Document:

Exhibit 10.1

 

JOHN DEERE DEFINED
CONTRIBUTION RESTORATION PLAN

 

EFFECTIVE 1 JANUARY
1997

 

AMENDED:  12 January 2000

EFFECTIVE:  1 January 2000

 

AMENDED:  28 November 2000

EFFECTIVE:  1 January 2001

 

AMENDED: 1 DECEMBER
2005

EFFECTIVE: 1 JANUARY 2005

 

AMENDED: 13 DECEMBER
2007

EFFECTIVE: 1 JANUARY 2008

 

 

	
  TABLE OF
  CONTENTS

  	
   

  
	
   

  	
   

  
	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 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

  
	
   

  	
   

  
	
  ARTICLE II. PARTICIPATION

  	
   

  
	
   

  	
   

  
	
  2.1 Eligibility to Participate

  	
  3

  
	
  2.2 Effect of Transfer

  	
  3

  
	
  2.3 Beneficiaries

  	
  3

  
	
   

  	
   

  
	
  ARTICLE III. CONTRIBUTIONS

  	
   

  
	
   

  	
   

  
	
  3.1 Salary Deferral Allocations

  	
  4

  
	
  3.2 Employer Matching Allocations

  	
  5

  
	
  3.3 Deferral Elections

  	
  5

  
	
  3.4 No Hardship Withdrawals

  	
  6

  
	
  3.5 FICA Tax

  	
  6

  
	
   

  	
   

  
	
  ARTICLE IV. ACCOUNTS AND RATE
  OF RETURN

  	
   

  
	
   

  	
   

  
	
  4.1 Participant Accounts

  	
  7

  
	
  4.2 Rate of Return

  	
  7

  
	
  4.3 Electing a Rate of Return

  	
  7

  
	
  4.4 Qualified Domestic Relations Orders

  	
  7

  
	
   

  	
   

  
	
  ARTICLE V. VESTING

  	
   

  
	
   

  	
   

  
	
  5.1 Vested Interest

  	
  8

  
	
  5.2 Forfeiture of Non-Vested Balances

  	
  8

  
	
   

  	
   

  
	
  ARTICLE VI. DISTRIBUTIONS

  	
   

  
	
   

  	
   

  
	
  6.1 Distributions for Separation from
  Service On and After 1 January 2006

  	
  9

  
	
  6.2 Distributions for Separation from
  Service from 1 January 2005 to 31 December 2005

  	
  10

  
	
  6.3 Distributions Prior to 1
  January 2005

  	
  11

  
	
  6.4 Death

  	
  12

  
	
  6.5 Disability

  	
  12

  
	
  6.6 Six-Month Delay

  	
  12

  

 

i

 

	
  6.7   Distribution
  of Net Gains Realized from Rate of Return Elections

  	
  12

  
	
   

  	
   

  
	
  ARTICLE VII.
  ADMINISTRATION, AMENDMENT AND TERMINATION

  	
   

  
	
   

  	
   

  
	
  7.1 Employment Rights

  	
  13

  
	
  7.2 Applicable Law

  	
  13

  
	
  7.3 Non-Alienation

  	
  13

  
	
  7.4 Withholding of Taxes

  	
  13

  
	
  7.5 Unsecured Interest, Funding and Rights
  Against Assets

  	
  13

  
	
  7.6 Effect on Other Benefit Plans

  	
  13

  
	
  7.7 Administration

  	
  13

  
	
  7.8 Amendment, Modification or Termination

  	
  14

  
	
  7.9 409A Amendments and Modifications

  	
  14

  
	
  7.10 Distribution Upon Plan Termination;
  Withdrawal from the Plan

  	
  14

  
	
  7.11 Withdrawal from Plan

  	
  14

  
	
  7.12 Definition of Subsidiary or Affiliate

  	
  15

  
	
   

  	
   

  
	
  ARTICLE VIII. DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  8.1 Section References

  	
  16

  
	
  8.2 Terms Defined

  	
  16

  

 

 

ii

 

JOHN DEERE DEFINED
CONTRIBUTION RESTORATION PLAN

 

ARTICLE I.  ESTABLISHMENT, PURPOSE AND CONSTRUCTION

 

1.1  Establishment.  Effective 1 January 1997, Deere &
Company established the John Deere Defined Contribution Restoration Plan (the “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 have
adopted the John Deere Savings and Investment Plan (the “SIP”).  Deere & Company and its United
States subsidiaries and affiliates that have adopted the SIP (jointly the “Company”)
are also deemed to have adopted this Plan.

 

Effective as of 1 January 2007 (unless otherwise provided herein),
the Plan is amended pursuant to Section 409A of the Code.  Amendments to the Plan adopted in 2007 are
intended to align Plan provisions with prior operational changes and avoid the
imposition on any Participant of taxes and interest pursuant to Section 409A
of the Code.

 

1.2  Purpose.  The Company maintains a defined contribution
plan, known as the John Deere Savings and Investment Plan (the “SIP”),
which is intended to be a qualified defined contribution plan which meets the
requirements of Section 401(a) and 
401(k) of the Internal Revenue Code of 1986, as amended and the
rulings and regulations thereunder (the “Code”).  Section 401(a)(17) of the Code limits
the amount of compensation paid to a participant in a qualified defined
contribution plan which may be taken into account in determining contributions
under such a plan.  Section 402(g) of
the Code limits the amount of compensation a participant may defer in a
qualified defined contribution plan.  Section 415
of the Code limits the amount which may be contributed under a qualified
defined contribution plan.  Effective as
of 1 January, 2007, this Plan is intended to provide contributions which, are
reasonably comparable to the contributions which participants could have
received under the SIP if they participated in the SIP and if there were no
limitations imposed by Sections 401(a)(17), 402(g) and 415 of the
Code.  Prior to 2007, the Plan was
intended to restore contributions which, when combined with the amount actually
contributed under the SIP, are reasonably comparable to the contributions which
participants in the SIP would have received under such plan if there were no
limitations imposed by Sections 401(a)(17), 402(g) and 415 of the Code.

 

The 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, as amended, and the rulings and
regulations thereunder (“ERISA”).

 

1.3  Effective Date and Plan Year. The Plan
was first effective 1 January 1997. 
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 with the
exception of the first Plan Year which will start 1 January 1997 and end
31 October 1997.

 

 

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 become eligible to defer compensation
hereunder on or after 1 January 1997.

 

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 SIP and the 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.  References to Sections are references to
sections in the Plan, unless otherwise provided.

 

2

 

ARTICLE II.  PARTICIPATION

 

2.1  Eligibility to Participate.

 

(a)                                 Effective as
of 1 January 2006, any Employee not participating in the Traditional
Option under the SIP who is an active Employee on 31 October of a calendar
year shall be eligible to participate in the Plan (a “Participant”) during the
subsequent calendar year, provided they have eligible Compensation for the
calendar year of participation in excess of the limit under Section 401(a)(17)
of the Code.

 

(b)                                Prior to
2006, any employee participating in the Contemporary Option under the SIP whose
salary deferral and matching contribution under the SIP are reduced by the
limitations imposed by Sections 401(a)(17), 402(g) and 415 of the Code
shall be eligible to participate in the 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 participation in the Plan; however, any past contributions
and applicable matching contributions will continue to be accounted for as
elected by the employee subject to Section 4.2 of this Plan.

