Document:

Exhibit

EXHIBIT 10.27
KEYCORP DIRECTORS’ DEFERRED SHARE SUB-PLAN
(As Amended and Restated) 
ARTICLE I 
PURPOSE 
The KeyCorp Directors’ Deferred Share Sub-Plan (“Sub-Plan”) was originally established as a sub-plan under the KeyCorp 2013 Equity Compensation Plan and as a successor to the KeyCorp Directors’ Deferred Share Plan, adopted as of December 31, 2008 (the “Prior Plan”). The purpose of the Sub-Plan is to attract, retain and compensate highly qualified individuals to serve as Directors and to align the interests of Directors with the shareholders of the Corporation further and thereby promote the long-term success and growth of the Corporation.  The Sub-Plan, as previously amended and restated, is hereby amended and restated in its entirety as set forth herein, effective as of the “Approval Date” (as defined in the KeyCorp 2019 Equity Compensation Plan), to reflect the adoption of the KeyCorp 2019 Equity Compensation Plan, as a successor to the KeyCorp 2013 Compensation Plan.
ARTICLE II 
DEFINITIONS 
Capitalized terms used in the Sub-Plan but not defined herein shall have the same meanings as defined in the applicable Equity Compensation Plan. In addition to those terms and the terms defined in Article I hereof, the following terms shall have the meanings hereinafter set forth, unless a different meaning is clearly required by the context: 
		
	(a)
	“Account”: The meaning set forth in Section 4.3. 

		
	(b)
	“Approval Date”: The meaning set forth in Article I.

		
	(c)
	“Beneficiary” or “Beneficiaries”: The person or persons designated by a Director in accordance with the Sub-Plan to receive payment of the Director’s unpaid Deferred Shares and the Director’s Account in the event of the death of the Director. 

		
	(d)
	“Beneficiary Designation”: An agreement in substantially the form adopted and modified from time to time by the Corporation pursuant to which a Director may designate a Beneficiary or Beneficiaries. 

		
	(e)
	“Change of Control”: Notwithstanding any provision of the Equity Compensation Plan, a Change of Control shall be deemed to have occurred if and only if, under any rabbi trust arrangement maintained by the Corporation (the “Trust”), as such Trust may from time to time be amended or substituted, the Corporation is required to fund the Trust to secure the payment of any Deferred Shares or Account balances because a “Change of Control,” as defined in the Trust, has occurred on or after the effective date of the Sub-Plan; provided that the Change of Control transaction also constitutes the occurrence of a “change in the ownership,” a “change in the effective control” or a “change in the ownership of a substantial portion of the assets” of the Corporation within the meaning of Section 409A of the Code. 

     (f)    “Change of Control Election”: The meaning set forth in Section 6.1. 
     (g)    “Deferral Period”: The meaning set forth in Section 3.2(a). 
		
	(h)
	“Deferred Shares”: A right to receive Common Shares or the equivalent cash value thereof granted pursuant to the Equity Compensation Plan and Article III of this Sub-Plan. 

		
	(i) 
	“Election Agreement”: The written election to defer payment of Fees and/or Deferred Shares in accordance with Section 3.2(b) or Article IV signed in writing by the Director and in the form provided by the Corporation.  Election Agreements shall be irrevocable.

		
	(j)
	“Equity Compensation Plan”: the KeyCorp 2013 Equity Compensation Plan, the KeyCorp 2019 Equity Compensation Plan, or any successor equity compensation plan maintained by the Corporation and approved by its shareholders, as applicable, as in effect at the time an award of Deferred Shares is granted hereunder (or at such other time as may be relevant for purposes of this Sub-Plan).

		
	(k)
	“Fees”: The fees earned as Director.  

		
	(l)
	“Nominating and Corporate Governance Committee”: The Nominating and Corporate Governance Committee of the Board or any successor committee designated by the Board. 

		
	(m)
	“Participant”:  Any Director who has at any time elected to defer the receipt of his or her Fees and/or Deferred Shares in accordance with the terms of the Sub-Plan.

		
	(n)
	“Retainer”: The portion of a Director’s annual cash compensation that is payable on a current basis without regard to the number of Board or committee meetings attended or committee positions.

		
	(o)
	“Second Director Plan”:  The KeyCorp Second Director Deferred Compensation Plan, as the same may be amended from time to time.

		
	(p)
	“Settlement Date”: The date on which the three-year Deferral Period with respect to an award of Deferred Shares ends, provided that the Director has not elected to defer payment of his or her Deferred Shares pursuant to Section 3.2(b). 

(q)    “Year”: The calendar year.

ARTICLE III
ANNUAL DEFERRED SHARE AWARDS 
3.1    Annual Awards.  Each Director shall receive an annual award of Deferred Shares. The number of Deferred Shares to be awarded shall be equal to a number of Common Shares having an aggregate Fair Market Value as of the date of the award equal to 200% of the Director’s Retainer, unless a lesser number of Deferred Shares is determined by the Nominating and Corporate Governance Committee. To the extent that the application of any formula in computing the number of Deferred Shares to be granted would result in fractional shares of stock, the number of shares shall be rounded down to the nearest whole share. Unless the Nominating and Corporate Governance Committee from time to time determines another date for the annual award due to unusual circumstances or otherwise, beginning with the annual award made during 2014, such annual award shall be made on the day of the Corporation’s annual meeting of shareholders, in accordance with the Corporation’s normal equity granting policies and only to those Directors serving as of the conclusion of such annual meeting. At the time of making the annual award, the Nominating and Corporate Governance Committee shall determine, in its sole discretion, whether Deferred Shares shall be payable in the form of Common Shares (with fractional shares being rounded down to the nearest whole share), cash, or a combination of Common Shares and cash. 

