Document:

Exhibit 10.3

 

JOHN
DEERE SUPPLEMENTAL PENSION BENEFIT PLAN

 

AMENDED:
1 November 1987

 

AMENDED:
24 February 1988

 

AMENDED:
28 February 1990

 

AMENDED:
27 February 1991

 

AMENDED:
29 May 1991

 

AMENDED:
26 August 1992

 

AMENDED:
09 December 1992

 

AMENDED:
May 1993 – Effective: 01 July 1993

 

AMENDED:
08 December 1993 – Effective: 01 July 1993

 

AMENDED:
07 December 1994

 

AMENDED:
May 1995 – Effective: 01 January 1995

 

AMENDED:
13 December 1995 – Effective: 01 January 1995

 

AMENDED:
04 December 1996 – Effective: 01 January 1997

 

AMENDED:
07 January 1998 – Effective: 01 January 1998

 

AMENDED:
26 May 1999  - Effective: 26 May 1999

 

AMENDED:
19 July 1999  - Effective: 01 July 1999

 

AMENDED:
06 August 1999 – Effective: 01 August 1999

 

AMENDED:
02 November 1999 – Effective: 01 November 1999

 

AMENDED:  31 July 2000 –Effective: 01 Jan 2000
(Item (1&2) 01 Apr 2000 (Item (3) 

(See
Resolution for Item explanation)

 

AMENDED:
29 January 2002 - Effective: 01 January 2002

 

AMENDED:
1 December 2005 – Effective: 1 January 2005

 

AMENDED:
13 December 2007 – Effective: 1 January 2007

 

 

JOHN
DEERE SUPPLEMENTAL PENSION BENEFIT PLAN

 

TABLE
OF CONTENTS

 

Table of Contents

 

	
  Section

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Table
  of Contents

  	
   

  
	
   

  	
   

  
	
  Page

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.

  	
  Purpose and Establishment

  	
   

  
	
   

  	
  1.1

  	
  Establishment and Amendment of the Plan

  	
  1

  
	
   

  	
  1.2

  	
  Purpose

  	
  1

  
	
   

  	
  1.3

  	
  Cost of Benefits

  	
  1

  
	
   

  	
  1.4

  	
  Application of Plan

  	
  1

  
	
   

  	
  1.5

  	
  Administration, Amendment and Termination

  	
  1

  
	
   

  	
  1.6

  	
  Nonencumbrance of Benefits

  	
  2

  
	
   

  	
  1.7

  	
  Employment Rights

  	
  2

  
	
   

  	
  1.8

  	
  Severability

  	
  2

  
	
   

  	
  1.9

  	
  Applicable Law

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Definitions

  	
  3

  
	
   

  	
  2.1

  	
  Definitions

  	
  3

  
	
   

  	
  2.2

  	
  Gender and Number

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
  Supplemental Pension Benefit

  	
   

  
	
   

  	
  3.1

  	
  Eligibility

  	
  7

  
	
   

  	
  3.2

  	
  Amount

  	
  7

  
	
   

  	
  3.3

  	
  Limitations

  	
  8

  
	
   

  	
  3.4

  	
  Reduction for Early Retirement under Contemporary
  Pension Option

  	
  8

  
	
   

  	
  3.5

  	
  Commencement and Duration

  	
  8

  
	
   

  	
  3.6

  	
  Death Prior to Receipt of Lump Sum

  	
  9

  
	
   

  	
  3.7

  	
  Qualified Domestic Relations Order

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
  Disability Benefit

  	
   

  
	
   

  	
  4.1

  	
  Eligibility

  	
  11

  
	
   

  	
  4.2

  	
  Amount

  	
  11

  
	
   

  	
  4.3

  	
  Commencement and Duration

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
  Change in Control of Company

  	
   

  
	
   

  	
  5.1

  	
  Eligibility

  	
  12

  
	
   

  	
  5.2

  	
  Change in Control of the Company

  	
  12

  
	
   

  	
  5.3

  	
  Cause

  	
  13

  
	
   

  	
  5.4

  	
  Good Reason

  	
  13

  
	
   

  	
  5.5

  	
  Amount

  	
  14

  
								

 

 

	
   

  	
  5.6

  	
  Commencement and Duration

  	
  14

  
	
   

  	
  5.7

  	
  Deere & Company Severance Protection
  Agreement

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
  Survivor Benefits

  	
   

  
	
   

  	
  6.1

  	
  Death of an Active or Disabled Participant

  	
  15

  
	
   

  	
  6.2

  	
  Death of a Retired Participant

  	
  15

  
	
   

  	
  6.3

  	
  Commencement and Duration

  	
  16

  
	
   

  	
  6.4

  	
  Survivor Benefit Election After Retirement.

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
  Financing of Benefits

  	
  17

  
	
   

  	
  7.1

  	
  Contractual Obligation

  	
  17

  
	
   

  	
  7.2

  	
  Unsecured General Creditor

  	
  17

  
	
   

  	
  7.3

  	
  Funding

  	
  17

  
	
   

  	
  7.4

  	
  Vesting

  	
  17

  
	
   

  	
  7.5

  	
  Administration

  	
  17

  
	
   

  	
  7.6

  	
  Expenses

  	
  17

  
	
   

  	
  7.7

  	
  Indemnification and Exculpation

  	
  17

  
	
   

  	
  7.8

  	
  Effect on Other Benefit Plans

  	
  18

  
	
   

  	
  7.9

  	
  Tax Liability

  	
  18

  

 

	
  APPENDIX A

  	
   

  	
   

  
	
         Article A-1
   APPLICATION; PAYMENT OF PLAN BENEFIT AFTER 2006

  	
  1

  
	
  A-1.1

  	
   Application
  of this Article

  	
  1

  
	
  A-1.2

  	
   Retirement
  During Calendar Year 2007 or Later

  	
  1

  
	
  A-1.3

  	
   Termination
  During Calendar Year 2005 or Later

  	
  1

  
	
         Article A-2
   DEATH and DISABILITY BENEFITS

  	
  2

  
	
  A-2.1

  	
   Application
  of Article A-2

  	
  2

  
	
  A-2.2

  	
   No Additional
  Rights Because of Death

  	
  2

  
	
  A-2.3

  	
   Rules Based
  on Timing of Death

  	
  2

  
	
  A-2.4

  	
   Separation
  from Service Due to Disability

  	
  3

  
	
  A-2.5

  	
   Return to
  Work Following Disability

  	
  4

  
	
   

  	
   

  	
   

  
	
  APPENDIX B

  	
   

  	
   

  
	
         Article B-1
   MISCELLANEOUS PROVISIONS

  	
  1

  
	
  B-1.1

  	
   Application
  of this Article

  	
  1

  
	
  B-1.2

  	
   Impact of
  Vacation

  	
  1

  
	
  B-1.3

  	
   Impact of
  Leave of Absence and Special Paid Leave of Absence

  	
  1

  
	
  B-1.4

  	
   No Acceleration
  or Delay

  	
  2

  
	
         Article B-2  A MENDMENT AND TERMINATION

  	
  2

  
	
  B-2.1

  	
   Amendment and
  Termination

  	
  2

  
	
  B-2.2

  	
   Plan Benefit
  in the Event of Termination

  	
  2

  
	
         Article B-3  DEFINITIONS

  	
  2

  
	
  B-3.1

  	
   Section References

  	
  2

  
	
  B-3.2

  	
   Terms Defined

  	
  2

  
				

 

 

JOHN
DEERE SUPPLEMENTAL PENSION BENEFIT PLAN

 

Section 1.    Purpose
and Establishment

 

1.1                                 Establishment
and Amendment of the Plan.  Deere &
Company (the “Company”) established and presently maintains the John Deere
Supplemental Pension Benefit Plan (the “Plan”), an unfunded supplemental
retirement plan for the benefit of its eligible employees, on 1 November 1978.  Said plan is hereby further amended and
restated as set forth herein effective as of 1 January 1997.  Effective as of 1 January 2007, the Plan
is amended pursuant to Section 409A of the Code as set forth in Appendices
A and B, which form part of the Plan. 
Amendments to the Plan adopted in 2006 and 2007 are intended to align
Plan provisions with prior operational changes and avoid the imposition on any
Participant of taxes and interest pursuant to Section 409A of the Code.

 

1.2                                 Purpose.  The purpose of this Plan is to promote the
mutual interests of Deere & Company and its Officers and Executives.

 

1.3                                 Cost
of Benefits.  Cost of providing
benefits under the Plan will be borne by the Company.

 

1.4                                 Application
of Plan.  The provisions of this Plan
as set forth herein are applicable only to the employees of the Company in
current employment on or after 1 November 1987, except as specifically
provided herein.  Except as so provided,
any person who was covered under the Plan as in effect on 31 October 1987
and who was entitled to benefits under the provisions of the Plan shall
continue to be entitled to the same amount of benefits without change under
this Plan.  Any person covered under the
Plan as in effect 1 November 1987 who is age 55 or above on 1 November 1987
shall be entitled to the larger of the benefit amount in Section 3.2 below
or the benefit provided under the John Deere Supplemental Pension Benefit Plan
effective prior to 1 November 1987.

 

Notwithstanding any provision of this Plan to
the contrary, the provisions of Appendices A and B shall apply to payment of
benefits on or after 31 December  2006 and such appendices shall supersede
the other provisions of the Plan to the extent necessary to eliminate
inconsistencies between such Appendices and such other provisions of the Plan.

 

1.5                                 Administration,
Amendment and Termination.  The Plan
is administered by and shall be interpreted by the Company.  The Board of Directors of the Company or the
Pension Plan Oversight Committee of the Board may at any time amend, modify or
terminate this Plan in their sole discretion. 
In addition, the Deere & Company Compensation Committee shall
have the authority to approve all amendments or modifications that:

 

a.                                       in
the Compensation Committee’s judgment are procedural, technical or
administrative, but do not result in changes in the control and management of
the Plan assets; or

 

1

 

b.                                      in the Compensation Committee’s judgment are
necessary or advisable to comply with any changes in the laws or regulations
applicable to the Plan; or

 

c.                                       in the Compensation Committee’s judgment are
necessary or advisable to implement provisions conforming to a collective
bargaining agreement which has been approved by the Board of Directors; or

 

d.                                      in the Compensation Committee’s judgment will
not result in changes to benefit levels exceeding $5 million dollars per
amendment or modification during the first full fiscal year that such changes
are effective for the Plan; or

 

e.                                       are the subject of a specific delegation of
authority from the Board of Directors.

 

Provided, however, that this Plan shall not
be amended or modified so as to reduce or diminish the benefit then currently
being paid to any employee or Surviving Spouse of any former employee without
such person’s consent.  The power to
terminate this Plan shall be reserved to the Board of Directors of Deere &
Company.  The procedure for amendment or
modification of the Plan by either the Board of Directors, or, to the extent so
authorized, the Pension Plan Oversight Committee, as the case may be, shall
consist of:  the lawful adoption of a
written amendment or modification to the Plan by majority vote at a validly
held meeting or by unanimous written consent, followed by the filing of such
duly adopted amendment or modification by the Secretary with the official
records of the Company.

 

1.6                                 Nonencumbrance
of Benefits.  Except as provided in Article VIII,
Section 8 of the John Deere Pension Plan for Salaried Employees, no
employee, retired employee, or other beneficiary hereunder shall have any right
to assign, alienate, pledge, hypothecate, anticipate, or in any way create a
lien upon any part of this Plan, nor shall the interest of any beneficiary or
any distributions due or accruing to such beneficiary be liable in any way for
the debts, defaults, or obligations of such beneficiary, whether such
obligations arise out of contract or tort, or out of duty to pay alimony or to
support dependents, or otherwise.

 

1.7                                 Employment
Rights.  Establishment of this Plan
shall not be construed to give any Participant the right to be retained by the
Company or to any benefits not specifically provided by the Plan.

 

1.8                                 Severability.  In the event any provision of the Plan shall
be held invalid or illegal for any reason, any invalidity or illegality shall
not affect the remaining parts of the Plan, but the Plan shall be construed and
enforced as if the invalid or illegal provision had never been inserted, and
the Company shall have the privilege and 

 

2

 

opportunity to
correct and remedy such questions of invalidity or illegality by amendment as
provided in the Plan.

 

1.9                                 Applicable
Law.  This Plan is fully exempt from
Titles II, III, and IV of ERISA. 
The Plan shall be governed and construed in accordance with Title I of
ERISA and other applicable law (including, to the extent not preempted by
federal law, the laws of the State of Illinois).

