Document:

EXHIBIT 10(b)-8

 

TCF FINANCIAL 1995
INCENTIVE STOCK PROGRAM

 

NONQUALIFIED STOCK
OPTION AGREEMENT       

 

 

NQO NO.  95-17

 

                This option is granted on May 11, 1999 by TCF
Financial Corporation (“TCF Financial”) to Craig R. Dahl (the “Optionee”) in
accordance with the following terms and conditions:

 

                                                1.             Option
Grant and Exercise Period.

 

                                a.             TCF
Financial hereby grants to the Optionee an Option (the “Option”) to purchase,
pursuant to the TCF Financial 1995 Stock Incentive Program (the “Plan”), and
upon the terms and conditions therein and hereinafter set forth, an aggregate
of 26,224 shares (the “Option Shares”) of common stock of TCF Financial at an
exercise price of $29.03125 per share.  A
copy of the Plan, as currently in effect, is incorporated herein by reference
and is attached hereto.

 

                                b.             This
Option shall be exercisable only during the period (the “Exercise Period”)
commencing on the date of grant of this Option, and ending at 5:00 p.m.,
Minneapolis, Minnesota time, on the date ten years and one day after the date
of grant of this Option, such time and date being hereinafter referred to as
the “Expiration Date.”  This Option shall
be exercisable with respect to twenty five percent of the Option Shares on
January 1, 2000 and with respect to additional twenty-five percent of the
Option Shares on January 1, in each of the years 2001, 2002 and 2003, subject
to the Optionee’s continuing employment with TCF Financial or an affiliate
through each such date, except as may be provided under paragraphs 5 and 9 of
this Agreement, provided that the total vesting percentage under this Agreement
shall never in any event exceed 100%. 
Subject to the foregoing, during the Exercise Period this Option shall
be exercisable in whole at any time or in part from time to time, except that
no part of this Option shall be exercisable at any time when the Optionee is in
material breach of an employment contract with TCF Financial.

 

                2.             Method
of Exercise of this Option.  To the
extent it is exercisable under Section 1.b of this Agreement, this Option may
be exercised during the Exercise Period by giving written notice to TCF
Financial specifying the number of Option Shares to be purchased.  The notice must be in the form prescribed by
the committee referred to in section 2 of the Plan or its successor (the “Committee”)
and directed to the address set forth in paragraph 12 below.  The date of exercise is the date on which
such notice is received by TCF Financial. 
Such notice must be accompanied by payment in full for the Option Shares
to be purchased upon such exercise. 
Payment shall be made either (i) in cash, which may be in the form of a
check, bank draft, or money order payable to TCF Financial, or (ii) if the
Committee shall have previously approved such form of payment, by delivering
shares of Common Stock already owned by the Optionee having a “Fair Market
Value” (as defined in the Plan as in effect on the date of the grant of this 

 

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Option) equal to the
applicable exercise price, or (iii) if the Committee shall have previously
approved such form of payment, a combination of cash and such shares.  Promptly after such payment, subject to
paragraph 3 below, TCF Financial shall issue and deliver to the Optionee or
other person exercising this Option a certificate or certificates representing
the shares of Common Stock so purchased, registered in the name of the Optionee
(or such other person), or, upon request, in the name of the Optionee (or other
person) and in the name of another jointly with right of survivorship.

 

                3.             Delivery
and Registration of Shares of Common Stock. 
TCF Financial’s obligation to deliver shares of Common Stock hereunder
shall, if the Committee so requests, be conditioned upon the receipt of a
representation as to the investment intention of the Optionee or any other
person to whom such shares are to be delivered, in such form as the Committee
shall determine to be necessary or advisable to comply with the provisions of
the Securities Act of 1933, as amended, or any other Federal, state, or local
securities law or regulation.  In
requesting any such representation, it may be provided that such representation
requirement shall become inoperative upon a registration of such shares or
other action eliminating  the necessity
of such representation under such Securities Act or other securities law or
regulation.  TCF Financial shall not be
required to deliver any shares upon exercise of the Option prior to (i) the
admission of such shares to listing on any stock exchange or system on which
the shares of Common Stock may then be listed, and (ii) the completion of such
registration or other qualification of such shares under any state or Federal
law, rule, or regulation, as the Committee shall determine to be necessary or
advisable.

 

                4.             Non-transferability
of this Option.  This Option may not
be assigned, encumbered, or transferred except, in the event of the death of
the Optionee, by will or the laws of descent and distribution to the extent
provided in paragraph 5 below.  This
Option is exercisable during the Optionee’s lifetime only by the Optionee.  The provisions of the Option shall be binding
upon, inure to the benefit of, and be enforceable by the parties hereto, the
successors and assigns of TCF Financial, and any person to whom this Option is
transferred by will or by the laws of descent and distribution.

 

                5.             Termination
of Service or Death of the Optionee.

 

                                a.             Except
as provided in subparagraphs b. or c. of this paragraph 5 and notwithstanding
any other provision of this Option to the contrary, this Option shall not be
exercisable unless the Optionee, at the time the Optionee exercises this
Option, has maintained “Continuous Service” (as defined herein) since the date
of the grant of this Option.  “Continuous
Service” shall mean that the Optionee is an employee of TCF Financial or a
subsidiary of TCF Financial at all times during the period beginning on the
date of the granting of this Option and ending on a date no earlier than three
months before the date of exercise of this Option, provided that such
employment status is determined consistently with the requirements that would
apply if this Option were an incentive stock option.

 

                                b.             If
the Optionee shall cease to maintain Continuous Service for any reason
(excluding disability, retirement or death), the Optionee may, but only within
the period of three

 

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months immediately
following such cessation of Continuous Service and in no event after the
Expiration Date, exercise this Option to the extent the Optionee was entitled
to exercise this Option at the date of cessation.  If the Optionee is terminated for cause,
however, all rights under this Option shall expire immediately upon the giving
to the Optionee of notice of such termination.

 

                                c.             In
the event of termination of employment due to retirement, disability or  death of the Optionee while in Continuous
Service of TCF Financial, the Optionee (or in the case of death, the person to
whom the Option has been transferred by will or by the laws of descent and
distribution, to the extent the Optionee was entitled to exercise this Option
immediately prior to such death) may exercise this Option at any time within
one year following such retirement, disability or death, but in no event later
than the Expiration Date.  If the
Optionee should die within three months after termination of employment for any
reason other than retirement or disability, the right of the Optionee’s
successor-in-interest to exercise this Option shall terminate upon the earlier
of the Expiration Date or the date three months after the Optionee’s
death.  If the Optionee should die within
twelve months after termination of employment due to retirement or disability,
the right of the Optionee’s successor-in-interest to exercise this Option shall
terminate upon the later of twelve months after the date of employment
termination or three months after the Optionee’s death, but not later than the
Expiration Date.  Following the death of
the Optionee, the Committee may, as an alternative means of settlement of this
Option, elect to pay to the person to whom this Option is transferred by will
or by the laws of descent and distribution the amount by which the Fair Market
Value (as defined in the Plan) of a share of Common Stock on the date of
exercise of this Option shall exceed the Exercise Price per Option Share,
multiplied by the number of Option Shares with respect to which this Option is
properly exercised.  Any such settlement
of this Option shall be considered an exercise of this Option for all purposes
of this Option and of the Plan.

