SECOND EXCESS CASH BALANCE PENSION PLAN
The KeyCorp Second Excess Cash Balance Pension Plan (Plan), as originally established
December 28, 2004 to be effective January 1, 2005 is hereby amended and restated as of that date.
The Plan, as structured, is designed to provide certain select employees of KeyCorp with a Plan
benefit that is generally equal to the benefit that the employee would have been eligible to
receive under the KeyCorp Cash Balance Pension Plan but for the compensation and accrual
limitations imposed by Section 401(a)(17) and Section 415 of the Internal Revenue Code of 1986, as
amended, when combined with any vested benefit provided to the employee under the KeyCorp Excess
Cash Balance Pension Plan. It is the intention of the Plan and it is the understanding of those
employees covered under the Plan that the Plan is unfunded for tax purposes and for purposes of
Title I of the Employee Retirement Income Security Act of 1974, as amended. It is also the
understanding of those employees covered under the Plan that the Plan will be administered in
accordance with the requirements of Section 409A of the Code.
2.1 Meanings of Definitions. As used herein, the following words and phrases shall
have the meanings hereinafter set forth, unless a different meaning is plainly required by the
||Beneficiary shall mean the person, persons or entity entitled to receive the
Participants Plan benefits, if any, that are payable after a Participants death.
||Credited Service shall be calculated by measuring the period of service
commencing on the Participants Employment Commencement Date and Re-Employment
Commencement Date, if applicable, and ending on the Participants Severance from
Service Date. Credited Service shall be computed based on each full month that the
Employee is employed by an Employer.
||Compensation of a Participant for any Plan Year or any partial Plan Year in
which the Participant incurs a Severance From Service Date shall mean the entire amount
of compensation paid to such Participant during such period by reason of his employment
as an Employee, as reported for federal income tax purposes, or which would have been
paid except for (1) the timing of an Employers payroll processing operations, (2) the
Participants written election to defer the receipt of compensation during the Plan
Year, (3) the provisions of the KeyCorp 401(k) Savings Plan, or (4) the provisions of
the KeyCorp Flexible Benefits Plan and/or any transportation reimbursement plan for the
applicable Plan year provided, however, the term shall not include:
||any amount attributable to the Participants exercise
of stock appreciation rights and the amount of any gain to the
Participant upon the exercise of stock options;
||any amount attributable to the Participants receipt of
non-cash remuneration whether or not it is included in the
Participants income for federal income tax purposes;
||any amount attributable to the Participants receipt of moving
expenses and any relocation bonus paid to the Participant during the Plan Year;
||any amount attributable to any severance paid by an
Employer or the Corporation to the Participant;
||any amount attributable to fringe benefits (cash and
||any amount attributable to any bonus or payment made as
an inducement for the Participant to accept employment with an
||any amount attributable to salary deferrals paid to
the Participant during the Plan Year, which have been previously
included as Compensation under the Plan during the Plan Year or any
prior Plan Year;
||any amount paid to the Participant during the Plan Year which is
attributable to interest earned on Compensation deferred under a plan
of an Employer or the Corporation; and
||any amount paid for any period after the Participants
Termination or Retirement date.
In determining a Participants Compensation under the provisions of this Section 2.1(c), for
those Plan Participants who participate in a line of business incentive plan (other than the
KeyCorp Annual Incentive Plan, the KeyCorp Long Term Incentive Plan and/or the KeyCorp Staff
Incentive Plan), compensation up to a Plan maximum of $500,000 minus the amount of the
Participants compensation utilized in computing his or her Pension Plan benefit in accordance with
Section 401(a)(17) of the Code shall be utilized in calculating the Participants benefit under the
For Plan Years beginning on and after January 1, 2006, only that Compensation which is in
excess of the compensation limits mandated under Section 401(a)(17) of the Code shall be utilized
in determining the Participants Excess Pension Benefit under the provisions of Section 3.2 of the
Plan. Notwithstanding the foregoing, however, if the Participant is in a benefits designator 85 or
below, then only that Compensation which is in excess of the compensation limits mandated under
Section 401(a)(17) of the Code up to a Plan Compensation maximum of $500,000 shall be utilized in
determining the Participants Excess Pension Benefit under the provisions of Section 3.2 hereof.
