Document:

EMPLOYMENT AGREEMENT WITH RICHARD J. RZASA

 

		
	[TD WATERHOUSE LOGO]	[TD WATERHOUSE LETTERHEAD]

Exhibit 10.10

		
	 	
        October 1, 1999

Richard Rzasa

211 Third Street - #2

Hoboken, NJ 07030

Dear Mr. Rzasa:

     
TD Waterhouse Group, Inc. (the “Company”)
hereby offers to employ you upon the following terms and
conditions:

1.  Position, Duties and Responsibilities.

     
a.  The Company shall employ you in the position of
Executive Vice President. You shall perform your assigned duties
at the Company or at one of its subsidiaries or affiliates. You
shall devote your full time and efforts to the performance of
all of the duties associated with that position as well as any
and all other duties Company management may from time to time
designate or assign.

     
b.  During your employment, you may not, without prior
written consent of the Company, accept an appointment, whether
or not for remuneration, as Director, Officer, Manager, Employee
or Consultant of a company or business that is not affiliated
with the Company.

2.  Employment.

     
This Agreement shall become effective, and your employment as
provided shall commence, on October 1, 1999 (the
“Effective Date”) and shall continue through
the third anniversary of the Effective Date (such period
hereinafter referred to as the “Term”), subject
to earlier termination as provided in Section 6 hereof.
Notwithstanding the preceding sentence, commencing with
October 1, 2002 and on each October 1 thereafter (each
an “Extension Date”), the Term shall be automatically
extended for an additional one-year-period, unless the Company
or you provide the other party hereto 90 days’ prior
written notice before the next Extension Date

2

 

that the Term shall not be so extended. For the avoidance of
doubt, “Term” shall include any extension that becomes
applicable pursuant to the preceding sentence.

3.    Compensation.

     
a.    Base Salary. You will receive a base
salary at the rate of $250,000 per annum (“Base
Salary”), payable in accordance with the Company’s
prevailing payroll practices. You shall be entitled to such
increases in Base Salary, if any, as may be determined from time
to time in the sole discretion of the Management Resources and
Compensation Advisory Committee of the Board of Directors of the
Company (the “Committee”).

     
b.    Annual Bonus. You will be eligible to
participate in the Company’s annual performance-based bonus
program for each calendar year of service during the Term. Such
Annual Bonus shall be established by the Committee in its sole
discretion and payable in accordance with Company practices.

     
c.    Stock-Based Awards. You will be eligible
to participate in stock-based compensation plans of the Company
or any affiliate as determined by the Committee.

4.    Benefits.

     
The Company shall provide you, in accordance with the terms of
the Company’s employee benefit plans in effect from time to
time, health and short and long term disability coverage,
retirement benefits and fringe benefits (collectively
“Employee Benefits”) on the same basis as those
benefits are generally made available to employees of similar
position.

5.    Expenses.

     
All documented and verified, reasonable and necessary expenses
which you incur in connection with the performance of your
duties hereunder shall be reimbursed in accordance with the
Company’s general policies.

6.    Termination of Employment.

     
Your employment hereunder may be terminated by either party at
any time and for any reason other than death or retirement upon
30 days advance written notice; provided that the Company may
immediately terminate your employment for Cause. Notwithstanding
any other provision of this Agreement, the provisions of this
Section 6 shall exclusively govern your rights upon
termination of employment.

     
a.    Death or Disability. Your employment
shall terminate on your death, and the Company may terminate
your employment on account of your Disability. Upon termination
under this Section 6(a), you or your estate (i) shall
be entitled to receive only that portion of your Base Salary
earned, but unpaid, as of the date of termination [and
(ii) a pro rata portion of any Annual Bonus that you would
have been entitled to receive pursuant to Section 3(b)
hereof in such year based upon the percentage of the calendar
year that shall have elapsed through the date

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of your termination of employment, payable when such Annual Bonus
would have otherwise been payable had your employment not
terminated.] Benefits shall cease in accordance with the terms of the
applicable Company policies or plans. As used herein,
“Disability” shall mean your inability to perform in all
material respects your duties and responsibilities to the company, or
any affiliate of the Company, by reason of a physical or mental
disability or infirmity which inability is reasonably expected to be
permanent and has continued (i) for a period of six consecutive
months or (ii) such shorter period as the Committee may
reasonably determine in good faith. The Disability determination
shall be in the sole discretion of the Committee and your (or your
representative) shall furnish the Committee with medical evidence
documenting your disability or infirmity which is satisfactory to
the Committee.

     b.     With
Cause.     The Company shall have the right to terminate your
employment for Cause (as defined below). Upon the effective date of a
termination under this Section 6(b), you (i) shall be
entitled to receive only that portion of your Base Salary earned, but
unpaid, as of the date of termination and (ii) shall not be
entitled to any unpaid Annual Bonus. Benefits shall cease or be paid
in accordance with the terms of the applicable Company policies or
plans.

