Document:

Exhibit
10(m)

 

05/06/03

 

SECOND AMENDMENT

OF

TRUST AGREEMENT FOR TCF FINANCIAL

SENIOR OFFICERS DEFERRED COMPENSATION PLAN

 

THIS
AGREEMENT is made this 30th day of June, 2003 by and between
TCF Financial Corporation, a Delaware corporation, (“TCF Financial”) and The
First National Bank in Sioux Falls (the “Trustee”).

 

WITNESSETH:

 

WHEREAS,
TCF Financial and the Trustee have heretofore entered into a trust agreement,
dated as of October 1, 2000, (the “Agreement”) creating the Trust for TCF
Financial Senior Officers Deferred Compensation Plan, which Agreement, as
amended, is now in full force and effect;

 

WHEREAS,
TCF Financial has reserved the power to amend the Agreement pursuant to Section
9.1 thereof; and

 

WHEREAS,
TCF Financial and the Trustee wish to amend the Agreement in certain respects;

 

NOW,
THEREFORE, the parties agree that the Agreement is hereby
amended as follows:

 

1.                                      FUNDING
OBLIGATION.  Effective January 1, 2003,
Section 2.1 of the Agreement is amended to read in full as follows:

 

Section 2.1.  From time to time the Companies shall make
contributions of cash, TCF Financial common stock, and such other property as
may be acceptable to the Trustee.

 

(a)                                  Each
contribution shall be accompanied by either (i) a statement designating the
Plan participant on behalf of whom such contribution is being made and, if more
than one account has been established for such participant pursuant to Section
4, the account to which such contribution will be credited, or (ii) a statement
that the contribution is not designated for any participant’s account, but
instead is to be applied to the payment of future Trust expenses.

 

(b)                                 The
amounts contributed with respect to each Plan participant shall be such amounts
as are necessary to keep the accounts for such Plan participant sufficient at
all times to pay in full all benefits payable with respect to such Plan
participant.

 

(c)                                  In
addition, within ten (10) business days following the occurrence of a Change in
Control, the Companies shall contribute an amount equal to 300% of the
aggregate expenses incurred by the Companies and the Trustee in administering
the Plan and the Trust during the last full calendar year immediately preceding
the occurrence of

 

 

the Change in
Control.  This contribution will not be
designated for any participant’s account, but will instead be applied to the
payment of future trust expenses.  If
the aggregate expenses that were incurred by the Companies and the Trustee in
administering the Plan and the Trust during the last full calendar year immediately
preceding the occurrence of the Change in Control cannot be determined with
reasonable certainty prior to the date on which this contribution is due, the
amount of the contribution shall be $150,000.

 

The Trustee shall be under no obligation to collect any such
contributions, and all responsibility for determining the amount, timing, and
types of contributions made to the Trustee shall be upon the Companies or their
designees.

 

2.                                      DETERMINATION
OF INSOLVENCY.  Effective January 1,
2003, Section 2.3 of the Agreement is amended to read in full as follows:

 

No portion of the Trust Fund shall be diverted to or
used for any purpose other than the payment of benefits pursuant to the Plan,
or for the payment of expenses of administering the Plan and the Trust, or for
the payment of expenses incurred in the making and administering of Trust
investments pursuant to Sections 4 and 5, until such time as the Companies’
obligations to make payments pursuant to the Plan have been fully discharged;
provided, and notwithstanding anything in this Agreement to the contrary, at
all times during the continuance of this Trust, the principal and income of the
Trust Fund shall be subject to the claims of the general creditors of the
Companies.  At any time that the Trustee
has actual knowledge, or has determined, that a Company is “Insolvent,” it
shall deliver any undistributed principal and income to satisfy such claims as
a court of competent jurisdiction may direct. 
The Board of Directors and the Chief Executive Officer of each Company
shall have the duty to inform the Trustee of that Company’s Insolvency.  If a Company or any person claiming to be a
creditor of a Company alleges in writing to the Trustee that such Company has
become Insolvent, and if the Trustee determines such allegation is made in good
faith and upon reasonable grounds, the Trustee shall immediately suspend
payments from the accounts established for participants and shall hold all
assets of such accounts subject to claims of such Company’s creditors.  The Trustee shall then request, within 10
days, from such Company sufficient information to determine if the Company is
Insolvent.  If the Company shall fail or
refuse to supply sufficient information from which the Trustee may determine if
the Company is Insolvent within 30 days of the Trustee’s request, the Trustee
shall promptly request such information from the party which alleged that the
Company is Insolvent.  If, on the basis
of the information so provided, the Trustee determines that the Company is not
Insolvent, it shall immediately resume payments from the accounts established
for participants, together with payment of any amounts held back by the Trustee
while making a determination as to Insolvency. 
If the Trustee determines that the Company is Insolvent, or if it has
not received sufficient information to make a determination as to the Company’s
solvency, it shall resume such payments (and make such payment for amounts
withheld pending the Trustee’s determination) only after the Trustee has determined
that the Company is not Insolvent or is no longer Insolvent.  Unless the Trustee has actual knowledge of a
Company’s Insolvency or has received notice from the Company or a person
claiming to be a creditor alleging that the Company is Insolvent, it shall have
no duty to inquire whether any Company is Insolvent.  The Trustee may in all events rely on such evidence concerning
the Companies’ solvency as may be furnished to the Trustee which will give it a
reasonable basis for making a determination

 

2

 

concerning the Companies’ solvency, and nothing in this Agreement shall
in any way diminish any right of the Plan’s participants or their beneficiaries
to pursue their rights as general creditors of the Companies with respect to
benefits payable to them pursuant to the Plan. 
A Company shall be considered “Insolvent” for the purposes of this
Agreement if it is unable to pay its debts as they mature, or if it is a party
as a debtor to a proceeding pending under the U.S. Bankruptcy Code or under any
other applicable state or federal bankruptcy law.

 

3.                                      PAYMENT
OF BENEFITS.  Effective January 1, 2003,
Section 3.1 of the Agreement is amended to read in full as follows:

 

Section 3.1.