In the case of a Disabled Participant, such Participants Compensation for each year while
Disabled shall equal an amount which shall reflect the Participants Compensation for the calendar
year preceding the date of the Participants Disability.
(d) Corporation shall mean KeyCorp, an Ohio corporation, its corporate successors, and any
corporation or corporations into or with which it may be merged or consolidated.
(e) Disability shall mean (1) the physical or mental disability of a permanent nature which
prevents a Participant from performing the duties such Participant was employed to perform for his
or her Employer when such disability commenced, (2) qualifies for disability benefits under the
federal Social Security Act within 30 months following the Participants disability, and (3)
qualifies the Participant for disability coverage under the KeyCorp Long Term Disability Plan. In
addition to the foregoing, the disability requirements addressed in Section 409A of the Code are
incorporated into the provisions of this definition.
(f) Employee shall mean a common law employee who is employed by an Employer; provided,
however, the term Employee shall not include any person who at the time services are performed is
not classified as a common law employee by the Employer even though such person may for federal
income tax purposes, federal employment tax purposes, or any other purpose be reclassified by the
Employer as a common law employee retroactive to when such services were performed by reason of
administrative, judicial, regulatory or other governmental action.
(g) Employer shall mean KeyCorp and all of its subsidiaries or affiliates unless
specifically excluded as an Employer for Plan purposes by written action by an officer of the
Corporation. An Employers participation shall be subject to any and all conditions and
requirements made by the Corporation as the Plan Administrator, and each Employer shall be deemed
to have appointed the Plan Administrator as its exclusive agent under the Plan.
(h) Excess Pension Benefit shall mean the vested pension benefit payable pursuant to the
terms of this Plan to a Participant meeting the eligibility requirements of Section 3.1 of the
(i) Excess Pension Program Benefit shall mean the Participants collective nonqualified
pension benefit accrued under the KeyCorp Excess Cash Balance Pension Plan and KeyCorp Second
Excess Cash Balance Pension Plan, subject to the terms and conditions of each respective Plan.
(j) Executive Supplemental Pension Program Benefit shall mean the Participants collective
nonqualified pension benefit accrued under the KeyCorp Executive Supplemental Pension Plan and
KeyCorp Second Executive Supplemental Pension Plan, subject to the terms and conditions of each
(k) Interest Credit shall mean the rate at which a Participants Opening Account Balance, as
provided for under Section 3.3 of the Plan, is periodically increased on a bookkeeping basis. The
Interest Credit rate to be allocated to a Participants Opening Account Balance shall mirror the
Pension Plans Interest Credit rate for each applicable Plan Year..
(l) Participant shall mean an Employee who is a participant in the Pension Plan and who is
selected by the Corporation to become a Participant in the Plan, and whose participation in the
Plan has not been terminated by the Corporation.
(m) Pension Plan shall mean the KeyCorp Cash Balance Pension Plan, as the same shall be in
effect on the date of a Participants Retirement, death, Disability or other termination of
(n) Retirement shall mean the termination of employment of a Participant under circumstances
in which entitle the Participant to receive an Early Retirement or Normal Retirement Date benefit
under the KeyCorp Cash Balance Pension Plan.
(o) Supplemental Retirement Plan shall mean the KeyCorp Supplemental Retirement Plan
(formerly known as the Society Corporation Supplemental Retirement Plan), the KeyCorp Excess
Pension Benefit Plan, and the KeyCorp Excess Pension Benefit Plan for Key Executives, with all
amendments made thereto.
(p) Termination shall mean the voluntary or involuntary and permanent termination of a
Participants employment from his or her Employer and any other Employer, whether by resignation or
All other capitalized and undefined terms used herein shall have the meanings given them in
the Pension Plan, unless a different meaning is plainly required by the context.
The masculine gender includes the feminine, and singular references include the plural, unless
the context clearly requires otherwise.