3.2    Deferral Period. 
		
	(a)
	Minimum Three-Year Deferral Period. Each grant of Deferred Shares shall be subject to a required deferral period (a “Deferral Period”) beginning on the Deferred Shares’ grant date and ending on the earlier of the third anniversary of such grant date or the date of the Corporation’s annual meeting of shareholders that occurs in the third Year following the Year in which such grant date occurs (the “Vesting Date”); provided, however, that the Deferral Period will end (and the Deferred Shares will become fully vested) prior to the Vesting Date (i) in the event of a Change of Control pursuant to a Director’s Change of Control Election as provided in Section 6.1(a); (ii) if the Director dies; or (iii) if the Director’s service as a Director is terminated (unless the termination follows a Change of Control and the Director has elected in a Change of Control Election to receive his or her Deferred Shares pursuant to Section 6.1(c)). 

		
	(b)
	Directors’ Option to Defer Payment of Deferred Shares. Notwithstanding Section 3.2(a), a Director may elect, during the period specified by the Corporation in accordance with this Section 3.2(b) and Section 409A of the Code, to defer the payment of his or her Deferred Shares.  Any deferral election pursuant to this Section 3.2(b) shall specify (x) the date on which the Deferred Shares shall be distributed, which shall be the first day of a calendar quarter commencing after the end of the Deferral Period, (y) whether the distribution of Deferred Shares is to be paid in its entirety or whether Deferred Shares shall be paid in installments, and (z) if in installments, the number of annual installments (not to exceed 10). Deferred Shares being deferred pursuant to this Section 3.2(b) will be paid in the form (cash or Common Shares) originally granted.  Any deferral of Deferred Shares pursuant to an election under this Section 3.2(b) will become effective at the conclusion of the applicable Deferral Period.

		
	(i)
	With respect to any Deferred Shares granted after 2013, any such election shall be made no later than December 31 of the Year ending immediately prior to the Year in which the Deferred Shares are granted and shall result in the crediting of the applicable Deferred Shares to the Director’s Account maintained under Article IV of this Sub-Plan. 

		
	(ii)
	With respect to any Deferred Shares granted prior to 2014, any such election shall be made no later than twelve full calendar months prior to the close of the applicable Deferral Period and shall result in the transfer of the applicable Deferred Shares into the Common Shares Account maintained for the Director under the Second Director Plan or the Director’s Account maintained under Article IV of this Sub-Plan, as the case may be.

		
	(c)
	Evergreen Deferral Election.  Once a Director elects under Section 3.2(b) of this Sub-Plan to defer Deferred Shares into his or her Account maintained under Article IV of this Sub-Plan (or, as applicable, to transfer such Deferred Shares into the Common Shares Account maintained for the Director under the Second Director Plan), his or her deferral election will continue to be effective from Year to Year to the extent provided in this Section 3.2(c).  

		
	(i)
	Any election with respect to Deferred Shares granted after 2013 will continue to be effective from Year to Year with respect to Deferred Shares granted after such Year and the Deferred Shares granted in subsequent Years will also be credited to the Director’s Account maintained under Article IV of this Sub-Plan in accordance with such election, unless and until the election is revoked or modified, on a form provided by the 

Corporation, in accordance with this Section 3.2(c)(i).  To revoke or modify an evergreen deferral election under this Section 3.2(c)(i) with respect to Deferred Shares otherwise granted in a particular Year, the Director’s revocation or modification of his or her evergreen election shall be delivered to the Corporation during the period specified by the Corporation and no later than December 31 of the Year ending immediately prior to the Year in which the Deferred Shares are granted.  
(ii)        Any election with respect to Deferred Shares granted prior to 2014 will continue to apply to such Deferred Shares for which the applicable three-year Deferral Period lapses after 2013, and such Deferred Shares will be transferred to the Director’s Common Shares Account maintained under the Second Director Plan in accordance with such election, unless and until the election is revoked or modified, on a form provided by the Corporation, in accordance with this Section 3.2(c)(ii).  No such election shall have any effect upon Deferred Shares granted after 2013.  To revoke or modify an evergreen deferral election under this Section 3.2(c)(ii) with respect to Deferred Shares otherwise granted in a particular Year, the Director’s revocation or modification of his or her evergreen election shall be delivered to the Corporation during the period specified by the Corporation and no later than twelve full calendar months prior to the date on which the applicable Deferral Period ends.
		
	(d)
	No Rights During Deferral Period.  During the Deferral Period, the Director shall have no right to transfer any rights under his or her Deferred Shares and shall have no other rights of ownership therein.

3.3    Dividend Equivalents.  Each award of Deferred Shares will provide for dividend equivalents, such that, on the date of the Corporation’s dividend payment, each participating Director will be credited with a number of additional Deferred Shares (including fractional shares) equal to the amount of cash dividends paid by the Corporation on the number of outstanding Deferred Shares divided by the Fair Market Value of one Common Share on that date. Such dividend equivalents, which shall likewise be credited with dividend equivalents, shall be deferred until the end of the Deferral Period for the Deferred Shares with respect to which the dividend equivalents were credited and, if the Director has so elected, pursuant to Section 3.2(b), such dividend equivalents shall be credited to the Director’s Account maintained under Article IV of this Sub-Plan.
3.4    Payment of Deferred Share Awards.  Except as otherwise provided pursuant to a Director’s election to defer payment of his or her Deferred Shares in accordance with Section 3.2(b), each Director’s Deferred Shares (including dividend equivalents) shall be shall be paid after the conclusion of the applicable Deferral Period in accordance with this Section 3.4.
		
	(a)
	Settlement Date.  A Director, or in the event of such Director’s death, his or her Beneficiary, shall be entitled to payment of such Director’s Deferred Shares following such Director’s Settlement Date.

