Document:

EX-10.1

 

Exhibit 10.1

AMENDED EMPLOYMENT AGREEMENT

     THIS AMENDED EMPLOYMENT AGREEMENT (this “Agreement”) is made at Cleveland, Ohio, as of January
1, 2007, between KEYCORP, an Ohio corporation (“Key”), and HENRY L. MEYER III (“Meyer”). The
original version of this Agreement was entered into by Key and Meyer as of May 15, 1997, and was
amended as of each of November 20, 1997, July 21, 1999, February 1, 2001, July 18, 2002, and
February 15, 2005. Further amendments are incorporated below in this Agreement which replaces and
supersedes both the original version and those prior amendments.

     Meyer has been elected as Chairman of the Board of Directors, President, and Chief Executive
Officer of Key. Key is entering into this Agreement in recognition of the importance of Meyer’s
services to the continuity of management of Key and based upon its determination that it will be in
the best interests of Key and its Subsidiaries to encourage Meyer’s continued attention and
dedication to his duties on behalf of Key on into the future. (As used in this Agreement, the term
“Subsidiaries” and certain other capitalized terms have the meanings ascribed to them in Section
25, at the end of this Agreement.)

     Key and Meyer agree, effective as of the date first set forth above (the “Effective Date”), as
follows:

1. Employment, Term. Key engages and employs Meyer to render such services in the administration
and operation of its affairs as, from time to time, may be specified by its Board of Directors in a
manner consistent with his status as Chairman of the Board of Directors, President, and Chief
Executive Officer, all in accordance with the terms and conditions of this Agreement, for a
constantly renewing three year term, commencing on the Effective Date, so that the remaining term
of employment under this Agreement shall always be three years, unless: (a) either party gives
written notice to the other that the term shall no longer constantly renew (in which case, the term
of employment under this Agreement will expire on the third anniversary of the giving of such
notice) or (b) Meyer’s employment under this Agreement is earlier terminated in accordance with the
provisions of one of Sections 6.2 through 6.7 of this Agreement. Thus, for example, on January 2,
2007, the term of employment under this Agreement will be for three years until January 2, 2010
automatically, without any action by either party, the term will renew and extend itself on January
3, 2007 so as to be a three year term of employment until January 3, 2010; and so on with the term
automatically extending on a daily basis so as always to be a three year term until either notice
is given under clause (a) above or Meyer’s employment is earlier terminated in accordance with the
provisions of one of Sections 6.2 through 6.7 of this Agreement.

2. Full-Time Services. Meyer will devote all his time and efforts to the service of Key, except
for (a) usual vacation periods and reasonable periods of illness, (b) services as an officer and
director of any Subsidiary of Key, and (c) services as a director or trustee of other
corporations or organizations that are not in competition with Key or any Subsidiary, except that,

 

 

Meyer shall obtain the prior approval of the Chairman of the Committee of Key’s Board of Directors
before accepting a position as director or trustee of any for profit entity, other than Continental
Airlines, Inc. (whether the entity is in corporate or other form).

3. Executive Officer. Except as provided in the last sentence of this Section 3, Meyer shall hold
the offices of Chairman of the Board of Directors, President, and Chief Executive Officer of Key
throughout the period of his employment under this Agreement. Meyer and Key may, at some point in
time after the Effective Date, mutually agree that a different executive officer of Key should hold
the title of President and report to Meyer while Meyer remains as Chairman of the Board of
Directors and Chief Executive Officer of Key.

4. Compensation. For all services to be rendered by Meyer to Key under this Agreement, including
services as an officer, director, Chairman of the Board of Directors, or member of any committee of
Key or of any Subsidiary, or any other services specified by the Board of Directors, Key shall pay
to Meyer, in equal monthly or more frequent installments, Base Salary at a rate of not less than
$1,000,000 per annum. The rate of Meyer’s Base Salary shall be subject to increase from time to
time at the discretion of the Committee and shall not be subject to decrease except and then only
to the extent that there is an across-the-board salary reduction applicable to the executive
officers of Key generally. In addition to being paid such Base Salary, Meyer shall participate
fully in any incentive compensation, retirement, savings, stock option, restricted stock,
disability, and other employee benefit and welfare plan or arrangement allowed or provided by Key
in which he would otherwise be eligible for participation as an executive officer and employee of
Key, and, to the extent not provided, Key shall pay or provide for the payment of benefits
commensurate with Meyer’s annual compensation.

5. Certain Compensation Guaranties During Two Years following a Change of Control. For so long as
Meyer remains in the employ of the Surviving Entity or one of its Subsidiaries during the period
beginning on the day after any Change of Control and continuing through the second anniversary of
that Change of Control (the period of Meyer’s employment during that two year period being the
“Guaranteed Compensation Period”), Meyer shall be entitled to the Incentive Compensation Guaranty
set forth in Section 5.1 and to the Option/SAR Guaranty set forth in Section 5.2. For purposes of
determining Meyer’s entitlement to benefits under the Supplemental Retirement Plan, amounts
received by Meyer in satisfaction of the Incentive Compensation Guaranty set forth in Section 5.1,
to the extent allocable to short term incentive compensation that was taken into account in
determining Average Annual Incentive Compensation, shall be deemed short term incentive
compensation received by Meyer during the Guaranteed Compensation Period and, to the extent
allocable to long term incentive compensation that was taken into account in determining Average
Annual Incentive Compensation, shall be deemed to be long term incentive compensation received by
Meyer during the Guaranteed Compensation Period.

5.1 Guaranteed Level of Incentive Compensation. Except as otherwise provided in Section 5.3,
the Surviving Entity shall cause Meyer to receive, during the Guaranteed Compensation Period, as
incentive compensation, an amount that, on an annualized basis, is at
least equal to Meyer’s Average Annual Incentive Compensation. The guaranty set forth in the
immediately preceding sentence (the “Incentive Compensation Guaranty”) establishes a

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minimum
amount of incentive compensation that must be paid to Meyer with respect to Meyer’s employment
during the Guaranteed Compensation Period. Except as and to the extent otherwise permitted by
any of the provisions of Section 5.3:

(a) The Surviving Entity shall make payments to Meyer in cash that satisfy the
Incentive Compensation Guaranty quarterly in arrears, within 30 days after the end of
each calendar quarter for each quarter or portion thereof during the Guaranteed
Compensation Period;

(b) If Meyer’s employment is terminated for any reason other than Cause, all unpaid
guaranteed incentive compensation with respect to the Guaranteed Compensation Period
shall be paid to Meyer by the Surviving Entity in a lump sum within 30 business days
following the Termination Date; and

(c) If Meyer’s employment is terminated by the Surviving Entity for Cause, the
Surviving Entity shall not be required to pay to Meyer any amount of incentive
compensation otherwise payable at any time on or after the Termination Date.

5.2 Guaranteed Participation in Stock Option and SAR Plans. During the Guaranteed Compensation
Period, Meyer shall participate fully (at a level that is at least comparable to the level at
which he participated in the last calendar year that ended before the date of the Change of
Control and is at least equal to the highest targeted level at which other executive officers of
the Surviving Entity participate) in each and every stock option and stock appreciation right
plan in which executive officers of the Surviving Entity generally participate. The guaranty of
full participation set forth in this Section 5.2 is hereinafter sometimes referred to as the
“Option/SAR Guaranty.”

5.3 Exceptions to and Alternative Means of Satisfying the Incentive Compensation Guaranty. For
purposes of the exceptions and alternative means of satisfying the Incentive Compensation
Guaranty that are set forth in this Section 5.3, the Incentive Compensation Guaranty shall be
deemed to be made up of two parts, the “Short Term Part” and the “Long Term Part,” each of which
shall bear the same proportion, respectively, to the entire Incentive Compensation Guaranty as
Average Short Term Incentive Compensation and Average Long Term Incentive Compensation bear,
respectively, to Average Annual Incentive Compensation.

(a) Bona fide Short Term Incentive Compensation Plan Exception. If (i) the Surviving
Entity maintains a bona fide short term incentive compensation plan that (x) would
satisfy the Short Term Part if Meyer received short term incentive compensation under
that plan at Meyer’s target level (as the target level is specified under that plan) and
(y) specifies a target level for Meyer that is the highest target level for any
executive employed by the Surviving Entity; (ii) the Surviving Entity, in administering
that plan in good faith and without discriminating against Meyer, utilizes a performance
factor that is intended to rate the corporation’s overall performance for
the short term compensation cycle in question; (iii) that performance factor is
uniformly applied (either in establishing an incentive compensation pool or

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against each
participant’s target) to all participants in the plan; and (iv) the application of that
factor reduces the short term incentive compensation payable under that plan to a level
below Meyer’s target level; then payment of the short term incentive compensation, if
any, due to Meyer at the reduced level under that plan shall satisfy the Surviving
Entity’s obligation under the Short Term Part for that particular short term
compensation cycle.

(b) Annual Payment Exception. If the Surviving Entity maintains a bona fide short term
incentive compensation plan that would satisfy the Short Term Part if Meyer received
short term incentive compensation under that plan at Meyer’s target level and that plan
provides for payment of all amounts earned at regularly scheduled times not less
frequently than once a year, the Surviving Entity may satisfy the Short Term Part by
paying incentive compensation to Meyer under that plan (at not less than Meyer’s target
level or as reduced if permitted by 5.3(a) above) at those regularly scheduled times,
except that if Meyer’s employment terminates for any reason other than Cause, the
Surviving Entity shall make payments under that plan, pro rated to include all periods
within the Compensation Guaranty Period as to which Meyer has not yet received incentive
compensation under that plan, within 30 business days after the Termination Date.

(c) Issuance of Restricted Stock Alternative. As an alternative to paying Meyer cash
to satisfy the Long Term Part, the Surviving Entity may make restricted stock grants of
Common Shares to Meyer each year during the Guaranteed Compensation Period that:

(i) are made during the same calendar quarter of the year as the calendar quarter
during which Key made LTIC Stock Grants to Meyer in the last calendar year that
ended before the beginning of the Guaranteed Compensation Period;

(ii) have a Fair Market Value that on an annual basis is at least equal to Meyer’s
Average Long Term Incentive Compensation;

(iii) provide for time lapsed vesting of the restricted stock subject to the grant
so that the entire grant will be fully vested not later than the third anniversary
of the date of grant if Meyer continues to be employed through that date; and

(iv) have the further provision that, upon any termination of Meyer’s employment
other than a termination for Cause (including, without limitation, any termination
by reason of death, disability, voluntary or involuntary retirement, or
resignation), if, as of the Termination Date, less than a proportionate part of the
Common Shares subject to the restricted stock grant granted to Meyer during the
Guaranteed Compensation Period has vested, then an additional portion of those
Common Shares shall vest immediately on the Termination Date so that, in the
aggregate, a proportionate part has vested as of the Termination Date. For these
purposes, “a proportionate part” means the full number of Common Shares in the
restricted stock grant multiplied by a fraction, the numerator of which is the

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number of days between (x) January 1 of the calendar year in which the restricted
stock grant was made and (y) the last day of the Guaranteed Compensation Period,
inclusive, and the denominator of which is 1095 (i.e., 365 times three).

If the Surviving Entity makes restricted stock grants as provided in this 5.3(c), the Surviving
Entity will have satisfied the Long Term Part.