 

2.3  Beneficiaries.  Beneficiaries under this Plan shall be
determined in accordance with Section 8.6 of the SIP; however,
beneficiaries for this Plan shall be designated on a separate form and may be
an individual or individuals other than beneficiaries designated under the SIP.

 

3

 

ARTICLE III.  CONTRIBUTIONS

 

3.1  Salary Deferral Allocations.

 

(a)                                 Effective 1 January 2007.  Effective as of 1 January 2007, pursuant
to a salary deferral agreement in force under this Plan and subject to this Article III,
the maximum amount of deferrals that may be allocated during a calendar year to
a Participant’s salary deferral account under this Plan (“Account”) is
determined as follows:

 

(i)                                     the deferral
percentage elected under this Plan not to exceed 6%, multiplied by,

 

(ii)                                  eligible
Compensation for a calendar year in excess of the limit under Section 401(a)(17)
of the Code.

 

A
Participant’s deferrals under the Plan shall not commence until such
Participant’s Compensation from such calendar year exceeds the amount
determined pursuant to Section 3.1(a)(ii).

 

(b)                                Prior to
2007.  Prior to January 1,
2007, pursuant to a salary deferral agreement in force under the SIP and
subject to the provisions hereof, any amount of contribution up to 6% of
Compensation for a calendar year that is restricted under Section 401(a)(17),
Section 402(g) or 415 of the Code shall be allocated to a
Participant’s salary deferral account under the Plan.

 

(c)                                  Eligible
Compensation. 
For purposes of Sections 3.1(a)(ii) and 3.3:

 

(i)                                   “Compensation”
for purposes of Deferral Allocations (as defined in Section 3.3 hereof)
under the Plan shall be Compensation as defined under the terms of the SIP in
effect on 1 January 2007, which is paid to a Participant during the period
beginning on the date on which such Participant first commences participation
in the Plan and ending on the date of such Participant’s Separation from
Service; provided, however, that such definition of Compensation
under the SIP shall be applied without giving effect to the exclusion of
amounts deferred under nonqualified deferred compensation plans, which are not
considered “compensation” within the meaning of Section 415 of the Code
and are not included in the definition of Compensation under the terms of the
SIP; provided, further, that for avoidance of doubt, amounts
received while a Participant is on a Special Paid Leave of Absence shall be
considered Compensation for purposes of this Plan.

 

(ii)                                Compensation
payable after 31 December of a calendar year for services performed during
the final payroll period of such calendar year containing such 31 December shall
be treated as Compensation for the subsequent calendar year;

 

4

 

(iii)                             Compensation
for Participants who participate in the Contemporary Option under the SIP shall
include Performance-Based Compensation received under the John Deere Short-Term
Incentive Bonus Plan; and

 

(iv)                            Sales
commissions shall be deemed earned in the calendar year in which the customer
remits to the Company the payment to which such Compensation relates.

 

(v)                               Compensation shall include salary continuation benefits paid to a
Disabled Participant during the 12-month period beginning on the Participant’s
absence from work due to Disability and ending on the date on which benefits
commence under the Company’s long-term disability plan, plus any
Performance-Based Compensation received under the John Deere Short-Term
Incentive Bonus Plan during such period,
if any.

 

3.2  Employer Matching
Allocations. 
Employer matching contributions, if any, corresponding to Deferral allocations
(as defined in Section 3.3 hereof) under Section 3.1 above shall be
allocated to a matching account under this Plan.  Employer matching contributions under this
Plan will be determined as described in Article IV, Section 4.1(b) of
the SIP.

 

3.3  Deferral Elections.

 

(a)                                  Effective 1 January 2007.

 

(i)                                   A
Participant’s deferral allocation under the Plan (the “Deferral Allocation”)
with respect to Performance-Based Compensation for a Plan Year commencing on or
after 1 November 2006 and with respect to all other Compensation for a
calendar year commencing on or after 1 January 2007 that is not
Performance-Based Compensation (including commission compensation earned during
the calendar year) shall be irrevocably determined pursuant to such
Participant’s deferral agreement in effect under this Plan as of 31 October of
the preceding calendar year; provided, however, that the Deferral
Allocation under the Plan shall not exceed 6% of the Participant’s
Compensation; and provided  further that the Participant’s
Deferral Allocation shall remain in effect for subsequent years until revoked
or modified.

 

(ii)                                Effective
for calendar years commencing on or after 1 January 2007 and Plan Years
commencing on or after 1 November 2006, an eligible Employee who does not
have a Deferral Allocation in place on 31 October shall not be permitted
to participate in the Plan during the following calendar year or Plan Year.

 

(iii)                             A
Participant’s elections with respect to his deferral agreement under the SIP
shall have no effect on such Participant’s Deferral Allocation under the Plan.

 

5

 

(b)                                 1 January 2006
to 31 December 2006. 
With respect to the calendar year commencing 1 January 2006 and the
Plan Year commencing 1 November 2005, a Participant’s Deferral Allocation
shall be based on the Participant’s deferral agreement under the SIP in effect
as of 31 December 2005.

 

(c)                                  1 January 2005
to 31 December 2005.

 

With
respect to the calendar year beginning 1 January 2005 and the Plan Year
beginning 1 November 2004, a Participant shall be permitted, through 15 March 2005,
pursuant to Q&A 21 in Notice 2005-1, to make a new Deferral Allocation
election or increase an existing Deferral Allocation with respect to amounts
that have not been paid or that have not become payable at the time of such
election; provided that the Participant’s deferral agreement under the
SIP in effect as of 15 March 2005 shall determine such Participant’s
Deferral Allocations under the Plan for the remainder of the 2005 calendar
year; and provided  further that such election with respect to the
Plan shall not exceed 6% of the Participant’s Compensation and shall be in
accordance with procedures established by the Plan Administrator.

 

(d)                                 Prior to 1 January 2005.  Effective 1 January 1997 or the first
day of any subsequent month through December 1, 2004, an eligible Employee
may elect to defer Compensation by completing a written election no later than
the last work day of any month authorizing the Company to defer a percentage of
Compensation under Section 4.8 of the SIP, provided that such employee is
participating in the Contemporary Option under the SIP.  Such election will remain in force until
changed or revoked by the Employee or the Employee ceases to be eligible to
participate according to Article II of this Plan.

 

3.4  No Hardship Withdrawals.  Hardship withdrawals from a Participant’s
Account under the Plan shall not be permitted. 
Effective as of 1 January 2006, if a Participant receives a
distribution of a Hardship Withdrawal from the SIP, his Deferral Allocation for
purposes of the Plan shall cease and his election under the Plan shall be
cancelled.  A new Deferral Allocation
with respect to the Plan following the cancellation of a prior Deferral
Allocation due to a Hardship Withdrawal under the SIP shall be subject to the
timing requirements of Section 3.3 and Section 409A.

 

3.5  FICA Tax.  All Deferral Allocations are subject to FICA
tax in the payroll period in which they are deferred.  Such FICA taxes will be withheld only as
necessary from the Participant’s Compensation prior to any deferral under this
Plan.

 

6

 

ARTICLE IV.  ACCOUNTS AND RATE OF RETURN

 

4.1  Participant Accounts.  Bookkeeping accounts will be maintained for
each participant under the Plan and shall be credited with a rate of return as
provided in Section 4.2 below.  Such
rate of return shall be credited as of the end of each business day.

