	 	 	 	115	%	 	 	115	 

	(1)	 	Based on an assumed Award of 300 Initial Units, which is for
illustrative purposes only.

     (ii) Performance Factor for Year Two and Year Three. The formula or the grid to be used to
calculate the Performance Factor to be used in Year Two and Year Three of the Award will be
determined by the Committee in its sole discretion in accordance with the terms of the Plan. For
example, in Year Two, the Committee may determine that the Performance Target is an 8% growth in
EPS, with appropriate changes in the remaining columns of the above grid. Once determined by the
Committee, the Administrator will advise the Participant in writing of the formula to be used to
calculate the Performance Factor to be used in Year Two and Year Three of the Award in accordance
with the terms of the Plan.

2

 

6. Limitation on Performance Factor. The Performance Factor for any given Year can never be less
than 80% even if the Performance Result is less than the performance equating to an 80% Performance
Factor, and the Performance Factor can never be more than 120% even if the Performance Result is
greater than the performance equating to a 120% Performance Factor. A Participant’s Final Units
will equal the sum of the Participant’s Year One Units, Year Two Units and Year Three Units. For
example, if a Participant’s Initial Units amount to 300, and because the Performance Factors for
Year One range from 85% to 115%, the Final Units cannot be less than 245 or more than 355 in such
event.

7. Performance Target and Performance Result. TD Banknorth and the Participant expressly agree
that, notwithstanding any term of the Participant’s Employment and Retention Agreement, the
calculations of the Performance Target and Performance Result for Year One, Year Two and Year Three
shall be exclusive of the after-tax effects of (i) merger and consolidation costs, (ii)
deleveraging programs implemented by TD Banknorth, (iii) changes in unrealized gain (loss) on
speculative derivatives, (iv) the amortization of intangible assets and (v) extraordinary items,
and shall take into account cost and revenue synergies between TD and TD Banknorth as determined by
the Committee in its sole discretion. Notwithstanding anything to the contrary contained in the
Participant’s Employment or Retention Agreement, the expense, if any, related to the expensing of
stock options, restricted stock and other stock or stock-based awards shall not be deducted in the
calculation of the applicable Performance Target and Performance Result.

8. Other Amended Terms. In addition to the changes set forth in Section 7 of this Participation
Agreement, TD Banknorth and the Participant expressly agree that, notwithstanding any term of the
Plan or the Employment and Retention Agreement to the contrary, (i) the term “Disability” shall
have the meaning set forth in the Plan, as required by recently-enacted Section 409A of the Code,
and not as set forth in the Employment and Retention Agreements, (ii) the Redemption Value shall be
paid within five business days following the Maturity Date rather than on the Maturity Date as set
forth in the Employment and Retention Agreements, except as set forth in clause (iii) below, and
(iii) following a termination of Service pursuant to Section 6.2 of the Plan, the payment of the
Redemption Value shall be delayed until the later of (y) the six-month anniversary of the
termination of Service as required by recently-enacted Section 409A of the Code or (z) within five
business days after the Maturity Date. The Participant agrees to the changes set forth in this
Section 8 and Section 7, and that except as expressly noted in this Section 8 and Section 7, this
Participation Agreement shall not by implication or otherwise alter, modify, amend or in any way
affect any of the terms of the Plan or the Participant’s Employment and Retention Agreement.

9. Changes to the Plan. If the Plan is amended as permitted under the Plan, the amendments or
additional provisions shall be deemed to be part of the Plan and this Participation Agreement and
the Participant shall be bound thereby.

10. No Right to Employment or to Future Awards. Participation in the Plan does not give the
Participant the right to be retained in the Service of TD Banknorth or interfere with the right of
TD Banknorth to terminate the Participant’s employment at any time at will, whether by dismissal,
discharge, or with Cause or without Cause. Participation in the Plan does not impose any
obligation, express or implied, on TD Banknorth to grant any future Award or pay any other form of
discretionary compensation to the Participant. Failure of TD Banknorth to grant an Award under
this Plan, or a similar award, shall not support a claim for constructive dismissal.

3

 

11. Notices. Any notice given hereunder to TD Banknorth shall be addressed to TD Banknorth Inc.,
Attention: Cynthia Hamilton, Executive Vice President — Human Resources, TD Banknorth Inc., P.O.
Box 9540, Two Portland Square, Portland, Maine 04112-9540, and any notice given hereunder to the
Participant shall be addressed to the Participant at the Participant’s address as shown on the
records of TD Banknorth.

12. Agreement to be Bound. The Participant acknowledges that he or she obtained a copy of the Plan
document and that he or she reviewed and understood all of the terms and conditions of the Plan
including the provisions concerning forfeiture of Awards. The Participant agrees to be bound by
the terms and conditions of the Plan. The Participant agrees to complete, sign and deliver this
Participation Agreement to the address shown below.

Dated: May 24, 2005.

TD Banknorth, by its duly authorized officer, and the Participant have executed this
Participation Agreement in duplicate as of the day and year first above written.

TD BANKNORTH INC.

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Name:
	 	William J. Ryan
	 	 
	

	 	Title:
	 	Chairman, President and Chief Executive Officer	 	 

PARTICIPANT

	 	 	 	 	 
	 	 	 
	Name:
	 	 	 	 
	

	 	 	 	 

4exv10w9

 

Exhibit 10.9

     TD Banknorth Inc.

     Plan Document 

     

Amended and Restated

Effective January 1, 2005

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 Selection/Enrollment/Eligibility
	 	 	11	 
	2.1 Eligibility
	 	 	11	 
	2.2 Enrollment Requirements
	 	 	11	 
	2.3 Commencement of Participation
	 	 	11	 
	2.4 Termination of Participation and/or Deferrals
	 	 	12	 
	2.5 Limited Participation
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 3 Deferral Commitments/Company Contributions/Crediting/Taxes
	 	 	12	 
	3.1 Minimum Deferral
	 	 	12	 
	3.2 Maximum Deferral
	 	 	13	 
	3.3 Election to Defer/Change in Election
	 	 	13	 
	3.4 Withholding of Annual Deferral Amounts
	 	 	15	 
	3.5 Post-2004 Mandatory Deferrals
	 	 	15	 
	3.6 Annual Company Make-Up Amount
	 	 	16	 
	3.7 Investment of Trust Assets
	 	 	16	 
	3.8 Vesting
	 	 	17	 
	3.9 Crediting/Debiting of Account Balances
	 	 	17	 
	3.10 FICA and Other Taxes
	 	 	22	 
	3.11 Distributions
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 4 Short-Term Payout/Unforeseeable Financial Emergencies
	 	 	23	 
	4.1 Short-Term Payout
	 	 	23	 
	4.2 Other Benefits Take Precedence Over Short-Term Payout
	 	 	24	 
	4.3 Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 5 Retirement Benefit
	 	 	25	 
	5.1 Retirement Benefit
	 	 	25	 
	5.2 Payment of Retirement Benefit
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 6 Survivor Benefit
	 	 	26	 
	6.1 Pre-Retirement Survivor Benefit
	 	 	26	 
	6.2 Payment of Pre-Retirement Survivor Benefit
	 	 	26	 
	6.3 Death Prior to Completion of Retirement Benefit or Termination Benefit
	 	 	27	 

 

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	ARTICLE 7 Termination Benefit
	 	 	27	 
	7.1 Termination Benefit
	 	 	27	 
	7.2 Payment of Termination Benefit
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 8 Beneficiary Designation
	 	 	27	 
	8.1 Beneficiary
	 	 	27	 
	8.2 Beneficiary Designation/Change
	 	 	27	 
	8.3 Acknowledgment
	 	 	28	 
	8.4 No Beneficiary Designation
	 	 	28	 
	8.5 Doubt as to Beneficiary
	 	 	28	 
	8.6 Discharge of Obligations
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 9 Leave of Absence
	 	 	29	 
	9.1 Paid Leave of Absence
	 	 	29	 
	9.2 Unpaid Leave of Absence
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 10 Termination/Amendment/Modification
	 	 	29	 
	10.1 Termination
	 	 	29	 
	10.2 Amendment
	 	 	30	 
	10.3 Effect of Payment
	 	 	30	 
	10.4 Amendment to Ensure Proper Characterization of the Plan
	 	 	31	 
	10.5 Changes in Law Affecting Taxability
	 	 	31	 
	10.6 Prohibited Acceleration/Distribution Timing
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 11 Administration
	 	 	32	 
	11.1 Administration
	 	 	32	 
	11.2 Determinations
	 	 	33	 
	11.3 General
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 12 Other Benefits and Agreements
	 	 	33	 
	12.1 Coordination with Other Benefits
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 13 Claims Procedures
	 	 	34	 
	13.1 Scope of Claims Procedures
	 	 	34	 
	13.2 Initial Claim
	 	 	34	 
	13.3 Review Procedures
	 	 	35	 
	13.4 Calculation of Time Periods
	 	 	36	 
	13.5 Legal Action
	 	 	36	 
	13.6 Administrator Review
	 	 	36	 

 

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	ARTICLE 14 Trust
	 	 	36	 
	14.1 Establishment of the Trust
	 	 	36	 
	14.2 Interrelationship of the Plan and the Trust
	 	 	37	 
	14.3 Distributions from the Trust
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 15 Miscellaneous
	 	 	37	 
	15.1 Status of Plan
	 	 	37	 
	15.2 Unsecured General Creditor
	 	 	37	 
	15.3 Company’s Liability
	 	 	37	 
	15.4 Nonassignability
	 	 	37	 
	15.5 Not a Contract of Employment
	 	 	38	 
	15.6 Furnishing Information
	 	 	38	 
	15.7 Terms
	 	 	38	 
	15.8 Captions
	 	 	38	 
	15.9 Governing Law
	 	 	39	 
	15.10 Notice
	 	 	39	 
	15.11 Successors
	 	 	39	 
	15.12 Spouse’s Interest
	 	 	39	 
	15.13 Validity
	 	 	39	 
	15.14 Incompetent
	 	 	39	 
	15.15 Court Order
	 	 	40	 
	15.16 Distribution in the Event of Taxation
	 	 	40	 
	15.17 Insurance
	 	 	41	 
	1518 Aggregation of Employers
	 	 	41	 
	 
	 	 	 	 
	Schedule A Measurement Funds
	 	 	42	 

 

iii

 

TD BANKNORTH INC.

DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS AND KEY EMPLOYEES

Amended and Restated

Effective January 1, 2005

Purpose

     The purpose of this TD Banknorth Inc. Deferred Compensation Plan for Non-Employee Directors
and Key Employees is to provide specified benefits to a select group of management or highly
compensated employees and the members of the boards of directors of TD Banknorth Inc. and those of
its affiliates that are participating employers under this Plan as set forth in Section 1.16. This
Plan shall be unfunded for tax purposes and for purposes of Title I of the Employee Retirement
Income Security Act of 1974, as amended. This Plan is intended to comply with the requirements of
Section 409A of the Internal Revenue Code of 1986, as amended, as added by the American Jobs
Creation Act of 2004 and the Treasury regulations or any other authoritative guidance issued
thereunder (“Section 409A”).