		
	(b)
	Time and Form of Distribution.  As soon as practicable following the Settlement Date, but in no event later than 90 days following the Director’s Settlement Date, the Corporation shall pay each outstanding award of Deferred Shares to the Director or, in the case of the death of the Director, his or her Beneficiary.  Such distribution shall be made in a lump sum in the form determined pursuant to Section 3.1. If payment of Deferred Shares is made in the form of Common Shares, the Corporation will provide procedures to facilitate the sale of such Common Shares following distribution upon the request of the Director. If payment 

of Deferred Shares is made in cash, the amount distributed shall be equal to the Fair Market Value on the Settlement Date. 
		
	(d)
	Fractional Shares.  The Corporation will not be required to issue any fractional Common Shares pursuant to this Sub-Plan. 

3.5          Shares Subject to Sub-Plan.  The Common Shares which may be delivered to Directors upon payment of their Deferred Shares shall be issued or delivered under the Equity Compensation Plan. Any Common Shares delivered to Directors by a trust that is treated as a “grantor trust” within the meaning of Sections 671-679 of the Code shall be treated as delivered by the Corporation pursuant to this Sub-Plan. 
3.6    Adjustments.  The number of Deferred Shares granted to a Director hereunder, and the kind of shares covered thereby, are subject to adjustment upon certain corporate events as provided in the Equity Compensation Plan. 
3.7    Death of a Director.  Notwithstanding anything to the contrary contained in this Sub-Plan, and except in the case of Deferred Shares deferred pursuant to Section 3.2(b), in the event of the death of a Director, the three-year Deferral Period will be deemed to have ended, and the Settlement Date will be deemed to have occurred, on the date of the Director’s death. The Director’s Deferred Shares shall be paid as soon as practicable following the Settlement Date, but in no event later than 90 days following the Settlement Date, to the Beneficiary or Beneficiaries designated on the Director’s Beneficiary Designation or, if no such designation is in effect or no Beneficiary is then living, then to the Director’s estate.
ARTICLE IV
DEFERRAL OF FEES; ACCOUNTS
4.1    Election to Defer Fees.  Any Director may elect to defer (i) payment of his receipt of all or a specified portion of his or her Fees for any Year in accordance with this Section 4.1 with such deferred Fees deemed invested in KeyCorp Common Shares.  A Director who desires to defer the payment of all or a portion of his or her Fees for any Year must complete and deliver an Election Agreement to the Corporation during the period specified by the Corporation and no later than the last day of the Year prior to the Year in which the Fees will be earned by the Director; provided, however, that any Director hereafter elected to the Board of Directors of the Corporation or a subsidiary who was not previously a Participant in the Sub-Plan may make an election to defer the payment of Fees for the Year in which he or she is elected to the Board of Directors by delivering the Election Agreement to the Corporation within 30 days of first becoming a Director (or during such shorter period as may be specified by the Corporation), with any such Election Agreement being effective with respect to Fees earned commencing after the date that the Election Agreement becomes irrevocable.
4.2     Amount of Fees Deferred; Date of Deferral.  A Participant shall designate on the Election Agreement (a) the amount of his or her Fees that are to be deferred under this Sub-Plan for any Year, (b) the date on which the deferred Fees shall be distributed, (c) whether the distribution of deferred Fees is to be paid in its entirety or whether such Fees shall be paid in installments, and (d) if in installments, the number of annual installments (not to exceed 10). Deferrals shall be until the earlier to occur of: (x) the date specified by the Participant, or (y) the date of death of the Participant, at which time payment of the amount deferred shall be made in accordance with Section 4.4 or Section 6.1. A Participant may not select more than one date in each Election Agreement upon which distribution shall be made or when installments shall begin.  Distribution dates shall be the first business day of a calendar quarter.
4.3    Account. The Corporation shall maintain a bookkeeping account for each Participant to which shall be credited (a) the amount of Fees deferred by the Participant pursuant to this Article IV, (b) the Deferred Shares deferred by the Participant pursuant to Section 3.2(b) of this Sub-Plan, and (c) 

dividend equivalents credited in accordance with this Sub-Plan (an “Account”).  All amounts credited to a Director’s Account shall be credited in the form of notional Common Shares.  With respect to deferred Fees, as of the last business day of any quarter, there shall be added to each Account the number of Common Shares (whole and fractional, rounded to the nearest one-hundredth of a share) equal to the dollar amount of deferred Fees payable for such quarter plus all dividends payable during such quarter on the Common Shares credited to the Account on the first day of such quarter divided by the Fair Market Value of the Common Shares at the close of business on the last business day of such quarter.
4.4     Payment of Account; Period of Deferral. The balance of a Participant’s Account shall be paid to the Participant in a single payment and/or in a number of individual, substantially equal consecutive annual installments (not to exceed 10), as elected by the Participant in his or her Election Agreement.  Distributions of deferred Fees shall be made in Common Shares, and distributions of deferred Deferred Shares shall be made as described in Section 3.2(b).  The amount of the Account remaining after payment of each individual installment shall continue to be valued in accordance with Section 4.5 of this Article.  Full payment or the first annual installment, as the case may be, shall be made in accordance with the terms of the Participant’s Election Agreement as soon as administratively practicable following the Participant’s designated payment date, but in any event no later than 90 days following the date (i) on which the Participant has elected to commence distribution of his or her Account, or (ii) of the Participant’s death.  Any installment payment shall be made pro rata.  
The election as to the time for and method of payment of the amount of the Account relating to Fees deferred for a particular Year shall be made on the Election Agreement(s) and thereafter shall not be altered except as provided in Article VI of this Sub-Plan. 
In the event that a Participant elects to receive installment payments under this Section 4.4, 
		
	(a)
	the amount of the distribution from the Account shall be valued based on the  Fair Market Value of the Common Shares on the last business day of the quarter immediately prior to the distribution date, and 

		
	(b) 
	the amount of each installment shall be determined by dividing the value of the Account by the number of installments remaining to be paid to the Participant.

