Document:

Change in Control Severance Policy

COMPUTER ASSOCIATES INTERNATIONAL, INC.

CHANGE IN CONTROL SEVERANCE POLICY

                1.   
Purpose. The purpose of the Computer Associates International, Inc. Change in
Control Severance Policy (the “Policy”) is to secure the continued
services of certain senior executives of the Company and to ensure their
continued dedication to their duties in the event of any threat or occurrence of
a Change in Control (as defined in Section 2).  

                2.   
Definitions. As used in this Policy, the following terms shall have the
respective meanings set forth below:  

                (a)   
“Annual Performance Bonus” means the annual cash bonus awarded under
the Company’s incentive plan, as in effect from time to time (as of the
date of adoption of this Policy the “annual performance bonus” within
the meaning of Section 4.4 of the Company’s 2002 Incentive Plan, amended
and restated effective as of March 31, 2004 (the “Company Incentive
Plan”)).  

                (b)   
“Base Salary” means the higher of (i) the Participant’s highest
annual rate of base salary during the twelve-month period immediately prior to
the Participant’s Date of Termination or (ii) the average of the
Participant’s annual base salary earned during the past three (3) completed
fiscal years of the Company immediately preceding the Participant’s Date of
Termination (annualized in the event the Participant was not employed by the
Company (or its affiliates) for the whole of any such fiscal year).  

                (c)   
“Board” means the Board of Directors of the Company and, after a
Change in Control, the “board of directors” of the Parent Corporation
or Surviving Corporation, as the case may be, as defined for purposes of Section
2(f).  

                (d)   
“Bonus Amount” means the higher of (i) the Participant’s target
Annual Performance Bonus for the fiscal year in which the Participant’s
Date of Termination occurs (or if the Participant’s Qualifying Termination
is on account of Good Reason pursuant to a reduction in a Participant’s
compensation or compensation opportunity under Section 2(k)(ii), the
Participant’s target Annual Performance Bonus for the prior fiscal year if
higher) or (ii) the average of the Annual Performance Bonuses earned by the
Participant from the Company (or its affiliates) during the last three (3)
completed fiscal years of the Company (or such shorter period of time during
which the Participant was employed by the Company) immediately preceding the
Participant’s Date of Termination (annualized in the event the Participant
was not employed by the Company (or its affiliates) for the whole of any such
fiscal year).  

                (e)   
“Cause” means (i) the willful and continued failure of the
Participant to perform substantially his duties with the Company (other than any
such failure resulting from the Participant’s incapacity due to physical or
mental illness or any  

such failure subsequent to the
Participant being delivered a notice of termination without Cause by the Company or
delivering a notice of termination for Good Reason to the Company) after a written demand
for substantial performance is delivered to the Participant by or on behalf of the Board
which specifically identifies the manner in which the Board believes that the Participant
has not substantially performed his duties, (ii) the willful engaging by the Participant
in illegal conduct or gross misconduct which is demonstrably and materially injurious to
the Company or its affiliates, (iii) the engaging by the Participant in conduct or
misconduct that materially harms the reputation or financial position of the Company,
(iv) the Participant (x) obstructs or impedes, (y) endeavors to influence, obstruct or
impede or (z) fails to materially cooperate with, an Investigation, (v) the Participant
withholds, removes, conceals, destroys, alters or by other means falsifies any material
which is requested in connection with an Investigation, or attempts to do so or solicits
another to do so, (vi) the commission of a felony by the Participant or (vii) the
Participant is found liable in any SEC or other civil or criminal securities law action
or enters into any cease and desist orders with respect to such action regardless of
whether the Participant admits or denies liability. For purposes of this paragraph (d),
no act or failure to act by the Participant shall be considered “willful” unless
done or omitted to be done by the Participant in bad faith and without reasonable belief
that the Participant’s action or omission was in the best interests of the Company
or its affiliates. Any act, or failure to act, in accordance with authority duly given by
the Board, based upon the advice of counsel for the Company (including counsel employed
by the Company) shall be conclusively presumed to be done, or omitted to be done, by the
Participant in good faith and in the best interests of the Company. Cause shall not exist
unless and until the Company has delivered to the Participant a copy of a resolution duly
adopted by three-quarters (3/4) of the entire Board (excluding the Participant from both
the numerator and denominator if the Participant is a Board member) at a meeting of the
Board called and held for such purpose (after reasonable notice to the Participant and an
opportunity for the Participant, together with counsel, to be heard before the Board),
finding that in the good faith opinion of the Board an event set forth in clauses (i),
(ii), (iii), (iv), (v), (vi) or (vii) has occurred and specifying the particulars thereof
in detail.   

                (f)   
“Change in Control” means the occurrence of any one of the following
events:  

	  	                (i)   
individuals who, on the effective date of the Policy, constitute the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board,
provided that any person becoming a director subsequent to the effective date of the
Policy whose election or nomination for election was approved by a vote of a majority of
the Incumbent Directors then on the Board (either by a specific vote or by approval of
the proxy statement of the Company in which such person is named as a nominee for
director, without written objection to such nomination) shall be an Incumbent Director;
provided, however, that no individual initially elected or nominated as a director of the
Company as a result of an actual or threatened election contest with respect to directors
or as a result of any other actual or threatened solicitation of 

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	  	proxies or consents by
or on behalf of any person other than the Board shall be deemed to be an Incumbent
Director; 

	  	                (ii)   
any “person” (as such term is defined in Section 3(a)(9) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and as used in Sections
13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing 35% or more of the combined voting power of the Company’s
then outstanding securities eligible to vote generally in the election of directors (the
“Company Voting Securities”); provided, however, that the event described in
this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the
following acquisitions: (A) by the Company or any Subsidiary, (B) by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any
Subsidiary, (C) by any underwriter temporarily holding securities pursuant to an
offering of such securities, (D) pursuant to a Non-Qualifying Transaction (as
defined in paragraph (iii)), (E) pursuant to any acquisition by the Participant or
any group of persons including the Participant (or any entity controlled by the
Participant or any group of persons including the Participant); or (F) a transaction
(other than one described in (iii) below) in which Company Voting Securities are acquired
from the Company, if a majority of the Incumbent Directors approve a resolution providing
expressly that the acquisition pursuant to this clause (F) does not constitute a Change
in Control under this paragraph (ii); 

	  	                (iii)   
the consummation of a merger, consolidation, statutory share exchange, reorganization,
sale of all or substantially all the Company’s assets or similar form of corporate
transaction involving the Company or any of its Subsidiaries that requires the approval
of the Company’s stockholders, whether for such transaction or the issuance of
securities in the transaction (a “Business Combination”), unless immediately
following such Business Combination: (A) at least 60% of the total voting power of
(x) the corporation resulting from such Business Combination (the “Surviving
Corporation”), or (y) if applicable, the ultimate parent corporation that
directly or indirectly has beneficial ownership of at least 95% of the voting securities
eligible to elect directors of the Surviving Corporation (the “Parent Corporation”),
is represented by Company Voting Securities that were outstanding immediately prior to
such Business Combination (or, if applicable, is represented by shares into which such
Company Voting Securities were converted pursuant to such Business Combination), and such
voting power among the holders thereof is in substantially the same proportion as the
voting power of such Company Voting Securities among the holders thereof immediately
prior to the Business Combination, (B) no person (other than any employee benefit
plan (or related trust) sponsored or maintained by the Surviving Corporation or the
Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of 35%
or more of the total voting power of the outstanding voting securities eligible to elect
directors of the Parent Corporation (or, if there is 

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	  	no Parent Corporation, the Surviving
Corporation) and (C) at least a majority of the members of the board of directors of
the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation)
following the consummation of the Business Combination were Incumbent Directors at the
time of the Board’s approval of the execution of the initial agreement providing for
such Business Combination (any Business Combination which satisfies all of the criteria
specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying
Transaction” and any Business Combination which does not satisfy all of the criteria
specified in (A) (B) and (C) shall be deemed a “Qualifying Transaction”); or 

	  	                (iv)   
the stockholders of the Company approve a plan of complete liquidation or dissolution of
the Company.  

                Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because
any person acquires beneficial ownership of more than 35% of the Company Voting
Securities as a result of the acquisition of Company Voting Securities by the
Company or its affiliates which reduces the number of Company Voting Securities
outstanding; provided, that if after the consummation of such acquisition
by the Company such person becomes the beneficial owner of additional Company
Voting Securities that increases the percentage of outstanding Company Voting
Securities beneficially owned by such person, a Change in Control of the Company
shall then occur. For purposes of this Change in Control definition,
“corporation” shall include any limited liability company,
partnership, association, business trust and similar organization, “board
of directors” shall refer to the ultimate governing body of such
organization and “director” shall refer to any member of such
governing body. 

                (g)   
“Company” means Computer Associates
International, Inc. 

                (h)   
“Date of Termination” means (i) the effective
date on which the Participant’s employment by the Company terminates as
specified in a prior written notice by the Company or the Participant, as the
case may be, to the other, delivered pursuant to Section 9 or (ii) if the
Participant’s employment by the Company terminates by reason of death, the
date of death of the Participant. 

                (i)   
“Disability” shall mean long-term disability
under the terms of Company’s long-term disability plan, as then in effect.

                (j)   
“Equity Incentive Compensation” means all
equity-based compensation (including stock options and restricted stock) awarded
under the Company’s incentive plan, as in effect from time to time (as of
the date of adoption of this Policy the “restricted stock,”
“stock options” and “other equity-based awards” within the
meaning of Sections 4.5, 4.6 and 4.7, respectively, of the Company Incentive
Plan). 

