Document:

Exhibit 10.5

 

JOHN DEERE

 

 SENIOR
SUPPLEMENTARY PENSION BENEFIT PLAN

 

 

AS AMENDED AND RESTATED EFFECTIVE:  1 NOVEMBER 1992

 

AMENDED MAY 1993 - EFFECTIVE 1 JULY 1993

 

AMENDED 8 DECEMBER 1993 -  EFFECTIVE 1 JULY 1993

 

AMENDED 7 DECEMBER 1994

 

AMENDED MAY 1995 - EFFECTIVE 1 JANUARY 1995

 

AMENDED 4 DECEMBER 1996 - EFFECTIVE 1 JANUARY 1997

 

AMENDED 26 MAY 1999 – EFFECTIVE 26 MAY 1999

 

AMENDED 19 JULY 1999 – EFFECTIVE 1 JULY 1999

 

AMENDED 12 JANUARY 2000 - EFFECTIVE 1 JANUARY 2000

 

AMENDED 31 JULY 2000 -EFFECTIVE 1 JANUARY 2000

 

AMENDED: 29 JANUARY 2002 - EFFECTIVE: 1 JANUARY
2002

 

AMENDED: 1 DECEMBER 2005 – EFFECTIVE: 1 JANUARY
2005

 

AMENDED:
13 DECEMBER 2007 – Effective: 1 January 2007

 

 

JOHN DEERE

SENIOR SUPPLEMENTARY PENSION BENEFIT PLAN

 

TABLE OF CONTENTS

 

	
  Article

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
  ESTABLISHMENT,
  PURPOSE AND CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Establishment

  	
  1

  
	
   

  	
  1.2

  	
  Purpose

  	
  1

  
	
   

  	
  1.3

  	
  Effective Date
  and Plan Year

  	
  1

  
	
   

  	
  1.4

  	
  Application of
  Plan

  	
  2

  
	
   

  	
  1.5

  	
  Construction

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Eligibility to
  Participate

  	
  3

  
	
   

  	
  2.2

  	
  Effect of
  Transfer

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  SUPPLEMENTARY
  BENEFITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Eligibility for
  Benefit

  	
  4

  
	
   

  	
  3.2

  	
  Amount of
  Benefit

  	
  4

  
	
   

  	
  3.3

  	
  Form of
  Payment and Commencement Date

  	
  4

  
	
   

  	
  3.4

  	
  Death Prior to
  Receipt of Lump Sum

  	
  5

  
	
   

  	
  3.5

  	
  Qualified
  Domestic Relations Order

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
  ADMINISTRATION
  OF PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Administration

  	
  7

  
	
   

  	
  4.2

  	
  Amendment,
  Modification or Termination

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Employment
  Rights

  	
  9

  
	
   

  	
  5.2

  	
  Applicable Law

  	
  9

  
	
   

  	
  5.3

  	
  Non-Alienation

  	
  9

  
	
   

  	
  5.4

  	
  Withholding of
  Taxes

  	
  9

  
	
   

  	
  5.5

  	
  Funding and
  Rights Against Assets

  	
  9

  
	
   

  	
  5.6

  	
  Effect on Other
  Benefit Plans

  	
  9

  

 

i

 

	
  APPENDIX A

  	
   

  
	
  Article

  	
  A-1 APPLICATION; PAYMENT OF PLAN BENEFIT AFTER 2006

  	
  A-1

  
	
   

  	
  A-1.1

  	
  Application of this Article

  	
  A-1

  
	
   

  	
  A-1.2

  	
  Retirement During Calendar Year 2007 or Later

  	
  A-1

  
	
   

  	
  A-1.3

  	
  Termination During Calendar Year 2005 or Later

  	
  A-1

  
	
   

  	
  A-1.4

  	
  Termination Prior to 1
  January 2005

  	
  A-1

  
	
   

  	
  A-1.5

  	
  One-Time Lump Sum.

  	
  A-1

  
	
  Article

  	
  A-2 DEATH and DISABILITY BENEFITS

  	
  A-2

  
	
   

  	
  A-2.1

  	
  Application of Article A-2

  	
  A-2

  
	
   

  	
  A-2.2

  	
  No Additional Rights Because of Death

  	
  A-2

  
	
   

  	
  A-2.3

  	
  Rules Based on Timing of Death

  	
  A-3

  
	
   

  	
  A-2.4

  	
  Separation from Service Due to Disability

  	
  A-3

  
	
   

  	
  A-2.5

  	
  Return to Work Following Disability

  	
  A-4

  
	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX B

  	
   

  	
   

  	
   

  
	
  Article 

  	
  B-1 MISCELLANEOUS PROVISIONS

  	
  B-1

  
	
   

  	
  B-1.1

  	
  Application of this Article

  	
  B-1

  
	
   

  	
  B-1.2

  	
  Impact of Vacation

  	
  B-1

  
	
   

  	
  B-1.3

  	
  Impact of Leave of Absence and Special Paid Leave of
  Absence

  	
  B-1

  
	
   

  	
  B-1.4

  	
  No Acceleration or Delay

  	
  B-2

  
	
  Article 

  	
  B-2 AMENDMENT AND TERMINATION

  	
  B-2

  
	
   

  	
  B-2.1

  	
  Amendment and Termination

  	
  B-2

  
	
   

  	
  B-2.2

  	
  Plan Benefit in the Event of Termination

  	
  B-2

  
	
  Article 

  	
  B-3 DEFINITIONS

  	
  B-2

  
	
