Document:

Ex102TedGilvarCMOOfferletter

Exhibit 10.2

March 26, 2015

Dear Ted:

I’m delighted to offer you the role of Chief Marketing Officer and look forward to having you join our Senior Leadership Team. Your experience, high energy and persuasive leadership style are sure to have an immediate impact on our strategies and results. 

Below is a quick summary of the offer details for the position.  I’ve attached a detailed offer letter that provides a comprehensive explanation of each offer component for your review.  

Key components of the offer include:

		
	•
	Base Salary $385,000

		
	•
	Target Bonus Opportunity of 60%

		
	•
	Guaranteed 50% attainment for 2015 

		
	•
	Sign-On Equity Award of:

		
	•
	85,000 Time-Based Restricted Stock Units

		
	•
	65,000 Performance-Based Restricted Stock Units

		
	•
	Severance equal to nine (9) months’ current base salary

If you have any questions, please do not hesitate to call me directly at (732) 365-1422, or Michael Porta at (732) 528-2608.  I appreciate your consideration and look forward to you becoming part of our team.

Best regards,

/s/ Joe
Joe Redling

1

March 26, 2015

Ted Gilvar
47 Page Hill Road
Far Hills, NJ 07931 

Dear Ted:

We are pleased to inform you that after careful consideration, Vonage Marketing LLC is extending an offer of employment, subject to the approval of the Board of Directors (the “Board”) of Vonage Holdings Corp. (together, with Vonage Marketing LLC, the “Company”).  This offer letter (the “Offer Letter”), if accepted by you and approved by the Board, shall set forth the terms of your employment.

1. Employment

		
	(a)
	You will be employed in the position of Chief Marketing Officer.

		
	(b)
	You will report to the Chief Operating Officer, Joe Redling. 

		
	(c)
	Your employment will commence on April 20, 2015 (the “Commencement Date”).

		
	(d)
	You will have duties and responsibilities customarily held by the chief marketing officer of a public corporation (which may be increased or decreased at the discretion of the Chief Executive Officer and Chief Operating Officer from time to time), including but not limited to, brand strategy and development, advertising, media, public relations, ecommerce, social and digital lead generation and acquisition, and market research and analytics.

2. Location  
Your office location will be at the Company's headquarters, which is located in Holmdel, NJ. 
3. Compensation

		
	(a)
	The Company will pay you an annual base salary (“Base Salary”) of $385,000, less applicable withholding, payable in equal installments in accordance with the Company’s regular payroll practices for similarly situated employees, but in no event less frequently than biweekly in arrears.

		
	(b)
	In addition to the Base Salary, you will be eligible for a Target Bonus Opportunity (“TBO”) of 60% of your Base Salary.    TBO payouts are granted in the Company’s sole discretion.  Your actual bonus attainment will be based on performance objectives determined in accordance with the Company’s customary practices and may be greater or less than 100%, with maximum attainment of 175% depending upon individual and Company performance.  For 2015, your TBO payout will not be pro-rated and will be guaranteed in a minimum 

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amount equal to $115,500.  When made, TBO payouts are generally paid in late February/early March.  You must be employed on the payout date to receive any TBO payout.

4. Equity Awards

		
	(a)
	 You will be granted 85,000 time-based restricted stock units (“Time-Based RSUs”) under the Vonage Holdings Corp. 2006 Incentive Plan (the “Incentive Plan”) pursuant to the Company’s form of Time-Based RSU agreement (the “Time-Based RSU Agreement”).  The number of shares covered by the Time-Based RSUs is subject to adjustment based on subsequent stock splits, reverse stock splits, other adjustments, or recapitalizations, as provided in the Incentive Plan.  Subject to your continued employment on each vesting date, the Time-Based RSUs will vest and become exercisable as to 1/3 of the shares on the first, second, and third anniversaries of the date of the award, which will be the first trading day of the month following your Commencement Date.  The Time-Based RSUs will be governed by and subject to the terms of the Incentive Plan and the Time-Based RSU Agreement, and in the event of a conflict between this paragraph and the Incentive Plan and Time-Based RSU Agreement, the terms of the Incentive Plan and Time-Based RSU Agreement shall control.

