TD AMERITRADE HOLDING CORPORATION RESTRICTED STOCK UNIT AGREEMENT
TD AMERITRADE HOLDING CORPORATION
TD AMERITRADE Holding Corporation (the “Company”) hereby grants you, [ ] (the
“Grantee”), the number of Restricted Stock Units indicated below under the Company’s 1996 Directors
Incentive Plan (the “Plan”). The date of this Agreement is ___, 20___(the “Grant Date”).
Subject to the provisions of Appendix A (attached) and of the Plan, the principal features of this
grant are as follows:
Grant Date:
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[Date] | |
Total Number of Restricted Stock Units:
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[Number] This reflects the total number of units granted to you on the Grant Date.* |
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Scheduled Vesting:
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The Restricted Stock Units will vest in accordance with the schedule set forth in Appendix B (attached), subject to your continuing to be a Non-Employee Director through the applicable vesting date(s). | |
Settlement Date:
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One Share of Company Stock will be issued for each Restricted Stock Unit that has vested on the date specified in Appendix B (or on a date as soon as practicable thereafter). | |
Acceptance:
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You must accept this grant of Restricted Stock Units prior to the Acceptance Deadline, which is sixty (60) days from the Grant Date. |
* Except as otherwise provided in this Agreement, or by the terms of the Plan, you will not
vest in the Restricted Stock Units unless you remain a Non-Employee Director of the Company through
the applicable vesting date(s).
Your signature below indicates your agreement and understanding that this grant is subject to
all of the terms and conditions contained in the Plan and this Agreement, including Appendix A and
Appendix B. Important additional information on vesting, forfeiture and the actual issuance of the
Shares of Company Stock in settlement of the Restricted Stock Units covered by this grant are
contained in paragraphs 4 through 13 of Appendix A. PLEASE BE SURE TO READ ALL OF APPENDIX A AND
APPENDIX B, WHICH CONTAIN THE SPECIFIC TERMS AND CONDITIONS OF THIS AGREEMENT.
THIS AGREEMENT MUST BE ACCEPTABLE BY YOU BY THE ACCEPTANCE DEADLINE, OR THIS GRANT OF
RESTRICTED STOCK UNITS WILL AUTOMATICALLY BE CANCELED.
TD AMERITRADE HOLDING CORPORATION |
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By: |
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Title: |
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ACCEPTED BY THE GRANTEE |
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| Acceptance Date (must be within sixty (60) days of the Grant Date) | ||
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APPENDIX A
TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS
1. Grant. The Company hereby grants to the Grantee under the Plan at the per share
price of $.01, equal to the par value of a Share, the number of Restricted Stock Units indicated in
the Notice of Grant, subject to all of the terms and conditions in this Agreement and the Plan.
2. No Payment of Purchase Price Necessary. When the Restricted Stock Units are paid
out to the Grantee, the par value of the underlying Company Stock will be deemed paid by the
Grantee for each Restricted Stock Unit through the past services rendered by the Grantee.
3. Company’s Obligation to Pay. Each Restricted Stock Unit represents a right to
receive, on the Settlement Date, one Share of Company Stock for each vested Restricted Stock Unit.
Unless and until the Restricted Stock Units have vested in the manner set forth in paragraphs 4 or
5, the Grantee will have no right to the payment of such Restricted Stock Units. Prior to actual
payment of any vested Restricted Stock Units, such Restricted Stock Units will represent an
unsecured obligation. Payment of any vested Restricted Stock Units will be made in Shares.
4. Vesting Schedule. Except as otherwise provided in paragraph 5 of this Agreement,
the Restricted Stock Units awarded by this Agreement are scheduled to vest in accordance with the
vesting schedule set forth in Appendix B. Restricted Stock Units scheduled to vest on any
applicable date actually will vest only if the Grantee continues to be a Non-Employee Director
through such date.