   

  	
  B-3.1

  	
  Section References

  	
  B-2

  
	
   

  	
  B-3.2

  	
  Terms Defined

  	
  B-2

  

 

ii

 

JOHN DEERE SENIOR SUPPLEMENTARY

PENSION BENEFIT PLAN

 

Article I.  Establishment, Purpose and Construction

 

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

 

1.2               Purpose. 
The Company
maintains a defined benefit pension plan, known as the Salaried Pension Plan,
which is intended to be a qualified defined benefit pension plan which meets
the requirements of Section 401(a) of the Internal Revenue Code of
1986 (“Code”).  Section 401(a)(17)
of the Code limits the amount of compensation paid to a participant in a
qualified defined benefit pension plan which may be taken into account in
determining benefits under such a plan.  Section 415
of the Code limits the benefit which may be paid under a qualified defined
benefit pension plan.  This Plan is
intended to provide benefits which, when combined with the benefit actually
payable under the Salaried Pension Plan, are reasonably comparable to the
benefits which participants in the Salaried Pension Plan would have received
under such plan if there were no limitations imposed by Sections 401(a)(17) and
415 of the Code.  This Plan is intended
to qualify as an unfunded deferred compensation plan for a select group of
management or highly compensated employees, within the meaning of Sections
201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income
Security Act of 1974 (“ERISA”).

 

1.3               Effective Date and Plan Year. 
This Plan shall be effective 1 November 1992.  Participants in the Former Plan who were
receiving benefits under the Former Plan as of 31 October 1992, and who
are eligible employees as defined in Section 2.1 below, shall receive the
same benefit payments under this Plan as they were receiving under the Former
Plan as of 31 October 1992. 
Participants 

 

1

 

                      in the Former Plan who were not receiving
benefits as of 31 October 1992, and who are eligible employees as defined
in Section 2.1 below, shall have no further rights under the Former Plan,
but shall be entitled to benefits, if any, only under the terms of this
Plan.  The Plan Year shall be the
twelve-month period beginning on 1 November of each year and ending on 31 October of
the following year.

 

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

 

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

 

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

 

2

 

Article II.  Participation

 

2.1                 Eligibility to Participate. 
Any employee participating in the Salaried Pension Plan (or a surviving
spouse of such employee) whose retirement benefit upon termination from
employment or death under such plan is reduced by application of Article I,
Section 14, of the Salaried Pension Plan (or any other provision of the
Salaried Pension Plan which limits benefits under the plan as required by Section 415
of the Code) or the limitation on the amount of annual compensation used for
determining benefits under the Salaried Pension Plan contained in Article III,
Section 2, Paragraph C or Section 2.1, Paragraph B of such plan (or
any other provision which limits compensation used in determining benefits under
the Salaried Pension Plan as required by Section 401(a)(17) of the Code)
shall be eligible to participate in this Plan if the compensation used in any
year  to calculate the employee’s benefit
under the Salaried Pension Plan is equal to or greater than the maximum amount
of compensation which can be taken into account under Section 401(a)(17)
of the Code for purposes of determining such employee’s benefit under the
Salaried Pension Plan.

 

2.2                 Effect of Transfer.   An employee
who is a participant in this Plan and who ceases to be an eligible employee as
described in Section 2.1 above shall cease to be a participant in this
Plan upon such employee ceasing to be an eligible employee and shall thereafter
be eligible to participate in the John Deere ERISA Supplementary Pension
Benefit Plan, provided that such employee continues as a salaried employee on
the United States payroll of the Company.

 

3

 

Article III.  Supplementary Benefits

 

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

 

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

 

(A)   equals the amount of an employee’s monthly
pension benefit or survivor benefit payable under the terms of the Salaried
Pension Plan as in effect on the date of the employee’s termination, retirement
or death, but determined without regard to any limitation on such benefit
imposed in order to comply with the limitation on benefits contained in Sections
401(a)(17) or 415 of the Code and based on the employee’s total salary from the
Company before the effect of any salary deferral or reduction resulting from an
election by the employee under any Company sponsored plan or program; but
excluding any matching and/or growth factor Company contributions and/or
flexible credits provided by the Company under any such plan or program; and

 

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

 

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

 

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

 

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

 

4

 

                      Alternatively, the participant may elect
to receive a lump sum payment for all or a portion (in 10% increments from 10%
to 90%) of the Retirement benefits payable under this Plan including the 55%
joint and survivor annuity with a flat 11% load, adjusted for service accrued
through 30 June 1993, or 31 December 1993 in the case of the
employees of John Deere Credit Company, John Deere Health Care, Inc., or
John Deere Insurance Group.   Written
notice of the participant’s election to receive a lump sum payment shall be
irrevocable, and must be received by the Company within the twelve (12) months
prior to payment, but in no event subsequent to the participant’s date of
retirement.  The lump sum payment shall
be made to participant twelve (12) months after receipt of notice by the
Company but in no event prior to the participant’s retirement.

 

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

 

3.4                 Death Prior to Receipt of Lump Sum

 

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

 

If a retired Participant or a Participant on Permanent
and Total Disability subsequently retires under Normal Retirement and dies
after receipt of notice by the Company pursuant to Section 3.3 election to
receive a lump sum payment, but before the expiration of twelve (12) months
after receipt by the Company of such election, a surviving spouse of the
Participant who is eligible for a survivor benefit under the Salaried Pension
Plan will receive the Participant’s full lump sum benefit under Section 3.3
of this Plan.  In the event the retired
Participant is unmarried at the date of death or the surviving spouse of the
deceased Participant is not eligible for survivor benefits under the 

 

5

 

Salaried Pension Plan, the Participant’s full lump sum
benefit will be paid to the deceased Participant’s estate.  The lump sum benefit will be payable no
earlier than twelve (12) months following receipt of notice by the Company of
the deceased Participant’s irrevocable election.

