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Exhibit 10.2 FIRSTMERIT CORPORATION DIRECTOR DEFERRED
COMPENSATION PLAN Amended and Restated Effective as of
December 15, 2008
TABLE OF CONTENTS
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PAGE
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ARTICLE 1—PURPOSES
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1
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ARTICLE II—DEFINITIONS
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1
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2.1 Accounts
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1
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2.2 Affiliates
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1
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2.3 Aggregated Plan
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1
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2.4 Asset Account
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1
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2.5 Beneficiary
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2
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2.6 Board
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2
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2.7 Business Day
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2
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2.8 Cash Account
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2
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2.9 Closing Price
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2
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2.10 Code
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2
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2.11 Committee
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2
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2.12 Common Stock
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2
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2.13 Compensation
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2
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2.14 Corporation
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3
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2.15 Deferral Election
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3
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2.16 Director
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3
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2.17 Exchange Act
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3
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2.18 Investment Fund
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3
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2.19 Participant
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3
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2.20 Participation Agreement
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3
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2.21 Plan
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3
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2.22 Plan Year
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3
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2.23 Reamortization Date
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4
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2.24 Separation from Service
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4
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2.25 Stated Interest Rate
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4
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2.26 Stock Account
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4
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2.27 Stock Credit
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4
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2.28 Valuation Date
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4
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ARTICLE III—PARTICIPATION IN THE PLAN
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4
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3.1 Eligibility
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4
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3.2 Participation
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4
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3.3 Initial Year of Eligibility
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5
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3.4 Deferral Elections
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5
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ARTICLE IV—ACCOUNTS
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5
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4.1 Crediting Accounts
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5
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4.2 Cash Account
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5
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4.3 Stock Account
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5
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(i)
TABLE OF CONTENTS
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PAGE
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4.4 Asset Account
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6
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4.5 Transfers Among Investment Funds and Between Accounts
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6
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ARTICLE V—DISTRIBUTIONS
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8
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5.1 Distributions upon Separation from Service (Other Than
Death)
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8
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5.2 Distributions from Cash Accounts and Asset Accounts
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8
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5.3 Distributions from Stock Accounts
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8
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5.4 Small Accounts
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9
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5.5 In-Service Distributions
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9
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5.6 Accelerated Distribution
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10
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5.7 Distribution upon Death
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11
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ARTICLE VI—BENEFICIARY DESIGNATION
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11
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6.1 Beneficiary Designation
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11
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6.2 Amendments
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11
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6.3 No Beneficiary Designation or Death of Beneficiary
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11
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6.4 Effect of Payment
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12
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ARTICLE VII—THE COMMITTEE
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12
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7.1 Authority
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12
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7.2 Elections, Notices
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12
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7.3 Agents
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12
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7.4 Binding Effect of Decisions
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12
