Document:

Exhibit 10(F)

 

EXHIBIT 10(f)

THE SHERWIN-WILLIAMS COMPANY 2005

KEY MANAGEMENT DEFERRED COMPENSATION PLAN

     The Sherwin-Williams Company, an Ohio corporation (the “Company”), hereby establishes this
2005 Key Management Deferred Compensation Plan (the “Plan”), effective as of January 1, 2005, for
the purpose of attracting high quality executives and promoting in its key executives increased
efficiency and an interest in the successful operation of the Company. The Plan is intended to
offer a select group of management or highly compensated employees the ability to defer
compensation in excess of compensation available to be deferred under other qualified and
nonqualified plans sponsored by the Company.

ARTICLE 1

Definitions

          1.1 Account shall mean the account or accounts established for a particular Participant
pursuant to Article 3 of the Plan.

          1.2 Administrator shall mean the person or persons appointed by the Board of Directors of the
Company to administer the Plan pursuant to Article 12 of the Plan.

          1.3 Base Salary shall mean the Participant’s annual base salary excluding incentive and
discretionary bonuses and other non-regular forms of compensation, after reductions for Social
Security and Medicare taxes and contributions to or deferrals under any pension, deferred
compensation or other benefit plans sponsored by the Company.

          1.4 Beneficiary shall mean the person(s) or entity designated as such in accordance with
Article 11 of the Plan.

          1.5 Bonus shall mean amounts paid to the Participant by the Company annually in the form of a
discretionary or incentive compensation or any other bonus designated by the Administrator after
reductions for contributions to or deferrals under any pension, deferred compensation or benefit
plans sponsored by the Company.

          1.6 Company shall mean The Sherwin-Williams Company.

          1.7 Crediting Rate shall mean the notional gains and losses credited on the Participant’s
Account balance which are based on the Participant’s choice among the investment alternatives made
available by the Administrator pursuant to Article 3 of the Plan.

          1.8 Disability shall have the same definition given to such term under The Sherwin-Williams
Company Salaried Employees’ Pension Investment Plan, as amended from time to time.

          1.9 Eligible Executive shall mean an employee of the Company, its subsidiaries or affiliates
eligible to participate in The Sherwin-Williams Company Management Incentive Plan, or such other
management employee, as may be designated by the Administrator to be eligible to participate in the
Plan.

          1.10 ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended.

          1.11 Financial Hardship shall mean the Participant’s or the Participant’s dependent’s (as
defined in Section 152(a) of the Internal Revenue Code) sudden and unexpected illness or accident,
the

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Participant’s sudden and unexpected property casualty loss, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the Participant,
which is not covered by insurance and may not be relieved by cessation of Plan deferrals or by the
liquidation of the Participant’s assets provided that such liquidation would not cause a severe
Financial Hardship, and which is determined to qualify as a Financial Hardship by the
Administrator. Cash needs arising from foreseeable events such as the purchase of a residence or
education expenses for children shall not, alone, be considered a Financial Hardship.

          1.12 Participant shall mean an Eligible Executive who has elected to participate and has
completed a Participant Election Form pursuant to Article 2 of the Plan.

          1.13 Participant Election Form shall mean the agreement in a form acceptable to the
Administrator, to make a deferral submitted by the Participant to the Administrator on a timely
basis pursuant to Article 2 of the Plan. The Participant Election Form may take the form of an
electronic communication followed by appropriate written confirmation from the Administrator
according to specifications established by the Administrator.

          1.14 Plan Year shall mean the calendar year, except that the first Plan Year shall begin on
the effective date of the Plan and end December 31, 2002.

          1.15 Retirement shall mean Termination of Employment on or after the Retirement Eligibility
Date.

          1.16 Retirement Eligibility Date shall mean the date on which the Participant attains age
fifty-five (55).

          1.17 Scheduled Withdrawal shall mean the distribution elected by the Participant pursuant to
Article 7 of the Plan.

          1.18 Settlement Date shall mean the date by which a lump sum payment shall be made or the date
by which installment payments shall commence. Unless otherwise specified, the Settlement Date
shall be no later than ninety (90) days following the occurrence of the event triggering the payout
unless the Participant elects to defer the Settlement date, at the time and in a form specified by
the Administrator, until the last day of January of the Plan Year following the year in which the
event triggering the payout occurs. In the case of death, the event triggering payout shall be
deemed to occur upon the date the Administrator is provided with the documentation reasonably
necessary to establish the fact of the Participant’s death. Notwithstanding the foregoing, with
respect to any Participant who is a Specified Employee, the Settlement Date shall be a date which
is no less than six (6) months from the Participant’s Termination of Employment.

          1.19 Specified Employee shall mean a Participant who is a “Key Employee” as defined pursuant
to Internal Revenue Code Section 416.

          1.20 Statutory Limitations shall mean any statutory or regulatory limitations imposed by one
or more of Sections 401(a)(17), 401(k), 401(m), 402(g), 403(b), 408(k) or 415 or any other
limitation on contributions or benefits in the Internal Revenue Code The impact of such limits on
the Participant for purposes of this Plan shall be determined by the Administrator based upon
reasonable estimates and shall be final and binding as of the date the Company Contribution is
credited to the Participant’s Account. No subsequent adjustments shall be made to increase Company
Contribution under this Plan as a result of any adjustments ultimately required under the Qualified
Plans due to actual employee contributions or other factors.

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          1.21 Termination of Employment shall mean the date of the cessation of the Participant’s
employment with the Company for any reason whatsoever, whether voluntary or involuntary, including
as a result of the Participant’s Retirement or death, or to the extent provided in Article 6 of the
Plan, Disability.

          1.22 Valuation Date shall mean the date through which earnings are credited and shall, if a
business day, be the date on which the payout or other event triggering the valuation occurs; or if
not a business day, the next succeeding business day.

ARTICLE 2

Participation

     2.1 Elective Deferral. Each Plan Year an Eligible Executive may elect to defer any
whole percentage up to one hundred percent (100%) of Base Salary and/or Bonus earned by the
Eligible Executive during the Plan Year. The Administrator may further limit the minimum or maximum
amount deferred by any Participant or group of Participants, or waive the foregoing limits for any
Participant or group of Participants, for any reason. If a Participant ceases to meet the
eligibility requirements, the Participant shall continue as an inactive Participant in the Plan but
shall no longer be eligible to make further deferrals under the Plan.

     2.2 Company Make-Up Contribution. The Company shall make a Company Make-Up
Contribution to this Plan on behalf of the Participant for each Plan Year in which the Participant
elects deferrals pursuant to Section 2.1 above in an amount equal to difference between the amount
of all contributions the Participant would have received under all qualified retirement plans and
The Sherwin-Williams Company Deferred Compensation Savings and Pension Equalization Plan if the
Participant had not elected to defer Base Salary and/or Bonus pursuant hereto without regard to any
Statutory Limitations and without regard to the applicable dollar limit under Section 402(g)(1) of
the Internal Revenue Code, reduced by the amount of contributions actually credited to the
Participant under the qualified retirement plans and The Sherwin-Williams Company Deferred
Compensation Plan for such Plan Year.

     2.3 Participant Election Form. In order to make a deferral, an Eligible Executive
must submit a Participant Election Form to the Administrator during the enrollment period
established by the Administrator prior to the beginning of the period to which the Base Salary or
Bonus relates or is determined, except that: (i) with respect to the first Plan Year, the
Participant shall submit a Participant Election Form within thirty (30) days of adoption of the
Plan by the Board of Directors of the Company; and (ii) with respect to elections for the deferral
of Bonuses, the Participant shall be permitted to submit a Participant Election Form to the
Administrator during the applicable enrollment period which must occur no later than six (6) months
prior to the end of the period to which the Bonus relates. Any such election shall be effective as
of the first business day of the calendar month immediately following the end of such thirty (30)
day election period. The Administrator may establish a special enrollment period, not to exceed
thirty (30) days, for Eligible Executives hired during a Plan Year to allow deferrals of Base
Salary or Bonus earned during the balance of such Plan Year after such enrollment period. The
Participant shall be required to submit a new Participant Election Form each year in order to make
additional deferrals in such subsequent Plan Years. . An Election Form to change deferral
elections shall be considered timely if submitted during a period prescribed by the Administrator
and, in the case of a change to the timing or form of distribution, such Election Form must be
submitted at least twelve (12) months prior to the intended effective date of such change, and the
change in the distribution date must defer payment for at least an additional five (5) years.
The election to defer Base Salary or Bonus shall be irrevocable except as provided in
Article 6 in the event of Disability or Article 7 in the case of a Financial Hardship.

