Document:

EX-10.39

 

Exhibit 10.39

RETIREMENT AGREEMENT

BY AND BETWEEN

FIRSTMERIT CORPORATION

AND

ROBERT P. BRECHT

This Retirement Agreement (“Agreement”) is entered into by FirstMerit Corporation (“Corporation”),
an Ohio corporation, and Robert P. Brecht (“Mr. Brecht”), collectively, the “Parties,” to describe
the terms and conditions of Mr. Brecht’s retirement and separation of employment with the
Corporation.

ARTICLE 1 EFFECTIVE DATE OF AGREEMENT

     This Agreement will become effective as defined in Section 8.03[4].

ARTICLE 2 RESIGNATION AND RETIREMENT

2.01 Resignation and Retirement. Mr. Brecht agrees:

[1] Effective as of the January 31, 2007, [a] to resign as Senior Executive Vice President
of Retail of the Corporation and [b] to resign as a member of the FirstMerit Bank, N.A.
Board of Directors,

[2] Effective as of January 31, 2007, to resign as an employee of the Corporation and any
other entity that is related through common ownership to the Corporation (all entities
related through common ownership to the Corporation are called “Group Members” and the
Corporation and all Group Members collectively are called the “Group”).

ARTICLE 3 CONSIDERATION

     Mr. Brecht agrees that he will comply with the terms of this Agreement and will voluntarily
terminate his employment because of retirement on January 31, 2007 (“Termination Date”), and his
retirement will commence effective February 1, 2007. In exchange, but subject to Mr. Brecht’s
execution and non-revocation of a general release, and any restrictions imposed under Section 409A
of the Internal Revenue Code of 1986, as amended (“Code”), and to the terms of this section, Mr.
Brecht will receive the payments and benefits described in this section.

Beginning on February 1, 2007:

3.01 Separation Pay. The Corporation will pay to Mr. Brecht a “Separation Pay” in the amount of
Three Hundred One Thousand Two Hundred Seventeen Dollars ($301,217.00), and

 

 

paid in semi-monthly installments that correspond with the Corporation’s normal payroll practices.
The first payment will be paid on February 15, 2007. The final payment will be made on December
31, 2007.

3.02 Incentive Compensation. The Corporation will pay Mr. Brecht the amount of Fifty Thousand
Dollars ($50,000.00) as incentive compensation for the year 2006. Mr. Brecht will not be eligible
to receive any other incentive compensation payments. This payment will be be paid no later than
30 days after the Termination Date.

3.30 Equity Awards. The vesting, ability to exercise and lapsing of any restrictions of Mr.
Brecht’s outstanding equity awards will be determined in accordance with and to the extent provided
under the terms relating to terminations of employment for similar reasons contained in the plan
and the award agreements through which they were granted.

3.04 Life Insurance. The Corporation will continue to pay the premiums on behalf of Mr. Brecht
for the Executive Life Insurance Policy until such time as the policy cash value and dividends are
estimated to be sufficient to pay future premiums for Mr. Brecht’s life expectancy, based upon the
current dividend scale or, if earlier, the date of Mr. Brecht’s death. In addition, the
Corporation will pay Mr. Brecht an amount equal to 40 percent of the premium on or about the date
the premium is paid. Mr. Brecht will be responsible for the payment of all taxes associated with
the payment of the premiums.

3.05 Tax Preparation. The Corporation will reimburse Mr. Brecht an amount not to exceed $750.00
for income tax preparation fees in accordance with the policies of the Corporation applicable to
all of its executives for the 2006 tax year. This amount shall be paid prior to December 31, 2007.

3.06 Medical Coverage. Until Mr. Brecht attains the age of 65, he will be eligible to participate
in the FirstMerit group health coverage for retirees after the Termination Date in accordance the
FirstMerit Retiree Medical Plan. After Mr. Brecht reaches age 65 and until his death, Mr. Brecht
will be eligible to apply for coverage under the Hartford Group Retirement Insurance Plan (“Retiree
Medical Program”), or a health care plan consistent with the coverage available under the Retiree
Medical Program as provided to FirstMerit Retirees generally. Mr. Brecht will pay the full cost
under the Retiree Medical Program.

3.07 Retirement Plan Benefits. Mr. Brecht (or, if applicable, his beneficiary) will be entitled to
all benefits he has accrued through the Termination Date under:

     [a] The FirstMerit Corporation and Affiliates Employees’ Salary Savings Retirement
Plan.

     [b] The Pension Plan for Employees of FirstMerit Corporation and Subsidiaries.

     [c] The FirstMerit Corporation Unfunded Supplemental Benefit Plan.

