Document:

exv10w1

 

Exhibit 10.1

TD Banknorth Inc.

Plan Document  

Amended and Restated

On December 12, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 1 Definitions	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 2 Selection/Enrollment/Eligibility	 	 	10	 
	 

	 	 	2.1	 	 	Eligibility
	 	 	10	 
	 

	 	 	2.2	 	 	Enrollment Requirements
	 	 	10	 
	 

	 	 	2.3	 	 	Commencement of Participation
	 	 	10	 
	 

	 	 	2.4	 	 	Termination of Participation and/or Deferrals
	 	 	11	 
	 

	 	 	2.5	 	 	Limited Participation
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 3 Deferral Commitments/Company Contributions/Crediting/Taxes	 	 	11	 
	 

	 	 	3.1	 	 	Minimum Deferral
	 	 	11	 
	 

	 	 	3.2	 	 	Maximum Deferral
	 	 	12	 
	 

	 	 	3.3	 	 	Election to Defer/Change in Election
	 	 	12	 
	 

	 	 	3.4	 	 	Withholding of Annual Deferral Amounts
	 	 	15	 
	 

	 	 	3.5	 	 	Post-2004 Mandatory Deferrals
	 	 	15	 
	 

	 	 	3.6	 	 	Annual Company Make-Up Amount
	 	 	15	 
	 

	 	 	3.7	 	 	Investment of Trust Assets
	 	 	16	 
	 

	 	 	3.8	 	 	Vesting
	 	 	16	 
	 

	 	 	3.9	 	 	Crediting/Debiting of Account Balances
	 	 	16	 
	 

	 	 	3.10	 	 	FICA and Other Taxes
	 	 	21	 
	 

	 	 	3.11	 	 	Distributions
	 	 	21	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 4 Short-Term Payout/Unforeseeable Financial Emergencies	 	 	22	 
	 

	 	 	4.1	 	 	Short-Term Payout
	 	 	22	 
	 

	 	 	4.2	 	 	Other Benefits Take Precedence Over Short-Term Payout
	 	 	22	 
	 

	 	 	4.3	 	 	Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies
	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 5 Retirement Benefit	 	 	23	 
	 

	 	 	5.1	 	 	Retirement Benefit
	 	 	23	 
	 

	 	 	5.2	 	 	Payment of Retirement Benefit
	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 6 Survivor Benefit	 	 	24	 
	 

	 	 	6.1	 	 	Pre-Retirement Survivor Benefit
	 	 	24	 
	 

	 	 	6.2	 	 	Payment of Pre-Retirement Survivor Benefit
	 	 	25	 
	 

	 	 	6.3	 	 	Death Prior to Completion of Retirement Benefit or Termination Benefit
	 	 	25	 

i 

 

	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 7 Termination Benefit	 	 	25	 
	 

	 	 	7.1	 	 	Termination Benefit
	 	 	25	 
	 

	 	 	7.2	 	 	Payment of Termination Benefit
	 	 	25	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 8 Beneficiary Designation	 	 	25	 
	 

	 	 	8.1	 	 	Beneficiary
	 	 	25	 
	 

	 	 	8.2	 	 	Beneficiary Designation/Change
	 	 	26	 
	 

	 	 	8.3	 	 	Acknowledgment
	 	 	26	 
	 

	 	 	8.4	 	 	No Beneficiary Designation
	 	 	26	 
	 

	 	 	8.5	 	 	Doubt as to Beneficiary
	 	 	26	 
	 

	 	 	8.6	 	 	Discharge of Obligations
	 	 	26	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 9 Leave of Absence	 	 	27	 
	 

	 	 	9.1	 	 	Paid Leave of Absence
	 	 	27	 
	 

	 	 	9.2	 	 	Unpaid Leave of Absence
	 	 	27	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 10 Termination/Amendment/Modification	 	 	27	 
	 

	 	 	10.1	 	 	Termination
	 	 	27	 
	 

	 	 	10.2	 	 	Amendment
	 	 	28	 
	 

	 	 	10.3	 	 	Effect of Payment
	 	 	28	 
	 

	 	 	10.4	 	 	Amendment to Ensure Proper Characterization of the Plan
	 	 	29	 
	 

	 	 	10.5	 	 	Changes in Law Affecting Taxability
	 	 	29	 
	 

	 	 	10.6	 	 	Prohibited Acceleration/Distribution Timing
	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 11 Administration	 	 	30	 
	 

