LEGG MASON WOOD WALKER, INCORPORATED
FINANCIAL ADVISOR DEFERRED COMPENSATION PLAN
This document constitutes the Legg Mason Wood Walker, Incorporated Financial Advisor Deferred
Compensation Plan (the "Plan").
1. Purpose - The purpose of the Plan is to enhance the ability of Legg Mason Wood Walker, Incorporated (the
"Company") to attract and retain full-time financial advisors by providing for the payment of deferred bonus
2. Definitions - As used herein, the following definitions shall apply:
(a) "Account" means a Financial Advisor's combined Interest Account and Phantom Stock Account.
(b) "Committee" means the Legg Mason Wood Walker, Incorporated Financial Advisor Deferred Compensation
Plan Committee consisting of such members as the Company's President shall select from time to time.
(c) "Company" means Legg Mason Wood Walker, Incorporated.
(d) "Credit Interest Asset Base" means for each month, the product of (A) the product of (X) 0.0833 and (Y) the
sum of the average credit interest and Legg Mason money market fund balances of the FA for the month
(calculated by dividing the sum of the closing balances in the account for each day by the number of days in the
month), less the applicable threshold for that Plan Year as set forth in the FA Compensation Schedule, and (B)
0.001 (or the different number for the applicable Plan Year as is set forth in the FA Compensation Schedule).
(e) "Credit Interest Deferred Bonus" means the deferred bonus credited under Section 4(b) with respect to the
combined balance in credit interest accounts and Legg Mason money market fund accounts in excess of the
applicable threshold contained in the FA Compensation Schedule.
(f) "Credit Interest Rate" means the average of the twelve month end rates of the Company's credit interest rate
paid during a Plan Year to the Company's cash reinvestment accounts.
(g) "Deferred Bonus Commission" means the Production Deferred Bonus, the Credit Interest Deferred Bonus
and the 12b-1 Deferr