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ARTICLE 3

Accounts

     3.1 Participant Accounts. Solely for recordkeeping purposes, separate Accounts shall
be maintained for each Participant. One Retirement Account and Scheduled Withdrawal Accounts, in
a number appropriate to the Participant’s elections to make Scheduled Withdrawals, shall be
maintained for the Participant and credited with the Participant’s deferrals directed by the
Participant to each Account at the time such amounts would otherwise have been paid to the
Participant. Accounts shall be deemed to be credited with notional gains or losses as provided in
Section 3.2 from the date amounts are credited to the Account through the Valuation Date. Amounts
credited to a Participant’s Account shall be fully vested at all times.

     3.2 Crediting Rate. The Crediting Rate on amounts in a Participant’s Account shall be
based on the Participant’s choice among the investment alternatives made available from time to
time by the Administrator. The Administrator shall establish a procedure by which a Participant
may elect to have the Crediting Rate based on one or more investment alternatives and by which the
Participant may change investment elections at least quarterly. The Participant’s Account balance
shall reflect the investments selected by the Participant. If an investment selected by a
Participant sustains a loss, the Participant’s Account shall be reduced to reflect such loss. The
Participant’s choice among investments shall be solely for purposes of calculation of the Crediting
Rate. If the Participant fails to elect an investment alternative the Crediting Rate shall be
based on the investment alternative selected for this purpose by the Administrator. The Company
shall have no obligation to set aside or invest funds as directed by the Participant and, if the
Company elects to invest funds as directed by the Participant, the Participant shall have no more
right to such investments than any other unsecured general creditor of the Company. During payout,
the Participant’s Account shall continue to be credited at the Crediting Rate selected by the
Participant from among the investment alternatives or rates made available by the Administrator for
such purpose. Installment payments shall be recalculated annually by dividing the account balance
by the number of payments remaining without regard to anticipated earnings or in any other
reasonable manner as may be determined from time to time by the Administrator.

     3.3 Statement of Accounts. The Administrator shall provide each Participant with
statements at least annually setting forth the Participant’s Account balance as of the end of each
Plan Year.

ARTICLE 4

Benefits

     4.1 Retirement Benefits. In the event of the Participant’s Retirement, the
Participant shall be entitled to receive an amount equal to the total balance of the Participant’s
Accounts credited with notional earnings as provided in Article 3 through the Valuation Date. The
benefits shall be paid in a single lump sum on the Settlement Date following Retirement unless the
Participant makes a timely election to have the benefits paid in substantially level annual
installments over a specified period of not more than fifteen (15) years. Payments shall begin on
the Settlement Date following Retirement. An Election Form to change the form of benefit
payout shall be considered timely if submitted during a period prescribed by the Administrator,
which period cannot be less than twelve (12) months prior to the intended effective date of such
change. Any change in the distribution date must defer payment for at least an additional five (5)
years.

     4.2 Termination Benefit. Upon Termination of Employment other than by reason
of Retirement or death, the Company shall pay to the Participant a termination benefit equal to the
balance on Termination of Employment of the Participant’s Accounts credited with notional earnings
as provided in Article 3 through the

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Valuation Date. The termination benefits shall be paid in a single lump sum on the Settlement
Date following Termination of Employment.

     4.3 Small Benefit Exception. Notwithstanding the foregoing, in the event the sum of
all benefits payable to the Participant hereunder is less than or equal to Twenty Five Thousand and
00/100 Dollars ($25,000.00), the Company may, in its sole discretion, elect to pay such benefits in
a single lump sum payable as soon as administratively practicable following the event triggering
payout.

ARTICLE 5

Death Benefits

     5.1 Survivor Benefit Before Benefits Commence. If the Participant dies prior to
commencement of benefits under Article 4, the Company shall pay to the Participant’s Beneficiary a
death benefit equal to the total balance of the Participant’s Account as of the date of the
Participant’s death credited with notional earnings as provided in Article 3 through the Valuation
Date. The death benefit shall be paid in the same form elected for the Retirement benefit under
Section 4.1 and shall commence on the Settlement Date. However, the Administrator may, in its
complete discretion, agree to an alternative form of payment if requested by the Beneficiary prior
to the Settlement Date.

     5.2 Survivor Benefit After Benefits Commence. If the Participant dies after benefits
have commenced under Article 4, the Company shall pay to the Participant’s Beneficiary an amount
equal to the remaining benefits payable to the Participant under the Plan over the same period such
benefits would have been paid to the Participant. However, the Administrator may, in its complete
discretion, agree to an alternative form of payment if requested by the Beneficiary prior to the
Settlement Date upon which the first payment to the Beneficiary is to be made following the
Participants death.

     5.3 Small Benefit Exception. Notwithstanding the foregoing, in the event the sum of
all benefits payable to a Beneficiary is less than or equal to Twenty Five Thousand and 00/100
Dollars ($25,000.00), the Company may, in its sole discretion, elect to pay such benefits in a
single lump sum payable as soon as administratively practicable following the event triggering
payout.

ARTICLE 6

Disability

In the event of Disability, deferral elections shall cease and for purposes of calculating benefits
under the Plan, Disability shall be treated as a Retirement entitling the Participant to receive
the benefits provided under Article 4.1 of the Plan. The Disability benefits shall commence on the
Settlement Date following Termination of Employment by reason of Disability.

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ARTICLE 7

Scheduled Withdrawal

     7.1 Election. The Participant may make an irrevocable election on the Participant
Election Form at the time of making a deferral to take a Scheduled Withdrawal from the Account
established by the Participant for such purpose, including any earnings credited thereon. The
Participant may elect to receive the Scheduled Withdrawal in any Plan Year on or after the fourth
Plan Year following the enrollment period in which such Scheduled Withdrawal is elected. The
Participant may irrevocably elect to make additional deferrals into such Scheduled Withdrawal
Account in subsequent Participant Election Forms but may not elect another Scheduled Withdrawal
date for such Account until all of the amounts in the original Scheduled Withdrawal Account have
been paid out.

     7.2 Maximum Scheduled Withdrawal. The Participant shall be entitled to elect a
Scheduled Withdrawal of up to one hundred percent (100%) of the amount of the relevant deferral
credited with notional interest as provided in Article 3 through the Valuation Date.

     7.3 Timing of Scheduled Withdrawal. The Scheduled Withdrawal shall be paid by the
Company to the Participant in a single lump sum no later than the last day of January of the Plan
Year elected by the Participant in the Participant Election Form unless preceded by Termination of
Employment. In the event of Termination of Employment prior to the date elected for the Scheduled
Withdrawal, the Scheduled Withdrawal shall be paid in the form provided in Article 4 of the Plan.
In the event such Termination of Employment is as a result of the Participant’s death, the
Scheduled Withdrawal shall be paid as provided in Section 5.1 of the Plan.

ARTICLE 8

Financial Hardship Distribution

Upon a finding that the Participant (or, after the Participant’s death, a Beneficiary) has suffered
a Financial Hardship, the Administrator may in its sole discretion, accelerate distributions of
benefits, in whole or in part, or approve reduction or cessation of current deferrals under the
Plan in the amount reasonably necessary to alleviate such Financial Hardship.

ARTICLE 9

Amendment and Termination of Plan

The Company may, at any time, amend or terminate the Plan, except that no such amendment or
termination may reduce a Participant’s Account balance. If the Company terminates the Plan, the
date of such termination shall be treated as a Termination of Employment for the purpose of
calculating Plan benefits and the Company shall pay to each Participant the benefits such
Participant would be entitled to receive under Article 4 of the Plan except that such termination
benefits shall be paid in a single lump sum payable as soon as practicable following the date on
which termination of the Plan occurs.

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ARTICLE 10

Beneficiaries

     10.1 Beneficiary Designation. The Participant shall have the right, at any time, to
designate any person or persons as Beneficiary (both primary and contingent) to whom payment under
the Plan shall be made in the event of the Participant’s death. The Beneficiary designation shall
be effective when it is submitted in writing to and acknowledged by the Administrator during the
Participant’s lifetime on a form prescribed by the Administrator.

     10.2 Revision of Designation. The submission of a new Beneficiary designation shall
cancel all prior Beneficiary designations. Any finalized divorce or marriage (other than a common
law marriage) of a Participant subsequent to the date of a Beneficiary designation shall revoke
such designation, unless in the case of divorce the previous spouse was not designated as
Beneficiary and unless in the case of marriage the Participant’s new spouse has previously been
designated as Beneficiary.

     10.3 Successor Beneficiary. If the primary Beneficiary dies prior to complete
distribution of the benefits provided in Article 5, the remaining Account balance shall be paid to
the contingent Beneficiary elected by the Participant in the form of a lump sum payable no later
than the last day of the month following the month in which the primary Beneficiary’s death is
established.