6. Termination.

6.1 Three Years following Notice of Non-Renewal. If either party gives written notice to the
other of his or its intention to discontinue the otherwise automatic renewal of the term of
Meyer’s employment hereunder (a “Non-Renewal Notice”), that term will terminate on the third
anniversary of the giving of the Non-Renewal Notice, except that if a Change of Control occurs
before that third anniversary date and while Meyer remains employed by Key pursuant to this
Agreement, the Non-Renewal Notice shall be automatically abrogated and thereafter treated as
though it had never been given unless Meyer gives written notice, not later than 30 days after
the occurrence of the Change of Control, that he desires to have the Non-Renewal Notice (whether
it was given by Key or by Meyer) continue in effect. If either party gives the other a
Non-Renewal Notice as provided in the immediately preceding sentence, that Non-Renewal Notice
remains in effect through the third anniversary of the giving of that notice, and Meyer’s
employment continues through that third anniversary, Meyer’s employment under this Agreement
shall terminate at 12:00 Midnight on that third anniversary.

6.2 Death or Disability. Meyer’s employment hereunder will terminate immediately upon Meyer’s
death. Key may terminate Meyer’s employment hereunder immediately upon giving notice of
termination if Meyer is disabled, by reason of physical or mental impairment, to such an extent
that he is unable to substantially perform his duties under this Agreement for 180 consecutive
days.

6.3 For “Cause” Absent a Change of Control. At any time that is either before the occurrence of
any Change of Control or after the second anniversary of the then most recent Change of Control,
Key may terminate Meyer’s employment hereunder for “Cause” if :

(a) Meyer commits a felony (other than felonious operation of a motor vehicle);

(b) Meyer commits an act or series of acts of dishonesty in the course of his
employment that are materially inimical to the best interests of Key or a Subsidiary as
determined by Majority Action of the Board of Directors and, if the act or acts are
capable of being cured, Meyer fails to cure or take all reasonable steps to cure within
30 days of notice from the Board of Directors to Meyer;

(c) Key or any Subsidiary has been ordered or directed by any federal or state
regulatory agency with jurisdiction to terminate or suspend Meyer’s employment and such
order or directive has not been vacated or reversed upon appeal;

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(d) Meyer continues to violate his obligation under Section 10.1 not to engage in
Competitive Activities for more than ten days after the Board of Directors has by
Majority Action advised him in writing to cease those activities; or

(e) Other than for disability, Meyer abandons and consistently fails to attempt to
perform his duties and responsibilities as specified from time to time by the Board of
Directors for 90 consecutive days after the Board of Directors has by Majority Action
advised him in writing of that failure.

6.4 For “Cause” Within Two Years After a Change of Control. From the date on which occurs any
Change of Control and thereafter through the second anniversary of that Change of Control, the
Surviving Entity and its Subsidiaries may terminate Meyer’s employment under this Agreement for
“Cause” only if :

(a) Meyer is convicted of a felony (other than felonious operation of a motor vehicle);

(b) Meyer commits an act or series of acts of dishonesty in the course of his
employment that are materially inimical to the best interests of the Surviving Entity or
any of its Subsidiaries and that constitutes the commission of a felony (other than
felonious operation of a motor vehicle), all as determined in good faith by the vote of
three quarters of the entire number of members of the Board of Directors, which
determination is confirmed by a panel of three arbitrators appointed and acting in
accordance with the rules of the American Arbitration Association for the purpose of
reviewing that determination;

(c) The Surviving Entity or any of its Subsidiaries has been ordered or directed by any
federal or state regulatory agency with jurisdiction to terminate or suspend Meyer’s
employment and, notwithstanding the best efforts of the Surviving Entity and/or its
relevant Subsidiary or Subsidiaries to oppose, initially, and to appeal, thereafter, the
order or directive, that order or directive has not been vacated or reversed upon
appeal; or

(d) Meyer continues to violate his obligation under Section 10.1 not to engage in
Competitive Activities for more than ten days after the Board of Directors has by
Majority Action advised him in writing to cease those activities, that violation is
material, and the fact that the violation both was material and so continued beyond that
ten day period is confirmed by a panel of three arbitrators appointed and acting in
accordance with the rules of the American Arbitration Association for the purpose of
determining whether the violation both was material and so continued beyond that ten day
period.

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If (x) the Surviving Entity or any of its Subsidiaries terminates the employment of Meyer during
the two year period beginning on the date of a Change of Control and at a time when it has
“Cause” therefor under clause (c) above, (y) the order or directive is subsequently vacated or
reversed on appeal and the vacation or reversal becomes final and no longer subject to further
appeal, and (z) the Surviving Entity or any of its Subsidiaries fails to offer to reinstate
Meyer to employment under this Agreement within ten days of the date on which the vacation or
reversal becomes final and no longer subject to further appeal, the Surviving Entity and its
Subsidiaries will be deemed to have terminated Meyer without Cause during the two year period
beginning on the date of the Change of Control.

6.5 By Key Without Cause. Key may terminate Meyer’s employment hereunder without Cause at any
time by Majority Action of the Board of Directors.

6.6 By Meyer Following Constructive Termination at Any Time. Meyer may terminate his employment
hereunder “on grounds of Constructive Termination” (and, if Meyer elects to terminate his
employment in such circumstances, he will be deemed to have been “Constructively Terminated” and
not to have “Voluntarily Resigned” or “Voluntarily Retired”) if, at any time:

(a) Meyer’s Base Salary is reduced other than in connection with, and then only to the
extent of, a general across-the-board salary reduction applicable to the executive
officers of Key generally;

(b) Meyer is excluded from full participation in any incentive, option, restricted
stock, or other compensatory plan applicable to executive officers of Key generally;

(c) Meyer is subject to Demotion or Removal;

(d) Key requests Meyer’s resignation or retirement at a time when Key does not have
grounds to terminate Meyer’s employment for Cause; or

(e) Meyer’s principal place of employment for Key is relocated outside of the Cleveland
metropolitan area or Meyer is otherwise required by Key to relocate outside the
Cleveland metropolitan area.

6.7 By Meyer Following Constructive Termination Within Two Years After a Change of Control. At
any time during the period beginning on the date on which occurs any Change of Control and
thereafter through the second anniversary of that Change of Control, Meyer may terminate his
employment hereunder “on grounds of Constructive Termination” (and, if Meyer elects to terminate
his employment in such circumstances, he will be deemed to have been “Constructively Terminated”
and not to have “Voluntarily Resigned” or “Voluntarily Retired”) if he could then terminate his
employment on any of the grounds of Constructive Termination listed under Section 6.6 or if:

(a) Meyer’s Base Salary is reduced from the highest level in effect at any time during
the one year period ending on the date of the Change of Control;

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(b) Meyer is excluded from full participation in any incentive, option, restricted
stock, or other compensatory plan that was available to him and in effect at any time
during the one year period ending on the date of the Change of Control (the “Pre-Change
of Control Compensatory Plans”) unless Meyer is provided with substitute incentive,
option, restricted stock, and other compensatory plans that provide to Meyer, in the
aggregate, at least substantially equivalent compensatory opportunities as would have
been provided had the Pre-Change of Control Compensatory Plans remained in effect with
Meyer as a full participant therein;

(c) Following notice by Meyer to the Surviving Entity and an opportunity by the
Surviving Entity to cure, the Surviving Entity fails to satisfy the Incentive
Compensation Guaranty or the Option/SAR Guaranty or Meyer is otherwise excluded from
full participation in any incentive, option, restricted stock, or other compensation
plan that is generally applicable to executive officers of the Surviving Entity after
the Change of Control;

(d) The headquarters of the Surviving Entity is located outside of the Cleveland
metropolitan area;

(e) Meyer determines in good faith that his responsibilities, duties, or authorities
with the Surviving Entity are materially reduced from those in effect before the Change
of Control and the reduction has not been cured within thirty days after Meyer gives
notice to the Board of Directors of the Surviving Entity of his election to terminate
his employment based upon that reduction; or

(f) Meyer determines in good faith that as a result of the Change of Control he is
unable to carry out the authorities, powers, functions, responsibilities, or duties as
Chairman of the Board of Directors and Chief Executive Officer as those authorities,
powers, functions, responsibilities, or duties attached to those positions were in
effect before the Change of Control and the Board of Directors of the Surviving Entity
fails to fully address those issues (as determined by Meyer in good faith) within thirty
days after Meyer gives notice to the Board of Directors of his determination under this
clause (f) and the basis of such determination.

For purposes of clause (c), the Surviving Entity will be deemed to have had an opportunity to
cure and to have failed to effect a cure if the failure to satisfy the Incentive Compensation
Guaranty or the Option/SAR Guaranty, as the case may be, persists (as determined in good faith
by Meyer) for more than thirty calendar days after Meyer has given notice to the Surviving
Entity of the existence of that failure.

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7. Severance Payments and Benefits upon Termination.

7.1 Termination by Key Without Cause, etc., or by Meyer Following Constructive Termination.
If Meyer’s employment is terminated by Key (or, if applicable, the Surviving Entity) for any
reason other than Cause, disability, or death, or if Meyer is Constructively Terminated:

(a) Base Salary through Termination Date. Key shall pay to Meyer, at the same time or
times as would have been the case absent the termination, any unpaid Base Salary due or
to become due to Meyer with respect to any period ending on or before the Termination
Date.

(b) Short Term Incentive Compensation through Termination Date. Key shall pay to
Meyer, within 30 days after the Termination Date, as short term incentive compensation
with respect to each short term incentive compensation plan in which Meyer is a
participant, an amount equal to a pro rata portion of Meyer’s targeted short term
incentive compensation under that plan for the calendar year in which the Termination
Date falls. For these purposes, a “pro rata portion” means the percentage figure
determined by dividing the number of days between January 1 of the calendar year in
question through the Termination Date, inclusive, by 365. Any amount paid by Key to
Meyer pursuant to this Section 7.1(b) with respect to a particular short term incentive
compensation plan in which Meyer is a participant shall reduce, but not below zero, the
amount that Key is required to pay to Meyer under that plan as short term incentive
compensation for the calendar year in which the Termination Date falls, but that short
term incentive compensation plan shall in all other respects be governed by its terms.

(c) Lump Sum Payment. Key shall pay to Meyer, within 30 days after the Termination
Date, a lump sum severance benefit equal to three times the sum of (i) one year’s Base
Salary (at the highest rate in effect at any time before the Termination Date) plus (ii)
his Average Short Term Incentive Compensation plus (iii) 50% of his Average Long Term
Incentive Compensation.

(d) Retirement and Savings Plan Participation. For the period beginning on the day
after the Termination Date and ending on the third anniversary of the Termination Date
(the “Continuing Benefit Period”), Key shall cause Meyer to continue to be covered by
and to participate in all Retirement Plans and Savings Plans that he was entitled to be
covered by and participating in as an officer of Key immediately before the Termination
Date in the same manner and to the same extent as if Meyer continued in the full-time
employ of Key throughout the Continuing Benefit Period, except where such coverage or
participation is Impermissible. For these purposes: (i) the entire Continuing Benefit
Period shall be included in determining Meyer’s years of service, (ii) amounts received
by Meyer under clause (c)(i) above shall be deemed to be base salary received by Meyer
ratably during the Continuing Benefit Period, and
(iii) amounts received by Meyer under clauses (c)(ii) and (c)(iii) above

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shall be deemed
to be incentive compensation received by Meyer ratably during the Continuing Benefit
Period. If, at any time during the Continuing Benefit Period, Key determines in good
faith that continuing Meyer’s coverage by and participation in any of the Retirement
Plans or any of the Savings Plans during the Continuing Benefit Period is Impermissible,
Meyer shall not be covered by and participate in such affected plan or plans during the
Continuing Benefit Period, but Key shall provide to Meyer under this Agreement, as a
supplemental retirement benefit, payments and benefits that put Meyer in the same
position that he would have been in had he continued to be covered by and participated
in all such affected plan or plans throughout the Continuing Benefit Period to the same
extent as he was a participant immediately before the Termination Date, with the
supplemental payments and benefits under this sentence being payable to Meyer (or, if
applicable, to his wife, estate, or designated beneficiary) at the same time and with
the same payment options as would be applicable under the affected plan or plans in
question.