	 	 	11.1	 	 	Administration
	 	 	30	 
	 

	 	 	11.2	 	 	Determinations
	 	 	30	 
	 

	 	 	11.3	 	 	General
	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 12 Other Benefits and Agreements	 	 	31	 
	 

	 	 	12.1	 	 	Coordination with Other Benefits
	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 13 Claims Procedures	 	 	31	 
	 

	 	 	13.1	 	 	Scope of Claims Procedures
	 	 	31	 
	 

	 	 	13.2	 	 	Initial Claim
	 	 	31	 
	 

	 	 	13.3	 	 	Review Procedures
	 	 	32	 
	 

	 	 	13.4	 	 	Calculation of Time Periods
	 	 	33	 
	 

	 	 	13.5	 	 	Legal Action
	 	 	33	 
	 

	 	 	13.6	 	 	Administrator Review
	 	 	33	 

ii 

 

	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 14 Trust	 	 	33	 
	 

	 	 	14.1	 	 	Establishment of the Trust
	 	 	33	 
	 

	 	 	14.2	 	 	Interrelationship of the Plan and the Trust
	 	 	34	 
	 

	 	 	14.3	 	 	Distributions from the Trust
	 	 	34	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 15 Miscellaneous	 	 	34	 
	 

	 	 	15.1	 	 	Status of Plan
	 	 	34	 
	 

	 	 	15.2	 	 	Unsecured General Creditor
	 	 	34	 
	 

	 	 	15.3	 	 	Company’s Liability
	 	 	34	 
	 

	 	 	15.4	 	 	Nonassignability
	 	 	34	 
	 

	 	 	15.5	 	 	Not a Contract of Employment
	 	 	35	 
	 

	 	 	15.6	 	 	Furnishing Information
	 	 	35	 
	 

	 	 	15.7	 	 	Terms
	 	 	35	 
	 

	 	 	15.8	 	 	Captions
	 	 	35	 
	 

	 	 	15.9	 	 	Governing Law
	 	 	35	 
	 

	 	 	15.10	 	 	Notice
	 	 	36	 
	 

	 	 	15.11	 	 	Successors
	 	 	36	 
	 

	 	 	15.12	 	 	Spouse’s Interest
	 	 	36	 
	 

	 	 	15.13	 	 	Validity
	 	 	36	 
	 

	 	 	15.14	 	 	Incompetent
	 	 	36	 
	 

	 	 	15.15	 	 	Court Order
	 	 	36	 
	 

	 	 	15.16	 	 	Distribution in the Event of Taxation
	 	 	37	 
	 

	 	 	15.17	 	 	Insurance
	 	 	37	 
	 

	 	 	15.18	 	 	Aggregation of Employers
	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 
	Schedule A Measurement Funds	 	 	39	 

iii 

 

TD BANKNORTH INC.

DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS AND KEY EMPLOYEES

Amended and Restated

On December 12, 2006

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, and it was amended and restated effective as of May 9, 2006
to comply with the proposed regulations issued by the Internal Revenue Service in the fall of 2005
with respect to Section 409A of the Code and to permit the deferral of RSU Income as defined
herein. 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.

     This Plan is being further amended and restated to (1) extend the time period for Participants
to change their payment elections without complying with the subsequent payment election rules to
December 31, 2007, (2) clarify that Retention Payments as defined herein can be deferred, (3)
expand the definition of RSU Income, (4) provide that accounts credited with Sponsor Stock Units
will be credited with cash upon completion of the transactions contemplated by the Agreement and
Plan of Merger (the “Merger Agreement”) dated as of November 19, 2006 among TD Bank, Bonn Merger
Co. and the Sponsor, as such terms are defined herein, and (5) provide that Participants may no
longer elect Common Stock Fund A as a Measurement Fund (as such terms are defined herein) with
respect to new money effective as of January 1, 2007.

1

 

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	 	“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, restricted stock units,
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).

2

 

	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 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(d)) maintained on
the books of the Sponsor reflecting credits to Participants’ Account Balances in Sponsor Stock
Units.

	1.14	 	“Common Stock Fund B” means a Measurement Fund (as described in Section 3.9(d)) 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.

3

 

	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 shall 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 May 9, 2006.

	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 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.

4

 

	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 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, plus those employees who are subject
to Post-2004 Mandatory Deferrals pursuant to Section 3.5. A spouse or former spouse of a
Participant shall not be treated 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.