     10.4 Absence of Valid Designation. If a Participant fails to designate a Beneficiary
as provided above, or if the Beneficiary designation is revoked by marriage, divorce, or otherwise
without execution of a new designation, or if every person designated as Beneficiary predeceases
the Participant or dies prior to complete distribution of the Participant’s benefits, then the
Administrator shall direct the distribution of such benefits to the relevant estate.

ARTICLE 11

Administration/Claims Procedures

     11.1 Administration. The Plan shall be administered by the Administrator, which shall
have the exclusive right and full discretion (i) to interpret the Plan, (ii) to decide any and all
matters arising hereunder (including the right to remedy possible ambiguities, inconsistencies, or
admissions), (iii) to make, amend and rescind such rules as it deems necessary for the proper
administration of the Plan and (iv) to make all other determinations necessary or advisable for the
administration of the Plan, including determinations regarding eligibility for benefits payable
under the Plan. All interpretations of the Administrator with respect to any matter hereunder
shall be final, conclusive and binding on all persons affected thereby. No member of the
Administrator shall be liable for any determination, decision, or action made in good faith with
respect to the Plan. The Company will indemnify and hold harmless the members of the Administrator
from and against any and all liabilities, costs, and expenses incurred by such persons as a result
of any act, or omission, in connection with the performance of such persons’ duties,
responsibilities, and obligations under the Plan, other than such liabilities, costs, and expenses
as may result from the bad faith, willful misconduct, or criminal acts of such persons.

     11.2 Claims Procedure. Any Participant, former Participant or Beneficiary may file a
written claim with the Administrator setting forth the nature of the benefit claimed, the amount
thereof, and the basis for claiming entitlement to such benefit. The Administrator shall determine
the validity of the claim and communicate a decision to the claimant promptly and, in any event,
not later than ninety (90) days after the date of the claim. The claim may be deemed by the
claimant to have been denied for purposes of further review described below in the event a decision
is not furnished to the claimant within such ninety (90) day period. If additional information is
necessary to make a determination on a claim, the claimant shall be advised of the need

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for such additional information within forty-five (45) days after the date of the claim. The
claimant shall have up to one hundred and eighty (180) days to supplement the claim information,
and the claimant shall be advised of the decision on the claim within forty-five (45) days after
the earlier of the date the supplemental information is supplied or the end of the one hundred and
eighty (180) day period. Every claim for benefits which is denied shall be denied by written
notice setting forth in a manner calculated to be understood by the claimant (i) the specific
reason or reasons for the denial, (ii) specific reference to any provisions of the Plan (including
any internal rules, guidelines, protocols, criteria, etc.) on which the denial is based, (iii)
description of any additional material or information that is necessary to process the claim, and
(iv) an explanation of the procedure for further reviewing the denial of the claim.

     11.3 Review Procedures. Within sixty (60) days after the receipt of a denial on a
claim, a claimant or his/her authorized representative may file a written request for review of
such denial. Such review shall be undertaken by the Administrator and shall be a full and fair
review. The claimant shall have the right to review all pertinent documents. The Administrator
shall issue a decision not later than sixty (60) days after receipt of a request for review from a
claimant unless special circumstances, such as the need to hold a hearing, require a longer period
of time, in which case a decision shall be rendered as soon as possible but not later than one
hundred and twenty (120) days after receipt of the claimant’s request for review. The decision on
review shall be in writing and shall include specific reasons for the decision written in a manner
calculated to be understood by the claimant with specific reference to any provisions of the Plan
on which the decision is based .

ARTICLE 12

Change of Control

In the event of a Change of Control, the amounts to which Participants are entitled under this Plan
shall be immediately distributed in a lump sum cash payment to Participants. For purposes of this
Plan, a Change of Control shall be deemed to have occurred if:

	 	(i)	 	Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange
Act) who or that, together with all Affiliates and Associates of such person, is the
Beneficial Owner of ten percent (10%) or more of the shares of Common Stock of the
Company then outstanding, except :

	 	(A)	 	the Company;
	 
	 	(B)	 	any of the Company’s subsidiaries in which a majority of the
voting power of the equity securities or equity interests of such subsidiary is
owned, directly or indirectly, by the Company;
	 
	 	(C)	 	any employee benefit or stock ownership plan of the Company or
any trustee or fiduciary with respect to such a plan acting in such capacity; or
	 
	 	(D)	 	any such person who has reported or may, pursuant to Rule
13d-1(b)(1) of the General Rules and Regulations under the Exchange Act, report
such ownership (but only as long as such person is the Beneficial Owner of less
than fifteen percent (15%) of the shares of Common Stock then outstanding) on
Schedule 13G (or any comparable or successor report) under the Exchange Act.

Notwithstanding the foregoing: (1) no person shall become the Beneficial Owner of
ten percent (10%) or more (fifteen percent (15%) or more in the case of any person
identified in clause (D) above) solely as the result of an acquisition of Common
Stock by the Company that, by reducing the number of shares outstanding, increases
the proportionate number of shares beneficially owned by such person to ten percent
(10%) or more (fifteen percent (15%) or more in the case of any person identified in
clause (D) above) of the shares of Common Stock then outstanding; provided, however,
that if a person becomes the Beneficial Owner of ten percent (10%) or more (fifteen
percent (15%) or more in the case of any person identified in clause (D) above) of
the shares of Common Stock solely by reason of purchases of Common Stock by the
Company and shall, after such purchases by the Company, become the Beneficial Owner
of any additional

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shares of Common Stock which has the effect of increasing such person’s percentage
ownership of the then-outstanding shares of Common Stock by any means whatsoever,
then such person shall be deemed to have triggered a Change of Control; and (2) if
the Board of Directors determines that a person who would otherwise be the Beneficial
Owner of ten percent (10%) or more (fifteen percent (15%) or more in the case of any
person identified in clause (D) above) of the shares of Common Stock has become such
inadvertently (including, without limitation, because (i) such person was unaware
that it Beneficially Owned ten percent (10%) or more (fifteen percent (15%) or more
in the case of any person identified in clause (D) above) of the shares of Common
Stock or (ii) such person was aware of the extent of such beneficial ownership but
such person acquired beneficial ownership of such shares of Common Stock without the
intention to change or influence the control of the Company) and such person divests
itself as promptly as practicable of a sufficient number of shares of Common Stock so
that such person would no longer be the Beneficial Owner of ten percent (10%) or more
(fifteen percent (15%) or more in the case of any person identified in clause (D)
above), then such person shall not be deemed to be, or have been, the Beneficial
Owner of ten percent (10%) or more (fifteen percent (15%) or more in the case of any
person identified in clause (D) above) of the shares of Common Stock, and no Change
of Control shall be deemed to have occurred.

	 	(ii)	 	During any period of two consecutive years, individuals who at the beginning of
such period constituted the Board of Directors of the Company and any new director
(other than a director initially elected or nominated as a director as a result of an
actual or threatened election contest with respect to directors or any other actual or
threatened solicitation of proxies by or on behalf of such director) whose election by
the Board of Directors or nomination for election by the Company’s shareholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in office
who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to constitute
a majority thereof.
	 
	 	(iii)	 	There shall be consummated any consolidation, merger or other combination of
the Company with any other person or entity other than:

	 	(A)	 	a consolidation, merger or other combination which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than fifty-one percent
(51%) of the combined voting power of the voting securities of the Company or
such surviving entity outstanding immediately after such consolidation, merger
or other combination; or
	 
	 	(B)	 	a consolidation, merger or other combination effected to
implement a recapitalization and/or reorganization of the Company (or similar
transaction), or any other consolidation, merger or other combination of the
Company, which results in no person (as such term is used in Sections 13(d) and
14(d)(2) of the Exchange Act), together with all Affiliates and Associates of
such person, becoming the Beneficial Owner of ten percent (10%) or more (fifteen
percent (15%) or more in the case of any person identified in Section
1(c)(i)(D)) of the combined voting power of the Company’s then outstanding
securities.

	 	(iv)	 	There shall be consummated any sale, lease, assignment, exchange, transfer or
other disposition (in one transaction or a series of related transactions) of fifty
percent (50%) or more of the assets or earning power of the Company (including, without
limitation, any such sale, lease, assignment, exchange, transfer or other disposition
effected to implement a recapitalization and/or reorganization of the Company (or
similar transaction)) which results in any person (as such term is used in Sections
13(d) and 14(d)(2) of the Exchange Act), together with all Affiliates and Associates of
such person, owning a proportionate share of such assets or earning power greater than
the proportionate share of the voting power of the Company that such person, together
with

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	 	 	 	all Affiliates and Associates of such person, owned immediately prior to any such
sale, lease, assignment, exchange, transfer or other disposition.