 

3.5                Qualified Domestic Relations Order

 

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

 

6

 

Article IV.  Administration of Plan

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

official records of the
Company.  If a subsidiary or affiliate of
Deere & Company that has adopted this Plan ceases to be a subsidiary
or affiliate, the participation in this Plan by the employees of such
subsidiary or affiliate shall terminate, and no employees of such former
affiliate or subsidiary shall accrue or be entitled to a benefit under this
Plan on and after the date such company ceases to be a subsidiary or affiliate
of Deere & Company (other than former employees who were receiving
benefit payments as of such date).

 

8

 

ARTICLE
V.   Miscellaneous

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

APPENDIX A

 

ARTICLE A-1

APPLICATION; PAYMENT OF
PLAN BENEFIT AFTER 2006

 

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

 

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

 

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

 

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

 

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

 

Participants
who Separated from Service after 31 December 2004 and before 1 January 2008
shall also receive a one-time lump sum cash payment equal to

 

A-1

 

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

 

ARTICLE A-2

DEATH AND DISABILITY BENEFITS

 

A-2.1      Application of Article A-2.

 

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

 

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

 

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

 

A-2.3      Rules Based on Timing of Death.

 

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

 

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

 

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

 

(b)           Separation From Service Due to Death.

 

(1)           If
an active Participant (i.e., a Participant who has not incurred a Separation
from Service) who is Retirement Eligible incurs a Separation from

 

A-2

 

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

 

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

 

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

 

A-2.4      Separation
from Service Due to Disability.

 

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

 

(b)           Separation From Service Prior to 1 January 2005. 
If a Participant incurred a Separation from Service due to Disability
prior to 1 January 2005, is entitled to a Plan Benefit based in part on
credit for service with the Company after 31 December 2004 and, as of 1 January 2005,
has not commenced payment of his Plan

 

A-3

 

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

 

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

 

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

 

A-4

APPENDIX B

 

ARTICLE B-1

MISCELLANEOUS PROVISIONS

 

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

 

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

 

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

 

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

 

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

 

B-1

 

of Absence, until the date in (i) above,
and (iii) then incurred a Separation from Service with the Company.

 

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

 

ARTICLE B-2

AMENDMENT AND TERMINATION

 

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

 

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

 

ARTICLE B-3

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

B-2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

B-3

 

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

 

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

 

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

 

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

 

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

 

B-4Exhibit 10.6

 

DEERE & COMPANY

 

NONEMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN

 

 

 

EFFECTIVE
DATE: 01 JANUARY 1997

 

REVISED:  26 MAY 1999

AMENDED
BY SUPPLEMENT: 30 AUGUST 2006

AMENDED: 29 NOVEMBER 2006

AMENDED AND RESTATED 13 DECEMBER 2007: 
EFFECTIVE 1 JANUARY 2008

 

(For special rules applicable to deferrals after 2004

 see the supplement beginning on page 12)

 

 

 

DEERE & COMPANY

 

NONEMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN

 

I.                                         Purpose

 

The purposes of the Deere &
Company Nonemployee Director Deferred Compensation Plan (“Plan”) are to attract
and retain highly qualified individuals to serve as Directors of Deere &
Company (“Company”) and to relate Nonemployee Directors’ interests more closely
to the Company’s performance and its shareholders’ interests.

 

II.                                     Eligibility

 

Each member of the Board
of Directors (“Board”) of the Company who is not an employee of the Company or
any of its subsidiaries (“Nonemployee Director”) is eligible to participate in
the Plan.

 

III.                                 Definitions

 

(a)                                  Committee.   The Nominating Committee of the Board or any
successor committee of the Board.

 

(b)                                 Common
Stock.   The publicly traded $1 par
value common stock of the Company or any successor.

 

(c)                                  Compensation.   Amounts payable for services as a
Nonemployee Director, excluding reimbursed expenses.

 

(d)                                 Deferred
Account.   The bookkeeping account
maintained for each participating Nonemployee Director which will be credited
with Deferred Amounts pursuant to the terms hereof.

 

(e)                                  Deferred
Amounts.   All amounts credited to a
Nonemployee Director’s Deferred Account pursuant to the Plan.

 

(f)                                    Elective
Deferrals.   Compensation voluntarily
deferred by a Nonemployee Director under the Plan after 31 December 1996
(other than Lump-Sum Deferral defined below).

 

(g)                                 Lump-Sum
Deferral.   A one-time lump-sum
amount for each Nonemployee Director serving on 31 December 1996, which
amount is deferred under the Plan as described in Section V, below, as a
result of the termination of the John Deere Pension Benefit Plan for Directors 

 

2

 

(“Retirement Plan”).

 

(h)                                 Participant.   A Nonemployee Director for whom a Lump-Sum
Deferral occurs on the Effective Date, or who elects to participate in the
Plan.

 

(i)                                     Pre-1997
Elective Deferrals.   Compensation
deferred by a Nonemployee Director prior to 1 January 1997 under the
predecessor Directors’ Deferred Compensation Plan approved 30 January 1973,
as amended from time to time.