		
	(b)
	You will also be granted 65,000 performance restricted stock units (“Performance RSUs”) under the Incentive Plan pursuant to the Company’s form of TSR performance unit agreement (the “Performance RSU Agreement”).  The number of shares covered by the Performance RSUs is subject to adjustment based on subsequent stock splits, reverse stock splits, other adjustments, or recapitalizations, as provided in the Incentive Plan.  Subject to your continued employment on the last day of the performance period, the Performance RSUs may vest based upon the Company’s total shareholder return as compared to a peer group in accordance with the table included in the Performance RSU Agreement. The Performance RSUs will be governed by and subject to the terms of the Incentive Plan and the Performance RSU Agreement, and in the event of a conflict between this paragraph and the Incentive Plan and Performance RSU Agreement, the terms of the Incentive Plan and Performance RSU Agreement shall control.

		
	(c)
	Beginning in 2016, you will be eligible to participate in Vonage’s long-term incentive compensation program as may be in effect from time to time and receive annual incentive equity grants thereunder as determined by the Compensation Committee of the Board in its sole discretion.

5. Severance 

In addition, in the event your employment is terminated by the Company without Cause or by you with Good Reason, each as defined below, you will be entitled to severance pay equal to nine (9) months of your then-current base salary, less applicable withholding, which will be paid by the Company during its regular payroll cycle over the nine (9) month period following the date of your employment termination, provided, however, that the Company shall not be required to make the payments set forth in this paragraph 5 unless you execute and deliver to the Company 

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a Separation Agreement and General Release in a form reasonably acceptable to the Company in its sole discretion (the ''Release").   

"Cause “means (i) material failure to perform your employment duties (not as consequence of any illness, accident or other disability), (ii) continued, willful failure to carry out any reasonable lawful direction of the Company, (iii) diverting or usurping a corporate opportunity of the Company, (iv) fraud, willful malfeasance, gross negligence or recklessness in the performance of employment duties, (v) willful failure to comply with any of the material terms of this Offer Letter, (vi) other serious, willful misconduct which causes material injury to the Company or its reputation, including, but not limited to, willful or gross misconduct toward any of the Company's other employees, (vii) conviction of, or plea of nolo contendre to, a felony or a crime involving moral turpitude, and (viii) violation of any written Company policies or procedures; provided, however, that no event or condition described in clauses (i), (ii) or (v) shall constitute Cause unless (x) the Company gives you written notice of its intention to terminate your employment for Cause and the grounds for such termination and (y) such grounds for termination (if susceptible to correction) are not corrected by you within 15 days of your receipt of such notice. If you do not correct the grounds for termination during such 15-day cure period, your termination of employment for Cause shall become effective on the first business day following the end of the cure period. Unless otherwise advised by the Company, you will be expected to perform services for the Company during the cure period.

"Good Reason" means: (i) a decrease in your base salary; (ii) a material diminution of your authorities, duties or responsibilities; (iii) a failure of the Company to pay compensation due and payable to you in connection with your employment or (iv) relocation by the Company of your principal place of employment to a location that results in your commuting distance being at least 30 miles greater than your commuting distance on the Commencement Date; provided, however, that no event or condition described in clauses (i) through (iv) shall constitute Good Reason unless (x) you give the Company's most senior Human Resources employee written notice of your intention to terminate your employment for Good Reason and the grounds for such termination within 45 days after the occurrence of the event giving rise to the "Good Reason" termination and (y) such grounds for termination (if susceptible to correction) are not corrected by the Company within 30 days of its receipt of such notice (or, in the event that such grounds cannot be corrected within such 30-day period, the Company has not taken all reasonable steps within such 30 day period to correct such grounds as promptly as practicable thereafter).  If the Company does not correct the grounds for termination during such 30-day cure period (or take all reasonable steps within such 30-day period to correct such grounds as promptly as practicable thereafter), your termination of employment for "Good Reason" shall become effective on the first business day following the end of the cure period.  Unless otherwise advised by the Company, you will be expected to perform services for the Company during the cure period.

6. Benefits

		
	(a)
	You shall be entitled to participate in all employee health and welfare plans, programs and arrangements of the Company, to the extent you are eligible to participate in such plans, in accordance with their respective terms, as may be amended from time to time and on the basis no less favorable than that made available to other senior executives of the Company.

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	(b)
	Participation in the health and dental plan of the Company begins on the first day of the month immediately after your Commencement Date in accordance with the terms of the plans.