	 	(v)	 	The shareholders of the Company approve a plan of complete liquidation of the
Company.

For purposes of this Article 13, a person (as such term is used in Sections
13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended, hereinafter “Exchange
Act”) shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own”
any securities:

	 	(i)	 	which such person or any of such person’s “Affiliates” or “Associates” (as such
terms are defined in Rule 12b-2, as in effect on April 23, 1997, of the General Rules
and under the Exchange Act) is considered to be a “beneficial owner” under Rule 13d-3
of the General Rules and Regulations under the Exchange Act, as in effect on April 23,
1997;
	 
	 	(ii)	 	which such person or any of such person’s Affiliates or Associates, directly or
indirectly, has or shares the right to acquire, hold, vote (except pursuant to a
revocable proxy as described in the proviso to this Section 1(b)) or dispose of such
securities (whether any such right is exercisable immediately or only after the passage
of time) pursuant to any agreement, arrangement or understanding (whether or not in
writing), or upon the exercise of conversion rights, exchange rights, rights, warrants
or options, or otherwise; provided, however, that a person shall not be deemed to be
the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a
tender or exchange offer made by or on behalf of such person or any of such person’s
Affiliates or Associates until such tendered securities are accepted for purchase or
exchange; or
	 
	 	(iii)	 	which are beneficially owned, directly or indirectly, by any other person (or
any Affiliate or Associate of such other person) with which such person (or any of such
person’s Affiliates or Associates) has any agreement, arrangement or understanding
(whether or not in writing), with respect to acquiring, holding, voting (except as
described in the proviso to this Section 1(b)) or disposing of any securities of the
Company;

provided, however, that a person shall not be deemed the Beneficial Owner of, nor to
beneficially own, any security if such person has the right to vote such security pursuant
to an agreement, arrangement or understanding which (I) arises solely from a revocable proxy
given to such person in response to a public proxy or consent solicitation made pursuant to,
and in accordance with, the applicable rules and regulations under the Exchange Act, and
(II) is not also then reportable on Schedule 13D (or any comparable or successor report)
under the Exchange Act; and provided, further, that nothing in this Section 1(b) shall cause
a person engaged in business as an underwriter of securities to be the Beneficial Owner of,
or to beneficially own, any securities acquired through such person’s participation in good
faith in a firm commitment underwriting until the expiration of forty (40) days after the
date of such acquisition or such later date as the Board of Directors may determine in any
specific case.

ARTICLE 13

Conditions Related to Benefits

     13.1 Nonassignability. No amount payable to a Participant or Beneficiary under the
Plan will be subject in any manner to anticipation, alienation, attachment, garnishment, sale,
transfer, assignment (either at law or in equity), levy, execution, pledge, encumbrance, charge or
any other legal or equitable process by a Participant or Beneficiary, an any attempt to do so will
be void; nor will any benefit be in any manner liable for or subject to the debts, contracts,
liabilities, engagements or torts of the person entitled thereto. However, (i) the withholding of
taxes from Plan benefit payments, (ii) the recovery by the Plan of overpayment of benefits
previously made to a Participant, or (iii) the direct deposit of benefit payments to an account in
a banking institution (if not actually part of an arrangement constituting an assignment or
alienation) shall not be construed as an assignment or alienation.

     13.2 No Right to Company Assets. The benefits paid under the Plan shall be paid from
the general funds of the Company, and the Participant and any Beneficiary shall be no more than
unsecured general creditors

10

 

of the Company with no special or prior right to any assets of the Company for payment of any
obligations hereunder and the Plan constitutes a mere promise by the Company to make benefit
payments in the future.

     13.3 Protective Provisions. The Participant shall cooperate with the Company by
furnishing any and all information requested by the Administrator, in order to facilitate the
payment of benefits hereunder, and taking such other actions as may be requested by the
Administrator. If the Participant refuses to so cooperate, the Company shall have no further
obligation to the Participant under the Plan.

     13.4 Section 16b Eligible Executives. In the event any Eligible Executive subject to
Rule 16b issued under the Securities Exchange Act of 1934 (or any successor rule to the same
effect) has, at any time, a Crediting Rate based upon an investment alternative consisting of or
the value of which is determined based upon the value of the Company’s common stock or any security
into which such common stock may be changed by reason of: (a) any stock dividend, stock split,
combination of shares, recapitalization or other change in the capital structure of the Company;
(b) any merger, consolidation, separation, reorganization or partial or complete liquidation; or
(c) any other corporate transaction or event having an effect similar to the foregoing, unless the
transaction is otherwise exempt under Rule 16b-3, no transaction with respect to the portion of the
Participant’s Account attributable to such investment alternative shall be permitted pursuant to
this Plan until a date which is not less than six (6) months and one (1) day from the date on which
the investment alternative was selected or transferred within the Participant’s Account.

     13.5 Withholding. The Participant shall make appropriate arrangements with the
Company for satisfaction of any federal, state or local income tax withholding requirements and
Social Security, Medicare or other employee tax requirements applicable to the payment of benefits
under the Plan. If the Participant elects to defer one hundred percent (100%) of Base Salary, such
deferral shall be net of the amount of any Social Security taxes payable by the Participant as a
result of compensation received from the Company for such Plan Year. If no other arrangements are
made, the Company may provide, at its discretion, for such withholding and tax payments as may be
required, including, without limitation, by the reduction of other amounts payable to the
Participant.

     13.6 Assumptions and Methodology. The Administrator shall establish the actuarial
assumptions and method of calculation used in determining the present or future value of benefits,
earnings, payments, fees, expenses or any other amounts required to be calculated under the terms
of the Plan. The Administrator shall also establish reasonable procedures regarding the form and
timing of installment payments. Such assumptions and methodology shall be outlined in detail in
procedures established by the Administrator and made available to Participants and may be changed
from time to time by the Administrator.

     13.7 Trust. The Company shall be responsible for the payment of all benefits under
the Plan. At its discretion, the Company may establish one or more grantor trusts for the purpose
of providing for payment of benefits under the Plan. Such trust or trusts may be irrevocable, but
the assets thereof shall be subject to the claims of the Company’s creditors. Benefits paid to the
Participant from any such trust or trusts shall be considered paid by the Company for purposes of
meeting the obligations of the Company under the Plan. Neither the establishment of the Plan or
Trust or any modification thereof, or the creation of any fund or account, or the payment of any
benefits shall be construed as giving to any Participant or other person any legal or equitable
right against the Company or any officer or employee thereof, except as provided by law or by any
Plan provision. The amounts in the Accounts shall remain the sole property of the Company unless
and until required to be distributed in accordance with the provisions of the Plan, and shall not
constitute a trust or be deemed to be held in trust for the benefit of any Participant or
Beneficiary hereunder or their personal representative. The Company does not in any way guarantee
the trust or any Participant’s benefit from loss or depreciation. In no event shall the Company’s
employees, officers, directors or stockholders be liable to any person on account of any claim
arising by reason of the provisions of the Plan or of any instrument or instruments implementing
its provisions, or for the failure of any Participant, Beneficiary or other person to be entitled
to any particular tax consequences with respect to the Plan, the trust(s) or any contribution
thereto or distribution therefrom

11

 

ARTICLE 14

Miscellaneous

     14.1 Successors of the Company. The rights and obligations of the Company under the
Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of the
Company.

     14.2 Employment Not Guaranteed. Nothing contained in the Plan nor any action taken
hereunder shall be construed as a contract of employment or as giving any Participant any right to
continued employment with the Company.

     14.3 Gender, Singular and Plural. All pronouns and any variations thereof shall be
deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may
require. As the context may require, the singular may be read as the plural and the plural as the
singular.

     14.4 Captions. The captions of the articles, paragraphs and sections of the Plan are
for convenience only and shall not control or affect the meaning or construction of any of its
provisions.

     14.5 Validity. In the event any provision of the Plan is held invalid, void or
unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other
provisions of the Plan.

     14.6 Waiver of Breach. The waiver by the Company of any breach of any provision of
the Plan shall not operate or be construed as a waiver of any subsequent breach by that Participant
or any other Participant.

     14.7 Notice. Any notice or filing required or permitted to be given to the Company or
the Participant under this Agreement shall be sufficient if in writing and hand-delivered, or sent
by first class mail, in the case of the Company, to the principal office of the Company, directed
to the attention of the Administrator, and in the case of the Participant, to the last known
address of the Participant indicated on the employment records of the Company. Such notice shall
be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on
the postmark on the receipt for registration or certification. Notices to the Company may be
permitted by electronic communication according to specifications established by the Administrator.