5

 

	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.

	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, Retention Payments, RSU Income 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.

6

 

	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 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 the 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 the 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, Incentive Payments
and/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 pre-2005 Plan Year, such year’s Pre-2005 Annual Deferral
Amount shall be the actual amount withheld prior to such event. Prior to the 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 the 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 the January 1, 2005
amendment and restatement to the Plan, a Participant’s Pre-2005 Deferral Account was known as the
Participant’s “Deferral Account”.

7

 

	1.43	 	“Retention Payments” mean lump sum cash payments payable to a Participant who remains
employed until a specified date, including but not limited to the lump sum cash portions of
the “Non-Competition and Retention Amounts” and “Retention Amounts” (as such terms are defined
in existing employment and retention agreements) payable to Participants who have an
employment agreement or a retention agreement with the Sponsor.

	1.44	 	“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.

	1.45	 	“Retirement Benefit” shall mean the benefit set forth in Article 5.

	1.46	 	“RSU Income” shall mean the income attributable to the restricted stock units granted to a
Participant either (i) pursuant to the 2005 Performance Based Restricted Share Unit Plan of TD
Banknorth Inc., or (ii) to the extent permitted by the Administrator, pursuant to other
benefit plans of the Sponsor or other awards made by the Sponsor. Restricted stock units that
are subject to the satisfaction of performance conditions 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 qualify as “performance-based
compensation” under Section 409A shall be treated as Incentive Payments.

	1.47	 	“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.

	1.48	 	“Separation from Service” shall mean separation from service within the meaning of Section
409A.

	1.49	 	“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.

	1.50	 	“Short-Term Payout” shall mean the payout set forth in Article 4.

	1.51	 	“Sponsor” shall mean TD Banknorth Inc., and any successor to all or substantially all of the
Sponsor’s assets or business.

8

 

	1.52	 	“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.

	1.53	 	“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.

	1.54	 	“TD Bank” means The Toronto-Dominion Bank, and any successor to all or substantially all of
TD Bank’s assets or business.

	1.55	 	“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.

	1.56	 	“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.

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

	1.58	 	“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.

	1.59	 	“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.

	1.60	 	“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.

	1.61	 	“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 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.

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	1.62	 	“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 the annual 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 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 that commences after 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.

10

 

	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, Retention Payments, RSU Income and/or Non-Employee Director Fees (as
applicable) in the minimum amount of five percent (5%) of each 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).

11

 

	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, Retention Payments, RSU Income 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	%
	Retention Payments
	 	 	100	%
	RSU Income
	 	 	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 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)	 	Retention Payment Deferrals. Except as provided
below, a Participant may elect to defer Retention Payments that require the
Participant’s continued services for a period of at least 12 months from the
date the Participant obtains a legally binding right to such Retention
Payments, provided that such deferral election is made on or before the 30th
day after the Participant obtains such legally binding right and is made at
least 12 months in advance of the earliest date on which the forfeiture
condition could lapse. Notwithstanding the preceding, Participants may elect
to defer by no later than June 30, 2006 Retention Payments payable in March
2007 and by no later than December 31, 2006 Retention Payments payable in
March 2008, provided that such elections may not accelerate the Retention
Payments. In addition, notwithstanding the foregoing, Participants may make
an initial deferral election or change their deferral election in accordance
with Section 3.3(c) hereof.

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	 	(iv)	 	RSU Income Deferrals. Except as provided below, a
Participant may elect to defer RSU Income that requires the Participant’s
continued services for a period of at least 12 months from the date the
Participant obtains a legally binding right to such RSU Income, provided that
such deferral election is made on or before the 30th day after the Participant
obtains such legally binding right and is made at least 12 months in advance
of the earliest date on which the forfeiture condition could lapse.
Notwithstanding the preceding, Participants may elect to defer by no later
than December 31, 2006 RSU Income payable in March 2008. In addition,
notwithstanding the foregoing, Participants may make an initial deferral
election or change their deferral election in accordance with Section 3.3(c)
hereof.
	 
	 	(v)	 	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).
	 
	 	(vi)	 	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, Retention Payments, RSU
Income 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, Retention Payments, RSU
Income 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
modification, or the availability thereof, prevents the proper deferral of
tax with respect to such amount(s).