 

The committee appointed to administer the Plan (the
“Committee”) shall provide the Trustee with complete instructions regarding the
form and time of payment of each account maintained under this Agreement for
each Plan participant as soon as administratively feasible after a contribution
is first credited to that account.  If a
participant’s payment instructions with respect to an account change, the
Committee shall provide the Trustee with revised instructions as soon as
administratively feasible after any such change.  Any such revised instructions that are not immediately effective
shall indicate the date on which they become effective.

 

If payment of a participant’s account has not already
commenced and the Trustee (i) has actual knowledge of the occurrence of an
event that requires payment of the account to commence (a “payment event”),
(ii) is notified by the Committee that a payment event has occurred, (iii)
determines (in the absence of actual knowledge and any notice from the
Committee) that a Change in Control has occurred as defined in Section 5.j. of
the Plan, or (iv) in the case of a participant’s termination of employment, is
notified in writing by the participant that the participant’s termination of
employment has occurred, the Trustee shall commence payment of the participant’s
account in accordance with the most recent applicable payment instruction
unless payment must be suspended due to a Company’s Insolvency as otherwise
provided in this Agreement.  The Trustee
shall make a determination with respect to whether a Change in Control has
occurred if the Trustee receives notice that a Change in Control may have
occurred from any source other than the Committee.  Promptly after receiving such notice of a possible Change in
Control, the Trustee shall request from the Committee all information relevant
to the Trustee’s determination.  If the
Committee fails to provide information sufficient to demonstrate the absence of
a Change in Control within 30 days after the Trustee’s request, and the other
information received by the Trustee indicates that a Change in Control has
occurred, the Trustee shall commence payment of accounts (that are not payable
earlier) in the manner required upon the occurrence of a Change in Control.

 

Payments made by the Trustee from an account
established for a participant shall be debited against such account and shall
cease when the balance credited to the account has been reduced to zero or if
earlier, when the Trustee determines, based upon its review of the records of
the Plan, that payment of any additional amounts from the participant’s account
will result in the payment of benefits in excess of those required under the
Plan.  The Trustee shall have no
obligation to perform such a review and consider such a determination until
after (i) the Committee notifies the Trustee and the participant (or, if the
participant has died, the participant’s beneficiary) of the potential excess
payment, (ii) the Trustee has been provided with

 

3

 

all Plan records that may be reasonably required by the Trustee to make
its determination, and (iii) the participant (or beneficiary) has had a
reasonable time (not less than 30 days) to respond.  Pending its determination, the Trustee shall continue payment of
the affected account(s) in accordance with the applicable payment instructions.

 

The Trustee shall be held harmless and shall not be
liable for its acts with respect to distributions from the Trust Fund if it has
acted in good faith in accordance with the most recent payment instructions
provided by the Committee and the provisions of this Section 3.1.

 

4.                                      PAYMENT
OF EXPENSES.  Effective January 1, 2003,
Section 3.2 of the Agreement is amended to read in ull as follows:

 

Section 3.2.  The Companies shall pay: (a) all broker fees
and other expenses incurred in connection with the sale or purchase of
investments; (b) all personal property taxes, income taxes, and other taxes of
any kind at any time levied and assessed under any present or future law upon,
or with respect to, the Trust Fund or any property included in the Trust Fund
(other than income tax amounts that are reasonably required to be withheld from
payments by the Trust to participants and beneficiaries); and (c) the Trustee’s
own compensation and all other reasonable expenses of administering the Plan
and Trust; provided, however, that payment of legal and/or professional fees
reasonably incurred by the Trustee and/or the Trust in making determinations
regarding Insolvency pursuant to Section 2.3 of this Agreement shall be made
only if TCF Financial is notified in advance of the Trustee’s retention of
legal counsel and TCF Financial or the Committee consents to such retention,
which consent shall not be unreasonably withheld.  Amounts due and payable to the Trustee that remain unpaid more
than thirty days after the Trustee gives TCF Financial notice of such amounts
shall incur interest at the highest rate of interest assessable by the Trustee
for overdue payments of any kind from any other customer.  In the event the Trustee files suit to
collect amounts due and unpaid under this Section 3.2, the Companies shall
reimburse the Trustee for the full amount of the Trustee’s reasonable costs and
attorneys’ fees incurred in connection with the initiation, maintenance and resolution
of such suit.  In any dispute regarding
amounts payable to the Trustee by the Companies pursuant to this Section 3.2,
the Companies shall have no right to any reduction in the amounts payable to
the Trustee based on the Trustee’s performance of its duties under the
Agreement (or any alleged failure to perform those duties), unless the
Trustee’s actions are shown by the Companies to have been arbitrary and
capricious.  Trust assets that are
attributable to contributions designated for the payment of plan expenses may
be used to pay the amounts payable pursuant to this Section 3.2.  None of the amounts payable pursuant to this
Section 3.2 shall be payable from Trust assets that have been designated for a
participant’s account unless and until the Trustee has exhausted all of its
other legal and equitable remedies.  In
that event all such remedies are exhausted, expenses shall be charged to the
Trust Fund without allocation among the accounts established pursuant to
Section 4, unless an expense is directly attributable to one or more accounts,
in which case such expense shall be charged directly to such accounts.  The Trustee may dispose of Trust
investments, if necessary, to provide cash assets for the payment of expenses.  The Trustee shall not delay or withhold
payment to any participant or beneficiary on account of any dispute regarding
payments due under this Section 3.2.

 

4

 

5.                                      TAX
WITHHOLDING.  Effective January 1, 2003,
Section 3.3 of the Agreement is amended to read in full as follows:

 

Section 3.3.  The Trustee shall make provision for the
reporting and withholding of any federal, state or local taxes that may be
required to be withheld with respect to payments from the Trust Fund, and shall
pay amounts withheld to the appropriate taxing authorities or determine that
such amounts have been reported, withheld and paid by the Companies.

