Document:

exv10w4

 

Exhibit 10.4

TD BANKNORTH INC.

AMENDED AND RESTATED SUPPLEMENTAL RETIREMENT PLAN

ARTICLE ONE – GENERAL

     The purpose of this TD Banknorth Inc. Amended and Restated Supplemental Retirement Plan (this
“Plan”) is to attract and retain certain key employees of TD Banknorth Inc. (the “Company”) and its
affiliates (the Company and its affiliates are collectively referred to as the “Group”) by
recognizing the past service of such key employees and providing supplemental retirement benefits
as herein described. This amended and restated Plan is adopted effective as of January 23, 2007
(the “Effective Date”).

     This Plan amends and restates the TD Banknorth Inc. Amended and Restated Supplemental
Retirement Plan that was effective as of May 9, 2006 (the “2006 Plan”). The 2006 Plan amended and
restated the Banknorth Group, Inc. Supplemental Retirement Plan that was originally effective as of
March 27, 2001 (the “2001 Plan”). Banknorth Group, Inc. was the predecessor to TD Banknorth Inc.
The 2001 Plan was previously amended in February 2005 to address the treatment of certain
accelerated compensation and the definition of Earnings.

     The Plan was amended and restated in 2006 to comply with the requirements of Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”), including the guidance issued to date
by the Internal Revenue Service (the “IRS”) and the proposed regulations issued by the IRS in the
fall of 2005. No benefits payable under this Plan shall be deemed to be grandfathered for purposes
of Section 409A of the Code.

     This Plan is being further amended and restated in order to take advantage of the extension of
the transitional relief granted by the IRS in Notice 2006-79 with respect to payment and deferral
elections. None of the changes to comply with Section 409A of the Code increase or decrease the
amount of the benefits payable to a Participant.

ARTICLE TWO — ADMINISTRATOR

     Subject to Article Nine below, the Plan shall be administered by the Company’s Board of
Directors (the “Board”) or a committee thereof (the Board or such committee is hereinafter referred
to as the “Administrator”). The Administrator shall interpret the Plan, shall prescribe, amend and
rescind rules relating to it from time to time as it deems proper and in the best interests of the
Company, and shall take any other action necessary for the administration of the Plan. Any decision
or interpretation adopted by the Administrator shall be final, conclusive and binding upon all
Participants.

 

 

ARTICLE THREE — PARTICIPATION

     3.01 GENERAL. Any individual who as of March 27, 2001 was a Key Employee, as defined below,
shall be a Participant as of March 27, 2001. Any individual who, after March 27, 2001, becomes a
Key Employee shall become a Participant on the date determined by guidelines established by the
Administrator, provided that any individual who becomes a Key Employee
after the Effective Date shall not become a Participant until the January 1st of the
calendar year immediately following the date on which the individual became a Key Employee. For the
purposes of this Plan, the term “Key Employee” means an employee of any member of the Group whose
position is designated at Level 20 or above and with respect to whom application of the formula set
forth in Section 4.01 below would yield a positive dollar amount; provided, however, that neither
the term Key Employee nor the term Participant shall include any employee of any member of the
group who is entitled to supplemental retirement benefits under any Supplemental Retirement
Agreement or other similar agreement between such employee and any member of the Group.

     3.02 TERMINATION; REEMPLOYMENT. A Participant shall cease to be a Participant upon termination
of employment with the Group or otherwise ceasing to be a participant in the Pension Plan (defined
below). A former Participant who recommences employment as a Key Executive (a “Former Participant”)
may recommence participation in the Plan only with the permission of and in accordance with
guidelines determined by the Administrator. Without limiting the foregoing, in the case of any
Former Participant who has received any payments under the Plan, the Administrator, in its
discretion, may impose such conditions to subsequent participation (which may include adjustments
to the Participant’s supplemental pension benefits (the “SRA”) under this Plan and suspension of
benefits under the Plan during any period of subsequent participation) as the Administrator deems
appropriate or necessary for the proper administration of the Plan; provided that the Administrator
shall first notify the Former Participant of such conditions and offer the Former Participant the
option of accepting the same and again becoming a Participant or declining his or her eligibility
for subsequent participation; and provided further that the Former Participant’s subsequent
participation in the Plan shall not re-commence until the January 1st of the calendar
year immediately following the date on which the Former Participant agrees to again become a
Participant.