EXCESS PENSION BENEFIT
3.1 Eligibility. A Participant selected by the Corporation to participate in the Plan
shall be eligible for an Excess Pension Benefit hereunder if the Participant (i) terminates
employment with an Employer on or after age 55 with five or more years of Credited Service, (ii)
terminates his or her active employment with an Employer in conjunction with his or her Disability
after completing five or more years of Credited Service and disability benefits have ceased under
the KeyCorp Long-Term Disability Plan due to the Participants election of an Early or Normal
Retirement under the Pension Plan, or (iii) dies after completing five years of Credited Service
and has a Beneficiary who is eligible for a benefit under the Pension Plan.
A Participant shall also be eligible for an Excess Pension Benefit if the Participant becomes
involuntarily terminated from his or her employment with an Employer for reasons other than the
Participants Discharge for Cause, and (i) as of the Participants termination date the Participant
has a minimum of twenty-five (25) or more years of Credited Service, and (ii) the Participant
enters into a written non-solicitation and non-compete agreement with the Employer under terms that
are satisfactory to the Employer.
For purposes of this Section 3.1, hereof, the term Discharge for Cause shall mean a
Participants employment termination that is the result of the Participants violation of the
Employers policies, practices or procedures, violation of city, state, or federal law, or failure
to perform his or her assigned job duties in a satisfactory manner. The Employer shall determine
whether a Participant has been Discharged for Cause.
Notwithstanding any of the forgoing provisions of this Section 3.1, however, a Participants
eligibility for an Excess Pension Benefit shall be subject to the requirements of Article V of the
3.2 Amount of Excess Pension Benefit. The Excess Pension Benefit payable to a
Participant shall be in such amount as is required, when added to the excess pension benefit
payable in lump sum form to the Participant under the KeyCorp Excess Cash Balance Pension Plan (if
any) and the Accrued Benefit payable in lump sum form to the Participant under the Pension Plan as
of the Participants Retirement or Termination date to produce a lump sum cash aggregate benefit
equal to the
benefit which would have been payable under the Pension Plan formula in lump sum form
to the Participant if the limitations of Section 401(a)(17) of the Code and the limitations of
Section 415 of the Code had not been in effect. For purposes of this Section 3.2 hereof, the term
Pension Plan formula means the method of calculating a Participants pension benefit as reflected
in Article IV of the Pension Plan and shall not include any Predecessor Plan Grandfathered Benefits
3.3 Opening Account Balance. Effective January 1, 2005, Participants in the frozen
KeyCorp Excess Cash Balance Pension Plan who as of December 31, 2004 were not vested in their
Excess Cash Balance Pension Plan benefit shall have their accrued but not vested benefit
transferred to this Plan and reflected in a bookkeeping opening account balance (Opening Account
Balance) established for the Participant. Such Opening Account Balance shall be credited with
Interest Credit as of the last day of each calendar quarter, based on the value of the
Participants Opening Account Balance as of the first day of the applicable quarter. A
Participants entitlement to this Opening Account Balance shall be governed by the eligibility
provisions of Section 3.1 of this Plan, and the value of the Opening Account Balance shall be added
to and become a part of such Participants Excess Pension Benefit, if any, which shall be payable
in accordance with the terms of this Plan. The establishment of the Participants Plan Opening
Account Balance shall terminate the Participants entitlement to any benefit under the frozen
KeyCorp Excess Cash Balance Pension Plan.
PAYMENT OF EXCESS PENSION BENEFIT
4.1 Immediate Payment Upon Termination or Retirement of Participant. Subject to the
provisions of Section 4.2, Section 4.4, and Section 4.5 hereof, a Participant meeting the age and
service eligibility requirements of Section 3.1 shall receive an immediate distribution of his or
her Excess Pension Benefit upon the Participants Termination date. Such Excess Pension Benefit
shall be paid in the form of a single life annuity, unless the Participant elects in writing, a
minimum of sixty days prior to the Participants Termination date to receive his or her
distribution under a different form of payment that is actuarially equivalent to the Participants
Excess Pension Benefit when paid as a single life annuity payment. The forms of payment from which
a Participant may elect shall be identical to those forms of payment provided under the Pension
Plan, provided however, that the lump sum payment option available under the Pension Plan shall not
be a form of distribution available under this Plan. Such payment method, once elected by the
Participant, shall be irrevocable.