 

6.                                      DELIVERY
OF DISTRIBUTIONS.  Effective January 1,
2003, Section 3.4 of the Agreement is amended to read in full as follows:

 

Section 3.4.  Distributions pursuant to Section 3.1 shall
be deemed to have been sufficiently made if they are sent by first class mail
to the participant or beneficiary at the address last provided to the Trustee
by the Committee, the participant or the beneficiary.  If any such distribution is returned to the Trustee unclaimed,
the Trustee shall notify the Committee and shall not make any further
distributions to such payee until a current address for such payee is
determined.  If the payee cannot be
located within twelve months after the Trustee’s notice to the Committee is
given, the Trustee shall solicit payment directions from the Committee.

 

7.                                      INVESTMENT
OF TRUST ASSETS.  Effective January 1,
2003, Section 4.1 of the Agreement is amended to read in full as follows:

 

Section 4.1.

 

a.                                       Except
as otherwise specifically provided herein, and subject to such investment
guidelines as may be adopted by the Committee and delivered to the Trustee, the
Trustee may invest, reinvest, and hold the assets of the Trust in whatever form
of investment the Trustee may see fit. 
The Trustee shall not be restricted to those investments which are
authorized by the laws of any state for the investment of trust funds.  In addition, the Trustee may, for reasonable
periods of time, hold any part or all of the Trust Fund uninvested or in cash
without liability for interest thereon, pending the investment of such funds or
the payment of costs, expenses, or benefits payable under the Plan in the
banking department of any corporate Trustee serving hereunder or of any other
bank, trust company, or other financial institution, including those affiliated
in ownership.

 

b.                                      The
Committee may from time to time direct the Trustee in the investment,
reinvestment, or disposition of the assets of the Trust.  The Trustee will follow such directions and
will have no duty to question or make inquiries as to any investment direction
of the Committee given as provided herein; provided, that the Trustee shall invest, reinvest,
and hold any assets of the Trust with
respect to which it has not received investment directions in its
discretion as provided in paragraph a.

 

c.                                       The
Trustee shall not be liable for any action taken or omitted by it pursuant to
such written directions of the Committee.

 

5

 

8.                                      CONTRIBUTIONS.  Effective January 1, 2003, the penultimate
sentence of Section 4.2 of the Agreement is amended to read in full as follows:

 

All contributions received by the Trustee on behalf of
a participant, and all dividends or distributions made with respect to property
allocated to such participant’s account, shall be credited to such account.

 

9.                                      SUBJECT
TO CLAIMS OF CREDITORS.  Effective
January 1, 2003, Section 4.3 of the Agreement is amended to read in full as
follows:

 

Section 4.3.  Notwithstanding the foregoing, the rights of
each Plan participant to the amounts credited to his account shall be subject
to the claims of the Companies’ general creditors.

 

10.                               DIRECTIONS.  Effective January 1, 2003, the last sentence
of paragraph h of Section 5.1 of the Agreement is deleted without being
replaced.

 

11.                               DIRECTIONS.  Effective January 1, 2003, paragraph c of
Section 7.1 of the Agreement is amended to read in full as follows:

 

c.                                       Any
notice, direction, certification, or other writing, given by a Plan participant
pursuant to this Agreement which is believed by the Trustee to be genuine and
to have been sent by such participant.

 

12.                               INDEMNIFICATION.  Effective January 1, 2003, the second
sentence of Section 7.2 of the Agreement is amended to read in full as follows:

 

The Trustee shall be held harmless and shall be fully
indemnified by TCF Financial, its successors and assigns from any liability,
including reasonable legal and professional services expenses, for any actions
directed pursuant to this Agreement by TCF Financial, the Committee, or any
Plan participant or beneficiary.

 

13.                               APPOINTMENT
AND REMOVAL OF TRUSTEES.  Effective
January 1, 2003, Sections 8.1 and 8.2 of the Agreement shall be amended to read
in full as follows:

 

Section 8.1.  The Trustee acting hereunder shall be one or
more qualified corporations appointed by TCF Financial to serve in such
capacity.  The number of Trustees shall
not be increased or decreased except with the written consent of at least
two-thirds of the aggregate of (i) the Plan’s participants  who are active employees, (ii) the
participants who are former employees but who are entitled to benefits under
the Plan and (iii) the beneficiaries of deceased participants who are entitled
to benefits under the Plan (counting the multiple beneficiaries of a single
participant as one beneficiary, whose consent is given only if a majority of
such beneficiaries give their consent). 
Upon any determination to increase the number of Trustees, or upon the
removal or resignation of any Trustee, the vacancy or vacancies so created
shall be filled by such qualified corporations as may be appointed by the Board
of Directors of TCF Financial and approved in writing by at least two-thirds of
the aggregate of (i) the Plan’s participants who are active employees, (ii) the
participants who are former employees but who are entitled to benefits under
the Plan and (iii) the beneficiaries of deceased participants who are

 

6

 

entitled to benefits under the Plan (counting the multiple
beneficiaries of a single participant as one beneficiary, whose consent is
given only if a majority of such beneficiaries give their consent).  If the Board of Directors of TCF Financial
fails to make such an appointment or the appointed corporation fails to receive
the required written consent, and if there is no other Trustee then acting, a
successor Trustee or Trustees shall be appointed by a court of competent jurisdiction.  Any such appointment shall be effective upon
the acceptance thereof in writing by the qualified corporation so appointed and
delivery of a signed copy of such acceptance to the Trustee then in office.

 

Section 8.2.  The Trustee, and any successor to any
Trustee, may be removed by the Board of Directors of TCF Financial at any time
upon the receipt by the Board of Directors of TCF Financial of the consent of
at least two-thirds of the aggregate of (i) the Plan’s participants who are
active employees, (ii) the participants who are former employees but who are
entitled to benefits under the Plan and (iii) the beneficiaries of deceased
participants who are entitled to benefits under the Plan (counting the multiple
beneficiaries of a single participant as one beneficiary, whose consent is
given only if a majority of such beneficiaries give their consent) to such
removal and upon the giving of 30 days’ prior written notice to such Trustee
and to any other Trustee then acting. 
Such removal shall be effective on the date specified in such written
notice; provided, that notice shall theretofore have been given to the Trustee
of the appointment of a successor Trustee or Trustees in the manner hereinafter
set forth.