     14.8 Errors in Benefit Statement or Distributions. In the event an error is made in a
benefit statement, such error shall be corrected on the next benefit statement following the date
such error is discovered. In the event of an error in a distribution, the Participant’s Account
shall, immediately upon the discovery of such error, be adjusted to reflect such under or over
payment and, if possible, the next distribution shall be adjusted upward or downward to correct
such prior error. If the remaining balance of a Participant’s Account is insufficient to cover an
erroneous overpayment, the Company may, at its discretion, offset other amounts payable to the
Participant from the Company (including but not limited to salary, bonuses, expense reimbursements,
severance benefits or other employee compensation benefit arrangements, as allowed by law) to
recoup the amount of such overpayment(s).

     14.9 ERISA Plan. The Plan is intended to be an unfunded plan maintained primarily to
provide deferred compensation benefits for a select group of “management or highly compensated
employees” within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from
Parts 2, 3 and 4 of Title I of ERISA.

     14.10 Applicable Law. In the event any provision of, or legal issue relating to, this
Plan is not fully preempted by ERISA, such issue or provision shall be governed by the laws of the
State of Ohio.

     14.11 Effect of Legislative or Regulatory Changes. Notwithstanding anything in this
Plan to the contrary, in the event of the enactment of any legislation or regulations which, in the
sole discretion of the

12

 

Company, have an unfavorable impact on the Company and/or Participants, the Company shall have
the unilateral right to amend the Plan in whatever manner it deems appropriate to mitigate the
effects of such legislation or regulations, without the necessity of obtaining further Board
approval.

     14.12 Effect of IRS Determination. Notwithstanding anything in this Plan to the
contrary, in the event the Internal Revenue Service rules unfavorably as to the tax consequences of
deferrals made under this Plan for any Plan Year, the Board may take any such action as it deems
necessary or appropriate, including action to restore Participants to substantially the same
position they would have enjoyed had this Plan not been effective for such Plan Year.

      
                IN WITNESS WHEREOF, the Company has caused this Plan to be executed this 20th day of July,
2005.

	 	 	 	 	 
	 	 	THE SHERWIN-WILLIAMS COMPANY
	 
	 	 	 	 
	 

	 	By
	 	/s/
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its	 	 
	 

	 	 	 	 

13Exhibit 10(G)

 

EXHIBIT 10(g)

THE SHERWIN-WILLIAMS COMPANY 2005

DIRECTOR DEFERRED FEE PLAN

	1.	 	PURPOSE. The purpose of The Sherwin-Williams Company 2005 Director Deferred Fee Plan
(the “Plan”) is to provide non-employee Directors of the Company with the opportunity to defer
taxation of all or a portion of such Director’s Board Retainer and/or Meeting Fees and to help
build loyalty to the Company through increased opportunity to invest in Company Common Stock,
all in compliance with the requirements of The American Jobs Creation Act of 2004.
	 
	2.	 	DEFINITIONS. The following terms when used herein with initial capital letters shall
have the following respective meanings unless the text clearly indicates otherwise:

	 	(a)	 	Administration Committee. “Administration Committee” means the
committee provided for in paragraph 11.
	 
	 	(b)	 	Board of Directors. “Board of Directors” means the Board of Directors
of the Company.
	 
	 	(c)	 	Board Retainer. “Board Retainer” means the compensation payable
monthly to Directors.
	 
	 	(d)	 	Common Stock. “Common Stock” means the common stock of the Company or
any security into which such Common Stock may be changed by reason of: (i) any stock
dividend, stock split, combination of shares, recapitalization or other change in the
capital structure of the Company, (ii) any merger, consolidation, separation,
reorganization or partial or complete liquidation, or (iii) any other corporate
transaction or event having an effect similar to any of the foregoing.
	 
	 	(e)	 	Common Stock Account. “Common Stock Account” means the bookkeeping
account established and maintained under this Plan which is credited with Common Stock
in accordance with paragraph 5(b).
	 
	 	(f)	 	Company. “Company” means The Sherwin-Williams Company, an Ohio
corporation or its successor(s) in interest.
	 
	 	(g)	 	Deferred Cash Account. “Deferred Cash Account” means the bookkeeping
account established and maintained under this Plan which is valued in accordance with
paragraph 5(a).
	 
	 	(h)	 	Deferred Compensation. “Deferred Compensation” means the amount of the
Board Retainer and/or Meeting Fee of the Participant deferred pursuant to this Plan.
	 
	 	(i)	 	Director. “Director” means a member of the Board of Directors.
	 
	 	(j)	 	Eligible Director. “Eligible Director” means a Director who is not an
employee of the Company or a Subsidiary.
	 
	 	(k)	 	Fair Market Value. “Fair Market Value” of Common Stock means: (i) with
respect to Deferred Compensation deferred prior to April 23, 1997, the closing price of
Common Stock as reported on the New York Stock Exchange Composite Tape on the
applicable date, or, in the event that no sales take place on such day, the closing

1

 

	 	 	 	price of Common Stock as reported on the New York Stock Exchange (or any successor
exchange) Composite Tape on the nearest preceding day on which there were sales of
Common Stock; or (ii) with respect to Deferred Compensation deferred on or after
April 23, 1997, the average between the highest and the lowest quoted selling price
of the Company’s Common Stock on the New York Stock Exchange or any successor
exchange
	 
	 	(l)	 	Fees. “Fees” means the compensation payable to Directors for their
services as a director, including the Board Retainer and Meeting Fee.
	 
	 	(m)	 	Meeting Fee. “Meeting Fee” means the compensation payable at the time
of a meeting to a Director for each meeting of the Board of Directors or committee of
the Board of Directors that such Director attends and/or chairs.
	 
	 	(n)	 	Participant. “Participant” means an Eligible Director who has elected
to participate in the Plan.
	 
	 	(o)	 	Payment Date. “Payment Date” means (i) with respect to the payment of
a Board Retainer, the first business day of each calendar month or (ii) with respect to
the payment of a Meeting Fee, the date on which a meeting of the Board of Directors or
a committee of the Board of Directors was held.
	 
	 	(p)	 	Plan. “Plan” means the plan set forth in this instrument, and known as
“The Sherwin-Williams Company Director Deferred Fee Plan”, as adopted at the meeting of
the Board of Directors held July 20, 2005..
	 
	 	(q)	 	Plan Year. “Plan Year” means the twelve consecutive month period
commencing on April 1 of a year and ending on March 31 of the following year, except
with respect to the initial Plan Year, which shall be a short Plan Year commencing
January 1, 2005 and ending March 31, 2005.
	 
	 	(r)	 	Shadow Stock. “Shadow Stock” means a unit of interest equivalent to a
share of Common Stock.
	 
	 	(s)	 	Shadow Stock Account. “Shadow Stock Account” means the bookkeeping
account established and maintained under this Plan credited with Shadow Stock in
accordance with paragraph 5(c).
	 
	 	(t)	 	Subsidiary. Any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company, if, at the time of the time of
investment in the Common Stock, each of the corporations other than the last
corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of
the total combined voting power of all classes of stock in one of the other
corporations in such chain.
	 
	 	(u)	 	Trust. “Trust” means one or more trust funds established for the purpose
of (i) providing a source from which to pay benefits under the Plan and (ii) purchasing
and holding assets, including shares of Common Stock. Any such trust funds shall be
subject to the claims of the Company’s creditors in the event of the Company’s
insolvency, though such trust funds may not necessarily hold sufficient assets to
satisfy all of the benefits to be provided under the Plan.

2

 

	3.	 	ELIGIBILITY. An Eligible Director shall become a Participant upon satisfaction of
the following: (i) the later of the effective date of the Plan or the date such Director
becomes an Eligible Director; and (ii) completion of an Election (as defined in paragraph 4).
	 
	4.	 	ELECTION PROCEDURE. An Eligible Director wishing to participate in the Plan must
file a written notice on the Notice of Election form, attached as Exhibit A, electing to defer
payment for a Plan Year of all or a portion of his Fees as a Director (“Election”). Such
Election shall be made within thirty (30) days after the date such Director initially becomes
an Eligible Director. Any such Election shall be effective only with respect to Fees earned
after the effective date of the Election. Thereafter, a Director for whom an Election is not
in effect may only elect to participate in the Plan by filing a timely Election on or before
the March 31st of the Plan Year immediately preceding the Plan Year for which the Election is
to become effective. An Election shall not be effective until receipt of the fully and
properly completed Notice of Election form by the Secretary of the Company. A fully and
properly completed Notice of Election form must indicate: (i) the percentage of Fees to be
deferred; (ii) manner of payment upon distribution; (iii) payment commencement date; and (iv)
deemed investment election. Once effective for a Plan Year, an Election is irrevocable and
may not be changed for that Plan Year. No subsequent election may change the manner of
payment, the payment commencement date or the deemed investment of the Fees previously
deferred. An Election shall apply to Fees payable with respect to each subsequent Plan Year,
unless terminated or modified as described herein. An effective Election may be terminated or
modified for any subsequent Plan Year by filing either a new Notice of Election form to effect
modifications, or a Notice of Termination form, attached as Exhibit B, to effect terminations,
on or before the March 31st immediately preceding the Plan Year for which such modification or
termination is to be effective. A person for whom an effective Election is terminated may
thereafter file a new Notice of Election form, in the manner described above, for future Plan
Years for which he is eligible to participate in the Plan.
	 