In calculating the Participants actuarially equivalent form of distribution the Corporation
shall rely upon calculations made by independent actuaries for the Pension Plan, who shall apply
the actuarial assumptions and interest rate then in use under the Pension Plan for converting to
the form of payment elected by the Participant.
4.2 Forfeiture of Plan Benefits. Notwithstanding the any other provision of this
Article VI, however, if the Participant engages in any Harmful Activity prior to or within twelve
months of his or her Termination or Retirement date, then by operation of this Section 4.2 hereof
and without any further
notice to the Participant all further Excess Pension Benefits shall be immediately forfeited.
In the event that a Participant has received a distribution of his or her Excess Pension Benefit,
and the Participant engages in any Harmful Activity prior to or within twelve months of his or her
Termination or Retirement, then in such event the Participant shall repay to the Corporation the
full amount of such distributed Plan benefits within 60 days following the Participants receipt of
the Corporations notice of such Harmful Activity.
The foregoing restrictions shall not apply in the event that the Participants employment with
an Employer terminates within two years after a Change of Control if any of the following have
occurred: a relocation of the Participants principal place of employment more than 35 miles from
the Participants principal place of employment immediately prior to the Change of Control, a
reduction in the Participants base salary after a Change of Control, or termination of employment
under circumstances in which the Participant is entitled to severance benefits or salary
continuation or similar benefits under a change of control agreement, employment agreement, or
severance or separation pay plan.
The determination by the Corporation as to whether a Participant has engaged in a Harmful
Activity prior to or within twelve months after the Participants Termination or Retirement shall
be final and conclusive upon the Participant and upon all other Persons.
||For purposes of this Section 4.2, a Harmful Activity shall have occurred if the
Participant shall do any one or more of the following:
||Use, publish, sell, trade or otherwise disclose Non-Public Information of
KeyCorp unless such prohibited activity was inadvertent, done in good faith and did not
cause significant harm to KeyCorp.
||After notice from KeyCorp, fail to return to KeyCorp any document, data, or
thing in his or her possession or to which the Participant has access that may involve
Non-Public Information of KeyCorp.
||After notice from KeyCorp, fail to assign to KeyCorp all right, title, and
interest in and to any confidential or non-confidential Intellectual Property which the
Participant created, in whole or in part, during employment with KeyCorp, including,
without limitation, copyrights, trademarks, service marks, and patents in or to (or
associated with) such Intellectual Property.
||After notice from KeyCorp, fail to agree to do any acts and sign any document
reasonably requested by KeyCorp to assign and convey all right, title, and interest in
and to any confidential or non-confidential Intellectual Property which the Participant
created, in whole or in part, during employment with KeyCorp, including, without
limitation, the signing of patent applications and assignments thereof.
||Upon the Participants own behalf or upon behalf of any other person or entity
that competes or plans to compete with KeyCorp, solicit or entice for employment or
hire any KeyCorp employee.
||Upon the Participants own behalf or upon behalf of any other person or entity
that competes or plans to compete with KeyCorp, call upon, solicit, or do business with
(other than business which does not compete with any business conducted by KeyCorp)
any KeyCorp customer the Participant called upon, solicited, interacted with, or
became acquainted with, or learned of through access to information (whether or not
such information is or was non-public) while the Participant was employed at KeyCorp
unless such prohibited activity was inadvertent, done in good faith, and did not
involve a customer whom the Participant should have reasonably known was a customer
||Upon the Participants own behalf or upon behalf of any other person or entity
that competes or plans to compete with KeyCorp, after notice from KeyCorp, continue to
engage in any business activity in competition with KeyCorp in the same or a closely
related activity that the Participant was engaged in for KeyCorp during the one year
period prior to the termination of the Participants employment.
||For purposes of this Section 4.2 the term:
||Intellectual Property shall mean any invention, idea, product, method of
doing business, market or business plan, process, program, software,
formula, method, work of authorship, or other information, or thing relating
to KeyCorp or any of its businesses.
||Non-Public Information shall mean, but is not limited to, trade secrets,
confidential processes, programs, software, formulas, methods, business
information or plans, financial information, and listings of names (e.g.,
employees, customers, and suppliers) that are developed, owned, utilized, or
maintained by an employer such as KeyCorp, and that of its customers or
suppliers, and that are not generally known by the public.
||KeyCorp shall include KeyCorp, its subsidiaries, and its affiliates.