 

14.                               AMENDMENT
OF TRUST.  Effective January 1, 2003,
Section 9.1 of the Agreement is amended to read in full as follows:

 

Section 9.1.  This Agreement may be amended at any time
and from time to time upon the approval of the Board of Directors of TCF
Financial; provided, however, that no amendment shall be effective unless it
has the written consent of all participants, all participants who are former
employees but who are entitled to benefits under the Plan, and all
beneficiaries of deceased participants who are entitled to benefits under the
Plan.  (If a single participant has
multiple beneficiaries, all of such beneficiaries shall be deemed to have
consented if a majority of such beneficiaries consent, and none of such
beneficiaries shall be deemed to have consented if less than a majority of such
beneficiaries consent.)  In the event
that all of the Plan’s participants and beneficiaries do not consent to a
proposed amendment, such amendment shall not take effect but the Trust assets
credited to the accounts of the consenting participants and beneficiaries shall
be transferred to a separate trust established pursuant to an agreement that is
identical to this Agreement in all respects except that it may include the
proposed amendment.

 

15.                               TERMINATION
OF TRUST.  Effective January 1, 2003,
Section 9.2 of the Agreement is amended to read in full as follows:

 

Section 9.2.  The Trust shall not be terminated until such
time as all of the Companies’ obligations to make distributions pursuant to the
Plan have been fully discharged unless all of the participants and
beneficiaries who are entitled to benefits under the Plan consent in writing to
an earlier termination.  (If a single
participant has multiple beneficiaries, all of such beneficiaries shall be
deemed to have consented if a majority of such beneficiaries consent, and none
of such beneficiaries shall be deemed to have consented if less than a majority
of such beneficiaries consent.)  If all
of such participants and beneficiaries do not consent to an early termination,
the

 

7

 

Trust shall terminate only with respect to the consenting participants
and beneficiaries but shall continue in effect with respect to the
nonconsenting participants and beneficiaries. 
Upon a termination or partial termination of the Trust, the Trust
assets, if any, that remain in the accounts established for the consenting
participants and beneficiaries shall be paid or distributed to TCF Financial or
its successors in interest.

 

*  *  *  *  *

 

IN WITNESS WHEREOF, TCF Financial and the Trustee
have executed this instrument as of the date first written above.

 

	
   

  	
  TCF
  FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory J. Pulles

  	
   

  
	
   

  	
  Title:

  	
  Vice Chairman, General Counsel and

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
							

 

[NO SEAL]

 

Attest:

 

	
  By:

  	
   /s/ Diane O.
  Stockman

  	
   

  
	
  As its:

  	
  General Counsel for Corporate Affairs

  	
   

  
					

 

 

 

	
   

  	
  THE
  FIRST NATIONAL BANK IN SIOUX

  FALLS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Dick J.
  Corcoran

  	
   

  
	
   

  	
  Title: 

  	
   Executive Vice President

  	
   

  
					

 

[NO SEAL]

 

Attest:

 

 

	
  By: 

  	
   /s/ Tom Mark

  	
   

  
	
  As its: 

  	
  Vice President and Trust Officer

  	
   

  
					

 

8Exhibit
10(r)

 

05/06/03

 

 

TCF
FINANCIAL CORPORATION

 

TCF
DIRECTORS DEFERRED COMPENSATION PLAN

 

(Amended and Restated effective as of June 1, 2003)

 

 

Table of
Contents

 

	
   

  	
   

  	
  Page

  
	
  1.

  	
  Deferral of  Stock or Fees.

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Administrative
  Committee.

  	
  2

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Deferred Compensation Accounts.

  	
  2

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Trust.

  	
  2

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Payment of Deferred
  Amounts.

  	
  3

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Emergency
  Payments.

  	
  5

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Method
  of Payments.

  	
  5

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Claims
  Procedures.

  	
  7

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Miscellaneous.

  	
  7

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Rule 16b-3.

  	
  8

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Registration;
  NYSE Listing.

  	
  9

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Accounts in the
  Prior Plan.

  	
  9

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Termination
  or Amendment.

  	
  9

  
	
   

  	
   

  	
   

  
	
  APPENDIX RE: IRS
  NOTICE 2000-56

  	
  10

  

 

i

 

TCF DIRECTORS DEFERRED COMPENSATION PLAN

 

(Amended and Restated effective as of June 1, 2003)

 

This is an amendment and
restatement of the TCF Directors Deferred Compensation Plan (the “Plan”)
previously in effect for directors of TCF Financial Corporation (“TCF
Financial”) and TCF National Bank (“TCF Bank”).  Except as may be specifically stated otherwise herein, all
provisions of this restatement are effective as of June 1, 2003.

 

1.                                      Deferral of  Stock
or Fees.

 

a.                                       From
time to time eligible directors (“Directors”) of TCF Financial or TCF Bank
(each such corporation being referred to hereinafter as the “Company”) may, by
written notice, elect to have payment of all or a portion of their directors’
fees for the next succeeding calendar year, and/or all or a portion of any
grant of shares of common stock of TCF Financial (“TCF Stock”) to the Director
made on or after such election deferred as hereinafter provided.  Each such deferral of fees or TCF Stock
shall be (and is hereinafter referred to as) a “Deferred Amount.”  Notwithstanding the foregoing, however, a
Director may not elect to defer any portion of fees or TCF Stock unless such
Director’s deferrals with respect to such year are in round percentage
increments of 10%.