4.5    Valuation of the Account.  Each Participant’s Account shall be valued as of the last day of each quarter until payment of the Participant’s Account is made in full.  The Corporation shall ascertain the number of shares in the Account (whole and fractional, rounded to the nearest one-hundredth of a share) after taking into account dividend equivalents credited to the Account and deemed reinvested in Common Shares and distributions from the Account under this Article, based on the Fair Market Value of the Common Shares on the last business day of such quarter. Automatically and without further action by the Corporation, in the event of any stock dividend or split, recapitalization, merger, consolidation, spin-off, reorganization, combination, exchange of shares, or a similar corporate change, appropriate adjustments in the number and kind of shares credited to a Participant’s Account shall be made by the Corporation to reflect such change. 
4.7    Statement.  Each Participant shall receive a statement of his or her Account not less than annually.
4.8    Change of Control.  
		
	(a) 
	Adjustments.  Notwithstanding any other provision of the Sub-Plan to the contrary, in the event of a Change of Control, no amendment or modification of this Sub-Plan may be made at any time on or after such Change of Control (i) to reduce or modify a Participant’s Pre-Change of Control Account Balance, (ii) to reduce or modify the method of calculating all earnings, gains, and/or losses on a Participant’s Pre-Change of Control Account Balance, or (iii) to reduce or modify the Participant’s deferrals to be credited to the Participant’s Account for the 

applicable deferral period. For purposes of this Section 4.8, the term “Pre-Change of Control Account Balance” shall mean, with regard to any Participant, the aggregate amount of such Participant’s prior deferrals with all earnings, gains, and losses thereon which are credited to the Participant’s Account through the close of the Year in which such Change of Control occurs.
		
	(b)
	Common Stock Conversion.  In the event of a Change of Control in which the Common Shares of the Corporation are converted into or exchanged for securities, cash and/or other property as a result of any capital reorganization or reclassification of the capital stock of the Corporation, or as a result of the consolidation or merger of the Corporation with or into another corporation or entity, or the sale of all or substantially all of its assets to another corporation or entity, the Corporation shall cause each Participant’s Account to reflect the securities, cash and other property to be received in such reorganization, reclassification, consolidation, merger or sale on the balance in the Account and, from and after such reorganization, reclassification, consolidation, merger or sale, the Account shall reflect all dividends, interest, earnings and losses attributable to such securities, cash, and other property. 

		
	(c)
	Amendment in the Event of a Change of Control. On or after a Change of Control, the provisions of this Article IV may not be amended or modified as such provisions apply to the Participants’ Pre-Change of Control Account Balances.

4.10    Death of a Participant.  In the event of the death of a Participant, the amount of the Participant’s Account shall be paid to the Beneficiary or Beneficiaries designated in writing signed by the Participant in the form provided by the Corporation; in the event there is more than one Beneficiary, such form shall include the proportion to be paid to each Beneficiary and indicate the disposition of such share if a Beneficiary does not survive the Participant; in the absence of any such designation, payment from the Account shall be divided equally among all other Beneficiaries.  Unless a Participant elects otherwise, in the event of the Participant’s death after December 31, 2014, payment of the Participant’s Account shall be made in a single lump sum to the Participant’s Beneficiary(ies).

ARTICLE V
BENEFICIARY DESIGNATION
5.1          Beneficiary Designation.  Each Director shall have the right, at any time, to designate one or more persons or an entity as Beneficiary (both primary as well as secondary) to whom benefits under this Sub-Plan shall be paid in the event of the Director’s death prior to payment of the Director’s Deferred Shares or the Director’s Account.  Each Beneficiary Designation shall be in a written form prescribed by the Corporation and shall be effective only when filed with the Corporation during the Director’s lifetime. 
5.2          Changing Beneficiary.  Any Beneficiary Designation may be changed by the Director without the consent of the previously named Beneficiary by the Director’s filing of a new Beneficiary Designation with the Corporation. The filing of a new Beneficiary Designation shall cancel all Beneficiary Designations previously filed by the Director. 
ARTICLE VI
ACCELERATION 
     6.1    Change of Control.   Notwithstanding anything to the contrary contained in this Sub-Plan or the Equity Compensation Plan, upon the occurrence of a Change of Control, a Director shall be entitled to receive from the Corporation the payment of his or her Deferred Shares and the balance of his 

or her Account in the manner selected as follows: not later than 30 calendar days after the date a person first becomes a Director, a Director shall be entitled to make an election which will be applicable in the event of a Change of Control (the “Change of Control Election”).   For purposes of clarity, notwithstanding any other provision of the Sub-Plan to the contrary, a Director’s Change of Control Election in effect immediately prior to September 18, 2013 shall continue in effect on and after such date.  The Change of Control Election will provide the following payment alternatives to a Director in the event of a Change of Control: 
		
	(a)
	upon the occurrence of a Change of Control, the entire amount of the Director’s Deferred Shares and the balance of the Director’s Account will be immediately paid in full, regardless of whether the Director continues as a Director after the Change of Control; 

		
	(b)
	upon and after the occurrence of a Change of Control and in accordance with Section 3.2(a), the entire amount of the Director’s Deferred Shares and the balance of the Director’s Account will be immediately paid in full if and when the Director’s service as a Director is terminated within two years after the Change of Control; or 

		
	(c)
	upon the occurrence of a Change of Control, the payment elections specified by the Director prior to the Change of Control shall govern irrespective of the Change of Control. 