 

(j)                                     Secretary.  The Secretary of the Company.

 

IV.                                Effective
Date

 

The effective date of the
Plan is 1 January 1997 (“Effective Date”).

 

V.                                    Lump-Sum
Deferral

 

As of the Effective Date,
the Retirement Plan will be eliminated and the present value of the life
annuity offered under the Retirement Plan for each Nonemployee Director who is
both a participant in the Retirement Plan and a member of the Board on the
Effective Date will be deposited into the Deferred Account of such Nonemployee
Director.  The present value will be
determined by using a discount factor which shall be the rate for 10-year
treasury stripped bonds in effect as of 31 December 1996 and by using the
1984 Unisex Pension Mortality tables published in the Pension Benefit Guaranty
Corporation Regulation 2619, Appendix A.

 

VI.                                Elective
Deferral

 

(a)                                  Participants
may elect to defer a part or all of their annual Compensation by making an
irrevocable deferral election in writing on a form provided by the Company and
delivered to the Company not later than the Company may direct.  Elective Deferrals will become effective on
the first day of the following calendar quarter, at which time they become
irrevocable.  Notwithstanding the
preceding sentence, any person who first becomes a Nonemployee Director during
a calendar quarter, may elect, before his or her term begins, to defer a part
or all of his or her compensation that would otherwise be payable to him or her
during the remainder of such calendar quarter and each succeeding calendar
quarter until such election is modified or terminated as provided herein.  A Participant may discontinue deferrals, or
may change his or her investment choices, for future quarters by providing a
written election delivered to the Company not later than the Company may
direct.  These changes will become 

 

3

 

effective on the first day of the following calendar
quarter.

 

(b)           If the
amount of a Participant’s Compensation is changed, the deferral percentage and
investment alternative elections shall continue to be applied to the new
Compensation amount after the change.

 

VII.         Deferred
Account

 

(a)           The
Company shall establish a separate Deferred Account for each Participant.

 

(b)           Pre-1997
Elective Deferrals and the interest earned thereon shall be credited to the
Deferred Account and will continue to be invested in the interest-bearing
investment alternative described below.

 

(c)           Two
investment alternatives will be available, as of the Effective Date: an
interest-bearing alternative and an equity alternative denominated in units of
Deere Common Stock.  Additional
investment alternatives may be added by subsequent amendment of the Plan.

 

(d)           At
the time of Elective Deferral, Participants may direct their deferrals into
either investment alternative, or a combination of the two, in increments of
5%.

 

(e)           Deferred
amounts credited into the interest-bearing investment alternative will be
credited with interest at the end of each calendar quarter at the interest rate
identified in the U.S. Federal Reserve Statistical Release, “bank prime loan”
rate for the second month of each calendar quarter, plus 2%.

 

(f)            Deferred
Amounts credited into the equity alternative shall be expressed and credited to
each Participant’s Deferred Account in units (“Units”) determined as
hereinafter provided.  As of each date on
which Deferred Amounts are credited into the equity investment alternative, the
Company shall credit to such Deferred Account a number of Units and fractional
Units, rounded to three decimal places, determined by dividing such Deferred
Amounts by the Unit Value (as defined below) of one share of Common Stock.  The “Unit Value” of one share of Common Stock
shall be the closing price of the Common Stock on the New York Stock Exchange
on the date on which Deferred Amounts are credited to the Deferred Account or a
payment is to be valued under Section VIII (b) below, as the case may
be; or if there were no sales on that day, then Unit Value shall be the closing
price on the New York Stock Exchange Composite Tape on the most recent
preceding day on which there were sales. 
The Lump-Sum Deferral shall be credited as of the Effective Date.

 

4

 

(g)           When
dividends are paid with respect to the Company’s Common Stock, the Company
shall calculate the amount which would have been payable on the Units in each
Participant’s Deferred Account on each dividend record date as if each Unit
represented one issued and outstanding share of the Company’s Common
Stock.  The applicable number of Units
and fractional Units equal to the amount of such dividends (based on the Unit
Value of one share of the Company’s Common Stock on the dividend payment date)
shall be credited to each Participant’s Deferred Account.  In the event of any capital stock adjustment
to the Company’s Common Stock or other similar event, the number of Units or
fractional Units credited to Deferred Accounts shall be adjusted to
appropriately reflect such event.

 

(h)           Participants
credited with Units hereunder shall not have any voting rights in respect
thereof.

 

VIII.        Payment
of Benefits

 

(a)           The
value of a Participant’s Deferred Account shall be payable solely in cash,
either in (i) a lump sum, or (ii) in up to ten equal annual
installments, in accordance with an election made by the Participant by written
notice delivered to the Company prior to the calendar year in which payments
are to be made or commence.  Such payment
or payments shall be made or commence, as the case may be, on the first
business day of the calendar year following the year of the termination of
service as Director.

 

(b)           Any
lump sum payment shall be valued as of the end of the most recent calendar
month prior to the payment date.  The
amount of each installment payment shall be determined by dividing the
aggregate value credited to the Participant’s Deferred Account (as of the end
of the most recent calendar month prior to the payment date) by the remaining
number of unpaid installments; provided, however, that the Committee may, in
its absolute discretion, approve any other method of determining the amount of each
installment payment in order to achieve approximately equal installment
payments over the installment period.

 

(c)           The
Company shall have the right to deduct from all payments under this Plan the
amount necessary to satisfy any Federal, state, or local withholding tax
requirements.