 

b.                                      Any
elections with respect to Deferred Amounts of fees or TCF Stock shall be
exercised in writing by the Director prior to the latest to occur of the
following:  (i)  the beginning of the calendar year for which
the fees are to be earned; (ii) such Director’s first day of board service in
that year; (iii) the thirty-first day following the date the Director first
becomes eligible to participate in the Plan; provided that, an election
made after the first day of a calendar year shall only apply to fees earned
after the date of the election. 
Notwithstanding the foregoing, in the case of Directors who file reports
of their TCF Stock ownership on Form 4 with the Securities and Exchange
Commission, the election shall be no later than the date specified in the
preceding sentence or, if earlier, six months prior to the date on which any
fees deferred by the Director are invested in TCF Stock and that in the case of
deferral of grants of TCF Stock, the election shall be made no later than the
date specified in the preceding sentence or, if earlier, the effective date of
the grant of TCF Stock.  An election of
Deferred Amounts, once made, is irrevocable, except as provided in Section 6
hereof. An election of Deferred Amounts, once made, shall continue to be
effective for succeeding calendar years until revoked by the Director by
written request to the Secretary of TCF Financial  prior to the beginning of a calendar year for which fees would
otherwise be deferred.

 

c.                                       Deferred
Amounts shall be subject to the rules set forth in this document, and each
Director shall have the right to receive cash payments on account of previously
Deferred Amounts only in the amounts and under the circumstances hereinafter
set forth.

 

d.                                      Directors
eligible to participate in this Plan are non-employee Directors of TCF
Financial, TCF Bank or any other insured institution subsidiary of TCF
Financial from time to time. 
Eligibility shall be determined annually as of the latest practicable

 

1

 

date
prior to the commencement of each new calendar year.  In the event a Director ceases to be eligible for this Plan
during the course of a calendar year, the Director’s eligibility shall
nevertheless continue through the end of that calendar year with respect to fees
earned prior to cessation of service.

 

2.                                      Administrative Committee.  Full power and authority to construe,
interpret, and administer this document, shall be vested in the Administrative
Committee (the “Committee”) of the Board of Directors of TCF Financial, which
shall consist of such members of the Compensation/Nominating/Corporate
Governance Committee of the Board of Directors who qualify from time to time as
non-employee or independent directors under Rule 16b-3 of the Securities and
Exchange Commission.  The Committee
shall have full power and authority to make each determination provided for in
this document, and in this connection, to promulgate such rules and regulations
as the Committee considers necessary or appropriate for the implementation and
management of this Plan as are consistent with the terms of this Plan.  Notwithstanding anything in this Section 2
to the contrary, no action or determination made or taken by the Committee, and
no action or determination by the Committee affecting the amount payable under
this Plan to a participant or beneficiary, shall be entitled to any deference
by a reviewing court (i.e., judicial review of any such actions or
determinations shall be de novo).

 

3.                                      Deferred Compensation Accounts.  Each Company shall establish on its books a
separate account (“Account”) for each of its Directors who becomes a
participant in this Plan, and each such Account shall be maintained as follows:

 

a.                                       Each
Account shall be credited with the Deferred Amounts elected by the Director for
whom such Account is established as of the date on which such Deferred Amount
would otherwise have been paid to the Director.

 

b.                                      The
value of a Director’s Account is to be measured by the value of and income from
TCF Stock, in which all Deferred Amounts shall be deemed to be invested,
however such value is merely a measuring device to determine the payments to be
made to each Director hereunder.  Each
Director, and each other recipient of a Director’s Deferred Amounts pursuant to
Section 7, shall be and remain an unsecured general creditor of the Company on
whose board the Director serves with respect to any payments due and owing to
such Director hereunder.  If a Company
should from time to time, in its discretion, actually purchase the investments
deemed to have been made for a Director’s Account, either directly or through
the trust described in Section 4, such investments shall be solely for the
Company’s or such trust’s own account, and the Directors shall have no right,
title or interest therein.

 

4.                                      Trust.  TCF Financial has established a trust (of
the type commonly known as a “rabbi trust”) to aid in the accumulation of
assets for payment of Deferred Amounts. 
The trust provides for separate accounts in the name of each Director
who has elected a Deferred Amount.  Each
Company shall contribute to the trust such amounts as are necessary to keep the
separate accounts maintained for that Company’s Directors sufficient at all
times to pay in full all benefits payable under the Plan with respect to such
Company’s Directors, including, without limitation, any liquidated damages
payable to such Company’s Directors pursuant to Section 9.f.  In addition:

 

2

 

a.                                       TCF
Financial may, in its sole discretion, require the Companies to contribute
additional amounts, which TCF Financial may direct the Trustee not to credit to
an account for any Director, but instead to a general account for the payment
of Plan expenses; and

 

b.                                      within
ten (10) business days following the occurrence of a Change in Control, the
Companies shall contribute an amount equal to 300% of the aggregate expenses
incurred by the Companies and the Trustee in administering the Plan and the
trust described in this Section 4 during the last full calendar year
immediately preceding the occurrence of the Change in Control, which amount
shall also be credited to a general account for the payment of Plan
expenses.  If the aggregate expenses
that were incurred by the Companies and the Trustee in administering the Plan
and the trust during the last full calendar year immediately preceding the
occurrence of the Change in Control cannot be determined with reasonable
certainty prior to the date on which this contribution is due, the amount of
the contribution shall be $150,000.

 

The assets of the trust shall be invested in accordance with the
provisions of the agreement or agreements pursuant to which the trust is
maintained, which agreement(s) shall be consistent with the terms of this
Plan.  The trustee of the trust
(“Trustee”) shall be a corporate trustee independent of the Companies.  The trust assets shall remain subject to the
claims of the Companies’ general creditors.

 

5.                                      Payment of Deferred Amounts.

 

a.                                       On
or about the 30th day following a Director’s termination of service
on all boards of directors of the Companies, the balance credited to the
Director’s Account shall be paid in one single distribution of TCF Stock or in
annual installment distributions of TCF Stock over the number of years directed
by the Director in an election made by the Director, provided that such
election is in writing and is executed and delivered to the Committee or the
Secretary, on behalf of the Committee, no later than one year before such
Director’s termination of service.