 

4.2  Rate of Return.  The rate of return for a Participant’s
account shall be the average of Prime Rate plus two percent as determined by
the Federal Reserve statistical release for the month immediately preceding the
month for which such rate shall be credited to account balances for deferrals
and Employer matching contributions under this Plan.

 

Alternatively, a Participant may elect a rate of return equal to the
average of the S&P 500 Index for the month immediately preceding the month
for which such rate shall be credited to account balances for deferrals and
Employer matching contributions under this Plan.

 

4.3  Electing a Rate of Return.  A Participant shall be permitted to make an
annual election regarding the rate of return applicable to existing and future
account balances; provided that such election is submitted to the
Recordkeeper by 31 October of the prior calendar year.  As of 31 October of a calendar year, a
Participant’s election for purposes of this Section 4.3 shall be
irrevocable with respect to the following calendar year.  Any change to an election with respect to the
rate of return shall not become effective until 1 January of the calendar
year following the calendar year in which such change is submitted to the
Recordkeeper.  A Participant may elect
either of the above rates of return for any portion of the account in whole
percentage increments (as long as the minimum value of transfer is $250 or
more).  The sum of all such portions must
equal 100%.  If a Participant submits a
Deferral Allocation to the Recordkeeper, but fails to submit an election
regarding the rate of return, the rate of return for such Participant’s
existing and future account balances shall be the S&P 500 Index, until
modified by the Participant in accordance with this Section 4.3.

 

4.4  Qualified Domestic Relations
Orders. 
In the event of a Qualified Domestic Relations Order, a separate account
will be established for any qualified alternate payee subject to Article V.  No portion of the non-vested Employer
matching contributions or earnings thereon may be assigned to the Alternate
Payee.  The distribution option for an
Alternate Payee generally will be a single lump sum payment paid 180 days
following qualification by the Administrator of a domestic relations order as a
Qualified Domestic Relations Order in place of the Distribution Options shown
in Article VI, unless the Qualified Domestic Relations Order provides
otherwise.  The Administrator may
accelerate the time or schedule of payment under the Plan to an alternate payee
to the extent necessary to fulfill a Qualified Domestic Relations Order.

 

7

 

ARTICLE V.  VESTING

 

5.1  Vested
Interest. 
A Participant shall be fully vested in the portion of the account
comprised of Deferral Allocations and gains or losses thereon.  Furthermore, the Participant shall be 100% vested
after attaining three years of service credit on the Employer matching
contributions and the gains or losses thereon. 
In the event of a Qualified Domestic Relations Order, no portion of
non-vested Employer matching contributions or the gains or losses thereon may
be assigned to the alternate payee.

 

5.2  Forfeiture
of Non-Vested Balances. 
The Participant who incurs a Separation from Service prior to three
years of service credit shall forfeit all Employer matching contributions and
the earnings thereon.  In the event a
Participant is rehired by the Company within five (5) years following such
Separation from Service with the Company and, in accordance with the applicable
provisions of the SIP, such Participant earns three years of service credit
(including any service credit earned prior to the initial Separation from
Service), all forfeited Employer matching contributions and growth additions up
to the date of the Participant’s Separation from Service with the Company shall
be restored to the Participants account.

 

8

 

ARTICLE VI.  DISTRIBUTIONS

 

6.1  Distributions
for Separation from Service On and After 1 January 2006.

 

(a)                                  Participants
Retirement Eligible as of 31 December 2005.

 

(i)                                   A Participant who is Retirement Eligible as of 31 December 2005 and
incurs a Separation from Service on or after 1 January 2006 shall be
permitted, subject to Sections 6.4 and 6.5, to irrevocably elect the form of
distribution for his Account, pursuant to Section 6.3 and this Section 6.1(a)(i),
paid, at the Participant’s election, either (A) the first day of the month
containing the date that is six months and one day after his Separation from
Service, plus one day for each day of Vacation, (B) one or more years after his Separation from Service or (C) on a date specified by the
Participant, provided that if such specified date is a date prior to the
Participant’s Separation
from Service, then such specified date shall be disregarded and the Account
shall be distributed on the date that is six months and one day after the
Separation from Service, plus one day for each day of Vacation.  Elections pursuant to this Section 6.1(a)(i) shall
be made by no later than 31 December 2005 in accordance with procedures
established by the Administrator and shall provide that distribution of the
Account shall begin no later than 1 January of the calendar year following
the calendar year in which the Participant attains age 75.

 

(ii)                                If a Participant described in Section 6.1(a)(i) does not make
a timely election pursuant to Section 6.1(a)(i), his Account shall be paid
in accordance with Section 6.1(b).

 

(b)                                 Participants
Retirement Eligible After 31 December 2005 Who Separate from Service After
Becoming Retirement Eligible. 
Effective as of 1 January 2006, the Account of a Participant (i) who
becomes Retirement Eligible after 31 December 2005, and (ii) whose
Separation from Service occurs after he becomes Retirement Eligible, shall be
paid in five annual installments.  The
amount and timing of each annual installment shall be determined as follows:

 

(i)                                   The initial
annual installment shall be an amount that is substantially equal to one-fifth
of the value of the Participant’s Account determined as of the last valuation
date of the month immediately preceding the Measurement Date, and shall be paid
on the last day of the month following the month which contains the Measurement
Date.  For purposes of Section 6.1,
“Measurement Date” means the date that is the first anniversary of the
Participant’s Separation from Service, plus one day
for each day of Vacation.

 

(ii)                                The second
annual installment shall be an amount that is substantially equal to one-fourth
of the value of the Participant’s Account determined as of the last valuation
date of the month immediately preceding the date that 

 

9

 

is the first anniversary of the Measurement Date, and
shall be paid on the last day of the month following the month which contains
the first anniversary of the Measurement Date.

 

(iii)                             The third
annual installment shall be an amount that is substantially equal to one-third
of the value of the Participant’s Account determined as of the last valuation
date of the month immediately preceding the date that is the second anniversary
of the Measurement Date, and shall be paid on the last day of the month
following the month which contains the second anniversary of the Measurement
Date.

 

(iv)                            The fourth
annual installment shall be an amount that is substantially equal to one-half
of the value of the Participant’s Account determined as of the last valuation
date of the month immediately preceding the date that is the third anniversary
of the Measurement Date, and shall be paid on the last day of the month
following the month which contains the third anniversary of the Measurement
Date.

 

(v)                               The fifth
annual installment shall be an amount that is equal to the entire remaining
balance in the Participant’s Account and shall be paid on the date that is the
fourth anniversary of the Measurement Date.

 

(c)                                Participants
Not Retirement Eligible When Separated.  Effective as of 1 January 2006, the
Account of a Participant (i) who is not Retirement Eligible as of 31 December 2005,
and (ii) whose Separation from Service occurs after 31 December 2005
and prior to the date on which he becomes Retirement Eligible shall be paid in
a single lump sum on the last day of the month following the month in which the
first anniversary of such Participant’s Separation from Service occurs.