 

Section 2.    Definitions

 

2.1                                 Definitions.
 Whenever used in this Plan, it is
intended that the following terms have the meanings set forth below.  Defined terms used in Appendix A or B have
the meanings set forth in Appendix B.

 

(a)         “Average Pensionable Pay” of the
Traditional Pension Option means the average for each  year of the following:

 

(1)        all straight-time salary payments, plus
the larger of (i) or (ii) through 31 December 2000 and as of 1 January 2001
plus the larger of (i) or (iii) below:

 

(i)         the amounts paid under the John
Deere Profit Sharing Plan and the John Deere Short-Term Incentive Plan  prior to 1991 plus the sum of the bonuses paid
under the John Deere Performance Bonus Plan for Salaried  Employees, the John Deere Health Care, Inc.
Annual Performance Award Plan or the John Deere Credit  Company Profit Sharing Plan.

 

(ii)        the amount paid prior to 1989
under the John Deere Long-Term Incentive Plan, the John Deere Restricted Stock
Plan through 1998, or after 1998 the Pro-rated Yearly Vesting Amount under the
John Deere Equity Incentive Plan.

 

(iii)       the target amount under the John
Deere Performance Bonus Plan for Salaried Employees, the John Deere  Health, Inc. Annual Performance Award
Plan or the John Deere Credit Company Profit Sharing Plan.

 

(2)        The annual average of such
amounts shall be based on the five (5) highest years, not necessarily
consecutive, during the ten (10) years 
immediately preceding the earliest of the Participant’s retirement,
total and permanent disability, or death. 
The greater of any such short or long-term awards as defined in
2.1(a)(1)(i) or (ii) above paid or vested during the twelve months
immediately following the Participant’s retirement, shall be substituted for
the lowest such annual short or long-term bonus award used to calculate Average
Pensionable Pay, if the result would be a higher pension benefit.  All amounts used in calculating the Average
Pensionable Pay will be determined before the effect of any salary or bonus
deferral or 

 

3

 

reduction resulting from an
election by the Employee under any Company sponsored plan or program, but
excluding any matching and/or growth factor, Company contribution, and/or
flexible credits provided by the Company under any such plan or program.

 

(b)           “Average Monthly Pensionable Pay”
means the Average Pensionable Pay divided by twelve (12).

 

(c)           “Board”
means the Board of Directors of the Company.

 

(d.1)        Career
Average Pay of the Contemporary Pension Option means the       following for those Officers listed in Exhibit 1:

 

(1)                                  The
highest five calendar years of the last ten not necessarily consecutive as of
31 December 1996 plus the greater of short-term bonus or long-term
incentive pay received in each of those years as defined in section 2.1(a)(1)(i) or
(ii) above.

 

plus

 

(2)           Base pay and short-term
bonuses as defined in Section 2.1(a)(1)(i) above paid beginning 1 January 1997
and thereafter (excluding any long-term incentives as defined in section
2.1(a)(1)(ii) above).

 

The amounts of all salary,
short-term bonus, or other pay received as described in (1) and (2) above
will be divided by the number of pay periods in which base pay was received to
determine the Career Average Pay.

 

(d.2)      “Career
Average Pay” of the Contemporary Pension Option means the following for
newly eligible Participants effective the latter of 1 January 1997 or
entering Base Salary Grade 13 or above:

 

(3)         The highest five consecutive of
the last ten anniversary years or the last 60 months of straight time pay if
higher as of 31 December 1996 for Participants with five or more years of
continuous employment.

 

plus

 

(4)          Restorable short-term
performance bonuses earned and paid during the years 1992-1996 credited at the
rate of 1/120th for each pay period of continuous employment beginning 1 January 1997.  Short-term performance bonuses are defined in
2.1(a)(1)(i) of this Plan.

 

4

 

plus

 

(5)                                  All
straight time pay plus short-term performance bonuses paid on or after 1 January 1997
(excluding any long-term incentives such as stock options).

 

The amounts of salary and
bonus derived from (d.2)(1) plus (2) plus (3) above are divided
by the number of pay periods in which base pay was received to determine the
career average pay.  This amount
multiplied times 2 transforms career average pay to a monthly equivalent.

 

(e)           “Code” means the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

(f)            “Company” means Deere &
Company, a Delaware corporation.

 

(g)           “Contemporary Pension Option”
means the benefit provided to Officers Listed in Exhibit 1 who elect the
Contemporary Pension Option on or before 15 November 1996, and all other
Executives who become Participants on or after 1 January 1997.

 

(h)           “Disability” shall have the
same meaning as under the Qualified Retirement Plan or John Deere Long Term
Disability Plan for Salaried Employees.

 

(i)            “Executive” means an employee
base salary grade 13 or above who on 1 January 1997 is a non-officer, or
an employee who attains base salary grade 13 or above after 1 January 1997.

 

(j)            “Officer” means employees
listed in Exhibit I.

 

(k)           “Non-officer” means any
employee of the Company who is not an elected officer and does not hold one of
the elected positions listed in (i) above.

 

(l)            “Participant”  means an Officer as defined in (i) above
or Salary Grade 13 and above Executives.

 

(m)          “Plan Year” means the 12-month
period beginning each November 1.

 

(n)           “Pro-rated Yearly Vesting Amount
under the John Deere Equity Incentive Plan” means for the purposes of calculating
a long term incentive amount under Section 2.1 (a) (1) (ii) of
this Plan is one-quarter of each bi-annual EIP Grant allocated to each year
following the Grant date multiplied times the Grant Price.  In the event an EIP Grant vests and bonus
shares are payable during the 12 months immediately following a Participant’s
retirement, the actual value of the Grant will be redetermined and allocated
equally in one-quarter increments to each of the years following the Grant date
which were used to 

 

5

 

calculate
Average Pensionable Pay, if the result would be a higher pension benefit.

 

(o)           “Qualified Retirement Plan”
means the John Deere Pension Plan for Salaried Employees which is a qualified
plan under Section 401(a) of the Internal Revenue Code.  Provisions under this Plan shall in no way
alter provisions under the Qualified Retirement Plan.

 

(p)           “Retirement Benefit” shall be
a single-life annuity or lump sum amount as provided under Section 3
subject to provisions of Section 5.

 

(q)           “Section 162(m) Participant”
means a participant who is the CEO or the four highest paid Executives, as
reported in the proxy, who is employed on the last day of the fiscal year.

 

(r)            “Service” shall have the same
meaning in this Plan as “service credit” in the Qualified Retirement Plan.  Service credit for benefit purposes in this
plan for those Executives not listed in Exhibit I will begin on the
latter of 1 January 1997 or attainment of base salary grade 13 or above
whichever is later.

 

(s)           “Surviving Spouse” shall mean
the legally married spouse (determined under both the laws of the deceased
participant’s domicile and the laws of the United States) of a deceased
participant.

 

(t)            “Traditional Pension Option”
means the benefit under this Plan for Officers who (1) are listed in Exhibit 1,
and (2) are or become Participants, and (3) who elect the Traditional
Pension Option on or before 15 November 1996.

 

 

2.2                                 Gender
and Number.  Except when otherwise
indicated by the context, any masculine term used herein shall also include the
feminine, and the singular shall also include the plural.

 

6

 

Section 3.    Supplemental
Pension Benefit

 

3.1                                 Eligibility.  A Participant shall be eligible for benefits
under the provisions of this Plan if such Participant is (1) entitled to a
Vested Plan Benefit under the Qualified Retirement Plan and (2) has
attained (a) age 60 under the Traditional Pension Option; (b) any age
under the Contemporary Pension Option; or (c) any age, if eligible to
retire on 1 January 1997.

 

3.2                                 Amount.  Upon termination of employment an eligible
Participant pursuant to 3.1 above, shall be entitled to a monthly Retirement
Benefit as follows:

 

(1)                                  Traditional
Pension Option equals (a) plus (b) below:

 

(a)           2% of Average Monthly Pensionable Pay
for each year of service as an Officer.

 

(b)           1 1/2% of Average Monthly Pensionable
Pay for each year of service as a non-Officer.

 

or

 

(2)                                  Contemporary
Pension Option equals (a) plus (b) below:

 

(a)           2% of Career Average Pay for each
year of service as an Officer or Participant.

 

(b)           1 1/2% of Career Average Pay for each
year of service as a non-Officer prior to the latter of 1 January 1997 or
attainment of base salary grade 13 or above, whichever is later.

 

This amount determined in Section 3.2(1) or
3.2(2), as applicable, shall be subject to any reductions for

 

(1)                                  Early
retirement under the Contemporary Pension Option as provided in Section 3.4
of this plan.

 

(2)                                  Any
formula used (or that would be used) to calculate any age and/or
service-related reduction in the retiree’s monthly benefit under the terms of
the Qualified Retirement Plan in effect as of 1 January 2007.

 

(3)                                  Survivor
benefits described in Section 6.

 

(4)                                  Provisions
shown in Section 3.3 which follows and shall be further reduced by the sum
of

 

(i)                                     the
benefit earned under the Qualified Retirement Plan; and

 

7

 

(ii)                                  the
benefit provided under the John Deere Senior Supplementary Pension Plan or
ERISA Supplementary Pension Plan, as the case may be.

 

Notwithstanding the
foregoing, effective 1 January
2007, an Eligible Participant pursuant to Section 3.1 above shall become
entitled to the monthly Retirement Benefit described in this Section 3.2 upon
his or her Separation from Service (as defined in Article B-3 of Appendix B); provided,
however, that Section B-1.2, if applicable, shall apply in calculating
the amount of the Participant’s benefit under the Plan, and the time and form
of payment shall be determined in accordance with Appendix A.

 

3.3                                 Limitations.

 

(a)           The total monthly Retirement Benefit
paid under the Traditional Pension Option of this Plan, the Qualified
Retirement Plan and the John Deere Senior Supplementary Pension Plan or ERISA
Supplementary Pension Plan, as the case may be, may not exceed 66-2/3% of the
Average Monthly Pensionable Pay.  If such
number is exceeded the amount payable under this Plan shall be reduced to the
extent necessary to equal 66-2/3% of the Average Monthly Pensionable Pay.

 

(b)           That part of the Retired employee’s
monthly benefit which is based on service credit prior to 1 July 1993 (1 January 1994
for employees of John Deere Credit Company, John Deere Health Care, Inc.
and John Deere Insurance Group) shall be reduced by 1/2% for each full year in
excess of 10 years that the spouse is younger than the employee.

 

3.4                                 Reduction
for Early Retirement under Contemporary Pension Option.  The amount determined in 3.2 above shall be
reduced 1/3% per month from the unreduced full benefit age, as defined under
the terms of the Contemporary Pension Option of the Qualified Retirement Plan
in effect as of 1 January 2007, as of the date benefits commence.

 

3.5                                 Commencement
and Duration.  Payment of monthly
retirement benefits provided under this Plan shall commence on the first day of
any calendar month following the date of retirement as elected under the
Qualified Retirement Plan.  Benefit payments
will be made on the first day of each calendar month thereafter.  The last payment will be made the first day
of the calendar month in which the Participant dies, subject to the provisions
of Section 5.

 

Alternatively, the
Participant may elect to receive a lump sum payment for all or a portion (in
10% increments from 10% to 90%) of the Retirement Benefits payable under this
Plan including the 55% joint and survivor annuity equal to 11% of the
supplemental benefit payable, adjusted for service accrued through 30 June 1993,
or 31 December 1993 in the case of employees of John Deere Credit Company,
John Deere Health Care, Inc., or John Deere Insurance Group.  Written 

 

8

 

notice of the Participant’s election to
receive a lump sum payment shall be irrevocable, and must be received by the
Company within the twelve (12) months prior to payment, but in no event
subsequent to the Participant’s date of retirement.  The lump sum payment shall be made to
Participant twelve (12) months after receipt of notice by the Company but in no
event prior to the Participant’s retirement.

 

Notwithstanding the above, a
Section 162(m) Participant whose retirement date coincides with the
Company’s fiscal year-end date will not be paid the previously elected lump-sum
payment until he is no longer a Section 162(m) Participant.

 

Effective beginning 1 January 2002 and
thereafter, the lump sum will be calculated using an interest rate assumption
equal to the average yield in September of the preceding Plan Year on
30-year Treasury Constant Maturities (as published in October by the
Internal Revenue Service) and the mortality table shall be based upon a fixed
blend of 50% male mortality rates and 50% female mortality rates from the Group
Annuity Reserving Table (“GAR”) , as set forth in Revenue Ruling 2001-62, in
effect at the beginning of the plan year in which payment is made.  The age used in the calculation will be the
age of the Participant.