                (k)   
“Good Reason” means, without the
Participant’s express written consent, the occurrence of any of the
following events after a Change in Control: 

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	  	                (i)   
(A) any change in the duties, responsibilities or status (including reporting
responsibilities) of the Participant that is inconsistent in any material and
adverse respect with the Participant’s position(s), duties,
responsibilities or status with the Company immediately prior to such Change in
Control (including any material and adverse diminution of such duties or
responsibilities); provided, however, that Good Reason shall not
be deemed to occur upon a change in duties, responsibilities (other than
reporting responsibilities) or status that is solely and directly a result of
the Company no longer being a publicly traded entity and does not involve any
other event set forth in this Section 2(k) or (B) a material and adverse change
in the Participant’s titles or offices (including, if applicable,
membership on the Board) with the Company as in effect immediately prior to such
Change in Control; 

	  	                (ii)   
a more than 10% reduction by the Company in the Participant’s rate of
annual base salary or Annual Performance Bonus, Long-Term Performance Bonus or
Equity Incentive Compensation target opportunities (including any material and
adverse change in the formula for such targets) as in effect immediately prior
to such Change in Control; 

	  	                (iii)   
the failure of the Company to (A) continue in effect any significant employee
benefit plan, compensation plan, welfare benefit plan or material fringe benefit
plan in which the Participant is participating immediately prior to such Change
in Control or the taking of any action by the Company which would adversely
affect the Participant’s participation in or materially reduce the
Participant’s benefits under any such plan, unless the Participant is
permitted to participate in other plans providing the Participant with
substantially equivalent benefits in the aggregate (at substantially equivalent
or lower cost with respect to welfare benefit plans), or (B) provide the
Participant with paid vacation in accordance with the most favorable vacation
policies of the Company as in effect for the Participant immediately prior to
such Change in Control (including the crediting of all service for which the
Participant had been credited under such vacation policies prior to the Change
in Control); or 

	  	                (iv)   
the failure of the Company to obtain the assumption of the Company’s
obligations hereunder from any successor as contemplated in Section 8(b).

                An
isolated, insubstantial and inadvertent action taken in good faith and which is remedied
by the Company within ten (10) days after receipt of notice thereof given by the
Participant shall not constitute Good Reason. The Participant’s right to terminate
employment for Good Reason shall not be affected by the Participant’s incapacities
due to mental or physical illness and the Participant’s continued employment shall
not constitute consent to, or a waiver of rights with respect to, any event or condition
constituting Good Reason. 

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                (l)   
“Home Country” shall mean a Participant’s
country of residence immediately before the Participant commenced employment
with the Company. 

                (m)   
“Investigation” means an investigation authorized
by the Board, a self-regulatory organization empowered with self-regulatory
responsibilities under federal or state laws or a governmental department or
agency. 

                (n)   
“Long-Term Performance Bonus” means the long-term
bonus awarded under the Company’s incentive plan, as in effect from time to
time (as of the date of adoption of this Policy the “long-term performance
bonus” within the meaning of Section 4.5 of the Company Incentive Plan).

                (o)   
“Participant” means each of the senior executives
of the Company who are selected by the Board for coverage by this Policy and
identified on Schedules A, B and C from time to time. 

                (p)   
“Potential Change in Control” means the execution
or entering into of any agreement by the Company the consummation of which can
be expected to be a Qualifying Transaction. 

                (q)   
“Qualifying Termination” means a termination of
the Participant’s employment (i) by the Company other than for Cause or
(ii) by the Participant for Good Reason. Termination of the Participant’s
employment on account of death, Disability or Retirement shall not be treated as
a Qualifying Termination. Notwithstanding the preceding sentence, the death of
the Participant after notice of termination for Good Reason or without Cause has
been validly provided shall be deemed to be a Qualifying Termination.

                (r)   
“Retirement” means the Participant’s
mandatory retirement (not including any mandatory early retirement) in
accordance with the Company’s retirement policy generally applicable to its
salaried employees, as in effect immediately prior to the Change in Control, or
in accordance with any retirement arrangement established with respect to the
Participant with the Participant’s written consent. 

                (s)   
“Subsidiary” means any corporation or other
entity in which the Company has a direct or indirect ownership interest of 50%
or more of the total combined voting power of the then outstanding securities or
interests of such corporation or other entity entitled to vote generally in the
election of directors (or members of any similar governing body) or in which the
Company has the right to receive 50% or more of the distribution of profits or
50% of the assets or liquidation or dissolution. 

                (t)   
“Termination Period” means the period of time
beginning with a Change in Control and ending two (2) years following such
Change in Control. Notwithstanding anything in this Policy to the contrary, if
(i) the Participant’s employment is terminated prior to a Change in
Control (or, if applicable, a Potential Change of Control) for reasons that
would have constituted a Qualifying Termination if 

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they had occurred following a
Change in Control; (ii) the Participant reasonably demonstrates that such
termination (or Good Reason event) was at the request of a third party who had
indicated an intention or taken steps reasonably calculated to effect a Change
in Control; and (iii) a Change in Control (or a Potential Change in
Control) involving such third party (or a party competing with such third party
to effectuate a Change in Control) does occur within six (6) months from the
date of such termination (or, in the case of a Potential Change in Control, such
Potential Change in Control occurs within three (3) months of such termination),
then for purposes of this Policy, the date immediately prior to the date of such
termination of employment or event constituting Good Reason shall be treated as
a Change in Control. For purposes of determining the timing of payments
and benefits to the Participant under Section 4, the date of the actual
Change in Control (or, if applicable, the Potential Change of Control) shall be
treated as the Participant’s Date of Termination under Section 2(h),
and for purposes of determining the amount of payments and benefits owed
to the Participant under Section 4, the date the Participant’s
employment is actually terminated shall be treated as the Participant’s
Date of Termination under Section 2(h). 

                3.   
Eligibility. The Board shall determine in its sole
discretion which senior executives of the Company shall be Participants and
whether a Participant shall be listed on Schedule A, B or C, and the Board may
remove the name of any senior executive from Schedule A, B or C and
participation in this Policy at any time in its sole discretion;
provided, however, that a Participant may not be removed from
Schedule A, B or C without his or her prior written consent within the two-year
period after a Change in Control or within the period of time beginning on a
date three (3) months prior to a Potential Change in Control and ending on the
termination of the agreement that constituted the Potential Change in Control.
The Board may delegate its authority to identify the Participants on Schedule A,
B or C and to remove a Participant from Schedule A, B or C to the Compensation
and Human Resource Committee (or any successor committee) of the Board.

                4.   
Payments Upon Termination of Employment. If during the
Termination Period the employment of the Participant is terminated pursuant to a
Qualifying Termination, then, subject to the Participant’s execution of a
Separation Agreement and Release in the form attached to this Policy as
Exhibit A (the “Separation Agreement and
Release”), the Company shall provide to the Participant:

                (a)   
within ten (10) days following the Date of Termination (or, if later, the
execution by the Participant of the Separation Agreement and Release), a lump
sum cash payment equal to the result of multiplying (i) the sum of
(A) the Participant’s Base Salary, plus (B) the
Participant’s Bonus Amount by (ii) either 2.99 for a Participant
identified on Schedule A, or 2.00 for a Participant identified on Schedule B or
1.00 for a Participant identified on Schedule C; and 

                (b)   
within ten (10) days following the Date of Termination (or, if later, the
execution by the Participant of the Separation Agreement and Release), a cash

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payment equal to the Participant’s target Annual Performance Bonus for the
fiscal year in which the Participant’s Date of Termination occurs,
multiplied by a fraction the numerator of which shall be the number of days the
Participant was employed by the Company during the fiscal year in which the Date
of Termination occurred and the denominator of which is 365; and 

                (c)   
within ten (10) days following the Date of Termination (or, if later, the
execution by the Participant of the Separation Agreement and Release), a cash
payment equal to the Participant’s target Long-Term Performance Bonus for
any incomplete performance cycle(s) as of the Participant’s Date of
Termination, multiplied by a fraction the numerator of which shall be the number
of days the Participant was employed by the Company during the applicable
performance cycle and the denominator of which shall be the total number of days
in the performance cycle; and 

                (d)   
within ten (10) days following the Date of Termination (or, if later, the
execution by the Participant of the Separation Agreement and Release), a cash
payment equal to the Company’s monthly premium cost of health care for
Participant and/or the Participant’s family at the Date of Termination,
multiplied by eighteen (18); and 

                (e)   
for a period of one (1) year following the Participant’s Date of
Termination, the Company shall make outplacement services available to the
Participant in accordance with its outplacement policy in effect immediately
before the Change in Control (or if no such policy is in effect, the Participant
may choose a provider of outplacement services, provided that the total
cost of such outplacement services for the Participant shall not exceed $10,000
USD); and 

                (f)   
if on the Date of Termination the Participant is working in a country other than
the Participant’s Home Country and the Participant wishes to relocate to
such Participant’s Home Country within one (1) year following the Date of
Termination, the Company shall provide relocation benefits to the Participant
and his or her dependants in accordance with the Company’s relocation
program as in effect immediately before the Change in Control (or if no such
program is in effect, the Company shall reimburse the Participant for reasonable
relocation benefits incurred by the Participant and his or her dependants in
returning to the Participant’s Home Country to the extent that such costs
do not exceed $75,000 USD); and 

                (g)   
to the extent provided in Appendix A, if the Participant is subject to the
excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Excise Tax”), a gross-up payment in
accordance with the provisions of Appendix A. 

                Except
as otherwise expressly provided pursuant to this Policy, this Policy shall be construed
and administered in a manner which avoids duplication of compensation and benefits which
may be provided under any other plan, program, policy, or other 

-8- 

arrangement or individual
contract. In the event a Participant is covered by any other plan, program, policy,
individually negotiated agreement or other arrangement, in effect as of his or her Date of
Termination, that may duplicate the payments and benefits provided for in this Section 4,
the Board is specifically empowered to reduce or eliminate the duplicative benefits
provided for under the Policy. 

                5.   
Withholding Taxes. The Company may withhold from all
payments due to the Participant (or his beneficiary or estate) hereunder all
taxes which, by applicable federal, state, local or other law, the Company is
required to withhold therefrom. 

                6.   
Reimbursement of Expenses. Except as provided in
Section 16(a) of a Participant’s Employment and Confidentiality
Agreement, if any contest or dispute shall arise under this Policy involving
termination of a Participant’s employment with the Company or involving the
failure or refusal of the Company to perform fully in accordance with the terms
hereof, the Company shall reimburse the Participant on a current basis for all
reasonable legal fees and related expenses, if any, incurred by the Participant
in connection with such contest or dispute (regardless of the result thereof),
together with interest in an amount equal to the prime rate as reported in
The Wall Street Journal, but in no event higher than the maximum legal
rate permissible under applicable law, such interest to accrue thirty (30) days
from the date the Company receives the Participant’s statement for such
fees and expenses through the date of payment thereof, regardless of whether or
not the Participant’s claim is upheld by a court of competent jurisdiction
or an arbitration panel; provided, however, that the Participant
shall be required to repay immediately any such amounts to the Company to the
extent that a court or an arbitration panel issues a final and non-appealable
order setting forth the determination that the position taken by the Participant
was frivolous or advanced by the Participant in bad faith. 