 

(d)           The
Committee, at its sole discretion, may alter the timing or manner of payment of
Deferred Amounts in the event that the Participant establishes, to the
satisfaction of the Board, severe financial hardship.  In such event, the Committee may:

 

(1)           provide
that all or a portion of the amount previously deferred by 

 

5

 

the Participant shall be paid immediately in a
lump-sum cash payment;

 

(2)           provide
that all or a portion of the installments payable over a period of time shall
be paid immediately in a lump sum; or

 

(3)           provide
for such other installment payment schedules as it deems appropriate under the
circumstances.

 

It is expressly provided
that the amount distributed shall not be in excess of that amount which is
necessary for the Participant to meet the financial hardship.  Severe financial hardship will be deemed to
have occurred in the event of the Participant’s impending bankruptcy, the long
and serious illness of Participant or a dependent, other events of similar
magnitude, or the invalidation of a deferral election by the Internal Revenue
Service.  The Committee’s decision in
passing on the severe financial hardship of the Participant and the manner in
which, if at all, the payment of Deferred Amounts shall be altered or modified
shall be final, conclusive and not subject to appeal.

 

IX.           Death
of Participant

 

(a)           In the
event of the death of a Participant, any amounts remaining in the Deferred
Account will be paid to the Participant’s designated beneficiary in accordance
with the distribution choices (e.g., lump sum or installments) elected by the
Participant.  These payments will
commence on the first business day of the calendar year following the
Participant’s death.  Amounts unpaid
after the death of both the Participant and the designated beneficiary will be
paid in a lump sum to the executor or administrator of the estate of the last
of them to die.  In the event that a
Participant had not properly filed a beneficiary designation with the Company
prior to his or her death or, in the event a beneficiary predeceases the
Participant, any unpaid deferrals will be paid in a lump sum to the Participant’s
estate.

 

(b)           No
beneficiary hereunder shall have any right to assign, alienate, pledge,
hypothecate, anticipate, or in any way create a lien upon any part of this
Plan, nor shall the interest of any beneficiary or any distributions due or
accruing to such beneficiary be liable in any way for the debts, defaults, or
obligations of such beneficiary, whether such obligations arise out of contract
or tort.

 

6

 

X.            Change
of Control

 

The following
acceleration and valuation provisions shall apply in the event of a “Change of
Control” or “Potential Change of Control,” as defined in this Section X.

 

(a)           In
the event that:

 

(i)            a
“Change of Control” as defined in paragraph (b) of this Section X
occurs; or

 

(ii)           a
“Potential Change of Control” as defined in paragraph (c) of this Section X
occurs and the Committee or the Board determines that the provisions of this
paragraph (a) should be invoked;

 

then, unless otherwise
determined by the Committee or the Board in writing prior to the occurrence of
such Change of Control, the value of all Units credited to a Participant’s
Deferred Account shall be converted to cash based on the “Change of Control
Price” (as defined in paragraph X(d)) and the aggregate amount credited to the
Participant’s Deferred Account under the Plan shall be paid in one lump-sum
payment as soon as practicable following the date the Change of Control or
Potential Change of Control occurs, but in no event more than 90 days after
such date.

 

(b)           For
purposes of paragraph (a) of this Section X, a “Change of Control”
means a change in control of a nature that would be required to be reported in
response to Schedule 14A of Regulation 14A promulgated under the Securities
Exchange Act of 1934 (“Exchange Act”) whether or not the Company is then
subject to such reporting requirement, provided that, without limitation, such
a Change of Control shall be deemed to have occurred if:

 

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

 

(ii)           during
any period of two consecutive years, there shall cease to be a majority of the
Board comprised as follows: individuals who at the beginning of such period
constitute the Board and any new director(s) whose election by the Board
or nomination for election by the Company’s stockholders was approved by a vote
of at least 

 

7

 

_ of the directors
then still in office who either were directors at the beginning of the period
or whose election or nomination for election was previously so approved;

 

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

consolidation; or

 

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

 

(c)           For
purposes of paragraph (a) of this Section X, a “Potential Change of
Control” means the happening of any of the following:

 

(i)            the
entering into an agreement by the Company (other than with a Participant in the
Plan or group of Participants in the Plan), the consummation of which would
result in a Change of Control of the Company as defined in paragraph (b) of
this Section X; or

 

(ii)           the
acquisition of beneficial ownership, directly or indirectly, by any entity,
person or group (other than a Participant or group of Participants, the Company
or a majority owned subsidiary of the Company, or any of the Company’s employee
benefit plans including its trustee) of securities of the Company representing
5%  or more of the combined voting power
of the Company’s outstanding securities and the adoption by the Board of a
resolution to the effect that a Potential Change of Control of the Company has
occurred for purposes of the Plan.

 

(d)           For
purposes of this Section X, “Change of Control Price” means the highest
price per share of the Common Stock paid in any transaction reported on the New
York Stock Exchange Composite Tape, or offered in any transaction related to a
Potential or actual Change of Control of the Company at:

 

(i)            the
date the Change of Control occurs;

 

(ii)           the
date the Potential Change of Control is determined to have occurred; or

 

8

 

(iii)          such other date as the Committee may
determine before the Change of Control occurs, or before or at the time the
Potential Change of Control is determined to have occurred or the Committee or
the Board determines that the provisions of paragraph X(a) shall be
invoked, or at any time selected by the Committee during the 60 day period
preceding such date.