     c.     Without
Cause.     The Company, in its discretion, shall have the right
to terminate your employment without Cause. Upon your termination
without Cause you shall be entitled to, subject to your continued
compliance with the provisions of Sections 7, 8, 9 and 10, (upon
your execution of a General Release in the standard form used by the
Company) (i) Base Salary earned to the date of termination,
(ii) continued payment of Base Salary and your average Annual
Bonus (calculated based on the prior 2 years) until
24 months after your termination of employment (the
"Severance Period"). All other benefits shall cease or be paid based
on your date of termination in accordance with applicable Company
policies or plans. No benefit accruals based on service, including,
but not limited to, vacation benefits, shall accrue beyond the
effective date of termination.

     d.     Voluntary
Resignation.     You shall have the
right to resign from your employment and if the Company, elects in
its sole discretion, you shall be entitled to, subject to your
continued compliance with the provisions of Sections 7, 8, 9 and
10, (upon your execution of a General Release in the standard form
used by the Company) (i) Base Salary earned to the date of
termination, (ii) continued payment of Base Salary and average
Annual Bonus (calculated based on the prior 2 years) until
12 months after your termination of employment (the
"Severance Period") and (iii) employee health benefits
continuation for the Severance Period. All other benefits shall cease
or be paid based on your date of termination in accordance with
applicable Company policies or plans. No benefit accruals based on
service, including, but not limited to, vacation benefits, shall
accrue beyond the effective date of termination. In event that Company
fails to notify you in writing of the foregoing election within 10
business days of receipt of your notice of resignation, Company shall
have waived its right to such election.

     e.     As
used herein, “Cause” shall mean:

 

			
	 	(i) 	
        your continued failure to substantially perform your duties
        hereunder (other than as a result of total or partial incapacity
        due to physical or

		
	 	
        mental illness) for a period of 10
        days following written notice by the Company to you of such
        failure or upon such written notice if, in the good faith
        judgment of the Company, you would not be able to rectify such
        failure within 10 days;

		
	 	     
        (ii)  dishonesty in the performance of your duties
        hereunder;
	 
	 	     
        (iii)  an act or acts on your part constituting (x) a
        felony under the laws of the United States or any state thereof
        or (y) a misdemeanor involving dishonesty, breach of trust
        or moral turpitude;
	 
	 	     
        (iv)  your willful malfeasance or willful misconduct in
        connection with your duties hereunder or any act or omission
        which is materially injurious to the financial condition or
        business reputation of the Company or any of its subsidiaries or
        affiliates; or
	 
	 	     
        (v)  your breach of the provisions of Sections 7, 8, 9
        or 10 of this Agreement.

7.  Non-Competition.

     
You acknowledged and recognize the highly competitive nature of
the discount broker business of the Company and its
affiliates and accordingly agree that while you are employed
with the Company, and for a period of 12 months
following the termination of your employment by the Company or,
if elected pursuant to Section 6(d), your resignation of
employment (the “Restricted Period”), you will not
directly or indirectly, (i) engage in any business that
competes with the discount broker business of the Company
or its affiliates (including, without limitation, discount
broker businesses which the Company or its affiliates have
specific plans to conduct in the future and as to which you are
aware of such planning), (ii) enter the employ of, or
render any services to, any person engaged in any discount
broker business that competes with the discount
broker business of the Company or its affiliates,
(iii) acquire a financial interest in, or otherwise become
actively involved with, any person engaged in any discount
broker business that competes with the discount
broker business of the Company or its affiliates, directly
or indirectly, as an individual, partner, shareholder, officer,
director, principal, agent, trustee or consultant, or
(iv) interfere with business relationships (whether formed
before or after the date of this Agreement) between the Company
or any of its affiliates and customers, suppliers, partners,
members or investors of the Company or its affiliates.

     
Notwithstanding anything to the contrary in this Agreement, you
may, directly or indirectly own, solely as an investment,
securities of any person engaged in the discount broker
business of the Company or its affiliates which are publicly
traded on a national or regional stock exchange or on the
over-the-counter market if you (i) are not a controlling
person of, or a member of a group which controls, such person
and (ii) do not, directly or indirectly, own 1% or
more of any class of securities or such person.

4

5

  8.  Non-Solicitation.

     
While you are employed with the Company, and during the
Restricted Period:

     
(a)  you will not recruit or hire any current employee or
consultant of the Company (or any person who was an employee or
consultant of the Company within the prior 12 month), or
otherwise solicit or induce, directly or indirectly, or cause
other persons to solicit or induce, any such employee or
consultant to leave the employment or service of the Company, to
become an employee of or otherwise be associated with you or any
company or business with which you are or may become associated
or to encourage or assist in the hiring process or any employee
or consultant of the Company or in the modification of any such
employee’s or consultant’s relationship with the
Company; and

     
(b)  you will not, directly or indirectly, solicit the
trade or business of any clients or customers of the Company,
regardless of location, with respect to any such client or
customer as of the time of termination.