4.3 Payment Upon Death of Participant.
(a) Upon the death of a Participant who has met the service requirement of Section 3.1, but
who has not yet commenced distribution of his or her Excess Pension Benefit, there shall be paid to
the Participants Beneficiary the Excess Pension Benefit that the Participant would have been
entitled to receive had the Participant retired on his or her date of death and commenced
distribution of his or her Excess Pension Benefit. Such Excess Pension Benefit shall be paid in
the form of a single life annuity.
(b) In the event of a Participants death after the Participant has commenced distribution of
his or her Excess Pension Benefit, there shall be paid to the Participants Beneficiary only those
survivor benefits provided under the form of benefit payment elected by the Participant.
4.4 Distribution of Small Accounts. Notwithstanding any Plan provision other than
Section 4.5 hereof, if the value of a Participants vested Excess Pension Benefit as of the
Participants Termination date is under $50,000, such balance shall be distributed to the
Participant as a single lump sum distribution as soon as reasonably practicable following the
Participants Termination or Retirement date.
4.5 Payment Limitation for Key Employees. Notwithstanding any other provision of the
Plan to the contrary, in the event that the Participant constitutes a key employee of the
Corporation (as that term is defined in accordance with Section 416(i) of the Code without regard
to paragraph (5) thereof), distributions of the Participants Excess Pension Benefit may not be
made before the date which is six months after the Participants date of separation from service
(or, if earlier, the date of death of the Participant). The term separation from service shall
be defined for Plan purposes in accordance with the requirements of Section 409A of the Code and
applicable regulations issued thereunder.
DISTRIBUTION OF LARGEST PLAN BENEFIT
5.1 Distribution of Largest Plan Benefit. Unless otherwise previously elected by the
Participant, a Participant who meets the eligibility requirements for an Excess Pension Program
Benefit and who also meets the eligibility requirements for an Executive Supplemental Pension
Program Benefit, shall automatically be provided at the Participants Termination or Retirement the
larger of the two Program benefits (i.e. the greater of the Participants Excess Pension Program
Benefit or the Participants Executive Supplemental Pension Program Benefit).
In making the determination required under this Section 5.1 hereof, the Corporation shall rely
upon calculations made by independent actuaries for the Pension Plan, who shall apply the actuarial
assumptions and interest rate then in use under the Pension Plan for converting the Participants
Excess Pension Program Benefit to a single life annuity form of payment. The Participant
automatically shall receive the Program Benefit that provides the Participant with the largest
monthly single life annuity benefit.
5.2 Beneficiary Distribution of Largest Plan Benefit.
||Upon the death of a Participant meeting eligibility requirements for an Excess
Pension Program Benefit and the eligibility requirements for an Executive Supplemental
Pension Program Benefit there shall be paid to the Participants Beneficiary the larger
of the two Programs death benefit. Such death benefit shall be paid to the
Beneficiary in the form of a single life annuity.
||In the event of a Participants death after the Participant has commenced
distribution of his or her Plan benefit, there shall be paid to the Participants
Beneficiary only those survivor benefits provided under the form of benefit payment
elected by the Participant.