 

Monthly retirement benefits will be redetermined as
soon as practicable and increased benefits paid retroactive to the
Participant’s date of retirement for:

 

(a)           any eligible long or short-term bonus
paid after retirement replacing an earlier bonus award used to calculate
Average Pensionable Pay under the Traditional Pension Option

 

or

 

(b)           any eligible short-term bonus paid
after retirement added to career average earnings used to calculate pension
benefits under the Contemporary Pension Option.

 

Effective 1 January 2008,
monthly retirement benefits determined as described above shall be paid upon
the later of (i) the date specified for payment in accordance with Section A-1.2
or A-1.3, as applicable, or (ii) on the first day of the calendar month
following vesting of the bonus giving rise to the adjustment.

 

3.6                                 Death
Prior to Receipt of Lump Sum.  If an
active Participant or a Participant on Permanent and Total Disability dies
after receipt of notice by the Company pursuant to Section 3.5 of
Participant’s irrevocable election to receive a lump sum payment, but before
the expiration of twelve (12) months after receipt by the Company of such
election, a Surviving Spouse of the Participant who is eligible for a survivor
benefit under Section 6 will receive a lump sum survivor’s benefit under Section 6.1
of this Plan.  The 55% Surviving Spouse
lump sum benefit will be payable no earlier than twelve (12) months following
receipt of notice by the 

 

9

 

Company of the deceased
Participant’s irrevocable election but not before the first day of the month
following eligibility for a Surviving Spouse benefit under the Qualified
Retirement Plan.

 

If a retired Participant or
a Participant on Permanent and Total Disability subsequently retires under
Normal Retirement and dies after receipt of notice by the Company pursuant to Section 3.5
of Participant’s irrevocable election to receive a lump sum payment, but before
the expiration of twelve (12) months after receipt by the Company of such
election, a Surviving Spouse of the Participant who is eligible for a survivor
benefit under Section 6 will receive the Participant’s full lump sum
benefit under Section 3.5 of this Plan in lieu of Surviving Spouse
benefits under Section 6.  In the
event the retired Participant is unmarried at the date of death or the
Surviving Spouse of the deceased Participant is not eligible for survivor
benefits under Section 6, the Participant’s full lump sum benefit will be
paid to the deceased Participant’s estate. 
The lump sum benefit will be payable no earlier than twelve (12) months
following receipt of notice by the Company of the deceased Participant’s
irrevocable election.

 

3.7                                 Qualified
Domestic Relations Order.

 

Distribution is prohibited under the Plan
prior to the Participant’s retirement and, in the event of a Qualified Domestic
Relations Order, the Alternate Payee must take distribution as a single lump
sum payment within 180 days following the Participant’s retirement under the
Plan.

 

10

 

Section 4.    Disability
Benefit

 

4.1                                 Eligibility.  An employee who qualifies for a Disability
benefit in accordance with the provisions of the Qualified Retirement Plan or
John Deere Long Term Disability Plan for Salaried Employees shall be entitled
to a benefit under this Plan upon retirement under a normal retirement under
the Qualified Retirement Plan.

 

4.2                                 Amount.  The amount shall be determined in accordance
with 3.2 except that service as an Officer shall be determined for the period
of time prior to total and permanent disability as defined in the Qualified
Retirement Plan or John Deere Long Term Disability Plan for Salaried Employees.

 

4.3                                 Commencement
and Duration.  In the event of
Disability, the payment method shall be the same as that elected pursuant to Section 3.5
of this Plan.  In the event of
Disability, payments of Retirement Benefits provided under this section shall
be made or commence on the same date as Retirement Benefits commence under the
normal Retirement  Provisions under the
Qualified Retirement Plan.

 

11

 

Section 5.    Change
in Control of Company

 

5.1                                 Eligibility.  If a Change in Control of the Company (as
defined in 5.2 below) shall have occurred, and a Participant who has not attained
age 60 ceases to be an employee of the Company, such Participant shall be
eligible for benefits under the provisions of this Plan notwithstanding his age
at the time of such cessation of employment, unless such cessation of
employment is (i) by the Company for “Cause” (as defined in 5.3 below), or
(ii) by the participant for other than Good Reason (as defined in 5.4
below).  If the Participant ‘s cessation
of employment is by reason of Death or Permanent Disability, the Participant ‘s
rights under this Plan shall be governed by Section 4 and 6 of this Plan,
despite the occurrence of a change in control. 
References in this Section 5.1 to “cessation of employment” shall
be references to a Separation from Service, as defined in Article B-3 of
Appendix B.

 

5.2                                 Change
in Control of the Company.  A change
in control of the Company shall mean a change in control of a nature that would
be required to be reported in response to Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act of 1934, as now or hereafter
amended (the “Exchange Act”), whether or not the Company is then subject to
such reporting requirement; provided, that, without limitation, such a Change
in Control shall be deemed to have occurred if:

 

(i)                                     any
“person” (as defined in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the “beneficial owner” (as defined in Rule 13(d-3) under the
Exchange Act), directly or indirectly, of securities of the Company
representing thirty percent (30%) or more of the combined voting power of the
Company’s then outstanding securities;

 

(ii)                                  during
any period of two (2) consecutive years (not including any period prior to
December 9, 1987) there shall cease to be a majority of the Board
comprised as follows:  individuals who at
the beginning of such period constitute the Board and any new director(s) whose
election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved; or

 

(iii)                               the
shareholders of the Company approve a merger or consolidation of the Company
with any other company, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least 80% of the combined
voting power of the voting securities of the Company or 

 

12

 

such surviving entity
outstanding immediately after such merger or consolidation.

 

(iv)                              the
shareholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or
substantially all the Company’s assets.

 

5.3                                 Cause.  Termination of employment by the Company for
“Cause” shall mean termination pursuant to notice of termination setting out
the reason for termination upon (i) the willful and continued failure by
the participant to substantially perform his duties with the Company after a
specific, written demand is developed;  (ii) the
willful engaging by the participant in conduct which is demonstrably and
materially injurious to the Company, monetarily or otherwise or (iii) the
participant’s conviction of a felony which impairs the participant’s ability
substantially to perform his duties with the Company.

 

An act, or failure to act,
shall be deemed “willful” if it is done, or omitted to be done, not in good
faith and without reasonable belief that the action or omission was in the best
interest of the Company.

 

5.4                                 Good
Reason.  “Good Reason” shall mean the
occurrence, without the participant’s express written consent, within 24 months
following a Change in Control of the Company, of any one or more of the
following:

 

(i)                                     the
assignment to the participant of duties materially inconsistent with the
participant’s duties, responsibilities and status prior to the Change in
Control or a material reduction or alteration in the scope of the participant’s
responsibilities from those in effect prior to the Change in Control;

 

(ii)                                  a
reduction by the Company in the participant’s base salary or profit sharing
award as in effect prior to the Change in Control;

 

(iii)                               the
Company requiring the participant to be based at a location in excess of
twenty-five (25) miles from the location where the participant is currently
based;

 

(iv)                              the
failure by the Company or any successor to the Company to continue in effect
any other Pension Plans, or its Profit Sharing Plan for Salaried Employees,
Short-Term Incentive Bonus Plan, Deferred Compensation Plan, Long-Term
Incentive Plan, the John Deere Stock Option Plan or any other of the Company’s
employee benefit plans, policies, practices or arrangements applying to the
participant or the failure by the Company to continue the participant’s
participation therein on substantially the same basis, both in terms of the
amount of benefits provided and the level of his 

 

13

 

or her participation relative to other participants,
as existed prior to the Change in Control;

 

If Good Reason exists, the
participant’s right to terminate his or her employment pursuant to this
Subsection shall not be affected by temporary or subsequent incapacity due to
physical or mental illness.  Continued
employment shall not constitute consent to, or a waiver of rights with respect
to, any circumstance constituting Good Reason hereunder.  Retirement at less than “normal retirement
age” as defined in the John Deere Pension Plan for Salaried Employees
constitutes a “termination” for purposes of this Subsection.

 

5.5                                 Amount.  The amount of the benefit payable under this
section shall be determined in accordance with Section 3.2.

 

5.6                                 Commencement
and Duration.  Retirement Benefits
provided under this section shall be made in a lump sum on the first day of the
calendar month following the date the Participant ceases employment with the
Company, except as noted in Section 3.5. 
Calculation of the lump sum payment shall be made in accordance with the
terms set forth in Section 3.5

 

5.7           Deere & Company Severance
Protection Agreement.

 

The change in control of Company provisions
shown above do not apply in the event a Participant has received and executed a
personal Severance Protection Agreement issued by Deere &
Company.  In order for the Severance
Protection Agreement to apply in lieu of the provisions shown in Section 5
above the Agreement must be effective as shown in Article I.
Establishment, Term and Purpose of the Deere & Company Severance
Protection Agreement.

 

14

 

Section 6.    Survivor
Benefits

 

6.1                                 Death
of an Active or Disabled Participant. 
In the event of the death of an active Participant or a Participant on
Disability, notwithstanding Section 3.1 of this Plan,  the Surviving Spouse shall be eligible for a
monthly survivor benefit provided the Participant:

 

(a)           was married and eligible to retire on
the date of death under early or normal retirement provisions of the Qualified
Retirement Plan or

 

(b)           had been married for at least one
year prior to death and was on Total and Permanent Disability as provided in
the Qualified Retirement Plan or

 

(c)           was married for at least one year
prior to death and Participant had elected the Contemporary Pension Option and
was vested under the Qualified Retirement Plan or

 

(d)           was married for at least one year
prior to death and the Participant elected the Traditional Pension Option and
had three years or more of service as an Officer.  The benefit will be reduced 1/3% of 1% for
each month the Officer would have been under age 60 at the date this Surviving
Spouse benefit commences.

 

The Surviving Spouse benefit
under this Plan for a Participant who died prior to retirement as specified in
6.1 will be in the same proportion of the Participant’s benefit under Section 3
of this Plan as the Surviving Spouse benefit under the Qualified Retirement
Plan bears to the Participant’s benefit under Article IV, Section 1
of the Qualified Retirement Plan.  The
Surviving Spouse benefit will be payable as a monthly annuity or as a lump sum
as of the first of the month following eligibility for a Surviving Spouse
benefit under the Qualified Retirement Plan.

 

6.2                                 Death
of a Retired Participant.  The
Surviving Spouse shall be eligible for a monthly survivor benefit provided:

 

(a)           the Participant is eligible for a
retirement benefit under this Plan and

 

(b)           the Participant had not received the
lump sum payment provided under Section 3.5 of this Plan and

 

(c)           the Surviving Spouse
and Participant were either:

 

(1)           continuously married before the Participant’s early or
normal retirement or

 

(2)           the Participant had elected a Surviving Spouse benefit
under Section 6.4 below.

 

15

 

The survivor benefit option
elected by the retired Participant under Article IV, Section 1 of the
Qualified Retirement Plan shall apply to the survivor benefit payable under
this Plan.  Any formula used to calculate
the reduction in the retiree’s monthly benefit under the Qualified Retirement
Plan shall also apply under this Plan.

 

6.3                                 Commencement
and Duration.  Payment of monthly
death benefits provided under this section shall commence on the same date that
Surviving Spouse benefits commence under the Qualified Retirement Plan.  The last payment will be made on the first
day of the month of the Surviving Spouse’s death.

 

6.4                                 Survivor
Benefit Election After Retirement.  A
Participant who retired and is receiving benefits under this Plan, for whom no
survivor benefit is in effect, may elect a survivor benefit by filing a written
application with the Company provided:

 

(1)           The Participant was not married at retirement and has
subsequently married, or

 

(2)           The Participant has had a Survivor Benefit provision in
effect and has remarried, and

 

(3)           The Participant had not received a lump sum payment
provided in Section 3.5 of this Plan.

 

The Survivor Benefit under
this paragraph and any applicable reduction to the retired Participant’s
benefit shall be effective with respect to benefits falling due for months
commencing with the first day of the month following the month in which the
Company receives an application, but in no event before the first day of the
month following the month in which the retired Participant has been married to
the designated spouse for one year.

 

On or after 1 July 1999,
if the Company is notified of a designated spouse following the first day of
the month in which the retired employee has been married to the designated
spouse for one year, retroactive reductions and benefit adjustments will be
made to the retired Participant’s pension benefit or the survivor’s benefit, in
the event of a retired Participant’s death for such late notice.  These retroactive reductions will become
payable for the period of time based on the date the survivor benefit would
have become effective (the first day of the month following the month in which
the retired Participant had been married to the designated spouse for one
year).