 

6.2  Distributions
for Separation from Service from 1 January 2005 to 31 December 2005.

 

(a)                                General Rule.  A Participant who incurs a Separation from
Service between 1 January 2005 and 31 December 2005 inclusive shall
be permitted to elect, in accordance with procedures established by the
Administrator to receive his 409A Account in any of the payment forms specified
in Section 6.3.  The 409A Account
shall be distributed at the time (or over a period of years) specified by the
Participant; provided that the Participant shall not be permitted to
elect a date that is earlier than 30 days following (i) the last day of
the month in which the Participant’s Separation from Service occurs (ii) plus
one day for each day of Vacation in the case of Retirement or no later than 1 January of
the year following the year in which the Participant attains age 75.  If a Participant elects to receive his 409A
Account in the form of installments of decrementing amounts or a specified
amount, each installment subsequent to the first shall be paid on the
anniversary of first installment.  The
election pursuant to this Section 6.2(a) shall be made by no later
than 31 December 2005.

 

10

 

(b)                               No Election.  If a Participant described in Section 6.2(a) does
not make a timely election, his 409A Account shall be paid in accordance with Section 6.1(c).

 

(c)                                Grandfathered
Account.  During calendar
year 2005, a Participant’s Grandfathered Account shall be distributed in
accordance with Section 6.3.

 

(d)                               Section 409A
Transition Rules. 
Notwithstanding anything in the Plan, effective, unless otherwise
provided, as of 1 January 2005 with respect to the 409A Account of a
Participant and 1 January 2006 with respect to the Account:

 

(i)                                   Timing of
Elections and Plan Amendments. 
Except as otherwise provided in Section 6.2(d)(ii), to the extent
that any Participant makes, on or prior to 31 December 2005, a payment
election or the Company amends, on or prior to 31 December 2007, Plan
provisions regarding the time and form of payment of a Participant’s 409A
Account, with respect to all or a portion of the amounts previously deferred
that are subject to Section 409A, such election and amendment shall be
deemed to be made pursuant to Q&A 19(c) in Notice 2005-1.

 

(ii)                                Termination
of Participation; Cancellation of Deferral.  To the extent that a Participant receives in
the 2005 calendar year a distribution of all, or any portion, of his 409A
Account or prospectively cancels or reduces in the 2005 calendar year all or
any portion of his Salary Deferral Allocation election under the SIP, as the
case may be, such distribution or cancellation shall be deemed a whole or
partial (as the case may be) (i) termination of such Participant’s 409A
Account or (ii) cancellation of such Participant’s deferral election under
the Plan, each pursuant to Q&A 20(a) of Notice 2005-1.

 

6.3  Distributions
Prior to 1 January 2005.

 

(a)                                Time and
Manner.  Distribution of a
Participant’s account shall commence as soon as practicable after the valuation
date at the end of the month following 30 days after the Participant’s
termination of employment or 60 days following a Participant’s death in
accordance with the election in 6.3(b) below and form of distribution
shown in 6.3(c).  Termination of
employment for the purposes of this Plan shall include retirement and Long-Term
Disability status on or after 1 November 1998.  Distribution must begin no later than 1 January of
the year following the year the Participant reaches age 75.

 

(b)                               Election.  A Participant shall make an irrevocable
election regarding the time and manner of distribution no later than 30 days
following termination of employment. 
Termination of employment for the purposes of this Plan shall include
retirement and Long-Term Disability status on or after 1 November 1998.  If the Participant’s employment is terminated
by death, any eligible beneficiary shall make such irrevocable election within
60 days following the Participant’s death.

 

11

 

(c)                                Form of
Distribution.

 

(i)                                     A single lump
sum payment

 

(ii)                                  A specified
dollar amount each year until account balance reaches zero.

 

(iii)                               A
decrementing yearly withdrawal over a specific period of time which results in
a zero account balance.

 

In the event of the death of the Participant or a Qualified Domestic
Relations Order, such beneficiaries or the Alternate Payee must take
distribution as a single lump sum payment within 180 days following the event

 

6.4  Death.  Upon the death of a Participant, his 409A
Account, if the death occurs in calendar year 2005, and, notwithstanding
anything to the contrary in Section 6.1, 6.2 or 6.5 regarding the time or
form of payment, his Account (or the remainder of his Account, if benefits have
already commenced), if the death occurs on or after 1 January 2006, shall
be paid to his beneficiaries in a lump sum on the first day of the month
following the date of the Participant’s death.

 

6.5  Disability.  A Participant who incurs a Separation from
Service due to a Disability on or after January 1, 2006 shall receive a
distribution of his Account in accordance with Section 6.1(b) or (c),
as applicable.  A Participant’s
Separation from Service due to Disability shall be deemed to occur on the date
that is 29 months after the first day of Participant’s absence from work due to
Disability.

 

6.6  Six-Month
Delay. 
Distributions on or after 1 January 2005 of a Participant’s 409A
Account and on or after 1 January 2006 of a Participant’s Account shall be
made in accordance with the provisions of Section 409A.  To the extent such distributions are made in
connection with a Participant’s Separation from Service for any reason other
than death and the Participant is a “specified employee” for purposes of Section 409A,
as determined under the Company’s established methodology for determining
specified employees, on the date on his Separation from Service, such
distributions shall not commence to be paid on any date prior to the first
business day after the date that is six months following the Participant’s
Separation from Service.

 

6.7  Distribution of Net Gains Realized from Rate
of Return Elections  .  Any net gain credited to a Participant’s
Account pursuant to an election made pursuant to Section 4.3 hereof shall
be distributed at the same time and in the same manner as the remainder of his
Account is distributed in accordance with Sections 6.1 through 6.6.

 

12

 

ARTICLE VII.  ADMINISTRATION, AMENDMENT AND TERMINATION

 

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

 

7.2  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.

 

7.3  Non-Alienation.  Except as provided in Section 10.5 of
the SIP and Section 4.4 of this Plan, no right or benefit under this Plan
shall be subject to anticipation, alienation, sale, assignment, pledge,
encumbrance or charge.  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.

 

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

 

7.5  Unsecured
Interest, Funding and Rights Against Assets.  No participant, surviving spouse,
beneficiaries, or qualified alternate payee shall have any interest whatsoever
in any specific asset of the Company.  To
the extent that any person acquires a right to receive payments under this
Plan, such rights shall be no greater than the right of any unsecured general
creditor of the Company.  Account
balances shall not be financed through a trust fund or insurance contracts or
otherwise unless owned by the Company. 
Payment of account balances shall be paid in cash from the general funds
of the Company.  All expenses of
administering this Plan shall be borne by the Company.

 

7.6  Effect
on Other Benefit Plans. 
Amounts payable under this Plan, including Employer matching allocations
and growth additions, shall not be considered compensation for purpose of any
qualified or non-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.

 

7.7  Administration.

 

(a)                                This Plan
shall be administered by 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.

 

(b)                               The Administrator shall not accelerate or
delay payment under the Plan except to the extent that such acceleration
(including as a result of a “change in control”

 

13

 

within the meaning of the
default provisions of Section 409A and the final regulations promulgated
thereunder) or delay shall not cause any person to incur additional taxes,
interest or penalties under Section 409A (“Section 409A Compliance”).

 

7.8  Amendment,
Modification or Termination. 
The Board of Directors of the Company, or, the Management Compensation
Committee of the Company, may at any time amend or modify this Plan in their
sole discretion, provided that this Plan shall not be amended or modified so as
to reduce or diminish the accounts of participant’s or benefits then currently
being paid to any participant, surviving spouse, beneficiary, or former
participant 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 Management
Compensation Committee of the Company, as the case may be, shall consist of the
lawful adoption of a written amendment or modification to the Plan by majority
vote at a validly held meeting or by unanimous written consent, followed by the
filing of such duly adopted amendment or modification by the Secretary with the
official records of the Company.