13

 

	 	(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)(vi) above and except
as set forth below, a Participant may not elect to change his or her deferral or
payment election that is in effect for a Plan Year.

	 	(i)	 	Transitional Elections Prior to 2008. On or before
December 31, 2007, if a Participant wishes to change his or her payment
election, the Participant may do so by completing a payment election form
approved by the Administrator, provided that any such election (A) must be
made at least 12 months before the date on which benefit payments are
scheduled to commence, (B) must be made while the Participant is an active
employee or director of the Company or one of its subsidiaries, (C) shall not
take effect before the date that is 12 months after the date the election is
made and accepted by the Administrator, (D) does not cause a payment that
would otherwise be made in 2006 (or, for elections made in 2007, payments that
would otherwise be made in 2007) to be delayed to a later year, and (E) does not accelerate into 2006 or 2007 a payment that is otherwise
scheduled to be made in a later year.
	 
	 	(ii)	 	Changes in Payment Elections After 2007. On or after
January 1, 2008, if a Participant wishes to change his or her payment
election, a Participant may do so by completing a payment election form
approved by the Administrator, provided that any such election (A) must be
made while the Participant is an active employee or director of the Company or
one of its subsidiaries, (B) must be made at least 12 months before the date
on which any benefit payments as of a fixed date or pursuant to a fixed
schedule are scheduled to commence, (C) shall not take effect until at least
12 months after the date the election is made and accepted by the
Administrator, and (D) for payments to be made other than upon death, must
provide an additional deferral period of at least five years from the date
such payment would otherwise have been made (or in the case of any life
annuity or installment payments treated as a single payment, five years from
the date the first amount was scheduled to be paid). For purposes of this
Plan and clause (D) above, all installment payments under this Plan shall be
treated as a single payment.

14

 

	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
Retention Payments portion of the Annual Deferral Amount shall be withheld at the time the
Retention Payments are or otherwise would be paid to the Participant. The RSU Income portion
of the Annual Deferral Amount shall be withheld at the time the RSU Income is or otherwise
would be paid to the Participant. 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 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 combined with 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.

15

 

	 	 	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.

	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 Retention Payments deferrals on or
after May 9, 2006, another attributable to the portion of the Participant’s Account
Balance which represents RSU Income deferrals on or after May 9, 2006, 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.

16

 

	 	(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 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, except as set forth in the
penultimate paragraph of Section 3.9(f) hereof.
	 
	 	(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).

17

 

	 	(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, provided that
Common Stock Fund A shall no longer be available with respect to new money effective
as of January 1, 2007. 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 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, Incentive Payments,
Retention Payments, RSU Income or Non-Employee Director Fees 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 month, no earlier than three (3) business days prior to the
distribution, at the closing price on such date.

18

 

	 	(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). Except as provided below, 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.

19

 

	 	 	 	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 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, provided that at the Effective Time of the Merger (as such terms are
defined in the Merger Agreement), all Sponsor Stock Units credited to any
Participant’s Account Balance shall cease to represent a notional investment in
Sponsor Common Stock and shall be converted into a notional cash amount equal to
the product of (x) the number of Sponsor Stock Units credited to such account
multiplied by (y) the Merger Consideration (as defined in the Merger Agreement),
and thereafter Participants may elect one or more Measurement Funds with respect to
such notional cash amounts.
	 
	 	 	 	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 (A) the total number of Sponsor
Stock Units (or TD Bank Stock Units, as applicable) in such Common Stock
Sub-Account on the applicable installment payment date, multiplied by (B) a
fraction, the numerator of which is one (1) and the denominator of which is the
remaining number of installments to be paid to the Participant, with the product of
(A) and (B) to then be multiplied by (C) the Price per Share of the Sponsor Common
Stock (or the TD Bank Common Stock as applicable) on the applicable installment
payment date.
	 
	 	(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.

20

 

	 	(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, Retention Payments, RSU Income 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, Incentive Payments, Retention
Payments and/or RSU Income 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.

21

 

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, Retention Payment, RSU Income 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, Retention Payment, RSU Income 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 Payout would be paid, and, for Subsequent Elections made on or after January 1, 2008, 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, 7 or 10, 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.

22

 

	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) cease 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 cessation of deferrals and/or payout is
approved, cessation shall take effect upon the date of approval and any payout shall be made
within sixty (60) days of the date of approval. Any later deferral elections will be subject
to the provisions governing initial deferral elections in Section 3.3 of the Plan. The
payment of any amount under this Section 4.3 shall not be subject to the Deduction Limitation.