6.2    Hardship.   In the event of an unforeseeable emergency, the Corporation may accelerate the payment of all or any portion of the Director’s Deferred Shares and the Director’s Account to the Director, but only up to the amount necessary to meet the emergency. For purposes of this Section 6.2, the term “unforeseeable emergency” shall mean a severe financial hardship to the Director resulting from a sudden and unexpected illness or accident of the Director, the Director’s spouse, or the Director’s dependent (as defined in Section 152 of the Code, without regard to Section 152(b)(1), (b)(2), and (d)(1)(B)), the loss of the Director’s property due to casualty, or such other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Director. The determination of an unforeseeable emergency and the ability of the Corporation to accelerate payment of the Director’s Deferred Shares and the Director’s Account shall be determined in accordance with the requirements of Section 409A of the Code and the applicable regulations issued thereunder. Payment of the Director’s Deferred Shares and the Director’s Account shall be limited only to such amount as is necessary to satisfy the emergency, which shall include all applicable taxes owed or to be owed by the Director as a result of the distribution.
6.3    Small Accounts.  Notwithstanding any other provision of this Sub-Plan, the Corporation may, to the extent permitted under Section 409A of the Code, accelerate payment of a Director’s Account if, at any time, the balance of the Director’s Account (and the value of any other nonqualified deferred compensation arrangement that is aggregated with the Director’s Account under Treasury Regulation Section 1.409A-1(c)) is less than or equal to the applicable dollar amount then in effect under Section 402(g)(1)(B) of the Code.
ARTICLE VII
ADMINISTRATION, AMENDMENT AND TERMINATION 
7.1          Administration.  Notwithstanding any provision of the Equity Compensation Plan, the Sub-Plan shall be administered by the Corporation. The Corporation shall have such powers as may be necessary to discharge its duties hereunder. The Corporation may, from time to time, employ, appoint or delegate to an agent or agents (who may be an officer or officers of the Corporation) and delegate to them such administrative duties as it sees fit, and may from time to time consult with legal counsel who may be counsel to the Corporation. No agent appointed by the Corporation to perform administrative duties hereunder shall be liable for any action taken or determination made in good faith. All elections, 

notices and directions under the Sub-Plan by a Director shall be made on such forms as the Corporation shall prescribe. 
7.2          Amendment and Termination.  Notwithstanding any provision of the Equity Compensation Plan, the Nominating and Corporate Governance Committee may alter or amend this Sub-Plan from time to time or may terminate it in its entirety; provided, however, that no such action, except for an acceleration of benefits, shall, without the consent of a Director, impair the Director’s rights with respect to the amount credited to the Director’s Account or with respect to any Deferred Shares issued or to be issued to such Director under the Sub-Plan; and further provided, that any amendment that must be approved by the shareholders of the Corporation in order to comply with applicable law or the rules of the principal exchange upon which the Common Shares are traded or quoted shall not be effective unless and until such approval has been obtained in compliance with such applicable law or rules. Presentation of this Sub-Plan or any amendment hereof for shareholder approval shall not be construed to limit the Corporation’s authority to offer similar or dissimilar benefits through plans or other arrangements that are not subject to shareholder approval unless otherwise limited by applicable law or stock exchange rules. 
ARTICLE VIII 
FINANCING OF BENEFITS 
8.1          Financing of Benefits.  The Deferred Shares and the balance of a Director’s Account payable under the Sub-Plan to a Director or, in the event of his or her death, to his or her Beneficiary, shall be paid by the Corporation from its general assets, including treasury shares. The right to receive payment of the Deferred Shares or an Account balance represents an unfunded, unsecured obligation of the Corporation. 
8.2          Security for Benefits.  Notwithstanding the provisions of Section 8.1, nothing in this Sub-Plan shall preclude the Corporation from setting aside Common Shares or funds in a so-called “grantor trust” pursuant to one or more trust agreements between a trustee and the Corporation. However, no Director or Beneficiary shall have any secured interest or claim in any assets or property of the Corporation or any such trust and all Common Shares or funds contained in such trust shall remain subject to the claims of the Corporation’s general creditors. 
ARTICLE IX 
GENERAL PROVISIONS 
9.1        Governing Law.  The provisions of this Sub-Plan shall be governed by and construed in accordance with the laws of the State of Ohio. 
9.2        Shareholder Approval.  Notwithstanding the foregoing provisions of the Sub-Plan, no Common Shares shall be issued or transferred pursuant to the Sub-Plan before the date of the approval of the applicable Equity Compensation Plan by the Corporation’s shareholders. 
9.3        Miscellaneous.  Headings are given to the sections of this Sub-Plan solely as a convenience to facilitate reference. Such headings, numbering and paragraphing shall not in any case be deemed in any way material or relevant to the construction of this Sub-Plan or any provisions thereof. 
9.4        No Right to Continue as Director.  Neither the Sub-Plan, nor the granting of Deferred Shares nor any other action taken pursuant to the Sub-Plan, shall constitute or be evidence of any agreement or understanding, express or implied, that a Director has a right to continue as a Director for any period of time, or at any particular rate of compensation. 
9.5        Compliance with Section 409A Requirements.  The Sub-Plan is intended to provide for the deferral of compensation in accordance with the provisions of Section 409A of the Code and regulations and published guidance issued pursuant thereto. Accordingly, the Sub-Plan shall be 

administered in a manner consistent with those provisions. Notwithstanding any provision of the Sub-Plan to the contrary, no otherwise permissible election, deferral, accrual, transfer or distribution shall be made or given effect under the Sub-Plan that would result in a violation of Section 409A of the Code. 
9.6        Elections Under Prior Plan.  Each Director’s Account hereunder shall remain subject to the same Change of Control elections, elections under Section 4.2(b) of the Prior Plan that are described in Sections 3.2(b)(ii) and 3.2(c)(ii) of this Sub-Plan to transfer the Deferred Shares to the Director’s Common Shares Account under the Second Director Plan, and Beneficiary Designations that were controlling under the Prior Plan immediately prior to the approval of the KeyCorp 2013 Equity Compensation Plan by the Corporation’s shareholders for the remainder of the period or periods for which such elections or designations are by their original terms applicable or, in the case of Beneficiary Designations and elections under Section 4.2(b) of the Prior Plan that are described in Sections 3.2(b)(ii) and 3.2(c)(ii) of this Sub-Plan, until such time as such designations and elections are revoked or modified or otherwise cease to be effective in accordance with this Sub-Plan. 
ARTICLE X 
MERGER OF FIRST NIAGARA DIRECTOR PLAN

14.1    Merger of First Niagara Plan.  Effective December 31, 2016, (a) the Amended and Restated First Niagara Bank and First Niagara Financial Group, Inc. Directors Deferred Fees Plan (the “First Niagara Plan”) shall be merged into the Sub-Plan and thereby terminated, (b) all participants in the First Niagara Plan immediately prior to such time (“First Niagara Participants”) will automatically participate in the Sub-Plan, and the rights and obligations of First Niagara Participants under the First Niagara Plan shall automatically be extinguished and shall become rights and obligations under the Sub-Plan.