 

                6.             No
Notice of Sale.  The Optionee or any
person to whom the Option or the Option Shares shall have been transferred by
will or by the laws of descent and distribution shall not be required to give
notice to TCF Financial in the event of the sale or other disposition of Option
Shares subsequent to exercise of the Option, except to the extent the Optionee
is required to report transactions in TCF Financial common stock in general.

 

                7.             Adjustments for Changes in
Capitalization of TCF Financial.  In
the event of any change in the outstanding shares of Common Stock by reason of
any reorganization, recapitalization, stock split, stock dividend, combination
or exchange of shares, merger, consolidation, or any change in the corporate
structure of TCF Financial or in the shares of Common Stock, the number and
class of shares covered by this Option and the Exercise Price shall be
appropriately adjusted by the Committee, whose determination shall be
conclusive.

 

                8.             Effect
of Merger.  In the case of any
merger, consolidation, or combination of TCF Financial with or into another
corporation or other business organization (other than a merger, consolidation,
or combination in which TCF Financial is the continuing entity and which does
not result in the outstanding shares of Common Stock being converted into or
exchanged for different securities, cash or other property, or any combination
thereof), the Committee may 

 

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authorize the issuance or
assumption of Benefits (as defined in the Plan) as it may deem appropriate.

 

                9.             Effect
of Change in Control.  Each of the
events specified in the following clauses (a) through (d) of this paragraph 8
shall be deemed a “change of control”; (a) 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 the Company representing thirty
percent (30%) or more of the combined voting power of the Company’s then
outstanding securities.  For purposes of
this clause (a), the term “beneficial owner” does not include any employee
benefit plan maintained by the Company that invests in the Company’s voting
securities; or (b) during any period of two (2) consecutive years (not
including any period prior to the date on which the Program was approved by the
Company’s Board of Directors) there shall cease to be a majority of the Board
comprised as follows: individuals who at the beginning of such period
constitute the Board of 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 (c) the shareholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least 70% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation, or the shareholders of the Company approve
a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all the Company’s assets;
provided, however, that no change in control will be deemed to have occurred if
such merger, consolidation, sale or disposition or assets, or liquidation is
not subsequently consummated; or (d) the Board of Directors of Winthrop
Resources Corporation (hereinafter referred to as Winthrop”) or the Board of
Directors of any other equipment finance leasing company (hereinafter referred
to as “New Leasing Co.”) headed by Executive which is an affiliate of Winthrop
or a subsidiary of TCF Financial shall approve, and there shall be consummated,
a dissolution or liquidation, or a merger, consolidation or other corporate
reorganization of Winthrop or New Leasing Co., or of the Value Added line of
business or either, such that Winthrop, New Leasing Co., or the Value Added
line of business or either of them is no longer owned or controlled by TCF
Financial.  Notwithstanding the
foregoing, a sale, spin-off or other reorganization of the small ticket
business of Winthrop or New Leasing Co., or other insignificant leasing-related
transaction, shall not be deemed a change in control under this Agreement.  Subject to the six month holding requirement,
if any, of Rule 16b-3 of the Securities and Exchange Commission but
notwithstanding any other provision in this Program or the previous Stock
Option and Incentive Plan of TCF Financial, all terms and conditions of this
Restricted Stock Award shall be deemed satisfied and all the Shares shall vest
as of the date of a change in control.

 

                10.           Stockholder
Rights not Granted by this Option. 
The Optionee is not entitled by virtue hereof to any rights of a
stockholder of TCF Financial or to notice of meetings of stockholders or to
notice of any other proceedings of TCF Financial.

 

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                11.           Withholding
Tax.  Where the Optionee or another
person is entitled to receive Option Shares pursuant to the exercise of this
Option, TCF Financial shall have the right to require the Optionee or such
other person to pay to TCF Financial the amount of any taxes which TCF
Financial or any of it affiliates is required to withhold with respect to such
Option Shares, or, in lieu thereof, to retain, or sell without notice, a
sufficient number of such shares to cover the amount required to be withheld or
in lieu of any of the foregoing, to withhold or direct the withholding of a
sufficient sum from the Optionee’s compensation to satisfy such tax withholding
requirements.  TCF Financial’s method of
satisfying its withholding obligations shall be solely in the discretion of TCF
Financial, subject to applicable federal, state, and local law.

 

                12.           Notices.  All notices hereunder to TCF Financial shall
be delivered or mailed to it addressed to TCF Financial Corporation, 801
Marquette Avenue, Suite 302, Minneapolis, Minnesota 55402.  Any notices hereunder to the Optionee shall be
delivered personally or mailed to the Optionee’s address noted below.  Such addresses for the service of notices may
be changed at any time provided written notice of the change is furnished in
advance to TCF Financial or to the Optionee, as the case may be.

 

                13.           Plan
and Plan Interpretations as Controlling. 
This Option and the terms and conditions herein set forth are subject in
all respects to the terms and conditions of the Plan, which are
controlling.  All determinations and interpretations
of the Committee shall be binding and conclusive upon the Optionee or his legal
representatives with regard to any question arising hereunder or under the
Plan.

 

                14.           Optionee
Service.  Nothing in this Option
shall limit the right of TCF Financial or any of its affiliates to terminate
the Optionee’s service as a director, officer, or employee, or otherwise impose
upon TCF Financial or any of its affiliates any obligation to employ or accept
the services of the Optionee.

 

                15.           Optionee
Acceptance.  The Optionee shall
signify his or her acceptance of the terms and conditions of this Option by
signing in the space provided below and returning a signed copy hereof to TCF
Financial at the address set forth in paragraph 12 above.

 

                IN WITNESS WHEREOF, the parties hereto have caused
this Option to be executed as of the date first above written.

 

 

 

	
   

  	
  TCF FINANCIAL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Gregory J. Pulls

  
	
   

  	
  Secretary

  
	
   

  	
   

  

 

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  ACCEPTED

  
	
   

  	
   

  
	
   

  	
  /s/ Craig R. Dahl

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City, State and Zip
  Code)

  

 

 

6EXHIBIT 10(e)-6

 

 

CHANGE IN CONTROL AGREEMENT; AMENDMENT TO EMPLOYMENT
AGREEMENT

 

                THIS AGREEMENT made and entered into as of April
15, 2005­ between TCF FINANCIAL CORPORATION, a Delaware Corporation (the
“Company”) and Craig R. Dahl (the “Executive”).