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, Retention Payments, RSU Income 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.

23

 

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,
subject to compliance with Section 409A with respect to the payment of Post-2004 Annual
Mandatory Deferral Amounts.

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 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, unless an election is changed by the Participant as provided below.

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 complies with
the requirements of Section 3.3(c) above. 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 Section 3.3(c)(i) above) 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.

24

 

	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.

	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 that commences after the date of the
Participant’s Termination of Service, subject to compliance with Section 409A with respect to
the payment of Post-2004 Annual Mandatory Deferral Amounts. 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.

25

 

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

26

 

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 the Participants, by action of the Board. A complete or
partial termination of the Plan shall not be a distributable event except as set forth
below, and each Participant will be paid his or her Account Balance in accordance with each
Participant’s then current payment elections. 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. The Sponsor may, in its
discretion, elect to terminate the Plan in any of the following three circumstances and
accelerate the payment of the entire vested Account Balance of each Participant in
accordance with Section 409A of the Code:

	 	(i)	 	the Plan is terminated within the 30 days preceding a Change In Control and
(1) all substantially similar arrangements sponsored by the Sponsor are terminated,
and (2) all Participants in the Plan and all participants under the substantially
similar arrangements receive all of their benefits under the terminated arrangements
within 12 months of the date of termination of the arrangements,

27

 

	 	(ii)	 	the Plan is terminated and (1) all arrangements sponsored by the Sponsor that
would be aggregated with the Plan under Treasury Regulation §1.409A-1(c) if a
Participant participated in all of the arrangements are terminated, (2) no payments
other than payments that would be payable under the terms of the arrangements if the
termination had not occurred are made within 12 months of the termination of the
arrangements; (3) all payments are made within 24 months of the termination of the
arrangements; and (4) the Sponsor does not adopt a new arrangement that would be
aggregated with the Plan under Treasury Regulation §1.409A-1(c) if the same
Participant participated in both arrangements, at any time within five years following
the date of termination of the Plan, or
	 
	 	(iii)	 	the Plan is terminated within 12 months of a corporate dissolution taxed
under Section 331 of the Code, or with the approval of a bankruptcy court pursuant to
11 U.S.C. §503(b)(1)(A), provided that the amounts deferred by each Participant under
the Plan are included in the Participant’s gross income in the later of (1) the
calendar year in which the Plan termination occurs, or (2) the first calendar year in
which the payment is administratively practicable.

	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. Notwithstanding anything in the Plan to the
contrary, the Sponsor may amend in good faith any terms of the Plan, including
retroactively, in order to comply with Section 409A.

	10.3	 	Effect of Payment. The full payment of the applicable benefit under Articles 4, 5,
6, 7 or 10 of the Plan shall completely discharge all obligations to a Participant and his or
her designated Beneficiaries under this Plan and the Participant’s Plan Agreement shall
terminate.

28

 

	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 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.

29

 

	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 an acceleration of the time or
schedule of any payment from the Plan that would trigger either the tax or interest penalties
under Section 409A or an Early Taxation Event. 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;
	 
	 	(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.

30

 

	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.

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;

31

 

	 	(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

	 	(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;

32

 

	 	(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;
	 
	 	(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 Administrator 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,
provided that the terms of the Trust comply with Section 409A.

33

 

	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 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.

34

 

	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.
	 
	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.

35

 

	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 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.

36

 

	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.

	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.

37

 

     IN WITNESS WHEREOF, the Sponsor has signed this amended and restated Plan document as of
December 12, 2006.

	 	 	 	 	 
	 	TD BANKNORTH INC.

 	 
	 	By:  	/s/ Cynthia H. Hamilton	 
	 	 	Name:  	Cynthia H. Hamilton 	 
	 	 	Title:  	Executive Vice President, Human Resources 	 

38

 

	 	 	 	 	 

Schedule A

Measurement Funds

Pursuant to Section 3.9(b), 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

	 	Dodge & Cox Balanced Fund
	Large Cap Blend

	 	Legg Mason Value 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)

 

			
	*	 	Not available with respect to new money effective as of January 1, 2007.

39exv10w2

 

Exhibit 10.2

TD BANKNORTH INC.