(e) Deferred Savings Plan Benefit. Within 30 days of Meyer’s Termination Date, Key
shall provide Meyer with a lump sum cash payment, which shall equal the amount of
corporate contributions that Meyer otherwise would be eligible to receive under the
KeyCorp Deferred Savings Plan as if Meyer actively deferred 6% or more of his base
salary and 6% or more of his incentive compensation award to the KeyCorp Deferred
Savings Plan during the Continuing Benefit Period (as referenced in Section 7.1(d)
hereof). For purposes of this Section 7.1(e), base salary shall be deemed to be the
amount to be received by Meyer under clause (c)(i) above of this Section 7.1, and
incentive compensation award shall be deemed to be the amount to be received by Meyer
under clause (c)(ii) above of this Section 7.1.

(f) Medical, Disability, Group Term Life, and Accidental Death and Dismemberment
Coverage. Through the third anniversary of the Termination Date, Key shall continue to
maintain and shall assume the cost of providing (i) medical coverage for Meyer and his
dependents under the provisions of the KeyCorp-sponsored retiree medical plan as then in
effect for all KeyCorp retirees of similar age, (ii) conversion group term life
insurance coverage for the benefit of Meyer and his dependents based on one times
Meyer’s base salary coverage level at the time of Meyer’s Termination Date (subject to
the conversion coverage requirements of the group term life plan as then in effect as of
Meyer’s Termination Date), (iii) conversion accidental death and dismemberment coverage
for the benefit of Meyer and his dependents at the coverage level in effect immediately
prior to Meyer’s Termination Date (subject to the conversion coverage requirements of
the accidental death and dismemberment plan as in effect as of Meyer’s Termination
Date), and (iv) continued coverage under Meyer’s individual policy of disability
insurance as in effect as of Meyer’s Termination Date. (Meyer may also elect dental
coverage for himself and his dependents under the provisions of the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended and Key shall assume the cost for such
continued dental coverage.) After the third anniversary of the Termination Date, Meyer
and his dependents may continue to be covered under
the foregoing benefits, provided, however, that Meyer and his dependents assume the cost
for such continued coverage

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based on the premium contribution requirements and
applicable policy requirements as then in effect for each benefit coverage, and further
provided, that Meyer and his dependents’ retiree medical plan premium costs shall be
adjusted to reflect the KeyCorp-provided subsidized cost-sharing premium amounts that
are otherwise provided under the retiree medical plan.

7.2 Effect of Death While in Employ of Key. If Meyer dies while employed by Key:

(a) Key shall pay to Meyer’s estate any unpaid Base Salary due or to become due to
Meyer with respect to any period ending before his death and Key shall have no further
obligations to Meyer for Base Salary for any period after Meyer’s death.

(b) Key shall provide retiree medical plan coverage (i) for the benefit of Meyer’s
wife, for her lifetime, and (ii) for the benefit of each of Meyer’s children, through
the earlier of the date on which he or she attains age 23 or has ceased for more than
120 consecutive days to be a full time student. Key shall also provide continued dental
coverage under the provisions of the Consolidated Omnibus Budget Reconciliation Act of
1985, as amended, for the benefit of Meyer’s wife, and for the benefit of each of
Meyer’s children. In each case, such benefits shall be provided at Key’s sole cost.

(c) Upon his death, Meyer’s rights under any other plan or benefit of Key shall be
governed by the respective terms thereof.

7.3 Effect of Disability While in Employ of Key. If, while Meyer is employed by Key, he becomes
disabled, by reason of physical or mental impairment, to such an extent that he is unable to
perform his duties under this Agreement:

(a) Key may relieve Meyer of his duties under this Agreement for as long as Meyer is so
disabled.

(b) Key shall pay to Meyer all Base Salary and incentive compensation to which he would
have been entitled under this Agreement and under applicable incentive compensation
plans had he continued to be actively employed by Key to the earliest of (i) the date on
which he becomes eligible for payment of long term disability benefits under the Long
Term Disability Benefit Plan, (ii) the date of his death, or (iii) the third anniversary
of the first date on which his employment hereunder could have been terminated by Key
pursuant to the second sentence of Section 6.2, except that if, after Meyer has become
so disabled and before he is terminated by Key pursuant to the second sentence of
Section 6.2, Meyer recovers so that he is no longer so disabled to such an extent that
he is unable to perform his duties under this Agreement, Meyer shall be restored to his
duties under this Agreement and entitled to the benefits of and subject to this
Agreement as if no period of disability had occurred.

(c) The amounts payable to Meyer for any month under this Section 7.3 shall be reduced,
but not below zero, by the full amount of the payments, if any, received by

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Meyer for
that month (i) from all Retirement Plans, (ii) from the Long Term Disability Plan, and
(iii) from any other disability plan the entire cost of which is borne by Key.

(d) For purposes of all incentive compensation, retirement, savings, stock option,
restricted stock, disability, and other employee benefit and welfare plans or
arrangements allowed or provided by Key to executive officers, Meyer shall be treated in
the same manner that Key treats other executive officers who become disabled.

(e) Except as provided in this Section 7.3, Key shall have no further obligations to
Meyer for Base Salary or incentive compensation for any period during which Meyer is so
disabled to such an extent that he is unable to perform his duties under this Agreement.

(f) The payments provided for under this Section 7.3 shall be made as provided for in
this Section notwithstanding any termination of Meyer’s employment under the second
sentence of Section 6.2.

7.4 Effect of Termination for Cause. If Meyer’s employment is terminated for Cause, Key may, by
giving written notice to Meyer, terminate all its obligations remaining to be performed or
observed by it under this Agreement (other than the obligation to pay Base Salary to Meyer
through the Termination Date and the obligations of Key under
Sections 11 and 12.3), except no
termination of Key’s obligations under this Agreement shall affect Meyer’s rights under any plan
or benefit of Key, all of which shall be governed by their respective terms.

7.5 Effect of Termination Upon Meyer’s Voluntary Resignation or Voluntary Retirement. If
Meyer’s employment is terminated by Meyer’s Voluntary Resignation or Voluntary Retirement, Key
may, by giving written notice to Meyer, terminate all its obligations remaining to be performed
or observed by it under this Agreement (other than the obligation to pay Base Salary to Meyer
through the Termination Date, the obligations of Key under
Sections 11 and 12 and, to the extent
then applicable by their respective terms, the obligations of Key under Sections 14, 15, and
16), except no termination of Key’s obligations under this Agreement shall affect Meyer’s rights
under any plan or benefit of Key, all of which shall be governed by their respective terms.

8. No Set-Off; No Obligation to Seek Other Employment or to Otherwise Mitigate Damages; No Effect
Upon Other Plans. Key’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense, or other claim whatsoever that Key or any of its Subsidiaries may have against
Meyer, except that the prohibition on set-off, counterclaim, recoupment, defense, or other claim
contained in this sentence shall not apply if Meyer’s employment is terminated by Key for Cause at
any time that is either before the occurrence of any Change of Control or after the second
anniversary of the then most recent Change of Control. Meyer shall not be required to mitigate
damages or the amount of any payment provided for
under this Agreement by seeking other employment or otherwise. The amount of any payment provided
for under this Agreement shall not be reduced by any compensation or benefits earned by Meyer as
the result of employment by another employer or otherwise after the termination of Meyer’s
employment. Neither the provisions of this Agreement nor the making of any payment

12

 

provided for
hereunder, nor the termination of Key’s obligations under this Agreement, shall reduce any amounts
otherwise payable, or in any way diminish Meyer’s rights, under any incentive compensation plan,
stock option or stock appreciation rights plan, restricted stock plan or agreement, deferred
compensation, retirement, or supplemental retirement plan, stock purchase and savings plan,
disability or insurance plan, or other similar contract, plan, or arrangement of Key or any
Subsidiary, all of which shall be governed by their respective terms.

9. Payments Are in Lieu of Severance Payments. If Meyer becomes entitled to receive payments under
this Agreement as a result of termination of his employment, those payments shall be in lieu of any
and all other claims or rights that Meyer may have against Key for severance, separation, and/or
salary continuation pay upon that termination of his employment.

10. Limitations on Competition.

10.1 During Employment. Meyer shall not engage in any Competitive Activity during the period of
his employment with Key.

10.2 Two Years in Certain Circumstances. If Meyer’s employment is terminated within two years
after the occurrence of a Change of Control either by Key without Cause or by Meyer after he has
been Constructively Terminated, Meyer shall not engage in any Competitive Activity during the
two year period ending on the second anniversary of the Termination Date.

10.3 Three Years Following Any Other Termination. If Meyer’s employment is terminated (whether
by him, by Key, or otherwise) in any circumstances other than those expressly covered by Section
10.2 above, Meyer shall not engage in any Competitive Activity at any time during the three year
period ending on the third anniversary of the Termination Date.

10.4 No Further Obligation to Make Payments or Provide Benefits Following Continuing Breach. If
Meyer continues to violate the restriction set forth in Section 10.2 or 10.3, as may be
applicable, after the Board of Directors has advised him by Majority Action in writing to cease
those activities and that violation is material, Key shall thereupon be relieved of all further
obligations to make payments and provide benefits to Meyer under any of the provisions contained
in Section 7.1. Meyer shall not be required to repay to Key any payment received by him before
he began to engage in any such Competitive Activity.

10.5 Other Remedies. In addition to other remedies provided by law or equity, upon a breach by
Meyer of any prohibition on Competitive Activity contained in this Section 10, Key shall be
entitled to have a court of competent jurisdiction enter an injunction against Meyer restraining
him from any further breach of any such prohibition.

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11. Indemnification. Key shall indemnify Meyer, to the full extent permitted or authorized by the
Ohio General Corporation Law as it may from time to time be amended, if Meyer is made or threatened
to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether
civil, criminal, administrative, or investigative, by reason of the fact that Meyer is or was a
director, officer, employee, or agent of Key or any Subsidiary, or is or was serving at the request
of Key or any Subsidiary as a director, trustee, officer, employee, member, manager, or agent of a
bank, corporation, domestic or foreign, nonprofit or for profit, limited liability company,
partnership, joint venture, trust, or other enterprise, including serving as a committee member or
other fiduciary of any employee benefit plan maintained by Key or any Subsidiary (“Plan”),
including serving as a member of either the Key Cash Balance Pension Plan Trust Oversight Committee
or the Key 401(k) Savings Plan Trust Oversight Committee, or any successor of either of the
Committees. The indemnification provided by this Section 11 shall not be deemed exclusive of any
other rights to which Meyer may be entitled under the articles of incorporation or the regulations
of Key or of any Subsidiary, or any agreement, vote of shareholders or disinterested directors,
insurance policy or similar protection, or otherwise, both as to action in Meyer’s official
capacity and as to action in another capacity while holding such office, and shall continue as to
Meyer after Meyer has ceased to be a director, trustee, officer, employee, member, manager, agent,
committee member, or other fiduciary and shall inure to the benefit of the heirs, executors, and
administrators of Meyer. Notwithstanding the foregoing provisions of this Section 11, Meyer shall
not be indemnified if it is judicially determined that Meyer’s action or failure to act constituted
gross negligence or willful misconduct in carrying out his duties as a fiduciary of any employee
benefit plan maintained by Key or any Subsidiary plan.