14.2    First Niagara Plan Accounts.  The Corporation shall establish a separate sub-Account (a “First Niagara Account”) under the Sub-Plan for each First Niagara Participant, to which shall be credited (a) a number of notional Common Shares (whole and fractional, rounded to the nearest one-hundredth of a share) determined by dividing the balance of such First Niagara Participant’s accounts under the First Niagara Plan immediately prior to its merger into the Sub-Plan by the Fair Market Value of one Common Share, and (b) dividend equivalents on the notional Common Shares credited to the First Niagara Account and deemed reinvested in Common Shares.  The amount properly credited to a First Niagara Participant’s First Niagara Account at any time shall be referred to as the First Niagara Participant’s “First Niagara Plan Benefits”.

14.3    Certain Terms Applicable to First Niagara Plan Benefits.  Except as otherwise provided in this Article XIV, First Niagara Plan Benefits shall be subject to the terms and conditions of the Sub-Plan.  In particular, and notwithstanding any other provision of the Sub-Plan to the contrary:

		
	(a)
	All First Niagara Plan Benefits shall be payable only at the time and in the form provided pursuant to applicable payment election made under the First Niagara Plan and the terms of the First Niagara Plan, each as in effect immediately prior to the merger of the First Niagara Plan into the Sub-Plan.

		
	(b)
	The provisions of Sections 3.4, 4.4 and 6.1 of the Sub-Plan shall not apply to First Niagara Benefits.

		
	(c)
	Any beneficiary designation made by a First Niagara Participant under the First Niagara Plan and in effect immediately prior to the merger of the First Niagara Plan into the Sub-Plan shall continue to apply under the Sub-Plan with respect to the First Niagara Participant’s First Niagara Benefits, unless and until changed in accordance with Article V of the Sub-Plan.Exhibit 4.1

 

DESCRIPTION OF THE REGISTRANT’S
SECURITIES REGISTERED PURSUANT

TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following is a summary of the
rights of our common shares and preferred shares as set forth in our Articles of Amalgamation, as amended, and By-laws, each
of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K to which this Exhibit 4.1 is a part.
Additionally, we have provided a summary of the “advance notice provisions” contained in our By-laws. This
summary does not purport to be complete and is qualified in its entirety by the full text of our aforementioned constating
documents and by applicable law. 

 

Our authorized capital consists of an unlimited
number of common shares (without nominal or par value) and an unlimited number of preferred shares (without nominal or par value),
which are issuable in series.

 

The additional shares of our authorized
stock available for issuance may be issued at times and under circumstances so as to have a dilutive effect on earnings per share
and on the equity ownership of the holders of our common shares. The ability of our board of directors to issue additional shares
without shareholder approval could enhance the board’s ability to negotiate on behalf of the shareholders in a take-over
situation but could also be used by the board of directors to make a change-in-control more difficult, thereby denying shareholders
the potential to sell their shares at a premium and entrenching current management.

 

Description of Common Shares

 

Dividend Rights

 

Subject to any rights, privileges, restrictions and conditions
which may apply to any series of preferred shares that are issued, holders of our common shares are entitled to receive dividends,
if, as and when declared by the board of directors.

  

Voting Rights

 

The holders of the common shares are entitled
to receive notice of and attend any meeting of our shareholders and are entitled to cast one vote for each common share held.

 

No Preemptive, Conversion or Redemption
Rights

 

Holders of our common shares are not entitled
to preemptive rights and our common shares are not subject to conversion or redemption.

 

Rights upon Liquidation

 

On the winding-up, liquidation or dissolution
of our company or upon the happening of any other event giving rise to a distribution of our assets, other than by way of dividend
amongst our shareholders, for the purposes of winding-up our affairs, subject to any rights, privileges, restrictions and conditions
which may have been determined by the directors to attach to any series of preferred shares, the holders of all common shares shall
be entitled to participate pari passu.

 

    

    

    

Action Necessary to Change the Rights of Holders of our
Shares

 

Under the Business Corporations
Act (Alberta) (“ABCA”), a company can amend its articles and governing documents with approval of shareholders
pursuant to a special resolution of its shareholders. A “special resolution” is a resolution passed
by a majority of not less than two-thirds of the votes cast by the shareholders who voted in respect of that resolution or signed
by all the shareholders entitled to vote on that resolution. Items that can be amended via special resolution include (but are
not limited to): a change in our name; changing any maximum number of shares that we are authorized to issue; creating new classes
of shares; reducing the stated capital attributable to a class of shares; changing the designation of our shares and adding, changing
or removing any rights, privileges, restrictions and conditions, including rights to accrued dividends, in respect of all or any
of our shares, whether issued or unissued; changing the shares of any class or series into a different number of shares of the
same class or series (i.e. a stock split or a reverse stock split) or into the same or a different number of shares of other classes
or series; or adding, changing or removing any provision that is permitted by the ABCA to be included in the articles of a company.