5. Committee Discretion. The Committee, in its discretion, may accelerate the vesting
of the balance, or some lesser portion of the balance, of the Restricted Stock Units at any time,
subject to the terms of the Plan. If so accelerated, such Restricted Stock Units will be
considered as having vested as of the date specified by the Committee. If the Committee, in its
discretion, accelerates the vesting of the balance, or some lesser portion of the balance, of the
Restricted Stock Units, the payment of such accelerated Restricted Stock Units nevertheless shall
be made, unless otherwise determined by the Committee to be permissible under Applicable Laws, on
the Settlement Date set forth in the Notice of Grant (whether or not the Grantee remains a
Non-Employee Director through such date).
6. Issuance of Shares after Vesting. Any Restricted Stock Units that vest in
accordance with paragraph 4 will be settled by the Company through the issuance of Shares to the
Grantee (or in the event of the Grantee’s death, to his or her estate) as soon as practicable
following the Settlement Date, subject to paragraph 12. Any Restricted Stock Units that vest in
accordance with paragraph 5 will be settled by the Company through the issuance of Shares to the
Grantee (or in the event of the Grantee’s death, to his or her estate) in accordance with the
provision of such paragraph, subject to paragraph 12. Notwithstanding anything to the contrary in
this Agreement, the Company may also authorize, in conjunction with the terms of the Plan or any
other applicable Company deferred
compensation plan, that the receipt of Stock subject to any Restricted Stock Unit, may be
deferred under the terms and conditions of the Plan or any such other Company deferred compensation
plan.
7. Forfeiture. Other than as provided in paragraphs 8 through 10, and notwithstanding
any contrary provision of this Agreement, the balance of the Restricted Stock Units that have not
vested pursuant to paragraphs 4 or 5 at the time the Grantee ceases to be a Non-Employee Director
will be forfeited and automatically transferred to and reacquired by the Company at no cost to the
Company. The Grantee shall not be entitled to a refund of the price paid for the Restricted Stock
Units forfeited to the Company pursuant to this paragraph 7.
8. Death of Grantee. In the event that the Grantee ceases to be a Non-Employee
Director due to his or her death prior to the Settlement Date, the Restricted Stock Units will vest
and be settled by the Company through the issuance of Shares to the administrator or executor of
the Grantee’s estate, on a date as soon as practicable after the date of the Grantee’s death. The
Company may require any administrator or executor of the Grantee’s estate to furnish (a) written
notice of his or her status as transferee, or (b) evidence satisfactory to the Company to establish
the validity of the transfer and compliance with Applicable Laws pertaining to the transfer of the
Restricted Stock Units.
9. Disability of Grantee. In the event that the Grantee ceases to be a Non-Employee
Director due to his or her Disability prior to the Settlement Date, the Restricted Stock Units will
continue to vest pursuant to paragraph 4 and be settled by the Company through the issuance of
Shares to the Grantee, regardless of whether or not the Grantee is then providing services to the
Company, on the Settlement Date.
10. Change in Control. In the event that a Change in Control occurs prior to the
Settlement Date, the Restricted Stock Units will vest and be settled by the Company through the
issuance of Shares on a date as soon as practicable after the effective date of the Change in
Control.
11. Non-solicitation and Non-competition. The receipt of any Shares of Company Stock
pursuant to this Restricted Stock Units award will be subject to the Grantee, for the period of his
or her service as a Non-Employee Director with the Company and for a period of one year after the
termination of his or her service with the Company, not: (i) soliciting any employee of the Company
for employment with any employer other than the Company, or (ii) directly or indirectly engaging
in, having any ownership interest in or participating in any entity that as of the date of
termination, competes with the Company in any substantial business of the Company or any business
reasonably expected to become a substantial business of the Company. To the extent the Grantee has
violated any term and condition of this paragraph 11, the Restricted Stock Units prior to
settlement shall be forfeited pursuant to paragraph 7 and if Shares of Company Stock have already
been issued to the Grantee, then the Grantee shall be required to either return the Shares to the
Company or forfeit any gain recognized by the Grantee from the sale of such Shares.