     This Plan amends and restates the Banknorth Group, Inc. Deferred Compensation Plan for
Non-Employee Directors and Key Employees that was effective, as amended and restated, as of January
1, 2003 (the “2003 Plan”). Banknorth Group, Inc. was the predecessor to TD Banknorth Inc. The
2003 Plan was previously amended in January 2005 to provide Participants with an opportunity to
terminate their participation and receive a distribution of their Account Balances. As a result of
such amendment, all deferrals under this Plan, including deferrals prior to January 1, 2005, are
subject to Section 409A. The 2003 Plan was also amended in January 2005 to freeze deferrals as of
December 31, 2004 until further notice. This Plan only permits deferrals of compensation to be
paid on or after January 1, 2006, including Short-Term Incentive Payments earned during 2005 that
will be paid in 2006.

ARTICLE 1

Definitions

     For purposes of this Plan, unless otherwise clearly apparent from the context, the following
phrases or terms shall have the following indicated meanings:

 

1

 

	1.1  	“Account Balance” shall mean, with respect to a Participant, a credit on the records of the
Company equal to the sum of (i) the Post-2004 Voluntary Deferral Account balance, (ii) the
Post-2004 Company Make-Up Account balance, (iii) the Post-2004 Mandatory Deferral Account
balance, and (iv) the Pre-2005 Account Balance. The Account Balance, and each other specified
account balance, shall be a bookkeeping entry only and shall be utilized solely as a device
for the measurement and determination of the amounts to be paid to a Participant, or his or
her designated Beneficiary, pursuant to this Plan.

	1.2  	“Administrator” shall mean the committee of the Sponsor’s Board which the Sponsor’s Board
shall designate or appoint from time to time as responsible, except as otherwise specified,
for the general administration of the Plan, or the designee of such committee. If the
Sponsor’s Board does not designate or appoint such a committee, the Administrator shall be the
Sponsor’s Board itself, or the designee of the Sponsor’s Board.

	1.3  	“Affiliate” with respect to the Sponsor shall mean (i) any entity that, directly or
indirectly, is controlled by the Sponsor and (ii) any entity in which the Sponsor has a
significant equity interest, in either case as determined by the Administrator.

	1.4  	“Annual Base Salary” shall mean the annual cash compensation relating to services performed
during any calendar year, whether or not paid in such calendar year or included on the Federal
Income Tax Form W-2 for such calendar year, excluding Incentive Payments, any other incentives
or bonuses, commissions, overtime, fringe benefits, stock options, relocation expenses,
non-monetary awards, Non-Key Employee Director Fees and other fees, automobile and other
allowances paid to a Participant for employment services rendered (whether or not such
allowances are included in the Key Employee’s gross income). Annual Base Salary shall be
calculated without regard to any reductions for compensation voluntarily deferred or
contributed by the Participant pursuant to all qualified or non-qualified plans of the Company
(and therefore shall be calculated to include amounts not otherwise included in the
Participant’s gross income under Code Sections 125, 402(e)(3) or 402(h) pursuant to
plans established by the Company).

	1.5  	“Annual Deferral Amount” shall mean, with respect to any Plan Year beginning prior to January
1, 2005, a Participant’s Pre-2005 Annual Deferral Amount

 

2

 

	   	and, with respect to any Plan Year beginning on or after January 1, 2005, a Participant’s
Post-2004 Annual Voluntary Deferral Amount.
	 
	1.6  	“Annual Company Make-Up Amount” shall mean, with respect to any Plan Year beginning prior to
January 1, 2005, a Participant’s Pre-2005 Annual Company Make-Up Amount and, with respect to
any Plan Year beginning on or after January 1, 2005, a Participant’s Post-2004 Annual Company
Make-Up Amount.
	 
	1.7  	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated
in accordance with Article 8, that are entitled to receive benefits under this Plan upon the
death of a Participant.
	 
	1.8  	“Beneficiary Designation Form” shall mean the form established from time to time by the
Administrator that a Participant completes, signs and returns to the Administrator to
designate one or more Beneficiaries.
	 
	1.9  	“Board” shall mean the board of directors of the Sponsor.
	 
	1.10  	“Change In Control” shall mean a change in the ownership of TD Bank or the Company, a change
in the effective control of TD Bank or the Company or a change in the ownership of a
substantial portion of the assets of TD Bank or the Company as provided under Section 409A,
except that (i) any change in the ownership, effective control or ownership of a substantial
portion of the assets of the Company effected by TD Bank and its affiliates shall be excluded,
and (ii) any change in the ownership, effective control or ownership of a substantial portion
of the assets of TD Bank shall be excluded if TD Bank and its affiliates are not a majority
shareholder of the Company at the time of such change.
	 
	1.11  	“Claimant” shall have the meaning set forth in Section 13.2.
	 
	1.12  	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.13  	“Common Stock Fund A” means a Measurement Fund (as described in Section 3.9(c)) maintained on
the books of the Sponsor reflecting credits to Participants’ Account Balances in Sponsor Stock
Units.

 

3

 

	1.14  	“Common Stock Fund B” means a Measurement Fund (as described in Section 3.9(c)) maintained on
the books of the Sponsor reflecting credits to Participants’ Account Balances in TD Bank Stock
Units.

	1.15  	“Common Stock Sub-Account” shall mean the portion (if any) of a Participant’s Account Balance
allocated to Common Stock Fund A and/or Common Stock Fund B.

	1.16  	“Company” shall mean the Sponsor and any Affiliate of the Sponsor that adopts this Plan with
the approval of the Sponsor’s Board, and any successor to all or substantially all of the
Company’s assets or business.

	1.17  	“Deduction Limitation” shall mean the following described limitation on a benefit that may
otherwise be distributable pursuant to the provisions of this Plan. Except as otherwise
provided, this limitation shall be applied to all distributions that are “subject to the
Deduction Limitation” under this Plan. If the Administrator determines in good faith that
there is a reasonable likelihood that any compensation paid to a Participant for a taxable
year of the Company would not be deductible by the Company solely by reason of the limitation
under Code Section 162(m), then to the extent deemed necessary by the Administrator to ensure
that the entire amount of any distribution to the Participant pursuant to this Plan is
deductible, the Administrator may defer all or any portion of a distribution under this Plan.
Any amounts deferred pursuant to this limitation shall continue to be credited or debited with
additional amounts in accordance with Section 3.9 below, even if such amount is being paid out
in installments. The amounts so deferred and amounts credited or debited thereon shall be
distributed to the Participant or his or her Beneficiary (in the event of the
Participant’s death) at the earliest possible date, as determined by the
Administrator in good faith, on which the deductibility of compensation paid or payable to the
Participant for the taxable year of the Company during which the distribution is made will not
be limited by Code Section 162(m). Notwithstanding the foregoing, this Section 1.17 shall
apply only to the extent permitted by Section 409A.

	1.18  	“Effective Date” shall mean the effective date of this amended and restated version of the
Plan, which is January 1, 2005.

	1.19  	“Election Form” shall mean the form or forms established from time to time by the
Administrator that a Participant completes, signs and returns to the Administrator to make an
election under the Plan (which form or forms may

 

4

 

	   	take the form of an electronic transmission, if required or permitted by the
Administrator).
	 
	1.20  	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time
to time.
	 
	1.21  	“401(k) Plan” shall mean the Company’s tax qualified 401(k) retirement plan, as amended from
time to time.
	 
	1.22  	“Incentive Payments” shall mean any compensation paid to a Participant under any cash or
stock incentive plans or bonus arrangements of the Company with respect to which the
Administrator in its discretion permits deferrals to be made hereunder, which compensation is
based on the performance by the Participant of services for the Company over a period of at
least twelve (12) months (whether or not paid in such performance period or included on the
Federal Income Tax Form W-2 for such performance period) and which qualifies as
“performance-based compensation” under Section 409A.
	 
	1.23  	“Key Employee” shall mean an individual who is an employee of the Company and whose position
is designated at Level 22 or above.
	 
	1.24  	“Long-Term Incentive Payments” or “LTI Payments” shall mean Incentive Payments based on the
performance by the Participant of services for the Company over a period of greater than
twelve (12) months.
	 
	1.25  	“Non-Employee Director” shall mean any member of the Board who is not also a Key Employee.
	 
	1.26  	“Non-Employee Director Fees” shall mean any cash retainer and meeting fees paid to a
Non-Employee Director for each regular or special meeting and for any Administrator meetings
attended.
	 
	1.27  	“Participant” shall mean, subject to Section 3.5, any Non-Employee Director and any Key
Employee who (i) elects to participate in the Plan, (ii) signs a Plan Agreement, an Election
Form(s) and a Beneficiary Designation Form, (iii) has his or her signed Plan Agreement,
Election Form(s) and Beneficiary Designation Form accepted by the Administrator, (iv)
commences participation in the Plan, and (v) does not have his or her Plan Agreement
terminated. A spouse or former spouse of a Participant shall not be treated

 

5

 

	   	as a Participant in the Plan or have an Account Balance under the Plan under any
circumstance; provided, however, that a Beneficiary of a Participant shall be permitted to
make such elections and/or receive such amounts following the Participant’s death as are
specifically provided under this Plan.
	 
	1.28  	“Plan” shall mean this TD Banknorth Inc. Deferred Compensation Plan for Non-Employee
Directors and Key Employees, as evidenced by this instrument and by each Plan Agreement, as
they may be further amended from time to time.
	 
	1.29  	“Plan Agreement” shall mean a written agreement (which may take the form of an electronic
transmission, if required or permitted by the Administrator), as may be amended from time to
time, which is entered into by and between the Company and a Participant. Each Plan Agreement
executed by a Participant and the Company shall provide for the entire benefit to which such
Participant is entitled under the Plan; should there be more than one Plan Agreement, the Plan
Agreement bearing the latest date of acceptance by the Company shall supersede all previous
Plan Agreements in their entirety and shall govern such entitlement. The terms of any Plan
Agreement may be different for any Participant, and any Plan Agreement may provide additional
benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan;
provided, however, that any such additional benefits or benefit limitations must be agreed to
by both the Company and the Participant. In the Plan Agreement, each Participant shall
acknowledge that he or she accepts all of the terms of the Plan including the discretionary
authority of the Administrator as set forth in Article 11.
	 
	1.30  	“Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing
through December 31 of such calendar year during which this Plan is in effect.
	 
	1.31  	“Post-2004 Annual Company Make-Up Amount” shall mean, for the Plan Year of reference
beginning on or after January 1, 2005, the amount that is credited on behalf of the
Participant in accordance with Section 3.6.
	 
	1.32  	“Post-2004 Annual Mandatory Deferral Amount” shall mean, for the Plan Year of reference
beginning on or after January 1, 2005, that portion of the Participant’s compensation that is
required to be deferred in accordance with Section 3.5.

 

6

 

	1.33  	“Post-2004 Annual Voluntary Deferral Amount” shall mean, for the Plan Year of reference
beginning on or after January 1, 2005, that portion of a Participant’s Annual Base Salary,
Incentive Payments and/or Non-Employee Director Fees that a Participant elects to have, and
is, deferred in accordance with Article 3. In the event of a Participant’s
Retirement, death or a Termination of Service prior to the end of a Plan Year, such year’s
Post-2004 Annual Voluntary Deferral Amount shall be the actual amount withheld prior to such
event.

	1.34  	“Post-2004 Company Make-Up Account” shall mean (i) the sum of all of a
Participant’s Post-2004 Annual Company Make-Up Amounts, plus (ii) amounts credited
or debited in accordance with all the applicable crediting provisions of this Plan that relate
to the Participant’s Post-2004 Company Make-Up Account, less (iii) all
distributions made to the Participant or his or her Beneficiary pursuant to this Plan that
relate to the Participant’s Post-2004 Company Make-Up Account.