 

Under the ABCA, the holders of shares
of a class or series may be entitled to vote separately as a class or series in relation to certain proposed amendments to the
articles. In the case of shares of a series, the holders of a particular series of shares are entitled to a separate series
vote where the holders of the applicable series are affected by an amendment in a manner different from other shares of the same
class. This separate class or series vote applies whether or not the shares of a class or series otherwise carry the right to
vote.

 

Shareholder Meetings

 

Under the ABCA: (1) We must hold an annual
meeting of shareholders not later than 15 months after holding the last preceding annual meeting; (2) the directors may at any
time call a special meeting of shareholders; and (3) the registered or beneficial holders of not less than 5% of our issued shares
that carry the right to vote at a meeting sought to be held may requisition the directors to call a meeting of shareholders for
the purposes stated in the requisition subject to satisfying certain requirements in the ABCA, including requirements related to
the proposed subject matter of the meeting.

 

The most recent annual meeting of our shareholders
was held on November 5, 2019.

 

The ABCA requires that notice of the time
and place of a meeting of shareholders shall be sent not less than 21 days and not more than 50 days before the meeting: (1) to
each shareholder on record that is entitled to vote at the meeting; (2) to each director; and (3) to our auditor.

 

We must also comply with certain continuous
disclosure obligations of a reporting issuer in Canada respecting shareholder meetings.

 

Certain Earl Warning Disclosure and
Take-over Bid Requirements

 

Canadian laws applicable to us provide
for early warning disclosure requirements and for take-over bid rules for bids made to security holders in various jurisdictions
in Canada, a summary of which is set forth below.

 

    

    

    

In Canada, securities laws are a matter
of provincial/territorial jurisdiction and, as a result, early warning disclosure requirements and bids are governed by applicable
corporate and securities legislation in each province or territory, which includes policies and instruments implemented by Canadian
Securities Administrators which have been adopted in the applicable jurisdiction.

  

Under the laws of the Provinces of Alberta
and British Columbia, the jurisdictions in Canada in which we are a reporting issuer (as defined under provincial securities law),
when any person (an “offeror”) acquires beneficial ownership of, or the power to exercise control or direction over,
voting or equity securities of any class of an issuer, or securities convertible into voting or equity securities of any class
of an issuer that, together with such offeror’s securities of that class, would constitute 10% or more of the outstanding
securities of that class, the offeror must (a) issue no later than the opening of trading on the business day following the acquisition
a press release announcing the acquisition, and file that press release on SEDAR; and (b) prepare and file an “early warning
report” of such acquisition with the applicable securities regulatory authorities (on SEDAR) within two business days of
the acquisition. For purposes of determining the “offeror’s securities”, an offeror is required to include securities
in respect of which beneficial ownership or control or direction is held by the offeror as well as persons considered to be “acting
jointly or in concert” with the offeror. Further, there are rules with respect to “deemed beneficial ownership”
of securities, including a provision whereby a person is deemed to beneficially own a security by virtue of ownership of a security
convertible into that security within 60 days.

 

Once an offeror has filed an “early
warning report” as described in the above paragraph, the offeror is required to issue further press releases and file further
early warning reports (a) each time that the offeror, or any person acting jointly or in concert with the offeror, acquires of
disposes of beneficial ownership of, or acquires or ceases to have control or direction over, or either (i) securities in an amount
equal to 2% or more of the outstanding securities of the class of securities that was the subject of the most recent report filed
by the offeror; or (ii) securities convertible into an additional 2% or more of the outstanding securities of the applicable class;
or (b) upon a change in any other material fact set out in the most recent early warning report required to be filed by the offeror.
Certain institutional investors may elect to comply with an alternative monthly reporting system.

 

In Alberta, British Columbia and other
Canadian jurisdictions, a take-over bid is generally defined as an offer to acquire outstanding voting or equity securities of
a class of an issuer made to any holder in the applicable jurisdiction, or whose address as shown on the books of the issuer is
in the applicable jurisdiction, if the securities subject to the offer to acquire, together with securities beneficially owned,
or over which control or direction is exercised, by the offeror and any person “acting jointly or in concert” with
the offeror, constitute in the aggregate 20% or more of the outstanding securities of that class of securities of the issuer at
the date of the offer to acquire.

 

Subject to limited exemptions, a take-over
bid must generally be made to all holders of securities of the class that is subject to the bid who are in the applicable jurisdiction,
and subject to certain exceptions, must allow such security holders at least 105 days to accept the bid. Unless exemptions are
available, the offeror must deliver to the security holders a take-over bid circular which describes the terms of the take-over
bid and satisfies other disclosure requirements. The directors of the subject issuer must deliver a directors’ circular not
later than 15 days after the date of the bid, either making or declining to make a recommendation to security holders to accept
or reject the bid and the reasons for their making or not making a recommendation, or otherwise advising security holders that
the board is not making a recommendation (and the reasons therefor) or that the board is considering whether to make a recommendation
(and the reasons therefor, together with advice that security holders should not tender to the bid until receiving further communication
from the directors). Whilst provincial securities laws in Canada only regulate offers to residents of the particular province,
the Canadian Securities Administrators have adopted a policy whereby they may issue a cease trade order against a company if a
take-over bid is not made to all Canadian security holders.