PERFORMANCE-BASED

2007 RESTRICTED STOCK UNIT AWARD AGREEMENT — CASH SETTLEMENT

AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN

     THIS AWARD AGREEMENT (the “Agreement”) is made as of this 12th day of December 2006, effective
as of January 1, 2007 (hereinafter referred to as the “Date of Grant”) by and between TD Banknorth
Inc. (the “Company”) and                      (the “Participant”). Defined terms, unless otherwise
defined herein, shall have the same meaning as set forth in the Plan (as hereinafter defined).

WITNESSETH:

     WHEREAS, the Company has adopted the Amended and Restated 2003 Equity Incentive Plan (the
“Plan”), which is hereby incorporated in its entirety by reference herein; and

     WHEREAS, the Company desires to grant to the Participant Performance-Based Restricted Stock
Units, as described in the Plan.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the Company and the Participant agree as follows:

     1. Restricted Stock Units. The Company hereby grants to the Participant an Award of
                     Performance-Based Restricted Stock Units (the “Target Units”), with each Target Unit
representing one share of common stock, $0.01 par value per share, of the Company (the “Common
Stock”), upon the terms and conditions set forth herein. The number of Target Units is subject to
adjustment as provided in the Plan and in this Agreement. The Target Units represent an unfunded,
unsecured deferred compensation obligation of the Company.

     2. Performance Result and Performance Target.

     (a) The “Performance Result” to be used for calculating the Performance Factor is the Total
Shareholder Return achieved by The Toronto-Dominion Bank over the 3-year period from the end of the
fiscal year of The Toronto-Dominion Bank immediately preceding the Date of Grant to the end of the
fiscal year of The Toronto-Dominion Bank immediately preceding December 31, 2009 (the “Maturity
Date”).

     (b) The “Performance Target” to be used for calculating the Performance Factor is the average
Total Shareholder Return achieved by a comparative group of major banks over the 3-year period from
the end of the fiscal year of The Toronto-Dominion Bank immediately preceding the Date of Grant to
the end of the fiscal year of The Toronto-Dominion Bank immediately preceding the Maturity Date.
The comparative group of major banks for purposes of this Agreement will be the group selected by The Toronto-Dominion Bank under the TDBFG Performance Share Unit Plan for awards
with similar performance periods, as determined by the Committee.

 

 

     (c) “Total Shareholder Return” is the change in market value of the common shares of The
Toronto-Dominion Bank (the “Parent Common Shares”) (or the common shares of the other major banks
used in the peer group, as the case may be) calculated as at the end of the fiscal year immediately
preceding the Maturity Date, expressed as a percentage of the market value calculated as at the end
of the fiscal year immediately preceding the Date of Grant (based on the closing price on the last
trading day in October 2006) and compounded annually, assuming quarterly reinvestment of dividends.
As an example, a percentage of ten percent shall be shown as 10.0%, and the percentages shall be
rounded to one decimal place.

     3. Performance Factor and Actual Units.

     (a) The Performance Factor is a multiple expressed as a percentage that is determined by
comparing the Performance Result to the Performance Target, pursuant to the following formula, and
rounded to one decimal place:

     Performance Factor = ((Performance Result — Performance Target) x 3) + 100

     (b) Limitation on Performance Factor. The Performance Factor can never be less than 80% or
greater than 120% even if the calculation of the Performance Factor results in a number that is
less than 80% or greater than 120%.

     (c) Calculation of Number of Actual Units. The number of Target Units will be multiplied by
the Performance Factor to determine the number of Actual Units. However, notwithstanding any other
provision in this Agreement to the contrary, if the Agreement and Plan of Merger dated as of
November 19, 2006 (the “Merger Agreement”) among the Company, The Toronto-Dominion Bank and Bonn
Merger Co. is terminated for any reason, then the performance criteria specified herein, including
the Performance Result, the Performance Target and the Performance Factor, shall be inapplicable,
and the Target Units will vest on the third annual anniversary of the Date of Grant as if this
Agreement was a time-based vesting award from the Date of Grant. If the Merger Agreement is
terminated for any reason, the number of Actual Units shall equal the number of Target Units.

     4. Adjustments to Number of Actual Units.

     (a) The performance criteria and targets and the service requirement were determined based on
a full three-year cycle. The number of Actual Units will be multiplied by a Service Percentage as
defined below to determine the number of Final Units to be paid out.