12. Reimbursement of Certain Expenses.

12.1 Key shall pay, as incurred, all expenses, including the reasonable fees of counsel engaged
by Meyer, of defending any action brought to have this Agreement declared invalid or
unenforceable.

12.2 Key shall pay, as incurred, all expenses, including the reasonable fees of counsel engaged
by Meyer, of prosecuting any action to compel Key to comply with the terms of this Agreement
upon receipt from Meyer of an undertaking to repay Key for such expenses if, and only if, it is
ultimately determined by a court of competent jurisdiction that Meyer had no reasonable grounds
for bringing that action (which determination need not be made simply because Meyer fails to
succeed in the action).

12.3 Expenses (including attorney’s fees) incurred by Meyer in defending any action, suit, or
proceeding commenced or threatened against Meyer (i) for any action or failure to act as an
employee, officer, director, or agent of Key or any Subsidiary or (ii) if Meyer is or was
serving at the request of Key or any Subsidiary, for any action or failure to act as a director,
trustee, officer, employee, member, manager, or agent of a bank, corporation, domestic or
foreign, nonprofit or for profit, limited liability company, partnership, joint venture, trust,
or other enterprise, including serving as a committee member or other fiduciary of any Plan,
shall be paid by Key, as they are incurred, in advance of final disposition of the action, suit,
or proceeding upon receipt of an undertaking by or on behalf of Meyer in which he agrees to

14

 

reasonably cooperate with Key or the Subsidiary, as the case may be, concerning the action,
suit, or proceeding, and (a) if the action, suit, or proceeding is commenced or threatened
against Meyer for any action or failure to act as a director, to repay the amount if it is
proved by clear and convincing evidence in a court of competent jurisdiction that his action or
failure to act involved an act or omission undertaken with deliberate intent to cause injury to
Key or a Subsidiary or with reckless disregard for the best interests of Key or a Subsidiary or
(b) if the action, suit, or proceeding is commenced or threatened against Meyer for any action
or failure to act as an officer, employee, trustee, member, manager, or agent (including as a
Plan fiduciary), to repay the amount if it is ultimately determined that he is not entitled to
be indemnified. The obligation of Key to advance expenses provided for in this Section 12.3
shall not be deemed exclusive of any other rights to which Meyer may be entitled under the
articles of incorporation or the regulations of Key or of any Subsidiary, or any agreement, vote
of shareholders or disinterested directors, insurance policy or similar protection or otherwise.
Without limiting the preceding provisions of this Section 12.3, Key shall advance Meyer’s
expenses provided for herein as incurred in connection with service as a member of either the
Key Cash Balance Pension Plan Trust Oversight Committee or the Key 401(k) Savings Plan Trust
Oversight Committee or any successor of either of the Committees.

13. Gross-Up of Payments Deemed to be Excess Parachute Payments.

13.1 Key and Meyer acknowledge that, following a Change of Control, one or more payments or
distributions to be made by Key to or for the benefit of Meyer (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement, under some other plan,
agreement, or arrangement, or otherwise) (a “Payment”) may be determined to be an “excess
parachute payment” that is not deductible by Key for Federal income tax purposes and with
respect to which Meyer will be subject to an excise tax because of Sections 280G and 4999,
respectively, of the Internal Revenue Code (hereinafter referred to respectively as “Section
280G” and “Section 4999”). If Meyer’s employment is terminated after a Change of Control
occurs, the Accounting Firm, which, subject to any inconsistent position asserted by the
Internal Revenue Service, shall make all determinations required to be made under this Section
13, shall determine whether any Payment would be an excess parachute payment and shall
communicate its determination, together with detailed supporting calculations, to Key and to
Meyer within 30 days after the Termination Date or such earlier time as is requested by Key.
Key and Meyer shall cooperate with each other and the Accounting Firm and shall provide
necessary information so that the Accounting Firm may make all such determinations. Key shall
pay all of the fees of the Accounting Firm for services performed by the Accounting Firm as
contemplated in this Section 13.

13.2 If the Accounting Firm determines that any Payment gives rise, directly or indirectly, to
liability on the part of Meyer for excise tax under Section 4999 (and/or any penalties and/or
interest with respect to any such excise tax), Key shall make additional cash payments to Meyer,
from time to time and at the same time as any Payment constituting an excess parachute payment
is paid or provided to Meyer, in such amounts as are necessary to put Meyer in the same
position, after payment of all federal, state, and local taxes (whether income taxes, excise
taxes under Section 4999 or otherwise, or other taxes) and any and all
penalties and interest with respect to any such excise tax, as Meyer would have been in after

15

 

payment of all federal, state, and local income taxes if the Payments had not given rise to an
excise tax under Section 4999 and no such penalties or interest had been imposed.

13.3 If the Internal Revenue Service determines that any Payment gives rise, directly or
indirectly, to liability on the part of Meyer for excise tax under Section 4999 (and/or any
penalties and/or interest with respect to any such excise tax) in excess of the amount, if any,
previously determined by the Accounting Firm, Key shall make further additional cash payments to
Meyer not later than the due date of any payment indicated by the Internal Revenue Service with
respect to these matters, in such amounts as are necessary to put Meyer in the same position,
after payment of all federal, state, and local taxes (whether income taxes, excise taxes under
Section 4999 or otherwise, or other taxes) and any and all penalties and interest with respect
to any such excise tax, as Meyer would have been in after payment of all federal, state, and
local income taxes if the Payments had not given rise to an excise tax under Section 4999 and no
such penalties or interest had been imposed.

13.4 If Key desires to contest any determination by the Internal Revenue Service with respect to
the amount of excise tax under Section 4999, Meyer shall, upon receipt from Key of an
unconditional written undertaking to indemnify and hold Meyer harmless (on an after tax basis)
from any and all adverse consequences that might arise from the contesting of that
determination, cooperate with Key in that contest at Key’s sole expense. Nothing in this
Section 13.4 shall require Meyer to incur any expense other than expenses with respect to which
Key has paid to Meyer sufficient sums so that after the payment of the expense by Meyer and
taking into account the payment by Key with respect to that expense and any and all taxes that
may be imposed upon Meyer as a result of his receipt of that payment, the net effect is no cost
to Meyer. Nothing in this Section 13.4 shall require Meyer to extend the statute of limitations
with respect to any item or issue in his tax returns other than, exclusively, the excise tax
under Section 4999. If, as the result of the contest of any assertion by the Internal Revenue
Service with respect to excise tax under Section 4999, Meyer receives a refund of a Section 4999
excise tax previously paid and/or any interest with respect thereto, Meyer shall promptly pay to
Key such amount as will leave Meyer, net of the repayment and all tax effects, in the same
position, after all taxes and interest, that he would have been in if the refunded excise tax
had never been paid.

14. Vesting of LTIC Stock Grants Upon Retirement. If Meyer retires after age 55 but before he
attains age 65 and the Committee approves of his retirement, for purposes of vesting (to the extent
not already vested) a pro rata number of shares of restricted stock, shares of phantom restricted
stock and/or Performance Shares, all as specified or permitted by the respective award instruments,
Meyer shall be treated under each award instrument as if, on the Termination Date, he retired
having achieved age 65. If any applicable award instrument does not specify the affect of
retirement having reached age 65, then Mr. Meyer shall be treated only for such purposes as if he
had died on the Termination Date.

15. Vesting of, and Extension of Exercise Period for, Stock Options. All stock options (other than
so-called “performance options,” which are options that vest or become exercisable only if
certain stock price and/or financial performance tests are achieved) granted to Meyer by Key after
February 1, 2001 that remain outstanding on the Termination Date shall be deemed to have

16

 

vested (to
the extent not already vested) as of immediately prior to the termination of his employment unless
Meyer’s employment is terminated by Key for Cause, by Meyer’s Voluntary Resignation before the
fifth anniversary of the date of grant of the particular stock option, or as a result of death or
disability. Each stock option (other than any performance option) granted to Meyer by Key after
February 1, 2001 that remains outstanding and is vested on the Termination Date (whether pursuant
to the immediately preceding sentence or otherwise) shall be exercisable after the Termination Date
until that particular option’s expiration date (which is the last date that the option would be
exercisable in accordance with its terms if Meyer had continued in Key’s employment indefinitely)
unless Meyer’s employment is terminated by Key for Cause or by Meyer’s Voluntary Resignation before
the fifth anniversary of the date of grant of the particular stock option. In the case of
incentive stock options granted to Meyer by Key after February 1, 2001, this Section 15 shall
apply, recognizing however that failure to exercise the incentive stock option within the time
periods after the Termination Date prescribed by the Internal Revenue Code may cause the option to
fail to qualify for incentive stock option treatment under the Internal Revenue Code. If, in
accordance with its terms and without regard to this Section 15, an option would vest earlier than
is provided in this Section 15 or would be exercisable for a longer period than is provided in this
Section 15, the terms of the option providing for earlier vesting and/or a longer period of
exercisability, as the case may be, shall govern. Each stock option (other than performance
options) granted to Meyer by Key after February 1, 2001 shall be deemed to contain the provisions
of this Section 15 as a part of the award instrument evidencing such option.

16. Post-Termination Benefits. Following termination of his employment with Key for any reason
other than Cause, Voluntary Resignation, or death, Key shall continue to provide to Meyer the
following benefits:

(a) Payment of an amount equal to the meeting fee and payment of reasonable expenses
for a meeting of the Board of Directors if Meyer attends Key’s annual meeting of
shareholders at the invitation or request of Key’s Chief Executive Officer.

(b) Use of office space and secretarial support in Key facilities in the Greater
Cleveland metropolitan area for a period of five years following the Termination Date.

(c) Payment of monthly membership dues at one country club, one luncheon club, and one
professional or cultural group or association located in the Greater Cleveland
metropolitan area; provided, however, that at any time after the fifth anniversary of
the Termination Date, Key may, by giving written notice to Meyer signed by the Chair of
the Committee, cease paying dues under this Section 16(c) if Meyer no longer utilizes
the club or clubs in question in connection with clients or business activities that are
a benefit to Key.

(d) Payment of the cost of tax preparation assistance but only to the extent and as
long as Key provides this benefit to its executive officers; provided, however, that at
any time after the fifth anniversary of the Termination Date, Key may, by giving written
notice to Meyer signed by the Chair of the Committee, cease paying the cost

17

 

of tax
preparation assistance under this Section 16(d) in respect of any tax year which begins
after the date Key gives such written notice to Meyer.

17. Savings Clause. If any payments otherwise payable to Meyer under this Agreement are prohibited
by any applicable statute or regulation in effect at the time the payments would otherwise be
payable, including, without limitation, any regulation issued by the Federal Deposit Insurance
Corporation (the “FDIC”) that limits so called “golden parachute payments” that can be made by an
FDIC insured institution or its holding company if the institution is financially troubled and
certain so-called “indemnification payments” (any such statute or regulation being a “Limiting
Rule”):

(a) Key will use its best efforts to obtain the consent of the appropriate governmental
agency (whether the FDIC or any other agency, and including using its best efforts to
appeal any refusal by any such agency to grant its consent) to the payment by Key to
Meyer of the maximum amount that is permitted (up to the amounts that would be due to
Meyer under this Agreement or otherwise absent the Limiting Rule); and

(b) Meyer will be entitled to elect to have apply, and therefore to receive benefits
directly under, either (i) this Agreement (as limited by the Limiting Rule) or (ii) any
generally applicable Key plan or policy (including any severance, separation pay, and/or
salary continuation plan that may be in effect at the time of Meyer’s termination), up
to the amounts that would be due to Meyer under this Agreement or otherwise absent the
Limiting Rule.