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7.5 Indemnity of Committee
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12
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ARTICLE VIII—SHARES AVAILABLE
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12
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8.1 Number
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12
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8.2 Adjustments
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13
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ARTICLE IX—MISCELLANEOUS
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13
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9.1 Unfunded Plan
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13
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9.2 Non-alienation of Benefits
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13
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9.3 Invalidity
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14
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9.4 Governing Law
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14
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9.5 Amendment, Modification and Termination of the Plan
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14
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9.6 Successors and Heirs
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14
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9.7 Status as Shareholders
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14
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9.8 Rights
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14
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9.9 Use of Terms
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14
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9.10 Statement of Accounts
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15
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9.11 Compliance with Laws
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15
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9.12 Plan Construction
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15
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(ii)
TABLE OF CONTENTS
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PAGE
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9.13 Headings Not Part of Plan
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15
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9.14 Extension of Plan to Affiliates
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15
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ARTICLE X—CODE SECTION 409A
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15
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10.1 Compliance with Code Section 409A
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15
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10.2 Payments Upon Income Inclusion Under Code
Section 409A
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16
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(iii)
FIRSTMERIT CORPORATION DIRECTOR DEFERRED COMPENSATION PLAN
AMENDED AND RESTATED AS OF DECEMBER 15, 2008
This Plan is hereby amended and
restated as of December 15, 2008 in order to comply with the
requirements of Code Section 409A, to increase the number of
shares of Common Stock available for issuance under the Plan and to
combine into a single plan the FirstMerit Corporation Director
Deferred Compensation Cash Plan and the FirstMerit Corporation
Director Deferred Compensation Stock Plan, both of which were
effective as of January 1, 2001. ARTICLE 1—PURPOSES
The purposes of the Plan are
(i) to provide Directors with flexibility with respect to the
form and timing of the payment of Compensation, (ii) to more
closely align the interests of Directors with the interests of the
Corporation’s shareholders, and (iii) to assist the
Corporation and its Affiliates in attracting and retaining
qualified individuals to serve as Directors. ARTICLE
II—DEFINITIONS Whenever used in
the Plan, the following terms shall have the meaning set forth or
referenced below: 2.1 Accounts
"Accounts" means a
Participant’s Cash Accounts, Stock Accounts and Asset
Accounts. 2.2 Affiliates "Affiliates"
means affiliated or subsidiary entities of the Corporation as
defined in Code Sections 414(b) and (c). An Affiliate may elect to
participate in the Plan and the Board may approve such election in
its sole discretion. 2.3 Aggregated Plan
"Aggregated Plan" means any
agreement, method, program or other arrangement that, along with
the Plan, would be treated as a single nonqualified deferred
compensation plan under Code Section 409A. 2.4 Asset Account
"Asset Account" means the
sub-account(s) maintained by the Committee in the name of a
Participant pursuant to Section 4.4.
PAGE 1 - DIRECTOR DEFERRED COMPENSATION PLAN
2.5 Beneficiary "Beneficiary"
means the person, persons, or entity (including without limitation
any trustee) last designated by the Participant to receive benefits
specified hereunder in the event of the Participant’s death.
2.6 Board "Board" means the Board of
Directors of the Corporation. 2.7 Business Day
"Business Day" means a day, except
for a Saturday, Sunday, a legal holiday or a day when the primary
stock exchange on which the Common Stock is traded is not open. 2.8
Cash Account "Cash Account" means the
sub-account(s) maintained by the Committee in the name of a
Participant pursuant to Section 4.2. 2.9 Closing Price
"Closing Price" means the closing
price of the Common Stock as reported on the National Association
of Securities Dealers Automated Quotation System. 2.10 Code
"Code" means the Internal Revenue
Code of 1986, as amended, and including any rules or regulations
promulgated thereunder. 2.11 Committee
"Committee" means the Compensation
Committee of the Board. 2.12 Common Stock
"Common Stock" means the common
shares, no par value, of the Corporation. 2.13 Compensation
"Compensation" means all fees payable
to a Director for services to the Corporation and/or an Affiliate
as a director, including retainer fees for service on, and fees for
attendance at meetings of, the Board and any committees thereof, as
established by the Board from time to time, but excluding
reimbursements for expenses.
PAGE 2 - DIRECTOR DEFERRED COMPENSATION PLAN
2.14 Corporation "Corporation"
means FirstMerit Corporation, an Ohio corporation, and any
successor to the business thereto. 2.15 Deferral Election
"Deferral Election" means an
irrevocable annual election to defer Compensation and the
corresponding distribution elections, made by a Participant
pursuant to Articles III, IV and V and for which a Participation
Agreement has been submitted by the Participant to the Committee.
2.16 Director "Director" means any
individual serving on the Board or on the board of directors of an
Affiliate, who is not an employee of the Corporation or an
Affiliate, or any individual serving as a Community Board Advisor
(or like designation). 2.17 Exchange Act
"Exchange Act" means the Securities
Exchange Act of 1934, as amended. 2.18 Investment Fund
"Investment Fund" means an investment
fund in which Accounts may be deemed to be invested. An Investment
Fund may be any open-ended fund, closed-end fund, a fund which is
deemed to be invested in a particular stock or other investment
except Common Stock, or a fund which credits a fixed or variable
interest rate determined by the Committee. 2.19 Participant
"Participant" means a Director who
has made a Deferral Election, or a former Director who has an
Account. 2.20 Participation Agreement
"Participation Agreement" means the
agreement, whether written or provided through electronic means, to
make a Deferral Election, which, except as provided in
Section 3.3, must be submitted by a Director to the Committee
or its delegates prior to the Plan Year to which the Deferral
Election applies. 2.21 Plan "Plan"
means the FirstMerit Corporation Director Deferred Compensation
Plan, as amended from time to time. 2.22 Plan Year
"Plan Year" means the calendar
year.