ARTICLE FOUR — RETIREMENT BENEFITS

     4.01 GENERAL. (a) Each Participant shall be entitled to a SRA in an amount equal to the
excess, if any, of

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     (i) subject to Section 4.01(b) below, the benefit to which such Participant would be entitled
under the Banknorth Group, Inc. Retirement Plan (known before May 10, 2000 as the Peoples Heritage
Financial Group, Inc. Retirement Plan and hereinafter referred to as the “Pension Plan”), stated in
the form of a monthly single life annuity commencing on the Participant’s “Normal Retirement Date”
as defined in Section 4.01(c) below and ending with the monthly payment preceding the Participant’s
death (the “Normal Benefit”), computed without regard to those provisions of the Pension Plan
implementing the restrictions or limitations imposed by the provisions of Section 1.16 of the
Pension Plan following the first paragraph thereof or any other Pension Plan provision implementing
the limitations set forth in Section 401(a)(17) of the Code, and without regard to Section 3.10 of
the Pension Plan or any other Pension Plan provision implementing the limitations set forth in
Section 415 of the Code (the “Hypothetical Unrestricted Benefit”); provided, however, that
notwithstanding the foregoing, for purposes of calculating the Hypothetical Unrestricted Benefit to
which a Participant would be entitled to under the Pension Plan, the following adjustments shall be
made in determining the
Earnings of a Participant for any Plan Year: (1) any short-term incentive bonus for calendar 2004
that a Participant received in December 2004 because of the acceleration of such payment shall be
included in Earnings in 2005 rather than 2004; (2) any long-term incentive payment that a
Participant received in December 2004 because of the acceleration of such payment shall be included
in Earnings in such amounts and at such times as it would have been paid absent the acceleration;
and (3) for those Participants who have an employment or retention agreement with the Company as of
February 28, 2005, none of the payments made to the Participant pursuant to the sections of such
agreements entitled “Initial Payment and Non-Competition and Retention Amount,” “Initial Payment
and Retention Amount,” “Termination of Employment” and “Certain Supplemental Payments by the
Company” shall be included in Earnings; over

     (ii) the amount of the actual Normal Benefit payable to such Participant commencing on the
Normal Retirement Date under the Pension Plan.

     (b) If a Participant has an employment or retention agreement with the Company which provides
that the Participant shall receive additional age and service credits for purposes of calculating
the Participant’s benefits under this Plan, and if such Participant makes a valid election to
receive his additional benefits in the form of an increased SRA under this Plan as set forth below
rather than in the form of a lump sum cash payment at the time the Participant’s “Non-Competition
and Retention Amount” or “Retention Amount” is paid, as applicable and as such terms are defined in
the Participant’s employment or retention agreement, then the computation of the Participant’s
Hypothetical Unrestricted Benefit under Section 4.01(a)(i) above shall reflect the additional age
and service credits provided to the Participant under his employment or retention agreement in
accordance with the terms of such agreement. Any election by the Participant to receive such
additional benefits in the form of an increased SRA under this Plan rather than in the form of a
lump sum cash payment under the Participant’s employment or retention agreement must be made (i)
while the Participant is an active employee of the Company or one of its subsidiaries, (ii) by June
30, 2006 for those Participants with two-year retention agreements providing for retention payments
in March 2007, and (iii) by December 31, 2007 for those Participants with employment agreements or
three-year retention agreements providing for retention payments in March 2008, and must be
accompanied by a payment election that complies with Section 4.03(c) below.

     (c) For purposes of this Plan, a Participant’s Normal Retirement Date means the first day of
the month coincident with or next following the date on which the Participant attains sixty-five
(65) years of age.