18. Compliance with Section 409A of the Internal Revenue Code. To the extent applicable, it is
intended that this Agreement comply with the provisions of Section 409A of the Internal Revenue
Code (hereinafter referred to as “Section 409A”). This Agreement shall be administered in a manner
consistent with this intent, and any provision that would cause the Agreement to fail to satisfy
Section 409A shall be amended to comply with Section 409A. Notwithstanding any provision of this
Agreement to the contrary, in the event any payment or benefit hereunder is determined to
constitute nonqualified deferred compensation subject to Section 409A, then to the extent necessary
to comply with Section 409A, such payment or benefit shall not be made, provided or commenced until
six months after Meyer’s “separation from service” as such phrase is defined for purposes of
Section 409A.

19. Survival of Obligations. Except as is otherwise expressly provided in this Agreement, the
respective obligations of Key and Meyer hereunder shall survive any termination of Meyer’s
employment under this Agreement.

20. Merger or Transfer of Assets of Key. Key will not consolidate with or merge into any other
corporation, or transfer all or substantially all of its assets to another corporation, unless such
other corporation shall assume this Agreement in a signed writing and deliver a copy thereof to
Meyer. Upon such assumption the successor corporation shall become obligated to perform
the obligations of Key under this Agreement, and the term “Key” as used in this Agreement shall be
deemed to refer to such successor corporation.

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21. Notices. Notices and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered in person (to the Secretary of
Key in the case of notices to Key and to Meyer in the case of notices to Meyer) or mailed by United
States registered mail, return receipt requested, postage prepaid, as follows:

If to Key:

KeyCorp

127 Public Square

Cleveland, Ohio 44114-1306

Attention: Secretary

If to Meyer:

Mr. Henry L. Meyer III

3385 Roundwood Road

Hunting Valley, Ohio 44022

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

22. Validity. The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement which shall remain
in full force and effect.

23. Miscellaneous. No provision of this Agreement may be modified, waived, or discharged unless
such waiver, modification, or discharge is agreed to in a writing signed by Meyer and Key. No
waiver by either party hereto at any time of any breach by the other party of, or compliance with,
any condition or provision of this Agreement to be performed by such other party shall be deemed a
waiver of similar or dissimilar provisions or conditions at the same time or at any prior or
subsequent time. No agreement or representation, oral or otherwise, express or implied, with
respect to the subject matter hereof has been made by either party which is not set forth expressly
in this Agreement. This Agreement shall be governed by and construed in accordance with the laws
of the State of Ohio.

24. Prior Agreement. This Agreement supersedes the agreement entered into between Meyer and Key as
of October 15, 1996 that provided Meyer certain protection in the event of a Change of Control of
Key.

25. Definitions.

25.1 Accounting Firm. The term “Accounting Firm” means the independent auditors of Key for the
fiscal year preceding the earlier of (i) the year in which the Termination Date occurred, or
(ii) the year, if any, in which occurred the first Change of Control occurring after the
Effective Date, and such firm’s successor or successors; provided, however, if such firm is
unable or unwilling to serve and perform in the capacity contemplated by this

19

 

Agreement, Key
shall select another national accounting firm of recognized standing to serve and perform in
that capacity under this Agreement, except that such other accounting firm shall not be the then
independent auditors for Key or any of its affiliates (as defined in Rule 12b-2 promulgated
under the Securities Exchange Act of 1934, as amended (the “1934 Act”)).

25.2 Average Annual Incentive Compensation. The term “Average Annual Incentive Compensation”
means the sum of Average Short Term Incentive Compensation, as defined in Section 25.4 below,
and Average Long Term Incentive Compensation, as defined in Section 25.3 below. For purposes of
this Agreement:

(a) incentive compensation means any cash based incentive compensation, including
bonuses and is calculated before any reduction on account of deferrals;

(b) notwithstanding the fact that they are made in restricted stock, phantom restricted
stock, and/or Performance Shares rather than in cash, any LTIC Stock Grant shall be
deemed to be long term incentive compensation;

(c) short term incentive compensation means incentive compensation for periods of time
of one year or less;

(d) targeted short term incentive compensation means:

(i) if the short term incentive compensation plan, program, or arrangement in
question designates a targeted amount or a targeted level of achievement applicable
to Meyer, it means that targeted amount or level;

(ii) if the short term incentive compensation plan, program, or arrangement in
question has only one level of payout applicable to Meyer (other than zero), it
means that level (i.e.: the level other than zero);

(iii) if the short term incentive compensation plan, program, or arrangement in
question does not designate a targeted amount or level of achievement applicable to
Meyer but does have multiple anticipated levels of possible payout or achievement
applicable to Meyer, it means (in each case excluding from consideration any level
that results in zero payout) the middle level of payout or achievement applicable to
Meyer (or if there are an even number of levels, the average of the two levels if
there are only two levels or the average of the middle two levels if there are four
or more levels); and

(iv) in all other cases, the amount anticipated or projected to be paid under the
plan, program, or arrangement in question at the time the performance period in
question commenced.

25.3 Average Long Term Incentive Compensation. The term “Average Long Term Incentive
Compensation” means the higher of:

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(i) the average of the dollar value of the LTIC Stock Grants made to Meyer in each of
the two years immediately preceding the Relevant Year (e.g., the average of the 2004
LTIC Stock Grant and the 2005 LTIC Stock Grant if the Relevant Year is 2006), or, if for
any reason an LTIC Stock Grant was made to Meyer in only one of those two immediately
preceding years, the dollar value of the LTIC Stock Grant for that single year; and

(ii) the dollar value of the LTIC Stock Grant for the Relevant Year.

For purposes of this Section 25.3, the dollar value of any LTIC Stock Grant means the aggregate
Fair Market Value of the Common Shares or phantom stock units subject to that grant (whether
those Common Shares are restricted Common Shares or Performance Shares or whether those shares
of phantom stock are restricted shares of phantom stock) as of the date the grant is made,
taking into account all and only all of the target levels of those Common Shares and shares of
phantom stock without regard to changes in Key’s stock price after the date of grant or to any
restrictions on or contingencies concerning those Common Shares or shares of phantom stock.

25.4 Average Short Term Incentive Compensation. The term “Average Short Term Incentive
Compensation” means the higher of:

(a) the average of the short term incentive compensation payable to Meyer for each of
the last two years immediately preceding the Relevant Year or, if for any reason short
term incentive compensation was payable to Meyer for only one of those two years, the
amount of short term incentive compensation payable to Meyer for that year, and

(b) Meyer’s targeted short term incentive compensation for the Relevant Year or for the
year immediately preceding the Relevant Year, whichever is higher.

25.5 Base Salary. The term “Base Salary” means the salary payable to Meyer from time to time
before any reduction for voluntary contributions to the KeyCorp 401(k) Plan or any other
deferral under any other plan. Base Salary does not include imputed income from payment by Key
of country club membership fees or other noncash benefits.

25.6 Board of Directors. The term “Board of Directors,” when used other than with specific
reference to another entity, means the Board of Directors of Key.

25.7 Change of Control. A “Change of Control” shall be deemed to have occurred if, at any time
after the date of this Agreement and while Meyer remains in the employ of Key, there is a Change
of Control under any of clauses (a), (b), (c), or (d) below. For these purposes, Key will be
deemed to have become a subsidiary of another corporation if any other corporation (which term
shall, for all purposes of this

21

 

Section 25.7, include, in addition to a corporation, a limited liability company, partnership,
trust, or other organization) owns, directly or indirectly, 50 percent or more of the total
combined outstanding voting power of all classes of stock of Key or any successor to Key.

(a) A Change of Control will have occurred under this clause (a) if Key is a party to a
transaction pursuant to which Key is merged with or into, or is consolidated with, or
becomes the subsidiary of another corporation and either

(i) immediately after giving effect to that transaction, less than 65% of the then
outstanding voting securities of the surviving or resulting corporation or (if Key
becomes a subsidiary in the transaction) of the ultimate parent of Key represent or
were issued in exchange for voting securities of Key outstanding immediately prior
to the transaction, or

(ii) immediately after giving effect to that transaction, individuals who were
directors of Key on the day before the first public announcement of (x) the pendency
of the transaction or (y) the intention of any person or entity to cause the
transaction to occur, cease for any reason to constitute at least 51% of the
directors of the surviving or resulting corporation or (if Key becomes a subsidiary
in the transaction) of the ultimate parent of Key.

(b) A Change of Control will have occurred under this clause (b) if a tender or
exchange offer shall be made and consummated for 35% or more of the outstanding voting
stock of Key or any person (as the term “person” is used in Section 13(d) and Section
14(d)(2) of the 1934 Act) is or becomes the beneficial owner of 35% or more of the
outstanding voting stock of Key or there is a report filed on Schedule 13D or Schedule
14D-1 (or any successor schedule, form or report), each as adopted under the 1934 Act,
disclosing the acquisition of 35% or more of the outstanding voting stock of Key in a
transaction or series of transactions by any person (as defined earlier in this clause
(b));

(c) A Change of Control will have occurred under this clause (c) if either

(i) without the prior approval, solicitation, invitation, or recommendation of the
Board of Directors any person or entity makes a public announcement of a bona fide
intention (A) to engage in a transaction with Key that, if consummated, would result
in a Change Event (as defined below in this clause (c)), or (B) to “solicit” (as
defined in Rule 14a-1 under the 1934 Act) proxies in connection with a proposal that
is not approved or recommended by the Board of Directors, or

(ii) any person or entity publicly announces a bona fide intention to engage in an
election contest relating to the election of directors of Key (pursuant to
Regulation 14A, including Rule 14a-11, under the 1934 Act),

and, at any time within the 24 month period immediately following the date of the announcement
of that intention, individuals who, on the day before that announcement,

22

 

constituted the
directors of Key (the “Incumbent Directors”) cease for any reason to constitute at least a
majority thereof unless both (A) the election, or the nomination for election by Key’s
shareholders, of each new director was approved by a vote of at least two-thirds of the
Incumbent Directors in office at the time of the election or nomination for election of such new
director, and (B) prior to the time that the Incumbent Directors no longer constitute a majority
of the Board of Directors, the Incumbent Directors then in office, by a vote of at least 75% of
their number, reasonably determine in good faith that the change in Board membership that has
occurred before the date of that determination and that is anticipated to thereafter occur
within the balance of the 24 month period to cause the Incumbent Directors to no longer be a
majority of the Board of Directors was not caused by or attributable to, in whole or in any
significant part, directly or indirectly, proximately or remotely, any event under subclause (i)
or (ii) of this clause (c).

For purposes of this clause (c), the term “Change Event” shall mean any of the events described
in the following subclauses (x), (y), or (z) of this clause (c):

(x) A tender or exchange offer shall be made for 25% or more of the outstanding
voting stock of Key or any person (as the term “person” is used in Section 13(d) and
Section 14(d)(2) of the 1934 Act) is or becomes the beneficial owner of 25% or more
of the outstanding voting stock of Key or there is a report filed on Schedule 13D or
Schedule 14D-1 (or any successor schedule, form, or report), each as adopted under
the 1934 Act, disclosing the acquisition of 25% or more of the outstanding voting
stock of Key in a transaction or series of transactions by any person (as defined
earlier in this subclause (x)).