(c) You are eligible to participate in the Company’s 401(k) plan on the first day of the month immediately after your Commencement Date.   
(d) If you choose to participate in these benefits, you will receive a Summary Plan Description for the health and dental insurance, as well as the 401(k), plans.  A copy of the plan documents is available from the Plan Administrator (as defined in the Summary Plan Description).

7. Miscellaneous

		
	(a)
	In connection with your employment you will be required to enter into the Company’s Employee Covenants Agreement and acknowledge and consent to the Company’s Incentive Compensation Recoupment Policy (copies of which are enclosed with this Offer Letter).

 
		
	(b)
	You hereby represent to the Company that you are under no obligation or agreement that would prevent you from becoming an employee of the Company or adversely impact your ability to perform the expected responsibilities.  By accepting this offer, you agree that no trade secret or proprietary information not belonging to you or the Company will be disclosed or used by you at the Company.

		
	(c)
	 This Offer Letter is not an employment contract and does not create an implied or express guarantee of continued employment.  By accepting this offer, you are acknowledging that you are an employee at-will.  This means that either you or the Company may terminate your employment at any time and for any reason or for no reason. This Offer Letter contains the entire agreement and understanding between you and the Company with respect to the terms of your employment and supersedes any prior or contemporaneous agreements, understandings, communications, offers, representations, warranties, or commitments by or on behalf of the Company, whether written or oral, with respect to the terms of your employment.   Except for amendments to increase compensation payable to you, the terms of this Offer Letter may not be amended except pursuant to a written agreement between you and the Company.

		
	(d)
	Section 409A

		
	(i)
	The intent of the parties is that payments and benefits under this Offer Letter comply with or be exempt from Internal Revenue Code Section 409A and the regulations and guidance promulgated there under (collectively "Section 409A") and, accordingly, to the maximum extent permitted, this Offer Letter shall be interpreted to be exempt from Section 409A or in compliance therewith, as applicable.  If you notify the Company that you have received advice of tax counsel of national reputation with expertise in Section 409A that any provision of this Offer Letter (or of any award of compensation, including 

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equity compensation or benefits) would cause you to incur any additional tax or interest under Section 409A (with specificity as to the reason thereof) or the Company independently makes such determination,  the Company shall, after consulting with you, reform such provision to try to comply with Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Section 409A.  To the extent that any provision hereof is modified in order to comply with or be exempt from Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to you and the Company of the applicable provision without violating the provisions of Section 409A.

		
	(ii)
	A termination of employment shall not be deemed to have occurred for purposes of any provision of this Offer Letter providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment, unless such termination is also a "separation from service" within the meaning of Section 409A and the payment thereof prior to a "separation from service" would violate Section 409A.  For purposes of any such provision of this Offer Letter relating to any such payments or benefits, references to a "termination," "termination of employment" or like terms shall mean "separation from service."

		
	(iii)
	If, as of the date of your "separation from service" from the Company, you are a "specified employee" (within the meaning of that term under Section 409A(a)(2)(B)), then with regard to any payment or the provision of any benefit that is considered "nonqualified deferred compensation" under Section 409A (whether under this Offer Letter, any other plan, program, payroll practice or any equity grant) and is payable upon your separation from service, such payment or benefit shall not be made or provided until  the date which is the earlier of (A) the expiration of the six (6) month-and­one-day period measured from the date of your "separation from service," and (B) the date of your death (the "Delay Period") and this Offer Letter and each such plan, program, payroll practice or equity grant shall hereby be deemed amended accordingly. Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this paragraph (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to you in a lump sum with interest at the prime rate as published in the Wall Street Journal on the first business day of the Delay Period (provided that any payment measured by a change in value that continues during the Delay Period shall not be credited with interest for the Delay Period), and any remaining payments and benefits due under this Offer Letter shall be paid or provided in accordance with the regularly scheduled payment dates specified for them herein.

		
	(iv)
	For purposes of Section 409A, your right to receive any installment payments pursuant to this Offer Letter shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Offer Letter specifies a payment period with reference to a number of days  (e.g.,"payment shall be made within thirty (30) days following the date of termination") , the actual date of payment within the specified period shall be within the sole discretion of the Company.

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	(v)
	To the extent any reimbursement or in-kind payment provided pursuant to this Offer Letter is deemed nonqualified deferred compensation subject to Section 409A then (i) all such expenses or other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by you; (ii) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year; and (iii) the right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.