 

b.                                      The
first payment under Section 5.a. shall be paid on a date selected by the
Committee which is no later than 30 days after the date on which the
Committee’s direction as to the form and timing of distributions is made.  Succeeding installments (if any) shall be
paid on January 31 of each calendar year following the calendar year in which
the first payment was made.

 

c.                                       Each
payment shall be made in the form of TCF Stock, and each annual installment
payment shall be equal to the number of shares credited to the Director’s
Account as of the first day of the calendar month in which the installment is
paid multiplied by a fraction, the numerator of which is one and the
denominator of which is the number of installments remaining to be paid,
including the current installment.

 

d.                                      For
purposes of this section, a Director’s service on the board is considered to
terminate as of the date which is the later of (i) Director’s last date of

 

3

 

service
for the Company as a director, or (ii) the Director’s last date of service on
the board of directors of any Company.

 

e.                                       In
the event installment payments commence and any installments are unpaid at the
time of a Director’s death, the payments shall be made at the times and in such
amounts as if the Director were living to the persons specified in Section 7.a.

 

f.                                         For
purposes of this Plan, a Change in Control shall be deemed to have occurred if
(i) any “person” as defined in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934 (the “Exchange Act”) is or becomes the “beneficial owner”
as defined in Rule 13d-3 under the Exchange Act, directly or indirectly,
of securities of TCF Financial representing fifty percent (50%) or more of the
combined voting power of TCF Financial’s then outstanding securities (for
purposes of this clause (i), the term “beneficial owner” does not include any
employee benefit plan maintained by TCF Financial that invests in TCF
Financial’s voting securities); or (ii) during any period of two (2)
consecutive years there shall cease to be a majority of the Board comprised as
follows: individuals who at the beginning of such period constitute the Board
or new directors whose nomination for election by the company’s shareholders
was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved; or (iii) the
shareholders of TCF Financial approve a merger or consolidation of TCF
Financial with any other corporation, other than a merger or consolidation
which would result in the voting securities of TCF Financial outstanding
immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of the surviving entity) at least
fifty percent (50%) of the combined voting power of the voting securities of
TCF Financial or such surviving entity outstanding immediately after such
merger or consolidation, or the shareholders of TCF Financial approve a plan of
complete liquidation of TCF Financial or an agreement for the sale or
disposition by TCF Financial of all or substantially all TCF Financial’s
assets; provided, however, that no Change in Control will be deemed to have
occurred if such merger, consolidation, sale or disposition of assets, or
liquidation is not subsequently consummated. 
The date of a Change in Control, for purposes of this Plan, is the date
on which the Change in Control is consummated.

 

g.                                      Notwithstanding
any other provision of this Section 5 or any payment schedule directed by a
Director pursuant to this Section 5 and regardless of whether payments have
commenced under this Section 5, in the event that the Internal Revenue Service
should finally determine that part or all of the value of a Director’s Deferred
Amounts or Plan Account which have not actually been distributed to the
Director, or that part or all of a separate account that has been established
for the Director under a trust described in Section 4, is nevertheless required
to be included in the Director’s gross income for federal and/or State income
tax purposes, then the Deferred Amounts or the Account or the part thereof that
was determined to be includible in gross income shall be distributed to the
Director in a lump sum distribution in the form of TCF Stock as soon as
practicable after such determination without any action or approval by the
Committee.  A “final determination” of
the Internal Revenue Service for purposes of this Section 5.h. is a
determination in writing by said Service ordering the payment of additional
tax,

 

4

 

reporting
of additional gross income or otherwise requiring Plan amounts to be included
in gross income, which is not appealable or which the Director does not appeal
within the time prescribed for appeals.

 

h.                                      Notwithstanding
the foregoing, if a Director’s balance in the Plan is less than $15,000 at the
time of the Director’s termination of service, then such account shall be
distributed to the Director in a lump sum payment (in the form of TCF Stock
except for cash for a fractional share) no later than 30 days after the
Director’s termination of service.

 

6.                                      Emergency Payments.  In the event of an “unforeseeable emergency”
as determined hereafter, the Committee may determine the shares distributable
under Section 5 hereof and distribute all or a part of such shares without
regard to the distribution dates provided in Section 5 to the extent the Committee
determines that such action is necessary in light of immediate and heavy needs
of the Director (or his beneficiary) occasioned by severe financial
hardship.  For the purposes of this
Section 6, an “unforeseeable emergency” is a severe financial hardship to the
Director resulting from a sudden and unexpected illness or accident of the
Director or beneficiary, or of a dependent (as defined in Section 152(a) of the
Internal Revenue Code of 1986, as amended) of the Director or beneficiary, loss
of the Director’s or beneficiary’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Director or beneficiary.  Payments shall not be made pursuant to this Section 6 to the
extent that such hardship is or may be relieved:  (a) through reimbursement or compensation by insurance or
otherwise, (b) by liquidation of the Director’s or beneficiary’s assets, to the
extent the liquidation of such assets would not itself cause severe financial
hardship, or (c) by cessation of the Director’s deferrals under the Plan.  Such action shall be taken only if the
Director (or the Director’s legal representatives or successors) signs an
application describing fully the circumstances which are deemed to justify the
distribution, together with an estimate of the amounts necessary to prevent
such hardship, which application shall be approved by the Committee after
making such inquiries as the Committee deems necessary or appropriate.

 

7.                                      Method of Payments.

 

a.                                       In
the event of Director’s death, payments shall be made to the persons (including
a trustee or trustees) named in the last written instrument signed by Director
and received by the Committee prior to Director’s death, or if Director fails to
so name any person, the amounts shall be paid to Director’s estate or the
appropriate distributee thereof.  The
Committee, the Company, and the Trustee shall be fully protected in making any
payments due hereunder in accordance with what the Committee believes to be
such last written instrument received by it.