(y) Key is a party to a transaction pursuant to which Key is merged with or into,
or is consolidated with, or becomes the subsidiary of another corporation and, after
giving effect to such transaction, less than 50% of the then outstanding voting
securities of the surviving or resulting corporation or (if Key becomes a subsidiary
in the transaction) of the ultimate parent of Key represent or were issued in
exchange for voting securities of Key outstanding immediately prior to such
transaction or less than 51% of the directors of the surviving or resulting
corporation or (if Key becomes a subsidiary in the transaction) of the ultimate
parent of Key were directors of Key immediately prior to such transaction.

(z) There is a sale, lease, exchange, or other transfer (in one transaction or a
series of related transactions) of all or substantially all the assets of Key.

(d) A Change of Control will have occurred under this clause (d) if there is a sale,
lease, exchange, or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of Key.

25.8 Committee. The term “Committee” means the Compensation and Organization Committee of the
Board of Directors of Key or any successor to that committee.

25.9 Common Shares. The term “Common Shares” means common shares of Key.

23

 

25.10 Competitive Activity. Meyer shall be deemed to have engaged in “Competitive Activity” if
he engages, without Key’s prior written consent, in any business or business activity in which
Key or any of its Subsidiaries engages, including, without limitation, engaging in any business
activity in the banking or financial services industry (other than as a director, officer, or
employee of Key or any of its Subsidiaries) or has an ownership interest in, or serves as a
director, officer, agent, or employee of, or in any other capacity with, any Financial Services
Company or renders services of a consultative, advisory, or other nature to any Financial
Services Company. Notwithstanding the foregoing, Meyer will not be deemed to have engaged in
Competitive Activity solely because of any one or more investments he may make in any one or
more for profit entity or entities, none of which is a Financial Services Company, or solely
because he owns stock in a publicly held Financial Services Company that constitutes not more
than 1% of the outstanding stock of that Financial Services Company.

25.11 Day. A “day” as used in this Agreement means a calendar day unless business day is
specifically referred to.

25.12 Demotion or Removal. Meyer shall be deemed to have been subjected to “Demotion or
Removal:”

(a) if Meyer ceases to be Chairman of the Board of Key (or, after a Change of Control,
of the Surviving Entity) at any time before the expiration of the term of his employment
pursuant to Section 6.1, other than as a result of the termination of his employment by
Key for Cause or of his Voluntary Resignation or Voluntary Retirement, death, or
disability,

(b) if Meyer ceases to be or have the responsibilities, duties, or authorities of Chief
Executive Officer of Key (or, after a Change of Control, of the Surviving Entity) at any
time before the expiration of the term of his employment pursuant to Section 6.1, other
than as a result of the termination of his employment by Key for Cause or of his
Voluntary Resignation or Voluntary Retirement, death, or disability, or

(c) if Meyer ceases to be a director of Key (or, after a Change of Control, of the
Surviving Entity) at any time before the expiration of the term of his employment
pursuant to Section 6.1, other than as a result of the termination of his employment by
Key for Cause or of his Voluntary Resignation or Voluntary Retirement, death, or
disability.

25.13 Fair Market Value. The term “Fair Market Value” with respect to Common Shares means:

(a) if the Common Shares are traded on a national exchange, the mean between the high
and low sales price per Common Share on the national exchange on the date for which the
determination of fair market value is made or, if there are no sales of

24

 

Common Shares on
that date, then on the next preceding date on which there were any sales of Common
Shares, or

(b) if the Common Shares are not traded on a national exchange, the mean between the
high and low sales price per Common Share in the over-the-counter market, National
Market System, as report by the National Quotations Bureau, Inc. and NASDAQ on the date
for which the determination of fair market value is made or, if there are no sales of
Common Shares on that date, then on the next preceding date on which there were any
sales of Common Shares.

The term “Fair Market Value” with respect to phantom stock units means the Fair Market Value of
the equivalent number of Common Shares, as underly the phantom stock units.

25.14 Financial Services Company. The term “Financial Services Company” means a bank, bank
holding company, savings and loan association, building and loan association, savings and loan
holding company, insurance company, investment banking, or securities company, or other
financial services company, other than Key or any of its Subsidiaries.

25.15 Impermissible. The term “Impermissible,” when used in the context of Meyer’s continued
coverage by and participation in any of the Retirement Plans or Savings Plans shall mean that
such a continuation would violate the provisions of any such plan, would cause any such plan
that is or is intended to be qualified under Section 401(a) of the Internal Revenue Code to fail
to be so qualified, would require shareholder approval, or would be unlawful.

25.16 Long Term Disability Plan. The term “Long Term Disability Plan” means and includes the
KeyCorp Long Term Disability Plan as from time to time amended, restated, or otherwise modified,
including any long term disability plan or program that, after the Effective Date, succeeds,
replaces, or is substituted for that plan and includes long term disability benefits or rights
provided pursuant to or under insurance contracts maintained by Key applicable to executive
officers of Key.

25.17 LTIC Stock Grant. The term “LTIC Stock Grant” means the grant, if any, of restricted
stock, of phantom restricted stock, of Performance Shares, or a combination of restricted stock,
phantom restricted stock and/or Performance Shares made by the Committee to Meyer during any
particular year as part of Key’s ongoing compensation program. For greater clarity, for
purposes of this Agreement, LTIC Stock Grants include:

(a) The grant of 31,163 shares of Performance-Based Restricted Stock and 31,162
shares of Cash Performance Shares made by the Committee effective February 19, 2004
under the 2004 Equity Compensation Plan subject to the approval of the Plan by the
shareholders of KeyCorp, which approval occurred on May 13, 2004, constitutes the 2004
LTIC Stock Grant.

25

 

(b) The grant of 29,610 shares of Performance-Based Restricted Stock and 29,610 shares
of Cash Performance Shares made by the Committee to Meyer by resolution adopted on
February 15, 2005 constitutes the 2005 LTIC Stock Grant.

The terms “2006 LTIC Stock Grant,” “2007 LTIC Stock Grant,” etc. refer to LTIC Stock Grants, if
any, made to Meyer by resolution adopted by the Committee in the specified year.

25.18 Majority Action. The term “Majority Action,” when used in reference to the Board of
Directors, means an action taken by the affirmative vote of a majority of the entire number of
members of the Board of Directors.

25.19 Performance Shares. The term “Performance Shares” means an award denominated in Common
Shares or phantom Common Shares (regardless of whether payable in stock or cash) the vesting of
which is contingent or accelerated upon attainment of one or more performance goals (absent
death, disability, or a Change of Control); provided, however, if the award is granted pursuant
to or under a long term incentive compensation plan or program that has a target amount or a
targeted level of performance, the terms Performance Shares and LTIC Stock Grant shall not
include the portion of the award beyond the target amount or the portion of the award the
vesting of which is contingent or accelerated upon exceeding the targeted level of performance
(for example, the 2004 LTIC Stock Grant does not include the additional 31,163 Stock Performance
Shares granted by the Committee to Meyer on February 19, 2004 that may be earned by exceeding
the target level up to the maximum level).

25.20 Relevant Year. The term “Relevant Year” means the year in which the Termination Date
occurs unless, during the two year period ending on the Termination Date, there has occurred one
or more Changes of Control, in which case the term “Relevant Year” means the year in which
occurred the first Change of Control that occurred during that two year period.

25.21 Retiree Medical Benefits Plan. The term “Retiree Medical Benefits Plan” means and
includes the KeyCorp Medical Benefits Plan For Retirees as from time to time amended, restated,
or otherwise modified, including any plan that, after the Effective Date, succeeds, replaces, or
is substituted for that plan.

25.22 Retirement Plans. The term “Retirement Plans” means and includes the KeyCorp Cash Balance
Pension Plan, which succeeded by merger the Retirement Plan for Employees of Society Corporation
and Subsidiaries, and the Supplemental Retirement Plan, in all cases, as from time to time
amended, restated, or otherwise modified, including any plan that, after the Effective Date,
succeeds, replaces, or is substituted for any such plan, and all retirement plans
of any nature maintained by Key or any of its Subsidiaries in which Meyer was participating
prior to the Termination Date. Reference to a “Retirement Plan,” in the singular, means any of
the Retirement Plans.

25.23 Savings Plans. The term “Savings Plans” means and includes the KeyCorp 401(k) Savings
Plan, as from time to time amended, restated, or otherwise modified, including any plan that,
after the Effective Date, succeeds, replaces, or is substituted for such

26

 

plan, and other than
the KeyCorp Deferred Savings Plan, all salary reduction, savings, profit-sharing, or stock bonus
plans (including, without limitation, all plans involving employer matching contributions,
whether or not constituting a qualified cash or deferred arrangement under Section 401(k) of the
Internal Revenue Code), maintained by Key or any of its Subsidiaries in which Meyer was
participating prior to the Termination Date. Reference to a “Savings Plan,” in the singular,
shall mean any of the Savings Plans.

25.24 Subsidiary. The term “Subsidiary,” as of any time, means any corporation, bank,
partnership, or other entity a majority of the voting control of which is directly or indirectly
owned or controlled at that time by Key or, after a Change of Control, by the Surviving Entity.

25.25 Surviving Entity. The term “Surviving Entity” means the entity surviving or resulting
from any Change of Control involving Key or (if Key becomes a subsidiary in the transaction) the
ultimate parent of Key.

25.26 Supplemental Retirement Plan. The term “Supplemental Retirement Plan” means the KeyCorp
Supplemental Retirement Plan, which succeeded by merger the Amended and Restated Society
Corporation Supplemental Retirement Plan, in all cases, as from time to time amended, restated,
or otherwise modified, including any plan that, after the Effective Date, succeeds, replaces, or
is substituted for the KeyCorp Supplemental Retirement Plan.

25.27 Termination Date. The term “Termination Date” means the date on which Meyer’s employment
with Key and its Subsidiaries terminates.

25.28 Voluntary Resignation. The term “Voluntary Resignation” means a termination by Meyer of
his employment with Key and its Subsidiaries before the expiration of the term of his employment
pursuant to Section 6.1 by voluntarily resigning at his own instance without having been
requested to so resign by Key, provided, however:

(a) A resignation by Meyer will not be deemed to be a Voluntary Resignation if it
occurs at a time when Meyer is entitled to terminate his employment on grounds of
Constructive Termination;

(b) Meyer will not be considered to have Voluntarily Resigned if he retires at any time
on or after February 1, 2011; and

(c) Meyer will not be considered to have Voluntarily Resigned if he retires at any time
before February 1, 2011 with the approval of the Board of Directors or the Committee.

25.29 Voluntary Retirement. The term “Voluntary Retirement” means a termination by Meyer of his
employment with Key and its Subsidiaries by voluntarily retiring at his own instance without
having been requested to so retire by Key, except that any retirement by Meyer will not be
deemed to be a Voluntary Retirement if it occurs at a time when Meyer is entitled to terminate
his employment on grounds of Constructive Termination.

27

 

     IN WITNESS WHEREOF, Key and Meyer have executed this Agreement, Key by its duly authorized
Vice Chairman of the Board, as of the date first written above.

	 	 	 	 	 	 	 
	 	 	KEYCORP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas C. Stevens	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Thomas C. Stevens	 	 
	 

	 	 	 	Vice Chairman of the Board	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Henry L. Meyer III	 	 
	 	 	 	 	 
	 	 	HENRY L. MEYER III	 	 

28EX-4(A)

 

Exhibit 4(a)

ARTICLES OF INCORPORATION

OF

HOME CITY FINANCIAL CORPORATION

     FIRST: The name of the corporation shall be Home City Financial Corporation.

     SECOND: The place in Ohio where the principal office of the corporation is to be
located is the City of Springfield, County of Clark.

     THIRD: The purpose for which the corporation is formed is to engage in any lawful act
or activity for which corporations may be formed under Section 1701.01 to 1701.98, inclusive, of
the Ohio Revised Code.