     [d] The FirstMerit Corporation Executive Supplemental Retirement Plan.

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3.08 Unused and Accrued Paid Days Off. Mr. Brecht will not be paid for any accrued and unused paid
time off.

3.09 Outplacement. The Corporation will provide Mr. Brecht with outplacement services with Dise &
Company for a period not to exceed three months.

3.10 No Duplicate Payments. Nothing in this Article 3 is intended to result in the duplication of
any payments or benefits provided to Mr. Brecht prior to the execution of this Agreement or under
the terms of any other agreement by and between Mr. Brecht and the Corporation (“Prior Agreements”)
or under any other employee benefit plan or program maintained or sponsored by the Corporation on
or before the Effective Date.

3.11 Effect of Other Severance Benefits. Regardless of any other provision of this Agreement and
except as specifically provided in this Agreement, all amounts paid under this Article 3 will be in
lieu of any amounts payable to Mr. Brecht from any broad-based severance program in which Mr.
Brecht participates and, by signing this Agreement, Mr. Brecht specifically waives any rights to
receive any amounts from any broad-based severance program in which he participates.

The amounts distributable under Section 3.07 will be distributed subject to the terms and
conditions of each plan in effect on the Termination Date and to any distribution elections Mr.
Brecht has made as of the Effective Date, including, with respect to the plans described in
Sections 3.07[c] and [d], any election made under (and subject to the restrictions and limits of)
any applicable transition rule described in Section XI, C of the Preamble to Proposed Treasury
Regulations 1.409A-1, et. seq.; provided that any amount subject to Code §409A, which would
otherwise be payable on account of a termination of employment or separation from service will not
be paid before the first day of the seventh month after the Termination Date.

ARTICLE 4 POST-TERMINATION OBLIGATIONS

4.01 Non-Disclosure of Confidential Information. Mr. Brecht expressly covenants and agrees that,
during and after the Term, he will not reveal, divulge or make known to any person, firm, company
or corporation any Confidential Information without the prior express written consent of the
Corporation. “Confidential Information” shall mean financial information about the Corporation or
any of its affiliates, strategies and techniques, trade secrets, contract terms with vendors and
suppliers, supplier lists and data, and such other confidential, proprietary, or sensitive
information concerning or relating to the Corporation, any Group Member or any of their respective
affiliates or any third party that has disclosed or provided any of the same to the Corporation on
a confidential basis. Confidential Information shall not include [1] any information which was or
becomes generally available to the public other than as a result of a wrongful disclosure by Mr.
Brecht, or [2] any information disclosed by Mr. Brecht which he reasonably and in good faith
believes is required for the performance of his duties under this

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Agreement, or [3] any information compelled to be disclosed by applicable law; provided that Mr.
Brecht, to the extent not prohibited from so doing by applicable law, will give the Corporation
prior written notice of the information to be so disclosed pursuant to clause [3] of this sentence
as far in advance of its disclosure as may be practical, will disclose no more information than is
required and will cooperate with any attempts by the Corporation or any Group Member to obtain a
protection order or similar treatment.

4.02 Return of Materials. Mr. Brecht agrees [1] to deliver or return to the Corporation upon
termination or expiration of this Agreement all written Confidential Information furnished by the
Corporation or any Group Member or prepared by Mr. Brecht in connection with his services hereunder
and [2] that he will not retain any copies of any of the materials described in Section 4.02[1].
In addition, upon Mr. Brecht’s termination, he agrees to immediately return to the Corporation all
property of the Corporation or any Group Member which is in his possession, including, but not
limited to, memoranda, books, papers, computer files, laptops, credit cards and keys.

4.03 Non-Competition. For a period of 24 months after Mr. Brecht’s termination of employment, Mr.
Brecht will not directly or indirectly, own, manage, operate, join, or have a financial interest
in, control or participate in the ownership, management, operation or control of, or be employed as
an employee, agent or consultant or in any other individual or representative capacity whatsoever,
or use or permit his name to be used in connection with, or be otherwise connected in any manner
with any competitive business or venture. Competitive business or venture will be defined as any
business or venture that is actively engaged in any business which is in competition with the
Corporation or any Group Member in any geographic area in which the Corporation or any Group Member
does business through the Termination Date. However, this section will not prohibit the ownership
by Mr. Brecht of not more than one percent of any class of securities of any corporation whose
securities are registered pursuant to the Securities Exchange Act of 1934, which securities are
publicly owned and regularly traded on any national exchange or in the over-the-counter market and
that ownership represents a passive investment and that neither Mr. Brecht nor any group of persons
including Mr. Brecht in any way, either directly or indirectly, manages or exercises control of the
corporation, guarantees any of its financial obligations, otherwise takes part in its business
other than exercising his rights as a shareholder, or seeks to do any of the foregoing.