     (b) For Participants who remain continuously employed with the Company for the entire period
from January 1, 2007 through and including December 31, 2009 (the “Service Period”), the Service
Percentage shall equal 100%. For Participants whose employment is terminated during the Service
Period due to death or Disability, the Service Percentage shall equal 100%. For Participants whose
employment is terminated during the Service Period due to Retirement (as defined below), the Service Percentage shall equal the following quotient: (a) the number of calendar weeks from
January 1, 2007 through and including the date of Retirement, divided by (b) 156 weeks, rounded to
the nearest one-tenth of a percent. For Participants who are on an unpaid leave of absence at any
time on or after January 1, 2007 through and including December 31, 2009, the Service Percentage
shall equal the following quotient: (x) the number of calendar weeks the Participant was actively
working for the Company during the period January 1, 2007 through and including December 31, 2009,
divided by (y) 156 weeks, rounded to the nearest one-tenth of a percent.

2

 

     (c) In the event a Change of Control occurs during the Service Period, the Service Percentage
for each Participant who is employed by the Company immediately prior to the Change of Control
shall be calculated as if the Participant had remained employed with the Company through and
including December 31, 2009. The consummation of the transactions contemplated by the Merger
Agreement will not constitute a Change in Control as defined in the Plan.

     (d) For purposes of this Agreement, “Retirement” means voluntary termination of employment
with the Company or any Affiliate after the Participant has attained age 55 with at least ten years
of service to the Company.

     (e) If the Participant’s employment by the Company shall be terminated during the Service
Period and prior to a Change in Control for any reason other than death, Disability or Retirement,
including without limitation a termination of employment for “cause” (as determined pursuant to
Section 13(b) of the Plan) or a voluntary termination of employment by the Participant, then this
Agreement and the Target Units covered hereby shall expire immediately upon such termination and
all of the Target Units shall be forfeited. The Participant shall thereafter have no rights under
this Agreement and no rights to receive the cash payment specified in Section 4 below. The Company
shall have the power in all cases to determine whether the Participant has been terminated for
cause and the date upon which such termination for cause occurs. Any such determination shall be
final, conclusive and binding upon the Participant.

     (f) As of the Effective Time of the Merger, as such terms are defined in the Merger Agreement,
the number of Target Units will be adjusted as provided below, and each adjusted Target Unit will
represent one Parent Common Share instead of one share of Company Common Stock. The number of
notional Parent Common Shares subject to this Agreement as adjusted will be equal to the product of
(x) the number of notional shares of Company Common Stock underlying the Target Units immediately
prior to such adjustment multiplied by (y) the “Exchange Ratio”, as defined in the Merger
Agreement.

     5. Settlement of Final Units in Cash.

     (a) Except as set forth in Sections 4(b) and 4(c) below, as soon as administratively feasible
following the Maturity Date but in no event later than March 15, 2010, the Company shall pay a lump
sum cash amount to the Participant equal to (i) the average of the closing sales prices of one
share of Common Stock on each of the 20 consecutive trading days on which such prices are so quoted
immediately preceding the Maturity Date (the “Maturity Date Share Price”), multiplied by (ii) the
number of Final Units, minus applicable withholding. If a Participant’s employment is terminated
due to death, Disability or Retirement, the cash payment to the Participant for his or her Final Units shall be made as soon as administratively feasible following the Maturity Date but
in no event later than March 15, 2010.

3

 

     (b) Except as provided in Section 4(c) below, if a Change of Control occurs during the Service
Period, then the Company shall, within 60 days following the Change of Control, pay a lump sum cash
amount to the Participant equal to (i) the closing sales price of one share of Common Stock on the
last trading day immediately preceding the date of the Change of Control, multiplied by (ii) the
number of Final Units, minus applicable withholding.

     (c) If the Effective Time of the Merger occurs prior to the Maturity Date or prior to a Change
in Control, then (i) all references in this Section 5 to “Common Stock” shall be deemed to be a
reference to “Parent Common Shares,” (ii) the Maturity Date Share Price will be calculated by using
the average of the high and low prices quoted on The Toronto Stock Exchange for one Parent Common
Share (based on board lot prices) on each of the 20 consecutive trading days on which such prices
are so quoted immediately preceding the Maturity Date, with such prices converted into United
States dollars using the spot exchange rate reported in The Wall Street Journal, for each
applicable day, on the business day immediately following such day, and (iii) the price used for
purposes of Section 5(b)(i) above shall be the average of the high and low prices quoted on The
Toronto Stock Exchange for one Parent Common Share (based on board lot prices) on the last trading
day immediately preceding the date of the Change in Control, with such prices converted into United
States dollars as set forth in the preceding clause.