PAGE 3 - DIRECTOR DEFERRED COMPENSATION PLAN
2.23 Reamortization Date
"Reamortization Date" means the date
on which benefit payments are recalculated to account for changes
in investment performance or interest rates. This date shall be the
last Business Day of October, effective on January 1 of the next
Plan Year. 2.24 Separation from Service
"Separation from Service" means the
Participant’s "separation from service" (as defined in Code
Section 409A) with the Corporation and all Affiliates. 2.25
Stated Interest Rate "Stated Interest
Rate" means, with respect to any calendar month, two
(2) percentage points over the average of the composite yield
on Moody’s Average Corporate Bond Yield for the month of
October immediately preceding the Plan Year as determined from
Moody’s Bond Record published by Moody’s Investors
Services, Inc. (or any successor thereto), or, if such monthly
yield is no longer published, a substantially similar average
selected by the Corporation. The Committee shall establish the
Stated Interest Rate effective as of January 1 of each Plan Year,
which, once established, shall be used for all interest
determinations during such Plan Year. 2.26 Stock Account
"Stock Account" means the
sub-account(s) maintained by the Committee in the name of a
Participant pursuant to Section 4.3. 2.27 Stock Credit
"Stock Credit" means a credit to a
Participant’s Stock Account, calculated pursuant to Section
4.3(b) of this Plan. 2.28 Valuation Date
"Valuation Date" means the last
Business Day of the month in which the Participant has a Separation
from Service or dies. ARTICLE III—PARTICIPATION IN THE PLAN
3.1 Eligibility All Directors of the
Company and a participating Affiliate shall be eligible to
participate in the Plan. 3.2 Participation
A Director may elect to participate
in the Plan each Plan Year by filing with the Committee a Deferral
Election in a Participation Agreement prior to January 1 of the
Plan Year in which Compensation is earned for services performed
during such Plan Year, except as set forth in Section 3.3 herein.
Such
PAGE 4 - DIRECTOR DEFERRED COMPENSATION PLAN
Deferral Election shall be irrevocable as of the
December 31 immediately preceding the Plan Year for which the
election is made and shall remain in effect for one (1) Plan
Year only. 3.3 Initial Year of Eligibility
An individual who becomes a Director
between January 1 and June 30 shall be eligible to participate
in the Plan on the July 1 immediately following the date he becomes
a Director. Such Director may elect to participate in the Plan by
filing with the Committee a Deferral Election in a Participation
Agreement no later than thirty (30) days after the date on
which the individual becomes a Director. Such Deferral Election
shall be applicable only with respect to Compensation for services
performed after the later of July 1 or the date such election is
made, and shall be irrevocable thirty (30) days after the date
on which the individual becomes a Director. Notwithstanding the
foregoing, this Section 3.3 shall not apply if, at the time
the individual becomes a Director, the individual also is eligible
to participate in any Aggregated Plan. 3.4 Deferral Elections
Except as provided in
Section 3.3, a Director may make a Deferral Election with
respect to Compensation earned for services performed during the
immediately succeeding Plan Year by filing a Participation
Agreement with the Committee pursuant to Section 3.2. The
amount to be deferred shall be stated as a whole percentage up to
one hundred percent (100%) of Compensation. ARTICLE
IV—ACCOUNTS 4.1 Crediting Accounts
A Director’s deferred
Compensation shall be credited to such Director’s Account(s)
as of the date such amount, absent the Deferral Election, would
otherwise have been paid to such Director. 4.2 Cash Account
(a) Establishing a Cash
Account. A Participant may elect to establish an annual Cash
Account which shall be maintained solely for recordkeeping purposes
pursuant to a Deferral Election. A Participant shall be one hundred
percent (100%) vested in his Cash Account at all times.