6.1 Administration. The Corporation, which shall be the Administrator of the Plan
for purposes of ERISA and the Plan Administrator for purposes of the Code, shall be responsible
for the general administration of the Plan, for carrying out the provisions hereof, and for making
payments hereunder. The Corporation shall have the sole and absolute discretionary authority and
power to carry out the provisions of the Plan, including, but not limited to, the authority and
power (a) to determine all
questions relating to the eligibility for and the amount of any benefit to be paid under the
Plan, (b) to determine all questions pertaining to claims for benefits and procedures for claim
review, (c) to resolve all other questions arising under the Plan, including any questions of
construction and/or interpretation, and (d) to take such further action as the Corporation deems
necessary or advisable in the administration of the Plan. All findings, decisions and
determinations of any kind made by the Plan Administrator shall not be disturbed unless the Plan
Administrator has acted in an arbitrary and capricious manner. Subject to the requirements of law,
the Plan Administrator shall be the sole judge of the standard of proof required in any claim for
benefits and in any determination of eligibility for a benefit. All decisions of the Plan
Administrator shall be final and binding on all parties. The Plan Administrator may employ such
attorneys, investment counsel, agents, and accountants as it may deem necessary or advisable to
in carrying out its duties hereunder. The actions taken and the decisions made by the
Plan Administrator hereunder shall be final and binding upon all interested parties subject,
however, to the provisions of Section 6.2. The Plan Year, for purposes of Plan administration,
shall be the calendar year.
6.2 Claims Review Procedure. Whenever the Plan Administrator decides for whatever
reason to deny, whether in whole or in part, a claim for benefits under the Plan filed by any
person (herein referred to as the Claimant), the Plan Administrator shall transmit a written
notice of its decision to the Claimant, which notice shall be written in a manner calculated to be
understood by the Claimant and shall contain a statement of the specific reasons for the denial of
the claim and a statement advising the Claimant that, within 60 days of the date on which the
Claimant receives such notice, Claimant may obtain review of the decision of the Plan Administrator
in accordance with the procedures hereinafter set forth. Within such 60-day period, the Claimant
or Claimants authorized representative may request that the claim denial be reviewed by filing
with the Plan Administrator a written request therefore, which request shall contain the following
||the date on which the request was filed with the Plan Administrator; provided,
however, that the date on which the request for review was in fact filed with the Plan
Administrator shall control in the event that the date of the actual filing is later
than the date stated by the Claimant pursuant to this paragraph (i);
||the specific portions of the denial of the Claimants claim which the Claimant
requests the Plan Administrator to review;
||a statement by the Claimant setting forth the basis upon which Claimant
believes the Plan Administrator should reverse its previous denial of the Claimants
claim and accept the Claimants claim as made; and
||any written material which the Claimant desires the Plan Administrator to
examine in its consideration of the Claimants position as stated pursuant to paragraph
In accordance with this Section, if the Claimant requests a review of the Plan Administrators
decision, such review shall be made by the Plan Administrator, which shall, within sixty (60) days
after receipt of the request form, review and render a written decision on the claim containing the
specific reasons for the decision including reference to Plan provisions upon which the decision is
based. All findings, decisions, and determinations of any kind made by the Plan Administrator
shall not be modified unless the Plan Administrator has acted in an arbitrary and capricious
manner. Subject to the requirements of law, the Plan Administrator shall be the sole judge of the
standard of proof required in any claim for benefits, and any determination of eligibility for a
benefit. All decisions of the Plan Administrator shall be binding on the Claimant and upon all
other Persons. If the Participant or
Beneficiary shall not file written notice with the Plan Administrator at the times set forth above,
such individual shall have waived all benefits under the Plan other than as already provided, if
any, under the Plan.
All benefits paid under the Plan shall be payable solely out of the general assets of the
Corporation. The Corporation shall have no obligation to establish a trust to fund its obligation
benefits under the Plan or to insure any benefits under the Plan and nothing contained in
the Plan shall create or be construed as creating a trust of any kind or any other fiduciary
relationship between the Participant, the Corporation, or any other person. It is the intention of
the Corporation and the Participant that the Plan be unfunded for tax purposes and for purposes of
Title I of the Employee Retirement Income Security Act of 1974, as amended. The Corporation may,
in its sole discretion, combine the payment due and owing under the Plan with one or more other
payments owing to the Participant or the Participants Beneficiary under any other plan, contract,
or otherwise (other than any payment due under the Pension Plan) in one check, direct deposit, wire
transfer, or other means of payment.