     4.02 CHANGE IN CONTROL. In the event of a “Change in Control” as defined below, the
Hypothetical Unrestricted Benefit shall be calculated under Section 4.01 assuming the Pension Plan
provided a fully vested benefit at all times (i.e., without any reduction in respect of amounts
which might otherwise be forfeited by the Participant under the terms of the Pension Plan). A
“Change in Control” shall mean a change in the ownership of The Toronto-Dominion Bank (“TD Bank”)
or the Company, a change in the effective control of TD Bank or the Company or a change in the
ownership of a substantial portion of the assets of TD Bank or the Company as provided under
Section 409A of the Code, as amended from time to time, and any IRS guidance, including Notice
2005-1, and regulations issued in connection with Section 409A
of the Code, except that (i) any change in the ownership, effective control or ownership of a
substantial portion of the assets of the Company effected by TD Bank and its affiliates shall be
excluded, and (ii) any change in the ownership, effective control or ownership of a substantial
portion of the assets of TD Bank shall be excluded if TD Bank and its affiliates are not a majority
shareholder of the Company at the time of such change.

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     4.03 PAYMENT OF BENEFIT. (a) General. Unless otherwise elected as described in this
Section 4.03, the SRA shall be paid in the form of a Normal Benefit commencing on the Participant’s
Normal Retirement Date. Participants may elect to receive the SRA (x) in any of the forms of
benefit available under the Pension Plan (including the different forms of annuities set forth in
Section 4.04 of the Pension Plan), in which case the amount of payments under such alternate form
shall be determined in accordance with the provisions of the Pension Plan controlling the
determination of the amount of payments under such form under the Pension Plan or (y) in a lump sum
payment following termination of employment in an amount equal to the Actuarial Equivalent (as
defined in the Pension Plan) of the SRA determined in the manner prescribed for determining
Actuarial Equivalents under the Pension Plan. In addition, each Participant may elect to receive
the SRA upon any of the following events other than the Participant’s Normal Retirement Date: (i)
early retirement before age 65, if the Participant is entitled to any early retirement benefit
under the Pension Plan and if such early retirement constitutes a “Separation from Service” as
defined in Section 4.03(e) below, (ii) death or (iii) termination of employment after the
Participant’s Normal Retirement Date, if such termination constitutes a “Separation from Service”
as defined in Section 4.03(e) below, provided that any payments triggered by a Separation from
Service shall be delayed as set forth in Section 4.03(e) below. Any election of an alternate form
or time of benefit shall be made in the manner determined by the Administrator.

     (b) Initial and Prior Elections. A Participant may make an initial payment election
as to the time and form of payment of his or her SRA within 30 days of the date the Participant
first becomes eligible to participate in the Plan. If an initial payment election is not made by a
Participant within 30 days of the date the Participant first becomes eligible to participate in the
Plan, then the initial payment election shall be deemed to be in the form of a Normal Benefit
commencing on the Participant’s Normal Retirement Date. The initial payment election shall
continue in effect until such time as the Participant makes a subsequent payment election and such
election becomes effective as set forth below. In addition, any payment elections made before
January 1, 2005 shall continue in effect until such time as the Participant makes a subsequent
payment election and such election becomes effective as set forth below.

     (c) Transitional Elections Prior to 2008. On or before December 31, 2007, if a
Participant wishes to change his or her payment election as to either the time or form of payment
or both, the Participant may do so by completing a payment election form approved by the
Administrator, provided that (i) any such election must be made while the Participant is an active
employee of the Company or one of its subsidiaries, (ii) any payment election made in 2006 cannot
apply to amounts that would otherwise be payable in 2006 and may not cause an amount to be paid in
2006 that would otherwise be paid in a later year, and (iii) any payment election made in 2007
cannot apply to amounts that would otherwise be payable in 2007 and may not cause an amount to be
paid in 2007 that would otherwise be paid in a later year.