  9.  Non-Disclosure of Confidential
Information.

     
You will not at any time, whether during your employment or
following the termination of your employment, for any reason
whatsoever, and forever hereafter, directly or indirectly
disclose or furnish to any firm, corporation or person, except
as otherwise required by law, any confidential or proprietary
information of the Company with respect to any aspect of its
operations or affairs. “Confidential or proprietary
information” shall mean information generally unknown to
the public to which you gain access by reason of your employment
by the Company and includes, but is not limited to, information
relating to business and marketing plans, sales, trading and
financial data and strategies, salaries and employees benefits
and operational costs.

10.  Return of Company Property and Company Work
Product.

     
All records, files, memoranda, reports, customer information,
client lists, documents, equipment, and the like, relating to
the business of the Company, which you shall use, prepare, or
come into contact with, shall remain the sole property of the
Company. You agree that on request of the Company, and in any
event upon the termination of your employment, you shall turn
over to the Company all documents, papers, or other material in
your possession and under your control which may contain or be
derived from confidential information, together with all
documents, notes, or other work product which is connection with
or derived from your services to the company whether or not such
material is in your possession. You agree you shall have no
proprietary interest in any work product developed or used by
you and arising out of employment by the Company.

11.  Right to Injunctive Relief.

     
The undertaking in Section 7 (Non-Competition), Section 8
(Non-Solicitation), Section 9 (Non Disclosure of
Confidential Information) and Section 10 (Return of Company

Property and Work Product) hereof shall survive the termination
of your employment with the Company for any reason whatsoever.
You acknowledge that the Company will suffer irreparable injury,
not readily susceptible of valuation in monetary damages, if you
breach any of your obligations under Sections 7, 8, 9
or 10. Accordingly, in addition to any other rights and
remedies which the Company may have, you agree that the Company
will be entitled to injunctive relief against any breach or
prospective breach by you of your obligations under
Sections 7, 8, 9 or 10 in any federal or state court
of competent jurisdiction located in New York State. You hereby
submit to the jurisdiction of said courts for the purpose of any
actions or proceedings instituted by the Company to obtain such
injunctive relief, and agree that process may be served on you
by registered mail at your last address known to the Company, or
in any other manner authorized by law, and that you will pay the
Company’s costs and reasonable attorney’s fees in the
event the Company is required to initiate a proceeding for
injunctive relief to enforce the provisions hereof, and such an
injunction is issued.

12.  Notices.

     
Any notice to be given hereunder shall be in writing and
delivered personally or sent by certified mail, postage prepaid,
return receipt requested, addressed to the party concerned at
the address indicated below or to such other address as such
party may designate in writing:

	 	 	 	 	 	 	 
	
	
	
	

	
        
        To:

        	 	
        Richard Rzasa	 	
        To:	 	
        TD Waterhouse Group, Inc.
	 	 	
        211 Third Street – #2	 	 	 	
        100 Wall Street
	 	 	
        Hoboken, NJ 07030	 	 	 	
        New York, NY 10005

     
Any notice delivered personally under this Section shall be
deemed given on the date delivered, and any notice sent be
certified mail, postage prepaid, return receipt requested, shall
be deemed given on the date mailed.

13.  Savings.

     
Should any provision herein be rendered or declared legally
invalid or unenforceable by a court of competent jurisdiction or
by the decision of an authorized governmental agency, such
invalidation of such part shall not invalidate the remaining
portions thereof.

14.  Other Agreements.

     
You represent and warrant that you are not a party to any
agreement or bound by any obligation which would prohibit you
from accepting and agreeing hereto or fully performing the
obligation hereunder.

15.  Complete Agreement.

     
The provisions herein contain the entire agreement and
understanding of the parties and fully supersede any and all
prior agreements or understandings between them pertaining to
the subject matter hereof. There have been no representations,
inducements,

7

promises or agreements of any kind which have been made by
either party, or by any person acting on behalf of either party,
which are not embodied herein. The provisions hereof may not be
changed or altered except in writing duly executed by you and a
duly authorized agent of the Company.

16.  Withholding Taxes.

     
The Company may withhold from any amounts payable under this
Agreement, such federal, state and local taxes as may be
required to be withheld pursuant to any applicable law or
regulation.

17.  Applicable Law.

     
The interpretation and application of the terms herein shall be
governed by the laws of the State of New York without regard to
principles of conflict of laws.