		
	(vi)
	No amounts payable to you by the Company or any of its subsidiaries or affiliates under this Agreement or any other agreement that constitute nonqualified deferred compensation subject to Section 409A shall be subject to offset by any other amount, except as permitted under Section 409A.

		
	(e)
	Withholding.  The Company may withhold any tax (or other governmental obligation) that may result from the payments made and benefits provided to you under this Offer Letter or require you to make other arrangements satisfactory to the Company to enable it to satisfy all such withholding requirements.

		
	(f)
	Governing Law; Waiver of Jury Trial.  All matters affecting this Offer Letter, including the validity thereof, are to be governed by, and interpreted and construed in accordance with, the laws of the State of New Jersey applicable to contracts executed in and to be performed in that State.  YOU AND THE COMPANY HEREBY ACKNOWLEDGE AND AGREE THAT YOU AND THE COMPANY ARE HEREBY WAIVING ANY RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER YOU OR THE COMPANY AGAINST THE OTHER IN CONNECTION WITH ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS OFFER LETTER. Disputes regarding your application for employment, employment, or termination of employment will be subject to the attached Arbitration Agreement.

		
	(g)
	Remedies.  In addition to all other legal and equitable remedies, the prevailing party in any dispute that in any way relates to this Offer Letter or your employment hereunder shall be entitled to recover his or its reasonable attorneys’ fees and expenses incurred in connection with such dispute.

United States law requires all companies to verify an employee's authorization to work in the United States.  If you accept this offer, you will need to bring certain documents with you on your Commencement Date which allows the Company to verify your work authorization.  Enclosed is an Employment Eligibility Verification (form I-9).  Please review the form and bring the appropriate documents required for employment verification on your Commencement Date.  You will be asked to complete the form in the presence of a witness on your Commencement Date.

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If these terms are agreeable to you, please sign and date the Offer Letter in the appropriate space at the bottom and return it to me by Monday, March 30, 2015.   

We are excited at the prospect of you joining the Company, and look forward to your future contributions.    

Sincerely,

/s/ Michael Porta

Michael Porta
Vice President Human Resources

Agreed and Accepted:

Name: ____/s/ Ted Gilvar ________________
                                        Ted Gilvar

Date:   ______________________________

8AMTD_2015.3.31_EX10.1

	
		
	Offer Summary: Stephen J. Boyle (“Executive”)
Certain capitalized terms used in this Term Sheet have the meanings set forth in Schedule A
	

	March 25, 2015

	
					
	Name:
	Stephen J. Boyle

	Position:
	EVP Finance, effective July 1, 2015
EVP, Chief Financial Officer (including Treasury/ALM), effective October 1, 2015

	Effective Date:
	July 1, 2015

	TDA FY 2015 Target Compensation:
	$1,750,000
•    Base Salary: $400,000
•    MIP Cash Incentive: $675,000 
•    MIP Equity Incentive: $675,000

	Divestiture of TDBG Equity, Buyout and Outstanding Holding Summary:
	One-Time RSU Award: $3,000,000
•    3 year cliff vested RSUs to be granted October 2015

	Unvested
Performance
Shares (1,2)
	CAD $2,000,000
(USD $1,800,000)
	Forfeited and included in one-time RSU award
	 

	Unvested Stock
Options (2,3)
	CAD $926,500
(USD $750,000)
	Forfeited and included in one-time RSU award

	Vested Stock
Options (3)
	CAD $932,000
	Remain outstanding and exercisable per the terms of the existing grant agreements

	Deferred Share
Units
	CAD $1,300,000
	Lump sum to be distributed in 2015 as break in service triggered
• Per Plan provisions, lump sum distribution to occur
   approximately 3 months after separation

	TD Banknorth SERP
	USD $207,000
	Lump sum to be distributed in 11-2016 as scheduled
• Later of 55 (11-2016) or 6 months following
   separation

	TD Banknorth
Deferred
Compensation Plan
	USD $5,700,000
	Lump sum to be distributed in 2016 as break in service triggered
• Per Plan provisions, lump sum distribution to occur
   approximately 6 months after separation

	 
	 

	Monthly Housing Allowance:
	For a one bedroom work apartment.  Reimbursements grossed-up for taxes at TD Ameritrade’s expense