 

    

    

    

One exemption from the requirements applicable to take-over bids
is in the case of a “foreign take-over bid”. Such an exemption may be available where (among other requirements): (a)
security holders whose last address as shown on the books of the offeree issuer is in Canada hold less than 10% of the outstanding
securities of the class subject to the bid at the commencement of the bid; (b) the offeror reasonably believes that security holders
in Canada beneficially own less than 10% of the outstanding securities of the class subject to the bid at the commencement of the
bid; (c) the published market on which the greatest volume of trading in securities of that class occurred during the 12 months
immediately preceding the commencement of the bid was not in Canada; (d) security holders in the local jurisdiction are entitled
to participate in the bid on terms at least as favourable as the terms that apply to the general body of security holders of the
same class; (e) at the same time as material relating to the bid is sent by or on behalf of the offeror to security holders of
the class that is subject to the bid, the material is filed and sent to security holders whose last address as shown on the books
of the offeree issuer is in the local jurisdiction; and (f) if no material is sent by or on behalf of the offeror to security holders,
then the availability of the bid documents must be advertised to shareholders in a permitted manner. For a complete description
of the foreign take-over bid exemption, readers are referenced to Multilateral Instrument 62-104 – Take-over Bids
and Issuer Bids, issued by the Canadian Securities Administrators.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for our
common shares is AST Trust Company (Canada). Our transfer agent’s address is 1 Toronto Street, Suite 1200, Toronto, Ontario
M5C 2VC and its telephone number is (416) 682-3844.

 

Our co-transfer agent is American Stock
Transfer & Trust Company.

 

Listing

 

Our common shares are listed on the NYSE
American under the symbol “ZOM.”

 

Description of Preferred Shares

 

Our board of directors is authorized to
issue an unlimited number of preferred shares in one or more series, without shareholder approval, unless shareholder approval
is required by applicable law or by the rules of a stock exchange or quotation system on which any series of our preferred shares
may be listed or quoted. Our board is authorized to establish from time to time the number of preferred shares to be included in
each series and to fix the rights, privileges, restrictions and conditions attaching to the series. This right of the board is
subject to the requirements of the ABCA, and our Articles of Amalgamation, which establish “class rights” applicable
to the preferred shares, as a class. The class rights applicable to the preferred shares authorize the directors to determine the
designation, rights, privileges, restrictions and conditions attaching to the applicable series at the time of issue, including
the authority to determine dividend rights and rights on winding up, liquidation or dissolution of the Company, which may have
priority in relation to the common shares. Further, the class rights provide that the preferred shares are not entitled to notice
of or to vote at meetings of the shareholders of the Company.

 

    

    

    

Series 1 Preferred Shares

 

The only series of preferred shares that
has been created to date is the “Series 1 Preferred Shares”. An aggregate of 20 Series 1 Preferred Shares have been
authorized, and 12 Series 1 Preferred Shares have been issued at a “Stated Value” of US $1,000,000 per share.

 

Holders of the Series 1 Preferred Shares
are not entitled to dividends but, in lieu thereof, are entitled to receive payments defined as “Net Sales Returns”.
Net Sales Returns are to equal 9% of “Net Sales” made by the Company or its affiliates for the sale of its products.
Holders of Series 1 Preferred Shares are entitled to receive Net Sales Returns until such time as the holders have received total
Net Sales Returns in respect of each Series 1 Preferred Share equal to 9 times the Stated Value of each Series 1 Preferred Share.
We will have the right to redeem the outstanding Series 1 Preferred Shares at any time at a redemption price equal to 9 times the
aggregate Stated Value of each Series 1 Preferred Share outstanding, less the aggregate amount of the Net Sales Returns paid in
respect of each share (the “Redemption Amount”). Upon any dissolution, liquidation or winding up, or other distribution
of the assets of the Company for the purposes of winding up its affairs (other than a Fundamental Transaction, as defined below),
the holders of Series 1 Preferred Shares will be entitled to a receive the Stated Value of each Series 1 Preferred Share less the
Net Sales Returns paid on each Series 1 Preferred Share. Such amount shall be paid before any distribution is made to the holders
of the common shares. A “Fundamental Transaction” is defined in the Series 1 Preferred Shares to mean: (a) an amalgamation,
merger or other business combination transaction involving our company whereby all or substantially all of the outstanding common
shares are sold, transferred or exchanged pursuant to which our shareholders before the transaction do not have the right after
the transaction to cast more than 50% of the votes that may be cast for the election of directors of the successor or continuing
corporation; or (b) a sale, lease or disposition of the properties and/or assets of our company as an entirety or substantially
as an entirety to another person and the subsequent distribution of the consideration received to common shareholders. In the event
of a Fundamental Transaction, the holders of the Series 1 Preferred Shares will be entitled to receive consideration for each Series
1 Preferred Share equal to a multiple of the Stated Value of the Series 1 Preferred Shares ranging from 5.0 to 9.0 depending on
the date of completion of the Fundamental Transaction, subject to a cap equal to the Redemption Amount. The entitlement of holders
of Series 1 Preferred Shares in the event of a Fundamental Transaction ranks prior in right of payment to the rights of holders
of common shares. In connection with any proposed amendment to the rights, privileges, restrictions or conditions attaching to
the Series 1 Preferred Shares, there is a requirement for such holders to approve the amendment at a meeting by the affirmative
vote of not less than two-thirds, with holders entitled to one vote in respect of each Series 1 Preferred Share held. This approval
requirement is in addition to any other approval requirement under applicable law.

 

Advance Notice By-laws

 

Our By-laws contain “advance notice”
provisions with respect to the rights of holders of common shares to nominate directors for election at a meeting of shareholders.
The By-laws require shareholders to notify the Company of nominations 30 to 65 days in advance of an annual meeting, except that,
where the meeting is to be held less than 50 days after the Company makes a public announcement of the meeting date, shareholders
have until 10 days after the announcement of the meeting date to submit a notification. In the case of special meetings where annual
business is not conducted, shareholders have until 15 days following the public announcement of the meeting date to submit a notification.

 

The notice provided by shareholders must
include certain information, including information about the proposed nominee that would be required to be included in a dissident
proxy circular in connection with the solicitation of proxies for the election of directors under the ABCA and applicable securities
laws. The Company may also require the proposed nominee to provide additional information related to the determination of the status
of the nominee as an independent director.

 

The By-laws do not affect the ability of
shareholders to make shareholder proposals or to requisition a meeting, in each case in accordance with the provisions of the ABCA.

 

The directors of the Company have the ability
to waive any requirement in this regard.

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