 

7.9  409A
Amendments and Modifications.  Notwithstanding anything in Section 7.8
to the contrary, the Vice President of Human Resources of the Company and any
successor thereof shall have the unilateral right to amend or modify the Plan
to the extent the Vice President of Human Resources and any successor thereof
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 of the Vice President,
Human Resources or the successor thereof pursuant to this Section 7.9
shall be final, conclusive and binding on all persons.

 

7.10  Distribution
Upon Plan Termination; Withdrawal from the Plan.

 

(a)                                If the Plan
is terminated pursuant to Section 7.8, payment of Participant Accounts
shall be made in accordance with Article VI, except to the extent that the
Board of Directors of the Company or the Management Compensation Committee of
the Company determines, in its sole discretion and in full and complete
settlement of the Company’s obligations under this Plan, to distribute the full
amount of a Participant’s Account to the Participant; provided that such
distribution may be effected in a manner that will result in Section 409A
Compliance.

 

(b)                               If a
participating subsidiary or affiliate withdraws from the Plan pursuant to Section 7.11,
payment of Participant Accounts shall be made in accordance with Section 6.1
or 6.2, as applicable.

 

7.11  Withdrawal
from Plan. 
If an adopting subsidiary or affiliate which is participating in this
Plan subsequently determines that it no longer wants to participate in this
Plan or have its employees participate in this Plan, that subsidiary or
affiliate must request permission from Deere & Company to withdraw
from participating in this Plan.  If the

 

14

 

Company grants such permission, such subsidiary or affiliate will
immediately thereafter cease to participate in this Plan and its employees will
cease to be participants in this Plan unless and until such subsidiary or
affiliate thereafter requests permission to again participate in this Plan.

 

7.12  Definition
of Subsidiary or Affiliate. 
In order for a subsidiary or affiliate of the Company to participate in
this Plan, Deere & Company must own, directly or indirectly, at least
80 percent of the outstanding stock of such subsidiary or affiliate.

 

If during its affiliation with the Plan, a subsidiary or an affiliate’s
ownership by the Company falls below the 80 percent required level, such
subsidiary or affiliate is automatically dropped from participation in this
Plan and its employees are similarly dropped from being participants in this
Plan.

 

If a subsidiary or affiliate of Deere & Company which is
covered by 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).

 

15

 

ARTICLE VIII.  DEFINITIONS

 

8.1  Section References.  All references to sections are, unless
otherwise indicated, references to sections of the Plan.

 

8.2  Terms
Defined. 
Whenever used in the Plan, the following terms shall have the meanings
set forth below:

 

“409A Account” means the portion of a Participant’s account
under the Plan the right to which is not both earned and vested on December 31,
2004.

 

“Account” means, effective as January 1, 2006, a
Participant’s Grandfathered Account and 409A Account.

 

“Administrator” means the Company.

 

“Deferral Allocation” means, with respect to a Participant, the
deferral allocation election under the Plan applicable to Performance-Based
Compensation and all other Eligible Compensation.

 

“Disability” means an absence from work due to a disability as
determined under the long-term disability plan or practice of the Company for
12 months or longer, or, if earlier, the date on which a Participant’s
reemployment with the Company ceases to be guaranteed.

 

“Grandfathered Account” means the portion of a Participant’s
account under the Plan the right to which is both earned and vested on December 31,
2004.  The Grandfathered Account shall be
subject to the Prior Plan.

 

“Notice 2005-1” means Notice-2005-1 promulgated by the U.S.
Treasury Department and the Internal Revenue Service., as clarified and
expanded by Final Regulations under Section 409A and Notice 2006-79.

 

“Performance-Based Compensation” means performance-based
compensation within the meaning of Section 409A.

 

“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 (but without regard to
any amendments thereto after 3 October 2004 that would result in any
material modification, within the meaning of Section 409A and Notice
2005-1, of the Grandfathered Benefit).

 

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

 

“Section 409A” means Section 409A of the Internal
Revenue Code of 1986, as amended, and the rulings and regulations thereunder.

 

16

 

“Separation from Service” means, with respect to a Participant,
a separation from service within the meaning of the default rules of Section 409A;
provided, however, that, notwithstanding anything in Section 7.12
to the contrary, 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 provided  further that, solely for
purposes of the Grandfathered Account, “Separation from Service” shall be
determined in accordance with the terms of the Prior Plan.

 

“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.

 

17Exhibit 10.2

 

DEERE & COMPANY

 

Nonemployee Director

Stock Ownership Plan

 

 

Effective February 27, 2002

Amended
August 28, 2002

Amended May 25, 2005

Amended November 29, 2006

Amended
November 28, 2007

 

 

DEERE & COMPANY NONEMPLOYEE DIRECTOR STOCK OWNERSHIP PLAN

____________________________________________________________________________________________________________

 

Article 1.    Establishment,
Purpose, and Duration

 

1.1  Establishment of the Plan

 

Deere &
Company, a Delaware corporation, hereby establishes an incentive compensation
plan to be known as the “Deere & Company Nonemployee Director Stock
Ownership Plan” (the “Plan”), as set
forth in this document. The Plan provides for the grant of Restricted Stock to
Nonemployee Directors, subject to the terms and provisions set forth herein.

 

Upon approval by the
Board of Directors of the Company, subject to ratification within six (6) months
by an affirmative vote of a majority of Shares, the Plan shall become effective
as of February 27, 2002 (the “Effective Date”),
and shall remain in effect as provided in Section 1.3 herein.  Each amendment to the Plan shall become
effective as of the date set forth in such amendment.

 

1.2  Purpose of the Plan

 

The purpose of the
Plan is to further the growth, development, and financial success of the
Company by strengthening the Company’s ability to attract and retain the
services of experienced and knowledgeable Nonemployee Directors by enabling
them to participate in the Company’s growth and by linking the personal interests
of Nonemployee Directors to those of Company shareholders.

 

1.3  Duration of the Plan

 

The Plan shall
commence on the Effective Date and shall remain in effect, subject to the right
of the Board of Directors to terminate the Plan at any time pursuant to Article 8
herein, until all Shares subject to it have been acquired according to the Plan’s
provisions.  However, in no event may an
Award be granted under the Plan on or after March 8, 2012.

 

Article 2.    Definitions

 

2.1  Definitions

 

Whenever used in the
Plan, the following terms shall have the meaning set forth below:

 

(a)                                  “Annual Meeting” means
an annual meeting of the stockholders of Deere.

 

(b)                                 “Award” means a grant
of Restricted Stock or Restricted Stock Units under the Plan.

 

(c)                                  “Beneficial Owner”
shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act.

 

(d)                                 “Board” or “Board of
Directors” means the Board of Directors of Deere, and includes a committee of
the Board of Directors designated by the Board to administer part or all of the
Plan.