	5.	 	INVESTMENT ACCOUNTS. The amount of a Participant’s Deferred Compensation
pursuant to an Election shall be deemed credited to the investment options specified in this
paragraph 5 in the manner elected by the Participant. A Participant’s election as to the
investment options in which his Deferred Compensation for a Plan Year shall be deemed to be
invested shall be irrevocable with respect to Deferred Compensation and deemed earnings
thereon, and Deferred Compensation and deemed earnings thereon cannot be transferred between
investment accounts. A Participant may elect to credit no less than twenty-five percent (25%)
of his Deferred Compensation for a Plan Year (the “Minimum Election”) to any particular
investment option. Any amounts in excess of the Minimum Election shall be made in five
percent (5%) increments. If a Participant fails to direct the investment of any Deferred
Compensation, all such Deferred Compensation will be credited to the Participant’s Deferred
Cash Account. A Participant may elect to have his Deferred Compensation deemed to be invested
in one of the following investment accounts:

	 	(a)	 	DEFERRED CASH ACCOUNT. Each Participant’s Deferred Cash Account shall
accrue interest computed using the base lending rate of interest as announced by Key
Bank, Cleveland, Ohio in effect during the immediately preceding calendar quarter.

3

 

	 	 	 	The interest shall be computed on the actual balance in each Participant’s Deferred
Cash Account during the previous calendar quarter.
	 
	 	(b)	 	COMMON STOCK ACCOUNT. The Participant’s Common Stock Account shall be
credited with that quantity of Common Stock equal to the number of full and fractional shares (to the nearest thousandths) which could have been purchased by the Trust with
the portion of Deferred Compensation a Participant has elected to allocate to the
Common Stock Account based on the Fair Market Value of such Common Stock on each
Payment Date. There will be credited to each Participant’s Common Stock Account
amounts equal to the cash dividends, and other distributions, paid on shares of issued
and outstanding Common Stock represented by the Participant’s Common Stock Account
which the Participant would have received had he been a record owner of shares of
Common Stock equal to the amount of Common Stock in his Common Stock Account at the
time of payment of such cash dividends or other distributions. The Participant’s
Common Stock Account shall be credited with a quantity of shares of Common Stock and
fractions thereof (to the nearest thousandths) that could have been purchased with the
dividends or other distributions based on the Fair Market Value of Common Stock on the
date of payment of such dividends or other distributions.
	 
	 	(c)	 	SHADOW STOCK ACCOUNT. The Participant’s Shadow Stock Account shall be
credited with a quantity of Shadow Stock units and fractions thereof (to the nearest
thousandths) equal to the value of Common Stock that could have been purchased with the
portion of the Deferred Compensation credited to the Shadow Stock Account on each
Payment Date based on the Fair Market Value of Common Stock on such Payment Date.
There will be credited to each Participant’s Shadow Stock Account amounts equal to the
cash dividends, and other distributions, paid on shares of issued and outstanding
Common Stock represented by the Participant’s Shadow Stock Account which the
Participant would have received had he been a record owner of a number of shares of
Common Stock equal to the amount of Shadow Stock in his Shadow Stock Account at the
time of payment of such cash dividends or other distributions. The Participant’s
Shadow Stock Account shall be credited with a quantity of Shadow Stock units and
fractions thereof (to the nearest thousandths) that could have been purchased with the
dividends or other distributions based on the Fair Market Value of Common Stock on the
date of payment of such dividends or other distributions.

	6.	 	DEPOSITS TO THE TRUST. The Company shall transfer to the Trust, within sixty
(60) days of the date Fees would otherwise be paid, amounts which a Participant has directed
to be deferred in accordance with the Plan. In addition, as of the first day of each calendar
quarter, the Company shall deposit into the Trust the following cash amounts accrued during
the immediately preceding calendar quarter: (i) all accrued interest on Participants’
Deferred Cash Accounts; (ii) an amount equal to cash dividends and other distributions paid on shares of Common Stock represented by units of Shadow Stock and shares of Common Stock
credited to Participants’ Shadow Stock Accounts and Common Stock Accounts; (iii) an amount
equal to the appreciation in the value of a unit of Shadow Stock multiplied times the

4

 

	 	 	number of units of Shadow Stock credit to Participants’ Shadow Stock Accounts; and (iv) an
amount equal to the appreciation in the value of a share of Common Stock multiplied by the
number of shares of Common Stock credited to Participants’ Common Stock Accounts.
	 
	7.	 	PAYMENT OF DEFERRED COMPENSATION.

	 	(a)	 	Amount of Payment. The benefit that a Participant will receive from
the Company in accordance with the Plan shall be: (i) the number of full shares of
Common Stock credited to the Participant’s Common Stock Account; and (ii) cash equal to
the sum of (I) the amount credited to the Participant’s Deferred Cash Account; (II) the
Fair Market Value of the fractional shares (to the nearest thousandths) of Common Stock
on the date such fractional shares were credited to the Participant’s Common Stock
Account; and (III) the value of the Shadow Stock units and fractions thereof (to the
nearest thousandths) credited to the Participant’s Shadow Stock Account. The value of
a Participant’s Deferred Cash Account, fractional shares of Common Stock and Shadow
Stock Account shall be determined by the Company as of the end of the calendar quarter
immediately preceding the calendar quarter in which a Participant is entitled to a
distribution hereunder in accordance with paragraph 7(c) below. Notwithstanding the
preceding sentence to the contrary, in the event of a Change of Control or termination
of the Plan as provided in paragraphs 9 and 13, respectively, the value of a
Participant’s Deferred Cash Account, Shadow Stock Account and Common Stock Account
shall be determined by the Company immediately following such an event.
	 
	 	(b)	 	Manner of Payment. A Participant’s Deferred Compensation for a Plan
Year, as adjusted for deemed earnings or losses thereon, will be paid by the Company to
him or, in the event of his death, to the Participant’s beneficiary, in kind, in a lump
sum unless the Participant makes a timely election to have the
benefits paid in
substantially equal annual cash installments over a period not exceeding ten (10)
years. Notwithstanding the foregoing, a Participant’s Deferred Compensation invested
in the Common Stock Account shall only be distributed to the Participant in kind in a
lump sum. Upon the commencement of installment payments hereunder, if so elected, the
value (as determined under paragraph 7(a) above) of the Participant’s Shadow Stock
Account shall be transferred to his Deferred Cash Account and the Participant’s Shadow
Stock Account shall be eliminated. Amounts credited to a Participant’s Deferred Cash
Account held pending distribution pursuant to this paragraph shall continue to be
credited with interest in accordance with the provisions of paragraph 5(a) above.
	 
	 	(c)	 	Payment Commencement Date. Payments of Deferred Compensation and
earnings thereon shall commence within two (2) business days following the first
business day of the first calendar quarter beginning after the earlier of the date the
Participant elects to receive payment or ceases to be a Director. Notwithstanding a
Participant’s manner of payment election hereunder, if a Participant dies before
payments have begun under the Plan, the Company shall pay to the Participant’s
beneficiary or beneficiaries a lump sum on the first business day of the first calendar
quarter beginning after the Participant’s death. If a Participant dies while payments
are being

5

 

	 	 	 	made under the Plan, the Company shall continue to pay installments to the
Participant’s beneficiary or beneficiaries in accordance with the payment method
elected by the Participant prior to his death.
	 
	 	(d)	 	Acceleration of Payment. In the event a Participant has elected to
receive distribution from the plan in the form of installment payments, the
Administration Committee may, nonetheless, upon request of the Participant, in its sole
discretion, accelerate payment of all or any portion of the Participant’s remaining
account under the Plan, if the Administration Committee determines that the Participant
has experienced an unanticipated financial emergency beyond the control of the
Participant that would result in severe financial hardship to the Participant and the
amount of the payment is the amount necessary to alleviate the hardship.