18.  Consent to Jurisdiction.

     
The sole jurisdiction and venue for actions related to the
subject matter of this Agreement shall be the courts of the
State of New York, the court of the United States of America for
the Southern District of New York, and appellate courts from any
of the foregoing.

19.  No Waiver.

     
Any failure by either party to exercise its rights to terminate
this Agreement or to enforce any of its provisions shall not
prejudice such party’s rights of termination or enforcement
for any subsequent or further violation or defaults by the other
party.

20.  Titles.

     
Titles to the sections in this Agreement are intended solely for
convenience and no provision of this Agreement is to be
construed by reference to the title of any section.

21.  Counterparts.

     
This Agreement may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original but all
of which together shall constitute one and the same instrument.

     
If the foregoing terms of employment are acceptable, please so
indicate in the space provided below.

		
	 	
        Sincerely,

			
	 	By: 	
        /s/ A. WAYNE KYLE 

         

		
	 	
        Name:  A. Wayne Kyle

			
	 	Title: 	
        Executive Vice President
	 	 	
        Human Resources

AGREED AND ACCEPTED:

		
	Signed: 	
        /s/ RICHARD J. RZASA 

         

Printed:  Richard J. Rzasa

		
	Date:	
        12/7/99THE TORONTO-DOMINION 2000 STOCK INCENTIVE PLAN

TABLE OF CONTENTS

									
		                           THE TORONTO-DOMINION BANK
		1.   Purpose
		2.   Definitions
		3.   Eligibility
		4.   Administration
		5.   Award Grant Limitations
		6.   Terms of Options
		7.   Terms of Stock Appreciation Rights
		8.   Other Stock-Based Awards
		9.   Award Agreements
		10.  Non-transferability of Awards
		11.  Termination of Awards
		12.  Withholding Taxes
		13.  Adjustments
		14.  Amendment and Termination of the Plan
		15.  Government and Other Regulations
		16.  Plan Does Not Confer Employment or Shareholder Rights
		17.  Shareholder Approval and Effective Dates
		18.  Applicable Law
	TRANSFER AND ASSUMPTION AGREEMENT
	TRANSFER AND ASSUMPTION AGREEMENT
	SHARE TRANSFER AGREEMENT
	AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
	CERTIFICATE OF DESIGNATION
	MASTER SERVICES AGREEMENT
	TAX SHARING AGREEMENT
	EMPLOYMENT AGREEMENT WITH BHARAT B. MASRANI
	EMPLOYMENT AGREEMENT WITH RICHARD J. RZASA
	THE TORONTO-DOMINION 2000 STOCK INCENTIVE PLAN
	AMENDMENT TO THE MASTER SERVICE AGREEMENT
	AMENDMENT TO THE MASTER SERVICE AGREEMENT
	COVERED EMPLOYEE CASH INCENTIVE PLAN
	LIST OF SUBSIDIARIES
	FINANCIAL DATA SCHEDULE

Exhibit 10.11

THE TORONTO-DOMINION BANK

2000 STOCK INCENTIVE PLAN

	1.	 	Purpose

        The purpose of The Toronto-Dominion Bank 2000 Stock Incentive Plan is to
provide selected management employees and non-employee directors of The
Toronto-Dominion Bank (the “Bank”) an opportunity to benefit from the
appreciation in the value of the common shares of the Bank, thus linking
participating employees’ and directors’ interests with those of the
shareholders, providing incentives to, and promoting Share ownership by,
participating employees and directors through the granting of Awards,
motivating and rewarding performance that is consistent with the Bank’s
long-term performance objectives and assisting with long-term retention of key
employees and directors.

	2.	 	Definitions

        The following capitalized terms used in the Plan have the respective
meanings set forth in this Article:

	(a)	 	Agreement: The written agreement between the Bank and each Participant
governing each Award, as described in Section 9 hereof.
	 
	(b)	 	Approval Date: The date of approval of the Plan by the shareholders of
the Bank.
	 
	(c)	 	Award: An Option, SAR or Other Stock-Based Award granted pursuant to the
Plan as determined from time to time by the Board or the Committee and set
out in an Agreement.
	 
	(d)	 	Bank: The Toronto-Dominion Bank.
	 
	(e)	 	Board: The Board of Directors of the Bank.
	 
	(f)	 	Committee: The Toronto-Dominion Bank Management Resources Committee or
such other committee or persons designated by the Board for the purpose of
administering the Plan.
	 
	(g)	 	Fair Market Value: The Fair Market Value on any given day, in the case
of an Option or an Other Stock-Based Award, shall be the closing price of
the Shares on the TSE on such day, and in the case of a SAR, shall be
equal to the average of daily high and low board lot trading prices of the
Shares as reported by the TSE on such day.
	 
	(h)	 	Option: An option to purchase Shares granted under the Plan.
	 
	(i)	 	Option Price: The exercise price of an Option, as determined in
accordance with Section 6(a).