 

R  E  C  I  T  A  L
S:

 

                WHEREAS, the Executive is now and has been Executive
Vice President of the Company;

 

                WHEREAS, the Board of Directors of the Company
believes it is imperative to diminish the inevitable distraction of the
Executive by virtue of the personal uncertainties and risks created by any
pending or threatened Change in Control (as defined below) of the Company;

 

                WHEREAS, as a partial inducement for the Executive to
contemporaneously enter into a Nonsolicitation and Confidentiality Agreement
with the Company, the Company desires to provide the Executive with certain
compensation and benefits in the event a Change in Control of the Company
occurs; and

 

                WHEREAS, the Executive is already a party to an
employment agreement (the “Employment Agreement”) that was effective April 26,
1999 with the Company;

 

                NOW, THEREFORE, in consideration of the mutual
premises and agreements set forth herein, the parties hereby agree as follows:

 

                1.             Definitions.  As used in this Agreement, the following
terms shall have the following meanings:

 

                (a)           Cause.   Termination of Executive’s employment for
“cause” shall be deemed to have occurred if the Company follows the procedures
set forth in this paragraph and terminates Executive’s employment on account of
any one of the following: (i) Executive has engaged in willful and recurring
misconduct in not following the legitimate directions of the Board of Directors
of the Company; (ii) Executive has been convicted of a felony and all appeals
from such conviction have been exhausted; (iii) Executive has engaged in
habitual drunkenness; (iv) Executive has been excessively absent from work
which absence is not related to disability, illness, sick leave or vacations;
or (v) Executive has engaged in continuous conflicts of interest between his
personal interests and the interests of the Company.  If the Company proposes to terminate the
employment of the Executive for Cause, the Company shall give written notice to
the Executive specifying the reasons for such proposed determination with
particularity and, in the case of a termination for Cause under clause (i) of
this paragraph (including any breach of the provisions of paragraph 5 of 

 

1

 

this Agreement), (iii) or
(iv), the Executive shall have a reasonable opportunity to correct any curable
situation to the reasonable satisfaction of the Board of Directors of the
Company, which period shall be no less than thirty (30) days from the
Executive’s receipt of the notice of proposed termination.  Notwithstanding the foregoing, the
Executive’s employment shall not be terminated for Cause unless and until there
shall be delivered to the Executive a copy of the resolution duly adopted by
the affirmative vote of not less than the majority of the members of the Board
of Directors of the Company at a meeting called and held for the purpose (after
reasonable notice to the Executive and an opportunity for the Executive,
together with his legal counsel, to be heard before the Board of Directors)
finding that, in the opinion of the Company’s Board of Directors, the Executive
has engaged in conduct justifying a termination for Cause.

 

                (b)           Change
in Control.  A “Change in Control”
shall be deemed to have occurred if, prior to the expiration of the term of this
Agreement:

 

                                                                (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 the Company representing thirty
percent (30%) or more of the combined voting power of the Company’s then
outstanding securities;

 

                                                                (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 of 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 the Company
approve a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least 70% of the combined voting power
of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the shareholders of the
company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of all or substantially all the
Company’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.

 

                (c)           Good
Reason.  By following the procedure
set forth in this paragraph, the executive shall have the right to terminate
the Executive’s employment with the company for “Good Reason” in the event (i)
the executive is not at all times the same duly elected officer of the Company
that 

 

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Executive was immediately
prior to the change in control; (ii) there is any material reduction in the
scope of the Executive’s authority and responsibility (provided, however, in
the event of any illness or injury which disables the Executive from performing
the Executive’s duties, the Company may reassign the Executive’s duties to one
or more other employees until the Executive is able to perform such duties);
(iii) there is a reduction in the Executive’s Base Salary, an amendment to any
stock incentive plan, pension plan or supplemental employee retirement plan
applicable to the Executive which is materially adverse to the Executive, or a
material reduction in the other benefits to which the Executive was entitled
prior to the Change in Control; (iv) the Company requires the Executive’s
principal place of employment to be anywhere other than where it was
immediately prior to the change in control, or there is a relocation of the
Company’s principal executive offices from where the were immediately prior to
the change in control; or (v) the Company otherwise fails to perform its
obligations under this Agreement. If the Executive proposes to terminate his
employment for Good Reason under this paragraph, the Executive shall give
written notice to the Company, specifying the reason therefor with
particularity.  In the event the
Executive proposes to terminate his employment for Good Reason under clause (i),
(ii), (iii) or (iv) in this paragraph, the termination shall be effective on
the date of such notice.  In the event
the Executive proposes to terminate his employment for Good Reason under clause
(v) in this paragraph, the Company will have an opportunity to correct any
curable situation to the reasonable satisfaction of the Executive within the
period of time specified in the notice which shall not be less than thirty (30)
days.  If such correction is not so made
or the circumstances or situation is such that it is not curable, the Executive
may, within thirty (30) days after the expiration of the time so fixed within
which to correct such situation, give written notice to the Company that his
employment is terminated for Good Reason effective forthwith.

 

                (d)           Termination
Date.  “Termination Date” means the
date on which the Executive’s employment with the Company is terminated.

 

                2.             Termination
upon Change in Control.  The
Executive shall be entitled to the following severance benefits (which benefits
in each case are referred to as the “Termination Payments”) if a Change in
Control occurs and (i) the Executive terminates his employment for any reason
by giving the Company notice within the 30-day period immediately preceding the
first anniversary of the closing date of the Change in Control or (ii) within
twenty-four (24) months after the occurrence of such Change in Control (A) the
Executive terminates employment for Good Reason, or (B) the Executive’s
employment is terminated by the Company without Cause:

 

                (a)           Base
Salary.  The Company shall pay the
Executive a lump sum cash payment, no later than thirty (30) days after the
date on which his employment terminates, in an amount equal to the Executive’s
base salary multiplied by two (2).  For
this purpose, “base salary” means the Executive’s annual salary rate at the
time of employment termination or just prior to the Change in Control,
whichever is higher.

 

                (b)           Annual
Bonus.  If the Termination Date (as
defined below) occurs before the annual 

 

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bonus for any preceding
calendar year has been paid, the Company shall pay to the Executive the amount
of the Executive’s annual bonus for such preceding calendar year as soon as it
is determinable.  In addition, not later
than thirty (30) days after the date on which the Executive’s employment
terminates, the Company shall pay the Executive a lump such cash payment equal
to the average of the annual bonus paid or payable to the Executive in respect
of the three calendar years immediately preceding the year in which the Change
in Control occurred multiplied by two (2).

 

                (c)           [Reserved]

 

                (d)           Stock
Incentives.  Not later than thirty (30) days after the date on which
the Executive’s employment terminates, the Company shall pay the Executive a
lump sum cash payment equal to the sum of:

 

                                                                (i)            the amount by which the fair market
value (determined as of the Termination Date) of the number of shares of stock
subject to any stock option which is forfeited or which otherwise becomes
nonexercisable by the Executive by reason of his termination of employment
exceeds the option price for such shares;

 

                                                                (ii)           such additional amounts (or the fair
market value of such additional property) in excess of the amount determined
pursuant to paragraph 1(d)(i) that would have been paid or distributed to the
Executive upon his exercise of any such forfeited stock options, had such
options been exercisable, and exercised, by the Executive as of the Termination
Date;

 

                                                                (iii)          an amount equal to the fair market
value (determined as of the Termination Date) of any shares of restricted stock
forfeited by the Executive by reason of his termination of employment; and

 

                                                                (iv)          an amount equal to the amount that the
Executive would have received if any stock appreciation right which is
forfeited or which otherwise becomes nonexercisable by the Executive by reason
of his termination of employment had been exercisable, and exercised, by
Executive as of the Termination Date.

 

It is
understood and agreed that the payments under this paragraph 2(d) are to occur
only to the extent Executive is not entitled to exercise his options or stock
appreciation rights, or to retain or receive his restricted stock, after the
termination of his employment under the provisions of Executive’s stock option,
restricted stock, or stock appreciation rights agreements.  The provisions of this paragraph 2(d) shall
not apply to any restricted stock grants under any agreement with the Company
in the event a “Change in Control” shall have occurred within the meaning of
any such agreement and as a result the Executive’s stock grant has vested under
the terms of such agreement.