 

Any Surviving Spouse benefit
election by the retired Participant under Article IV, Section 1 of
the Qualified Retirement Plan shall apply to the survivor benefit payable under
this Plan.  Any formula used to calculate
the reduction in the retired Participant’s monthly benefit under the Qualified
Retirement Plan and Sections 3.2, 3.3, and 3.4 of this Plan will also apply.

 

16

 

Section 7.    Financing
of Benefits

 

7.1                                 Contractual
Obligation.  It is intended that the
Company is under a contractual obligation to make the payments under this Plan
when due.  No benefits under this Plan
shall be financed through a trust fund or insurance contracts or
otherwise.  Benefits shall be paid out of
the general funds of the Company.

 

7.2                                 Unsecured
General Creditor.  Neither the
Participant nor the Surviving Spouse shall have any interest whatsoever in any
specific asset of the Company on account of any benefits provided under this
Plan.  The Participant’s (or Surviving
Spouse’s) right to receive benefit payments under this Plan shall be no greater
than the right of any unsecured general creditor of the Company.

 

7.3                                 Funding.  All amounts paid under this Plan shall be
paid in cash from the general assets of the Company.  Such amounts shall be reflected on the
accounting records of the Company, but shall not be construed to create, or
require the creation of, a trust, custodial or escrow account.  No Participant shall have any right, title or
interest whatever in or to any investment reserves, accounts or funds that the
Company may purchase, establish or accumulate to aid in providing the benefits
under this Plan.  Nothing contained in
this Plan, and no action taken pursuant to its provisions, shall create a trust
or fiduciary relationship of any kind between the Company and a Participant or
any other person.  Neither shall an employee
acquire any interest greater than that of an unsecured creditor.

 

7.4                                 Vesting.  Benefits under this Plan shall become
nonforfeitable at the earlier of Disability, or Retirement under the
Traditional Pension Option of the Qualified Retirement Plan after reaching age
60 or after five years of service credit and Termination or Retirement under
the Qualified Retirement Plan Contemporary Pension Option.  Notwithstanding the preceding sentence, a
Participant or his beneficiary shall have no right to benefits hereunder if the
Company determines that he engaged in a willful, deliberate or gross act of
commission or omission which is substantially injurious to the finances or
reputation of the Company.

 

7.5                                 Administration.  This Plan shall be administered by the
Company which shall have, to the extent appropriate, the same powers, rights,
duties and obligations with respect to this Plan as it does with respect to the
Qualified Retirement Plan; provided, however, that the determination of the
Company as to any questions arising under this Plan, including questions of
construction and interpretation shall be final, binding, and conclusive upon
all persons.

 

7.6                                 Expenses.  The expenses of administering the Plan shall
be borne by the Company.

 

7.7                                 Indemnification
and Exculpation.  The agents,
officers, directors, and employees of the Company and its affiliates shall be
indemnified and held harmless by the Company against and from any and all loss,
cost, liability, or expenses that may be imposed upon or reasonably incurred by
them in connection with or resulting from 

 

17

 

any claim, action, suit,
or proceeding to which they may be a party or in which they may be involved by
reason of any action taken or failure to act under this Plan and against and
from any and all amounts paid by them in settlement (with the Company’s written
approval) or paid by them in satisfaction of a judgment in any such action,
suit, or proceeding.  The foregoing
provision shall not be applicable to any person if the loss, cost, liability,
or expense is due to such person’s gross negligence of willful misconduct.

 

7.8                                 Effect
on Other Benefit Plans.  Amounts
credited or paid under this Plan shall not be considered to be compensation for
the purposes of a qualified pension plan or any other benefit plan maintained
by the Company.  The treatment of such
amounts under other employee benefit plans shall be pursuant to the provisions
of such plans.

 

7.9                                 Tax
Liability.  Pursuant to Section B-1.4,
the Company may withhold from any payment of benefits hereunder an amount equal
to the federal employment taxes (FICA) and federal, state local and foreign
income tax obligations arising from a Participant’s participation and accrual
of benefits under the Plan.

 

18

 

APPENDIX A

 

ARTICLE A-1

APPLICATION; PAYMENT OF PLAN BENEFIT AFTER 2006

 

A-1.1      Application of this Article.  Notwithstanding anything in the Plan to the
contrary, the rules applicable to payment of Plan Benefits for
Participants who, as of 31 December 2006, have not commenced payment are
set forth in this Appendix A.

 

A-1.2      Retirement During Calendar Year 2007 or
Later.  If a Participant Retires
after 31 December 2006, his Vested Plan Benefit shall be distributed in a
Lump Sum with a Payment Date that is the 15th day of the month
following the date that is (a) six months and one day following the date
of his Retirement plus (b) one day for every day of Vacation.  Such Lump Sum shall be calculated using lump
sum equivalency factors for a lump sum which is actuarially equivalent to an
immediate Single Life Annuity payable on the date determined in accordance with
clauses (a) and (b) of this Section A-1.2 and shall be based on
the Participant’s age on the date the Participant Retires plus one day for
every day of Vacation.

 

A-1.3      Termination During Calendar Year 2005
or Later.  If a Participant incurs a
Termination during calendar year 2005 or thereafter, his Vested Plan Benefit
shall be distributed in the form of a Lump Sum with a Payment Date that is the
later of (a) 31 January 2007 and (b) the 15th day of
the month following the date that is six months and one day after the date on
which the Participant incurred a Termination. 
Such Lump Sum shall be calculated using lump sum equivalency factors for
a lump sum which is actuarially equivalent to a deferred Single Life Annuity
payable on the earliest date the Participant would be eligible to receive
unreduced benefits under the Qualified Retirement Plan and based on the
Participant’s age on the date of payment.

 

A-1.4      Termination Prior to 1 January 2005.  If a Participant incurred a Termination prior
to 1 January 2005, but as of 31 December 2006 had not yet commenced
payment of his Vested Plan Benefit, such Vested Plan Benefit shall be paid in a
Lump Sum on or before 30 November 2007. 
The amount of the Participant’s Plan Benefit shall be determined in
accordance with Sections 3.2 and 3.5.

 

A-1.5      Separation from Service Following a
Change in Control.  If a Participant
incurs a Separation from Service after 31 December 2006 and following a
Change in Control, and such Separation from Service is (i) by the Company
for “Cause” (as defined in Section 5.3), or (ii) by the Participant
for other than “Good Reason” (as defined in Section 5.4), then,
notwithstanding anything herein to the contrary, such Participant’s Vested Plan
Benefit shall be forfeited.

 

A-1.6  One-Time Lump Sum.  Effective 1 January 2008, Participants
shall receive an amount equal to the interest that would be credited on their
Account for the period beginning on the date of Separation from Service and
ending on the sixth-month anniversary thereof, determined by using an interest
rate equal to the average yield in September of the preceding Plan Year on
30-year Treasury Constant Maturities (as 

 

A-1

 

published in October by
the Internal Revenue Service).  This
one-time lump sum payment shall be paid at the same time as the first
distribution of the Participant’s Vested Plan Benefit under the Plan.

 

Participants who Separated from Service after 31 December 2004
and before 1 January 2008 shall also receive a one-time lump sum cash
payment equal to the amount that such Participants would have been paid had the
preceding paragraph been effective on the date of their Separation from
Service, provided that the average yield in September 2007 on 30-year
Treasury Constant Maturities (as published in October 2007 by the Internal
Revenue Service) shall be used in determining the amount of such one-time lump
sum payment.  This one-time lump sum
payment shall be paid on or before 29 February 2008, but in no event
earlier than the date that is six months and one day after the date of the
Participant’s Separation from Service.

 

ARTICLE A-2

DEATH AND DISABILITY BENEFITS

 

A-2.1      Application of Article A-2.

 

(a)           Death.  This Article A-2 addresses the survivor
benefit or death benefit (in each case, if any) under this Plan with respect to
a Participant who incurs a Separation from Service due to his death on or after
1 January 2007.

 

(b)           Disability.  This Article A-2 addresses the Payment
Date and the Plan Benefit of a Participant who incurs a Separation from Service
due to his Disability on or after 1 January 2007.

 

A-2.2      No Additional Rights Because of Death.  No Vesting Solely as a Result of Death.  No survivor or death benefit shall be payable
to any person under this Article A-2 in respect of a Participant unless
the Participant had a Vested Plan Benefit on the date of death.

 

A-2.3      Rules Based on Timing of Death.

 

(a)           Survivor or Death Benefits to
Unmarried Participants.  If a
Participant is not married to a Surviving Spouse:

 

(1)           as of the date of his Separation from
Service and (i) he is an active employee (i.e., has not incurred a
Separation from Service) of the Company as of the date immediately preceding
his Separation from Service and (ii) such Separation from Service is by
reason of the Participant’s death, no survivor benefit or death benefit with
respect to such Participant’s Vested Plan Benefit, if any, shall be payable to
any person and such Plan Benefit shall be forfeited as of the date of death; or

 

(2)           as of the date of his death and his
Separation from Service occurs prior to the date of death, the survivor benefit
or death benefit with respect to 

 

A-2

 

such Participant’s Vested Plan Benefit, if any, shall
be payable to such Participant’s estate in accordance with the time and form of
payment set forth in Section A-2.3(c).

 

(b)           Separation From Service Due to
Death.

 

(1)           If an active Participant (i.e., a
Participant who has not incurred a Separation from Service) who is Retirement
Eligible and who satisfies the requirements of Section 6.1 incurs a
Separation from Service due to his death and, as of the date of death, has been
married to a Spouse for at least one year immediately prior to the date of
death, the Surviving Spouse shall be paid a single lump sum equal to 55% of the
Lump Sum payable to the Participant had the Participant Retired on the date of
his death.  Such Lump Sum shall be
calculated using lump sum equivalency factors for a Single Life Annuity payable
immediately based on the Participant’s age at the date of death.  Notwithstanding anything in Section A-1.1,
A-1.2 or A-1.3 to the contrary regarding the time or form of payment, such lump
sum distribution to the Surviving Spouse shall be made on the 15th
day of the month following the month in which the Participant dies.

 

(2)           If an active Participant who is not
Retirement Eligible and who, as of the date of death, satisfies Section 6.1
incurs a Separation from Service by reason of his death and, as of the date of
death, has been married to a Spouse for at least one year immediately prior to
the date of death, the Surviving Spouse shall be paid a single lump sum equal
to 55% of the Lump Sum payable to the Participant had the Participant lived
until the earliest date on which he would be eligible for an unreduced benefit
under the Qualified Retirement Plan and then Retired.  Such lump sum payable to the Surviving Spouse
shall be calculated using the lump sum equivalency factors for a Lump Sum which
is actuarially equivalent to a deferred Single Life Annuity payable on the
earliest unreduced benefits date under the Qualified Retirement Plan had the
Participant lived to Retire and based on the Participant’s age at the date of
death.  The Lump Sum payable pursuant to
this Section A-2.3(b)(2) shall be paid on the 15th day of
the month following the month in which the Participant dies, notwithstanding
anything to the contrary in Section A-1.1, A-1.2 or A-1.3 regarding the
time or form of payment.

 

(c)           Death After Separation from
Service and Prior to Payment of Lump Sum. 
If a Participant dies after his Separation from Service but prior to the
receipt of the Lump Sum distribution, such Lump Sum shall be determined and
paid in accordance with Section A-1.2 or A-1.3, as applicable.

 

A-2.4      Separation from Service Due to
Disability.

 

(a)           Separation from Service on or
After 1 January 2007.  A
Participant who incurs a Separation from Service due to a Disability on or
after 1 January 2007, shall receive a distribution of his Plan Benefit in
a Lump Sum paid in accordance with Section A-1.2 or A-1.3.  The Participant’s immediate Single Life
Annuity, which is then converted into a Lump Sum in accordance with Section 3.5,
shall be determined in accordance with Section 3.2 as though the
Participant (i) had remained employed with the Company until the first day
of the calendar month following his or her 65th birthday, 

 

A-3

 

(ii) received
Average Pensionable Pay or Career Average Pay, as the case may be, determined
as of the end of the elimination period under the John Deere Long Term
Disability Plan for Salaried Employees, and (iii) then incurred a
Separation from Service with the Company, except that service as an Officer
shall be determined for the period of time prior to the Disability.

 

(b)           Separation From Service Prior to 1
January 2005.  If a Participant
incurred a Separation from Service due to Disability prior to 1 January 2005,
is entitled to a Plan Benefit based in part on credit for service with the
Company after 31 December 2004 and, as of 1 January 2005, has not
commenced payment of his Plan Benefit, such Plan Benefit shall be paid in a
Lump Sum in accordance with Section A-1.2 or A-1.3; provided, however,
that if the date specified for payment under Section A-1.2 or A-1.3 is
prior to 30 November 2007, such Lump Sum shall be paid on or before 30 November 2007.  The amount of the Participant’s Plan Benefit
shall be determined in accordance with Section 3.2 and Section A-2.4(a).