                7.   
Scope of Policy. Nothing in this Policy shall be deemed to
entitle the Participant to continued employment with the Company or its
Subsidiaries, and if a Participant’s employment with the Company shall
terminate prior to a Change in Control, the Participant shall have no further
rights under this Policy (except as otherwise provided hereunder);
provided, however, that any termination of a Participant’s
employment during the Termination Period shall be subject to all of the
provisions of this Policy. 

                8.   
Successors; Binding Agreement. 

                (a)   
This Policy shall not be terminated by any Business Combination. In the event of
any Business Combination, the provisions of this Policy shall be binding upon
the Surviving Corporation, and such Surviving Corporation shall be treated as
the Company hereunder. 

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                (b)   
The Company agrees that in connection with any Business Combination, it will
cause any successor entity to the Company unconditionally to assume all of the
obligations of the Company hereunder. Failure of the Company to obtain such
assumption prior to the effectiveness of any such Business Combination that
constitutes a Change in Control, shall be a breach of this Policy and shall
constitute Good Reason hereunder and shall entitle the Participant to
compensation and other benefits from the Company in the same amount and on the
same terms as the Participant would be entitled hereunder if the
Participant’s employment were terminated following a Change in Control by
reason of a Qualifying Termination. For purposes of implementing the foregoing,
the date on which any such Business Combination becomes effective shall be
deemed the date Good Reason occurs, and shall be the Date of Termination if
requested by a Participant. 

                (c)   
The benefits provided under this Policy shall inure to the benefit of and be
enforceable by the Participant’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If the Participant shall die while any amounts would be payable to the
Participant hereunder had the Participant continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of
this Policy to such person or persons appointed in writing by the Participant to
receive such amounts or, if no person is so appointed, to the Participant’s
estate. 

                9.   
Notice. (a) For purposes of this Policy, all notices and
other communications required or permitted hereunder shall be in writing and
shall be deemed to have been duly given when delivered or five (5) days after
deposit in the United States mail, certified and return receipt requested,
postage prepaid, addressed as follows: 

                If
to the Participant:  the address listed as the Participant’s address in the Company’s
personnel files.  

                If
to the Company:

                Computer
Associates International, Inc.

                Attention: Corporate Secretary

                One Computer Associates Plaza

                Islandia, NY 11749 

or to such other address as
either party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

                (b)   
A written notice of the Participant’s Date of Termination by the Company or
the Participant, as the case may be, to the other, shall (i) indicate the
specific termination provision in this Policy relied upon, (ii) to the extent
applicable, set forth in 

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reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Participant’s employment under
the provision so indicated and (iii) specify the termination date (which date
shall be not less than fifteen (15) nor more than sixty (60) days after the
giving of such notice). The failure by the Participant or the Company to set
forth in such notice any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Participant or the Company
hereunder or preclude the Participant or the Company from asserting such fact or
circumstance in enforcing the Participant’s or the Company’s rights
hereunder. 

                10.   
Full Settlement; Resolution of Disputes and Costs.

                (a)   
The Company’s obligation to make any payments provided for in this Policy
and otherwise to perform its obligations hereunder shall be in lieu and in full
settlement of all other severance payments to the Participant under any other
severance or employment agreement between the Participant and the Company, and
any severance plan of the Company. In no event shall the Participant be
obligated to seek other employment or take other action by way of mitigation of
the amounts payable to the Participant under any of the provisions of this
Policy and, except as provided in the Separation Agreement and Release, such
amounts shall not be reduced whether or not the Participant obtains other
employment. 

                (b)   
Any dispute or controversy arising under or in connection with this Policy shall
be settled exclusively by arbitration in New York by three arbitrators in
accordance with the commercial arbitration rules of the American Arbitration
Association (“AAA”) then in effect. One
arbitrator shall be selected by the Company, the other by the Participant and
the third jointly by these arbitrators (or if they are unable to agree within
thirty (30) days of the commencement of arbitration the third arbitrator will be
appointed by the AAA). Judgment may be entered on the arbitrators’ award in
any court having jurisdiction. In the event of any such dispute or controversy
arising during a Termination Period, the Company shall bear all costs and
expenses arising in connection with any arbitration proceeding on the same terms
as set forth in Section 6 of this Policy. Notwithstanding anything in this
Policy to the contrary, any court, tribunal or arbitration panel that
adjudicates any dispute, controversy or claim arising between a Participant and
the Company, or any of their delegates or successors, in respect of a
Participant’s Qualifying Termination, will apply a de novo
standard of review to any determinations made by such person. Such
de novo standard shall apply notwithstanding the grant of full
discretion hereunder to any such person or characterization of any such decision
by such person as final, binding or conclusive on any party. 

                11.   
Employment with Subsidiaries. Employment with the Company
for purposes of this Policy shall include employment with any Subsidiary.

                12.   
Survival. The respective obligations and benefits afforded
to the Company and the Participant as provided in Sections 4 (to the extent that
payments or 

-11- 

benefits are owed as a result of a termination of employment that
occurs during the term of this Policy) 5, 6, 8(c) and 10 shall survive the
termination of this Policy. 

                13.   
GOVERNING LAW; VALIDITY. THE INTERPRETATION, CONSTRUCTION
AND PERFORMANCE OF THIS POLICY SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
THE PRINCIPLE OF CONFLICTS OF LAWS, AND APPLICABLE FEDERAL LAWS. THE INVALIDITY
OR UNENFORCEABILITY OF ANY PROVISION OF THIS POLICY SHALL NOT AFFECT THE
VALIDITY OR ENFORCEABILITY OF ANY OTHER PROVISION OF THIS POLICY, WHICH OTHER
PROVISIONS SHALL REMAIN IN FULL FORCE AND EFFECT. 

                14.   
Amendment and Termination. The Board may amend or terminate
the Policy at any time; provided, however, that during the period
commencing on a Change in Control and ending on the second anniversary of the
Change in Control, the Policy may not be amended or terminated by the Board in
any manner which is materially adverse to the interests of any Participant then
listed on Schedule A, B or C without the prior written consent of such
Participant; provided, further, that any termination or amendments
to the Policy that are adverse to the interests of any Participant then listed
on Schedule A, B or C, and that occur during the period of time beginning on a
date three (3) months prior to a Potential Change in Control and ending on the
termination of the agreement that constituted the Potential Change in Control,
shall be void. 

                15.   
Interpretation and Administration. The Policy shall be
administered by the Board. The Board may delegate any of its powers under the
Policy to the Compensation and Human Resource Committee of the Board (or any
successor committee). The Board or the Compensation and Human Resource Committee
(or any successor committee) shall have the authority (i) to exercise all of the
powers granted to it under the Policy, (ii) to construe, interpret and implement
the Policy, (iii) to prescribe, amend and rescind rules and regulations relating
to the Policy, (iv) to make all determinations necessary or advisable in
administration of the Policy and (v) to correct any defect, supply any omission
and reconcile any inconsistency in the Policy. Actions of the Board or the
Compensation and Human Resource Committee (or any successor committee) shall be
taken by a majority vote of its members. 

                16.   
Claims and Appeals. Participants may submit claims for
benefits by giving notice to the Company pursuant to Section 9 of this Policy.
If a Participant believes that he or she has not received coverage or benefits
to which he or she is entitled under the Policy, the Participant may notify the
Board in writing of a claim for coverage or benefits. If the claim for coverage
or benefits is denied in whole or in part, the Board shall notify the applicant
in writing of such denial within thirty (30) days (which may be extended to
sixty (60) days under special circumstances), with such notice setting forth:
(i) the specific reasons for the denial; (ii) the Policy provisions upon which
the denial is 

-12- 

based; (iii) any additional
material or information necessary for the applicant to perfect his or her claim;
and (iv) the procedures for requesting a review of the denial. Upon a denial of
a claim by the Board, the Participant may: (i) request a review of the denial by
the Board or, where review authority has been so delegated, by such other person
or entity as may be designated by the Board for this purpose; (ii) review any
Policy documents relevant to his or her claim; and (iii) submit issues and
comments to the Board or its delegate that are relevant to the review. Any
request for review must be made in writing and received by the Board or its
delegate within sixty (60) days of the date the applicant received notice of the
initial denial, unless special circumstances require an extension of time for
processing. The Board or its delegate will make a written ruling on the
applicant’s request for review setting forth the reasons for the decision
and the Policy provisions upon which the denial, if appropriate, is based. This
written ruling shall be made within thirty (30) days of the date the Board or
its delegate receives the applicant’s request for review unless special
circumstances require an extension of time for processing, in which case a
decision will be rendered as soon as possible, but not later than sixty (60)
days after receipt of the request for review. All extensions of time permitted
by this Section 16 will be permitted at the sole discretion of the Board or its
delegate. If the Board does not provide the Participant with written notice of
the denial of his or her appeal, the Participant’s claim shall be deemed
denied. 

                17.   
Type of Policy. This Policy is intended to be, and shall be
interpreted as an unfunded employee welfare plan under Section 3(1) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
and Section 2520.104-24 of the Department of Labor Regulations, maintained
primarily for the purpose of providing employee welfare benefits, to the extent
that it provides welfare benefits, and under Sections 201, 301 and 401 of ERISA,
as a plan that is unfunded and maintained primarily for the purpose of providing
deferred compensation, to the extent that it provides such compensation, in each
case for a select group of management or highly compensated employees.

                18.   
Nonassignability. Benefits under the Policy may not be
assigned by the Participant. The terms and conditions of the Policy shall be
binding on the successors and assigns of the Company. 