 

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                3.             Certain
Additional Payments by the Company.

 

                (a)           Gross-Up
Payment.  Anything to the contrary
notwithstanding, in the event it shall be determined that any payment,
distribution or benefit made or provided by the Company to or for the benefit
of the Executive (whether pursuant to this Agreement or otherwise) (a
“Payment”), would be subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended, (the “Code”) or any interest or
penalties with respect to such excise tax (such excise tax, together with any
such interest and penalties, are collectively referred to as the “Excise Tax”),
then the Company shall pay the Executive in cash an amount (the “Gross-Up
Payment”) such that after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including but not
limited to income taxes (and any interest and penalties imposed with respect
thereto) and the Excise Tax, imposed upon the Gross-Up Payment, the Executive
retains an amount of the Gross-up Payment equal to the Excise Tax imposed on
the Payments.

 

                (b)           Determination
of Gross-Up Payment.  Subject to
paragraph 3(c) below, all determinations required to be made under this
paragraph 2, including whether a Gross-Up Payment is required and the amount of
the Gross-Up Payment, shall be made by the firm of independent public
accountants selected by the Company to audit its financial statements for the
year immediately preceding the Change in Control (the “Accounting Firm”) which
shall provide detailed supporting calculations to the Company and the Executive
within thirty (30) days after the Termination Date.  In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change in Control, the Executive shall appoint another nationally
recognized accounting firm to make the determinations required under this
paragraph 3 (which accounting firm shall then be referred to as the “Accounting
Firm”).  All fees and expenses of the
Accounting Firm in connection with the work it performs pursuant to this
paragraph 3 shall be promptly paid by the Company.  A Gross-Up Payment (as determined pursuant to
this paragraph 3) shall be paid by the Company to the Executive within five (5)
days of the receipt of the Accounting Firm’s determination.  If the Accounting Firm determines that no
Excise Tax is payable by the Executive, it shall furnish the Executive with a
written opinion that failure to report the Excise Tax on the Executive’s
applicable federal income tax return would not result in the imposition of a
negligence or a similar penalty.  Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive.  As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm, it is possible that Gross-up
Payments which will not have been made by the Company should have been made
(“Underpayment”).  In the event that the
Company exhausts its remedies pursuant to paragraph 3(c) below, and the
Executive is thereafter required to make a payment of Excise Tax, the
Accounting Firm shall promptly determine the amount of the Underpayment that
has occurred and any such Underpayment shall be paid by the Company to the
Executive within five (5) days after such determination.

 

                (c)           Contest.  The Executive shall notify the Company in
writing of any claim made by 

 

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the Internal Revenue
Service that, if successful, would require the Company to pay a Gross-Up
Payment.  Such notification shall be
given as soon as practicable but no later than ten (10) business days after the
Executive knows of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid.  The Executive shall not pay such claim prior
to the expiration of the thirty (30) day period following the date on which it
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If the Company notifies the Executive in
writing prior to the expiration of such period that it desires to contest such
claim, the Employee shall:

 

                                                                (i)            give the Company any information
reasonably requested by the Company relating to such claim;

 

                                                                (ii)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, without limitation, accepting legal representation with respect
to such claim by an attorney selected by the Company and reasonably acceptable
to the Executive;

 

                                                                (iii)
         cooperate with the Company in
good faith in order effectively to contest such claim;

 

                                                                (iv)          permit the Company to participate in
any proceedings relating to such claim; provided, however, that the Company shall
bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and
hold the Executive harmless, on an after-tax basis, for any Excise Tax or
income tax, including interest and penalties with respect thereto, imposed as a
result of such representation and payment of costs and expenses.  Without limitation on the foregoing
provisions of this paragraph 3(c), the Company shall control all proceedings
taken in connection with such contest and, at its sole option, may pursue or
forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Executive agrees
to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate courts,
as the Company shall determine; provided, however, that if the Company directs
the Executive to pay such claim and sue for a refund, the Company shall advance
the amount of such payment to the Executive, on an interest-free basis, from
any Excise Tax or income tax, including interest or penalties with respect
thereto, imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided that any extension of
the statute of limitations relating to payment of taxes for the taxable year of
the Executive with respect to which such contested amount is claimed to be due
is limited solely to such contested amount. 
Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder 

 

6

 

                                                and the Executive shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

 

(d)           If, after the receipt by the
Executive of an amount advanced by the Company pursuant to paragraph 3(c), the
Executive becomes entitled to receive any refund with respect to such claim,
the Executive shall (subject to the Company’s complying with the requirements
of paragraph 3(c)) promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon after taxes applicable
thereto).  If, after the receipt by the
Executive of an amount advanced by the Company pursuant to paragraph 3(c),
a determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of thirty (30) days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

 

                4.             Benefits
in Lieu of Severance Pay Policy.  The
severance benefits provided for in paragraph 2 are in lieu of any benefits that
would otherwise be provided to the Executive under the Company’s severance pay
policy and the Executive shall not be entitled to any benefits under the
Company’s severance pay policy.

 

                5.             Rights
in the Event of Dispute.  In the
event of a dispute between the Company and the Executive regarding this
Agreement, it is the intention of this Agreement that the dispute shall be resolved
as expeditiously as possible, consistent with fairness to both sides, and that
during pendency of the dispute the Executive and the Company shall be on equal
footing, as follows:

 

                (a)           Arbitration.  Any claim or dispute relating to the terms
and performance of this Agreement, shall be resolved by binding private
arbitration before three arbitrators and any award rendered by any arbitration
panel, or a majority thereof, may be filed and a judgment obtained in any court
having jurisdiction over the parties unless the relief granted in the award is
delivered within ten (10) days of the award. 
Either party may request arbitration by written notice to the other
party.  Within thirty (30) days of
receipt of such notice by the opposing party, each party shall appoint a
disinterested arbitrator and the two arbitrators selected thereby shall appoint
a third neutral arbitrator; in the event the two arbitrators cannot agree upon
the third arbitrator within then (10) days after their appointment, then the
neutral arbitrator shall be appointed by the Chief Judge of Hennepin County
(Minnesota) District Court.  Any
arbitration proceeding conducted hereunder shall be in the City of Minneapolis
and shall follow the procedures set forth in the Rules of Commercial Arbitration
of the American Arbitration Association, and both sides shall cooperate in as
expeditious a resolution of the proceeding as is reasonable under the
circumstances.  The arbitration panel
shall have the power to enter any relief it deems fair and just on any claim,
including interim and final equitable relief, along with any procedural order
that is reasonable under the circumstances.

 

7

 

                (b)           Expenses
of Prosecution/Defense of Claim. 
During the pendency of a dispute between the Company and the Executive
relating to the terms or performance of this Agreement, the Company shall
promptly pay the Executive’s reasonable expenses of representation upon
delivery of periodic billings for same, provided that (i) Executive (or a
person claiming on his behalf) shall promptly repay all amounts paid hereunder
at the conclusion of the dispute if the resolution thereof includes a finding
that the Executive did not act in good faith in the matter in dispute or in the
dispute proceeding itself, and (ii) no claim for expenses of representation
shall be submitted by the Executive or any person acting on his behalf unless
made in writing to the Board of Directors within one year of the performance of
the services for which such claim is made.