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     (d) Changes in Payment Elections After 2007. On or after January 1, 2008, if a
Participant wishes to change his or her payment election as to either the time or form of payment
or both, a Participant may do so by completing a payment election form approved by the
Administrator, provided that any such election (i) must be made while the Participant is an active
employee of the Company or one of its subsidiaries, (ii) must be made at least 12 months before the
date on which any benefit payments as of a fixed date or pursuant to a fixed schedule are scheduled
to commence, (iii) shall not take effect until at least 12 months after the date the election is
made and accepted by the Administrator, and (iv) for payments to be made other than upon death,
must provide an additional deferral period of at least five years from the date such payment would
otherwise have been made (or in the case of any life annuity or installment payments treated as a
single payment, five years from the date the first amount was scheduled to be paid), provided that
clause (iv) above shall not apply to a change in the form of a payment from one type of “life
annuity” (as defined in the regulations under Section 409A of the Code) to another type of life
annuity if the annuities are actuarially equivalent applying reasonable actuarial assumptions. For
purposes of this Plan and clause (iv) above, all life annuities or installment payments under this
Plan shall be treated as a single payment.

     (e) Separation from Service. A “Separation from Service” shall mean separation from
service within the meaning of Section 409A of the Code and the regulations issued thereunder, other
than death. If the payment event is a Separation from Service, then the SRA shall not be paid, or
the payment shall not commence, until the first day of the month following the lapse of six months
from the date of Separation from Service. If the SRA is being paid in the form of an annuity or
installments over time, then all future payments shall be made in the ordinary course based on the
commencement of the payments as of the first day of the month following the lapse of six months
from the date of Separation from Service.

     4.04 BENEFICIARY. In the event of death of a Participant, SRA payments, if any, to be made
after the date of death (as determined with reference to the benefit election, if any, in effect on
the date of the Participant’s death, “Remaining Payments”) shall be made to his or her Beneficiary,
as defined below, and in such case all references to “Participant” herein shall, where applicable,
apply to the Beneficiary of the deceased Participant. The “Beneficiary” shall be the person, if
any, entitled to receive benefits following the death of a Participant as provided under the
Pension Plan. If no Beneficiary is designated, the designation is ineffective, or the Beneficiary
dies, any then Remaining Payments shall be paid to the estate of the deceased Participant.

     4.05 REFERENCES TO PENSION PLAN. In the event of any amendment, restatement or other
modification of the Pension Plan (including any replacement of the Pension Plan), this Plan shall
be deemed automatically amended to incorporate corresponding modifications to the extent necessary
to correct any references to Sections of the Pension Plan herein and to preserve the intended
meaning and import of such references. Without limiting the foregoing, the Administrator may at any
time and from time to time amend or modify the Plan to the extent it deems necessary to address
modifications or amendments to the Pension Plan.

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ARTICLE FIVE — ASSIGNMENT

     No right to payment of any amount under the Plan may be assigned, transferred, pledged or
encumbered, nor shall any such right or other interest in amounts payable under the Plan be subject
to any attachment, garnishment, execution or other legal process.

ARTICLE SIX — OTHER PLANS

     Nothing in the Plan shall be construed to alter, abridge, or in any manner affect the rights
and privileges of any Participant to participate in and be covered by any pension, profit-sharing,
group insurance, bonus or any other employee plan or plans which any member of the Group may have
or hereafter have, except as otherwise expressly provided herein or in any such other plans.

ARTICLE SEVEN — FUNDING

     The Company, in its discretion, shall have the right at any time and from time to time to
insure or otherwise provide for the obligations under the Plan (or to refrain from so insuring or
making any such provision) and to determine the extent, nature and method of any such insurance or
provision, including the establishment of one or more trusts, provided that the terms of each trust
comply with Section 409A of the Code. If the Company elects to insure its obligations under the
Plan, in whole or in part, through the medium of insurance or annuities, or both, the Company, or a
designated member of the Group shall be the owner and beneficiary of each such policy or annuity.
At no time shall any Participant be deemed to have any right, title or interest in or to any
specified asset or assets of any such trust or escrow arrangement, including, without limitation,
any insurance, annuity or other contracts or any proceeds therefrom.