	1.35  	“Post-2004 Mandatory Deferral Account” shall mean (i) the sum of all of a
Participant’s Post-2004 Annual Mandatory Deferral Amounts, plus (ii) amounts
credited or debited in accordance with all the applicable crediting provisions of this Plan
that relate to the Participant’s Post-2004 Mandatory Deferral Account, less (iii)
all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that
relate to the Participant’s Post-2004 Mandatory Deferral Account.

	1.36  	“Post-2004 Voluntary Deferral Account” shall mean (i) the sum of all of a Participant’s
Post-2004 Annual Voluntary Deferral Amounts, plus (ii) amounts credited or debited in
accordance with all the applicable crediting provisions of this Plan that relate to the
Participant’s Post-2004 Voluntary Deferral Account, less (iii) all distributions made to the
Participant or his or her Beneficiary pursuant to this Plan that relate to his or her
Post-2004 Voluntary Deferral Account.
	 
	1.37  	“Pre-Retirement Survivor Benefit” shall mean the benefit set forth in Article 6.

	1.38  	“Pre-2005 Account Balance” shall mean, with respect to a Participant, a credit on the records
of the Company equal to the sum of (i) the Pre-2005 Deferral Account balance and (ii) the
Pre-2005 Company Make-Up Account balance. The Pre-2005 Account Balance, and each other
specified account balance, shall be a bookkeeping entry only and shall be utilized solely as a
device for

 

7

 

	   	the measurement and determination of the amounts to be paid to a Participant, or his or her
designated Beneficiary, pursuant to this Plan. Prior to this January 1, 2005 amendment and
restatement to the Plan, a Participant’s Pre-2005 Account Balance was known as the
Participant’s “Account Balance”.
	 
	1.39  	“Pre-2005 Annual Company Make-Up Amount” shall mean, for the Plan Year of reference beginning
prior to January 1, 2005, the amount that was credited on behalf of the Participant in
accordance with Section 3.6. Prior to this January 1, 2005 amendment and restatement to the
Plan, a Participant’s Pre-2005 Annual Company Make-Up Amount was known as the Participant’s
“Annual Company Matching Amount”.
	 
	1.40  	“Pre-2005 Annual Deferral Amount” shall mean, for the Plan Year of reference beginning prior
to January 1, 2005, that portion of a Participant’s Annual Base Salary and/or Incentive
Payments, or Non-Employee Director Fees, that a Participant elected to have, and was deferred
in accordance with Article 3. In the event of a Participant’s Retirement, death or a
Termination of Service prior to the end of a Plan Year, such year’s Pre-2005 Annual Deferral
Amount shall be the actual amount withheld prior to such event. Prior to this January 1, 2005
amendment and restatement to the Plan, a Participant’s Pre-2005 Annual Deferral Amount was
known as the Participant’s “Annual Deferral Amount”.
	 
	1.41  	“Pre-2005 Company Make-Up Account” shall mean (i) the sum of all of a
Participant’s Pre-2005 Annual Company Make-Up Amounts, plus (ii) amounts credited
or debited in accordance with all the applicable crediting provisions of this Plan that relate
to the Participant’s Pre-2005 Company Make-Up Account, less (iii) all distributions
made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the
Participant’s Pre-2005 Company Make-Up Account. Prior to this January 1, 2005 amendment and
restatement to the Plan, a Participant’s Pre-2005 Company Make-Up Account was known as the
Participant’s “Company Matching Account”.
	 
	1.42  	“Pre-2005 Deferral Account” shall mean (i) the sum of all of a Participant’s Pre-2005 Annual
Deferral Amounts, plus (ii) amounts credited or debited in accordance with all the applicable
crediting provisions of this Plan that relate to the Participant’s Pre-2005 Deferral Account,
less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to
this Plan that relate to his or her Pre-2005 Deferral Account. Prior to this January 1, 2005

 

8

 

	   	amendment and restatement to the Plan, a Participant’s Pre-2005 Deferral Account was known
as the Participant’s “Deferral Account”.
	 
	1.43  	“Retirement”, “Retire(s)” or “Retired” shall mean Separation from Service with the Company
for any reason other than a leave of absence or death on or after the attainment of age
fifty-five (55) and achievement of five (5) Years of Service.
	 
	1.44  	“Retirement Benefit” shall mean the benefit set forth in Article 5.
	 
	1.45  	“Section 409A” shall mean Code Section 409A and the Treasury regulations or other
authoritative guidance issued thereunder. Whenever the terms “subject to Section 409A” or “to
the extent permitted by Section 409A” (or any such similar reference so as to indicate that a
Plan provision is subject to Section 409A) are used, such terms shall be interpreted to mean
that the applicable Plan provision shall be effective only if and to the extent such provision
would not trigger penalty taxes or interest under Section 409A.
	 
	1.46  	“Separation from Service” shall mean separation from service within the meaning of Section
409A.
	 
	1.47  	“Short-Term Incentive Payments” or “STI Payments” shall mean Incentive Payments based on the
performance by the Participant of services for the Company over a period of twelve (12)
months.
	 
	1.48  	“Short-Term Payout” shall mean the payout set forth in Article 4.
	 
	1.49  	“Sponsor” shall mean TD Banknorth Inc., and any successor to all or substantially all of the
Sponsor’s assets or business.
	 
	1.50  	“Sponsor Common Stock” means the common stock of the Sponsor, $0.01 par value or, in the
event that the outstanding shares of common stock are later changed into or exchanged for a
different class of stock or securities of the Sponsor or another corporation, that other stock
or security.
	 
	1.51  	“Sponsor Stock Unit” means an artificial unit of value, the amount of one unit of which
varies with the value of one share of Sponsor Common Stock.
	 
	1.52  	“TD Bank” means The Toronto-Dominion Bank, and any successor to all or substantially all of
TD Bank’s assets or business.

 

9

 

	1.53  	“TD Bank Common Stock” means the common stock of TD Bank without par value or, in the event
that the outstanding shares of common stock are later changed into or exchanged for a
different class of stock or securities of TD Bank or another corporation, that other stock or
security.

	1.54  	“TD Bank Stock Unit” means an artificial unit of value, the amount of one unit of which
varies with the value of one share of TD Bank Common Stock.

     1.55 “Termination Benefit” shall mean the benefit set forth in Article 7.

	1.56  	“Termination of Service” shall mean Separation from Service with the Company, voluntarily or
involuntarily, for any reason other than Retirement, death or an authorized leave of absence.

	1.57  	“Trust” shall mean the trust established pursuant to this Plan, as amended from time to time.
The assets of the Trust shall be the property of the Company.

	1.58  	“Unforeseeable Financial Emergency” shall mean a severe financial hardship to the Participant
resulting from (i) an illness or accident of the Participant, the Participant’s
spouse or a dependent of the Participant, (ii) a loss of the Participant’s property
due to casualty, or (iii) such other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant, all as determined in the
sole discretion of the Administrator.

	1.59  	“Yearly Installment Method” shall be a yearly installment payment over the number of years
selected by the Participant in accordance with this Plan, calculated as follows: The Account
Balance of the Participant (or the appropriate portion thereof) shall be calculated as of the
close of business on the date of reference (or, if the date of reference is not a business
day, on the immediately following business day), and shall be paid as soon as practicable
thereafter. The date of reference with respect to the first (1st) yearly
installment payment shall be as provided in Section 5.2 and the date of reference with respect
to subsequent yearly installment payments shall be the anniversary of the first
(1st) yearly installment payment. The yearly installment shall be calculated by
multiplying this balance by a fraction, the numerator of which is one (1), and the denominator
of which is the remaining number of yearly payments due the Participant. By way of example,
if the

 

10

 

	   	Participant elects a ten (10) year Yearly Installment Method, the first payment shall be
one-tenth (1/10) of the Account Balance, calculated as described in this definition. The
following year, the payment shall be one-ninth (1/9) of the Account Balance, calculated as
described in this definition.

	1.60  	“Years of Service” shall mean the total number of continuous full years in which a
Participant has been employed by the Company or (with respect to a Non-Employee Director) has
served as a member of the Board of the Company. For purposes of this definition, a year of
employment or service shall be a three hundred sixty-five (365) day period (or three hundred
sixty-six (366) day period in the case of a leap year) that, for the first year of employment
or service, commences on the Key Employee’s date of hiring or the Non-Employee Director’s
appointment as a member of the Board of the Company, as applicable, and that, for any
subsequent year, commences on an anniversary of that date. Any partial year of employment or
service shall not be counted.

ARTICLE 2

Selection/Enrollment/Eligibility

	2.1  	Eligibility. Participation in the Plan shall be limited to Non-Employee Directors
and Key Employees whom the Administrator designates, in its sole discretion, for
participation. It is intended that Key Employees shall meet the requirement of ERISA that
they be members of a select group of management or highly compensated employees of the
Company. A new Non-Employee Director or Key Employee shall not be considered eligible to
participate until he or she has received notice of such eligibility.

	2.2  	Enrollment Requirements. Except as provided in Section 3.5, as a condition to
participation, each selected Non-Employee Director and Key Employee shall complete, execute
and return to the Administrator a Plan Agreement, an Election Form(s) and a Beneficiary
Designation Form, all within fifteen (15) days after he or she is notified or becomes eligible
to participate in the Plan. In addition, the Administrator shall establish from time to time
such other enrollment requirements as it determines in its sole discretion are necessary or
appropriate.

	2.3  	Commencement of Participation. Provided a selected Non-Employee Director or Key
Employee has met all enrollment requirements set forth in this Plan and required by the
Administrator, including returning all required

 

11

 

	   	documents to the Administrator within the
specified time period, that individual shall commence participation in the Plan on the first
day of the Plan Year following the month in which he or she completes all enrollment
requirements (or as soon as practicable thereafter as the Administrator may determine).
Except as provided in Section 3.5, or as otherwise provided by the Administrator, if a
selected Non-Employee Director or Key Employee fails to meet all such requirements within the
period required, in accordance with Section 2.2, that individual shall not be eligible to
participate in the Plan until the first day of the following Plan Year, again subject to
timely delivery to and acceptance by the Administrator of the required documents.
	 
	2.4  	Termination of Participation and/or Deferrals. If the Administrator determines in
good faith that a Participant no longer qualifies as a member of a select group of management
or highly compensated employees of the Company, the Administrator shall have the right, in its
sole discretion and subject to Section 409A, to (i) terminate any deferral election the
Participant has made for the remainder of the Plan Year in which the Participant’s
membership status changes, (ii) prevent the Participant from making future deferral elections
and/or (iii) immediately distribute the Participant’s then vested Account Balance
as a Termination Benefit and terminate the Participant’s participation in the Plan.
	 
	2.5  	Limited Participation . Any individual who does not meet the definition of
Non-Employee Director set forth in Section 1.25, or of Key Employee set forth in Section 1.23,
but who, until January 1, 2003, had participated in the Plan, shall continue to participate in
the Plan solely with respect to his or her Account Balance as of January 1, 2003. However,
such individual shall not be entitled to make any deferrals, or to have any Annual Company
Make-Up Amounts credited to the Plan on his or her behalf, on or after January 1, 2003, and,
subject to Section 409A, shall be subject to distribution as provided in clause (iii) of
Section 2.4, above, if the Administrator so determines at any time.