 

                6.             Other
Benefits.  The benefits provided
under this Agreement shall, except to the extent otherwise specifically
provided herein, be in addition to, and not in derogation or diminution of, any
benefits that Executive or his beneficiary may be entitled to receive under any
other plan or program now or hereafter maintained by the Company, or its
subsidiaries.

 

                7.             Successors.  The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
to all or substantially all of the business and/or assets of the Company, to
expressly assume and agree to perform its obligations under this Agreement in
the same manner and to the same extent that the Company would be required to
perform them if no succession had taken place unless, in the opinion of legal
counsel mutually acceptable to the Company and the Executive, such obligations
have been assumed by the successor as a matter of law.  The Executive’s rights under this Agreement
shall inure to the benefit of, and shall be enforceable by, the Executive’s
legal representative or other successors in interest, but shall not otherwise
be assignable or transferable.

 

                8.             Severability.  If any provision of this Agreement or the
application thereof is held invalid or unenforceable, the invalidity or
unenforceability thereof shall not affect any other provisions or applications
of this Agreement which can be given effect without the invalid or
unenforceable provision or application.

 

                9.             Survival.  The rights and obligations of the parties
pursuant to this Agreement shall survive the termination of the Executive’s
employment with the Company to the extent that any performance is required
hereunder after such termination.

 

                10.           Notices.  All notices under this Agreement shall be in
writing and shall be deemed effective when delivered in person (in the
Company’s case, to its Secretary) or 48 hours after deposit thereof in the U.S.
mails, postage prepaid, addressed, in the case of the Executive, to his last
known address as carried on the personnel records of the Company and, in the
case of the Company, to the corporate headquarters, attention of the Secretary,
or to such other address as the party to be notified may specify by written
notice to the other party.

 

                11.           Term.  The term of this Agreement shall commence on
the date it is signed and shall 

 

8

 

continue through January
1, 2008, provided that in the event Executive’s Year 2000 Stock Grant becomes
fully vested prior to January 1, 2008 (other than due to a change in control)
this Agreement shall terminate on the date on which such full vesting occurs.

 

                12.           Amendments
and Construction.  This Agreement may
only be amended in a writing signed by the parties hereto.  This Agreement shall be construed under the
laws of the State of Minnesota. 
Paragraph headings are for convenience only and shall not be considered
a part of the terms and provisions of the Agreement.

 

                13.           No
Guarantee of Employment; Employment Agreement Superceded.  This Agreement shall not be construed as any
guarantee or obligation of continuing employment on the part of the Company or
Executive.  Executive’s employment is
governed by the terms of his Employment Agreement.  In the event that Executive has a termination
of employment that is covered by this Agreement, Executive’s Employment
Agreement shall become null and void. 
Otherwise, Executive’s Employment Agreement remains in full force and
effect.

 

9

 

                IN WITNESS WHEREOF, the parties have duly executed
this Agreement as of the day and year first written above.

 

	
   

  	
   

  	
  TCF FINANCIAL
  CORPORATION

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Lynn Nagorske

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Gregory J. Pulles

  	
   

  	
  Its

  	
  President

  
	
  Vice Chairman, General
  Counsel and Secretary 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Diane O. Stockman

  	
   

  	
  /s/ Craig R. Dahl

  
	
   

  	
   

  	
  Craig R. Dahl

  

 

 

10

EXHIBIT 10(e)-6

 

TCF
FINANCIAL CORPORATION

EMPLOYMENT
AGREEMENT

 

 

                This Employment Agreement (this “Agreement”) is
entered into effective as of April 26, 1999 (the “Effective Date”), by and
between TCF Financial Corporation (“TCF Financial”) and Craig R. Dahl
(“Executive”).

 

                WHEREAS, Executive has been elected to and has agreed
to serve in the position of Executive Vice President for TCF Financial, a
position of substantial responsibility; and

 

                WHEREAS, TCF Financial recognizes the substantial
contributions Executive is expected to make to TCF Financial and considers the
establishment and maintenance of sound and vital senior management to be
essential to protecting and enhancing the best interests thereof and therefore
desires to enter into an agreement governing the terms and conditions of
Executive’s employment;

 

                NOW, THEREFORE, in consideration of the expected
contributions and responsibilities of Executive and the other mutual promises,
terms and conditions hereinafter provided, the parties hereto agree as follows:

 

Section 1 -
Definitions

 

                1.1           A
“Change in Control” shall mean:

 

                                (a)           During any period of two (2)
consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of TCF Financial cease for any reason to constitute a
majority thereof, unless the election or nomination for election of each new
Director was approved by a vote of at lease two-thirds of the Board members
then still in office who were Board members at the beginning of the period or
who were similarly nominated;

 

                                (b)           Any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), is or becomes the “beneficial owner” (as such term is defined in Rule
13d-3 of the Exchange Act), directly or indirectly, of securities of TCF Financial
representing twenty-five percent (25%) or more of TCF Financial’s outstanding
securities, except for any securities purchased by TCF’s employee stock
ownership plan and trust and any person who becomes a twenty-five percent (25%)
beneficial owner solely as a result of stock repurchases by TCF Financial; or

 

                                (c)           The
shareholders of TCF Financial approve, and there is consummated, a dissolution
or liquidation, or a merger, consolidation or other corporate 

 

1

 

reorganization of TCF
Financial under circumstances in which TCF Financial will not be the surviving
party; or

 

                                (d)           the
Board of Directors of TCF Financial shall approve, and there is consummated,
the sale of all, or substantially all, of the business or assets of TCF
Financial; or

 

                                (e)           the
Board of Directors of Winthrop Resources Corporation (hereinafter referred to
as Winthrop”) or the Board of Directors of TCF Leasing, Inc., or any other
equipment finance leasing company headed by Executive which is an affiliate of
Winthrop or a subsidiary of TCF Financial (hereinafter TCF Leasing, Inc. and
any other such leasing company affiliate are jointly referred to as “New
Leasing Co.”)shall approve, and there shall be consummated, a dissolution or liquidation,
or a merger, consolidation or other corporate reorganization of Winthrop or New
Leasing Co., or of the Value Added line of business or either, such that
Winthrop, New Leasing Co., or the Value Added line of business of any of them
is no longer owned or controlled by TCF Financial.

 

                                (f)            Notwithstanding
the foregoing, a sale, spin-off or other reorganization of the small ticket
business of Winthrop or New Leasing Co. shall not be deemed a change in control
under this Agreement, and any internal reorganization or combination of
TCF-affiliated companies with each other shall also not be deemed a change in
control under this Agreement.

 

                1.2           The
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

                1.3           “Date
of Termination” shall mean:

 

                                (a)           If death or Disability under Section
7.1 of this Agreement automatically terminates Executive’s employment, the date
on which the event that triggered that automatic termination occurred; or

 

                                (b)           If
Executive’s employment is terminated by Executive, whether for Good Reason or
otherwise under Section 7.3 of this Agreement, or by TCF Financial under
Section 7.2 of this Agreement, the date specified in Section 7.4 of this
Agreement.