ARTICLE EIGHT — NO TRUST CREATED

     Nothing herein shall be deemed to create any trust or fiduciary relationship of any kind
between any member of the Group and any Participant, Beneficiary or estate of any Participant.

ARTICLE NINE — REORGANIZATION

     The Company shall not merge or consolidate into or with another corporation, or reorganize, or
sell substantially all of its assets to another corporation, firm or person unless and until such
succeeding or continuing corporation, firm or person agrees to assume and discharge the obligation
of the Company and the Group under the Plan. Upon the occurrence of any such merger, consolidation,
reorganization or sale, the term “the Company” as used in this Plan shall be deemed to refer to
such successor, assignee or survivor corporation, firm or person.

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ARTICLE TEN — CLAIMS PROCEDURE

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

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

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

	 	(i)	 	The specific reasons for the denial;
	 
	 	(ii)	 	A reference to the Plan provision upon which the denial is
based;
	 
	 	(iii)	 	A description of any additional information or material that
the Claimant must provide in order to perfect the claim;
	 
	 	(iv)	 	An explanation of why such additional material or information
is necessary;
	 
	 	(v)	 	Notice that the Claimant has a right to request a review of the
claim denial and information on the steps to be taken if the Claimant wishes to
request a review of the claim denial; and
	 
	 	(vi)	 	A statement of the Participant’s right to bring a civil action
under Section 502(a) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), following a denial on review of the initial denial.

     10.03 REVIEW PROCEDURES.

	 	(a)	 	Request For Review. A request for review of a denied claim must be
made in writing to the Administrator within sixty (60) days after receiving notice of
denial. The decision upon review will be made within sixty (60) days after the
Administrator’s receipt of a request for review, unless special circumstances require
an extension of time for processing, in which case a decision will be rendered not
later than one hundred twenty (120) days after receipt of a request for review. A
notice of such an extension must be provided to the Claimant
within the initial sixty (60) day period and must explain the special circumstances
and provide an expected date of decision.

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	 	 	 	The reviewer shall afford the Claimant an opportunity to review and receive, without
charge, all relevant documents, information and records and to submit issues and
comments in writing to the Administrator. The reviewer shall take into account all
comments, documents, records and other information submitted by the Claimant
relating to the claim regardless of whether the information was submitted or
considered in the initial benefit determination.
	 
	 	(b)	 	Manner and Content of Notice of Decision on Review. Upon completion of
its review of an adverse claim determination, the Administrator will give the Claimant,
in writing or by electronic notification, a notice containing:

	 	(i)	 	its decision;
	 
	 	(ii)	 	the specific reasons for the decision;
	 
	 	(iii)	 	the relevant Plan provisions on which its decision is based;
	 
	 	(iv)	 	a statement that the Claimant is entitled to receive, upon
request and without charge, reasonable access to, and copies of, all documents,
records and other information in the Plan’s files which is relevant to the
Claimant’s claim for benefits;
	 
	 	(v)	 	a statement describing the Claimant’s right to bring an action
for judicial review under Section 502(a) of ERISA; and
	 
	 	(vi)	 	if an internal rule, guideline, protocol or other similar
criterion was relied upon in making the adverse determination on review, a
statement that a copy of the rule, guideline, protocol or other similar
criterion will be provided without charge to the Claimant upon request.

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

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

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     10.06 ADMINISTRATOR REVIEW. Notwithstanding anything in this Plan to the contrary, the
Administrator may determine, in its sole and absolute discretion, to review any claim for benefits
submitted by a Claimant under this Plan.