ARTICLE 3

Deferral Commitments/Company Contributions/Crediting/Taxes

	3.1  	Minimum Deferral. For each Plan Year, a Participant may elect to defer, as his or
her Annual Deferred Amount, Annual Base Salary, Short-Term Incentive Payments, Long-Term
Incentive Payments and/or Non-Employee Director Fees (as applicable) in the minimum amount of
five percent (5%) of each

 

12

 

	   	such item of compensation; provided, however, that, for Plan Years
beginning prior to January 1, 2005, the five percent (5%) minimum amount applied to the
Participant’s Incentive Payments in the aggregate for the Plan Year.
	 
	   	Notwithstanding the foregoing, the Administrator may, in its sole discretion, establish for
any Plan Year different minimum amount(s) for any item(s) of compensation prior to the
commencement of the Plan Year. If an election is made with respect to any such item of
compensation for less than the stated minimum amount, or if no election is made, the amount
deferred with respect to any such item of compensation shall be zero (0).
	 
	3.2  	Maximum Deferral. For each Plan Year, a Participant may elect to defer, as his or
her Annual Deferral Amount, Annual Base Salary, Short-Term Incentive Payments, Long-Term
Incentive Payments, and/or Non-Employee Director Fees (as applicable), up to the following
maximum percentages for each deferral type elected:

	 	 	 	 	 	 	 	 
	 
	 	Deferral Type	 	 	Maximum Amount	 
	 	Annual Base Salary
	 	 	 	70	%	 
	 	STI Payments
	 	 	 	100	%	 
	 	LTI Payments
	 	 	 	100	%	 
	 	Non-Employee Director Fees
	 	 	 	100	%	 
	 

	 	   	Notwithstanding the foregoing, the Administrator may, in its sole discretion,
establish for any Plan Year prior to the commencement of the Plan Year maximum
percentages which differ from those set forth above.

	3.3  	Election to Defer/Change in Election.

	 	(a)  	Timing of Election.

	 	(i)  	Annual Base Salary or Non-Employee Director Fee
Deferrals. Except as provided below, a Participant shall make an Annual
Base Salary or Non-Employee Director Fee deferral election with respect to a
coming twelve (12) month Plan Year commencing on or after January 1, 2006.
Such election must be made during such period as shall be established by the
Administrator which ends no later than the last day of the Plan Year preceding
the Plan Year in which the services giving rise

 

13

 

	 	   	to the Annual Base Salary
and/or Non-Employee Director Fee to be deferred are to be performed.
	 
	 	(ii)  	Incentive Payment Deferrals. Except as provided
below, a Participant shall make an Incentive Payment deferral election with
respect to a performance period of at least twelve (12) months. Such election
must be made during such period as shall be established by the Administrator
which ends no later than six (6) months prior to the last day of the period
over which the services giving rise to the Incentive Payments are performed.
	 
	 	(iii)  	Special Rule for Pre-2005 Elections.
Notwithstanding the preceding, with respect to any Annual Base Salary,
Incentive Payment, and/or Non-Employee Director Fee deferral election (or
modification or revocation of such election) made for a Plan Year beginning
prior to January 1, 2005, which election (or modification or revocation)
would, in accordance with Section 409A, necessarily have been made on or
before March 15, 2005, such election (or modification or revocation) shall be
valid if it satisfied the deferral election (or modification or revocation)
timing requirements of the Plan in effect at the time of the deferral election
(or modification or revocation).
	 
	 	(iv)  	Additional Section 409A Provisions. Notwithstanding
the preceding, the Administrator shall, in its discretion, be permitted to
cause to be paid to the Participant Annual Base Salary, Short-Term Incentive
Payments, Long Term Incentive Payments, and/or Non-Employee Director Fees (as
applicable) rather than being deferred under the Plan if, under Section 409A,
an earlier
election was required in order to properly defer tax with respect to such
amount(s). In addition, the Administrator, in its discretion, shall be
permitted to allow a Participant to revoke or modify an Annual Base Salary,
Short-Term Incentive Payments, Long Term Incentive Payments, and/or
Non-Employee Director Fees (as applicable) deferral election he or she has
made if Section 409A provides an opportunity to later modify a deferral
election with respect to such amount(s); provided, however, that no such
revocation or modification will be effective or available if and to the
extent Section 409A provides that such revocation or

 

14

 

	 	   	modification, or the
availability thereof, prevents the proper deferral of tax with respect to
such amount(s).

	 	(b)  	Manner of Election. For any Plan Year (or portion thereof), a
deferral election for that Plan Year (or portion thereof), and such other elections as
the Administrator deems necessary or desirable under the Plan, shall be made by timely
delivering to the Administrator, in accordance with its rules and procedures, by the
deadline(s) set forth above, an Election Form, along with such other elections as the
Administrator deems necessary or desirable under the Plan. For these elections to be
valid, the Election Form(s) must be completed and signed by the Participant, timely
delivered to the Administrator (in accordance with Section 2.2 above) and accepted by
the Administrator. If no such Election Form(s) is timely delivered for a Plan Year
(or portion thereof), the Annual Deferral Amount shall be zero (0) for that Plan Year
(or portion thereof).
	 
	 	(c)  	Change in Election. Except as provided in (a)(iv), above, a
Participant may not elect to change his or her deferral election that is in effect for
a Plan Year, except if and to the extent permitted by the Administrator and made in
accordance with the provisions of Section 409A specifically relating to the change
and/or revocation of deferral elections.

	3.4  	Withholding of Annual Deferral Amounts. For each Plan Year, the Annual Base Salary
portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Annual
Base Salary payroll in the percentage elected by the Participant, as adjusted from time to
time for increases and decreases in Annual Base Salary. The Incentive Payments portion of the
Annual Deferral
Amount shall be withheld at the time the Incentive Payments are or otherwise would be paid
to the Participant, whether or not this occurs during the Plan Year itself. The
Non-Employee Director Fees portion of the Annual Deferral Amount shall be withheld at the
time the Non-Employee Director Fees are or otherwise would be paid to the Participant,
whether or not this occurs during the Plan Year itself.

	3.5  	Post-2004 Mandatory Deferrals. Notwithstanding anything herein to the contrary, but
subject to Section 409A, if the Administrator determines, in its sole and absolute discretion
with the guidance of counsel, that the Company’s ability to deduct any portion of a
Participant’s compensation relating to

 

15

 

	   	services performed for the Company is limited by Code
Section 162(m), such portion shall automatically be withheld from the Participant’s
compensation at such time it would otherwise have been paid to the Participant and shall be
deferred under the Plan as a Post-2004 Annual Mandatory Deferral Amount for the Plan Year of
the withholding.
	 
	3.6  	Annual Company Make-Up Amount. A Participant’s Annual Company Make-Up
Amount for the Plan Year of reference shall be equal to the amount of the Company matching
contribution that would be made to the 401(k) Plan if the 401(k) Plan were permitted to
include in its definition of “compensation” for Company matching contribution purposes the
Participant’s Annual Deferral Amount, reduced by the amount of any Company matching
contributions that are made to the 401(k) Plan on the Participant’s behalf for the plan year
of the 401(k) Plan that corresponds to the Plan Year. This section shall not result in any
Annual Company Make-Up Amount hereunder that would exceed, when considering the Company
matching contribution amounts contributed to the 401(k) Plan for the Plan Year, the total
Company matching contribution that would be made on behalf of a participant in the 401(k) Plan
who earns compensation in excess of the dollar limit on recognizable compensation under Code
Section 401(a)(17). A Participant who is not eligible for the Plan Year (or for any portion
thereof) to receive an allocation of Company matching contributions under the 401(k) Plan
shall not be eligible for the Plan Year (or for any such portion) for the allocation of an
Annual Company Make-Up Amount hereunder.
	 
	   	Unless otherwise specified by the Administrator, the Annual Company Make-Up Amount, if any,
shall be credited as soon as practicable after the last day of the Plan Year.
	 
	3.7  	Investment of Trust Assets. The trustee of the Trust shall be authorized, upon
written instructions received from the Administrator or investment manager appointed by the
Administrator, to invest and reinvest the assets of the Trust in accordance with the
applicable Trust agreement, including the reinvestment of the proceeds in one or more
investment vehicles designated by the Administrator.

 

16

 

	3.8  	Vesting.

	 	(a)  	A Participant shall at all times be one hundred percent (100%) vested in his
or her Pre-2005 Deferral Account, Post-2004 Voluntary Deferral Account and Post-2004
Mandatory Deferral Account.
	 
	 	(b)  	A Participant shall become vested in his or her Pre-2005 Company Make-Up
Account and Post-2004 Company Make-Up Account as and to the same extent that the
Participant becomes vested in Company matching contributions under the 401(k) Plan, or
(if earlier) as of the date of a Change in Control.

	3.9  	Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules
and procedures that are established from time to time by the Administrator, in its sole
discretion, amounts shall be credited or debited to a Participant’s Account Balance in
accordance with the following rules:

	 	(a)  	Sub-Accounts. To the extent permitted by the Administrator, separate
sub-accounts shall be established and maintained with respect to each Participant’s
Account Balance (together, the “Sub-Accounts”), if and as applicable, one attributable
to the portion of the Participant’s Account Balance which represents the Participant’s
Pre-2005 Account Balance, another attributable to the portion of the Participant’s
Account Balance which represents Annual Base Salary deferrals on or after January 1,
2005, another attributable to the portion of the Participant’s Account Balance which
represents STI Payment deferrals on or after January 1, 2005, another attributable to
the portion of the Participant’s Account Balance which represents LTI Payment
deferrals on or after January 1,
2005, another attributable to the portion of the Participant’s Account Balance
which represents Post-2004 Annual Company Make-Up Amounts, another attributable to
the portion of the Participant’s Account Balance which represents Post-2004 Annual
Mandatory Deferral Amounts, and another attributable to the portion of the
Participant’s Account Balance which represents Non-Employee Director Fee deferrals
on or after January 1, 2005.
	 
	 	(b)  	Election of Measurement Funds. A Participant, in connection with his
or her initial deferral election in accordance with Section 3.3 above, shall elect, on
the Election Form(s), one or more Measurement Fund(s) (as described in Section 3.9(d)
below) to be used to determine

 

17

 

	 	   	the additional amounts to be credited or debited to
each of his or her Sub-Accounts for the first business day of the Plan Year,
continuing thereafter unless changed in accordance with the next sentence. Commencing
with the first business day of the Plan Year, and continuing thereafter for the
remainder of the Plan Year (unless the Participant ceases during the Plan Year to
participate in the Plan), the Participant may (but is not required to) elect daily, by
submitting an Election Form(s) to the Administrator that is accepted by the
Administrator (which submission may take the form of an electronic transmission, if
required or permitted by the Administrator), to add or delete one or more Measurement
Fund(s) to be used to determine the additional amounts to be credited or debited to
each of his or her Sub-Accounts, or to change the portion of each of his or her
Sub-Accounts allocated to each previously or newly elected Measurement Fund(s). If an
election is made in accordance with the previous sentence, it shall apply to the next
business day and continue thereafter for the remainder of the Plan Year (unless the
Participant ceases during the Plan Year to participate in the Plan), unless changed in
accordance with the previous sentence. Notwithstanding the above, no amount allocated
to the Common Stock Fund A or Common Stock Fund B may thereafter be reallocated to any
other Measurement Fund.
	 