     FOURTH: The authorized shares of the corporation shall be eight hundred fifty (850)
common shares, each without par value. The directors of the corporation may adopt an amendment to
the Articles of Incorporation of the corporation in respect of any unissued or treasury shares of
any class and thereby fix or change: the division of such shares into series and the designation
and authorized number of each series; the dividend rate; the dates of payment of dividends and the
dates from which they are cumulative; the liquidation price; the redemption rights and price; the
sinking fund requirements; the conversion rights; and the restrictions on the issuance of shares of
any class or series.

     FIFTH: (A) The board of directors of the corporation shall have the power to cause the
corporation from time to time and at any time to purchase, hold, sell, transfer or otherwise deal
with (i) shares of any class or series issued by it, (ii) any security or other obligation of the
corporation which may confer upon the holder thereof the right to convert the same into shares of
any class or series authorized by the articles of the corporation, and (iii) any security or other
obligation which may confer upon the holder thereof the right to purchase shares of any class or
series authorized by the Articles of Incorporation of the corporation.

     (B) The corporation shall have the right to repurchase, if and when any shareholder desires to
sell, or on the happening of any event is required to sell, shares of any class or series issued by
the corporation.

     (C) The authority granted in this Article Fifth shall not limit the plenary authority of the
directors to purchase, hold, sell, transfer or otherwise deal with shares of any class or series,
securities or other obligations issued by the corporation or authorized by the Articles of
Incorporation of the corporation.

     SIXTH: Notwithstanding any provision of the Ohio Revised Code requiring for any
purpose the vote, consent, waiver or release of the holders of shares of the corporation entitling
them to exercise any proportion of the voting power of the corporation or of any class or classes
thereof, such action, unless expressly otherwise provided by statute, may be taken by the vote,
consent, waiver or release of the holders of shares entitling them to exercise not less than a

 

 

majority of the voting power of the corporation or of such class or classes; provided, however,
that if the board of directors of the corporation shall recommend against the approval of any of
the following matters, the affirmative vote of the holders of shares entitling them to exercise not
less than seventy-five percent (75%) of the voting power of any class or classes of shares of the
corporation which entitle the holders thereof to vote in respect of any such matter as a class
shall be required to adopt:

	 	(A)	 	A proposed amendment to the Articles of Incorporation of the corporation;
	 
	 	(B)	 	A proposed amendment to the Code of Regulations of the corporation;
	 
	 	(C)	 	A proposal to change the number of directors by action of the
shareholders;
	 
	 	(D)	 	An agreement of merger or consolidation providing for the
proposed merger or consolidation of the corporation with or into one or more
other corporations;
	 
	 	(E)	 	A proposed combination or majority share acquisition involving
the issuance of shares of the corporation and requiring shareholder approval;
	 
	 	(F)	 	A proposal to sell, exchange, transfer or otherwise dispose of
all, or substantially all, of the assets, with or without the goodwill, of the
corporation; or
	 
	 	(G)	 	A proposed dissolution of the corporation.

     SEVENTH: Until the expiration of five years from the date of the acquisition by the
corporation of the capital stock of Home City Federal Savings Bank of Springfield (the “Bank”) to
be issued in connection with the conversion of the Bank from mutual to stock form, no Person
(hereinafter defined) shall directly or indirectly Offer (hereinafter defined) to Acquire
(hereinafter defined) or Acquire the Beneficial Ownership (hereinafter defined) of more than 10% of
any class of any equity security of the corporation; provided, however, that such prohibition shall
not apply to the purchase of shares by underwriters in connection with a public offering or the
power of trustees to vote shares of the corporation held by an employee stock ownership plan for
the benefit of employees of the Bank or the corporation. In the event that any shares of the
corporation are Acquired in violation of this Article Seventh, all shares Beneficially Owned by any
Person in excess of 10% of any class of equity security of the corporation shall not be counted as
shares entitled to vote, shall not be voted by any Person and shall not be counted as voting shares
in connection with any matter submitted to the shareholders for a vote. For purposes of this
Article Seventh, the following terms shall have the meanings set forth below:

	 	(A)	 	“Person” includes an individual, a group acting in concert, a
corporation, a partnership, an association, a joint stock company, a trust, an
unincorporated organization or similar company, a syndicate or any other

2

 

	 	 	 	group formed for the purpose of acquiring or disposing of the equity
securities of the corporation, but does not include an employee stock
ownership plan for the benefit of employees of the Bank or the corporation.
	 
	 	(B)	 	“Offer” includes every offer to buy or otherwise acquire,
solicitations or an offer to sell, tender offer for, or request or invitation
for tenders of, a security or interest in a security for value.
	 
	 	(C)	 	“Acquire” includes every type of acquisition, whether effected
by purchase, exchange, operation of law or otherwise.
	 
	 	(D)	 	“Acting in concert” means (i) participation in a joint activity
or conscious parallel action towards a common goal, whether or not pursuant to
an express agreement, or (ii) a combination or pooling of voting or other
interests in the securities of an issuer for a common purpose pursuant to any
contracts, understanding, relationship, agreement or other arrangement, whether
written or otherwise.
	 
	 	(E)	 	“Beneficial Ownership” shall include, without limitation, (i)
all shares directly or indirectly owned by a Person, by an Affiliate
(hereinafter defined) of such Person or by an Associate (hereinafter defined)
of such Person or such Affiliate, (ii) all shares which such Person, Affiliate
or Associate has the right to acquire through the exercise of any option,
warrant or right (whether or not currently exercisable), through the conversion
of a security, pursuant to the power to revoke a trust, discretionary account
or similar arrangement, or pursuant to the automatic termination of a trust,
discretionary account or similar arrangement, and (iii) all shares as to which
such Person, Affiliate or Associate directly or indirectly through any
contract, arrangement, understanding, relationship or otherwise (including,
without limitation, any written or unwritten agreement to act in concert) has
or shares voting power (which includes the power to dispose or to direct the
disposition of such shares) or both.

3

 

	 	(F)	 	“Affiliate” shall mean a Person that directly or indirectly,
through one or more intermediaries, controls or is controlled by, or is under
common control with, another Person.
	 
	 	(G)	 	“Associate” of a Person shall mean (i) any corporation or
organization (other than the corporation or a subsidiary of the corporation) of
which the Person is an officer or partner or is, directly or indirectly, the
beneficial owner of ten percent or more of any class of equity securities, (ii)
any trust or other estate in which the Person has a substantial beneficial
interest or as to which the Person serves as trustee or in a similar fiduciary
capacity, except a tax-qualified employee stock benefit plan in which the
Person has a substantial beneficial interest or serves as a trustee or in a
similar fiduciary capacity or a tax-qualified employee stock benefit plan, and
(iii) any relative or spouse of the Person, or any relative of such spouse, who
has the same home as the Person or is a director or officer of the corporation
or any of its parents or subsidiaries.

     EIGHTH: No shareholder of the corporation shall have, as a matter of right, the
pre-emptive right to purchase or subscribe for shares of any class, now or hereafter authorized, or
to purchase or subscribe for securities or other obligations convertible into or exchangeable for
such shares or which by warrants or otherwise entitle the holders thereof to subscribe for or
purchase any such shares.

     IN WITNESS WHEREOF, I have hereunto signed my name this 12th day of August, 1996.

	 	 	 	 	 
	 	 Douglas L. Ulery, Incorporator

 	 

4

 

CERTIFICATE OF AMENDMENT

by Shareholders to the Articles of Incorporation of

HOME CITY FINANCIAL CORPORATION

 

(Name Of Corporation)

     Douglas L. Ulery, who is:

o Chairman of the Board    þ President    o Vice President (Check one)

and

     Jo Ann Holdeman, who is:

þ Secretary       o Assistant Secretary (Check one)

of the above named Ohio corporation for profit do hereby certify that: (check the appropriate box
and complete the appropriate statements)

	o	 	a meeting of the shareholders was duly called for the purpose of adopting this amendment and
held on
                                        , 19___ at which meeting a quorum of the shareholders was present
in person or by proxy, and by the affirmative vote of the holders of shares entitling them
to exercise                     % of the voting power of the corporation.
	 
	þ	 	in a writing signed by all of the shareholders who would be entitled to notice of a meeting
held for that purpose, the following resolution to amend the articles was adopted:

See Exhibit A.

     IN WITNESS WHEREOF, the above named officers, acting for and on the behalf of the corporation,
have hereto subscribed their names this 18th day of November, 1996.

	 	 	 	 	 
	 	 	 
	 	By  	                                                     Douglas L. Ulery
 	 
	 	 	President 	 
	 	 	 	 
	 
	 	 	 
	 	By  	                                                     Jo Ann Holdeman
 	 
	 	 	Secretary 	 
	 	 	 	 
	 

NOTE: Ohio law does not permit one officer to sign in two capacities, Two separate signatures are
required, even if this necessitates the election of a second officer before the filing can be made.

 

 

Exhibit A

RESOLVED, that the Articles of Incorporation of the Corporation be amended by deleting
Article FOURTH in its entirety and substituting therefor the following new Article FOURTH:

FOURTH: The authorized shares of the corporation shall be six million
(6,000,000), five million (5,000,000) of which shall be common shares, each without
par value, and one million (1,000,000) of which shall be preferred shares, each
without par value. The directors of the corporation may adopt an amendment to the
Articles of Incorporation in respect of any unissued or treasury shares of any class
and thereby fix or change: the division of such shares into series and the
designation and authorized number of each series; the dividend rate; the dates of
payment of dividends and the dates from which they are cumulative; the liquidation
price; the redemption rights and price; the sinking fund requirements; the
conversion rights; and the restrictions on the issuance of shares of any class or
series.

FURTHER RESOLVED, that the Articles of Incorporation of the Corporation be amended by adding
thereto the following Article NINTH:

NINTH: No shareholder of the corporation shall have the right to vote
cumulatively in the election of directors.

2

 

	 	 	 	 	 	 	 
	[Seal of the

	 	Prescribed by
	 	Charter No.
	 	950247
	State of Ohio]

	 	BOB TAFT, Secretary of State
	 	Approved
	 	RB
	 

	 	30 East Broad Street, 14th Floor
	 	Date
	 	11/25/96
	 

	 	Columbus, Ohio 43266-0418
	 	Fee
	 	35.00
	 

	 	Form SH-AMD (January 1991)
	 	 	 	96112524701

CERTIFICATE OF AMENDMENT

by Shareholders to the Articles of Incorporation of

Home City Financial Corporation

 

(Name of Corporation)

Douglas L. Ulery, who is:

	 	 	 	 	 
	o Chairman of the Board

	 	þ President
	 	o Vice President (check one)
	 
	 	 	 	 
	and
	 	 	 	 
	 
	 	 	 	 
	Jo Ann Holdeman, who is:

	 	þ Secretary
	 	o Assistant Secretary (check one)

of the above named Ohio corporation for profit do hereby certify that: (check the appropriate box
and

complete the appropriate statements)

	o	 	a meeting of the shareholders was duly called for the purpose of adopting this amendment and

held on
                                        , 19___ at which meeting a quorum of the shareholders was
present in person or by proxy, and by the affirmative vote of the holders of shares entitling
them to
exercise                     % of the voting power of the corporation.
	 
	þ	 	in a writing signed by all of the shareholders who would be entitled to notice of a meeting
held for
that purpose, the following resolution to amend the articles was adopted:
	 
	 	 	RESOLVED, that the Articles of Incorporation of the Corporation be amended by deleting Article

SECOND in its entirety and substituting therefor the following new Article SECOND:

               SECOND: The place in Ohio where the principal office of the corporation is to be
located is the City of Springfield, County of Clark.