	8.	 	BENEFICIARIES. A Participant may, by executing and delivering to the Secretary of
the Company prior to the Participant’s death a Beneficiary Election form attached hereto as
Exhibit C, designate a beneficiary or beneficiaries to whom distribution of his interest under
this Plan shall be made in the event of his death prior to the full receipt of his interest
under this Plan, and he may designate the portions to be distributed to each such designated
beneficiary if there is more than one. Any such designation may be revoked or changed by the
Participant at any time and from time to time by filing, prior to the Participant’s death,
with the Secretary of the Company an executed Beneficiary Election form. If there is no such
designated beneficiary living upon the death of the Participant, or if all such designated
beneficiaries die prior to the full distribution of the Participant’s interest, then any
remaining unpaid amounts shall be paid in a cash lump sum to the estate of the Participant or
Participant’s beneficiaries.
	 
	9.	 	CHANGE OF CONTROL. In the event of a Change of Control, the amounts held in the
Trust shall be immediately distributed in a cash lump sum to Participants. Any and all
remaining benefits shall be immediately paid by the Company in a cash lump sum to
Participants. For purposes of this Plan, a “Change of Control” shall be deemed to have
occurred if:

	 	(i)	 	Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange
Act) who or that, together with all Affiliates and Associates of such person, is the
Beneficial Owner of ten percent (10%) or more of the shares of Common Stock of the
Company then outstanding, except :

	 	(A)	 	the Company;
	 
	 	(B)	 	any of the Company’s subsidiaries in which a majority of the
voting power of the equity securities or equity interests of such subsidiary is
owned, directly or indirectly, by the Company;
	 
	 	(C)	 	any employee benefit or stock ownership plan of the Company or
any trustee or fiduciary with respect to such a plan acting in such capacity;
or
	 
	 	(D)	 	any such person who has reported or may, pursuant to Rule
13d-1(b)(1) of the General Rules and Regulations under the Exchange Act,
report such ownership (but only as long as such person is the Beneficial Owner
of less than fifteen percent (15%) of the shares of Common Stock then
outstanding)

6

 

	 	 	 	on Schedule 13G (or any comparable or successor report) under the Exchange
Act.

	 	 	 	Notwithstanding the foregoing, (I) no person shall become the Beneficial
Owner of ten percent (10%) or more (fifteen percent (15%) or more in the case of any
person identified in clause (D) above) solely as the result of an acquisition of
Common Stock by the Company that, by reducing the number of shares outstanding,
increases the proportionate number of shares beneficially owned by such person to
ten percent (10%) or more (fifteen percent (15%) or more in the case of any person
identified in clause (D) above) of the shares of Common Stock then outstanding;
provided, however, that if a person becomes the Beneficial Owner of ten percent
(10%) or more (fifteen percent (15%) or more in the case of any person identified in
clause (D) above) of the shares of Common Stock solely by reason of purchases of
Common Stock by the Company and shall, after such purchases by the Company, become
the Beneficial Owner of any additional shares of Common Stock which has the effect
of increasing such person’s percentage ownership of the then-outstanding shares of
Common Stock by any means whatsoever, then such person shall be deemed to have
triggered a Change of Control, and (II) if the Board of Directors determines that a
person who would otherwise be the Beneficial Owner of ten percent (10%) or more
(fifteen percent (15%) or more in the case of any person identified in clause (D)
above) of the shares of Common Stock has become such inadvertently (including,
without limitation, because (1) such person was unaware that it Beneficially Owned
ten percent (10%) or more (fifteen percent (15%) or more in the case of any person
identified in clause (D) above) of the shares of Common Stock or (2) such person was
aware of the extent of such beneficial ownership but such person acquired beneficial
ownership of such shares of Common Stock without the intention to change or
influence the control of the Company) and such person divests itself as promptly as
practicable of a sufficient number of shares of Common Stock so that such person
would no longer be the Beneficial Owner of ten percent (10%) or more (fifteen
percent (15%) or more in the case of any person identified in clause (D) above),
then such person shall not be deemed to be, or have been, the Beneficial Owner of
ten percent (10%) or more (fifteen percent (15%) or more in the case of any person
identified in clause (D) above) of the shares of Common Stock, and no Change of
Control shall be deemed to have occurred.
	 
	 	(ii)	 	During any period of two consecutive years, individuals who at the beginning of
such period constituted the Board of Directors of the Company and any new director
(other than a director initially elected or nominated as a director as a result of an
actual or threatened election contest with respect to directors or any other actual or
threatened solicitation of proxies by or on behalf of such director) whose election by
the Board of Directors or nomination for election by the Company’s shareholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in office
who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to constitute
a majority thereof.

7

 

	 	(iii)	 	There shall be consummated any consolidation, merger or other combination of
the Company with any other person or entity other than:

	 	(A)	 	a consolidation, merger or other combination which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than fifty-one percent
(51%) of the combined voting power of the voting securities of the Company or
such surviving entity outstanding immediately after such consolidation, merger
or other combination; or
	 
	 	(B)	 	a consolidation, merger or other combination effected to
implement a recapitalization and/or reorganization of the Company (or similar
transaction), or any other consolidation, merger or other combination of the
Company, which results in no person (as such term is used in Sections 13(d) and
14(d)(2) of the Exchange Act), together with all Affiliates and Associates of
such person, becoming the Beneficial Owner of ten percent (10%) or more
(fifteen percent (15%) or more in the case of any person identified in Section
1(c)(i)(D)) of the combined voting power of the Company’s then outstanding
securities.

	 	(iv)	 	There shall be consummated any sale, lease, assignment, exchange, transfer or
other disposition (in one transaction or a series of related transactions) of fifty
percent (50%) or more of the assets or earning power of the Company (including, without
limitation, any such sale, lease, assignment, exchange, transfer or other disposition
effected to implement a recapitalization and/or reorganization of the Company (or
similar transaction)) which results in any person (as such term is used in Sections
13(d) and 14(d)(2) of the Exchange Act), together with all Affiliates and Associates of
such person, owning a proportionate share of such assets or earning power greater than
the proportionate share of the voting power of the Company that such person, together
with all Affiliates and Associates of such person, owned immediately prior to any such
sale, lease, assignment, exchange, transfer or other disposition.
	 
	 	(v)	 	The shareholders of the Company approve a plan of complete liquidation of the
Company.

	10.	 	NON-ASSIGNABILITY. Neither a Participant nor any beneficiary designated by him shall
have any right to, directly or indirectly, alienate, assign or encumber any amount that is or
may be payable hereunder.
	 
	11.	 	ADMINISTRATION OF PLAN. Full discretionary power and authority to construe,
interpret and administer the Plan shall be vested in the Administration Committee. The
Administration Committee shall be consist of three or more members who may be, but are not
required to be, directors or employees of the Company, one of whom shall be the Chief
Executive Officer of the Company and the others of whom shall be appointed by the Chief
Executive Officer of the Company. Members of the Administration Committee, other than the
Chief Executive Officer, shall serve from the effective date of their appointment until such
time as the Chief Executive Officer shall appoint a successor to any or all of such

8

 

	 	 	members of the Administration Committee. The Administration Committee shall have the power
and authority to allocate among themselves and to delegate any responsibility or power
reserved to it hereunder to any person or persons or any committee of the Board of
Directors, as it may, in its sole discretion, deem appropriate. Decisions of the
Administration Committee or its designee shall be final, conclusive and binding upon all
parties.
	 
	12.	 	GOVERNING LAW. To the extent not preempted by federal law, the provisions of this
Plan shall be interpreted and construed in accordance with the laws of the State of Ohio.
	 
	13.	 	EFFECTIVE DATE/AMENDMENT/TERMINATION. This amendment and restatement of the Plan
shall become effective on April 23, 1997. The Board of Directors may amend, suspend or
terminate this Plan at any time; provided that no such amendment, suspension or termination
shall adversely effect the amounts in any then-existing account. Upon termination of the
Plan, the amounts held in the Trust shall be immediately distributed in a lump sum to
Participants. Any and all remaining benefits shall be immediately paid by the Company in a
lump sum to Participants.

     IN WITNESS WHEREOF, the Company has caused the Plan to be executed effective as of July 20,
2005.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	THE SHERWIN-WILLIAMS COMPANY  
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

9

 

EXHIBIT A

THE SHERWIN-WILLIAMS COMPANY 2005

DIRECTOR DEFERRED FEE PLAN

NOTICE OF ELECTION

     I, the undersigned,                                          (Print Name), a non-employee director of The Sherwin-Williams Company (the “Company”) hereby irrevocably elect to
participate in The Sherwin-Williams Company Director Deferred Fee Plan (the “Plan”). I acknowledge
that this deferral is effective upon receipt of this Notice of Election form by the Secretary of
the Company, and is subject to all provisions stated in the Plan document. I understand that this
election shall be irrevocable as to fees payable to me during the next full Plan Year (which runs
from April 1st through March 31st), and shall continue in effect for subsequent Plan Years except
to the extent that I file either a new notice of election changing my prior election or a notice of
termination on or before the March 31st prior to any subsequent Plan Year.