12. Withholding of Taxes. When the Shares are issued as payment for vested Restricted
Stock Units, the Grantee will recognize immediate U.S. taxable income if the Grantee is a U.S.
taxpayer. If the Grantee is a non-U.S. taxpayer, the Grantee will be subject to applicable taxes
in his or her jurisdiction. If the Company is obligated at the time of the issuance of the Shares
to withhold
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taxes on behalf of such income recognized by the Grantee (for example if the Grantee has
become an Employee of the Company after the Grant Date and prior to the Settlement Date, or if
changes in Applicable Laws require such withholding), the Company reserves the right to withhold a
portion of the Shares otherwise issuable in payment for vested Restricted Stock Units that have an
aggregate market value sufficient to pay any applicable minimum federal, state and local income,
employment and any other applicable taxes required to be withheld by the Company with respect to
the Shares. No fractional Shares will be withheld or issued pursuant to the grant of Restricted
Stock Units and the issuance of Shares thereunder. The Company may instead, in its discretion,
withhold an amount necessary to pay the applicable taxes from the Grantee’s Non-Employee Director
compensation or other amounts payable to the Grantee, with no withholding of Shares. In the event
that any applicable withholding requirements are not satisfied through the withholding of Shares
(or, through the Grantee’s compensation or other amounts payable to the Grantee, as indicated
above), no Shares will be issued to the Grantee (or his or her estate) in settlement of the
Restricted Stock Units unless and until satisfactory arrangements (as determined by the Committee)
have been made by the Grantee with respect to the payment of any applicable taxes which the Company
determines must be withheld or collected with respect to such Restricted Stock Units. By accepting
this Award, the Grantee expressly consents to the withholding of Shares and to any cash or Share
withholding as provided for in this paragraph 12. All income and other taxes related to the
Restricted Stock Unit award and any Shares delivered in payment thereof are the sole responsibility
of the Grantee.
13. Rights as Stockholder. Neither the Grantee nor any person claiming under or
through the Grantee shall have any of the rights or privileges of a stockholder of the Company in
respect of any Shares deliverable hereunder unless and until certificates representing such Shares
(which may be in book entry form) shall have been issued, recorded on the records of the Company or
its transfer agents or registrars, and delivered to the Grantee (including through electronic
delivery to a brokerage account) after the Settlement Date. Notwithstanding any contrary
provisions in this Agreement, any quarterly or other regular, periodic dividends or distributions
(as determined by the Company) paid on Shares will affect neither unvested Restricted Stock Units
nor Restricted Stock Units that are vested but unpaid, and no such dividends or other distributions
will be paid on Restricted Stock Units nor Restricted Stock Units that are vested but unpaid.
After such issuance, recordation and delivery, the Grantee will have all the rights of a
stockholder of the Company with respect to voting such Shares and receipt of dividends and
distributions on such Shares.
14. No Effect on Service. The Grantee acknowledges and agrees that this Agreement and
the transactions contemplated hereunder do not constitute an express or implied promise of
continued service for any period, or at all, and shall not interfere with the Grantee’s right or
the Company’s right to terminate the Grantee’s relationship at any time, with or without cause.
15. Address for Notices. Any notice to be given to the Company under the terms of
this Agreement shall be addressed to the Company, in care of its General Counsel, at 0000 Xxxxxxxx
Xxxxxxx Xxxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxxx 00000, or at such other address as the Company may
hereafter designate in writing.
16. Grant is Not Transferable. Except to the limited extent provided in paragraph 8
above, this grant and the rights and privileges conferred hereby shall not be transferred,
assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall
not be
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subject to sale under execution, attachment or similar process. Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this grant, or of any right or privilege
conferred hereby, or upon any attempted sale under any execution, attachment or similar process,
this grant and the rights and privileges conferred hereby immediately shall become null and void.
17. Restrictions on Sale of Stock. The Shares issued as settlement for the payment
for any vested Restricted Stock Units awarded under this Agreement will be registered under the
federal securities laws and will be freely tradable upon receipt. However, the Grantee’s
subsequent sale of the Shares will be subject to any market blackout-period that may be imposed by
the Company and must comply with the Company’s xxxxxxx xxxxxxx policies, and any other applicable
securities laws. In addition, the Shares issued as settlement for the payment of any vested
Restricted Stock Units awarded under this Agreement will also be subject to any applicable
ownership guidelines and Stock ownership holding periods which may be currently in effect under the
Company’s Trading Policy.
18. Binding Agreement. Subject to the limitation on the transferability of this grant
contained herein, this Agreement shall be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto.