 

(c)           The provisions of this Section A-2.4
shall be superseded by Section A-2.3 in the event that a Participant’s
death occurs prior to payment of his entire Plan Benefit.

 

A-2.5      Return to Work Following Disability.  If a Participant who has commenced payment of
his Plan Benefit returns to work with the Company following his Separation from
Service due to Disability and is eligible to become a Participant upon such
return to work, such Participant shall begin accruing a new Plan Benefit.  The determination of such Participant’s new
Plan Benefit shall include the period beginning on the date of such
Participant’s initial Separation from Service and ending on his subsequent
Separation from Service following his return to work.  Upon such Participant’s subsequent Separation
from Service, the Participant’s new Plan Benefit shall equal his or her (i) Aggregate
Plan Benefit, less (ii) the Lump Sum value of the Plan Benefit which the
Participant previously received with interest credited from the date of receipt
through the date of subsequent payment using the interest rate described in Section 3.5,
and shall be paid to the Participant in a Lump Sum in accordance with Section A-1.2
or A-1.3, as applicable, based on the date of such subsequent Separation from
Service.  For purposes of this Section A-2.5,
the Participant’s Aggregate Plan Benefit means the Plan Benefit the Participant
would be entitled to receive had he or she remained continuously employed with
the Company from his initial date of hire through the date of the Participant’s
subsequent Separation from Service, recalculated pursuant to Sections 3.2-3.4
based on all service as an Officer and a non-Officer and all compensation paid
by the Company, solely to the extent that such service and compensation are
considered under the Traditional Pension Option or the Contemporary Pension
Option, as applicable.

 

A-4

 

APPENDIX B

 

ARTICLE B-1

MISCELLANEOUS
PROVISIONS

 

B-1.1       Application of this Article.  For purposes of clarification, the provisions
in this Appendix B supplement the provisions in Appendix A, and are effective 1
January 2007 unless otherwise provided.

 

B-1.2       Impact of Vacation.  If a Participant’s Retirement occurs
immediately prior to or during such Participant’s Vacation, then, solely for
purposes of determining the amount of the Plan Benefit for a Participant, such
Participant’s Separation from Service shall be determined in accordance with
the Prior Plan and the Participant shall be eligible to accrue benefits in
accordance with the Plan until such Separation from Service; provided, however,
that solely for purposes of this Section B-1.2, Vacation shall exclude any
day of vacation not used by the Participant to extend his service under the
Qualified Retirement Plan.

 

B-1.3       Impact of Leave of Absence and Special
Paid Leave of Absence.

 

(a)           Leave of Absence.  If a Participant who has commenced payment of
his Plan Benefit returns to work with the Company following his Separation from
Service due to an approved Leave of Absence and is eligible to become a
Participant upon such return to work, such Participant shall begin accruing a
new Plan Benefit.  Upon such Participant’s
subsequent Separation from Service, the Participant’s new Plan Benefit shall
equal his or her (i) Aggregate Plan Benefit, less (ii) the Plan
Benefit which the Participant previously received with interest credited
annually using the interest rate described in Section 3.5, and shall be
paid to the Participant in a Lump Sum in accordance with Section A-1.2 or
A-1.3, as applicable, based on the date of such subsequent Separation from
Service.  For purposes of this Section B-1.3,
the Participant’s Aggregate Plan Benefit means the Participant’s Plan Benefit
determined as though the Participant had never commenced payment of his Plan
Benefit upon the original Separation from Service, recalculated pursuant to
Sections 3.2-3.4 based on all service as an Officer or Executive and a
non-Officer and all compensation paid by the Company, solely to the extent that
such service and compensation are considered under the Traditional Pension
Option or the Contemporary Pension Option, as applicable.

 

(b)           Special Paid Leave of Absence.  Solely for purposes of determining the amount
of such Participant’s Vested Plan Benefit, a Participant who incurs a
Separation from Service by reason of a Special Paid Leave of Absence shall
receive a distribution of his Plan Benefit in a Lump Sum paid in accordance
with Section A-1.3.  The
Participant’s immediate Single Life Annuity, which is then converted into a
Lump Sum in accordance with Section 3.5, shall be determined in accordance
with Section 3.2 as though the Participant (i) had remained employed
with the Company until the expiration of such Participant’s Special Paid Leave
of Absence, (ii) received Average Pensionable Pay or Career Average Pay,
as the case may be, determined as of the date of the Participant’s 

 

B-1

 

commencement of the
Special Paid Leave of Absence, and (iii) then incurred a Separation from
Service with the Company.

 

B-1.4       No Acceleration or Delay.  The Administrator shall not accelerate or
delay payment under the Plan except to the extent that such acceleration
(including as a result of a “change in control” within the meaning of the
default provisions of Section 409A) or delay shall not cause any person to
incur additional taxes, interest or penalties under Section 409A (“Section 409A
Compliance”).

 

ARTICLE B-2

AMENDMENT AND
TERMINATION

 

B-2.1       Amendment and Termination.  Notwithstanding any provision in this Plan to
the contrary, the Board of Directors, the Committee, or the Deere &
Company Management Compensation Committee shall have the unilateral right to
amend, modify or terminate the Plan at any time.  The Vice President of Human Resources of the
Company shall have the unilateral right to amend or modify the Plan to the extent
the Vice President of Human Resources of the Company deems such action to be
necessary or advisable to avoid the imposition on any person of adverse or
unintended tax consequences under Section 409A.  Any determinations made by the Board of
Directors, the Committee, the Management Compensation Committee, or the Vice
President of Human Resources of the Company under this Section B-2.1 shall
be final, conclusive and binding on all persons.

 

B-2.2       Plan Benefit in the Event of
Termination.  With respect to a
Participant’s Plan Benefit, if the Plan is terminated, Plan Benefits shall be
paid in accordance with Appendix A, unless the Board of Directors or the
Committee, in its discretion and in full and complete settlement of the
Company’s obligations under this Plan, causes the Company to distribute the
full amount of a Participant’s then accrued and Vested Plan Benefit to the
Participant in a Lump Sum; provided, that such distribution may be
effected in a manner that will result in Section 409A Compliance.

 

ARTICLE B-3

DEFINITIONS

 

B-3.1       Section References.  All references to sections are, unless
otherwise indicated, references to sections of the Plan, including the
appendices.

 

B-3.2       Terms Defined.  Except as otherwise provided, whenever used
in Appendix A, the following terms shall have the meanings set forth below:

 

(a)           “Annuity” means a Single Life
Annuity or a Joint and Survivor Annuity.

 

(b)           “Committee” means the
Company’s Pension Plan Oversight Committee.

 

B-2

 

(c)           “Joint and Survivor Annuity”
shall have the meaning set forth in the Qualified Retirement Plan.

 

(d)           “Lump Sum” means the actuarial
equivalent of a Participant’s Plan Benefit payable in a single cash lump sum on
the Payment Date.

 

(e)           “Payment Date” means the date
the Participant receives his Plan Benefit, in all cases in accordance with the
applicable provisions of the Plan.

 

(f)            “Plan Benefit” means, as of a
given date, the total benefit payable under the Plan to a Participant,
expressed as a Single Life Annuity in accordance with the rules of Section 3.2,
commencing on the Participant’s Normal Retirement Date or Postponed Retirement
Date, as applicable, that a Participant has accrued under the Plan.

 

(g)           “Prior Plan” means the terms
of the Plan in effect immediately prior to 1 January 2005, as set forth in
the Company’s written documents, rules, practices and procedures applicable to
this Plan.

 

(h)           “Retirement” or “Retire”
means a Separation from Service by a Participant who is then Retirement
Eligible.

 

(i)            “Retirement Eligible” means
eligible for a normal retirement benefit or an early retirement benefit within
the meaning of the terms of the Qualified Retirement Plan in effect as of 1 January 2007.

 

(j)            “Section 409A” means Section 409A
of the Code and the applicable rulings and regulations promulgated thereunder.

 

(k)           “Section 409A Compliance”
has the meaning set forth in Section B-1.4.

 

(l)            “Separation from Service”
means, with respect to a Participant, a separation from service within the
meaning of the default rules of Section 409A; provided that:

 

(1)           for purposes of determining which entities are treated as
a single “service recipient” with the Company, the phrase “at least 20 percent”
shall be substituted for the phrase “at least 80 percent” each place it appears
in Sections 1563(a)(1), (2) and (3) of the Code and Section 1.414(c)-2
of the Treasury Regulations, as permitted under Section 1.409A-1(h)(3) of
the Treasury Regulations; and

 

(2)           a Participant absent from work due to Disability shall
incur a Separation from Service 29 months after the date on which the
Participant was first Disabled.

 

B-3

 

(m)          “Single Life Annuity” means a
Participant’s Plan Benefit payable in monthly installments over the life of the
Participant, commencing as of the Payment Date and ending with the payment due
for the month in which the Participant dies, with no further payments on his
behalf after his death.

 

(n)           “Special Paid Leave of Absence”
has the meaning set forth in the Deere & Company Policy for Special
Paid Leave of Absence for Salaried Employees.

 

(o)           “Termination” means a
Separation from Service by a Participant who is not Retirement Eligible.

 

(p)           “Vacation” means one or more
days, as the case may be, of such vacation to which the Participant is entitled
pursuant to the policies and practices of the Company then in effect and (i) as
of the date of the Participant’s Separation from Service, deferred from a prior
anniversary year and unused as of such Separation from Service, (ii) earned
in the current anniversary year and unused as of such Separation from Service
and (iii) if a Participant’s Vacation described in clause (i) or (ii) of
this definition is used in the anniversary year following the anniversary year
in which such Separation from Service occurs, earned in such following
anniversary year, whether or not used by the Participant.

 

(q)           “Vested Plan Benefit” means the portion of the
Participant’s Plan Benefit that has vested in accordance with Article 3.

 

B-4

 

EXHIBIT I

 

	
   

  	
   

  	
  TITLES AS OF

   

  1 NOVEMBER 1996

  	
   

  	
  OFFICER SINCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hans W. Becherer

  	
   

  	
  Chairman & COO & CEO

  	
   

  	
  26 Apr 1977 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bernard L. Hardiek

  	
   

  	
  President, Worldwide 

  Ag. Equipment Division

  	
   

  	
  26 Aug 1987 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ferdinand F. Korndorf

  	
   

  	
  President, Worldwide 

  Commercial & Consumer 

  Equipment Division

  	
   

  	
  23 Sep 1991 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John K. Lawson

  	
   

  	
  Sr. VP, Engineering, 

  Information & Technology

  	
   

  	
  27 Feb 1985 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eugene L. Schotanus

  	
   

  	
  Executive VP 

  Financial Services

  	
   

  	
  29 Jan 1974 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Joseph W. England

  	
   

  	
  Sr. VP, Worldwide Parts 

  & Corp. Administration

  	
   

  	
  29 Jan 1974 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pierre E. Leroy

  	
   

  	
  President, Worldwide 

  Industrial Equipment Div.

  	
   

  	
  12 Dec 1985 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Michael S. Plunkett

  	
   

  	
  Sr., VP, Engineering, 

  Technology & HR

  	
   

  	
  29 Jan 1980 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frank S. Cottrell

  	
   

  	
  VP, General Counsel 

  & Corporate Secretary

  	
   

  	
  26 Aug 1987 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert W. Lane

  	
   

  	
  Chairman & CEO

  	
   

  	
  16 Jan 1996

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John S. Gault

  	
   

  	
  former VP, Engr., Info, & 

  Tech. 