	Vacation:
	200 hours of Paid Time Off annually to accrue in accordance with TD Ameritrade PTO Accrual Schedule

	Share Ownership Guidelines:
	5 times base salary ($2,000,000)

	Retirement Programs:
	TD Ameritrade 401(k) and Profit Sharing Plan

	Health and Welfare Plans:
	TD Ameritrade Benefits Plan coverage 
•    Annual executive physical   

	Deferred Compensation Plan:
	TD Ameritrade Executive Deferred Compensation Plan
•    Permits MIP cash and equity incentive to be deferred into AMTD stock

1

	
		
	TD Ameritrade Service Date:
	February 18, 1997
•    18 years of service with TD Bank Group recognized as if it were TD Ameritrade service

	Termination / 
Change-In-Control:
	In the event of (i) termination by the Company without Cause; (ii) or termination in connection with a Change of Control, Mr. Boyle will be entitled to severance benefits as follows, subject to execution of Separation and Release of Claims Agreement:
•    4 weeks of base salary for each completed year of service up to a maximum of 104 weeks (2 years)
•    4 weeks of target cash incentive for each completed year of service up to a maximum of 104 weeks (2 years)
•    Pro-rata vesting of all outstanding RSUs in the event of (i), or immediate full vesting in the event of (ii) 
•    COBRA coverage for 18 months; employer portion of premiums paid by TD Ameritrade for first 12 months 

If the Company reasonably determines that Code Section 409A will result in the imposition of additional tax to an earlier payment of any severance or other benefits otherwise due to Executive on or within the 6 month period following Executive’s termination, the severance benefits will accrue during such 6 month period and will become payable in a lump sum payment on the date 6 months and 1 day following the date of Executive’s termination.  All subsequent payments, if any, will be payable as provided above.  Any severance payments will be subject to applicable withholdings.   

		
	Other Agreements:
	All terms of the Associate Agreement dated March 25, 2015 by and between Executive and TD Ameritrade are hereby incorporated by reference.    

		
	Continuing Obligations:
	Executive to remain bound by obligations of Non-Competition and Non-Solicitation for the 24 month period following termination of employment for any reason.

Nothing herein is intended to alter the “at-will” nature of Executive’s employment.  However, as described in this Offer Summary, Executive may be entitled to severance benefits depending on the circumstances of Executive’s termination of employment.
    
	
							
	AGREED AND ACCEPTED:
	Stephen J. Boyle
	 
	 
	Fred Tomczyk
	 
	 

	 
	 
	 
	 
	President & CEO
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	/s/ STEPHEN J. BOYLE
	 
	 
	/s/ FRED TOMCZYK
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	Date
	 
	 
	Date
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	March 25, 2015
	 
	 
	March 25, 2015
	 
	 

	 
	 
	 
	 
	 
	 
	 

*       All amounts in USD unless otherwise noted

		
	1)
	Unvested performance shares assume a performance factor of 100% and a TD Bank share price of CAD $54.63.  Outstanding PSUs cliff vest after 3 years

		
	2)
	Fx Rate: USD $1.00 = CAD $1.25

		
	3)
	Stock options shown using In-the-Money valuation and a TD Bank share price of CAD $54.63. Outstanding stock options cliff vest after 4 years

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Schedule A

CERTAIN DEFINITIONS

As used in this Term Sheet, and unless the context requires a different meaning, the following terms, when capitalized, have the meaning indicated:

“Base Salary” means Executive’s annual rate of base salary during the Term.

“Cause” means (i) the failure by Executive to substantially perform his duties, other than due to illness, injury or disability, which failure continues for ten days following receipt of notice from the Company specifying such failure; (ii) the willful engaging by the Executive in conduct which is materially injurious to the Company, monetarily or otherwise; (iii) misconduct involving serious moral turpitude to the extent that in the reasonable judgment of the Company, Executive’s credibility or reputation no longer conforms to the standard of the Company’s executives; or (iv) Executive’s breach of any restrictive covenants to which he is subject.