	 	1.	 	Percentage of Fees Deferred. I irrevocably elect for the Plan Year to
defer the following percentages of the following fees:
	 
	 	 	 	Board Retainer:                          %

Meeting Fee:                              %
	 
	 	2.	 	Manner of Payment. I irrevocably elect that all amounts deferred
pursuant to this election and earnings thereon be distributed to me as provided in the
Plan:
	 
	 	 	 	                     in a cash lump sum; or
	 
	 	 	 	                     in            (specify number between two and ten) annual cash installments.
	 
	 	 	 	I hereby acknowledge that if I do not select my preferred manner of Plan
distribution at this time, I will receive my payment in a cash lump sum and I
further acknowledge that, notwithstanding the above election, any amounts invested
in the Common Stock Account shall be paid to me in an in-kind, lump sum
distribution.
	 
	 	3.	 	Payment Commencement Date. I irrevocably elect that the payment of
amounts deferred pursuant to this election and earnings thereon begin within two (2)
business days following the first business day of the first calendar quarter beginning
after:
	 
	 	 	 	                                        , 20       (specify date); or
	 
	 	 	 	                     the date I cease to be a Director.

10

 

	 	4.	 	Investment Accounts. I hereby irrevocably elect that all amounts
deferred pursuant to this election and earnings thereon be invested as follows: (Note:
elections must be no less than 25% in any particular investment account and 5%
increments thereafter)
	 
	 	 	 	                     % in my Deferred Cash Account;
	 
	 	 	 	                     % in my Shadow Stock Account; and/or
	 
	 	 	 	                     % in my Common Stock Account.
	 
	 	 	 	I understand that my investment direction is irrevocable for the Plan Year for
amounts deferred under this election and earnings thereon and that deferred amounts
cannot be transferred between investment accounts.

     IN WITNESS WHEREOF, I have signed my name on this            day of                     , 20     .

	 	 		 
	 

	 		Signature
	 
	 		 
	 

	 		RECEIPT ACKNOWLEDGED ON BEHALF

OF THE SHERWIN-WILLIAMS COMPANY
	 
	 		 
	Date:

	 		 
	 

	 		Corporate Secretary

11

 

EXHIBIT B

THE SHERWIN-WILLIAMS COMPANY 2005

DIRECTOR DEFERRED FEE PLAN

NOTICE OF TERMINATION

     Pursuant to the provisions of the Plan, I, the undersigned,                                          (Print Name), hereby terminate my participation in the Plan effective as of April 1,
20      .

	 	 		 
	Date:

	 		Signature
	 
	 		 
	 

	 		RECEIPT ACKNOWLEDGED ON BEHALF

OF THE SHERWIN-WILLIAMS COMPANY
	 
	 		 
	Date:

	 		 
	 

	 		Corporate Secretary

12

 

EXHIBIT C

THE SHERWIN-WILLIAMS COMPANY 2005

DIRECTOR DEFERRED FEE PLAN

BENEFICIARY ELECTION

	 	 	 	 	 
	

	 	The Sherwin-Williams Company

Director Deferred Fee Plan

Designation of Beneficiary Form
	 	 

CHECK LIST

Please review and complete all sections applicable to you. If you do not complete this form
in its entirety, your elections may be invalid!

	 	 	 
	o

	 	SECTION A: Complete all information. Please print.
	 
	 	 
	o

	 	SECTION B: Primary Beneficiary(ies) are the beneficiaries that will receive your total
vested benefit. If you choose to designate an Estate or Trust as your beneficiary, you do
not need to submit a copy of a Trust document to us.
	 
	 	 
	o

	 	SECTION C: Contingent Beneficiary (ies) are the beneficiaries who will receive your total
vested benefit if the Primary Beneficiary (ies) are deceased at the time of your death. The
same rules apply to the Contingent Beneficiary (ies) as to the Primary Beneficiary (ies).
	 
	 	 
	o

	 	SECTION D: Signatures — the Director signs his/her name in this section to confirm that
the above beneficiary (ies) are the beneficiaries chosen by the Director.
	 
	 	 
	o

	 	SECTION E & F : ALL SIGNATURES ON THIS FORM MUST BE WITNESSED BY NOTARY PUBLIC OR A SHERWIN-WILLIAMS PLAN REPRESENTATIVE IN
SECTION E AND/OR SECTION F. (A Sherwin-Williams Plan Representative is a SW Officer or SW Corporate Employee Benefits
Representative)
	 
	 	 
	o

	 	Return Completed Form to:

	 	 	 
	 

	 	The Sherwin-Williams Company
	 

	 	Employee Benefits — Retirement Programs
	 

	 	1300 Midland
	 

	 	                101 Prospect Avenue, NW
	 

	 	Cleveland, Ohio 44115-1075.

13

 

	 	 	 	 	 
	

	 	The Sherwin-Williams Company 2005 

 Director Deferred Fee Plan

Designation of Beneficiary Form
	 	 

(Please Print all information, except Signatures)

Section A: Director Information

	 	 	 	 	 
	Name

	 	 	 	SSN
	 

	 
	 	 	 	 
	Address

	 	 	 	Marital Status
	 

	 
	 	 	 	 
	City

	 	State
	 	Zip
	 

Section B: Primary Beneficiary (ies)

I hereby designate the following person or persons as primary Beneficiaries of my Account
under the Plan payable in the event of my death.

	 	 	 	 	 	 	 	 	 
	Name

	 	                                                            
	 	 	 	Name
	 	                                                            
	SSN

	 	                                                            
	 	 	 	SSN
	 	                                                            
	Address

	 	                                                            
	 	 	 	Address
	 	                                                            
	                                                                             	 	 	 	                                                                             
	Birth date                                                              	 	 	 	Birth date                                                             
	Relationship to Participant                                   	 	 	 	Relationship to Participant                                  
	Percentage                                                            	 	 	 	Percentage                                                           

The total of the percentages must equal 100%. When more than one Beneficiary is designated,
and no percentage is specified, payment will be made in equal shares to each surviving Beneficiary,
or all to the last surviving Beneficiary. If using more than two primary beneficiaries, attach
addendum sheet to include your printed Name, Social Security, Date and Signature.

Section C: Contingent Beneficiary (ies)

In the event that there are no living primary Beneficiary (ies) at my death, I hereby
designate the following person or persons as contingent Beneficiaries of my Account:

	 	 	 	 	 	 	 	 	 
	Name

	 	                                                            
	 	 	 	Name
	 	                                                            
	SSN

	 	                                                            
	 	 	 	SSN
	 	                                                            
	Address

	 	                                                            
	 	 	 	Address
	 	                                                            
	                                                                             	 	 	 	                                                                             
	Birth date                                                              	 	 	 	Birth date                                                             
	Relationship to Participant                                   	 	 	 	Relationship to Participant                                  
	Percentage                                                            	 	 	 	Percentage                                                           

14

 

The total of the percentages must equal 100%. When more than one Beneficiary is designated,
and no percentage is specified, payment will be made in equal shares to each surviving Beneficiary,
or all to the last surviving Beneficiary. If using more than two contingent beneficiaries, attach
addendum sheet to include your printed Name, Social Security, Date and Signature.

Section D: Director Signature

I reserve the right to revoke or change any Beneficiary designation by completing a new form. I
hereby revoke all my prior designations (if any) of primary and contingent Beneficiary (ies). I
reserve the right to change my beneficiary in accordance with the terms of the Plan.

	 	 	 
	 	 	 
	Participants Signature

	 	Date

ALL SIGNATURES ON THIS FORM MUST BE WITNESSED BY A NOTARY PUBLIC

OR BY AN SHERWIN-WILLIAMS PLAN REPRESENTATIVE IN

SECTION E AND/OR SECTION F.

Section E: Notary Public

On this                      day of                                         , 200       personally appeared before me the said named
                                         and                                          known to me to be the person (s)
described in and who executed the foregoing instrument and he/she acknowledged that he/she executed
the same.

 ̄ Notary Seal  ̄

	 	 	 	 
	 	 	 
	Date

	 	Notary Public Signature	

- OR -

Section F: Sherwin-Williams Plan Representative

As Plan Representative I hereby acknowledge receipt of this form.

All Signature(s) on this form have been witnessed on this            day of                                         ,
200                     in the presence of:

	 	 	 	 
	 

	 	 	
	 

	 	Plan Representative Signature	
	 
	 

	 	 	
	 

	 	Print Plan Representative Name	

Return the completed form to:

     The Sherwin-Williams Company, Employee Benefits-Retirement Programs

     1300 Midland, 101 Prospect Avenue NW, Cleveland, Ohio 44115-1075

15

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