19. Conditions for Issuance of Certificates for Stock. The shares of stock
deliverable to the Grantee may be either previously authorized but unissued shares or issued shares
which have been reacquired by the Company. The Company shall not be required to issue any
certificate or certificates for Shares hereunder prior to fulfillment of all the following
conditions: (a) the admission of such Shares to listing on all stock exchanges on which such class
of stock is then listed; and (b) the completion of any registration or other qualification of such
Shares under any state or federal law or under the rulings or regulations of the Securities and
Exchange Commission or any other governmental regulatory body, which the Committee shall, in its
absolute discretion, deem necessary or advisable; and (c) the obtaining of any approval or other
clearance from any state or federal governmental agency, which the Committee shall, in its absolute
discretion, determine to be necessary or advisable; and (d) the lapse of such reasonable period of
time following the date of vesting of the Restricted Stock Units as the Committee may establish
from time to time for reasons of administrative convenience.
20. Plan Governs. This Agreement is subject to all terms and provisions of the Plan.
In the event of a conflict between one or more provisions of this Agreement and one or more
provisions of the Plan, the provisions of the Plan shall govern. Capitalized terms used and not
defined in this Agreement shall have the meaning set forth in the Plan.
21. Committee Authority. The Committee shall have the power to interpret the Plan and
this Agreement and to adopt such rules for the administration, interpretation and application of
the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not
limited to, the determination of whether or not any Restricted Stock Units have vested). All
actions taken and all interpretations and determinations made by the Committee shall be final and
binding upon the Grantee, the Company and all other persons. The Committee shall not be personally
liable for any action, determination or interpretation made in good faith with respect to the Plan
or this Agreement.
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22. Captions. Captions provided herein are for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.
23. Agreement Severable. In the event that any provision in this Agreement shall be
held invalid or unenforceable, such provision shall be severable from, and such invalidity or
unenforceability shall not be construed to have any effect on, the remaining provisions of this
Agreement.
24. Entire Agreement. This Agreement constitutes the entire understanding of the
parties on the subjects covered. The Grantee expressly warrants that he or she is not executing
this Agreement in reliance on any promises, representations, or inducements other than those
contained herein.
25. Modifications to the Agreement. The Grantee expressly warrants that he or she is
not accepting this Agreement in reliance on any promises, representations, or inducements other
than those contained herein. Modifications to this Agreement or the Plan can be made only in an
express written contract executed by a duly authorized officer of the Company. Notwithstanding
anything to the contrary in the Plan or this Agreement, the Company reserves the right to revise
this Agreement as it deems necessary or advisable, in its sole discretion and without the consent
of the Grantee, to comply with Section 409A of the Code or to otherwise avoid imposition of any
additional tax or income recognition under Section 409A of the Code prior to the actual payment of
Shares pursuant to this award of Restricted Stock Units.
26. Amendment, Suspension or Termination of the Plan. By accepting this award, the
Grantee expressly warrants that he or she has a right to receive stock under, and subject to the
terms and conditions of, the Plan and this Agreement, and has received, read and understood the
Plan and this Agreement. The Grantee understands that the Plan is discretionary in nature and may
be modified, suspended or terminated by the Company at any time.
27. Notice of Governing Law. This grant of Restricted Stock Units shall be governed
by, and construed in accordance with, the laws of the State of Nebraska without regard to
principles of conflict of laws.
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VESTING SCHEDULE AND SETTLEMENT DATE
OF RESTRICTED STOCK UNITS
OF RESTRICTED STOCK UNITS
The vesting of the Restricted Stock Units subject to this award shall be determined based on
the following schedule:
[vesting schedule]
The Settlement Date, when the vested Restricted Stock Units, if any, will be settled by
issuing Shares of Company Stock to the Grantee shall be, unless otherwise deferred pursuant to
Section 6 of this Agreement, on the first date as soon as reasonably practicable following the
third anniversary of the Grant Date. However, if the Grantee terminates service as a Non-Employee
Director prior to the third anniversary of the Grant Date, the Restricted Stock Units, to the
extent vested on the date of such termination of service, shall be settled by the Company issuing
Shares of Company Stock to the Grantee as soon as reasonably practicable after such termination.
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