 

(e)           Notwithstanding
anything to the contrary in the Plan, in the event of a Change of Control (i) the
Plan may not be amended to reduce the formulas contained in paragraph VII(e) which
determine the rate at which amounts equivalent to interest accrue with respect
to cash amounts credited to a Participant’s Deferred Account, including cash
amounts attributable to the conversion of Units in a Participant’s Deferred
Account pursuant to paragraph X(a), and (ii) the successor Plan
Administrator referred to in paragraph XI(d) shall determine the rates
under the interest formulas contained in paragraph VII(e).

 

XI.           Miscellaneous

 

(a)           The
right of a Participant to receive any amount credited to the Participant’s
Deferred Account shall not be transferable or assignable by the Participant, in
whole or in part, either directly or by operation of law or otherwise,
including, but not by way of limitation, execution, levy, garnishment,
attachment, pledge, bankruptcy, or in any other manner, and no right or
interest established herein shall be liable for, or subject to, any obligation
or liability of the Participant, except by will or by the laws of descent and
distribution.  To the extent that any
person acquires a right to receive any amount credited to a Participant’s
Deferred Account hereunder, such right shall be no greater than that of an
unsecured general creditor of the Company. 
Except as expressly provided herein, any person having an interest in
any amount credited to a Participant’s Deferred Account under the Plan shall
not be entitled to payment until the date the amount is due and payable.  No person shall be entitled to anticipate any
payment by assignment, alienation, sale, pledge, encumbrance or transfer in any
form or manner prior to actual or constructive receipt thereof.

 

(b)           The
amounts credited to the Deferred Account shall constitute an unsecured claim
against the general funds of the Company. 
The Company shall not be required to reserve or otherwise set aside
funds or shares of Common Stock for the payment of its obligations
hereunder.  The Plan is unfunded, and the
Company will make Plan benefit payments solely from the general assets of the
Company as benefit payments come due from time to time.

 

9

 

(c)                                  Except
as herein provided, this Plan shall be binding upon the parties hereto, their
designated beneficiaries, heirs, executors, administrators, successors
(including but not limited to successors resulting from any corporate merger,
purchase, consolidation or otherwise of all or substantially all of the
business or assets of the Company) or assigns.

 

(d)                                 In
the event of a Change in Control, the Committee shall interpret the Plan and
make all determinations, construe any ambiguity, supply any omission, and
reconcile any inconsistency, deemed necessary or desirable for the Plan’s
implementation.  The determination of the
Committee shall be conclusive.  The
Committee may obtain such advice or assistance as it deems appropriate from
persons not serving on the Committee. 
The Secretary or other appropriate officer of the Company shall, in the
event of any Change in Control, name as successor Plan Administrator any person
or entity (including, without limitation, a bank or trust company).  Following a Change in Control, the successor
Plan Administrator shall interpret the Plan and make all determinations deemed
necessary or desirable for the Plan’s implementation.  The determination of the successor Plan
Administrator shall be conclusive.  The
Company shall provide the successor Plan Administrator with such records and
information as are necessary for the proper administration of the Plan.  The successor Plan Administrator shall rely
on such records and other information as the successor Plan Administrator shall
in its judgment deem necessary or appropriate in determining the eligibility of
a Participant and the amount payable to a Participant under the Plan.

 

(e)                                  The
Board, upon recommendation of the Committee, may at any time amend or terminate
the Plan provided that no amendment or termination shall impair the rights of a
Participant with respect to amounts then credited to the Participant’s Deferred
Account, except with his or her consent.

 

(f)                                    Each
Participant will receive a quarterly statement indicating the amounts credited
to the Participant’s Deferred Account as of the end of the preceding calendar
quarter.

 

(g)                                 If
adjustments are made to outstanding shares of Common Stock as a result of stock
dividends, stock splits, recapitalizations, reorganizations, mergers,
consolidations and other changes in the corporate structure of the Company
affecting the Common Stock, an appropriate adjustment shall also be made in the
number and type of Units credited to the Participant’s Deferred Account to
prevent dilution or enlargement of rights. The Committee’s or Board’s
determination as to what adjustments shall be made, and the extent thereof,
shall be final.

 

(h)                                 This
Plan and all elections hereunder shall be construed in accordance with and
governed by the laws of the State of Illinois.

 

10

 

(i)                                     Except
where otherwise indicated by the context, any term used herein connoting gender
also shall include both the masculine and feminine; the plural shall include
the singular, and the singular shall include the plural.

 

(j)                                     In
the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of
the Plan, and the Plan shall be construed and enforced as if the illegal or
invalid provision had not been included.

 

(k)                                  Nothing
in the Plan shall be deemed to create any obligation on the part of the Board
to nominate any Nonemployee Director for reelection by the Company’s
shareholders, or rights to any benefits not specifically provided by the Plan.

 

(l)                                     The
crediting of Units and the payment of cash under the Plan shall be subject to
all applicable laws, rules, and regulations, and to such approvals by any
governmental agencies as may be required.

 

(m)                               The
Company may impose such other restrictions on any Units credited pursuant to
the Plan as it may deem advisable including, without limitation, restrictions
intended to achieve compliance with the Securities Act of 1933, as amended, Section 16
of the Securities Exchange Act of 1934, as amended, with the requirements of
any stock exchange upon which Common Stock is listed, and with any blue sky or
other securities laws applicable to such Units.

 

(n)                                 With
respect to any Participants subject to Section 16 of the Securities
Exchange Act, transactions under the Plan are intended to comply with all
applicable conditions of Rule 16b-3 or its successors.  To the extent any provision of the Plan or
action by the Board fails to so comply, it shall be deemed null and void to the
extent permitted by law and deemed advisable by the Board.