                19.   
Effective Date. The Policy shall be effective as of October
18, 2004. 

-13- 

Schedule A

(2.99 Multiple)

Permanent Chief Executive Officer (n/a)

Executive Vice President and Chief Operating Officer (Jeff Clarke)

Permanent Chief Financial Officer (n/a)

[Employees may be added or eliminated from time to time]

Schedule B

(2.00 Multiple)

Executive Vice President and General Counsel (Kenneth Handal)

Executive Vice President of Product Development and Research (Mark Barrenechea)

Executive Vice President of Partner Advocacy and Indirect Sales (Gary Quinn)

Executive Vice President of Worldwide Sales (Gregory Corgan)

[Employees may be added or eliminated from time to time]

Schedule C

(1.00 Multiple)

Executive Vice President of eTrust (Russell Artzt)

Senior Vice President of CA Technology Services (Una O’Neill)

Senior Vice President and Chief Technology Officer (Yogesh Gupta)

[Employees may be added or eliminated from time to time]

Appendix A 

Additional
Reimbursement Payments by the Company 

                (a)   
Anything in this Policy to the contrary notwithstanding, in the event it shall
be determined that any payment, award, benefit or distribution (or any
acceleration of any payment, award, benefit or distribution) by the Company (or
any of its affiliated entities) or any entity which effectuates a Change in
Control (or any of its affiliated entities) to or for the benefit of the
Participant (whether pursuant to the terms of this Policy or otherwise, but
determined without regard to any additional payments required under this
Appendix A) (the “Payments”) would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended (the “Code”), or any interest
or penalties are incurred by the Participant with respect to such excise tax
(such excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”),
then the Company shall pay to the Participant an additional payment (a
“Reimbursement Payment”) in an amount such that
after payment by the Participant of all taxes (including any Excise Tax) imposed
upon the Reimbursement Payment, the Participant retains an amount of the
Reimbursement Payment equal to the Excise Tax imposed upon the Payments. For
purposes of determining the amount of the Reimbursement Payment, the Participant
shall be deemed to (i) pay federal income taxes at the highest marginal
rates of federal income taxation for the calendar year in which the
Reimbursement Payment is to be made and (ii) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in
which the Reimbursement Payment is to be made, net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and
local taxes. 

                Notwithstanding
the foregoing provisions of this Appendix A, if it shall be determined that the
Participant is entitled to a Reimbursement Payment, but that the Payments would not be
subject to the Excise Tax if the Payments were reduced by an amount that is no more than
10% of the portion of the Payments that would be treated as “parachute payments”under
Section 280G of the Code, then the amounts payable to the Participant under this Policy
shall be reduced (but not below zero) to the maximum amount that could be paid to the
Participant without giving rise to the Excise Tax (the “Safe Harbor Cap”),
and no Reimbursement Payment shall be made to the Participant. The reduction of the
amounts payable hereunder, if applicable, shall be made by reducing first the payments
under Section 4(a), unless an alternative method of reduction is elected by the
Participant. For purposes of reducing the Payments to the Safe Harbor Cap, only amounts
payable under this Policy (and no other Payments) shall be reduced. If the reduction of
the amounts payable hereunder would not result in a reduction of the Payments to the Safe
Harbor Cap, no amounts payable under this Policy shall be reduced pursuant to this
provision.  

                (b)   
Subject to the provisions of Paragraph (a), all determinations required to be
made under this Appendix A, including whether and when a Reimbursement Payment
is required, the amount of such Reimbursement Payment, the amount of any Option
Redetermination (as defined below), the reduction of the Payments to the Safe
Harbor Cap and the assumptions to be utilized in arriving at such
determinations, shall be made by a public accounting firm that is retained by
the Company as of the date immediately prior to the Change in Control (the
“Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and the Participant within fifteen
(15) business days of the receipt of notice from the Company or the Participant
that there has been a Payment, or such earlier time as is requested by the
Company (collectively, the “Determination”). For
the avoidance of doubt, the Accounting Firm may use the Option Redetermination
amount in determining the reduction of the Payments to the Safe Harbor Cap.
Notwithstanding the foregoing, in the event (i) the Board shall determine prior
to the Change in Control that the Accounting Firm is precluded from performing
such services under applicable auditor independence rules or (ii) the Audit
Committee of the Board determines that it does not want the Accounting Firm to
perform such services because of auditor independence concerns or (iii) the
Accounting Firm is serving as accountant or auditor for the person(s) effecting
the Change in Control, the Board shall appoint another nationally recognized
public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company,
and the Company shall enter into any agreement reasonably requested by the
Accounting Firm in connection with the performance of the services hereunder.
The Reimbursement Payment under this Appendix A with respect to any Payments
shall be made no later than thirty (30) days following such Payment. If the
Accounting Firm determines that no Excise Tax is payable by a Participant, it
shall furnish the Participant with a written opinion to such effect, and to the
effect that failure to report the Excise Tax, if any, on the Participant’s
applicable federal income tax return will not result in the imposition of a
negligence or similar penalty. In the event the Accounting Firm determines that
the Payments shall be reduced to the Safe Harbor Cap, it shall furnish the
Participant with a written opinion to such effect. The Determination by the
Accounting Firm shall be binding upon the Company and the Participant.

                As
a result of the uncertainty in the application of Section 4999 of the Code at
the time of the Determination, it is possible that Reimbursement Payments which
will not have been made by the Company should have been made
(“Underpayment”) or Reimbursement Payments are
made by the Company which should not have been made
(“Overpayment”), consistent with the calculations
required to be made hereunder. In the event the amount of the Reimbursement
Payment is less than the amount necessary to reimburse the Participant

A-2 

for the Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment (together with interest at the rate provided in
Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or
for the benefit of the Participant. In the event the amount of the Reimbursement
Payment exceeds the amount necessary to reimburse the Participant for
the Excise Tax, the Accounting Firm shall determine the amount of the
Overpayment that has been made and any such Overpayment (together with interest
at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid
by the Participant (to the extent the Participant has received a refund if the
applicable Excise Tax has been paid to the Internal Revenue Service) to or for
the benefit of the Company. The Participant shall cooperate, to the extent his
or her expenses are reimbursed by the Company, with any reasonable
requests by the Company in connection with any contests or disputes with the
Internal Revenue Service in connection with the Excise Tax. In the event that
the Company makes a Reimbursement Payment to the Participant and subsequently
the Company determines that the value of any accelerated vesting of stock
options held by the Participant shall be redetermined within the context of
Treasury Regulation §1.280G-1 Q/A 33 (the “Option
Redetermination”), the Participant shall (i) file with the
Internal Revenue Service an amended federal income tax return that claims a
refund of the overpayment of the Excise Tax attributable to such Option
Redetermination and (ii) promptly pay the refunded Excise Tax to the
Company; provided that the Company shall pay all reasonable professional
fees incurred in the preparation of the Participant’s amended federal
income tax return. If the Option Redetermination occurs in the same year that
the Reimbursement Payment is included in the Participant’s taxable income,
then in addition to returning the refund to the Company, the Participant will
also promptly return to the Company any tax benefit realized by the return of
such refund and the return of the additional tax benefit payment (all
determinations pursuant to this sentence shall be made by the Accounting
Firm). In the event that amounts payable to the Participant under this
Policy were reduced pursuant to the second paragraph of Paragraph (a) and
subsequently the Participant determines there has been an Option Redetermination
that reduces the value of the Payments attributable to such options, the Company
shall promptly pay to the Participant any amounts payable under this Policy that
were not previously paid solely as a result of the second paragraph of Paragraph
(a) up to the Safe Harbor Cap. 

A-3

Exhibit A

FORM OF CIC SEPARATION AGREEMENT AND RELEASE (HEREIN

“AGREEMENT”)

                Computer
Associates International, Inc. (the “Company”) and _______________ (“Executive”)
agree as follows: 

        1.   
Executive’s employment with the Company will terminate effective
[Date]. 

        2.   
Executive agrees to make himself reasonably available to the Company to respond
to requests by the Company for information concerning litigation, regulatory
inquiry or investigation, involving facts or events relating to the Company that
may be within his knowledge. Executive will cooperate fully with the Company in
connection with any and all future litigation or regulatory proceedings brought
by or against the Company to the extent the Company reasonably deems
Executive’s cooperation necessary. Executive will be entitled to
reimbursement of reasonable out-of-pocket expenses (not including counsel fees)
incurred in connection with fulfilling his obligations under this Section 2.

        3.   
In consideration of Executive’s undertakings herein, the Company will pay
an amount equal to $____________ in accordance with Section 4 of the
Company’s Change in Control Severance Policy (the “CIC Severance
Policy”), less required deductions (including, but not limited to, federal,
state and local tax withholdings) as separation/severance pay (the
“Severance Payment”). The Severance Payment will be paid in accordance
with the CIC Severance Policy. Payment of the Severance Payment is contingent
upon the execution of this Agreement by Executive and Executive’s
compliance with all terms and conditions of this Agreement and the CIC Severance
Policy. Executive agrees that if this Agreement does not become effective, the
Company shall not be required to make any further payments to Executive pursuant
to this Agreement or the CIC Severance Policy and shall be entitled to recover
all payments already made by it (including interest thereon). 

        4.   
Executive understands and agrees that any amounts that Executive owes the
Company, including any salary or other overpayments related to Executive’s
employment with the Company, will be offset and deducted from Executive’s
final paycheck from the Company. Executive specifically authorizes the Company
to offset and deduct any such amounts from his final paycheck. Executive agrees
and acknowledges that, to the extent the amount of Executive’s final
paycheck is not sufficient to repay the full amount that Executive owes to the
Company, if any, the full remaining amount owed to the Company, if any, will be
offset and deducted from the amount of the Severance Payment. Executive
specifically authorizes the Company to offset and deduct any such amounts from
his Severance Payment. 

        5.   
Executive agrees that, after payment of Executive’s final paycheck on
[Date] and the Severance Payment, Executive will have received all
compensation and benefits that are due and owing to Executive by the Company,
including but not limited to salary, vacation pay, bonus, commissions and
incentive/override compensation but excluding any benefits or services provided
pursuant to Sections 4(e) and 4(f) of the CIC Severance Policy. 

        6.   
Executive represents that he has returned to the Company all property or
information, including, without limitation, all reports, files, memos, plans,
lists, or other records (whether electronically stored or not) belonging to the
Company or its affiliates, including copies, extracts or other documents derived
from such property or information. Executive will immediately forfeit all rights
and benefits under this Agreement and the CIC Severance Policy, including,
without limitation, the right to receive any Severance Payment if Executive,
directly or indirectly, at any time (i) discloses to any third party or
entity any trade secrets or other proprietary or confidential information
pertaining to the Company or any of its affiliates or uses such secrets or
information without the prior written consent of the General Counsel of the
Company or (ii) takes any actions or makes or publishes any statements,
written or oral, or instigates, assists or participates in the making or
publication of any such statements which libel, slander or disparage the Company
or any of its past or present directors, officers or employees. Nothing in this
Agreement shall prevent or prohibit Executive or the Company from responding to
an order, subpoena, other legal process or regulatory inquiry directed to them
or from providing information to or making a filing with a governmental or
regulatory body. Executive agrees that upon learning of any order, subpoena or
other legal process seeking information that would otherwise be prohibited from
disclosure under this Agreement, he will promptly notify the Company, in
writing, directed to the Company’s General Counsel. In the event disclosure
is so required, Executive agrees not to oppose any action by the Company to seek
or obtain a protective order or other appropriate remedy. 