  GM, Harvester

  	
   

  	
  01 Jan 1994 (Retired)

  

 

I-1

 

	
   

  	
   

  	
  TITLES AS OF

   

  1 NOVEMBER 1996

  	
   

  	
  OFFICER SINCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Glen D. Gustafson

  	
   

  	
  former Comptroller 

  Dir., Bus. Planning

  	
   

  	
  28 Jul 1981 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert W. Porter

  	
   

  	
  Sr. VP, North American 

  Ag. Marketing

  	
   

  	
  16 Nov 1994 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adel A. Zakaria

  	
   

  	
  Executive VP, Global Tractor 

  & Implement Sourcing

  	
   

  	
  01 Apr 1992

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  James D. White

  	
   

  	
  Sr. VP, Manufacturing

  	
   

  	
  26 Aug 1987 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mark C. Rostvold

  	
   

  	
  Sr. VP, Worldwide 

  Commercial & Consumer 

  Equip. Division

  	
   

  	
  26 Aug 1987 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dennis E. Hoffmann

  	
   

  	
  President 

  John Deere Insurance

  	
   

  	
  05 Dec 1990 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Michael P. Orr

  	
   

  	
  President 

  John Deere Credit Company

  	
   

  	
  05 Dec 1990 (Retired)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Richard J. VanBell

  	
   

  	
  President 

  John Deere Health Care

  	
   

  	
  16 Jan 1994 (Retired)

  

 

I-2Exhibit 10.4

 

JOHN DEERE

 

ERISA SUPPLEMENTARY
PENSION BENEFIT PLAN

 

AS AMENDED AND RESTATED
EFFECTIVE:  1 NOVEMBER 1992

 

AS AMENDED 8 DECEMBER
1993:  EFFECTIVE 1 JULY 1993

 

AS AMENDED:  7 DECEMBER 1994

 

AS AMENDED
MAY 1995 – EFFECTIVE 1 JANUARY 1995

 

AS AMENDED 4 DECEMBER
1996 – EFFECTIVE 1 JANUARY 1997

 

AS AMENDED 26
MAY 1999 – EFFECTIVE 26 MAY 1999

 

AS AMENDED 19 JULY 1999
– EFFECTIVE 1 JULY 1999

 

AS AMENDED 12 JANUARY
2000 – EFFECTIVE 1 JANUARY 2000

 

AS AMENDED 31 JULY 2000
– EFFECTIVE 1 JANUARY 2000

 

AMENDED:  29 JANUARY 2002 – EFFECTIVE 1 JANUARY 2002

 

AMENDED:  1 DECEMBER 2005 – EFFECTIVE 1 JANUARY 2005

 

AMENDED:  13 DECEMBER 2007 – EFFECTIVE 1 JANUARY 2007

 

 

Table of
Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I ESTABLISHMENT, PURPOSE AND CONSTRUCTION

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Establishment

  	
  1

  
	
   

  	
  1.2

  	
  Purpose

  	
  1

  
	
   

  	
  1.3

  	
  Effective
  Date and Plan Year

  	
  1

  
	
   

  	
  1.4

  	
  Application
  of Plan

  	
  2

  
	
   

  	
  1.5

  	
  Construction

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II PARTICIPATION

  	
  3

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Eligibility
  to Participate

  	
  3

  
	
   

  	
  2.2

  	
  Effect
  of Transfer

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III SUPPLEMENTARY BENEFITS

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Eligibility
  for Benefit

  	
  4

  
	
   

  	
  3.2

  	
  Amount
  of Benefit

  	
  4

  
	
   

  	
  3.3

  	
  Form of
  Payment and Commencement Date

  	
  4

  
	
   

  	
  3.4

  	
  Death
  Prior to Receipt of Lump Sum

  	
  5

  
	
   

  	
  3.5

  	
  Qualified
  Domestic Relations Order

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV ADMINISTRATION OF PLAN

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Administration

  	
  7

  
	
   

  	
  4.2

  	
  Amendment,
  Modification or Termination

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V MISCELLANEOUS

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Employment
  Rights

  	
  9

  
	
   

  	
  5.2

  	
  Applicable
  Law

  	
  9

  
	
   

  	
  5.3

  	
  Non-Alienation

  	
  9

  
	
   

  	
  5.4

  	
  Withholding
  of Taxes

  	
  9

  
	
   

  	
  5.5

  	
  Funding
  and Rights Against Assets

  	
  9

  
	
   

  	
  5.6

  	
  Effect
  on Other Benefit Plans

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX A

  	
   

  
	
   

  	
  Article A-1
  APPLICATION; PAYMENT OF PLAN BENEFIT AFTER 2006

  	
  A-1

  
	
   

  	
  A-1.1

  	
  Application
  of this Article

  	
  A-1

  
	
   

  	
  A-1.2

  	
  Retirement
  During Calendar Year 2007 or Later

  	
  A-1

  
	
   

  	
  A-1.3

  	
  Termination During Calendar Year 2005 or Later

  	
  A-1

  
	
   

  	
  A-1.4

  	
  Termination Prior to 1
  January 2005

  	
  A-1

  
	
   

  	
  A-1.5

  	
  One-Time Lump Sum.

  	
  A-1

  
	
   

  	
  Article A-2
  DEATH and DISABILITY BENEFITS

  	
  A-2

  
	
   

  	
  A-2.1

  	
  Application of Article A-2

  	
  A-2

  
	
   

  	
  A-2.2

  	
  No Additional Rights Because of Death

  	
  A-2

  
	
   

  	
  A-2.3

  	
  Rules Based on Timing of Death

  	
  A-2

  
	
   

  	
  A-2.4

  	
  Separation from Service Due to Disability

  	
  A-3

  
	
   

  	
  A-2.5

  	
  Return to Work Following Disability

  	
  A-4

  
						

 

i

 

	
  APPENDIX B

  	
   

  
	
   

  	
  Article

  	
  B-1
  MISCELLANEOUS PROVISIONS

  	
  B-1

  
	
   

  	
  B-1.1

  	
  Application of this Article

  	
  B-1

  
	
   

  	
  B-1.2

  	
  Impact of Vacation

  	
  B-1

  
	
   

  	
  B-1.3

  	
  Impact of Leave of Absence and Special Paid Leave of Absence

  	
  B-1

  
	
   

  	
  B-1.4

  	
  No Acceleration
  or Delay

  	
  B-2

  
	
   

  	
  Article

  	
  B-2
  AMENDMENT AND TERMINATION

  	
  B-2

  
	
   

  	
  B-2.1

  	
  Amendment and Termination

  	
  B-2

  
	
   

  	
  B-2.2

  	
  Plan Benefit in the Event of Termination

  	
  B-2

  
	
   

  	
  Article

  	
  B-3
  DEFINITIONS

  	
  B-2

  
	
   

  	
  B-3.1

  	
  Section References

  	
  B-2

  
	
   

  	
  B-3.2

  	
  Terms Defined

  	
  B-2

  

 

ii

 

JOHN DEERE ERISA
SUPPLEMENTARY

PENSION BENEFIT PLAN

 

ARTICLE I  ESTABLISHMENT, PURPOSE AND CONSTRUCTION

 

1.1           Establishment.  Effective 1 November 1985,
Deere & Company established the John Deere Supplementary Pension
Benefit Plan (the “Former Plan”) for the benefit of the salaried employees on
its United States payroll and the salaried employees of its United States
subsidiaries or affiliates that chose to adopt the John Deere Pension Plan for
Salaried Employees (“Salaried Pension Plan”). 
Deere & Company and its United States subsidiaries and affiliates
that have adopted the Salaried Pension Plan (jointly the “Company”) are also
deemed to have adopted the Former Plan. 
The Company amended and restated the Former Plan, and divided it into
two separate plans, effective 1 November 1992.  This John Deere ERISA Supplementary Pension
Benefit Plan (the “Plan”) is one of the two plans which replaced the Former
Plan.  Effective as of 1 January, 2007,
the Plan is amended pursuant to Section 409A of the Code as set forth in
Appendices A and B, which form part of the Plan.  Amendments to the Plan adopted in 2006 and
2007 are intended to align Plan provisions with prior operational changes and
avoid the imposition on any Participant of taxes and interest pursuant to
Section 409A of the Code.

 

1.2           Purpose.  The Company maintains a defined benefit
pension plan, known as the John Deere Pension Plan for Salaried Employees
(“Salaried Pension Plan”), which is intended to be a qualified defined benefit
pension plan which meets the requirements of section 401(a) of the
Internal Revenue Code of 1986 (“Code”). 
Section 415 of the Code limits the benefit which may be paid under
a qualified defined benefit pension plan. 
This Plan is intended to provide benefits which, when combined with the
benefit actually payable under the Salaried Pension Plan, are reasonably
comparable to the benefits which participants in the Salaried Pension Plan
would have received under such plan if there were no limitations imposed by
section 415 of the Code.  This Plan is
intended to qualify as an unfunded “excess benefit plan,” as defined in section
3(36) of the Employee Retirement Income Security Act of 1974 (“ERISA”).

 

1.3           Effective Date and
Plan Year.  This Plan shall be
effective 1 November 1992. 
Participants in the Former Plan who were receiving benefits under the
Former Plan as of 31 October 1992, and who are eligible employees as
defined in section 2.1 below, shall receive the same benefit payments under
this Plan as they were receiving under the Former Plan as of 31
October 1992.  Participants in the
Former Plan who were not receiving benefits as of 31 October 1992, and who
are eligible employees as defined in section 2.1 below, shall have no further
rights under the Former Plan, but shall be entitled to supplementary pension
benefits, if any, only under the terms of this Plan.  The Plan Year shall be the twelve-month
period beginning on 1 November of each year and ending on 31
October of the following year.

 

 

1.4           Application of Plan.  The terms of this Plan are applicable only to
eligible employees as described in Section 2.1 below who (i) become
eligible to receive benefit payments hereunder on or after 1
November 1992, or (ii) were receiving benefit payments under the
Former Plan as of 31 October 1992.

 

                Notwithstanding
any provision of this Plan to the contrary, the provisions of Appendices A and
B shall apply to payment of benefits on or after 31 December 2006 and such
appendices shall supersede the other provisions of the Plan to the extent
necessary to eliminate inconsistencies between such Appendices and such other
provisions of the Plan.

 

1.5           Construction.  Unless the context clearly indicates
otherwise or unless specifically defined herein, all operative terms used in
this Plan shall have the meanings specified in the Salaried Pension Plan, and
words in the masculine gender shall be deemed to include the feminine and
neuter genders and the singular shall be deemed to include the plural and vice
versa.

 

2

 

ARTICLE II   PARTICIPATION

 

2.1           Eligibility to
Participate.  Any employee participating
in the Salaried Pension Plan (or a surviving spouse of such employee) whose
retirement benefit upon termination from employment or death under such plan is
reduced by application of Article I, Section 14, of the Salaried
Pension Plan (or any other provision of the Salaried Pension Plan which limits
benefits under such plan as required by Section 415 of the Code) and who
is not a participant in the John Deere Senior Supplementary Pension Benefit
Plan shall be eligible to participate in this Plan (each such eligible employee
referred to herein as a “Participant”).

 

2.2           Effect of Transfer.  Any employee who is a Participant in this
Plan and who becomes eligible to participate in the John Deere Senior
Supplementary Pension Benefit Plan shall cease to be a Participant in this Plan
upon becoming a participant in the John Deere Senior Supplementary Pension
Benefit Plan.

 

3

 

ARTICLE III   SUPPLEMENTARY BENEFITS

 

3.1           Eligibility for
Benefit.  An eligible employee shall
be entitled to a benefit under this Plan in the event that such eligible
employee’s employment with the Company terminates by reason of death or
retirement, including deferred vested retirement, under the terms of the
Salaried Pension Plan.

 

3.2           Amount of Benefit.  The amount of the supplementary benefit
payable under this Plan shall be the amount by which (A) exceeds
(B) where:

 

(A)  equals the amount of an
employee’s monthly pension benefit or survivor benefit payable under the terms
of the Salaried Pension Plan as in effect on the date of the employee’s
termination, retirement or death, but determined without regard to any
limitation on such benefit imposed in order to comply with the limitation on
benefits contained in section 415 of the Code; and

 

(B)   equals
such employee’s actual monthly pension benefit or survivor benefit payable
under the Salaried Pension Plan as in effect on the date of such employee’s
termination, retirement or death.

 

The
determinations of the amount of (A) and (B) above shall be made using
a single life annuity form.

 

Notwithstanding
the foregoing, effective 1 January 2007, an eligible employee pursuant to
Section 3.1 above shall become entitled to the monthly retirement benefit
described in this Section 3.2 upon his or her Separation from Service (as
defined in Article B-3 of Appendix B); provided, however, that
Section B-1.2, if applicable, shall apply in calculating the amount of the
Participant’s benefit under the Plan, and the time and form of payment shall be
determined in accordance with Appendix A.

 

3.3           Form of Payment
and Commencement Date.  The
supplementary benefit payable under this Plan shall be payable in the same
manner and form as the benefit paid to or with respect to an employee under the
Salaried Pension Plan, and shall automatically commence on or about the same
date as payments under the Salaried Pension Plan.  Such benefits payable under this Plan shall
continue as long as benefits are payable under the Salaried Pension Plan.