 

11

 

SUPPLEMENT
TO

DEERE &
COMPANY

NONEMPLOYEE
DIRECTOR DEFERRED COMPENSATION PLAN

APPLICABLE
TO AMOUNTS DEFERRED AFTER DECEMBER 31, 2004

 

The following provisions
will apply only to amounts deferred under the Plan after December 31, 2004
and not to amounts deferred under the Plan that were both earned and vested
before January 1, 2005. Amounts deferred under the Plan prior to January 1,
2005 will be subject to the terms of the Plan without regard to this
supplement. Except to the extent amended hereby, the terms of the Plan shall
continue to apply to amounts deferred pursuant to the Plan.

 

1.               The following definitions are added to Section III (Definitions).

 

(a)                                  Change in Control Event.  A change
in ownership, a change in effective control, or a change in the ownership of a
substantial portion of the assets of the Company within the meaning of the
default rules under Section 409A.

 

(l)                                     Section 409A.  Section 409A of the Internal Revenue
Code and the regulations and other guidance thereunder.

 

(m)                               Separation from Service.  With
respect to a Participant, a separation from service as a director or
independent contractor within the meaning of the default rules of Section 409A.

 

(n)                                 Unforeseeable
Emergency.  A severe financial
hardship to the Participant resulting from (i) an illness or accident of
the Participant or his spouse, dependent (within the meaning of Section 152
of the Internal Revenue Code, but without giving effect to Section 152(b)(1),
(b)(2) and (d)(1)(B) (“Dependent”)) or beneficiary, (ii) the
loss of the Participant’s property due to casualty (including the need to
rebuild a home following damage to a home not otherwise covered by insurance,
for example, not as a result of a natural disaster), (iii) the imminent
foreclosure of or eviction from the Participant’s primary residence, (iv) the
need to pay for medical expenses, including non-refundable deductibles, as well
as for the costs of prescription drug medication, (v) the need to pay for
the funeral expenses of a spouse, Dependent or beneficiary, or (vi) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant. 
The purchase of a primary residence and the 

payment of college tuition shall not constitute
Unforeseeable Emergencies.

 

2.               Subsections (a) through (j) of Section III (Definitions) are renumbered as
subsections 

 

12

 

(b) through (k).

 

3.               Section VI(a) (Elective
Deferral) is restated in its
entirety as follows:

 

(a)                                  Participants
may elect to defer a part or all of their annual Compensation by making an
irrevocable deferral election in writing on a form provided by the Company and
delivered to the Company not later than the last day of the calendar year preceding
the calendar year in which the deferrals are to commence, at which time the
deferral election becomes irrevocable. 
Notwithstanding the preceding sentence, any person who first becomes a
Nonemployee Director during a calendar year, may elect, before or within 30
days after his or her term begins, to defer a part or all of his or her
compensation that would otherwise be payable to him or her during the remainder
of such calendar year and each succeeding calendar year until such election is
modified or terminated as provided herein, except that no such election shall
be available to a Nonemployee Director if prior to becoming eligible to
participate in the Plan, the Nonemployee Director was eligible to participate
in any other arrangement of the Company or its subsidiaries or affiliates that
is an “elective account balance” plan (as such term is defined for purposes of Section 409A)
for directors or independent contractors, other than a separation pay
arrangement.  A Participant may
discontinue or modify deferrals, or may change his or her investment choices,
for future calendar years by providing an irrevocable written election
delivered to the Company not later than the close of the calendar year
preceding the calendar year in which the changes are to commence.  These changes will become effective on the
first day of the following calendar year.

 

4.               Section VIII (Payment of
Benefits) is restated in its
entirety as follows:

 

(a)                                  The
value of a Participant’s Deferred Account attributable to amounts deferred in
respect of any calendar year (including related investment returns) shall be
payable solely in cash, either in (i) a lump sum, or (ii) in up to
ten equal annual installments, in accordance with an election made by the
Participant by written notice delivered to the Company prior to the calendar
year for which the services to the Company are rendered.  Such payment or payments shall be made or
commence, as the case may be, on the first business day of the calendar year
following the year of the Participant’s Separation from Service.

 

(b)                                 Notwithstanding anything else herein to the
contrary, to the extent that a Participant is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code, as
determined under the Company’s established methodology for determining
specified employees, on the date on which the Participant incurs a Separation
from Service, no distribution upon Separation from Service (including upon
retirement or other 

 

13

 

termination) may be made before
the first business day of the first calendar quarter that begins at least six (6) months
after such Participant’s date of Separation from Service, or, if earlier, the
date of the Participant’s death, and any distribution that would be made but
for application of this provision shall instead be aggregated with, and paid
together with, the first distribution scheduled to be made after the end of
such delay period (or, if earlier, the date of the Participant’s death).

 

(c)                                  Any
lump sum payment shall be valued as of the end of the most recent calendar
month prior to the payment date.  The
amount of each installment payment shall be determined by dividing the
aggregate value credited to the Participant’s Deferred Account (as of the end
of the most recent calendar month prior to the payment date) by the remaining
number of unpaid installments.

 

(d)                                 The
Company shall have the right to deduct from all payments under this Plan the
amount necessary to satisfy any Federal, state, or local withholding tax
requirements.