 

                1.4           “Disability”
shall mean Executive is “disabled” for purposes of TCF’s long term disability
coverage and is entitled to benefits under such coverage.

 

                1.5           “Good
Reason” shall be deemed to exist if:

 

                                (a)           Within
two years after a Change in Control, without Executive’s express written
consent: (1) Executive is assigned any duties inconsistent in any material
respect with Executive’s employment position, duties, responsibilities or
status with TCF Financial on the Effective Date; (2) Executive’s reporting
responsibilities, titles or offices 

 

2

 

as in effect on the
Effective Date are reduced in any material respect; (3) Executive is removed
from or is not re-elected Executive Vice President of TCF Financial, except in
connection with the termination of Executive’s employment for Cause, on account
of Disability, as a result of Executive’s death, or by Executive other than for
Good Reason;

 

                                (b)           Within
two years after a Change in Control, TCF Financial’s principal executive
offices are relocated to a location at least 30 miles from its current
locations; or TCF Financial requires Executive to be based anywhere other than
in the Minneapolis/St. Paul metropolitan area, except for required travel on
TCF Financial’s business to an extent substantially consistent with similarly
situated executives’ business travel obligations; or

 

                                (c)           Within
two years after a Change of Control: (1) TCF Financial reduces in any material
respect Executive’s Base Compensation or Bonus Compensation; or (2) TCF
Financial takes any action which would materially adversely affect Executive’s
benefits under any benefit plan maintained by TCF Financial for comparable
executives or deprive Executive of any material fringe benefits provided to
comparable executives of TCF Financial.

 

                1.6           The
“TCF Financial Board” shall mean the Board of Directors of TCF Financial.

 

                1.7           The
“TCF Personnel Committee” shall mean such members of the Personnel Committee of
the TCF Financial Board who qualify as independent or as non-employees from
time to time under Rule 16b-3 of the Securities Exchange Commission or under
Section 162(m) of the Internal Revenue Code, and their related rules,
regulations and pronouncements.

 

                1.8           “Notice of Termination” shall mean a
notice, from TCF Financial or from Executive, which shall indicate the specific
termination provision in this Agreement relied upon, shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated and
shall state the effective date of the termination.

 

                1.9           “Secret
or Confidential Information” means secret or confidential information of TCF
Financial which Executive obtains during the Term of this Agreement (including
secret or confidential information of predecessors, subsidiaries and
affiliates), including but not limited to lists of customers; contract terms;
bidding information and strategies; salary information with respect to
employees; financial product design information; business plans; and anything
else deemed to be proprietary, provided that secret or confidential information
shall not include information reasonably available to the general public.

 

                1.10         Termination
for “Cause” by TCF Financial of Executive’s employment under this Agreement
shall mean termination which is determined by the TCF Personnel 

 

3

 

Committee to be on
account of any one of the following: (i) Executive has engaged in willful and
recurring misconduct in not following the legitimate directions of the
Personnel Committee or of his supervisor; (ii) Executive has been convicted of
a felony or a crime involving theft or dishonesty and all appeals from such
conviction have been exhausted; (iii) Executive has engaged in habitual
drunkenness or use of illegal drugs; (iv) 
Executive has been excessively absent from work which absence is not
related to Disability, sick leave or authorized vacations; or (v) Executive has
engaged in substantial conflicts of interest between his personal interests and
the interests of TCF Financial.

 

                Notwithstanding the foregoing, Executive shall not be
deemed to have been terminated for Cause unless and until (1) there shall have
been delivered to Executive a written notice of the intention to terminate his
employment for Cause specifying the grounds for such termination, providing a
reasonable opportunity to cure any conduct or act, if curable, alleged as
grounds for such termination, and; (2) following delivery of such written
notice, Executive shall have been given a reasonable opportunity to present to
the TCF Personnel Committee his position regarding any dispute relating to the
existence of such Cause.

 

Section 2 -
Employment and Term

 

                2.1           Employment.  TCF Financial agrees to employ Executive, and
Executive agrees to serve, as an Executive Vice President of TCF
Financial.  Executive agrees to accept
Employment on the terms and conditions set forth in this Agreement.

 

                2.2           Term.  The term of this Agreement (the “Term”) shall
be a period beginning on the Effective Date and ending on December 31, 2000. On
December 31, 1999 however, the term shall be extended by one year so that it
expires on December 31, 2001. On each December 31 thereafter, the remaining
Term shall be extended by one year.  If
the TCF Personnel Committee shall determine on or prior to any such December 31st
not to renew this Agreement, then the final term of the Agreement shall be the
two years after the December 31st immediately preceding the TCF
Personnel Committee’s determination and the Agreement shall not thereafter be
renewed or extended.

 

Section 3 - Duties of Executive

 

                3.1           Time
Devoted; Duties.  Executive shall
have overall responsibility for TCF Financial’s leasing and equipment finance
operations. Executive shall devote his entire time, attention and energies to
his responsibilities and shall render such administrative and management
services to TCF Financial as are customarily performed by persons situated in a
similar executive capacity, including those services prescribed from time to
time by the TCF Personnel Committee. Executive shall perform his duties under
this Agreement in accordance with such reasonable standards expected of
employees with comparable positions in comparable organizations and as may be
established from time to time by the Personnel Committee.

 

4

 

                3.2           No
Conflicting Activities.  During the
term of Executive’s employment under this Agreement, Executive shall not engage
in any business or activity contrary to the business affairs or interests of
TCF Financial.  Nothing contained in this
Section 3 shall be deemed to prevent or limit the right of Executive to invest
in the capital stock or other securities of any business or engage in charitable
or civic activities as long as such conduct or activity does not interfere with
Executive’s duties as set forth in Section 3.1.

 

Section 4 -
Compensation

 

                4.1           Base
Compensation.  Executive shall
receive for his services the following Base Compensation:

 

                                (a)           TCF
Financial shall pay Executive an annual salary of $225,000.00 (“Base
Compensation”) payable in 26 equal bi-weekly installments.

 

                                (b)           Any
increase in Executive’s Base Compensation shall be left to the sole discretion
of the TCF Personnel Committee. 
Executive’s Base Compensation shall not be subject to reduction during
the Term of this Agreement except as otherwise provided in this Agreement.

 

                4.2           Bonus
Compensation.  TCF Financial shall
pay Bonus Compensation to Executive in an amount determined by the TCF
Personnel Committee in its sole discretion, provided that Executive shall
participate annually in any bonus plan provided to comparable TCF executives
(“Bonus Compensation”).  For the calendar
year 1999, Executive’s bonus opportunity shall be in the 0 - 200% range based
on the following goals:

 

	
  % Goal

  	
   

  	
   80%

  	
   

  	
   90%

  	
   

  	
   100%

  	
   

  	
   102%

  	
   

  	
   105%

  	
   

  
	
  $

  	
   

  	
  $23,623

  	
   

  	
  $26,576

  	
   

  	
  $29,529

  	
   

  	
  $30,119

  	
   

  	
  $31,005

  	
   

  

 

	
  Payout %

  	
   

  	
   25%

  	
   

  	
   75%

  	
   

  	
   150%

  	
   

  	
   175%

  	
   

  	
   200%

  	
   

  
	
  Payout $

  	
   

  	
  $56,250

  	
   

  	
  $168,750

  	
   

  	
  $337,500

  	
   

  	
  $393,750

  	
   

  	
  $450,000

  	
   

  

 

 pro-rated to reflect the number of days from
the Effective Date of this Agreement through December 31, 1999, divided by 365,
but with a guaranteed minimum of $100,000.