 

Alternatively, the
Participant may elect to receive a lump sum payment for all or a portion (in
10% increments from 10% to 90%) of the Retirement benefits payable under this
Plan including the 55% joint and survivor annuity equal to 11% of the
supplementary benefit payable, adjusted for service accrued through 30
June 1993, or 31 December 1993 in the case of employees of John Deere
Credit Company, John Deere Health Care, Inc., or John Deere Insurance
Group.  Written notice of the Participant’s
election to receive a lump sum payment shall be irrevocable, and must be
received by the Company within the twelve (12) 

 

4

 

months prior to payment,
but in no event subsequent to the Participant’s date of retirement.  The lump sum payment shall be made to
Participant twelve (12) months after receipt of notice by the Company but in no
event prior to the Participant’s retirement.

 

Effective beginning 1
January 2002 and thereafter, the lump sum will be calculated using an
interest rate assumption equal to the average yield in September of the
preceding Plan Year on 30-year Treasury Constant Maturities (as published in
October by the Internal Revenue Service) and the mortality table shall be
based upon a fixed blend of 50% male mortality rates and 50% female mortality
rates from the Group Annuity Reserving Table (“GAR”), as set forth in Revenue
Ruling 2001-62, in effect at the beginning of the plan year in which payment is
made.  The age used in the calculation
will be the age of the Participant.

 

3.4           Death Prior to
Receipt of Lump Sum.

 

If an active Participant
or a Participant on Permanent and Total Disability dies after receipt of notice
by the Company pursuant to Section 3.3 of Participant’s irrevocable
election to receive a lump sum payment, but before the expiration of twelve
(12) months after receipt by the Company of such election, a surviving spouse
of the Participant who is eligible for a survivor benefit under the Salaried
Pension Plan will receive a lump sum survivor’s benefit under this Plan.  The 55% surviving spouse lump sum benefit
will be payable no earlier than twelve (12) months following receipt of notice
by the Company of the deceased Participant’s irrevocable election but not
before the first day of the month following eligibility for a surviving spouse
benefit under the Salaried Pension Plan.

 

If a retired Participant
or a Participant on Permanent and Total Disability subsequently retires under
Normal Retirement and dies after receipt of notice by the Company pursuant to
Section 3.3 of Participant’s irrevocable election to receive a lump sum
payment, but before the expiration of twelve (12) months after receipt by the
Company of such election, a surviving spouse of the Participant who is eligible
for a survivor benefit under the Salaried Pension Plan will receive the
Participant’s full lump sum benefit under Section 3.3 of this Plan.  In the event the retired Participant is
unmarried at the date of death or the surviving spouse of the deceased Participant
is not eligible for survivor benefits under the Salaried Pension Plan, the
Participant’s full lump sum benefit will be paid to the deceased Participant’s
estate.  The lump sum benefit will be
payable no earlier than twelve (12) months following receipt of notice by the
Company of the deceased Participant’s irrevocable election.

 

3.5           Qualified Domestic
Relations Order.

 

Distribution is
prohibited under this Plan prior to the Participant’s retirement and, in the
event of a Qualified Domestic Relations Order, the Alternate Payee must 

 

5

 

take distribution as a
single lump sum payment within 180 days following the Participant’s retirement
under this Plan.

 

6

 

ARTICLE IV   ADMINISTRATION OF PLAN

 

4.1           Administration.  This Plan shall be administered by the
Company (the “Administrator”).  The
Administrator shall have the power to construe and interpret this Plan, decide
questions of eligibility and determine the amount, manner and time of payment
of any benefits hereunder.  All
determinations of the Administrator shall be final, binding and conclusive on
all persons.

 

4.2           Amendment,
Modification or Termination.  The
Board of Directors of the Company, or, the Pension Plan Oversight Committee of
the Board may at any time amend or modify this Plan in their sole
discretion.  In addition, the
Deere & Company Management Compensation Committee (“Compensation
Committee”) shall have the authority to approve all amendments or modifications
that:

 

a.             in the Compensation
Committee’s judgment are procedural, technical or administrative, but do not
result in changes in the control and management of the Plan assets; or

 

b.             in the Compensation
Committee’s judgment are necessary or advisable to comply with any changes in
the laws or regulations applicable to this Plan; or

 

c.             in the Compensation
Committee’s judgment are necessary or advisable to implement provisions
conforming to a collective bargaining agreement which has been approved by the
Board of Directors; or

 

d.             in the Compensation
Committee’s judgment will not result in changes to benefit levels exceeding $5
million dollars per amendment or modification during the first full fiscal year
that such changes are effective for this Plan; or

 

e.             are the subject of a
specific delegation of authority from the Board of Directors;

 

provided,
however, that this Plan shall not be amended or modified so as to reduce
or diminish the benefit then currently being paid to any employee or surviving
spouse of any former employee without such person’s consent.  The power to terminate this Plan shall be
reserved to the Board of Directors of Deere & Company.  The procedure for amendment or modification
of this Plan by either the Board of Directors, or, to the extent so authorized,
the Pension Plan Oversight Committee, as the case may be, shall consist
of:  the lawful adoption of a written
amendment or modification to this Plan by majority vote at a validly held
meeting or by unanimous written consent, followed by the filing of such duly
adopted amendment or modification by the Secretary with the official records of
the Company.  If a subsidiary or
affiliate of Deere & Company that has adopted this Plan ceases to be a
subsidiary or affiliate, the participation in this Plan by the employees of such
subsidiary or affiliate shall terminate, and no employees of such former
affiliate or subsidiary shall accrue or be entitled to a benefit under 

 

7

 

this
Plan on and after the date such company ceases to be a subsidiary or affiliate
of Deere & Company (other than former employees who were receiving
benefit payments as of such date).

 

8

 

ARTICLE V   MISCELLANEOUS

 

5.1           Employment
Rights.  Nothing under this Plan
shall be construed to give any employee the right to continue in employment
with the Company or to any benefits not specifically provided herein.

 

5.2           Applicable
Law.  This Plan, to the extent it is
not exempt therefrom, shall be governed and construed in accordance with the
applicable provisions of ERISA.  To the
extent not governed by ERISA, this Plan shall be governed and construed in
accordance with the laws of the State of Illinois, exclusive of conflict laws.

 

5.3           Non-Alienation.  Except as provided in Article VIII, Section 8
of the John Deere Pension Plan for Salaried Employees no right or benefit under
this Plan shall be subject to anticipation, alienation, sale, assignment, pledge,
encumbrance or charge and any attempt to anticipate, alienate, sell, assign,
pledge, encumber or charge the same shall be null and void.  No right or benefit under this Plan shall in
any manner be liable for or subject to the debts, contracts, liabilities or
torts of the person entitled to such benefits except for such claims as may be
made by the Company.

 

5.4           Withholding
of Taxes.  The Company, or its
designee, may withhold from any payment of benefits under this Plan any income,
employment or other taxes required to be withheld, including any taxes for
which the Company or its designee may be liable with respect to the payment of
such benefits.

 

5.5           Funding
and Rights Against Assets.  The
Company shall make all payments due under this Plan in cash from its general
assets and benefits payable under this Plan shall not be funded through the use
of a trust, insurance contracts or otherwise. 
All expenses of administering this Plan shall also be borne by the Company.  Neither participating employees, nor their
surviving spouses, shall have any interest whatsoever in any specific assets of
the Company on account of any benefits payable under this Plan and their rights
to receive such benefits shall be no greater than the rights of any other
unsecured creditor of the Company.

 

5.6           Effect
on Other Benefit Plans.  Amounts
credited or payable under this Plan shall not be considered compensation for
purposes of any qualified retirement plan maintained by the Company.  The treatment of such amounts under any other
plan of the Company shall be determined under the provisions of such plan.

 

9

 

APPENDIX A

 

ARTICLE A-1

APPLICATION; PAYMENT OF PLAN BENEFIT AFTER 2006

 

A-1.1      Application of this Article .  Notwithstanding anything in the Plan to the
contrary, the rules applicable to payment of Plan Benefits for
Participants who, as of 31 December 2006, have not commenced payment are set
forth in this Appendix A.

 

A-1.2      Retirement During Calendar Year 2007 or
Later.  If a Participant Retires
after 31 December 2006, his Vested Plan Benefit shall be distributed in a
Lump Sum with a Payment Date that is the 15th day of the month
following the date that is (a) six months and one day following the date
of his Retirement plus (b) one day for every day of Vacation.  Such Lump Sum shall be calculated using lump
sum equivalency factors for a lump sum which is actuarially equivalent to an
immediate Single Life Annuity payable on the date determined in accordance with
clauses (a) and (b) of this Section A-1.2 and shall be based on
the Participant’s age on the date the Participant Retires plus one day for
every day of Vacation.

 

A-1.3      Termination During Calendar Year 2005
or Later.  If a Participant incurs a
Termination during calendar year 2005 or thereafter, his Vested Plan Benefit
shall be distributed in the form of a Lump Sum with a Payment Date that is the
later of (a) 31 January 2007 and (b) the 15th day of
the month following the date that is six months and one day after the date on
which the Participant incurred a Termination. 
Such Lump Sum shall be calculated using lump sum equivalency factors for
a lump sum which is actuarially equivalent to a deferred Single Life Annuity
payable on the earliest date the Participant would be eligible to receive
unreduced benefits under the Salaried Pension Plan and based on the Participant’s
age on the date of payment.

 

A-1.4      Termination Prior to 1 January 2005.  If a Participant incurred a Termination prior
to 1 January 2005, but as of 31 December 2006 had not yet commenced
payment of his Vested Plan Benefit, such Vested Plan Benefit shall be paid in a
Lump Sum on or before 30 November 2007. 
The amount of the Participant’s Plan Benefit shall be determined in
accordance with Sections 3.2 and 3.3.

 

A-1.5      One-Time Lump Sum.  Effective 1 January 2008, Participants
shall receive an amount equal to the interest that would be credited on their
Account for the period beginning on the date of Separation from Service and
ending on the sixth-month anniversary thereof, determined by using an interest
rate equal to the average yield in September of the preceding Plan Year on
30-year Treasury Constant Maturities (as published in October by the
Internal Revenue Service).  This one-time
lump sum payment shall be paid at the same time as the first distribution of
the Participant’s Vested Plan Benefit under the Plan.

 

Participants
who Separated from Service after 31 December 2004 and before 1 January 2008
shall also receive a one-time lump sum cash payment equal to the amount that
such Participants would have been paid had the preceding paragraph been
effective on 

 

A-1

 

the
date of their Separation from Service, provided that the average yield in September 2007
on 30-year Treasury Constant Maturities (as published in October 2007 by
the Internal Revenue Service) shall be used in determining the amount of such
one-time lump sum payment.  This one-time
lump sum payment shall be paid on or before 29 February 2008, but in
no event earlier than the date that is six months and one day after the date of
the Participant’s Separation from Service.

 

ARTICLE A-2

DEATH AND DISABILITY BENEFITS

 

A-2.1      Application of Article A-2.

 

(A)          Death.  This Article A-2
addresses the survivor benefit or death benefit (in each case, if any) under
this Plan with respect to a Participant who incurs a Separation from Service
due to his death on or after 1 January 2007.

 

(B)           Disability.  This Article A-2 addresses the Payment
Date and the Plan Benefit of a Participant who incurs a Separation from Service
due to his Disability on or after 1 January 2007.

 

A-2.2      No Additional Rights Because of Death.  No survivor or death benefit shall be payable
to any person under this Article A-2 in respect of a Participant unless
the Participant had a Vested Plan Benefit on the date of death.

 

A-2.3      Rules Based on Timing of Death.

 

(A)          Survivor or Death Benefits to
Unmarried Participants.  If a
Participant is not married to a surviving spouse:

 

(i)            as of the date of his Separation from Service and (a) he
is an active employee (i.e., has not incurred a Separation from Service) of the
Company as of the date immediately preceding his Separation from Service and (b) such
Separation from Service is by reason of the Participant’s death, no survivor
benefit or death benefit with respect to such Participant’s Vested Plan
Benefit, if any, shall be payable to any person and such Plan Benefit shall be
forfeited as of the date of death; or

 

(ii)           as of the date of his death and his Separation from
Service occurs prior to the date of death, the survivor benefit or death
benefit with respect to such Participant’s Vested Plan Benefit, if any, shall
be payable to such Participant’s estate in accordance with the time and form of
payment set forth in Section A-2.3(C).

 

(B)           Separation From Service Due to
Death.

 

(i)            If an active Participant (i.e., a Participant who has not incurred a Separation from
Service) who is Retirement Eligible incurs a Separation from Service due to his
death and, as of the date of death, has been married to a Spouse for at least 

 

A-2

 

one
year immediately prior to the date of death, the surviving spouse shall
be paid a single lump sum equal to 55% of the Lump Sum payable to the
Participant had the Participant Retired on the date of his death.  Such Lump Sum shall be calculated using lump
sum equivalency factors for a Single Life Annuity payable immediately based on
the Participant’s age at the date of death. 
Notwithstanding anything in Section A-1.1, A-1.2 or A-1.3 to the
contrary regarding the time or form of payment, such lump sum distribution to
the surviving spouse shall be made on the 15th day of the month
following the month in which the Participant dies.