AMENDMENT AND TERMINATION
8.1 Termination or Amendment. The Corporation reserves the right to amend or
terminate the Plan at any time by action of its Board of Directors, or any duly authorized
Committee thereof; provided, however, that no such action shall adversely affect any Participant
who has met the age and service requirements of Section 3.1 or any Participant or Participants
Beneficiary who is receiving or who is eligible to receive an Excess Pension Benefit hereunder,
unless an equivalent benefit is provided under another plan maintained by an Employer. No
amendment or termination will result in an acceleration of Excess Pension Benefits in violation of
Section 409A of the Code.
8.2 Effect of Plan Termination. Notwithstanding anything to the contrary contained in
the Plan, the termination of the Plan shall terminate the liability of the Corporation and all
Employers to provide for future benefits under the Plan.
9.1 Interest of Participant. The obligation of the Employer and of the Corporation to
provide a Participant or the Participants Beneficiary with an Excess Pension Benefit under the
Plan merely constitutes the unsecured promise of the Employer and the Corporation to make payments
as provided herein and no person shall have any interest in, or a lien or prior claim on any
property of the Employer or Corporation.
9.2 Benefits. Nothing in the Plan shall be construed to confer any right or claim
upon any person, firm, or corporation other than the Participant and the Participants Beneficiary
who may become entitled to an Excess Pension Benefit under the Plan.
9.3 No Present Interest. Subject to any federal statute to the contrary, no right or
benefit under the Plan and no right or interest in each Participants Plan benefit shall be subject
to anticipation, alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to
anticipate, alienate, sell, assign, pledge, encumber, or charge any right or benefit under the
Plan, or Participants Plan Account shall be void. No right, interest, or benefit under the Plan
or the Participants Plan benefit shall be liable for or subject to the debts, contracts,
liabilities, or torts of the Participant or his or her Beneficiary. If the Participant or the
Participants Beneficiary becomes bankrupt or attempts to alienate, sell, assign, pledge, encumber,
or charge any right under the Plan or the Participants Plan benefit, such attempt shall be void
9.4 Unfunded Plan. This Plan is an unfunded plan maintained primarily to provide
deferred compensation benefits for a select group of management or highly-compensated employees
within the meaning of Sections 201, 301, and 401 of ERISA, and therefore is exempt from the
provisions of Parts 2, 3, and 4 of Title I of ERISA.
9.5 No Commitment as to Employment. Nothing herein contained shall be construed as a
commitment or agreement upon the part of any Employee hereunder to continue his or her employment
with an Employer, and nothing herein contained shall be construed as a commitment on the part of
any Employer to continue the employment, rate of compensation or terms and conditions of employment
of any Employee hereunder for any period. All Participants shall remain subject to discharge to
the same extent as if the Plan had never been put into effect.
9.6 Absence of Liability. No member of the Board of Directors of the Corporation or a
subsidiary or committee authorized by the Board of Directors, or any officer of the Corporation or
a subsidiary shall be liable for any act or action hereunder, whether of commission or omission,
taken by any other member, or by any officer, agent, or Employee, except in circumstances involving
bad faith or willful misconduct for anything done or omitted to be done.
9.7 Expenses. The Corporation will pay all Plan expenses.
9.8 Precedent. Except as otherwise specifically agreed to by the Corporation in
writing, no action taken in accordance with the Plan by the Corporation shall be construed or
relied upon as a precedent for similar action under similar circumstances.
9.9 Withholding. The Corporation shall withhold any tax which the Corporation in its
discretion deems necessary to be withheld from any payment to any Participant, former Participant,
or Beneficiary hereunder, by reason of any present or future law.
9.10 Validity of Plan. The validity of the Plan shall be determined and the Plan
shall be construed and interpreted in accordance with the provisions of ERISA, the Code, and, to
the extent applicable, the laws of the State of Ohio. The invalidity or illegality of any
provision of the Plan shall not affect the validity or legality of any other part thereof.
9.11 Parties Bound. The Plan shall be binding upon the Employers, Participants,
former Participants, and Beneficiaries hereunder, and, as the case may be, the heirs, executors,
administrators, successors, and assigns of each of them.