        7.   
Executive agrees that Executive’s Employment and Confidentiality Agreement
(the “Employment and Confidentiality Agreement”) shall continue to be
in full force and effect, including but not limited to all non-competition and
non-solicitation provisions contained therein. 

        8.   
Executive hereby represents that he has not filed any action, complaint, charge,
grievance or arbitration against the Company or any of its affiliates in
connection with any matters relating, directly or indirectly, to his employment,
and covenants and agrees not to file any such action, complaint or arbitration
or commence any other judicial or arbitral proceedings against the Company or
any of its affiliates with respect to events occurring prior to the termination
of his employment with the Company or any affiliates thereof. 

        9.   
Effective on [Date], the Company will cease all health benefit coverage
and other benefit coverage for Executive. 

Ex-2 

        10.   
GENERAL RELEASE – Effective as of the Effective Date, and in return
for the consideration set forth above, Executive agrees not to sue or file any
action, claim, or lawsuit against the Company, agrees not to pursue, seek to
recover or recover any alleged damages, seek to obtain or obtain any other form
of relief or remedy with respect to, and cause the dismissal or withdrawal of,
any lawsuit, action, claim, or charge against the Company, and Executive agrees
to waive all claims and release and forever discharge the Company, its officers,
directors, subsidiaries, affiliates, parents, attorneys, shareholders and
employees from any claims, demands, actions, causes of action or liabilities for
compensatory damages or any other relief or remedy, and obligations of any kind
or nature whatsoever, based on any matter, cause or thing, relating in any way,
directly or indirectly, to his employment, from the beginning of time through
the Effective Date of this Agreement, whether known or unknown, fixed or
contingent, liquidated or unliquidated, and whether arising from tort, statute,
or contract, including, but not limited to, any claims arising under or pursuant
to the California Fair Employment and Housing Act, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1871, the Civil Rights Act of 1991, the
Americans with Disabilities Act, the Rehabilitation Act, the Family and Medical
Leave Act of 1993, the Occupational Safety & Health Act, the Employee
Retirement Income Security Act of 1974, the Older Workers Benefit Protection Act
of 1990, the Worker Adjustment and Retraining Notification Act, the Fair Labor
Standards Act, the Age Discrimination in Employment Act of 1967
(“ADEA”), New York State Labor Law, New York State Human Rights Law,
New York Human Rights Law, and any other state, federal, city, county or local
statute, rule, regulation, ordinance or order, or the national or local law of
any foreign country, any claim for future consideration for employment with the
Company, any claims for attorneys’ fees and costs and any employment rights
or entitlement law, and any claims for wrongful discharge, intentional
infliction of emotional distress, defamation, libel or slander, payment of
wages, outrageous behavior, breach of contract or any duty allegedly owed to
Executive, discrimination based upon race, color, ethnicity, sex, age, national
origin, religion, disability, sexual orientation, or another unlawful criterion
or circumstance, and any other theory of recovery. It is the intention of the
parties to make this release as broad and as general as the law permits.

        [Executive
acknowledges that he is aware of, has read, has had explained to him by his attorneys,
understands and expressly waives any and all rights he has or may have under Section 1542
of the California Civil Code, which provides as follows:  

	  	
“A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”]* 

_________________ 

* Include bracketed
language for California employees. 

Ex-3 

        11.   
Executive acknowledges that he may later discover facts different from or in
addition to those which he knows or believes to be true now, and he agrees that,
in such event, this Agreement shall nevertheless remain effective in all
respects, notwithstanding such different or additional facts or the discovery of
those facts. 

        12.   
This Agreement may not be introduced in any legal or administrative proceeding,
or other similar forum, except one concerning a breach of this Agreement or the
CIC Severance Policy. 

        13.   
Executive acknowledges that Executive has made an independent investigation of
the facts, and does not rely on any statement or representation of the Company
in entering into this Agreement, other than those set forth herein. 

        14.   
Executive agrees that, without limiting the Company’s remedies, should he
commence, continue, join in, or in any other manner attempt to assert any claim
released in connection herewith, or otherwise violate in a material fashion any
of the terms of this Agreement, the Company shall not be required to make any
further payments to the Executive pursuant to this Agreement or the CIC
Severance Policy and shall be entitled to recover all payments already made by
it (including interest thereon), in addition to all damages, attorneys’
fees and costs the Company incurs in connection with Executive’s breach of
this Agreement. Executive further agrees that the Company shall be entitled to
the repayments and recovery of damages described above without waiver of or
prejudice to the release granted by him in connection with this Agreement, and
that his violation or breach of any provision of this Agreement shall forever
release and discharge the Company from the performance of its obligations
arising from the Agreement. 

        15.   
Executive has been advised and acknowledges that he has been given forty-five
(45) days to consider signing this Agreement, he has seven (7) days following
his signing of this Agreement to revoke and cancel the terms and conditions
contained herein, and the terms and conditions of this Agreement shall not
become effective or enforceable. until the revocation period has expired (the
“Effective Date”). 

        16.   
Executive acknowledges that Executive has been advised hereby to consult with,
and has consulted with, an attorney of his choice prior to signing this
Agreement. 

        17.   
Executive acknowledges that Executive has fully read this Agreement, understands
the contents of this Agreement, and agrees to its terms and conditions of his
own free will, knowingly and voluntarily, and without any duress or coercion.

        18.   
Executive understands that this Agreement includes a final general release, and
that Executive can make no further claims against the Company or the persons
listed in Section 10 of this Agreement relating in any way, directly or
indirectly, to his employment. Executive also understands that this Agreement
precludes Executive from recovering any damages or other relief as a result of
any lawsuit, grievance, charge or

Ex-4 

claim brought on Executive’s behalf
against the Company or the persons listed in Section 10 of this Agreement.

        19.   
Executive acknowledges that Executive is receiving adequate consideration (that
is in addition to what Executive is otherwise entitled to) for signing this
Agreement. 

        20.   
This Agreement and the CIC Severance Policy constitute the complete
understanding between Executive and the Company regarding the subject matter
hereof and thereof. No other promises or agreements regarding the subject matter
hereof and thereof will be binding unless signed by Executive and the Company.

        21.   
Executive and the Company agree that all notices or other communications
required or permitted to be given under the terms of this Agreement shall be
given in accordance with Section 9 of the CIC Severance Policy. 

        22.   
Executive and the Company agree that any disputes relating to any matters
covered under the terms of this Agreement shall be resolved in accordance with
Section 10 of the CIC Severance Policy. 

        23.   
By entering into this Agreement, the Company does not admit and specifically
denies any liability, wrongdoing or violation of any law, statute, regulation or
policy, and it is expressly understood and agreed that this Agreement is being
entered into solely for the purpose of amicably resolving all matters of any
kind whatsoever between Executive and the Company. 

        24.   
In the event that any provision or portion of this Agreement shall be determined
to be invalid or unenforceable for any reason, the remaining provisions or
portions of this Agreement shall be unaffected thereby and shall remain in full
force and effect to the fullest extent permitted by law. 

        25.   
The respective rights and obligations of the parties hereunder shall survive any
termination of this Agreement to the extent necessary for the intended
preservation of such rights and obligations. 

        26.   
Unless expressly specified elsewhere in this Agreement, this Agreement shall be
governed by and construed and interpreted in accordance with the laws of the
State of New York without reference to the principles of conflict of law.

Ex-5 

        27.   
This Agreement may be executed in one or more counterparts. 

		Company

		Executive

	By:			
		

		

	Date:			Date:

Ex-6EXHIBIT 10.1

EXHIBIT 10.1

CHANGE OF CONTROL AGREEMENT

THIS AGREEMENT, entered into as of the 18th day of October, 2004, by and between MARSHALL & ILSLEY CORPORATION (the “Company”), and John M. Presley (the “Executive”) (hereinafter collectively referred to as “the parties”).

W I T N E S S E T H:

WHEREAS, the Board of Directors of the Company (the “Board”) recognizes that the possibility of a Change of Control (as hereinafter defined in Section 2) exists and that the threat of or the occurrence of a Change of Control can result in significant distractions of its key management personnel because of the uncertainties inherent in such a situation; and

WHEREAS, the Board has determined that it is essential and in the best interest of the Company and its shareholders to retain the services of the Executive in the event of a threat or occurrence of a Change of Control and to ensure his continued dedication and efforts in such event without undue concern for his personal financial and employment security; and

WHEREAS, in order to induce the Executive to remain in the employ of the Company, particularly in the event of a threat of or the occurrence of a Change of Control, the Company desires to enter into this Agreement with the Executive.

NOW, THEREFORE, in consideration of the respective agreements of the parties contained herein, it is agreed as follows:

1.  Employment Term.  (a) The “Employment Term” shall commence on the first date during the Protected Period (as defined in Section 1(c), below) on which a Change of Control (as defined in Section 2, below) occurs (the “Effective Date”) and shall expire on the third anniversary of the Effective Date; provided, however, that at the end of each day of the Employment Term the Employment Term shall automatically be extended for one (1) day unless either the Company or the Executive shall have given written notice to the other at least thirty (30) days prior thereto that the Employment Term shall not be so extended.

(b)  Notwithstanding anything contained in this Agreement to the contrary, if the Executive’s employment is terminated prior to the Effective Date and the Executive reasonably demonstrates that such termination (i) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change of Control, or (ii) otherwise occurred in connection with or in anticipation of a Change of Control, then for all purposes of this Agreement, the Effective Date shall mean the date immediately prior to the date of such termination of the Executive’s employment.

(c)  For purposes of this Agreement, the “Protected Period” shall be the three (3) year period commencing on the date hereof; provided, however, that at the end of each day the Protected Period shall be automatically extended for one (1) day unless at least thirty (30) days prior thereto the Company shall have given written notice to the Executive that the Protected Period shall not be so extended; and provided, further, that notwithstanding any such notice by the Company not to extend, the Protected Period shall not end if prior to the expiration thereof any third party has indicated an intention or taken steps reasonably calculated to effect a Change of Control, in which event the Protected Period shall end only after such third party publicly announces that it has abandoned all efforts to effect a Change of Control.