 

(e)                                  A “Change in Control”
shall be deemed to have occurred as of the first day that any one or more of
the following conditions shall have been satisfied:

 

(1)          Any person as the term is defined in Section 3(a)(9) of
the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as defined in Section 13(d) (but not including
the Company, any subsidiary of the Company, a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or of any
subsidiary of the Company, or any person or entity organized or established by
the Company in connection with or pursuant to any such benefit plan), becomes
the Beneficial Owner, directly or indirectly, of securities of the Company

 

 

representing thirty percent (30%) or more
of the combined voting power of the Company’s then outstanding securities,
provided, that there shall not be included among the securities as to which any
person is a Beneficial Owner securities as to which the power to vote arises by
virtue of proxies solicited by the management of the Company;

 

(2)  During
any period of two (2) consecutive years (not including any period prior to
the Effective Date), individuals who at the beginning of such period constitute
the Board (and any new Director, whose election by the Company’s shareholders
was approved by a vote of at least two-thirds ( 2/3) of the Directors then
still in office who either were Directors at the beginning of the period or
whose election or nomination for election was so approved), cease for any
reason to constitute a majority thereof;

 

(3)  The
shareholders of the Company approve: (A) a plan of complete liquidation of
the Company; or (B) an agreement for the sale or disposition of all or
substantially all the Company’s assets; or (C) a merger, consolidation, or
reorganization of the Company with or involving any other corporation, other
than a merger, consolidation, or reorganization that 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 eighty percent (80%) of the
combined voting power of the voting securities of the Company (or such
surviving entity) outstanding immediately after such merger, consolidation, or
reorganization.

 

(f)                                    “Code” means the
Internal Revenue Code of 1986, as amended from time to time.

 

(g)                                 “Company” means Deere
and any and all of its subsidiaries

 

(h)                                 “Deere” means Deere &
Company, a Delaware corporation, or any successor thereto as provided in Section 10.7
herein.

 

(i)                                     “Director” means any
individual who is a member of the Board of Directors.

 

(j)                                     “Disability” means a
permanent and total disability, within the meaning of Code Section 22(e)(3).

 

(k)                                  “Employee” means any
full-time, nonunion, salaried employee of the Company.

 

(l)                                     “Exchange Act” means
the Securities Exchange Act of 1934, as amended from time to time, or any
successor Act thereto.

 

(m)                               “Fair Market Value” as
it relates to common stock of Deere on any given date means (i) the mean
of the high and low sales prices of the common stock of Deere as reported by
the Composite Tape of the New York Stock Exchange (or, if not so reported, on
any domestic stock exchanges on which the common stock is then listed); or (ii) if
Deere common stock is not listed on any domestic stock exchange, the mean of
the high and low sales prices of Deere common stock as reported by the NASDAQ
Stock Market on such date or the last previous date reported (or, if not so
reported, by the system then regarded as the most reliable source of such
quotations) or, if there are no reported sales on such date, the mean of the
closing bid and asked prices as so reported; or (iii) if the common stock
is listed on a domestic exchange or quoted in the domestic over-the-counter
market, but there are not reported sales or quotations, as the case may be, on
the given date, the value determined pursuant to (i) or (ii) above
using the reported sale prices or quotations on the last previous date on which
so reported; or (iv) if none of the foregoing clauses applies, the fair
value as determined in good faith by the Board or the Committee.

 

(n)                                 “Nonemployee Director”
means any individual who is a member of the Board, but who is not otherwise an
Employee of the Company.

 

(o)                                 “Restricted Stock” or “Restricted
Share” means Shares granted to a Nonemployee Director pursuant to Article 6.

 

(p)                                 “Restricted Stock
Units” or “RSUs” means a right granted to a Nonemployee Director pursuant to Article 7
to receive Shares, subject to the terms and conditions of the Plan.  Each Restricted Stock Unit corresponds to one
Share.

 

2

 

(q)                                 “Section 409A”
means Section 409A of the Code, including the rules, regulations and
guidance thereunder (or any successor provisions thereto).

 

(r)                                    “Separation Date”
means the date of a Nonemployee Director’s termination of service as a member
of the Board or such later date as constitutes the Eligible Director’s
separation from service with the Company for purposes of Section 409A.

 

(s)                                  “Shares” means the
shares of common stock of Deere, $1.00 par value.

 

(t)                                    “Transition Date”
means the date that is one week following the Annual Meeting held in 2008.

 

Article 3.   Administration

 

3.1  The Board of Directors

 

The
Plan shall be administered by the Board, subject to the restrictions set forth
in the Plan.

 

3.2  Administration by the Board

 

The Board shall have
the full power, discretion, and authority to interpret and administer the Plan
in a manner which is consistent with the Plan’s provisions. However, in no
event shall the Board have the power to determine Plan eligibility, or to
determine the amount, the price, or the timing of Awards to be made under the
Plan (all such determinations are automatic pursuant to the provisions of the
Plan). Any action taken by the Board with respect to the administration of the
Plan which would result in any Nonemployee Director ceasing to be a “nonemployee
director” within the meaning of Rule 16b-3 under the Exchange Act shall be
null and void.

 

3.3  Decisions Binding

 

All determinations and
decisions made by the Board pursuant to the provisions of the Plan and all
related orders or resolutions of the Board of Directors shall be final,
conclusive, and binding on all persons, including the Company, its
shareholders, Employees, Nonemployee Directors, and their estates and
beneficiaries.

 

Article 4.   Shares Subject to the Plan

 

4.1  Number of Shares

 

Subject to adjustment
as provided in Section 4.3 herein, the total number of Shares available
for grant under the Plan (whether in the form of Restricted Stock or as Shares
underlying Restricted Stock Units) may not exceed 500,000.

 

4.2  Lapsed Awards

 

If any Shares or
Restricted Stock Units granted under this Plan terminate, expire, or lapse for
any reason, such Shares and the Shares underlying such Restricted Stock Units
again shall be available for grant under the Plan. However, in the event that
prior to an Award’s termination, expiration, or lapse, the holder of the Award
at any time received one or more “benefits of ownership” pursuant to such Award
(as defined by the Securities and Exchange Commission, pursuant to any rule or
interpretation promulgated under Section 16 of the Exchange Act), the
Shares subject to such Award shall not be made available for regrant under the
Plan.

 

4.3. Adjustments
in Authorized Shares

 

In the event of any
merger, reorganization, consolidation, recapitalization, liquidation, stock
dividend, split-up, Share combination, or other change in the corporate
structure of the Company affecting the Shares, the Board shall make such
adjustments in the number and type of shares authorized by the Plan and to
outstanding Awards to prevent dilution or enlargement of rights.  The Board’s determination as to what
adjustments shall be made, and the extent thereof, shall be final.

 

3

 

Article 5.   Participation

 

5.1  Participation

 

Persons
participating in the Plan shall include, and be limited to, all Nonemployee
Directors.

 

Article 6.   Restricted Stock

 

6.1  Annual Awards

 

An annual Award of
Restricted Shares to each Nonemployee Director will be made automatically as of
the date one week following the date of the Annual Meeting in an amount recommended
by the Corporate Governance committee and approved by the Board. The number of
Restricted Shares will be based on the Fair Market Value on the grant date of
Deere common stock, provided, however, that unless the Board determines
otherwise as provided in Section 7.1, no further Awards of Restricted
Shares shall be made on or after the Transition Date.  Although the period of service shall run from
the date of the Annual Meeting, the grant date shall be one week following the
Annual Meeting to permit the dissemination to the market of information coming
out of such meeting.