 

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	(j)	 	Other Stock-Based Awards: Awards granted under Section 8 of the Plan.
	 
	(k)	 	Participant: An employee of the Bank or a Subsidiary or a non-employee
director of the Bank who has been selected by the Committee to receive an
Award under the Plan.
	 
	(l)	 	Plan: The Toronto-Dominion Bank 2000 Stock Incentive Plan as set forth
herein, as from time to time amended.
	 
	(m)	 	Regulation: Rules and regulations established by the Board or the
Committee with respect to the implementation and administration of the
Plan.
	 
	(n)	 	Shares: The common shares of the Bank.
	 
	(o)	 	Stock Appreciation Right or SAR: A stock appreciation right granted
under the Plan.
	 
	(p)	 	Subsidiary: A subsidiary of the Bank within the meaning of the Bank Act
(Canada).
	 
	(q)	 	Termination Date: With respect to each Option, a date fixed by the
Committee; provided that such date shall not be later than the tenth
anniversary of its date of grant.
	 
	(r)	 	TSE: The Toronto Stock Exchange.

	3.	 	Eligibility

        All management employees of the Bank and its Subsidiaries and all
non-employee directors of the Bank are eligible to be granted Awards. The
Committee shall, subject to the Regulations and in its sole discretion,
establish procedures to select those Participants to be granted Awards from
time to time and the number of Options, SARs or Other Stock-Based Awards
covered by any Award.

	4.	 	Administration
	 
	(a)	 	The Plan shall be administered by the Committee. The Committee shall
have full and complete authority to interpret the Plan and to prescribe
Regulations and make such other determinations as it deems necessary or
desirable for the administration of the Plan.
	 
	(b)	 	The Committee may appoint the Chief Executive Officer, President or the
senior officer of the Bank responsible for human resources to act on its
behalf and in accordance with its determinations to administer the Plan
and implement its decisions (the “Administrator”).
	 
	(c)	 	Subject to the provisions of the Plan, the Regulations and to any
relevant resolutions of the Board, the Committee shall, in its discretion,
determine which Participants shall be granted Awards and the terms and
conditions of Awards.

 

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	(d)	 	All decisions made, or actions taken, by the Committee or the Board
arising out of or in connection with the interpretation and administration
of the Plan or any related resolution of the Board or Regulations
established with respect to the Plan shall be final and conclusive.
	 
	(e)	 	The Committee shall make such Regulations and establish such terms,
conditions and limitations with respect to the grant of Awards including,
without limitation, determining the number of Options, SARs and Other
Stock-Based Awards to be granted, employees and non-employee directors to
be eligible and otherwise, as may be necessary or desirable in order to
ensure that the Plan achieves its objectives in compliance with all laws
and regulatory requirements applicable to the Plan, grants of Awards and
employees and non-employee directors participating in the Plan. In
particular, the Committee may make such Regulations and establish such
terms, conditions and limitations in relation to the grant of any Award to
any employee or director who is not a resident of Canada as it determines
to be necessary or advisable having regard to any securities, tax or other
laws or regulations which may be applicable to the Bank, any Subsidiary or
such employee or director in connection with the grant of an Award or the
Shares to be delivered upon the exercise thereof.

	5.	 	Award Grant Limitations

        The total number of Shares available for grants of Awards shall be 30
million, subject to adjustment in accordance with Sections 11(f) and 13 of the
Plan. These Shares may be authorized but unissued Shares or issued and
outstanding Shares available for delivery to the Participant upon exercise of
an Award and may be Shares reserved for or related to an Award previously
granted to the extent the Award, or a portion thereof, has expired, been
forfeited or terminated or been canceled for any reason without having been
exercised in full. Notwithstanding the foregoing, (i) at no time shall the
number of Shares reserved for issuance to any one Participant under the Plan or
any other share compensation arrangement exceed 5% of the total number of
issued and outstanding Shares, (ii) at no time shall the number of Shares
reserved for issuance pursuant to Awards granted to “insiders” (as that term is
defined in Section 627 of the Company Manual of the TSE) exceed 10% of the
total number of issued and outstanding Shares, (iii) under no circumstances
shall insiders be issued in excess of 10% of the total number of issued and
outstanding Shares within any one-year period pursuant to the exercise of
Options granted under the Plan or any other share compensation arrangement,
(iv) under no circumstances shall any one insider and that insider’s associates
(as that term is defined in Section 627 of the Company Manual of the TSE) be
issued in excess of 5% of the total number of issued and outstanding Shares
within any one year period pursuant to the exercise of Options granted under
the Plan or any other share compensation arrangement, and (v) in any year,
Awards granted to any non-employee director shall not provide the right to
acquire more than 5000 Shares in aggregate.