 

b.                                      Payments
due to a legally incompetent person may be made in such of the following ways
as the Committee shall determine:

 

i.                                          directly
to such incompetent person,

 

ii.                                       to
the legal representative of such incompetent person, or

 

5

 

iii.                                    to
some near relative of the incompetent person to be used for the latter’s
benefit.

 

c.                                       Except
as otherwise provided in  Sections 7.a.
and b., all payments to persons entitled to benefits hereunder shall be made to
such persons in person or upon their personal receipt or endorsement, and shall
not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment by creditors of the
participant or the participant’s beneficiary.

 

d.                                      All
payments to persons entitled to benefits hereunder shall be made out of the
general assets, and shall be the sole obligations, of the Companies, except to
the extent that such payments are made out of the trust described in Section
4.  The Plan is a mere promise by the
Companies to pay benefits in the future and it is the intention of the parties
that it be “unfunded” for tax purposes (and for the purposes of Title I of the
Employee Retirement Income Security Act of 1974 (“ERISA”)).

 

e.                                       Unless
commenced earlier at the direction of the Committee or suspended due to a
Company’s Insolvency, payments from the trust described in Section 4 shall be
commenced by the Trustee (without the need for further instructions from the
Committee) in accordance with the most recent payment instructions provided by
the Committee after the Trustee (i) acquires actual knowledge of the occurrence
of an event that requires payment to commence (a “payment event”), (ii) is
notified by the Committee that a payment event has occurred, (iii) determines
(in the absence of actual knowledge and any notice from the Committee) that a
Change in Control has occurred as defined in Section 5.g. of this Plan, or (iv)
in the case of a participant’s termination of employment, is notified in
writing by the participant that the participant’s termination of employment has
occurred.  The Trustee shall make a
determination with respect to whether a Change in Control has occurred if the
Trustee receives notice that a Change in Control may have occurred from any
source other than the Committee. 
Promptly after receiving such notice of a possible Change in Control,
the Trustee shall request from the Committee all information relevant to the
Trustee’s determination.  If the
Committee fails to provide information sufficient to demonstrate the absence of
a Change in Control within 30 days after the Trustee’s request, and the other
information received by the Trustee indicates that a Change in Control has
occurred, the Trustee shall commence payment of accounts (that are not payable
earlier) in the manner required upon the occurrence of a Change in Control.

 

f.                                         Payments
made by the Trustee from an account established for a participant shall be
debited against such account and shall cease when the balance credited to the
account has been reduced to zero or if earlier, when the Trustee determines,
based upon its review of the records of the Plan, that payment of any
additional amounts from the participant’s account will result in the payment of
benefits in excess of those required under the Plan.  The Trustee shall have no obligation to perform such a review and
consider such a determination until after (i) the Committee notifies the Trustee
and the participant (or, if the participant has died, the participant’s
beneficiary) of the potential excess payment, (ii) the Trustee has been
provided with all Plan records that may be reasonably required by the Trustee
to make its determination, and (iii) the

 

6

 

participant
(or beneficiary) has had a reasonable time (not less than 30 days) to
respond.  Pending its determination, the
Trustee shall continue payment of the affected account(s) in accordance with
the applicable payment instructions.

 

8.                                      Claims Procedures.

 

a.                                       If
a claim for benefits made by any person (the “Applicant”) is denied, the
Committee shall furnish to the Applicant within 90 days after its receipt of
such claim (or within 180 days after such receipt if special circumstances
require an extension of time) a written notice which:  (i) specifies the reasons for the denial, (ii) refers to the
pertinent provisions of the Plan on which the denial is based, (iii) describes
any additional material or information necessary for the perfection of the
claim and explains why such material or information is necessary, and (iv)
explains the claim review procedures.

 

b.                                      Upon
the written request of the Applicant submitted within 60 days after his receipt
of such written notice, the Committee shall afford the Applicant a full and
fair review of the decision denying the claim and, if so requested:  (i) permit the Applicant to review any
documents which are pertinent to the claim, (ii) permit the Applicant to submit
to the Committee issues and comments in writing, and (iii) afford the Applicant
an opportunity to meet with a quorum of the Committee as a part of the review
procedure.

 

c.                                       Within
60 days after its receipt of a request for review (or within 120 days after
such receipt if special circumstances, such as the need to hold a hearing,
require an extension of time) the Committee shall notify the Applicant in
writing of its decision and the reasons for its decision and shall refer the
Applicant to the provisions of the Plan which form the basis for its decision.

 

9.                                      Miscellaneous.

 

a.                                       Except
as limited by Section 7.c. and except that a Director shall have a continuing
power to designate a new recipient in the event of Director’s death at any time
prior to such death without the consent or approval of any person theretofore
named as Director’s recipient by an instrument meeting the requirements of
Section 7.a., this document shall be binding upon and inure to the benefit of
each Company, Director, their legal representatives, successors and assigns,
and all persons entitled to benefits hereunder.

 

b.                                      Any
notice given in connection with this document shall be in writing and shall be
delivered in person or by registered mail, return receipt requested.  Any notice given by registered mail shall be
deemed to have been given upon the date of delivery indicated on the registered
mail return receipt, if correctly addressed.

 

c.                                       Nothing
in this document shall interfere with the rights of any Director to participate
or share in any profit sharing or pension plan which is now in force or which
may at some future time become a recognized plan of any Company.

 

7

 

d.                                      Nothing
in this document shall be construed as an employment agreement nor as in any
way impairing the right of any Company, its board, committees or shareholders,
to remove the Director from service as a director, to refuse to renominate or
reelect such person as a director, or to enforce the duly adopted retirement
policies of the board of directors of such Company.

 

e.                                       Amounts
that are paid more than 30 days after the later of the date on which they are
due according to the terms of this Plan or the date on which a written claim
for such amounts is received by the Committee shall incur interest at the rate
of fifteen percent per annum (eighteen percent per annum if the payment occurs
after a Change in Control) from the date as of which payment was due.  In addition, if all or any portion of the
distribution is payable in the form of TCF Financial stock, and the value of
such stock at the time of distribution is less than its value on the date as of
which payment was due, the payee shall be entitled to liquidated damages equal
to 100% (120% if the payment occurs after a Change in Control) of the aggregate
difference in value between the value of the distributed shares on the date
their distribution was due (without regard to the 30-day grace period) and the
value of the distributed shares on the actual date of distribution.