 

6.2  Partial Awards

 

Upon the effective
date of any amendment in the amount of any Award, each Nonemployee Director
shall receive a partial Award calculated as if the Nonemployee Director were
serving a partial term as provided in Section 6.3, below, provided that
the Fair Market Value shall be determined as of the grant date one week
following the effective date of the Award.  Restricted shares previously granted to the
Nonemployee Director for the same period shall be deducted from such Award.

 

6.3  Partial Terms

 

A Nonemployee Director
who is elected by the Board to fill a vacancy between Annual Meetings shall
automatically be granted a pro rata portion of the number of Restricted Shares
awarded to Nonemployee Directors as of the date of the most recent Annual
Meeting. Such prorated number of shares shall be determined by multiplying the
number of Restricted Shares awarded as of the date of the most recent Annual
Meeting by a fraction, the numerator of which is the number of days remaining
until the first anniversary of such most recent Annual Meeting, and the
denominator of which is 365.

 

6.4  Custody and Transferability

 

The Shares awarded to
a Nonemployee Director may not be sold, pledged, assigned, transferred, gifted,
or otherwise alienated or hypothecated until such time as the restrictions with
respect to such Shares have lapsed as provided herein.  At the time Restricted Shares are awarded to
a Nonemployee Director, shares representing the appropriate number of
Restricted Shares shall be registered in the name of the Nonemployee Director
but shall be held by the Company in custody for the account of such person. As
Restrictions lapse on Shares upon death, Disability or retirement as
contemplated by Section 6.8, certificates therefore will be delivered to
the Participant.

 

6.5  Other Restrictions

 

The Company may impose
such other restrictions on any Shares granted 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, with the requirements
of any stock exchange upon which such Shares or Shares of the same class are
then listed, and with any blue sky or securities laws applicable to such
Shares. Shares delivered upon death, Disability or retirement as contemplated
by Section 6.8 may bear such legends, if any, as the Board shall specify.

 

6.6  Voting Rights

 

Participants
granted Restricted Stock hereunder shall have full voting rights on such
Shares.

 

4

 

6.7  Dividend Rights

 

Participants granted
Restricted Stock hereunder shall have full dividend rights, with such dividends
being paid to Participants.  If all or
part of a dividend is paid in Shares, the Shares shall be held by the Company
subject to the same restrictions as the Restricted Stock that is the basis for
the dividend.

 

6.8  Termination of Service from Board

 

The restrictions
provided for in Sections 6.4 and 6.5 shall remain in effect until, and shall
lapse only upon, the termination of a Nonemployee Director’s service as a
Director by reason of death, Disability, or retirement from the board, and the Shares
shall thereafter be delivered to the Nonemployee Director or the decedent’s
beneficiary as designated pursuant to Section 10.3.

 

In the event the
Nonemployee Director’s service as a Director is terminated for any other
reason, including, without limitation, any involuntary termination on account
of (a) fraud or intentional misrepresentation, or (b) embezzlement,
misappropriation, or conversion of assets or opportunities of the Company, all
Restricted Shares awarded to such Nonemployee Director prior to the date of
termination shall be immediately forfeited and returned to the Company.

 

6.9  Tax Withholding

 

The Company shall have
the right under this Plan to collect cash from Nonemployee Directors in an
amount necessary to satisfy any Federal, state or local withholding tax
requirements.  Any Nonemployee Director
may elect to satisfy withholding, in whole or in part, by having the Company
withhold shares of common stock having a value equal to the amount required to
be withheld.

 

Article 7.   Restricted Stock Units (RSUs)

 

7.1  Annual Awards

 

Effective as of the
Transition Date, an annual Award of Restricted Stock Units will be made to each
Nonemployee Director automatically as of the date one week following the date
of the Annual Meeting in an amount recommended by the Corporate Governance
Committee and approved by the Board.  The
number of Restricted Stock Units will be based on the Fair Market Value on the
grant date of Deere common stock. 
Although the period of service shall run from the date of the Annual
Meeting, the grant date shall be one week following the Annual Meeting to
permit the dissemination to the market of information coming out of such
meeting.  Notwithstanding the preceding
two sentences, the Board shall have the discretion to determine, prior to any
annual Award date, that Awards to be made as of that annual Award date to some
or all Nonemployee Directors shall consist of Restricted Shares rather than
Restricted Stock Units, and in such case the Restricted Shares so awarded shall
have the terms and conditions set forth in Article 6.

 

7.2  Partial Awards

 

Upon the effective
date of any amendment in the amount of any Award, each Nonemployee Director
shall receive a partial Award calculated as if the Nonemployee Director were
serving a partial term as provided in Section 7.3, below, provided that
the Fair Market Value shall be determined as of the grant date one week
following the effective date of the Award.  RSUs previously granted to the Nonemployee
Director for the same period shall be deducted from such Award.

 

7.3  Partial Terms

 

A Nonemployee Director
who is elected by the Board to fill a vacancy between Annual Meetings shall
automatically be granted a pro rata portion of the number of RSUs awarded to
Nonemployee Directors as of the date of the most recent Annual Meeting.  Such prorated number of RSUs shall be
determined by multiplying the number of RSUs awarded as of the date of the most
recent Annual Meeting by a fraction, the numerator of which is the number of
days remaining until the first anniversary of such most recent Annual Meeting,
and the denominator of which is 365.

 

5

 

7.4  Settlement of RSUs; Election of Settlement
Date

 

(a)                                  RSUs will be settled
exclusively by delivery of Shares to Nonemployee Directors (or to a Nonemployee
Director’s beneficiary or beneficiaries designated in accordance with Section 10.3).  A Nonemployee Director may elect the
settlement date for an annual Award of RSUs by making an irrevocable deferral
election in writing on a form provided by the Company and delivered to the
Company not later than the close of business on the last business day of the
calendar year immediately preceding the calendar year of the Annual Meeting in
respect of which the Award will be made (so that, for example, a deferral
election relating to the annual Award of RSUs to be made following the 2009
Annual Meeting must be made by the close of business on the last business day
of 2008); provided, however, that in the case of any person
who is newly elected or appointed to the Board as a Nonemployee Director, and
who does not have any rights or interests under any other deferred compensation
plan, program or arrangement of the Company that are required to be aggregated
with RSUs under the Plan for purposes of Section 409A, such election may
be made no later than 30 days after the date of such election or
appointment.  A Nonemployee Director may
designate on such deferral election form one of the following dates as the
settlement date for such Award of RSUs:

 

(A)                              such Nonemployee
Director’s Separation Date; or

 

(B)                                the later to occur of (A) or
the first day of a calendar month specified by such Nonemployee Director but no
later than 5 years following the Nonemployee Director’s Separation Date.

 

If a Nonemployee Director fails to
designate one of the foregoing alternatives as the settlement date for an Award
of RSUs, such Nonemployee Director shall be deemed to have designated
alternative (A).  Notwithstanding any
election made by a Nonemployee Director on any election Form or any other
provision of the Plan, in the event of such Nonemployee Director’s death, all
RSUs held by such Nonemployee Director will be paid in Shares to such
Nonemployee Director’s beneficiary (or if no beneficiary has been designated,
to such Nonemployee Director’s estate) as soon as administratively practicable,
and in any event within 90 days, following the date of such Nonemployee
Director’s death.