	6.	 	Terms of Options

        Awards of Options shall be subject to such terms and conditions which the
Committee shall establish, including the following:

 

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	(a)	 	Option Price: The Option Price for each Option granted shall be
determined by the Committee but in no event shall the Option Price be less
than the Fair Market Value on the last date on which Shares were traded on
the TSE before the date the Option was granted.
	 
	(b)	 	Period of Exercise: The Committee shall determine the dates after which
Options may be exercised in whole or in part; provided however, that no
Option shall be exercisable later than its Termination Date. The
Committee may in its discretion amend an Option to accelerate the date
after which such Option may be exercised in whole or in part. An Option
which has not been exercised on or prior to its Termination Date shall be
canceled.
	 
	(c)	 	Manner of Exercise and Payment: Options may be exercised in whole or in
part by delivery of a written notice of exercise to the Bank in accordance
with any applicable Regulation specifying the number of Shares to be
purchased and payment of the full Option Price of the Shares being
purchased pursuant to the Option. The Bank shall deliver to the
Participant that number of fully paid and freely transferable Shares from
treasury or otherwise as permitted by law.

	7.	 	Terms of Stock Appreciation Rights

        Awards of SARs shall be subject to such terms and conditions which the
Committee shall establish, including the following:

	(a)	 	Grants: The Committee may grant (i) a SAR independent of an Option, or
(ii) a SAR in connection with an Option, or a portion thereof. A SAR
granted pursuant to clause (ii) of the preceding sentence (A) may be
granted at the time the related Option is granted or at any time prior to
the exercise or cancellation of the related Option, (B) shall cover the
same Shares covered by an Option (or such lesser number of Shares as the
Committee may determine), and (C) shall be subject to the same terms and
conditions as such Option except for such additional limitations as are
contemplated by this Section 7.
	 
	(b)	 	Exercise Price: The exercise price per Share of a SAR shall be an amount
determined by the Committee but in no event shall be less than the greater
of (i) the Fair Market Value of a Share on the last date on which Shares
were traded on the TSE before the date the SAR was granted or, in the case
of a SAR granted in conjunction with an Option, or a portion thereof, the
Option Price of the related Option, and (ii) a minimum amount permitted by
applicable laws, rules, by-laws or policies of regulatory authorities or
stock exchanges. Each SAR granted independent of an Option shall entitle
a Participant upon exercise to an amount equal to the excess of (A) the
Fair Market Value on the exercise date of one Share over (B) the exercise
price per Share. Each SAR granted in conjunction with an Option, or a
portion thereof, shall entitle a Participant to surrender to the Bank the
unexercised Option, or any portion thereof, and to receive from the Bank
in exchange therefor an amount equal to the excess of (A) the Fair Market
Value on the exercise date of one Share over (B) the Option Price per
Share covered by the Option which is surrendered.
	 
	(c)	 	Manner of Exercise and Payment: SARs may be exercised from time to time
upon actual receipt by the Bank of written notice of exercise stating the
number of Shares with respect to which the SAR is being exercised. The
date a notice of exercise is received by the Bank shall be the 

 

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	 	 	exercise
date. Payment shall be made in Shares or in cash, or partly in Shares and
partly in cash (any such Shares valued at such Fair Market Value), all as
shall be determined by the Committee. No fractional Shares will be issued
in payment for SARs, but instead cash will be paid for a fraction.
	 
	(d)	 	Limitations: The Committee may impose, in its discretion, such
conditions upon the exercisability or transferability of SARs as it may
deem fit.

	8.	 	Other Stock-Based Awards

        The Committee, in its sole discretion, may grant to Participants Awards of
Shares, Awards of restricted Shares and Awards that are valued in whole or in
part by reference to, or are otherwise based on the Fair Market Value of,
Shares on the last date on which Shares were traded on the TSE before the date
such Award was granted (“Other Stock-Based Awards”). Other Stock-Based Awards
shall be in such form, and dependent on such conditions, as the Committee shall
determine, including, without limitation, the right to receive one or more
Shares (or the equivalent cash value of such Shares) upon the completion of a
specified period of service, the occurrence of an event, or the attainment of
performance objectives. Other Stock-Based Awards may be granted alone or in
addition to any other Award granted under the Plan. Subject to the provisions
of the Plan, the Committee shall determine to whom and when Other Stock-Based
Awards will be made; the number of Shares to be awarded under (or otherwise
related to) the Other Stock-Based Awards; whether the Other Stock-Based Awards
shall be settled in cash, Shares or a combination of cash and Shares; and all
other terms and conditions of the Other Stock-Based Awards, including, without
limitation, the vesting provisions thereof and provisions ensuring that all
Shares so awarded and issued shall be fully paid and non-assessable.

 

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	9.	 	Award Agreements

        All Awards shall be evidenced by Agreements. The Agreements shall be
subject to the applicable provisions of the Plan and the Regulations pursuant
to the Plan, and shall contain such provisions as are required by the Plan and
any other provisions the Committee may prescribe.