“Change in Control” means the occurrence of any of the following events:

(i)    A change in the ownership of the Company.  A change in the ownership of the Company will occur on the date that any one person, or more than one person acting as a group, acquires ownership of the Stock of the Company that, together with the Stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the Stock of the Company; provided, however, that for purposes of this subsection (i), the acquisition of additional Stock by any one person, or more than one person acting as a group, who is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the Stock of the Company shall not be considered a Change of Control; or

(ii)    A change in the effective control of the Company.  A change in the effective control of the Company shall occur on the date that: (1) the Board determines, in its sole and absolute discretion, that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of the Stock of the Company possessing up to fifty percent (50%) or more of the total voting power of the Stock of the Company, in each case whether such acquisition is by means of a tender offer, exchange offer, merger, business combination or otherwise; or (2) a majority of members of the Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board of Directors prior to the date of the appointment or election.  For purposes of this subsection (ii), if any one person, or more than one person acting as a group, is considered to effectively control the Company, the acquisition of additional control of the Company by the same person or persons shall not be considered a Change of Control; or

(iii)    A change in the ownership of a substantial portion of the Company’s assets.  A change in the ownership of a substantial portion of the Company’s assets shall occur on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following shall not constitute a change in the ownership of a substantial portion of the Company’s assets: (1) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer; or (2) a transfer of assets by the Company to: (A) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s Stock; (B) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company; (C) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding Stock of the Company; or (D) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly.  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

For purposes of this Section, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

Additionally, for purposes of this Section 2.1(f), notwithstanding any public disclosure to the contrary, TD and the R Parties (as such terms are defined in the Stockholders Agreement) together will not be considered to have formed a group solely as a result of being parties or bound by the Stockholders Agreement and any future actions, agreements or arrangements between TD and the R Parties outside of the rights and obligations set forth in the Stockholders Agreement shall be taken into account when considering whether TD and the R Parties shall have formed a group in the future.  

A “Change of Control” shall not be deemed to have occurred if the Company’s outstanding Shares or substantially all of the Company’s assets are purchased by TD Bank Group.

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

“Company” means TD Ameritrade Holding Corp. or any of its wholly-owned subsidiaries.

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Forfeiture Events.  The Administrator may specify in an award agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, fraud, breach of a fiduciary duty, restatement of financial statements as a result of fraud or willful errors or omissions, termination of employment for cause, violation of material Company and/or Subsidiary policies, breach of non-competition, confidentiality, or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company and/or its Subsidiaries.

“Good Reason” means (i) Executive no longer reports to CEO; (ii) Executive is no longer a member of the Senior Operating Committee and is not offered a position in any replacement committee of an equal level of responsibility; provided that, in either event at the Company’s discretion, the Executive remains employed for a minimum of three months from the date of notice of termination for Good Reason and assists in an orderly transition of duties.
 
“In Connection with a Change of Control” means a termination of Executive’s employment with the Company within 12 months following a Change of Control.

“Non-Competition” means that, for a period of 24 months following termination of Executive’s employment for any reason, Executive will not (without the Company’s express consent) engage or participate in any business within the United States (as an owner, partner, stockholder, holder of any other equity interest, or financially as an investor or lender, or in any capacity calling for the rendition of personal services or acts of management, operation or control) which is engaged in any activities and for any business competitive with any of the primary businesses conducted by the Company or any of its Affiliates.  The term “primary businesses” is defined as an on-line brokerage business, including active trader and long term investor client segments, and RIA custodial business, and also includes any such other business formally proposed to be conducted by the Company during the 24 month period prior to Executive’s date of termination (collectively a “Competitive Business”).  Provided that this restriction will not restrict Executive from being employed by or consulting with a business, firm, corporation, partnership or other entity that owns or operates an on-line brokerage, provided that (i) the on-line brokerage business is de minimus as compared to its core business in terms of revenue and/or resources, and (ii) Executive’s involvement with the company excludes, directly or indirectly, the on-line brokerage business during the 24 month non-competition period.    

“Non-Disclosure of Confidential Information”, “Rights to Work Product”  and “Non-Solicitation” shall have the meanings set forth in the Associate agreement.

“Stock” means the common stock of the Company, or in the case of certain Stock Appreciation Rights or Performance Units, the cash equivalent thereof.

“Stockholders Agreement” means the certain Stockholders Agreement among Ameritrade Holding Corporation, the stockholders listed on Exhibit A thereto and The Toronto-Dominion Bank dated as of June 22, 2005, as amended.

In the event that any provisions of this Schedule should ever be deemed to exceed the time, geographic or occupational limitations permitted by applicable laws, then such provisions will and are hereby reformed to the maximum time, geographic or occupational limitations permitted by applicable law

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