 

                4.3           Additional
Compensation: Restricted Stock and Options. 
As further compensation TCF Financial has awarded to Executive on or
about the commencement of this Agreement 10,000 shares of restricted stock to
vest 25% per year starting January 1, 2000 and 40,000 options to purchase TCF
stock, to vest on the same schedule and with an exercise price equal to the
fair market value of TCF stock on the date of the award. The terms of
Executive’s restricted stock and option awards are governed by separate
agreements entered into contemporaneously between the parties hereto.  After the initial awards hereunder, the
Executive shall be entitled to such additional awards of restricted 

 

5

 

stock and options as are
approved by the TCF Personnel Committee from time to time.

 

                4.4           Source
of Payments.  All payments provided
for in this Agreement shall be timely paid by TCF Financial.

 

Section 5 -
Employee Benefits/Fringe Benefits

 

                5.1           Business
Expenses.  During the Term, TCF
Financial shall reimburse Executive for ordinary and necessary business
expenses incurred by Executive in performing his duties pursuant to this
Agreement, including but not limited to reasonable travel, entertainment and
similar expenses that Executive incurs in promoting the business of TCF
Financial; provided, that TCF Financial shall not reimburse any such expense
which, prior to its being incurred, TCF Financial directed Executive not to
incur. The reimbursement shall be made upon presentation to TCF Financial by
Executive, from time to time, of an account of such expenses in such form and
in such detail as TCF Financial may request, and shall comply with TCF
Financial’s policies regarding expense reimbursement.

 

                5.2           Fringe
Benefits.  In addition to benefits
specifically described herein, Executive shall be entitled to receive from TCF
Financial the fringe benefits generally available to employees and to full-time
senior management employees of TCF Financial occupying the same or a similar
position as Executive, as such benefits may be changed from time to time.  As of the Effective Date hereof, such fringe
benefits consist of four weeks of vacation annually (Executive’s shall be
pro-rated for 1999); a $750 monthly allowance for leasing of a company car; a
country club membership; a home business hook-up, phone line and Internet
access for Executive’s home computer; an annual executive physical; and tax
preparation by KPMG.

 

                5.3           Benefits.  Throughout the Term of this Agreement, TCF
Financial shall make available to Executive the benefits provided to executives
generally under TCF Financial’s general benefits programs including, but not
limited to, the TCF Employees Stock Purchase Plan (401-k Plan), the TCF Cash
Balance Pension Plan, the Deferred Compensation Plan, the Supplemental
Employees Retirement Plan (“SERP”), and medical/dental, group term life
insurance (including optional insurance which Executive may elect to purchase),
disability coverage, and all other benefit plans available to executives
generally. Executive shall be eligible to participate in these plans on the
same terms and conditions as apply to TCF executives generally.

 

Section 6 -
Confidentiality and Covenant Not to Compete

 

                6.1           Covenant
Not to Compete.  In consideration of
the compensation, benefits and other valuable consideration provided to
Executive under this Agreement: (i) if TCF Financial terminates Executive’s
employment with or without Cause, (ii) if TCF Financial terminates Executive’s
employment on account of Disability and Executive is 

 

6

 

entitled to disability
benefits under TCF Financial’s disability benefit plan, or (iii) if Executive
terminates employment with or without Good Reason, Executive covenants and
agrees that Executive shall not do any of the following:

 

                                (a)           Without the prior written consent of
TCF Financial, engage or become interested in any capacity, directly or
indirectly (whether as proprietor, five percent or greater stockholder,
director, partner, employee, trustee, beneficiary, or in any other capacity) in
any business selling, providing or developing leasing or equipment finance
products or services in competition with leasing or equipment finance products
or services sold or maintained by Winthrop, New Leasing Co., or any of its
subsidiaries or affiliates in the United States; or

                                (b)           Recruit or solicit for employment any
current or future employee of TCF Financial, Winthrop, New Leasing Co. or any
of their successors, subsidiaries or affiliates.

Executive’s
obligations under this Section 6.1 shall continue for two years after such
termination of employment. 
Notwithstanding the foregoing provisions of this section 6.1, Executive
shall have no obligations under this section if Executive’s termination of
employment occurs in conjunction with the discontinuance by TCF Financial,
Winthrop or TCF Leasing (or any successor thereto) of all or substantially all
leasing activities.

                6.2           Confidential Information.  Executive acknowledges that all Secret or
Confidential Information is the exclusive property of TCF Financial, as the
case may be. Executive shall not during the period of his employment or for two
years thereafter, disclose to any person, firm or corporation, or publish or
use for any purpose, any Secret or Confidential Information except as properly
required in the ordinary course of business of TCF Financial or as directed and
authorized thereby.  Upon the termination
of his employment for any reason whatsoever, Executive shall return and deliver
within 7 days any and all papers, books, records, documents, memoranda and
manuals, including all copies thereof, belonging or relating to TCF
Financial,  in Executive’s possession,
whether prepared by Executive or others. 
If at any time after the termination of Executive’s employment,
Executive determines that he has any Secret or Confidential Information in his
possession or control,  Executive shall
immediately return all such Secret or Confidential Information including all
copies and portions thereof.

                6.3           Disclosure and Survival of Covenants.  If Executive, after termination of employment
and while subject to Sections 6.1 and 6.2, seeks or is offered employment by
any other company, firm, or person, he shall provide a copy of this Agreement
to the prospective employer prior to accepting employment with that prospective
employer.  The provisions of Sections 6.1
and 6.2 shall survive any termination of this Agreement.

Section 7 - Termination

                7.1           Automatic Termination Upon Death or Disability.  Employment under this Agreement shall
terminate on the earliest of death of Executive, or the determination by 

 

7

 

the TCF Personnel
Committee of Executive’s Disability. 
Thereafter, no further compensation shall be payable under this
Agreement except Bonus Compensation already earned.  The Executive’s (and his beneficiaries’)
rights to other compensation and benefits shall be determined under the
company’s benefit policies and plans applicable to company executives then in
effect.

                7.2           Termination by the Personnel Committee.  The TCF Personnel Committee may terminate
this Agreement and Executive’s employment at any time with or without Cause by
giving Notice of Termination in accordance with Section 7.4 below.

                7.3           Termination by Executive for Good Reason or Otherwise.  Executive may terminate his employment with
or without Good Reason by giving Notice of Termination in accordance with
Section 7.4 below

                7.4           Notice of Termination.  Any termination by the TCF Personnel
Committee or Executive pursuant to this Agreement shall be communicated by
written Notice of Termination to the other party hereto and shall specify the
effective date of Executive’s termination of employment, which shall be not
more than thirty days after the date such Notice is given, or if no date is
specified, then the effective date shall be 30 days after such Notice is given.

Section 8 - Compensation Upon Termination

                8.1           Compensation Upon Death.  If Executive’s employment is terminated
because of the death of Executive, TCF Financial shall pay Executive’s
executors or administrators: (a) within 30 days of Executive’s death, the unpaid
balance of Executive’s Base Compensation through the end of the month in which
Executive’s death occurred, at 100% of the rate in effect on the date of
Executive’s death; and (b) as soon as such Executive’s bonus is calculated, an
amount equal to Executive’s Bonus Compensation for the current year prorated
based on the number of days elapsed during such year prior to Executive’s
death, and thereafter TCF Financial shall have no further obligations under
this Agreement.