	 	(c)  	Proportionate Allocation. In making any election described in
Section 3.9(b) above, the Participant shall specify on the Election Form(s), in whole
percentage points, the percentage of each of his or her Sub-Account(s) to be allocated
to a Measurement Fund (as if the Participant was making an investment in that
Measurement Fund with that portion of his or her Account Balance).
	 
	 	(d)  	Measurement Funds. The Participant may elect one or more of the
Measurement Funds set forth on Schedule A (the “Measurement Funds”) for the purpose of
crediting or debiting additional amounts to his or her Account Balance. The
Administrator may, in its sole discretion, discontinue, substitute or add a
Measurement Fund(s). Each such action will take effect as of the first business day
that follows by thirty (30) days the day on which the Administrator gives Participants
advance written (which shall include e-mail) notice of such change. If the
Administrator receives an initial or revised Measurement Fund(s) election which it
deems to be incomplete, unclear or improper, the Participant’s Measurement Fund(s)
election

 

18

 

	 	   	then in effect shall remain in effect (or, in the case of a deficiency in an
initial Measurement Fund(s) election, the Participant shall be deemed to have filed no
deemed investment direction). If the Administrator possesses (or is deemed to possess
as provided in the previous sentence) at any time directions as to Measurement Fund(s)
of less than all of the Participant’s Account Balance, the Participant shall be deemed
to have directed that the undesignated portion of the Account Balance be deemed to be
invested in a money market, fixed income or similar Measurement Fund made available
under the Plan as determined by the Administrator in its discretion. Each Participant
hereunder, as a condition to his or her participation hereunder, agrees to indemnify
and hold harmless the Administrator and the Company, and their agents and
representatives, from any losses or damages of any kind relating to (i) the
Measurement Funds made available hereunder and (ii) any discrepancy between the
credits and debits to the Participant’s Account Balance based on the performance of
the Measurement Funds and what the credits and debits otherwise might be in the case
of an actual investment in the Measurement Funds.
	 
	 	(e)  	Crediting or Debiting Method. The performance of each elected
Measurement Fund (either positive or negative) will be determined by the
Administrator, in its sole discretion, based on the performance of the Measurement
Funds themselves. A Participant’s Account Balance shall be credited or
debited on a daily basis based on the performance of each Measurement Fund selected by
the Participant, or as otherwise determined by the Administrator in its sole
discretion, as though (i) a Participant’s Account Balance were invested in
the Measurement Fund(s) selected by the Participant, in the percentages
elected by the Participant as of such date, at the closing price on such date; (ii)
the portion of the Annual Deferral Amount that was actually deferred was invested
in the Measurement Fund(s) selected by the Participant, in the percentages elected
by the Participant, no later than the close of business on the third (3rd) business
day after the day on which such amounts are actually deferred from the
Participant’s Annual Base Salary and Incentive Payments through reductions in his
or her amounts otherwise payable, at the closing price on such date; and (iii) any
distribution made to a Participant that decreases such Participant’s
Account Balance ceased being invested in the Measurement Fund(s), in the
percentages applicable to such calendar

 

19

 

	 	   	month, no earlier than three (3) business
days prior to the distribution, at the closing price on such date.
	 
	 	(f)  	Common Stock Funds. A Participant’s Account Balance attributable to
Common Stock Fund A and/or Common Stock Fund B shall be credited with any amounts
allocated thereto as follows: on any date on which any Annual Deferral Amounts,
Annual Company Make-Up Amounts or Post-2004 Annual Mandatory Deferral Amounts are
credited hereunder (an “Allocation Date”), the Participant’s Common Stock Sub-Account
shall be credited with a number of Sponsor Stock Units or TD Bank Stock Units (as
applicable) equal to (i) the amount allocated to the Common Stock Sub-Account divided
by (ii) the “Price per Share” (as defined below) on the Allocation Date. Fractional
Sponsor Stock Units or TD Bank Stock Units (as applicable) shall be rounded to the
nearest 1/10th (one-tenth) of a Sponsor Stock Unit or TD Bank Stock Unit
(as applicable). On any given day, the value of the Common Stock Sub-Account shall
equal the number of Sponsor Stock Units, if any, then credited to the Common Stock
Sub-Account multiplied by the applicable Price per Share on such date, plus the number
of TD Bank Stock Units, if any, then credited to the Common Stock Sub-Account
multiplied by the applicable Price per Share on such date. Sponsor Stock Units do not
constitute shares of Sponsor Common Stock, interests in Sponsor Common Stock or any
other security of the Company. TD Bank Stock Units do not constitute shares of TD
Bank Common Stock, interests in TD Bank Common Stock or any other security of TD Bank
or the Company. Sponsor Stock Units and TD Bank Stock Units merely reflect an
unfunded promise to pay deferred compensation in the future. For purposes of this
Section 3.9(f), the “Price per Share” shall equal the closing sale price per share at
which shares of the Sponsor Common Stock or TD Bank Common Stock (as applicable) are
sold on the New
York Stock Exchange (“NYSE”) on such date or, if no Sponsor Common Stock or TD Bank
Common Stock (as applicable) was traded on the NYSE on such date, the closing sale
price at which the Sponsor Common Stock or TD Bank Common Stock (as applicable) is
sold on the next preceding date the Sponsor Common Stock or TD Bank Common Stock
(as applicable) was so traded.
	 
	 	   	A Participant’s Common Stock Sub-Account shall be credited with additional Sponsor
Stock Units on every date the Sponsor issues a dividend with respect to its Sponsor
Common Stock, and with additional TD Bank Stock Units on every date TD Bank issues
a dividend with

 

20

 

	 	   	respect to its TD Bank Common Stock. The number of Sponsor Stock
Units or TD Bank Stock Units (as applicable) so credited will equal (i) the product
of (A) the dividend per share of Sponsor Common Stock or TD Bank Common Stock (as
applicable) times (B) the number of Sponsor Stock Units or TD Bank Common Stock
Units (as applicable) in the Participant’s Common Stock Sub-Account immediately
before the dividend is issued, divided by (ii) the applicable Price per Share on
the dividend date. In the event of any recapitalization, stock split, stock
dividend, exchange of shares, merger, reorganization, change in corporate structure
or change in shares of the Sponsor (or TD Bank) or similar event, the Administrator
may make appropriate adjustments to the number of Sponsor Stock Units (or TD Bank
Stock Units, as applicable) credited to each Participant’s Common Stock
Sub-Account.
	 
	 	   	Payments allocable to the Participant’s Common Stock Sub-Account will be paid in
cash. If a Participant’s Common Stock Sub-Account is to be paid in installments,
each installment shall be in an amount equal to the applicable Price per Share on
the applicable installment payment date multiplied by a fraction, the numerator
which is the total number of Sponsor Stock Units (or TD Bank Stock Units, as
applicable) in such Common Stock Sub-Account on the Participant’s payment
commencement date, and the denominator of which is the total number of
installments.
	 
	 	(g)  	No Actual Investment. Notwithstanding any other provision of this
Plan that may be interpreted to the contrary, the Measurement Funds are to be used for
measurement purposes only, and a Participant’s election of any such Measurement Fund,
the allocation to his or her Account Balance thereto, the calculation of additional
amounts and the crediting or debiting of such amounts to a Participant’s Account
Balance shall not be considered or construed in any manner as an actual investment
of his or her Account Balance in any such Measurement Fund. In the event that the
Company or the trustee (as that term is defined in the Trust), in its own
discretion, decides to invest funds in any or all of the Measurement Funds, no
Participant shall have any rights in or to such investments themselves. Without
limiting the foregoing, a Participant’s Account Balance shall at all
times be a bookkeeping entry only and shall not represent any investment made on
his or her behalf by the Company or the Trust; the Participant shall at all times
remain an unsecured general creditor of the Company.

 

21

 

	 	(h)  	Beneficiary Elections. Each reference in this Section 3.9 to a
Participant shall be deemed to include, where applicable, a reference to a
Beneficiary.

	3.10  	FICA and Other Taxes.

	 	(a)  	Annual Deferral Amounts and Post-2004 Annual Mandatory Deferral
Amounts. For each Plan Year in which an Annual Deferral Amount and/or a Post-2004
Annual Mandatory Deferral Amount is being withheld from a Participant, the Company
shall withhold from that portion of the Participant’s Annual Base Salary, Incentive
Payments and/or other compensation that is not being deferred, in a manner determined
by the Company, the Participant’s share of any FICA and other employment
taxes on such Annual Deferral Amount and/or Post-2004 Annual Mandatory Deferral
Amount. If necessary, the Administrator may reduce the Annual Deferral Amount in order
to comply with this Section 3.10.
	 
	 	(b)  	Annual Company Make-Up Amounts. When a Participant becomes vested in
a portion of his or her Company Make-Up Account, the Company shall have the discretion
to withhold from the Participant’s Annual Base Salary and/or Incentive
Payments that is not deferred, in a manner determined by the Company, the
Participant’s share of any FICA and other employment taxes. If necessary,
the Administrator may reduce the vested portion of the Participant’s Annual Company
Make-Up Amounts in order to comply with this Section 3.10.

	3.11  	Distributions. Notwithstanding anything herein to the contrary, (i) any payments
made to a Participant under
this Plan shall be in cash form, and (ii) the Company, or the trustee of the Trust, shall
withhold from any payments made to a Participant under this Plan all Federal, state and
local income, employment and other taxes required to be withheld by the Company, or the
trustee of the Trust, in connection with such payments, in amounts and in a manner to be
determined in the sole discretion of the Company and the trustee of the Trust.

 

22

 

ARTICLE 4

Short-Term Payout/Unforeseeable Financial Emergencies

	4.1  	Short-Term Payout. In connection with each election to defer an Annual Deferral
Amount for a Plan Year, a Participant may irrevocably elect to receive a future “Short-Term
Payout” from the Plan. Except as otherwise required by the Administrator, with respect to any
Short-Term Payout election relating to a Post-2004 Annual Voluntary Deferral Amount, such
election may be made separately with respect to the Annual Base Salary, Short-Term Incentive
Payment, Long-Term Incentive Payment and/or Non-Employee Director Fee deferral portions of the
Post-2004 Annual Voluntary Deferral Amount for the Plan Year. Subject to the Deduction
Limitation and to Section 3.11, the Short-Term Payout in respect of an Annual Deferral Amount
for a Plan Year, shall be a lump sum payment in an amount that is equal to that year’s Annual
Base Salary, Short-Term Incentive Payment, Long-Term Incentive Payment and/or Non-Employee
Director Fee deferrals (plus, in respect of any Short-Term Payout election relating to a
Pre-2005 Annual Deferral Amount for a Plan Year, any vested Pre-2005 Annual Company Make-Up
Amount for the Plan Year), and amounts credited or debited thereto in the manner provided in
Section 3.9 above, determined at the time that the Short-Term Payout becomes payable (rather
than the date of a Termination of Service). Subject to the terms and conditions of this Plan,
each Short-Term Payout elected shall be paid out during the month of March of the Plan Year
designated by the Participant that is at least three (3) Plan Years after the Plan Year in
which the Annual Deferral Amount is actually deferred, as specifically elected by the
Participant. By way of example, if a three (3) year Short-Term Payout is elected by a
Participant for Annual Base Salary deferrals that are deferred in the Plan Year commencing
January 1, 2006, the three (3) year Short-Term Payout would become payable during March of
2010. Notwithstanding the preceding sentences or any other provision of this Plan that may be
construed to the contrary, effective as of January 1, 2005, a Participant who is an active Key
Employee or Non-Employee Director may, with respect to each Short-Term Payout, on a form
determined by the Administrator, make one (1) or more additional deferral elections (a
“Subsequent Election”) to defer payment of all or any portion (as elected by the
Participant in accordance with procedures established by the Administrator) of such
Short-Term Payout to a Plan Year subsequent to the Plan Year originally (or subsequently)
elected; provided, however, any such Subsequent Election will be null and void unless
accepted by the Administrator no later than one (1) year prior to the first day of the Plan
Year in which, but for the Subsequent Election, such Short-Term 

 

23

 

	   	Payout would be paid, and
such Subsequent Election provides for a deferral of at least five (5) Plan Years following
the Plan Year in which the Short-Term Payout, but for the Subsequent Election, would be
paid.
	 