 

f.                                         Any
costs or attorneys’ fees incurred by a participant or beneficiary in connection
with the collection of benefits that were not timely paid under this Plan shall
be reimbursed by the Companies.

 

g.                                      Notwithstanding
anything in this Plan to the contrary, effective January 1, 2003, if the
beneficiary of a participant is not the participant’s spouse, the payment to
that beneficiary shall be made in the form of an immediate lump sum
distribution of the entire portion of the participant’s account payable to that
beneficiary, without regard to any outstanding installment payment election.

 

10.                               Rule 16b-3. 
This Plan is intended to qualify for the exemption from short swing
profits liability under Section 16(b) of the Securities Exchange Act of 1934 provided
by Rule 16b-3 of the Securities and Exchange Commission.  Notwithstanding anything in this Plan to the
contrary, for a director who is subject to liability under Section 16 of the
Securities and Exchange Act of 1934, the following special provisions apply:

 

a.                                       Any
election of Deferred Amounts of stock or fees under Section 1.b. shall be
exercised in writing by the Director and filed with the Committee no later than
the date prior to the date the stock grant is awarded or the first date on
which fees, part or all of which is to become a Deferred Amount, begin to be
earned.  Deferred Amounts of fees, to
the extent they are forwarded to the Trustee, shall be so forwarded on or
immediately after the date on which the fees would otherwise be paid and shall
be deemed to be invested in TCF Stock on the same date and for the same
purchase price as the Trustee actually purchases such Stock.  The Trustee shall purchase such Stock as
soon as practicable after the fees payment date for which the Deferred Amount is
received, and in any event no later than two weeks after such date, with the
exact date and purchase terms to be determined by a stock broker or other
investment professional on the basis of such person’s judgment as to the best
available purchase price for the Plan

 

8

 

and
Trust.  If Deferred Amounts are not
forwarded to the Trustee, the deferred fees shall be deemed to be invested in
TCF Stock at the average of the high and low sales prices for such Stock on the
date the fees would otherwise be paid.

 

b.                                      In
the event of one or more distributions to a Director subject to this Section
under Section 5 of this Plan, all such distributions shall consist of whole
shares of TCF Stock, plus cash for any fractional share.

 

c.                                       In
the case of a Director subject to this Section, for purposes of an emergency
payout resulting in distribution of TCF Stock, the TCF Stock shall be
distributed in kind, plus cash for any fractional share.

 

11.                               Registration; NYSE Listing.  TCF Financial may, in its discretion,
register the shares of TCF Stock subject to this Plan under the Securities Act
of 1933 and any other applicable provisions of State or Federal law, and may
enter into a listing agreement for such shares with the New York Stock
Exchange, if such actions are deemed necessary or advisable by TCF Financial in
order to provide directors with freely marketable shares.  However, nothing herein shall be deemed to
require any such registration or listing.

 

12.                               Accounts in the Prior Plan.  A Director with an account balance in the
Director Fee Deferral Plan (the “Prior Plan”) as of December 31, 1994 may elect
to have such balance invested in TCF Stock and may consent to contributions to
the Trust for such deemed investment in TCF Stock, provided that the election
is made no later than December 31, 1994 and that the resulting investment in
TCF Stock occurs no sooner than six months after such election, if the Director
is subject to reporting requirements under section 16(a) of the Securities
Exchange Act of 1934.  If a Director
does not elect to transfer the Prior Plan account balance into TCF Stock, such
account balance shall continue to be deemed to be invested in the “treasury
bill rate” set forth in the Prior Plan.

 

13.                               Termination or Amendment.  This Plan may be amended at any time and
from time to time upon the approval of the Board of Directors of TCF Financial;
provided, however, that no amendment shall be effective unless it has the
written consent of all participants, all participants who are former Directors
but who are entitled to benefits under the Plan, and all beneficiaries of
deceased participants who are entitled to benefits under the Plan.  In the event that all of the Plan’s participants
and beneficiaries do not consent to a proposed amendment, such amendment shall
not take effect but the Plan Accounts of the consenting participants and
beneficiaries shall be transferred to a separate plan that is identical to this
Plan in all respects except that it may include the proposed amendment.  The Board of Directors may terminate this
Plan in its discretion, except that any such termination shall require the
written consent of all participants, all participants who are former Directors
but who are entitled to benefits under the Plan, and all beneficiaries of
deceased participants who are entitled to benefits under the Plan, unless it is
an automatic termination of the Plan under Section 5.h. hereof.  In the event that all of the Plan’s participants
and beneficiaries do not consent to a proposed termination of the Plan, the
Plan shall terminate as to the consenting participants and beneficiaries and
shall continue in effect for the participants and beneficiaries who do not
consent.

 

9

 

APPENDIX
RE: IRS NOTICE 2000-56

 

Notwithstanding anything to the contrary in the Plan
or Trust, effective on and after May 16, 2001, TCF Financial stock or other
assets contributed to the Trust by TCF Financial or any other Company for the
benefit of Directors or service providers of TCF Financial or such Company are
subject to the claims of creditors (in the event of insolvency) of both TCF
Financial and such Company.  In
addition, such stock and assets are subject to the claims of creditors (in the
event of insolvency) of any Company from which benefits are due to a
participant or beneficiary under the terms of the Plan.  Nothing in this Appendix, however, shall
relieve any Company of its obligation to pay any benefits due from the Company
to a participant or beneficiary under the terms of the Plan.

 

Notwithstanding anything to the contrary in the Plan
or Trust, effective on and after May 16, 2001, any TCF Financial stock or other
assets not transferred to a Company’s Directors or their beneficiaries will
revert to TCF Financial upon termination of the Trust.

 

10

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