     6. Withholding. The Company’s obligation to deliver the cash payment specified in
Section 4 hereof shall be subject to the Participant’s satisfaction of all applicable federal,
state, local and other income and employment tax withholding requirements as required by the Plan.

     7. No Voting of Underlying Shares of Common Stock; No Dividends. Because no shares of
Common Stock or Parent Common Shares, as applicable, will be issued pursuant to this Agreement, the
Participant shall have no right to vote the underlying shares of Common Stock or Parent Common
Shares, as applicable, at any time or to receive any dividends thereon.

     8. Terms and Conditions. The terms and conditions included in the Plan are
incorporated herein by reference, and to the extent that any conflict may exist between the terms
and conditions included in the Plan and the terms of this Agreement, the terms and conditions
included in the Plan shall control.

     9. Transferability. Neither this Agreement nor the Target Units covered by this
Agreement nor the cash payable for the Final Units may be assigned, alienated, pledged, attached,
sold or otherwise transferred, encumbered or disposed of by the Participant at any time, except
that this Agreement, the Target Units and the cash payable for the Final Units may be transferred
by will or the laws of descent and distribution or pursuant to a QDRO.

     10. Administration and Interpretation. The authority to interpret and administer this
Agreement shall be vested in the Committee, and the Committee shall have all powers with respect to
this Agreement as it has with respect to the Plan. Any interpretation of the Committee of the
provisions of the Plan or this Agreement made in good faith shall be final and binding on all
parties.

     11. Not an Employment Contract. The grant of the Target Units covered by this
Agreement does not confer on the Participant any right with respect to continuance of employment or
other Service with the Company or any Affiliate, nor shall it interfere in any way with any right

4

 

the Company or any Affiliate would otherwise have to terminate or modify the terms of the
Participant’s employment or other Service at anytime.

     12. Notices. Any written notice provided for in this Agreement or the Plan shall be
in writing and shall be deemed sufficiently given if it is hand delivered, sent by fax or overnight
courier, or sent by postage paid first class mail. Notices sent by mail shall be deemed received
three business days after mailing but in no event later than the date of actual receipt. Notices
shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s
records, or if to the Company, at the following address: TD Banknorth Inc., P.O. Box 9540, Two
Portland Square, Portland, Maine 04112-9540 Attention: General Counsel.

     13. Amendment. Except as provided herein, this Agreement may not be amended or
otherwise modified unless evidenced in writing and signed by the Company and the Participant. In
the event that the Committee determines, after a review of Section 409A of the Code and all
applicable Internal Revenue Service guidance, that the Plan or any provision thereof or Award
thereunder should be amended to comply with Section 409A of the Code, the Committee may amend the
Plan and this Agreement to make any changes required to comply with Section 409A of the Code.

     14. No Personal Liability. The Participant agrees that no member of the Committee or
of the Board or the Company or its Affiliates shall be personally liable for any actions taken in
good faith in connection with the Plan or this Agreement.

     15. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware.

[NOTE: Section 16 below is only for inclusion in grant agreements for the officers who have an
employment or retention agreement.]

     16. Consent to Amended Definition. The Company and the Participant expressly agree
that, notwithstanding any provision in any employment or retention agreement between the Company
and the Participant to the contrary, the term “Change of Control” shall have the meaning set forth
in the Plan, and not as set forth in any employment or retention agreement between the Company and
the Participant. The Participant acknowledges that the definition of Change of Control included in
the Plan may in certain circumstances be less favorable to the Participant, and the Participant
agrees to such change. Except as expressly noted in this Section 16, this Agreement shall not by
implication or otherwise alter, modify, amend or in any way affect any of the terms of any
employment or retention agreement between the Company and the Participant.

5

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant has hereunto set his or her hand, all as of the day first
above written.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ATTEST:	 	TD BANKNORTH INC.
	 
	 	 	 	 	 	 
	 
	 	By: 	 
	 

	Name:

	 	 

	 	Name:	 	 

	Title:

	 	 

	 	Title:	 	 

	 
	 	 	 	 	 	 
	 	 	 	 	PARTICIPANT
	 	 	 	 	 

	 

	 	 	 	Name:
	 	 

6

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