 

(b)                                 Notwithstanding
anything else herein to the contrary, to the extent that a Nonemployee Director
is a “specified employee” (as defined by Section 409A) of the Company as
of his or her Separation Date, no settlement of RSUs pursuant to alternative (A) of
Section 7.4(a) (whether such alternative (A) was elected by the
Nonemployee Director or applies by default, and including where alternative (A) applies
because it is the later of the two dates specified in alternative (B)) may be
made before the first business day that is more than six (6) months after
such Nonemployee Director’s Separation Date, or, if earlier, the date of the
Participant’s death, and any settlement of RSUs that would be made but for
application of this provision shall instead be made on the first business day
after the end of such six-month period (or, if earlier, the date of the
Participant’s death)

 

(c)                                  In the event the
Nonemployee Director’s service as a Director is terminated for any reason other
than death or retirement, including, without limitation, any involuntary
termination on account of (i) fraud or intentional misrepresentation, or (ii) embezzlement,
misappropriation, or conversion of assets or opportunities of the Company, all
RSUs awarded to such Nonemployee Director prior to the date of termination and
not previously settled by delivery of Shares shall be immediately forfeited and
returned to the Company.

 

7.5  Stockholder Rights

 

Restricted
Stock Units shall not confer on a Nonemployee Director any rights as a
stockholder of the Company (including without limitation voting rights) until
Shares have been issued to such Nonemployee Director in settlement of such
Restricted Stock Units.

 

7.6  Dividend Equivalents

 

Until a Nonemployee
Director’s Restricted Stock Units convert to Shares, if Deere pays a regular or
ordinary dividend on its common stock, the Nonemployee Director will be paid a
dividend equivalent for his or her RSUs. 
Deere will pay the dividend equivalent on the same day as Deere pays the
corresponding dividend on its common stock. 
If 

 

6

 

Deere pays a dividend in Shares,
Nonemployee Directors holding RSUs will receive additional RSUs equal to the
number of Shares paid with respect to the corresponding number of Shares, and
such additional RSUs shall be subject to the same terms and conditions, and
shall be settled at the same time, as the RSUs to which they relate.

 

7.7  Tax Withholding

 

The Company shall have
the right under this Plan to collect cash from Nonemployee Directors in an
amount necessary to satisfy any Federal, state or local withholding tax
requirements arising from settlement of RSUs or payment of dividend equivalents
prior to settlement.  A Nonemployee
Director may elect to satisfy withholding tax obligations, in whole or in part,
by having the Company withhold shares of common stock having a value equal to
the amount required to be withheld.

 

7.8  Nontransferability

 

The RSUs awarded to a Nonemployee Director may not be
sold, pledged, assigned, transferred, gifted or otherwise alienated or
hypothecated.  Shares delivered in
settlement of RSUs shall not be subject to any such restrictions, except for
any restrictions that may be imposed under applicable securities laws or
policies of the Company.

 

Article 8.    Change
in Control

 

8.1  Change in Control

 

(a)                                  Notwithstanding the
provisions of Article 6 herein, in the event of a Change in Control, any
and all restrictions on Restricted Shares shall lapse as of the date of the
Change in Control, and the Company shall deliver new certificates for such
Restricted Shares which do not contain the legend of restrictions required by Section 6.5.

 

(b)                                 Notwithstanding the
provisions of Article 7 herein, in the event of a “change in control event”
(as defined for purposes of Section 409A and determined using the default
provisions thereof) relating to Deere, all of a Nonemployee Director’s
outstanding RSUs will be settled by delivery of Shares as soon as practicable,
and in any event within 90 days, following the occurrence of such change in
control event.

 

Article 9.   Amendment, Modification, and Termination

 

9.1  Amendment, Modification and Termination

 

Subject to the terms
set forth in this Section 9.1 and Section 9.2, the Board may
terminate, amend, or modify the Plan at any time and from time to time; provided, however, that
the provisions set forth in the Plan regarding the amount, the price or the
timing of Awards to Nonemployee Directors may not be amended more than once
every six (6) months, other than to comport with changes in laws and
regulations.

 

Without such approval
of the shareholders of the Company as may be required by the Code, by the rules of
Section 16 of the Exchange Act, by any national securities exchange or
system on which the Shares are then listed or reported, or by a regulatory body
having jurisdiction with respect hereto, no such termination, amendment or
modification may:

 

(a)                                  Materially increase
the total number of Shares which may be available for grants of Awards under
the Plan, except as provided in Section 4.3 herein; or

 

(b)                                 Materially modify the
requirements with respect to eligibility to participate in the Plan; or

 

(c)                                  Materially increase
the total benefits accruing to Nonemployee Directors under the Plan.

 

7

 

9.2  Awards Previously Granted

 

Unless required by
law, no termination, amendment or modification of the Plan shall materially
affect, in an adverse manner, any Award previously granted under the Plan,
without the consent of the Nonemployee Director holding the Award.

 

Article 10.   Miscellaneous

 

10.1  Gender and Number

 

Except
where otherwise indicated by the context, any masculine term used herein also
shall include the feminine; the plural shall include the singular, and the
singular shall include the plural.

 

10.2  Severability

 

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.

 

10.3  Beneficiary Designation

 

Each Nonemployee
Director under the Plan may from time to time name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in the event of his or her death. Each
designation will revoke all prior designations by the same Nonemployee
Director, and will be effective only when filed by the Nonemployee Director in
writing with the Company during his or her lifetime. In the absence of any such
designation, benefits remaining unpaid at the Nonemployee Director’s death
shall be paid to the Nonemployee Director’s estate.

 

10.4  No Right of Nomination

 

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.

 

10.5  Shares Available

 

The Shares made
available pursuant to Awards under the Plan may be either authorized but
unissued Shares, or Shares which have been or may be reacquired by the Company,
as determined from time to time by the Board.

 

10.6  Additional Compensation

 

Shares and RSUs granted
under the Plan shall be in addition to any annual retainer, attendance fees, or
other compensation payable to each Nonemployee Director as a result of his or
her service on the Board.

 

10.7  Successors

 

All obligations of the
Company under the Plan, with respect to Awards granted hereunder, shall be
binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business and/or
assets of the Company.

 

10.8  Requirements of Law

 

The granting of Awards
under the Plan shall be subject to all applicable laws, rules, and regulations,
and to such approvals by any governmental agencies or national securities
exchanges as may be required.

 

10.9  Governing Law

 

To the extent not
preempted by Federal law, the Plan, and all agreements hereunder, shall be
construed in accordance with and governed by the laws of the State of Delaware.

 

8

 

10.10  Securities Law Compliance

 

Transactions under the
Plan are intended to be exempt from Section 16(b) of the Exchange Act
by virtue Rule 16b-3 (including any successor provision).  To the extent any provision of the Plan or
action by the Board fails to comply with the requirements of Rule 16b-3,
it shall be deemed null and void to the extent permitted by law and deemed
advisable by the Board.

 

10.11  Plan Unfunded

 

Restricted Stock Units
awarded under the Plan shall constitute an unsecured promise of Deere to
deliver Shares on the applicable settlement date, subject to the terms and
conditions of the Plan.  The Plan is
unfunded, and the Company shall not be required to reserve or otherwise set
aside funds or Shares for the payment of its obligations hereunder.  As a holder of RSUs, a Nonemployee Director
has only the rights of a general unsecured creditor of the Company.  The Plan does not confer on any Nonemployee
Director or beneficiary of a Nonemployee Director any interest whatsoever in
any specific asset of the Company.

 

9

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