 

(ii)           If an active Participant who is not
Retirement Eligible incurs a Separation from Service by reason of his death
and, as of the date of death, has been married to a Spouse for at least one
year immediately prior to the date of death, the surviving spouse shall
be paid a single lump sum equal to 55% of the Lump Sum payable to the
Participant had the Participant lived until the earliest date on which he would
be eligible for an unreduced benefit under the Salaried Pension Plan and then
Retired.  Such lump sum payable to the
surviving spouse shall be calculated using the lump sum equivalency factors for
a Lump Sum which is actuarially equivalent to a deferred Single Life Annuity
payable on the earliest unreduced benefits date under the Salaried Pension Plan
had the Participant lived to Retire and based on the Participant’s age at the
date of death.  The Lump Sum payable pursuant to this Section A-2.3(B)(ii) shall
be paid on the 15th day of the month following the month in
which the Participant dies, notwithstanding anything to the contrary in Section A-1.1,
A-1.2 or A-1.3 regarding the time or form of payment.

 

(C)           Death After Separation from
Service and Prior to Payment of Lump Sum. 
If a Participant dies after his Separation from Service but prior to the
receipt of the Lump Sum distribution, such Lump Sum shall be determined and
paid in accordance with Section A-1.2 or A-1.3, as applicable.

 

A-2.4      Separation from Service Due to
Disability.

 

(A)          Separation from Service on or After
1 January 2007.  A Participant who
incurs a Separation from Service due to a Disability on or after 1 January 2007
shall receive a distribution of his Plan Benefit in a Lump Sum paid in
accordance with Section A-1.2 or A-1.3. 
The Participant’s immediate Single Life Annuity, which is then converted
into a Lump Sum in accordance with Section 3.3, shall be determined in
accordance with Section 3.2 as though the Participant (i) had
remained employed with the Company until the first day of the calendar month
following his or her 65th birthday, (ii) received pay,
determined as of the end of the elimination period under the John Deere
Long-Term Disability Plan for Salaried Employees, until the date in (i) above,
and (iii) then incurred a Separation from Service with the Company.

 

(B)           Separation From Service Prior to 1
January 2005.  If a Participant
incurred a Separation from Service due to Disability prior to 1 January 2005,
is entitled to a Plan Benefit based in part on credit for service with the
Company after 31 December 2004 and, as of 1 January 2005, has not
commenced payment of his Plan Benefit, such Plan Benefit shall be paid in a
Lump Sum in accordance with Section A-

 

A-3

 

1.2 or A-1.3; provided
however, that if the date specified for payment under Section A-1.2 or
A-1.3 is prior to 30 November 2007, such Lump Sum shall be paid on or
before 30 November 2007.  The amount
of the Participant’s Plan Benefit shall be determined in accordance with Section 3.2
and Section A-2.4(A).

 

(C)           The provisions of this Section A-2.4
shall be superseded by Section A-2.3 in the event that a Participant’s
death occurs prior to payment of his entire Plan Benefit.

 

A-2.5      Return to Work Following Disability.  If a Participant who has commenced payment of
his Plan Benefit returns to work with the Company following his Separation from
Service due to Disability and is eligible to become a Participant upon such
return to work, such Participant shall begin accruing a new Plan Benefit.  The determination of such Participant’s new
Plan Benefit shall include the period beginning on the date of such
Participant’s initial Separation from Service and ending on his subsequent
Separation from Service following his return to work.  Upon such Participant’s subsequent Separation
from Service, the Participant’s new Plan Benefit shall equal his or her (i) Aggregate
Plan Benefit, less (ii) the Lump Sum value of the Plan Benefit which the
Participant previously received with interest credited from the date of receipt
through the date of subsequent payment using the interest rate described in Section 3.3,
and shall be paid to the Participant in a Lump Sum in accordance with Section A-1.2
or A-1.3, as applicable, based on the date of such subsequent Separation from
Service.  For purposes of this Section A-2.5,
the Participant’s Aggregate Plan Benefit means the Plan Benefit the Participant
would be entitled to receive had he or she remained continuously employed with
the Company from his initial date of hire through the date of the Participant’s
subsequent Separation from Service, recalculated pursuant to Section 3.2
based on all service with the Company and all compensation paid by the Company,
solely to the extent that such service and compensation are considered under
the Salaried Pension Plan.  

 

A-4

 

APPENDIX B

 

ARTICLE B-1

MISCELLANEOUS PROVISIONS

 

B-1.1       Application of this Article.  For purposes of clarification, the provisions
in this Appendix B supplement the provisions in Appendix A, and are effective 1
January 2007 unless otherwise provided.

 

B-1.2       Impact of Vacation.  If a Participant’s Retirement occurs
immediately prior to or during such Participant’s Vacation, then, solely for
purposes of determining the amount of the Plan Benefit for a Participant, such
Participant’s Separation from Service shall be determined in accordance with
the Prior Plan and the Participant shall be eligible to accrue benefits in
accordance with the Plan until such Separation from Service; provided, however,
that solely for purposes of this Section B-1.2, Vacation shall exclude any
day of vacation not used by the Participant to extend his service under the
Salaried Pension Plan.

 

B-1.3       Impact of Leave of Absence and Special
Paid Leave of Absence.

 

(A)          Leave of Absence.  If a Participant who has commenced payment of
his Plan Benefit returns to work with the Company following his Separation from
Service due to an approved Leave of Absence and is eligible to become a
Participant upon such return to work, such Participant shall begin accruing a
new Plan Benefit.  Upon such Participant’s
subsequent Separation from Service, the Participant’s new Plan Benefit shall
equal his or her (i) Aggregate Plan Benefit, less (ii) the Plan
Benefit which the Participant previously received with interest credited
annually using the interest rate described in Section 3.3, and shall be
paid to the Participant in a Lump Sum in accordance with Section A-1.2 or
A-1.3, as applicable, based on the date of such subsequent Separation from
Service.  For purposes of this Section B-1.3,
the Participant’s Aggregate Plan Benefit means the Participant’s Plan Benefit
determined as though the Participant had never commenced payment of his Plan
Benefit upon the original Separation from Service, recalculated pursuant to Section 3.2
based on all service with the Company and all compensation paid by the Company,
solely to the extent that such service and compensation are considered under
the Salaried Pension Plan.

 

(B)           Special Paid Leave of Absence.  Solely for purposes of determining the amount
of such Participant’s Vested Plan Benefit, a Participant who incurs a
Separation from Service by reason of a Special Paid Leave of Absence shall
receive a distribution of his Plan Benefit in a Lump Sum paid in accordance
with Section A-1.3.  The Participant’s
immediate Single Life Annuity, which is then converted into a Lump Sum in
accordance with Section 3.3, shall be determined in accordance with Section 3.2
as though the Participant (i) had remained employed with the Company until
expiration of such Participant’s Special Paid Leave 

 

B-1

 

of Absence (ii) received
pay, determined as of the date of the Participant’s commencement of the Special
Paid Leave of Absence, until the date in (i) above, and (iii) then
incurred a Separation from Service with the Company.

 

B-1.4       No Acceleration or Delay.  The Administrator shall not accelerate or
delay payment under the Plan except to the extent that such acceleration or delay
shall not cause any person to incur additional taxes, interest or penalties
under Section 409A (“Section 409A Compliance”).

 

ARTICLE B-2

AMENDMENT AND TERMINATION

 

B-2.1       Amendment and Termination.  Notwithstanding any provision in this Plan to
the contrary, the Board of Directors, the Committee, or the Deere &
Company Management Compensation Committee shall have the unilateral right to
amend, modify or terminate the Plan at any time.  The Vice President of Human Resources of the
Company shall have the unilateral right to amend or modify the Plan to the
extent the Vice President of Human Resources of the Company deems such action
to be necessary or advisable to avoid the imposition on any person of adverse
or unintended tax consequences under Section 409A.  Any determinations made by the Board of
Directors, the Committee, the Management Compensation Committee, or the Vice
President of Human Resources of the Company under this Section B-2.1 shall
be final, conclusive and binding on all persons.

 

B-2.2       Plan Benefit in the Event of
Termination.  With respect to a
Participant’s Plan Benefit, if the Plan is terminated, Plan Benefits shall be
paid in accordance with Appendix A, unless the Board of Directors or the
Committee, in its discretion and in full and complete settlement of the Company’s
obligations under this Plan, causes the Company to distribute the full amount
of a Participant’s then accrued and Vested Plan Benefit to the Participant in a
Lump Sum; provided, that such distribution may be effected in a manner that
will result in Section 409A Compliance.

 

ARTICLE B-3

DEFINITIONS

 

B-3.1       Section References.  All references to sections are, unless
otherwise indicated, references to sections of the Plan, including the
appendices.

 

B-3.2       Terms Defined.  Except as otherwise provided, whenever used
in Appendix A, the following terms shall have the meanings set forth below:

 

“Annuity”
means a Single Life Annuity or a Joint and Survivor Annuity.

 

“Committee”
means the Company’s Pension Plan Oversight Committee.

 

“Disability”
shall have the same meaning as under the Salaried Pension Plan or the John
Deere Long-Term Disability Plan for Salaried Employees.

 

B-2

 

“Joint and
Survivor Annuity” shall have the meaning set forth in the Salaried Pension
Plan.

 

“Lump Sum”
means the actuarial equivalent of a Participant’s Plan Benefit payable in a
single cash lump sum on the Payment Date.

 

“Payment
Date” means the date the Participant receives his Plan Benefit, in all
cases in accordance with the applicable provisions of the Plan.

 

“Plan
Benefit” means, as of a given date, the total benefit payable under the
Plan to a Participant, expressed as a Single Life Annuity in accordance with
the rules of Section 3.2, commencing on the Participant’s Normal
Retirement Date or Postponed Retirement Date, as applicable, that a Participant
has accrued under the Plan.

 

“Prior Plan”
means the terms of the Plan in effect immediately prior to 1 January 2005,
as set forth in the Company’s written documents, rules, practices and
procedures applicable to this Plan.

 

“Retirement”
or “Retire” means a Separation from Service by a Participant who is then
Retirement Eligible.

 

“Retirement
Eligible” means eligible for a normal retirement benefit or an early retirement
benefit within the meaning of the terms of the Salaried Pension Plan in effect
as of 1 January 2007.

 

“Section 409A”
means Section 409A of the Code and the applicable rulings and regulations
promulgated thereunder.

 

“Section 409A
Compliance” has the meaning set forth in Section B-1.4.

 

“Separation
from Service” means, with respect to a Participant, a separation from
service within the meaning of the default rules of Section 409A; provided
that:

 

for purposes
of determining which entities are treated as a single “service recipient” with
the Company, the phrase “at least 20 percent” shall be substituted for the
phrase “at least 80 percent” each place it appears in Sections 1563(a)(1), (2) and
(3) of the Code and Section 1.414(c)-2 of the Treasury Regulations,
as permitted under Section 1.409A-1(h)(3) of the Treasury
Regulations; and

 

a Participant
absent from work due to Disability shall incur a Separation from Service 29
months after the date on which the Participant was first Disabled.

 

“Single
Life Annuity” means a Participant’s Plan Benefit payable in monthly
installments over the life of the Participant, commencing as of the 

 

B-3

 

Payment Date
and ending with the payment due for the month in which the Participant dies,
with no further payments on his behalf after his death.

 

“Special
Paid Leave of Absence” has the meaning set forth in the Deere &
Company Policy for Special Paid Leave of Absence for Salaried Employees.

 

“Termination”
means a Separation from Service by a Participant who is not Retirement
Eligible.

 

“Vacation”
means one or more days, as the case may be, of such vacation to which the
Participant is entitled pursuant to the policies and practices of the Company
then in effect and (i) as of the date of the Participant’s Separation from
Service, deferred from a prior anniversary year and unused as of such
Separation from Service, (ii) earned in the current anniversary year and
unused as of such Separation from Service and (iii) if a Participant’s
Vacation described in clause (i) or (ii) of this definition is used
in the anniversary year following the anniversary year in which such Separation
from Service occurs, earned in such following anniversary year, whether or not
used by the Participant.

 

“Vested Plan
Benefit” means the portion of the Participant’s Plan
Benefit that has vested in accordance with Article 3.

 

B-4

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