                8.2           Compensation Upon Disability.  If Executive’s active work ceases because of
Disability: (a) TCF Financial shall continue, as and when scheduled, to pay
Executive Executive’s Base Compensation through the date Executive’s disability
benefits commence, and (b) as soon as Executive’s bonus is calculated for the
year, an amount equal to Executive’s Bonus Compensation due for the current
year prorated based on the number of days elapsed during such year prior to
Executive’s Disability; and thereafter TCF Financial shall have no further obligations
under this Agreement unless and until 
Executive returns to work pursuant to mutual agreement between Executive
and TCF Financial.

                8.3           Compensation Upon Termination for Cause.  If Executive’s employment shall be terminated
by TCF Financial for Cause, TCF Financial shall pay Executive his Base
Compensation through the Date of Termination, and TCF Financial shall not have 

 

8

 

any further
obligations to Executive under this Agreement other than normal employee
benefits.

                8.4           Compensation Upon Termination by TCF Financial Other
Than For Cause; Termination by Executive for Good Reason.  If Executive’s employment is terminated by
TCF Financial other than for Cause, Disability or death or Executive terminates
his employment for Good Reason, then Executive shall be entitled to severance
pay consisting of his Base Compensation for each bi-weekly pay period for two
years after the effective date of the termination, as and when payable
hereunder as if there had been no termination, plus a bonus at the time of
termination equal to the average of his last two years of Bonus Compensation
preceding the termination plus continuation of the company paid portion of
premiums for disability, life insurance, medical and dental coverage such that
Executive’s premiums are the same as active employees provided that the
employer payments toward premiums for each type of coverage (disability, life
insurance, medical and/or dental) will be paid only for so long as Executive
elects to continue the respective coverage and further provided that
such employer payments toward premiums for each type of coverage will cease as
soon as Executive obtains new employment with comparable replacement benefits
for such type of coverage. For purposes of this Section 8.4, non-renewal of
this Agreement by the Personnel Committee of this Agreement under Section 2.2
shall be deemed to be a  termination by
TCF Financial other than for Cause, unless such non-renewal meets the
requirements of Section 1.10, in which case the non-renewal will be deemed a
termination for Cause.  Upon Executive’s
termination of employment, all employee and employer contributions to the TCF
Employees Stock Purchase Plan (the “401-k Plan”) and/or the Executive Deferred
Compensation Plan (the “Executive Deferred Plan”) shall cease, his severance
payments shall not be treated as covered compensation under the 401-k Plan, the
Executive Deferred Plan or the TCF Cash Balance Pension Plan, and  Executive will be entitled to distributions
from those plans in accordance with their terms.

                8.5           Successors
of TCF Financial.  TCF Financial
shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of TCF Financial, by agreement in form and substance satisfactory to
Executive, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that TCF Financial would be required if no such
succession had taken place.

 

Section 9 - Miscellaneous

                9.1           Notice.  Any
notice or request required or permitted to be given under this Agreement shall
be in writing and shall be deemed sufficiently given for all purposes if mailed
by certified mail, postage prepaid and return receipt requested, addressed to
the intended recipient at the following address (or at such other address as
either party may designate in writing to the other party by certified mail as
described above):

                If to TCF Financial:

                                Attention: General Counsel

 

9

                                TCF Financial Corporation

                                801 Marquette Avenue

                                Minneapolis, MN 55402

 

                If to Executive:

                                Craig R. Dahl

                                10340 Summer Place

                                Eden Prairie, Minnesota 55347

                Or to the last known address for
Executive on file at TCF Financial.

                9.2           Headings. 
The headings used in this Agreement have been included solely for ease
of reference and are not to be construed in any interpretation of this
Agreement.

                9.3           Entire Agreement. 
This instrument contains the entire agreement between the parties with
respect to the subject matter hereof, and shall supersede all prior agreements
and understandings with respect to the subject matter hereof.  No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not set forth expressly in this
Agreement.  No modification or addition
to this Agreement shall be enforceable unless in writing and signed by the
party against whom enforcement is sought.

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

                9.5           Arbitration. 
Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration except if TCF Financial
seeks a court injunction under Section 9.7. 
Such arbitration shall be conducted before a panel of three arbitrators
sitting in a home office selected by Executive within fifty (50) miles from the
location of TCF Financial, in accordance with the rules of the American
Arbitration Association then in effect. 
Judgment may be entered on the arbitrator’s award in any court having
jurisdiction.

                9.6           Benefit. 
This Agreement shall inure to the benefit of and shall be binding upon
TCF Financial, its successors and assigns, and this Agreement shall not be
assignable by Executive.

                9.7           Remedies. 
Executive acknowledges that the services to be rendered under this
Agreement are special, unique and of extraordinary character.  If Executive breaches any covenants, terms or
conditions of this Agreement to be performed by him, TCF Financial will suffer
irreparable damage and it will be impossible to estimate or determine damages.  Therefore, TCF Financial shall, upon proof of
such breach, be entitled as a matter of course to an injunction from any court
of competent jurisdiction restraining any further violation of such covenants
by Executive, his employers, employees, partners, agents or other associates,
or any of them.  TCF Financial’s right to
an injunction shall be cumulative and in addition to any other remedies
available, either in law or in equity. 
In any proceeding to enforce any provision of this Agreement, 

 

10

 

Executive shall
not assert any contention that there is an adequate remedy at law for the
breach or default upon which such proceeding is based.  Nothing in this paragraph shall be construed
to prevent any remedy in the courts or in arbitration in the case of any breach
of this Agreement by Executive which TCF Financial may elect or invoke.

                9.8           Severability. 
If any of the provisions of Section 6.1 of this Agreement are held to be
unenforceable because of their scope, duration or area of applicability, the
arbitrator making such determination shall have the power to modify such scope,
duration or area of applicability or all of them.  Section 6.1, as modified, shall then be valid
and enforceable in such modified form. 
If any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect, the validity and enforceability of all other
applications of that provision and of all other provisions and applications
hereof shall not in any way be affected or impaired.

                9.9           Waiver.  No
provisions of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by
Executive and such officer as may be specifically designated by the TCF
Personnel Committee.  The failure of TCF
Financial or Executive at any time or times to enforce rights under this
Agreement strictly in accordance with the same shall not be construed as a
waiver or modification of the same. 
Waiver by either party of any breach or breaches of this Agreement, or
of any noncompliance with any condition or provision of this Agreement, by the
other party hereto shall not be deemed a waiver or amendment of such provisions
or conditions.

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

 

11

 

                IN WITNESS WHEREOF, the parties
hereto have executed this Agreement, as of the day and year first above
written.

	
   

  	
  TCF FINANCIAL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lynn A. Nagorske

  
	
   

  	
   

  
	
   

  	
  Title: 

  	
  President

  
	
   

  	
   

  
	
   

  	
  CRAIG R. DAHL

  
	
   

  	
   

  
	
   

  	
  /s/ Craig R. Dahl

  
				

 

12

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