          IN WITNESS WHEREOF, the above named officers, acting for and on the behalf of the corporation,
have hereto subscribed their names this 20th day of November,
1996.

	 	 	 	 	 
	 	 	 
	 	By  	     /s/ Douglas L. Ulery
 	 
	 	 	          (Chairman, President Vice President)     	 
	 	 	 	 
	 
	 	 	 
	 	By  	     /s/ Jo Ann Holdeman
 	 
	 	 	          (Secretary, Assistant Secretary)     	 
	 	 	 	 
	 

          NOTE: Ohio law does not permit one officer to sign in two capacities. Two separate
signatures are required, even if this necessitates the election of a second officer before the
filing can be made.

 

 

www.state.oh.us/sos

e-mail: busserv@sos.state.oh.us

Prescribed by J. Kenneth Blackwell

Ohio Secretary of State

Central Ohio: (614) 466-3910

Toll Free: 1-877-SOS-FILE (1-877-767-3453)

Expedite this Form: (Select One)

 

Mail Form to one of the Following:

 

                    PO Box 1390

  þ Yes

                    Columbus, OH 43216

***
Requires an additional fee of $100 ***

 

                    PO Box 1028

  o No

                    Columbus, OH 43216

Certificate of Amendment by

Shareholders or Members

(Domestic)

Filing Fee $50.00

  (CHECK ONLY ONE (1) BOX)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  (1) Domestic for Profit	 	PLEASE READ INSTRUCTIONS	 	 	(2) Domestic Non-Profit	 	 	 	 
	    o

	 	Amended

(122-AMAP)
	 	þ
	 	Amendment

(125-AMDS)
	 	 	    o
	 	Amended

(126-AMAN)
	 	o
	 	Amendment

(128-AMD)

	 	 	 
	Complete the general information in this section for the box checked above.
	 
	 	 
	Name of Corporation

	 	Home City Financial Corporation
	 
	 	 
	Charter Number

	 	950247
	 
	 	 
	Name of Officer

	 	J. William Stapleton
	 
	 	 
	Title

	 	President, CEO and COO
	 
	 	 
	þ  Please check if additional provisions attached.
	 
	 	 
	The above named Ohio corporation, does hereby certify that:
	 
	 	 
	þ  A meeting of the                     þ  shareholders                     o  directors (non-profit amended articles only)

	 	 	 	 	 
	o  members was duly called and held on

	 	November 30, 2006
 
	 	 
	 	 	(Date)	 	 

at which meeting a quorum was present in person or by proxy, based upon the quorum present, an
affirmative vote was cast which entitled them to exercise 58.64% as the voting power of
the corporation.

			
	o	 	In a writing signed by all of the      o  shareholders      o  directors (non-profit amended articles only)

			
	o	 	members who would be entitled to the notice of a meeting or such other proportion not less
than a majority as the articles of regulations or bylaws permit.

Clause applies if amended box is checked.

Resolved, that the following amended articles of incorporations be and the same are hereby
adopted to supercede and take the place of the existing articles of incorporation and all
amendments thereto.

Page 1 of 2

 

 

All of the following information must be completed if an amended box is
checked.
 If an amendment box is checked, complete the areas that apply.

	 	 	 	 	 	 	 	 
	  FIRST:	 	 	The name of the corporation is:
	 

	 	 	 	 
	 
	 	 	 	 	 	 	 
	  SECOND:	 	 	The place in the State of Ohio where its principal office is located is in the City of:
	 
	 	 	 	 	 	 	 
	 

	 	 	 

	 	 

	 	 
	 

	 	 	(city, village or township)
	 	(county)	 	 
	 
	 	 	 	 	 	 	 
	  THIRD:	 	 	The purposes of the corporation are as follows:
	 
	 	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	  FOURTH:	 	 	The number of shares which the corporation is authorized to have outstanding is: 6,000,000 (see attached)
	(Does not apply to box (2))

	 	 	 	 

	 	 	 	 	 	 	 	 	 
	REQUIRED
	 	 	 	 	 	 	 	 
	  Must be authenticated

  (signed) by an authorized

	 	/s/ J. William Stapleton
 

Authorized Representative
	 	 
	 	November 30, 2006
 

Date

	 	  
	  representative
	 	 	 	 	 	 	 	 
	(See Instructions)

	 	J. William Stapleton
 

(Print Name)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

Authorized Representative
	 	 
	 	 

Date

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

(Print Name)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

Page 2 of 2

 

 

ATTACHMENT TO THE

CERTIFICATE OF AMENDMENT

BY SHAREHOLDERS OF

HOME CITY FINANCIAL CORPORATION

     FOURTH: (Continued)

     (A) The authorized shares of the corporation shall be six million (6,000,000), five million
(5,000,000) of which shall be common shares, each without par value, and one million (1,000,000) of
which shall be preferred shares, each without par value. The directors of the corporation may
adopt an amendment to the Articles of Incorporation of the corporation in respect of any unissued
or treasury shares of any class and thereby fix or change: the
division of such shares into series and the designation and authorized number of each series; the dividend
rate; the dates of payment of dividends and the dates from which they are cumulative; the
liquidation price; the redemption rights and price; the sinking fund requirements; the conversion
rights; and the restrictions on the issuance of shares of any class or series.

     (B) Effective on the date and at the time this amendment to Article FOURTH of the Articles of
Incorporation is accepted by the Secretary of State of the State of Ohio (the “Effective Time”),
each two hundred ten (210) of the corporation’s common shares then issued and outstanding shall be
automatically converted into one fully-paid and non-assessable common share (the “Reverse Stock
Split”).

     (C) In lieu of the issuance of any fractional common shares or scrip that would otherwise
result from the Reverse Stock Split to any person who held less than two hundred ten (210) common
shares immediately before the Effective Time (the “Cashed Out Holders”), the amount of Seventeen
Dollars and Ten Cents ($17.10) shall be paid in cash to each Cashed Out Holder for each common
share held immediately prior to the Effective Time. Upon the completion of the Reverse Stock
Split, Cashed Out Holders shall cease to be shareholders of the corporation.

     (D) Each person who held two hundred ten (210) or more common shares immediately prior to the
Effective Time shall be issued whole and fractional common shares on the basis of the quotient of
the number of shares held by each such person, divided by two hundred ten (210).

     (E) This amendment to Article FOURTH shall affect only issued and outstanding shares of the
corporation and shall not affect the total authorized number of shares. This Article FOURTH shall
not change the stated capital or paid-in surplus referable to the common shares, if any.

 

 

www.state.oh.us/sos

e-mail: busserv@sos.state.oh.us

Prescribed by J. Kenneth Blackwell

Ohio Secretary of State

Central Ohio: (614) 466-3910

Toll Free: 1-877-SOS-FILE (1-877-767-3453)

Expedite this Form: (Select One)

 

Mail Form to one of the Following:

 

                    PO Box 1390

  þ Yes

                    Columbus, OH 43216

***
Requires an additional fee of $100 ***

 

                    PO Box 1028

  o No

                    Columbus, OH 43216

Certificate of Amendment by

Shareholders or Members

(Domestic)

Filing Fee $50.00

  (CHECK ONLY ONE (1) BOX)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  (1) Domestic for Profit	 	PLEASE READ INSTRUCTIONS	 	 	(2) Domestic Non-Profit	 	 	 	 
	    o

	 	Amended

(122-AMAP)
	 	þ
	 	Amendment

(125-AMDS)
	 	 	    o
	 	Amended

(126-AMAN)
	 	o
	 	Amendment

(128-AMD)

	 	 	 
	Complete the general information in this section for the box checked above.
	 
	 	 
	Name of Corporation

	 	Home City Financial Corporation
	 
	 	 
	Charter Number

	 	950247
	 
	 	 
	Name of Officer

	 	J. William Stapleton
	 
	 	 
	Title

	 	President, CEO and COO
	 
	 	 
	þ  Please check if additional provisions attached.
	 
	 	 
	The above named Ohio corporation, does hereby certify that:
	 
	 	 
	þ  A meeting of the                     þ  shareholders                     o  directors (non-profit amended articles only)

	 	 	 	 	 
	o  members was duly called and held on

	 	November 30, 2006
 
	 	 
	 	 	(Date)	 	 

at which meeting a quorum was present in person or by proxy, based upon the quorum present, an
affirmative vote was cast which entitled them to exercise 58.64% as the voting power of
the corporation.

			
	o	 	In a writing signed by all of the      o  shareholders      o  directors (non-profit amended articles only)

			
	o	 	members who would be entitled to the notice of a meeting or such other proportion not less
than a majority as the articles of regulations or bylaws permit.

Clause applies if amended box is checked.

Resolved, that the following amended articles of incorporations be and the same are hereby
adopted to supercede and take the place of the existing articles of incorporation and all
amendments thereto.

Page 1 of 2

 

 

All of the following information must be completed if an amended box is
checked.
 If an amendment box is checked, complete the areas that apply.

	 	 	 	 	 	 	 	 
	  FIRST:	 	 	The name of the corporation is:
	 

	 	 	 	 
	 
	 	 	 	 	 	 	 
	  SECOND:	 	 	The place in the State of Ohio where its principal office is located is in the City of:
	 
	 	 	 	 	 	 	 
	 

	 	 	 

	 	 

	 	 
	 

	 	 	(city, village or township)
	 	(county)	 	 
	 
	 	 	 	 	 	 	 
	  THIRD:	 	 	The purposes of the corporation are as follows:
	 
	 	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	  FOURTH:	 	 	The number of shares which the corporation is authorized to have outstanding is: 6,000,000 (see attached)
	(Does not apply to box (2))

	 	 	 	 

	 	 	 	 	 	 	 	 	 
	REQUIRED
	 	 	 	 	 	 	 	 
	  Must be authenticated

  (signed) by an authorized

	 	/s/ J. William Stapleton
 

Authorized Representative
	 	 
	 	November 30, 2006
 

Date

	 	  
	  representative
	 	 	 	 	 	 	 	 
	(See Instructions)

	 	J. William Stapleton
 

(Print Name)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

Authorized Representative
	 	 
	 	 

Date

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

(Print Name)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

Page 2 of 2

 

 

ATTACHMENT TO THE

CERTIFICATE OF AMENDMENT

BY SHAREHOLDERS OF

HOME CITY FINANCIAL CORPORATION

     FOURTH: (Continued)

     (A) The authorized shares of the corporation shall be six million (6,000,000), five million
(5,000,000) of which shall be common shares, each without par value, and one million (1,000,000) of
which shall be preferred shares, each without par value. The directors of the corporation may
adopt an amendment to the Articles of Incorporation of the corporation in respect of any unissued
or treasury shares of any class and thereby fix or change: the division of such shares into series
and the designation and authorized number of each series; the dividend rate; the dates of payment
of dividends and the dates from which they are cumulative; the liquidation price; the redemption
rights and price; the sinking fund requirements; the conversion rights; and the restrictions on the
issuance of shares of any class or series.

     (B) Effective on the date and at the time this amendment to Article FOURTH of the Articles of
Incorporation is accepted by the Secretary of State of the State of Ohio (the “Effective Time”),
each share of the corporation’s common shares then issued and outstanding shall be automatically
converted into two hundred ten (210) fully paid and non-assessable common shares (the “Forward
Stock Split”).

     (C) This amendment to Article FOURTH shall affect only issued and outstanding shares of the
corporation and shall not affect the total authorized number of shares. This Article FOURTH shall
not change the stated capital or paid-in surplus referable to the common shares, if any.

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