9.12 Headings. All headings used in the Plan are for convenience of reference only
and are not part of the substance of the Plan.
9.13 Duty to Furnish Information. The Corporation shall furnish to each Participant,
former Participant, or Beneficiary any documents, reports, returns, statements, or other
information that it reasonably deems necessary to perform its duties imposed hereunder or otherwise
imposed by law.
9.14 Trust Fund. At its discretion, the Corporation may establish one or more trusts,
with such trustees as the Corporation may approve, for the purpose of providing for the payment of
benefits owed under the Plan. Although such a trust may be irrevocable in the event of insolvency
or bankruptcy of the Corporation, such assets will be subject to the claims of the Corporations
general creditors. To the extent any benefits provided under the Plan are paid from any such
trust, the Employer shall have no
further obligation to pay them. If not paid from the trust, such
benefits shall remain the obligation of the Employer.
9.15 Notice. Any notice required or permitted under the Plan shall be deemed
sufficiently provided if such notice is in writing and hand delivered or sent by registered or
certified mail. Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark or on the receipt for registration or
certification. Mailed notice to the Corporation shall be directed to the Corporations address,
attention: KeyCorp Compensation and Benefits Department. Mailed notice to a Participant or
Beneficiary shall be directed to the individuals last known address in the Employers records
9.16 Successors. The provisions of this Plan shall bind and inure to the benefit of
each Employer and its successors and assigns. The term successors as used herein shall include any
corporate or other business entity which shall, whether by merger, consolidation, purchase or
otherwise, acquire all or substantially all of the business and assets of an Employer.
CHANGE OF CONTROL
Notwithstanding any other provision of the Plan to the contrary, in the event of a Change of
Control, a Participants interest in his or her Excess Pension Benefit shall vest, and the
Participant shall be entitled to receive an immediate distribution of his or her Excess Pension
Benefit, if on and after a Change of Control (i) the Participants employment is terminated by his
or her Employer and any other Employer without cause, or (ii) the Participant resigns within two
years following a Change of Control as a result of the Participants mandatory relocation,
reduction in the Participants base salary, reduction in the Participants average annual incentive
compensation (unless such reduction is attributable to the overall corporate or business unit
performance) or the Participants exclusion from stock option programs as compared to comparably
For purposes of this Article X hereof, Change of Control shall be deemed to have occurred if
under a rabbi trust arrangement established by KeyCorp (Trust), as such Trust may from time to
be amended or substituted, the Corporation is required to fund the Trust because a Change of
Control, as defined in the Trust, has occurred.
SECTION 409A CODE
The Plan is intended to provide for the deferral of compensation in accordance with the
provisions of Section 409A of the Code and regulations and published guidance issued pursuant
thereto. Accordingly, the Plan shall be construed in a manner consistent with those provisions and
may at any time be amended in the manner and to the extent determined necessary or desirable by the
Corporation to reflect or otherwise facilitate compliance with such provisions with respect to
amounts deferred on and after January 1, 2005. Notwithstanding any provision of the Plan to the
contrary, no otherwise permissible election, deferral, accrual, or distribution shall be made or
given effect under the Plan that
would result in early taxation or assessment of penalties or
interest of any amount under Section 409A of the Code.
Notwithstanding any provision of the Plan to the contrary, the Participants Excess Pension
Benefits shall not be distributed to the Participant earlier than:
||the Participants separation from service, as determined by the Secretary of
the Treasury (except as provided below with respect to a key employee of the
||the Participants Disability, or
||the death of the Participant.
If it is determined that a Participant constitutes a key employee (as defined in
Section 416(i) of the Code without regard to paragraph (5) thereof) of the Corporation, the
Participant shall not commence the distribution of his or her Excess Pension Benefits
before the date which is six months after the date of the Participants separation from
service (or, if earlier, the date of death of the Participant).
IN WITNESS WHEREOF, KeyCorp has caused this KeyCorp Second Excess Cash Balance Pension Plan to
be executed by its duly authorized officer this 21st day of December, to be effective as of
January 1, 2005.
||/s/ Thomas E. Helfrich
||Executive Vice President