2.  Change of Control.  For purposes of this Agreement, a “Change of Control” shall mean the first to occur of the following:

(a)  The acquisition by any individual, entity or “group” (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty-three percent (33%) or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions of common stock shall not constitute a Change of Control:  (i) any acquisition directly from the Company (excluding an acquisition by virtue of the exercise of a conversion privilege or by one person or a group of persons acting in concert), (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (iv) any acquisition by any corporation pursuant to a reorganization, merger, statutory share exchange or consolidation which would not be a Change of Control under subsection (c) of this Section 2; or

(b)  Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened “election contest” or other actual or threatened “solicitation” (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) of proxies or consents by or on behalf of a person other than the Incumbent Board; or

(c)  Consummation of a reorganization, merger, statutory share exchange or consolidation, unless, following such reorganization, merger, statutory share exchange or consolidation, (i) more than two-thirds (2/3) of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization, merger, statutory share exchange or consolidation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such reorganization, merger, statutory share exchange or consolidation in substantially the same proportions as their ownership, immediately prior to such reorganization, merger, statutory share exchange or consolidation, (ii) no person (excluding the Company, any employee benefit plan (or related trust) of the Company or such corporation resulting from such reorganization, merger, statutory share exchange or consolidation and any person beneficially owning, immediately prior to such reorganization, merger, statutory share exchange or consolidation, directly or indirectly, thirty-three percent (33%) or more of the Outstanding Company Common Stock or Outstanding Voting Securities, as the case may be) beneficially owns, directly or indirectly, thirty-three percent (33%) or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such reorganization, merger, statutory share exchange or consolidation or the combined voting power of the then outstanding voting securities of such corporation, entitled to vote generally in the election of directors and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger, statutory share exchange or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing for such reorganization, merger or consolidation; or

(d)  Consummation of (i) a complete liquidation or dissolution of the Company or (ii) the sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation, with respect to which following such sale or other disposition, (A) more than two-thirds (2/3) of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no person (excluding the Company and any employee benefit plan (or related trust) of the Company or such corporation and any person beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, thirty-three percent (33%) or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, thirty-three percent (33%) or more of, respectively, the then outstanding shares of common stock of such corporation or the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors of such corporation were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Company.

3.  Employment.  (a) Subject to the provisions of Section 3, hereof, the Company agrees to continue to employ the Executive and the Executive agrees to remain in the employ of the Company during the Employment Term.  During the Employment Term, the Executive shall be employed in such executive capacity as may be mutually agreed to by the parties.  During the Employment Term, Executive’s position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with the most significant of those held or assigned at any time during the twelve (12) month period immediately preceding the Effective Date, and Executive’s services shall be performed at the location where Executive was employed immediately preceding the Effective Date or at any office or location less than thirty-five (35) miles from such location, unless mutually agreed to in writing by the parties.

(b)  Excluding periods of vacation and sick leave to which the Executive is entitled, during the Employment Term the Executive agrees to devote full time attention to the business and affairs of the Company to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, provided that the Executive may take reasonable amounts of time to (i) serve on corporate, civil or charitable boards or committees, and (ii) deliver lectures, fulfill speaking engagements or teach at educational institutions, if such activities do not significantly interfere with the performance of the Executive’s responsibilities hereunder.  It is expressly understood and agreed that to the extent any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of Executive’s responsibilities hereunder.

4.  Compensation.  (a)  Base Salary.  During the Employment Term, the Executive shall receive an annual base salary (“Annual Base Salary”), which shall be paid at a monthly rate, at least equal to twelve (12) times the highest monthly base salary paid or payable to the Executive by the Company and its affiliated companies in respect of the twelve (12) month period immediately preceding the month in which the Effective Date occurs, including any amounts which were deferred under any plans of the Company and its affiliated companies.  During the Employment Term, the Annual Base Salary shall be reviewed at least annually and shall be increased at any time and from time to time as shall be substantially consistent with increases in base salary generally awarded in the ordinary course of business to other peer executives of the Company and its affiliated companies.  Any increase in Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement.  Annual Base Salary shall not be reduced after any such increase and the term Annual Base Salary as utilized in this Agreement shall refer to Annual Base Salary as so increased.  As used in this Agreement, the term “affiliated companies” shall include any company controlled by, controlling or under common control with the Company.

(b)  Annual Bonus.  In addition to Annual Base Salary, the Executive shall be awarded, for each fiscal year ending during the Employment Term, an annual bonus (the “Annual Bonus”) in cash at least equal to the average annualized (for any fiscal year consisting of less than twelve (12) full months or with respect to which the Executive has been employed by the Company for less than twelve (12) full months) bonuses paid or payable, including any amounts which were deferred under any plans of the Company and its affiliated companies, to the Executive by the Company and its affiliated companies in respect of the three (3) fiscal years immediately preceding the fiscal year in which the Effective Date occurs (the “Recent Average Bonus”).  Each such Annual Bonus shall be paid no later than seventy-five (75) days after the end of the fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer the receipt of such Annual Bonus under any plan or arrangement of the Company allowing therefor.

(c)  Incentive, Savings and Retirement Plans.  During the Employment Term, the Executive shall be entitled to participate in all incentive, savings and retirement plans, practices, policies and programs applicable generally to other peer executives of the Company and its affiliated companies, but in no event shall such plans, practices, policies and programs provide the Executive with incentive opportunities (measured with respect to both regular and special incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company and its affiliated companies for the Executive under such plans, practices, policies and programs as in effect at any time during the twelve (12) month period immediately preceding the Effective Date, or, if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the Company and its affiliated companies.

(d)  Benefit Plans.  During the Employment Term, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under benefit plans, practices, policies and programs provided by the Company and its affiliated companies (including, without limitation, medical, prescription drug, dental, disability, salary continuance, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other peer executives of the Company and its affiliated companies and their families; but in no event shall such plans, practices, policies and programs provide the Executive with benefits which are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for the Executive and his family at any time during the twelve (12) month period immediately preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the Company and its affiliated companies and their families.

(e)  Expenses.  During the Employment Term, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the most favorable policies, practices and procedures of the Company and its affiliated companies in effect for the Executive at any time during the twelve (12) month period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.

(f)  Fringe Benefits.  During the Employment Term, the Executive shall be entitled to fringe benefits (including but not limited to Company cars, club dues and physical examinations) in accordance with the most favorable plans, practices, programs and policies of the Company and its affiliated companies in effect for the Executive at any time during the twelve (12) month period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.

(g)  Office and Support Staff.  During the Employment Term, the Executive shall be entitled to an office or offices of a size and with furnishings and other appointments, and to exclusive personal secretarial and other assistance, in accordance with the most favorable of the foregoing provided to the Executive by the company and its affiliated companies at any time during the twelve (12) month period immediately preceding the Effective Date or, if more favorable to the Executive, as provided generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.

 (h)  Vacation and Sick Leave.  During the Employment Term, the Executive shall be entitled to paid vacation and sick leave (without loss of pay) in accordance with the most favorable plans, policies, programs and practices of the Company and its affiliated companies as in effect for the Executive at any time during the twelve (12) month period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.

(i)  Restrictions.  As of the Effective Date, all restrictions limiting the exercise, transferability or other incidents of ownership of any outstanding award, including but not limited to restricted stock, options, stock appreciation rights, or other property or rights of the Company granted to the Executive shall lapse, and such awards shall become fully vested and be held by the Executive free and clear of all such restrictions.  This provision shall apply to all such property or rights notwithstanding the provisions of any other plan or agreement, unless the effect of the application of this provision to a particular right or property would result in the loss of favorable securities law treatment for participants under the plan pursuant to which the award was granted.

5.  Termination of Employment.  During the Employment Term, the Executive’s employment hereunder may be terminated under the following circumstances:

(a)  Death or Disability.  The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Term.  If the Company determines in good faith that the Disability of the Executive has occurred during the Employment Term (pursuant to the definition of Disability set forth below), it may give to the Executive written notice in accordance with Section 5 of this Agreement of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment with the Company shall terminate effective on the thirtieth (30th) day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within thirty (30) days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties.  For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties with the Company on a full-time basis for one hundred eighty (180) consecutive business days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative, provided if the parties are unable to agree, the parties shall request the Dean of the Medical College of Wisconsin to choose such physician.

(b)  Cause.  The Company may terminate the Executive’s employment for “Cause.”  A termination for Cause is a termination evidenced by a resolution adopted in good faith by a majority of the Board that the Executive (i) willfully, deliberately and continually failed to substantially perform his duties under Section 3, above (other than a failure resulting from the Executive’s incapacity due to physical or mental illness) which failure constitutes gross misconduct, and results in and was intended to result in demonstrable material injury to the Company, monetary or otherwise, or (ii) committed acts of fraud and dishonesty constituting a felony, as determined by a final judgment or order of a court of competent jurisdiction, and resulting or intended to result in gain to or personal enrichment of the Executive at the Company’s expense, provided, however, that no termination of the Executive’s employment shall be for Cause as set forth in (i), above, until (a) Executive shall have had at least sixty (60) days to cure any conduct or act alleged to provide Cause for termination after a written notice of demand has been delivered to the Executive specifying in detail the manner in which the Executive’s conduct violates this Agreement, and (b) the Executive shall have been provided an opportunity to be heard by the Board (with the assistance of the Executive’s counsel if the Executive so desires).  No act, or failure to act, on the Executive’s part, shall be considered “willful” unless he has acted or failed to act in bad faith and without a reasonable belief that his action or failure to act was in the best interest of the Company.  Notwithstanding anything contained in this Agreement to the contrary, no failure to perform by the Executive after Notice of Termination is given by the Executive shall constitute Cause for purposes of this Agreement.

(c)  Good Reason.

(1)  The Executive may terminate his employment for Good Reason.  For purposes of this Agreement, “Good Reason” shall mean the occurrence after a Change of Control of any of the events or conditions described in Subsections (i) through (vi) hereof:

(i)  A change in the Executive’s status, title, position or responsibilities (including reporting responsibilities) which, in the Executive’s reasonable judgment, does not represent a promotion from his status, title, position or responsibilities as in effect immediately prior thereto; the assignment to the Executive of any duties or responsibilities which, in the Executive’s reasonable judgment, are inconsistent with his status, title, position or responsibilities in effect immediately prior to such assignment; or any removal of the Executive from or failure to reappoint or reelect him to any position, except in connection with the termination of his employment for Disability, Cause, as a result of his death or by the Executive other than for Good Reason;

(ii)  Any failure by the Company to comply with any of the provisions of Section 4 of this Agreement.