	10.	 	Non-transferability of Awards
	 
	(a)	 	Each Award shall, during the Participant’s lifetime, be exercisable only
by the Participant, and, subject to Section 10(b) hereof, the Award and
any rights thereunder shall not be transferable otherwise than by will and
the laws of succession, and shall not be subject to attachment, execution
or other similar process; provided, however, that to the extent permitted
by applicable law, with respect to any Award, a Participant may designate
a beneficiary pursuant to procedures which may be established by the
Committee. In the event of any attempt by the Participant to alienate,
assign, pledge, hypothecate or otherwise dispose of an Award or of any
right hereunder, except as provided for herein, or in the event of any
levy or any attachment, execution or similar process upon the rights or
interest hereby conferred, the Bank may terminate the Award by notice to
the Participant and the Award shall thereupon be canceled.
	 
	(b)	 	Notwithstanding the foregoing, a Participant, where permitted by law, may
with the Administrator’s consent, assign an Option to his or her spouse;
minor children; minor grandchildren; a personal holding corporation
controlled by the Participant where the other shareholders of such
corporation are no one other than a spouse, minor children or minor
grandchildren of the Participant; a family trust, where the optionee is
one of the trustees and the beneficiaries are no one other than a spouse,
minor children or minor grandchildren of the Participant; or his or her
registered retirement savings plan. Notwithstanding the foregoing
provisions of this paragraph 10(b), options which are “incentive stock
options” as defined for the purposes of tax, securities or other
applicable laws of the United States of America may not be assigned.

	11.	 	Termination of Awards
	 
	(a)	 	At termination of employment of a Participant with the Bank and any
Subsidiary as a result of resignation or for cause, all outstanding Awards
granted to that Participant shall be forfeited immediately upon the date
of resignation or the date of notice of termination for cause, as the case
may be.
	 
	(b)	 	If the employment of a Participant is terminated without cause, any
outstanding Awards granted to that Participant which are exercisable at
the last day of active employment (whether or not following any reasonable
period of notice of termination of employment) and which become
exercisable in the 60 days following the last day of active employment may
be exercised at any time on or before the expiration of such 60-day
period. After that time all unexercised Awards and all Awards not yet
exercisable will be forfeited by the terminated Participant. For greater
certainty, aside from Awards which become exercisable in the 60 days
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	 	 	employment, no Awards will become
exercisable during any statutory or common law period of notice of
termination of employment.
	 
	(c)	 	Upon retirement from employment with the Bank or any Subsidiary in
accordance with the retirement policies of the Bank and its Subsidiaries,
all Awards granted to such a retired Participant will remain outstanding
and will become exercisable in accordance with their terms; provided,
however, that no Awards exercisable by a retired employee Participant may
be exercised after the later of (i) three (3) years after all of the
Awards in each Award year become exercisable, (ii) one (1) year after the
date of retirement, or (iii) such other period as determined by the
Committee, in its discretion, from time to time upon written notice to the
Participants.
	 
	(d)	 	If a Participant who is employed by the Bank or a Subsidiary has died or
become permanently disabled, (determined in accordance with the applicable
disability policies of the Bank and its Subsidiaries), all Awards then
held by such Participant shall be exercisable from the date of death or
permanent disability to the earlier of (i) the date for each such Award
that is ten years following the date of issue of such Award, and (ii) the
date that is three years after the date of death or permanent disability,
or such other period as determined by the Committee, in its discretion,
from time to time upon written notice to the Participants.
	 
	(e)	 	Upon a Participant who is a non-employee director of the Bank ceasing to
be a director of the Bank for any reason, all Awards granted to such a
Participant will remain outstanding and will become exercisable as if the
Participant were a retired employee.
	 
	(f)	 	Notwithstanding the foregoing,

	 	(i)	 	no Award may be exercised later than 10 years after the date
upon which it was granted; and
	 
	 	(ii)	 	the Committee has the discretion and authority (A) to amend
the exercise terms of Awards granted to any person whose employment
by the Bank and its Subsidiaries or whose term as a director of the
Bank has ceased for any reason, including by accelerating the
exercise dates of such Awards in any circumstances considered
appropriate by the Committee, including, without limitation, the
occurrence of any event which the Committee considers to be a
material change in the business or control of the Bank; and (B) to
cancel any Awards granted to any such person who is determined by
the Committee to be engaged in activities which are competitive with
those of the Bank or its Subsidiaries. For greater certainty, no
damages shall be recoverable by a Participant and no compensation
shall be paid to a Participant with respect to any amendments or
cancellations of Awards by the Committee or with respect to any
rights or benefits the Participant would otherwise have been
entitled to under this Plan.