	   	If a Short-Term Payout election is made with respect to any Pre-2005 Annual Company Make-Up
Amount that, as of the time of payment, is as yet unvested, such unvested amounts shall not
be subject to such Short-Term Payout election, but instead shall be paid out, if vested (or
forfeited, if unvested), as of the earliest of the Participant’s Retirement, death or
Termination of Service.
	 
	4.2  	Other Benefits Take Precedence Over Short-Term Payout. Should an event occur that
triggers a benefit under Article 5, 6 or 7, any amounts that are subject to a Short-Term
Payout election under Section 4.1 shall not be paid in accordance with Section 4.1 but shall
be paid in accordance with the other applicable Article.
	 
	4.3  	Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies. If a
Participant experiences an Unforeseeable Financial Emergency, the Participant may petition the
Administrator to (i) suspend any deferrals required to be made by a Participant and/or (ii)
receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the
Participant’s vested Account Balance, calculated as if such Participant were receiving a
Termination Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial
Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the
payouts, after taking into account the extent to which the Unforeseeable Financial Emergency
is or may be relieved through reimbursement or compensation by insurance or otherwise or by
liquidation of the Participant’s assets (to the extent the
liquidation of assets would not itself cause severe financial hardship). A suspension or
payout under this Section 4.3 shall be permitted solely to the extent permitted under Code
Section 409A. If, subject to the sole discretion of the Administrator, the petition for a
suspension and/or payout is approved, suspension shall take effect upon the date of
approval and any payout shall be made within sixty (60) days of the date of approval. The
payment of any amount under this Section 4.3 shall not be subject to the Deduction
Limitation.

 

24

 

ARTICLE 5

Retirement Benefit

	5.1  	Retirement Benefit. A Participant who Retires shall receive, as a Retirement
Benefit, his or her entire vested Account Balance.
	 
	5.2  	Payment of Retirement Benefit. Except as provided below, a Participant, at the time
he or she makes an election to defer an Annual Deferral Amount under the Plan for a Plan Year
(or, with respect to his or her Pre-2005 Deferral Account, at the time he or she commences
participation in the Plan), shall elect on an Election Form to receive the portion of his or
her Account Balance attributable to Annual Deferral Amounts (and, if applicable, any Pre-2005
Company Make-Up Amounts) in a lump sum or pursuant to a Yearly Installment Method of five (5)
or ten (10) years; provided, however, that payment of the Participant’s entire vested Account
Balance shall be made in the form of a lump sum payment if the Participant’s vested Account
Balance at the time of his or her Retirement is less than twenty-five thousand dollars
($25,000). Except as otherwise required by the Administrator, such election may be made
separately with respect to (i) the Participant’s Pre-2005 Account Balance, and/or (ii) for any
Post-2004 Annual Deferral Amounts, each Plan Year’s Annual Base Salary, Short-Term Incentive
Payments, Long-Term Incentive Payments, and/or Non-Employee Director Fees that have been
deferred. If a Participant does not make any election with respect to the payment of the
Retirement Benefit, then such benefit shall be payable in a lump sum.
	 
	   	Notwithstanding the above or anything herein that may suggest otherwise, the portion (if
any) of the Participant’s Account Balance attributable to Post-2004 Annual Company Make-Up
Amounts, if any, and Post-2004 Annual Mandatory
Deferral Amounts, if any, shall be received by the Participant solely as a lump sum
payment.
	 
	   	Unless an election is changed by the Participant as provided below, such Retirement Benefit
shall be paid (or shall commence, in the case of installment payments) during either the
March or September of the Plan Year following the date of the Participant’s Retirement.
	 
	   	The preceding notwithstanding, (i) any Participant who incurs a Separation from Service
with the Company during January through June of any Plan Year shall not be entitled to
receive any portion of his or her Account Balance

 

25

 

	   	under this section until March of the
following Plan Year, and (ii) any Participant who incurs a Separation from Service with the
Company during July through December of any Plan Year shall not be entitled to receive any
portion of his or her Account Balance under this section until September of the following
Plan Year.
	 
	   	The Participant may change his or her election to an allowable alternative payout period by
submitting a new Election Form to the Administrator, provided that any such Election Form
is submitted at least one (1) year prior to the Participant’s Retirement and, if required
by Section 409A, provides for a distribution (or commencement of distributions) date which
is at least five (5) Plan Years from the distribution date then in effect. The Election
Form most recently accepted by the Administrator shall govern the payout of the Retirement
Benefit with respect to the portion of the Participant’s Account Balance to
which it pertains.
	 
	   	Notwithstanding anything above or elsewhere in the Plan to the contrary, no change
submitted on an Election Form shall be accepted by the Company if the change accelerates
the time over which distributions shall be made to the Participant (except as otherwise
permitted under Section 409A) and the Company shall deny any change made to an election if
the Administrator determines that the change violates the requirement under Section 409A
that the first payment with respect to which such election is made be deferred for a period
of not less than five (5) years from the date such payment would otherwise have been made.

ARTICLE 6

Survivor Benefit

	6.1  	Pre-Retirement Survivor Benefit. The Participant’s Beneficiary shall receive a
Pre-Retirement Survivor Benefit equal to the Participant’s entire vested Account
Balance if the Participant dies while a Key Employee or Non-Employee Director.

	6.2  	Payment of Pre-Retirement Survivor Benefit. The Pre-Retirement Survivor Benefit
shall be paid in a lump sum as soon as practicable following the date on which the
Administrator has been provided with proof that is satisfactory to the Administrator of the
Participant’s death. Any payment made hereunder shall not be subject to the Deduction
Limitation.

 

26

 

	6.3  	Death Prior to Completion of Retirement Benefit or Termination Benefit. If a
Participant dies after Retirement or Termination of Service but before the Retirement Benefit
or Termination Benefit is paid in full, the Participant’s unpaid Retirement Benefit
or Termination Benefit payments shall continue and shall be paid to the Participant’s
Beneficiary over the remaining number of years and in the same amounts as that benefit would
have been paid to the Participant had the Participant survived. Any payment made hereunder
shall not be subject to the Deduction Limitation.

ARTICLE 7

Termination Benefit

	7.1  	Termination Benefit. A Participant shall receive a Termination Benefit, which shall
be equal to the Participant’s vested Account Balance if the Participant experiences
a Termination of Service prior to his or her Retirement or death.

	7.2  	Payment of Termination Benefit. The Termination Benefit shall be paid in a lump sum
during either the March or September of the Plan Year following the date of the
Participant’s Termination of Service. The preceding notwithstanding, (i) any
Participant who incurs a Separation from Service with the Company during January through June
of any Plan Year shall not be entitled to receive any portion of his or her vested Account
Balance under this section until March of the following Plan Year, and (ii) any Participant
who incurs a Separation from Service with the Company during July through December of any Plan
Year
shall not be entitled to receive any portion of his or her vested Account Balance under
this section until September of the following Plan Year.

ARTICLE 8

Beneficiary Designation

	8.1  	Beneficiary. Each Participant shall have the right, at any time, to designate his or
her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable
under the Plan upon the death of a Participant. The Beneficiary designated under this Plan
may be the same as or different from the Beneficiary designation under any other plan of the
Company in which the Participant participates.

	8.2  	Beneficiary Designation/Change. A Participant shall designate his or her Beneficiary
by completing and signing the Beneficiary Designation Form, and

 

27

 

	   	returning it to the
Administrator or its designated agent. A Participant shall have the right to change a
Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary
Designation Form and the Administrator’s rules and procedures, as in effect from
time to time. Upon the acceptance by the Administrator of a new Beneficiary Designation Form,
all Beneficiary designations previously filed shall be canceled. The Administrator shall be
entitled to rely on the last Beneficiary Designation Form filed by the Participant and
delivered to the Administrator prior to his or her death.
	 
	8.3  	Acknowledgment. No designation or change in designation of a Beneficiary shall be
effective until received and acknowledged in writing by the Administrator or its designated
agent.
	 
	8.4  	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as
provided in Sections 8.1, 8.2 and 8.3 above or, if all designated Beneficiaries predecease the
Participant or die prior to complete distribution of the Participant’s benefits,
then the Participant’s designated Beneficiary shall be deemed to be his or her
surviving spouse, or, if the Participant has no surviving spouse, the benefits remaining under
the Plan to be paid to a Beneficiary shall be payable to the executor or personal
representative of the Participant’s estate.
	 
	8.5  	Doubt as to Beneficiary. If the Administrator has any doubt as to the proper
Beneficiary to receive payments
pursuant to this Plan, the Administrator shall have the right, exercisable in its sole
discretion, to cause the Company to withhold such payments until this matter is resolved to
the Administrator’s satisfaction.
	 
	8.6  	Discharge of Obligations. The payment of benefits under the Plan to a person
believed in good faith by the Administrator to be a valid Beneficiary shall fully and
completely discharge the Company and the Administrator from all further obligations under this
Plan with respect to the Participant, and that Participant’s Plan Agreement shall
terminate upon such full payment of benefits. Neither the Administrator nor the Company shall
be obliged to search for any Participant or Beneficiary beyond the sending of a registered
letter to such last known address. If the Administrator notifies any Participant or
Beneficiary that he or she is entitled to an amount under the Plan and the Participant or
Beneficiary fails to claim such amount or make his or her location known to the Administrator
within three (3) years thereafter, then, except as otherwise required by law, if the location
of one or more of the next

 

28

 

	  	of kin of the Participant is known to the Administrator, the
Administrator may direct distribution of such amount to any one or more or all of such next of
kin, and in such proportions as the Administrator determines. If the location of none of the
foregoing persons can be determined, the Administrator shall have the right to direct that the
amount payable shall be deemed to be a forfeiture and paid to the Company, except that the
dollar amount of the forfeiture, unadjusted for deemed gains or losses in the interim, shall
be paid by the Company if a claim for the benefit subsequently is made by the Participant or
the Beneficiary to whom it was payable. If a benefit payable to an unlocated Participant or
Beneficiary is subject to escheat pursuant to applicable state law, neither the Administrator
nor the Company shall be liable to any person for any payment made in accordance with such
law.

ARTICLE 9

Leave of Absence

	9.1  	Paid Leave of Absence. If a Participant is authorized by the Company for any reason
to take a paid leave of absence from his or her service to the Company, the Participant shall
continue to be considered employed by the Company, and the Annual Deferral Amount shall
continue to be withheld during such paid leave of absence in accordance with Section 3.4.
	 
	9.2  	Unpaid Leave of Absence. If a Participant is authorized by the Company for any
reason to take an unpaid leave of absence from his or her service to the Company, the
Participant shall continue to be considered employed by the Company, and the Participant shall
be excused from making deferrals until the earlier of the date the leave of absence expires or
the Participant returns to a paid service status. Upon such expiration or return, deferrals
shall resume for the remaining portion of the Plan Year in which the expiration or return
occurs, based on the deferral election, if any, made for that Plan Year. If no election was
made for that Plan Year, no deferral shall be withheld.