(iii)  The insolvency or the filing (by any party, including the Company) of a petition for bankruptcy of the Company;

(iv)  Any material breach by the Company of any provision of this Agreement;

(v)  Any purported termination of the Executive’s employment for Cause by the Company which does not comply with the terms of Section 5 of this Agreement; and

(vi)  The failure of the Company to obtain an agreement, satisfactory to the Executive, from any successor or assign of the Company, to assume and agree to perform this Agreement, as contemplated in Section 10 hereof.

(2)  Any event or condition described in Section 5(c)(1) which occurs prior to the Effective Date but which the Executive reasonably demonstrates (i) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change of Control, or (ii) otherwise arose in connection with or in anticipation of a Change of Control, shall constitute Good Reason for purposes of this Agreement notwithstanding that it occurred prior to the Effective Date.

(3)  The Executive’s right to terminate his employment pursuant to this Section 5(c) shall not be affected by his incapacity due to physical or mental illness.  The Executive’s continued employment or failure to give Notice of Termination shall not constitute consent to, or a waiver of rights with respect to, any circumstances constituting Good Reason hereunder.

(4)  For purposes of this Section 5(c), any good faith determination of Good Reason made by the Executive shall be conclusive.  Anything in this Agreement to the contrary notwithstanding, a termination by the Executive for any reason or for no reason during the sixty (60) day period commencing on the date six (6) months after the Effective Date shall be deemed to be a termination by the Executive for Good Reason for all purposes of this Agreement.

(d)  Voluntary Termination.  The Executive may voluntarily terminate his employment hereunder at any time.

(e)  Notice of Termination.  Any purported termination by the Company or by the Executive (other than by death of the Executive) shall be communicated by Notice of Termination to the other.  For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (iii) the Termination Date.  For purposes of this Agreement, no such purported termination of employment shall be effective without such Notice of Termination.

(f)  Termination Date, etc.  “Termination Date” shall mean in the case of the Executive’s death, his date of death, or in all other cases, the date specified in the Notice of Termination subject to the following:

(1)  If the Executive’s employment is terminated by the Company, the date specified in the Notice of Termination shall be at least thirty (30) days after the date the Notice of Termination is given to the Executive, provided, however, that in the case of Disability, the Executive shall not have returned to the full-time performance of his duties during such period of at least thirty (30) days;

(2)  If the Executive’s employment is terminated for Good Reason, the date specified in the Notice of Termination shall not be more than sixty (60) days after the date the Notice of Termination is given to the Company; and

(3)  In the event that within thirty (30) days following the date of receipt of the Notice of Termination, one party notifies the other that a dispute exists concerning the basis for termination, the Executive’s employment hereunder shall not be terminated except after the dispute is finally resolved and a Termination Date is determined either by a mutual written agreement of the parties, or by a binding and final judgment order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected).

6.  Obligations of the Company Upon Termination.

(a)  Good Reason; Other Than for Cause, Death or Disability.  If, during the Employment Term, the Company shall terminate the Executive’s employment other than for Cause or Disability or the Executive shall terminate employment for Good Reason:

(i)  The Company shall pay to the Executive in a lump sum in cash within five (5) days after the Termination Date the aggregate of the following amounts:

A.  The sum of:

(1)  The Executive’s Annual Base Salary through the Termination Date to the extent not theretofore paid; and

(2)  The product of (x) the higher of (I) the Recent Average Bonus and (II) the Annual Bonus paid or payable, including any amount deferred, (and annualized for any fiscal year consisting of less than twelve (12) full months or for which the Executive has been employed for less than twelve (12) full months) for the most recently completed fiscal year during the Employment Term, if any (such higher amount being referred to as the “Highest Annual Bonus.) and (y) a fraction, the numerator of which is the number of days completed in the current fiscal year through the Termination Date, and the denominator of which is 365.

The sum of the amounts described in Clauses (1) and (2) shall be hereinafter referred to as the “Accrued Obligations”;

B.  The amount equal to the product of (1) three and (2) the sum of (x) the Executive’s Annual Base Salary (increased for this purpose by any Section 401(k) deferrals, cafeteria plan elections, or other deferrals that would have increased Executive’s Annual Base Salary if paid in cash to Executive when earned) and (y) the Executive’s Highest Annual Bonus;

C.  A separate lump-sum supplemental retirement benefit equal to the difference between (1) the actuarial equivalent (utilizing for this purpose the most favorable to the Executive actuarial assumptions and Company contribution history with respect to the applicable retirement plan, incentive plans, savings plans and other plans described in Section 4(c) (or any successor plan thereto) (the “Retirement Plans”) during the twelve (12) month period immediately preceding the Effective Date) of the benefit payable under the Retirement Plans and any supplemental and/or excess retirement plan providing benefits for the Executive (the “SERP”) which the Executive would receive if the Executive’s employment continued for an additional three (3) years after the Termination Date with annual compensation equal to the sum of the Annual Base Salary and Highest Annual Bonus, assuming for this purpose that all accrued benefits and contributions are fully vested and that benefit accrual formulas and Company contributions are no less advantageous to the Executive than those in effect during the twelve (12) month period immediately preceding the Effective Date, and (2) the actuarial equivalent (utilizing for this purpose the actuarial assumptions utilized with respect to the Retirement Plans during the twelve (12) month period immediately preceding the Effective Date) of the Executive’s actual benefit (paid or payable), if any, under the Retirement Plans and the SERP.  For example, if there were a termination today this supplemental retirement benefit would be interpreted with respect to two plans in existence today as follows:  (i) with respect to the Retirement Growth component of the retirement program of the Company, the Executive would receive three times eight percent (8%) (or twenty-four percent (24%)) of the sum of the Executive’s Annual Base Salary (determined in accordance with subsection C of Section 6(a)(i)) and the Executive’s Highest Annual Bonus; and (ii) with respect to the Incentive Savings component of the retirement plan of the Company, the Executive would receive three times the annual Company match of fifty percent (50%) of the Executive’s maximum allowable contribution to the Plan assuming Executive’s compensation is as set forth above; and

D.  The amount equal to the product of (i) three and (ii) the sum of (x) the imputed income reflected on Executive’s W-2 attributable to the car provided to Executive by the Company or its affiliates for the last calendar year ending before the Effective Date and (y) the club dues for Executive paid by the Company or its affiliates attributable to such year.

(ii)  For thirty-six (36) months after the Termination Date, the Company shall continue to provide medical and dental benefits to the Executive and/or the Executive’s family in accordance with the most favorable plans, practices, programs or policies of the Company and its affiliated companies applicable generally to other peer executives who are active employees and their families as in effect from time to time thereafter; provided, however, that if the Executive becomes reemployed with another employer and is eligible to receive medical or other benefits under another employer provided plan, the medical and other benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility, provided that the aggregate coverage of the combined benefit plans is no less favorable to the Executive, in terms of amounts and deductibles and costs to him, than the coverage required hereunder.  For purposes of determining eligibility of the Executive for retiree health insurance, the Executive shall be considered to have remained employed until the end of such thirty-six (36) month period and to have retired on the last day of such period.  If the Executive would qualify at the end of such thirty-six (36) month period for retiree health insurance under the Company’s plan guidelines as in existence on the Effective Date, the Company shall provide to the Executive and his or her spouse, for life, retiree health insurance, subsidized to at least the same percentage extent as under the Company’s plan as in existence on the Effective Date.  Such retiree health insurance shall provide medical benefits to the Executive and/or the Executive’s spouse in accordance with the most favorable plans, practices, programs or policies of the Company and its affiliated companies applicable generally to other peer executives who are active employees and their spouses as in effect from time to time thereafter; provided, however, that if the Executive and/or the Executive’s spouse qualifies for coverage by Medicare or any successor program, the Company may require that the Executive and/or the Executive’s spouse fully participate in Medicare and pay the premiums therefor personally.

(iii)  The Executive shall have the right to purchase the car provided to him by the Company or its affiliates during the twelve (12) month period immediately preceding the Effective Date, if applicable, (or a comparable car acceptable to the Executive if such car is no longer owned by the Company or its affiliates), at the book value thereof on the Termination Date, exercisable within thirty (30) days after the Termination Date; and if the car is not purchased, Executive shall return the car to the Company.

(iv)  The Executive shall have the option of purchasing any split dollar life insurance owned by the Company or its affiliates on the life of Executive for the Company’s investment in the contract, exercisable at any time within thirty (30) days after the Termination Date; and the Company agrees during the Employment Term not to terminate, sell, transfer or otherwise dispose of any such insurance without first allowing Executive the opportunity to exercise such option.  For the thirty-six (36) month period after the Termination Date, the Company shall continue to provide group term life insurance (or comparable term coverage) in the same face amount and on substantially the same terms as in effect for the Executive just prior to the Effective Time.  At the end of the thirty-six (36) month period, the Executive shall have any conversion rights as regards such coverage as are provided by law.

(v)  To the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to receive pursuant to this Agreement under any plan, program, policy or practice or contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits).

(vi)  All options awarded by the Company to the Executive on or after the date of this Agreement which are outstanding as of the Termination Date shall remain exercisable for the lesser of (A) the remainder of their respective terms or (B) one year after the Executive’s death.  The option term for each option is set out in the relevant agreement granting each option.

Notwithstanding anything herein contained to the contrary, the payments and benefits provided in this Section 6(a) (other than the Accrued Obligations) shall not be paid or provided to the Executive unless and until he executes a Complete and Permanent Release (the “Release”) in the form attached hereto, and the applicable period for rescission of the Release has expired.  The parties agree that the Release may be expanded to include any company acquiring the Company and its affiliates as “Released Parties” as defined in the Release.

(b)  Death.  If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Term, this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, except that the Company shall pay or provide the Accrued Obligations, six (6) months of Annual Base Salary, and the Other Benefits.  The Accrued Obligations shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within thirty (30) days of the Termination Date.  The six (6) months of Annual Base Salary shall be paid during the six (6) month period following the Termination Date on a monthly basis.  With respect to the provision of Other Benefits, the term Other Benefits as utilized in this Section 6(b) shall include, and the Executive’s family shall be entitled to receive, benefits at least equal to the most favorable benefits provided by the Company and any of its affiliated companies to surviving families of peer executives of the Company and such affiliated companies under such plans, programs, practices and policies relating to family death benefits, if any, as in effect with respect to other peer executives and their families at any time during the twelve (12) month period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect on the date of the Executive’s death with respect to other peer executives of the Company and its affiliated companies and their families.