	(g)	 	A Participant may surrender any outstanding Awards to the Bank and all
such surrendered Awards shall be canceled. The total number of Shares
available for grants of Awards shall be reduced by the number of Awards
surrendered. Subject to the last sentence of this Section 11(g), the Bank
will make a cash payment to a Participant in respect of a surrendered
Award exercisable as of the surrender date, provided such payment shall
not exceed the difference between the Fair Market

 

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	 	 	Value of the Option or
the Other Stock-Based Award, as the case may be, and the Option Price or
the value assigned to the Other Stock-Based Award when granted, as the
case may be, on the surrender date (or if no Shares were traded on the TSE
on such date, on the last date on which Shares were traded on the TSE
before the surrender date). Notwithstanding anything to the contrary in
this Agreement, the Committee, in its discretion, may at any time and upon
written notice to the Participants remove the feature contemplated under
this Section 11(g).

	12.	 	Withholding Taxes

          The Bank may require a Participant to pay to the Bank the amount that the
Bank deems necessary to satisfy its obligation to withhold federal, provincial,
state or local income or other taxes arising in respect of the grant of Awards
or their exercise. Such amount may be satisfied by the withholding by the Bank
of Shares or any cash amounts which would otherwise be delivered upon the
exercise of an Award.

	13.	 	Adjustments

          If the Bank shall declare a dividend payable in, or shall subdivide or
combine, its Shares, is involved in a recapitalization or reorganization, or if
any other event including, without limitation, the occurrence of any event
which the Committee considers to be a material change in the business or
control of the Bank shall occur, which in the judgment of the Committee
necessitates action by way of adjusting the terms of the outstanding Awards
including by adjusting the number of Shares under any Award, the Committee may
take any such action as in its judgment shall be necessary to preserve the
Participants’ rights substantially proportionate to the rights existing prior
to such event and, to the extent that such action shall include an increase or
decrease in the number of Awards and/or Shares subject to outstanding Awards,
the number of Awards and/or Shares available and the maximum number that may be
granted to any non-employee director under Section 5 above may be increased or
decreased, as the case may be, proportionately. The judgment of the Committee
with respect to any such adjustments shall be conclusive and binding upon each
Participant. The exercise by the Committee of its authority under this Section
is subject to the approval of the Board as and when required by applicable
laws, rules, by-laws or policies of regulatory authorities or stock exchanges.

 

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	14.	 	Amendment and Termination of the Plan
	 
	(a)	 	The Board may at any time, or from time to time, suspend or terminate the
Plan in whole or in part or amend it in such respects as the Board may
deem appropriate, subject to applicable laws, rules, by-laws or policies
of regulatory authorities or stock exchanges; provided however, that no
such amendment shall be implemented without approval of the shareholders
if such approval is required by any regulatory authorities or stock
exchanges. Notwithstanding the foregoing but subject to Section 13
hereof, the Option Price of an Option granted under the Plan may not be
amended.
	 
	(b)	 	Subject to Section 11 hereof, no amendment, suspension or termination of
the Plan shall, without each Participant’s consent, impair any of the
rights or obligations under any Award theretofore granted to a Participant
under the Plan.

	15.	 	Government and Other Regulations

          The obligation of the Bank to deliver Shares for Awards exercised under
the Plan shall be subject to all applicable laws, regulations, rules, orders
and approvals which shall then be in effect and required by regulatory
authorities and any stock exchanges on which Shares are traded.

	16.	 	Plan Does Not Confer Employment or Shareholder Rights

          The right of the Bank to terminate at will (whether by dismissal,
discharge or otherwise) any Participant’s employment with it at any time is
specifically reserved. Neither the Participant nor any person entitled to
exercise the Participant’s rights in the event of the Participant’s death shall
have any rights of a shareholder with respect to the Shares subject to each
Award granted, except to the extent of, and until, the exercise of each such
Award.

	17.	 	Shareholder Approval and Effective Dates

          The Plan shall become effective when it is adopted by the Board. However,
if (a) the Plan is not approved by the affirmative vote of the holders of a
majority of the common shares present, or represented by proxy, and entitled to
vote at the Annual Meeting of Shareholders of the Bank to be held on March 29,
2000 (the “Approval Date”) or at any adjournment thereof, or (b) the necessary
regulatory and stock exchange approvals are not obtained within one year after
the date the Plan is adopted by the Board, the Plan and all Awards made under
it shall terminate. Grants of Awards may be made prior to the approval of
shareholders, but no such grants may be exercised prior to such approval.

	18.	 	Applicable Law

          This Plan and each Agreement shall be construed in accordance with the
laws applicable in the Province of Ontario, Canada and the parties shall agree
that they shall attorn to the jurisdiction of the

 

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Ontario Court of Justice or
any successors thereto with respect to any and all actions brought hereunder or
thereunder.

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