ARTICLE 10

Termination/Amendment/Modification

	10.1  	Termination. Although the Sponsor anticipates that it will continue the Plan for an
indefinite period of time, there is no guarantee that the Sponsor will continue the Plan or
will not terminate the Plan at any time in the future. Accordingly, the Sponsor reserves the
right to discontinue its sponsorship of the Plan and/or to terminate the Plan at any time with
respect to any or all of

 

29

 

	   	the Participants, by action of the Board. Without limiting the
generality of the foregoing, the Sponsor reserves the right to terminate the Plan (or for a
successor of the Sponsor to terminate the Plan), in its discretion, within twelve (12) months
of a Change In Control, and to distribute to Participants their vested Account Balances as
soon as administratively practicable following such termination. Upon a complete or partial
termination of the Plan for reasons other than a Change in Control, the Plan Agreements of the
affected Participants shall terminate and their vested Account Balances, determined as if they
had experienced a Termination of Service on the date of Plan termination or, if Plan
termination occurs after the date upon which a Participant was eligible to Retire, then with
respect to that Participant as if he or she had Retired on the date of Plan termination,
shall, subject to Section 10.6, be paid to the Participants in accordance with their
distribution elections in effect at the time of the Plan termination; provided however, if
immediate distribution of a Participant’s Account Balance on termination is not
permitted by Section 409A, the payment of the Account Balance shall be made only after Plan
benefits otherwise become due hereunder. The termination of the Plan shall not adversely
affect any Participant or Beneficiary who has become entitled to the payment of any benefits
under the Plan as of the date of termination.
	 
	10.2  	Amendment. The Sponsor may, at any time, amend or modify the Plan in whole or in
part by the action of the Administrator; provided, however, that no amendment or modification
shall be effective to decrease or restrict the value of a Participant’s vested Account Balance
in existence at the time the amendment or modification is made, calculated as if the
Participant had experienced a Termination of Service as of the effective date of the amendment
or modification or, if the amendment or modification occurs after the date upon which the
Participant was eligible to Retire, the Participant had Retired as of the effective date of
the amendment or modification. The amendment or modification of the Plan shall not affect any
Participant or Beneficiary who has become entitled to the payment of benefits under the Plan
as of the date of the amendment or modification; provided, however, that, subject to Section
409A, the Sponsor shall have the right to accelerate installment payments by paying the vested
Account Balance in a lump sum or pursuant to a Yearly Installment Method using fewer years.
	 
	10.3  	Effect of Payment. The full payment of the applicable benefit under Articles 4, 5, 6
or 7 of the Plan shall completely discharge all obligations to a Participant

 

30

 

	   	and his or her
designated Beneficiaries under this Plan and the Participant’s Plan Agreement shall terminate.
	 
	10.4  	Amendment to Ensure Proper Characterization of the Plan. Notwithstanding the
previous sections of this Article 10, the Plan may be amended at any time, retroactively if
required, or if found necessary, in the opinion of the Administrator, in order to ensure that
the Plan is characterized as a non-tax-qualified “top hat” plan of deferred compensation
maintained for a select group of management or highly compensated employees, as described
under ERISA Sections 201(2), 301(a)(3) and 401(a)(1), to conform the Plan to the provisions of
Section 409A and to ensure that amounts under the Plan are not considered to be taxed to a
Participant under the Federal income tax laws prior to the Participant’s receipt of the
amounts or to conform the Plan and the Trust to the provisions and requirements of any
applicable law (including ERISA and the Code).
	 
	10.5  	Changes in Law Affecting Taxability.

	 	(a)  	Operation. This section shall become operative upon the enactment of
any change in applicable statutory law or the promulgation by the Internal Revenue
Service of a final regulation or other pronouncement having the force of law, which
statutory law, as changed, or final regulation or pronouncement, as promulgated, would
cause any Participant to include in his or her federal gross income amounts accrued by
the Participant under the Plan on a date (an “Early Taxation Event”) prior to the date
on which such amounts are made available to him or her hereunder; provided, however,
that no portion of this Section 10.5 shall become operative to the extent that portion
would result in a violation of Section 409A (e.g., by causing an impermissible
distribution under Section 409A).
	 
	 	(b)  	Affected Right or Feature Nullified. Notwithstanding any other
section of this Plan to the contrary (but subject to subsection (c), below), as of an
Early Taxation Event, the feature or features of this Plan that would cause the Early
Taxation Event shall be null and void, to the extent, and only to the extent, required
to prevent the Participant from being required to include in his or her federal gross
income amounts accrued by the Participant under the Plan prior to the date on which
such amounts are made available to him or her hereunder. If only a portion of a
Participant’s
Account Balance is impacted by the change in the

 

31

 

	 	   	law, then
only such portion shall be subject to this section, with the remainder of the Account
Balance not so affected being subject to such rights and features as if the law were
not changed. If the law only impacts Participants who have a certain status with
respect to the Company, then only such Participants shall be subject to this section.
	 
	 	(c)  	Tax Distribution. If an Early Taxation Event is earlier than the
date on which the statute, regulation or pronouncement giving rise to the Early
Taxation Event is enacted or promulgated, as applicable (i.e., if the change in the
law is retroactive), there shall be distributed to each Participant, as soon as
practicable following such date of enactment or promulgation, the amounts that became
taxable on the Early Taxation Event.

	10.6  	Prohibited Acceleration/Distribution Timing. This Section shall take precedence over
any other provision of the Plan or this Article 10 to the contrary. No provision of this Plan
shall be followed if following the provision would result in the acceleration of the time or
schedule of any payment from the Plan as would require immediate income tax to Participants
based on the law in effect at the time the distribution is to be made, including Section 409A.
In addition, if the timing of any distribution election would result in any tax or other
penalty (other than ordinarily payable Federal, state or local income or payroll taxes), which
tax or penalty can be avoided by payment of the distribution at a later time, then the
distribution shall be made (or commence, as the case may be) on (or as soon as practicable
after) the first date on which such distributions can be made (or commence) without such tax
or penalty.

ARTICLE 11

Administration

	11.1  	Administration. Except as otherwise provided herein, the Plan shall be administered
by the Administrator. The Administrator shall be the named fiduciary for purposes of the
claims procedure pursuant to Article 13 only and shall, except as the Administrator may
otherwise determine, have authority to act to the full extent of its absolute discretion to:

	 	(a)  	Interpret the Plan;

 

32

 

	 	(b)  	Resolve and determine all disputes or questions arising under the Plan,
including the power to determine the rights of Participants and Beneficiaries, and
their respective benefits, and to remedy any ambiguities, inconsistencies or omissions
in the Plan;
	 
	 	(c)  	Create and revise rules and procedures for the administration of the Plan and
prescribe such forms as may be required for Participants to make elections under, and
otherwise participate in, the Plan; and
	 
	 	(d)  	Take any other actions and make any other determinations as it may deem
necessary and proper for the administration of the Plan.

	   	Any expenses incurred in the administration of the Plan shall be paid by the Sponsor or the
Company.
	 
	11.2  	Determinations. Except as the Administrator may otherwise determine (and subject to
the claims procedure set forth in Article 13), all decisions and determinations by the
Administrator shall be final and binding upon all Participants and Beneficiaries.
	 
	11.3  	General. No member of the Administrator shall participate in any matter involving
any questions relating solely to his own participation or benefits under this Plan. The
Administrator shall be entitled to rely conclusively upon, and shall be fully protected in any
action or omission taken by it in good faith reliance upon, the advice or opinion of any
persons, firms or agents retained by it, including but not limited to accountants, actuaries,
counsel and other specialists. Nothing in this Plan shall preclude the Sponsor or any Company
from indemnifying the Administrator and the members of the Administrator for all actions under
this Plan, or from purchasing liability insurance to protect such persons with respect to the
Plan.

ARTICLE 12

Other Benefits and Agreements

	12.1  	Coordination with Other Benefits. The benefits provided for a Participant or a
Participant’s Beneficiary under the Plan are in addition to any other benefits available to
such Participant under any other plan or program of the Company. The Plan shall supplement
and shall not supersede, modify or amend any other such plan or program except as may
otherwise be expressly provided.

 

33

 

ARTICLE 13

Claims Procedures

	13.1  	Scope of Claims Procedures. This Article is based on final regulations issued by the
Department of Labor and published in the Federal Register on November 21, 2000 and codified at
29 C.F.R. Section 2560.503-1. If any provision of this Article conflicts with the
requirements of those regulations, the requirements of those regulations will prevail.

	13.2  	Initial Claim. A Participant or Beneficiary who believes he or she is entitled to
any benefit under the Plan (a “Claimant”) may file a claim with the Administrator. The
Administrator shall review the claim itself or appoint an individual or an entity to review
the claim.

	 	(a)  	Initial Decision. The Claimant shall be notified within ninety (90)
days after the claim is filed whether the claim is allowed or denied, unless the
Claimant receives written notice from the Administrator or appointee of the
Administrator prior to the end of the ninety (90) day period stating that special
circumstances require an extension of the time for decision, such extension not to
extend beyond the day which is one hundred eighty (180) days after the day the claim
is filed.
	 
	 	(b)  	Manner and Content of Denial of Initial Claims. If the Administrator
denies a claim, it must provide to the Claimant, in writing or by electronic
communication:

	 	(i)  	The specific reasons for the denial;
	 
	 	(ii)  	A reference to the Plan provision or insurance contract
provision upon which the denial is based;
	 
	 	(iii)  	A description of any additional information or material that
the Claimant must provide in order to perfect the claim;
	 
	 	(iv)  	An explanation of why such additional material or information
is necessary;
	 
	 	(v)  	Notice that the Claimant has a right to request a review of
the claim denial and information on the steps to be taken if the Claimant
wishes to request a review of the claim denial; and

 

34

 

	 	(vi)  	A statement of the Participant’s right to bring a
civil action under ERISA Section 502(a) following a denial on review of the
initial denial.

	13.3  	Review Procedures.

	 	(a)  	Request for Review. A request for review of a denied claim must be
made in writing to the Administrator within sixty (60) days after receiving notice of
denial. The decision upon review will be made
within sixty (60) days after the Administrator’s receipt of a request for review,
unless special circumstances require an extension of time for processing, in which
case a decision will be rendered not later than one hundred twenty (120) days after
receipt of a request for review. A notice of such an extension must be provided to
the Claimant within the initial sixty (60) day period and must explain the special
circumstances and provide an expected date of decision.
	 
	 	   	The reviewer shall afford the Claimant an opportunity to review and receive,
without charge, all relevant documents, information and records and to submit
issues and comments in writing to the Administrator. The reviewer shall take into
account all comments, documents, records and other information submitted by the
Claimant relating to the claim regardless of whether the information was submitted
or considered in the initial benefit determination.
	 