(c)  Disability.  If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Term, this Agreement shall terminate without further obligations to the Executive, except that the Company shall pay or provide the Accrued Obligations and the Other Benefits.  The Accrued Obligations shall be paid to the Executive in a lump sum in cash within thirty (30) days of the Termination Date.  With respect to the provision of Other Benefits, the term Other Benefits as utilized in this Section 6(c) shall include, and the Executive shall be entitled after the Disability Effective Date to receive, disability and other benefits at least equal to the most favorable of those generally provided by the Company and its affiliated companies to disabled executives and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to other peer executives and their families at any time during the twelve (12) month period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter generally with respect to other peer executives of the Company and its affiliated companies and their families.

(d)  Cause; Other Than for Good Reason.  If the Executive’s employment shall be terminated for Cause during the Employment Term, or if the Executive voluntarily terminates employment during the Employment Term for other than Good Reason, this Agreement shall terminate without further obligations to the Executive other than the obligation to pay to the Executive Annual Base Salary through the Date of Termination and any other amounts earned or accrued through the Termination Date, in each case to the extent theretofore unpaid; provided that if Executive voluntarily terminates, Executive shall receive the benefits normally provided upon normal or early retirement with respect to other peer Executives and their families to the extent he qualifies therefore  All salary or compensation hereunder shall be paid to the Executive in a lump sum in cash within thirty (30) days of the Date of Termination.

(e)  Delinquent Payments.  If any of the payments referred to in this Section 6 are not paid within the time specified after the Termination Date (hereinafter a “Delinquent Payment”), in addition to such principal sum, the Company will pay to the Executive interest on all such Delinquent Payments computed at the prime rate as announced from time to time by M&I Marshall & Ilsley Bank, or its successor, compounded monthly.  Notwithstanding the foregoing, no interest shall be due and owing as regards payments which are delayed because of Executive’s failure to execute the Release or the recission thereof.

(f)  Vacation Pay.  In consideration of all payments made by the Company to the Executive pursuant to this Agreement, the Executive hereby waives any claim he may have for accrued and unpaid vacation pay as of the Termination Date.

7.  No Mitigation.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced (except to the extent set forth in Section 6(a)(ii)) whether or not the Executive obtains other employment.

8.  Excise Tax Payments.

(a)  Notwithstanding anything contained in this Agreement to the contrary, in the event that any payment or distribution to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, his employment with the Company (a “Payment” or “Payments”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any interest and penalties, are collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

(b)  A determination shall be made as to whether and when a Gross-Up Payment is required pursuant to this Section 8 and the amount of such Gross-Up Payment, such determination to be made within fifteen (15) business days of the Termination Date, or such other time as requested by the Company or by the Executive (provided the Executive reasonably believes that any of the Payments may be subject to the Excise Tax).  Such determination shall be made by a national independent accounting firm selected by the Executive (the “Accounting Firm”).  All fees, costs and expenses (including, but not limited to, the cost of retaining experts) of the Accounting Firm shall be borne by the Company and the Company shall pay such fees, costs and expenses as they become due.  The Accounting Firm shall provide detailed supporting calculations, acceptable to the Executive, both to the Company and the Executive.  The Gross-Up Payment, if any, as determined pursuant to this Section 8(b) shall be paid by the Company to the Executive or paid by the Company on behalf of the Executive to the applicable government taxing authorities by means of payroll tax withholding if required by law or if timely requested by the Executive within five (5) business days of the receipt of the Accounting Firm’s determination.  If the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to a Payment or Payments, it shall furnish the Executive with an unqualified opinion that no Excise Tax will be imposed with respect to any such Payment or Payments.  Any such initial determination by the Accounting Firm of the Gross-Up Payment shall be binding upon the Company and the Executive subject to the application of Section 8(c).

(c)  As a result of the uncertainty in the application of Sections 4999 and 280G of the Code, it is possible that a Gross-Up Payment (or a portion thereof) will be paid which should not have been paid (an “Overpayment”) or a Gross-Up Payment (or a portion thereof) which should have been paid will not have been paid (an “Underpayment”).  An Underpayment shall be deemed to have occurred upon notice (formal or informal) to the Executive from any governmental taxing authority that the tax liability of the Executive (whether in respect of the then current taxable year of the Executive or in respect of any prior taxable year of the Executive) may be increased by reason of the imposition of the Excise Tax on a Payment or Payments with respect to which the Company has failed to make a sufficient Gross-Up Payment.   An Overpayment shall be deemed to have occurred upon a “Final Determination” (as hereinafter defined) that the Excise Tax shall not be imposed upon a Payment or Payments with respect to which the Executive had previously received a Gross-Up Payment.  A Final Determination shall be deemed to have occurred when the Executive has received from the applicable governmental taxing authority a refund of taxes or other reduction in his tax liability by reason of the Overpayment and upon either (i) the date a determination is made by, or an agreement is entered into with, the applicable governmental taxing authority which finally and conclusively binds the Executive and such taxing authority, or in the event that a claim is brought before a court of competent jurisdiction, the date upon which a final determination has been made by such court and either all appeals have been taken and finally resolved or the time for all appeals has expired or (ii) the expiration of the statute of limitations with respect to the Executive’s applicable tax return.  If an Underpayment occurs, the Executive shall promptly notify the Company and the Company shall pay to the Executive at least five (5) business days prior to the date on which the applicable governmental taxing authority has requested payment, an additional Gross-Up Payment equal to the amount of the Underpayment plus any interest and penalties imposed on the Underpayment.  If an Overpayment occurs, the amount of the Overpayment shall be treated as a loan by the Company to the Executive and the Executive shall, within ten (10) business days of the occurrence of such Overpayment, pay to the Company the amount of the Overpayment plus interest at an annual rate equal to the rate provided for in Section 1274(b)(2)(B) of the Code from the date the Gross-Up Payment (to which the Overpayment relates) was paid to the Executive.

9.  Unauthorized Disclosure.  During the term of the Executive’s employment with the Company, and during the two-year period following the Termination Date, the Executive shall not make any Unauthorized Disclosure.  For purposes of this Agreement, “Unauthorized Disclosure” shall mean disclosure by the Executive without the consent of the Board to any person, other than an employee of the Company or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of his duties as an executive of the Company or as may be legally required, of any confidential information obtained by the Executive while in the employ of the Company (including, but not limited to, any confidential information with respect to any of the Company’s customers or methods of operation) the disclosure of which he knows or has reason to believe will be materially injurious to the Company; provided, however, that such term shall not include the use or disclosure by the Executive, without consent, of any information known generally to the public (other than as a result of disclosure by him in violation of this Section 9) or any information not otherwise considered confidential by a reasonable person engaged in the same business as that conducted by the Company.  Notwithstanding the foregoing, the Executive’s obligation hereunder not to make any Unauthorized Disclosure shall continue after the end of the two-year period following his termination of employment with the Company as regards any information which is a trade secret as defined in Section 134.90 of the Wisconsin Statutes.  In no event shall an asserted violation of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement.

10.  Successors and Assigns.

(a)  This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and assigns and the Company shall require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place.  The term “Company” as used herein shall include such successors and assigns.  The term “successors and assigns” as used herein shall mean a corporation or other entity acquiring all or substantially all the assets and business of the Company (including this Agreement) whether by operation of law or otherwise.

(b)  Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representative.

11.  Fees and Expenses.  From and after the Effective Date, the Company shall pay all legal fees and related expenses (including the costs of experts, evidence and counsel) reasonably incurred by the Executive as they become due as a result of (i) the Executive’s termination of employment (including all such fees and expenses, if any, incurred in contesting or disputing any such termination of employment), (ii) the Executive’s hearing before the Board as contemplated in Section 5(b) of this Agreement, (iii) the Executive’s seeking to obtain or enforce any right or benefit provided by this Agreement or by any other plan or arrangement maintained by the Company under which the Executive is or may be entitled to receive benefits or (iv) a dispute between the Executive and the Internal Revenue Service (or any other taxing authority) with regard to an “Underpayment” (as defined in Section 8 of this Agreement).

12.  Notice.  For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination) shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, if to the Company, to Marshall & Ilsley Corporation, 770 North Water Street, Milwaukee, Wisconsin 53202, or if to Executive, to the address set forth below Executive’s signature, or to such other address as the party may be notified, provided that all notices to the Company shall be directed to the attention of the Board with a copy to the Secretary of the Company.  All notices and communications shall be deemed to have been received on the date of delivery thereof or on the third business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.

13.  Non-Exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company or any of its subsidiaries for which the Executive may qualify.  Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan or program of the Company or any of its subsidiaries shall be payable in accordance with such plan or program, except as explicitly modified by this Agreement.

14.  Settlement of Claims.  The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or others.

15.  Miscellaneous.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and the Company.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

16.  Employment.  The Executive and the Company acknowledge that the employment of the Executive by the Company is “at will” and prior to the Effective Date, may be terminated by either the Executive or the Company at any time.  Moreover, if prior to the Effective Date, the Executive’s employment with the company terminates, the Executive shall have no further rights under this Agreement.

17.  Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Wisconsin without giving effect to the conflict of law principles thereof.

18.  Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

19.  Entire Agreement.  This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof.  

20.  Headings.  The headings herein contained are for reference only and shall not affect the meaning or interpretation of any provision of this Agreement.

21.  Modification.  No provision of this Agreement may be modified or amended unless such modification or amendment is agreed to in writing signed by both the Executive and the Company.

22.  Withholding.  The Company shall be entitled to withhold from amounts paid to the Executive hereunder any federal, estate or local withholding or other taxes or charges which it is, from time to time, required to withhold.  The Company shall be entitled to rely on an opinion of counsel if any question as to the amount or requirement of any such withholding shall arise.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement as of the day and year first above written.

MARSHALL & ILSLEY CORPORATION

By:

/s/ D.J. Kuester                                       

ATTEST:

Dennis J. Kuester, Chief Executive Officer

/s/ Randall J. Erickson                                       

Randall J. Erickson, Secretary

EXECUTIVE:

/s/ John M. Presley                                         

John M. Presley

Address:

W23 W28806 Louis Ave.              

Pewaukee, WI  53072

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