 

(e)                                  The
Committee, at its sole discretion, may alter the timing or manner of payment of
Deferred Amounts in the event that the Participant establishes, to the
satisfaction of the Board, that there has occurred an Unforeseeable
Emergency.  In such event, the Committee
may:

 

(i)                                     provide
that all or a portion of the amount previously deferred by the Participant shall
be paid immediately in a lump-sum cash payment; or

 

(ii)                                  provide
that all or a portion of the installments payable over a period of time shall
be paid immediately in a lump sum.

 

It is expressly provided
that, as determined under regulations of the Secretary of the United States
Treasury, the amount distributed shall not be in excess of that amount which is
reasonably necessary to satisfy the Unforeseeable
Emergency (which may include amounts necessary to pay taxes reasonably
anticipated as a result of such distribution(s)), after taking into
account the extent to which such hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise, or by liquidation of
the Participant’s assets to the extent liquidation of such assets would not
cause severe financial hardship, or by cessation of deferrals under the Plan.  If a Participant requests and receives a
distribution on account of Unforeseeable Emergency, the Participant’s deferrals
under the Plan shall cease and his election under the Plan shall be
canceled.  Any new deferral election
following cancellation of a prior deferral election due to Unforeseeable
Emergency shall be subject to the timing requirements of Section VI and Section 409A.

 

14

 

The Committee’s decision
in passing on the occurrence of an Unforeseeable Emergency for the Participant
and the manner in which, if at all, the payment of Deferred Amounts shall be
altered or modified shall be final, conclusive and not subject to appeal.

 

(f)                                    Notwithstanding
anything to the contrary herein, this Plan does not permit the acceleration of
the time or schedule of any distribution under the Plan, except as would not
result in the imposition on any person of additional taxes, penalties or
interest under Section 409A.

 

5.               Subsection (a) of Section IX
(Death of Participant) is restated in its entirety as
follows:

 

                                                (a)       In
the event of the death of a Participant, any amounts remaining in the Deferred
Account will be paid to the Participant’s designated beneficiary in a single
lump sum on the first business day of the calendar year following the
Participant’s death.  In the event that a
Participant had not properly filed a beneficiary designation with the Company
prior to his or her death, or if the beneficiary dies prior to the payment date
set forth in the preceding sentence, the balance of the Participant’s Deferred
Account will be paid to his or her estate on such payment date.

 

6.               Section X (Change in
Control) is restated in its
entirety as follows:

 

The following acceleration and
valuation provisions shall apply in the event of a Change in Control Event.

 

                                                (a)       In
the event that a Change in Control Event occurs, then the value of all Units
credited to a Participant’s Deferred Account shall be converted to cash,
determined by multiplying the number of Units credited to the Participant’s
Deferred Account on the date of the Change in Control Event by the “Change in
Control Price” (as defined in paragraph X(b)), and the aggregate amount credited
to the Participant’s Deferred Account under the Plan shall be paid in one
lump-sum payment as soon as practicable following the date the Change in
Control Event occurs, but in no event more than 90 days after such date.

 

                                                (b)       For
purposes of this Section X, “Change in Control Price” means the closing
selling price of a share of Common Stock on the date the Change in Control
Event occurs, or if there are no sales on the date the Change in Control Event
occurs, the closing selling price of a share of Common Stock on the trading day
immediately preceding the date the Change in Control Event occurs, in either
case as reported on the composite tape for securities listed on the NYSE, or
such other national securities exchange as may be designated by the Committee.

 

15

 

                                                (c)       Notwithstanding
anything to the contrary in the Plan, in the event of a Change in Control Event
(i) the Plan may not be amended to reduce the formulas contained in
paragraph VII(e), which determine the rate at which amounts equivalent to
interest accrue with respect to cash amounts credited to a Participant’s
Deferred Account, including cash amounts attributable to the conversion of
Units in a Participant’s Deferred Account pursuant to paragraph X(a), and (ii) the
successor Plan Administrator referred to in paragraph XI(d) shall
determine the rates under the interest formulas contained in paragraph VII(e).

 

7.  Subsection XI(b) (Miscellaneous)
is amended by adding the following after the initial  sentence thereof:

 

“No
Participant or beneficiary shall have any interest whatsoever in any specific
asset of the Company.

 

8.  Subsection XI(d) (Miscellaneous)
is amended by replacing each occurrence of the term “Change in Control” with “Change
in Control Event”.

 

9.  Subsection
XI(e) (Miscellaneous) is amended by adding thereto:

 

“If the Plan is
terminated, the balance of the Participant’s Deferred Account shall be paid in
accordance with normal time and form of payment specified hereunder, provided
that the Committee, in its discretion and in full and complete settlement of
the Company’s obligations under this Plan, may cause the Company to distribute
the full amount of a Participant’s Deferred Account to the Participant in a
single lump sum to the extent that such distribution may be effected in a manner that
will not result in the imposition on any person of additional taxes,
penalties or interest under Section 409A.

 

Notwithstanding any provision in this Plan to the contrary, the Board,
the Committee or the Vice President of Human Resources of the Company shall
have the unilateral right to amend or modify the Plan to the extent the Board,
the Committee or the Vice President of Human Resources of the Company deems
such action to be necessary or advisable to avoid the imposition on any person
of adverse or unintended tax consequences under Section 409A, including recognition of income in respect of any benefits under this
Plan before such benefits are paid or the imposition of additional taxes, penalties
or interest.  Any determinations made by the Board, the Committee
or the Vice President of Human Resources of the Company in this regard shall be
final, conclusive and binding on all persons.”

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]