(b) Earnings. As of the last
day of each calendar month, the Participant’s Cash Account(s)
shall be credited with earnings equal to the product of the average
daily balance of the Cash Account(s) during such month (determined
after adjustment for any deferred Compensation credited thereto and
any amount distributed therefrom) and an interest rate equal to the
Stated Interest Rate. 4.3 Stock Account
(a) Establishing a Stock
Account. A Participant may elect to establish an annual Stock
Account which shall be maintained solely for recordkeeping purposes
pursuant to a Deferral Election. A Participant shall be one hundred
percent (100%) vested in his Stock Account(s) at all times.
PAGE 5 - DIRECTOR DEFERRED COMPENSATION PLAN
(b) Stock Credits. Each
Participant’s Stock Account shall be credited with Stock
Credits equal to the number of shares of Common Stock (including
fractions of a share) that could have been purchased with the
amount of such Compensation the Participant elected to allocate to
the Stock Account at the Closing Price on the day as of which such
Stock Account is so credited. (c)
Dividends. As of the date any cash dividend is paid to
holders of shares of Common Stock, a Participant’s Stock
Account(s) shall be credited with additional Stock Credits equal to
the number of shares of Common Stock (including fractions of a
share) that could have been purchased at the Closing Price on such
date with the amount that would have been paid as dividends on that
number of shares of Common Stock (including fractions of a share)
which is equal to the number of Stock Credits attributable to the
Participant’s Stock Account(s) as of the record date of such
dividend. In the case of dividends paid in shares of Common Stock,
the Participant’s Stock Account(s) shall be credited with
additional Stock Credits equal to the number of dividend shares
that would have been received with respect to that number of shares
of Common Stock (including fractions of a share) which is equal to
the number of Stock Credits attributable to the Participant’s
Stock Account(s) as of the record date of such dividend. 4.4 Asset
Account (a) Establishing an Asset
Account. With respect to each Plan Year commencing on or after
January 1, 2009, a Participant may elect to establish an
annual Asset Account, which shall be maintained solely for
recordkeeping purposes, pursuant to a Deferral Election allocation
to one (1) or more Investment Funds. A Participant shall be
one hundred percent (100%) vested in his Asset Account at all
times. (b) Selection of Investment
Funds. The Committee shall have sole discretion in the
selection, number and types of Investment Funds for this Plan and
may change or eliminate Investment Funds from time to time in its
sole discretion. (c) Investment
Fund Performance. The deemed earnings, gains and losses of each
Investment Fund shall be determined by the Committee, in its
reasonable discretion, based on the performance of the Investment
Funds themselves. The balance of a Participant’s Asset
Accounts shall be credited or debited on a daily basis based on the
performance of each Investment Fund in which a Participant’s
Asset Accounts are deemed to be invested, such performance and the
crediting of such performance being determined by the Committee in
its sole discretion. 4.5 Transfers Among Investment Funds and
Between Accounts (a) No
Transfers. No amount credited to any Stock Account or Cash
Account may be transferred and credited to any Investment Fund, and
no amount credited to an Investment Fund may be transferred and
credited to any Stock Account or Cash Account.
(b) Investment Funds. Any
amount credited to an Investment Fund may be transferred and
credited to any other Investment Fund at the direction of the
Participant. Any such direction from a Participant will become
effective as of the first day of the next month following the
Participant’s request for a change.
(c) Committee Procedures. The
Committee may establish such rules and procedures as it determines
to be appropriate for the crediting of deferrals and transfers to
Investment Funds, for
PAGE 6 - DIRECTOR DEFERRED COMPENSATION PLAN
transfers among Investment Funds
and for crediting deemed earnings, gains and losses of an
Investment Fund.
PAGE 7 - DIRECTOR DEFERRED COMPENSATION PLAN
ARTICLE V—DISTRIBUTIONS 5.1 Distributions upon Separation
from Service (Other Than Death) Upon
the Participant’s Separation from Service except due to
death, distribution of the Participant’s Account(s) shall be
made or commence in
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