ARTICLE ELEVEN — AMENDMENT, SUSPENSION, TERMINATION

     11.01 GENERAL. The Board may at any time and from time to time amend, suspend or terminate
the Plan or any Participant’s participation therein; provided, however, that no amendment,
suspension or termination may impair the rights of any Participant (or, in the case of a deceased
Participant, his or her Beneficiary or estate) to receive benefits accrued prior to the effective
date of such amendment, suspension or termination. Notwithstanding anything in the Plan to the
contrary, the Board may amend in good faith any terms of the Plan, including retroactively, in
order to comply with Section 409A of the Code.

     11.02 TERMINATION. Under no circumstances may the Plan permit the acceleration of the time
or form of any payment under the Plan prior to any of the payment events specified herein, except
as provided in this Section 11.02. The Company may, in its discretion, elect to terminate the Plan
in any of the following three circumstances and accelerate the payment of the entire unpaid balance
of each Participant’s accrued benefits in an amount equal to the Actuarial Equivalent (as defined
in the Pension Plan) of such Participant’s accrued benefits as of the date of such payment in
accordance with Section 409A of the Code:

	 	(i)	 	the Plan is terminated within the 30 days preceding a Change In Control and (1)
all substantially similar arrangements sponsored by the Sponsor are terminated, and (2)
all Participants in the Plan and all participants under the substantially similar
arrangements receive all of their benefits under the terminated arrangements within 12
months of the date of termination of the arrangements,
	 
	 	(ii)	 	the Plan is terminated and (1) all arrangements sponsored by the Company that
would be aggregated with the Plan under Treasury Regulation 1.409A-1(c) if a
Participant participated in all of the arrangements are terminated, (2) no payments
other than payments that would be payable under the terms of the arrangements if the
termination had not occurred are made within 12 months of the termination of the
arrangements; (3) all payments are made within 24 months of the termination of the
arrangements; and (4) the Company does not adopt a new arrangement that would be
aggregated with the Plan under Treasury Regulation 1.409A-1(c) if the same Participant
participated in both arrangements, at any time within five years following the date of
termination of the Plan, or
	 
	 	(iii)	 	the Plan is terminated within 12 months of a corporate dissolution taxed under
Section 331 of the Code, or with the approval of a bankruptcy court pursuant to 11
U.S.C. §503(b)(1)(A), provided that the amounts deferred by each Participant under the
Plan are included in the Participant’s gross income in the later of (1) the
calendar year in which the Plan termination occurs, or (2) the first calendar year
in which the payment is administratively practicable.

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ARTICLE TWELVE — GOVERNING LAW; SEVERABILITY

     This Plan shall be governed by and construed in accordance with the laws of the State of Maine
without regard to its conflicts of laws principles. Each provision of this Plan is intended to be
severable and the invalidity, illegality or unenforceability of any portion of this Plan shall not
affect the validity, legality and enforceability of the remainder.

ARTICLE THIRTEEN — EMPLOYMENT

     Nothing herein shall be deemed to confer on any Participant any right to continue in
employment with the Company or any other member of the Group, or to interfere with or limit in any
way the right of the Company or any other member of the Group to terminate such employment at any
time. The benefits provided under this Plan are not part of any salary reduction plan or an
arrangement deferring a bonus or a salary increase.

ARTICLE FOURTEEN — WITHHOLDING

     The Company shall be entitled to withhold from payment of benefits hereunder any federal,
state or local withholding or other taxes or charge from time to time required to be withheld. The
Company shall be entitled to rely on the opinion or advice of its counsel in determining its
withholding obligations.

     IN WITNESS WHEREOF, the Company has caused this Plan to be executed as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TD BANKNORTH INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 /s/ Jay Milligan

	 	 	 	By:	 	/s/  Cynthia H. Hamilton	 	 
	 

	 	 	 	 	 	 	 	 
	Witness

	 	 	 	Name:
	 	Cynthia H. Hamilton	 	 
	 

	 	 	 	Title:
	 	Executive Vice President	 	 

10exv10w5

 

Exhibit 10.5

TD BANKNORTH INC.