	 	(b)  	Manner and Content of Notice of Decision on Review. Upon completion
of its review of an adverse initial claim determination, the Administrator will give
the Claimant, in writing or by electronic notification, a notice containing:

	 	(i)  	its decision;
	 
	 	(ii)  	the specific reasons for the decision;
	 
	 	(iii)  	the relevant Plan provisions or insurance contract
provisions on which its decision is based;
	 
	 	(iv)  	a statement that the Claimant is entitled to receive, upon
request and without charge, reasonable access to, and copies of, all
documents, records and other information in the Plan’s files which
is relevant to the Claimant’s claim for benefits;

	   	

35

 

	 	(v)  	a statement describing the Claimant’s right to
bring an action for judicial review under ERISA Section 502(a); and
	 
	 	(vi)  	if an internal rule, guideline, protocol or other similar
criterion was relied upon in making the adverse determination on review, a
statement that a copy of the rule, guideline, protocol or other similar
criterion will be provided without charge to the Claimant upon request.

	13.4  	Calculation of Time Periods. For purposes of the time periods specified in this
Article, the period of time during which a benefit determination is required to be made begins
at the time a claim is filed in accordance with the Plan procedures without regard to whether
all the information necessary to make a decision accompanies the claim. If a period of time
is extended due to a Claimant’s failure to submit all information necessary, the period for
making the determination shall be tolled from the date the notification is sent to the
Claimant until the date the Claimant responds.

	13.5  	Legal Action. If the Plan fails to follow the claims procedures required by this
Article, a Claimant shall be deemed to have exhausted the administrative remedies available
under the Plan and shall be entitled to pursue any available remedy under ERISA Section 502(a)
on the basis that the Plan has failed to provide a reasonable claims procedure that would
yield a decision on the merits of the claim. A Claimant’s compliance with the
foregoing provisions of this Article is a mandatory prerequisite to a Claimant’s right to
commence any legal action with respect to any claims for benefits under the Plan.

	13.6  	Administrator Review. Anything in this Plan to the contrary notwithstanding, the
Administrator may determine, in its sole and absolute discretion, to review any claim for
benefits submitted by a claimant under this Plan.

ARTICLE 14

Trust

	14.1  	Establishment of the Trust. The Company may establish the Trust, in which event the
Company intends, but is not required, to transfer over to the Trust at least annually such
assets as the Company determines, in its sole discretion, are necessary to provide for its
respective future liabilities created with respect to the Annual Deferral Amounts, Annual
Company Make-Up Amounts and Post-2004 Annual Mandatory Deferral Amounts for the Participants.

 

36

 

	14.2  	Interrelationship of the Plan and the Trust. The provisions of the Plan and the Plan
Agreement shall govern the rights of a Participant to receive distributions pursuant to the
Plan. The provisions of the Trust shall govern the rights of the
Company, Participants and the creditors of the Company to the assets transferred to the
Trust. The Company shall at all times remain liable to carry out its obligations under the
Plan.

	14.3  	Distributions from the Trust. The Company’s obligations under the Plan may be
satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such
distribution shall reduce the Company’s obligations under this Plan.

ARTICLE 15

Miscellaneous

	15.1  	Status of Plan. The Plan is intended to be a plan that is not qualified within the
meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer
primarily for the purpose of providing deferred compensation for a select group of management
or highly compensated employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and
401(a)(1). The Plan shall be administered and interpreted to the extent possible in a manner
consistent with that intent.

	15.2  	Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors
and assigns shall have no legal or equitable rights, interests or claims in any property or
assets of the Company. For purposes of the payment of benefits under this Plan, any and all
of the Company’s assets shall be, and remain, the general, unpledged unrestricted assets of
the Company. The Company’s obligation under the Plan shall be merely that of an
unfunded and unsecured promise to pay money in the future.

	15.3  	Company’s Liability. The Company’s liability for the payment
of benefits shall be defined only by the Plan and the Plan Agreement, as entered into between
the Company and a Participant. The Company shall have no obligation to a Participant under
the Plan except as expressly provided in the Plan and his or her Plan Agreement.

	15.4  	Nonassignability. Neither a Participant nor any other person shall have any right to
commute, sell, assign, transfer, pledge, anticipate, mortgage or

 

37

 

	  	otherwise encumber, transfer,
hypothecate, alienate or convey in advance of actual receipt, the amounts, if
any, payable hereunder, or any part thereof, which are, and all rights to which are
expressly declared to be, unassignable and non-transferable. No part of the amounts
payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or
sequestration for the payment of any debts, judgments, alimony or separate maintenance owed
by a Participant or any other person, be transferable by operation of law in the event of a
Participant’s or any other person’s bankruptcy or insolvency or be
transferable to a spouse as a result of a property settlement or otherwise.
	 
	15.5  	Not a Contract of Employment. The terms and conditions of this Plan shall not be
deemed to constitute a contract of employment between the Company and the Participant.
Subject to any employment agreement to which the Company and the Participant may be parties,
such employment is hereby acknowledged to be an “at will” employment relationship that can be
terminated at any time for any reason, or no reason, with or without cause, and with or
without notice, unless expressly provided in a written employment agreement. Nothing in this
Plan shall be deemed to give a Participant the right to be retained in the service of the
Company or to interfere with the right of the Company to discipline or discharge the
Participant at any time.
	 
	15.6  	Furnishing Information. A Participant or his or her Beneficiary shall cooperate
with the Administrator by furnishing any and all information requested by the Administrator
and take such other actions as may be requested in order to facilitate the administration of
the Plan and the payments of benefits hereunder, including but not limited to taking such
physical examinations as the Administrator may deem necessary.
	 
	15.7  	Terms. Whenever any words are used herein in the masculine, they shall be construed
as though they were in the feminine in all cases where they would so apply; and whenever any
words are used herein in the singular or in the plural, they shall be construed as though they
were used in the plural or the singular, as the case may be, in all cases where they would so
apply.
	 
	15.8  	Captions. The captions of the articles, sections and paragraphs of this Plan are for
convenience only and shall not control or affect the meaning or construction of any of its
provisions.

 

38

 

	15.9  	Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and
interpreted according to the internal laws of Maine without regard to its conflicts of laws
principles.

	15.10  	Notice. Any notice or filing required or permitted to be given to the Administrator
under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or
certified mail, to the address below:

Compensation Manager

TD Banknorth Inc.

One Portland Square

P.O. Box 9540

M/S ME058-42

Portland, Maine 04112-9540

	   	Such notice shall be deemed given as of the date of hand delivery or, if delivery is made
by mail, as of the date shown on the postmark on the receipt for registration or
certification.
	 
	   	Any notice or filing required or permitted to be given to a Participant under this Plan
shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known
address of the Participant.
	 
	15.11  	Successors. The provisions of this Plan shall bind and inure to the benefit of the
Company and its successors and assigns and the Participant and the Participant’s
designated Beneficiaries.
	 
	15.12  	Spouse’s Interest. The interest in the benefits hereunder of a spouse of a
Participant who has predeceased the Participant shall automatically pass to the Participant
and shall not be transferable by such spouse in any manner, including but not limited to such
spouse’s will, nor shall such interest pass under the laws of intestate succession.
	 
	15.13  	Validity. In case any provision of this Plan shall be illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal or invalid provision had never been
inserted herein.
	 
	15.14  	Incompetent. If the Administrator determines in its discretion that a benefit under
this Plan is to be paid to a minor, a person declared incompetent or to a

 

39

 

	   	person incapable of
handling the disposition of that person’s property, the Administrator may direct
payment of such benefit to the guardian, legal representative or person having the care and
custody of such minor, incompetent or incapable person. The Administrator may require proof
of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to
distribution of the benefit. Any payment of a benefit shall be a payment for the account of
the Participant and the Participant’s Beneficiary, as the case may be, and shall be
a complete discharge of any liability under the Plan for such payment amount.
	 
	15.15  	Court Order. The Administrator is authorized to make any payments directed by court
order in any action in which the Plan or the Administrator has been named as a party. In
addition, if a court determines that a spouse or former spouse of a Participant has an
interest in the Participant’s benefits under the Plan in connection with a property
settlement or otherwise, the Administrator, in its sole discretion, shall have the right,
notwithstanding any election made by a Participant, to immediately distribute the spouse’s or
former spouse’s interest in the Participant’s benefits under the Plan to that
spouse or former spouse in accordance with Section 409A.
	 
	15.16  	Distribution in the Event of Taxation.

	 	(a)  	In General. Subject to Section 409A, if, for any reason, all or any
portion of a Participant’s benefits under this Plan becomes taxable to the
Participant prior to receipt, the Participant may petition the Administrator, for a
distribution of that portion of his or her benefit that has become taxable. Upon the
grant of such a petition, which grant shall not be unreasonably withheld, the Company
shall distribute to the Participant immediately available funds in an amount equal to
the taxable portion of his or her benefit (which amount shall not exceed a
Participant’s unpaid vested Account Balance under the Plan). If the
petition is granted, the tax liability distribution shall be made within ninety (90)
days of the date when the Participant’s petition is granted. Such a distribution
shall affect and reduce the Participant’s benefits to be paid under this Plan.
	 
	 	(b)  	Trust. If the Trust terminates in accordance with the provisions of
the Trust and benefits are distributed from the Trust to a Participant in accordance
with such provisions, the Participant’s benefits under this Plan shall be
reduced to the extent of such distributions.

 

40

 

	15.17  	Insurance. The Company, on its own behalf or on behalf of the trustee of the Trust,
and, in its sole discretion, may apply for and procure insurance on the life of the
Participant, in such amounts and in such forms as the Company may choose. The Company or the
trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such
insurance. The Participant shall have no interest whatsoever in any such policy or policies,
and at the request of the Company shall submit to medical examinations and supply such
information and execute such documents as may be required by the insurance company or
companies to whom the Company has applied for insurance.

	15.18  	Aggregation of Employers. To the extent required under Section 409A, if the Company
is a member of a controlled group of corporations or a group of trades or business under
common control (as described in Code §414(b) or (c)), all members of the group shall be
treated as a single Company for purposes of whether there has occurred a Separation from
Service and for any other purposes under the Plan as Section 409A shall require.

           IN WITNESS WHEREOF, the Sponsor has signed this Plan document as of January 1, 2005.

	 	 	 	 	 
	 	 	TD BANKNORTH INC.
	 
	 	 	 	 
	

	 	By:	 	 /s/ Cynthia H. Hamilton
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Title:	 	 Executive Vice President
	

	 	 	 	 

 

41

 

Schedule A

Measurement Funds

Pursuant to Section 3.9(c), the Participant may elect one or more of the following Measurement
Funds:

	 	 	 	 	 	 
	 
	 	Fund Class	 	 	Measurement Fund	 
	 	Money Market

	 	 	Federated Prime Obligations Fund	 
	 	Short Term Govt. Bonds

	 	 	Federated U.S. Govt. 2-5 Years Fund	 
	 	Intermediate Bonds

	 	 	PIMCO Total Return Fund	 
	 	Large Cap Balanced

	 	 	Fidelity Puritan Fund	 
	 	Large Cap Balanced

	 	 	Janus Balanced Fund	 
	 	Large Cap Blend

	 	 	Banknorth Large Cap Core Fund	 
	 	Large Cap Blend

	 	 	Federated Max-Cap Fund	 
	 	Small Cap Blend

	 	 	Dreyfus Small Cap Stock Index Fund	 
	 	International Value Stocks

	 	 	Tweedy Browne Global Value Fund	 
	 	Common Stock Fund A

(Individual Equity)

	 	 	Stock Units (Deemed invested in TD Banknorth Inc. Common Stock)	 
	 	Common Stock Fund B

(Individual Equity)

	 	 	Stock Units (Deemed invested in The Toronto-Dominion Bank Common Stock)	 
	 

 

42

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