AMENDED AND RESTATED

PERFORMANCE-BASED

RESTRICTED STOCK UNIT AWARD AGREEMENT – CASH SETTLEMENT

AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN

     THIS Amended and Restated Performance-Based Restricted Stock Unit Award Agreement, dated
January 23, 2007 (the “Agreement”), amends the award agreement (the “Initial Agreement”) previously
made as of May ___, 2005 (hereinafter referred to as the “Date of Grant”) by and between TD
Banknorth Inc. (the “Company”) and                      (the “Participant”). Defined terms, unless
otherwise defined herein, shall have the same meaning as set forth in the Plan (as hereinafter
defined).

WITNESSETH:

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

     WHEREAS, the Company previously granted to the Participant Performance-Based Restricted Stock
Units, as described in the Plan;

     WHEREAS, the Initial Agreement provided for the grant of                      Performance-Based Restricted
Stock Units (the “Initial Units”), with each Initial Unit representing one share of common stock,
$0.01 par value per share, of the Company (the “Common Stock”);

     WHEREAS, the Initial Units were to be earned if the Company achieved at least a 4% compound
average increase in diluted operating earnings per share (“Operating EPS”) during the period April
1, 2005 through and including December 31, 2007;

     WHEREAS, the Company’s compound average increase in Operating EPS through December 31, 2006
was less than 4% and none of the Initial Units have been earned as of December 31, 2006;

     WHEREAS, the Company entered into an Agreement and Plan of Merger dated as of November 19,
2006 with The Toronto-Dominion Bank and Bonn Merger Co. (the “Merger Agreement”); and

     WHEREAS, the Merger Agreement provides that for purposes of the Initial Agreement, performance
through December 31, 2006 will be based on the Company’s actual performance, and that for periods
subsequent to December 31, 2006 the performance criteria will be based on the relative total
shareholder return of The Toronto-Dominion Bank compared to a peer group; and

 

 

     WHEREAS, the Company desires to amend the Initial Agreement to reflect the Merger Agreement,
including reducing the Initial Units to reflect the Company’s performance through December 31, 2006
and changing the performance criteria;

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the Company and the Participant agree that this Amended and
Restated Agreement shall amend and restate the Initial Agreement in its entirety to read as
follows:

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

     2. Performance Result and Performance Target.

     (a) The “Performance Result” to be used for calculating the Performance Factor is the Total
Shareholder Return achieved by The Toronto-Dominion Bank over the one-year period from the end of
the fiscal year of The Toronto-Dominion Bank immediately preceding the date of this Agreement to
the end of the fiscal year of The Toronto-Dominion Bank immediately preceding December 31, 2007
(the “Maturity Date”).

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

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

     3. Performance Factor and Actual Units.

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

     Performance Factor    =    ((Performance Result – Performance Target)    x    1)    + 100

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

     (c) Calculation of Number of Actual Units. The number of Target Units will be multiplied by
the Performance Factor to determine the number of Actual Units.

     4. Adjustments to Number of Actual Units.

     (a) The number of Actual Units will be multiplied by a Service Percentage as defined below to
determine the number of Final Units to be paid out.

     (b) For Participants who remain continuously employed with the Company for the entire period
from January 1, 2007 through and including December 31, 2007 (the “Service Period”), the Service
Percentage shall equal 100%. For Participants whose employment is terminated during the Service
Period due to death or Disability, the Service Percentage shall equal 100%. For Participants whose
employment is terminated during the Service Period due to Retirement (as defined below), the
Service Percentage shall equal the following quotient: (a) the number of calendar weeks from
January 1, 2007 through and including the date of Retirement, divided by (b) 52 weeks, rounded to
the nearest one-tenth of a percent. For Participants who are on an unpaid leave of absence at any
time on or after January 1, 2007 through and including December 31, 2007, the Service Percentage
shall equal the following quotient: (x) the number of calendar weeks the Participant was actively
working for the Company during the period January 1, 2007 through and including December 31, 2007,
divided by (y) 52 weeks, rounded to the nearest one-tenth of a percent.

     (c) In the event a Change of Control occurs during the Service Period, the Service Percentage
for each Participant who is employed by the Company immediately prior to the Change of Control
shall be calculated as if the Participant had remained employed with the Company through and
including December 31, 2007. The consummation of the transactions contemplated by the Merger
Agreement will not constitute a Change in Control as defined in the Plan.

     (d) For purposes of this Agreement, “Retirement” means voluntary termination of employment
with the Company or any Affiliate after the Participant has (A) attained age 65 with at least five
years of service to the Company and (B) either (1) has become eligible for a fully vested benefit
under the Company’s Retirement Plan, or (2) if at the time of retirement, the Participant was
employed by an Affiliate that is not an “Employer” as defined in the Retirement Plan, would have
become so eligible if his or her Affiliate employer were an “Employer” as defined in the Retirement
Plan, provided that no Retirement may occur prior to the one-year anniversary of the Date of Grant.

     (e) If the Participant’s employment by the Company shall be terminated during the Service
Period and prior to a Change in Control for any reason other than death, Disability or Retirement,
including without limitation a termination of employment for “cause” (as determined pursuant to
Section 13(b) of the Plan) or a voluntary termination of employment by the Participant, then this
Agreement and the Target Units covered hereby shall expire immediately upon such termination and
all of the Target Units shall be forfeited. The Participant shall thereafter have no
rights under this Agreement or under the Agreement and no rights to receive the cash payment
specified in Section 5 below. The Company shall have the power in all cases to determine whether
the Participant has been terminated for cause and the date upon which such termination for cause
occurs. Any such determination shall be final, conclusive and binding upon the Participant.

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

     5. Settlement of Final Units in Cash.

     (a) Except as set forth in Sections 5(b) and 5(c) below, as soon as administratively feasible
following the Maturity Date but in no event later than March 15, 2008, the Company shall pay a lump
sum cash amount to the Participant equal to (i) the average of the closing sales prices of one
share of Common Stock on each of the 20 consecutive trading days on which such prices are so quoted
immediately preceding the Maturity Date (the “Maturity Date Share Price”), multiplied by (ii) the
number of Final Units, minus applicable withholding. If a Participant’s employment is terminated
due to death, Disability or Retirement, the cash payment to the Participant for his or her Final
Units shall be made as soon as administratively feasible following the Maturity Date but in no
event later than March 15, 2008.

     (b) Except as provided in Section 5(c) below, if a Change of Control occurs during the Service
Period, then the Company shall, within 60 days following the Change of Control, pay a lump sum cash
amount to the Participant equal to (i) the closing sales price of one share of Common Stock on the
last trading day immediately preceding the date of the Change of Control, multiplied by (ii) the
number of Final Units, minus applicable withholding.

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

     6. Withholding. The Company’s obligation to deliver the cash payment specified in
Section 5 hereof shall be subject to the Participant’s satisfaction of all applicable federal,
state, local and other income and employment tax withholding requirements as required by the Plan.

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

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

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

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

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

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

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

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

5

 

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

     16. Effect of Termination of Merger Agreement. Notwithstanding any other provision
herein to the contrary, if the Merger Agreement is terminated for any reason, then this Agreement
shall be null and void, and the Initial Agreement shall continue in full force and effect as if
this Agreement had never been adopted.

[NOTE: Section 17 below is only for inclusion in grant agreements for the officers who have an
employment or retention agreement.]

     17. Consent to Amended Definition. The Company and the Participant expressly agree
that, notwithstanding any provision in any employment or retention agreement between the Company
and the Participant to the contrary, the term “Change of Control” shall have the meaning set forth
in the Plan, and not as set forth in any employment or retention agreement between the Company and
the Participant. The Participant acknowledges that the definition of Change of Control included in
the Plan may in certain circumstances be less favorable to the Participant, and the Participant
agrees to such change. Except as expressly noted in this Section 17, this Agreement shall not by
implication or otherwise alter, modify, amend or in any way affect any of the terms of any
employment or retention agreement between the Company and the Participant.

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

	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	TD BANKNORTH INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

7

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