4.04 Non-solicitation. Mr. Brecht hereby further agrees and covenants that for a period of
twenty-four (24) months following January 31, 2007, he shall not, directly or indirectly, on his
own behalf or with others [1] induce or attempt to induce any employee of the Group to leave the
employ of the Group, or in any way interfere with the relationship between the Group and any
employee, [2] hire any employee of the Group, or [3] induce or attempt to induce any referral
source, customer, or other business relation of the Group, not to do business with the Group, or to
cease doing business with the Group, or in any way interfere with the relationship between any such
referral source, customer, or business relation and the Group.

4.05 Injunctive Relief. Mr. Brecht acknowledges that it is impossible to measure in money the
damages that will accrue to the Corporation by reason of Mr. Brecht’s failure to observe any of the
obligations imposed on him by this Article 4. Accordingly, if the Corporation institutes an action
to enforce the provisions hereof, Mr. Brecht hereby waives the claim or defense that an

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adequate remedy at law is available to the Corporation, and Mr. Brecht agrees not to urge the claim
or defense that a remedy at law exists. Also, if a final determination is made by a court having
competent jurisdiction that the time or territory or any other restriction contained in Section
4.03 is an unenforceable restriction on Mr. Brecht’s activities, the provisions of Section 4.03
will not be rendered void but will be deemed amended to apply the maximum time and territory and
other restrictions the court judicially determines or otherwise indicates to be reasonable.

ARTICLE 5 INDEMNIFICATION

To the extent permitted by law, the Corporation will indemnify Mr. Brecht pursuant to the terms of
the Indemnification Agreement, dated April 28, 1995, by and between the Corporation and Mr. Brecht
and the Corporation’s Articles of Incorporation and Code of Regulations, each as amended.

ARTICLE 6 ASSIGNMENT OF AGREEMENT

6.01 Except as specifically provided in this section, the Corporation may not assign this Agreement
to any person or entity that is not a Group Member. However, this Agreement may and will be
assigned or transferred to, and will be binding upon and inure to the benefit of, any successor of
the Corporation, in which case this Agreement will be interpreted and applied by substituting that
successor for the “Corporation” under the terms of this Agreement. For these purposes, “successor”
means any person, firm, corporation or business entity which at any time, whether by merger,
purchase or otherwise acquires all or substantially all of the assets or the business of the
Corporation.

6.02 Because the services to be provided by Mr. Brecht to the Corporation under this Agreement are
personal to him, Mr. Brecht may not assign the duties allocated to him under this Agreement to any
other person or entity. However, this Agreement will inure to the benefit of and be enforceable by
Mr. Brecht’s personal or legal representatives, executors and administrators, successors, heirs,
distributees, devisees, and legatees to the extent of any amounts payable to Mr. Brecht that are
due to Mr. Brecht upon his death.

ARTICLE 7 DISPUTE RESOLUTION

7.01 Except as provided in Section 4.05, any disagreement arising under this Agreement that is not
resolved by agreement between the Parties, including the basis on which Mr. Brecht’s employment is
terminated, will be resolved by arbitration in accordance with the rules of the American
Arbitration Association. The award of the arbitrator will be final, conclusive and nonappealable
and judgment upon the award rendered by the arbitrator may be entered in any court having competent
jurisdiction. The arbitrator must be an arbitrator qualified to serve in accordance with the rules
of the American Arbitration Association and one who is approved by the Corporation and Mr. Brecht.
If the Corporation and Mr. Brecht fail to agree on an arbitrator, each must designate a person
qualified to serve as an arbitrator in accordance with the rules of the American Arbitration
Association and these persons will select the arbitrator from among those persons qualified to
serve in accordance with the rules of the American Arbitration

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Association. Any arbitration relating to this Agreement will be held in Summit County, Ohio.
Regardless of the scope of this section, the Parties agree that nothing in this section prevents
either Party from seeking injunctive or other equitable relief if there is a breach or threatened
breach of any provision of this Agreement. Also, if otherwise due, payments not being contested
under the procedures described in this paragraph will not be deferred during the pendency of
procedures described in this section.

7.02 The Corporation will bear the arbitrator’s fee and other costs associated with any
arbitration, unless the arbitrator, acting under Federal Rule of Civil Procedure 54(b), elects to
award these fees to the Corporation.

ARTICLE 8 RELEASES, WAIVERS AND REVOCATION RIGHTS

8.01 Release. In consideration of receipt of the payments and benefits set forth herein, Mr.
Brecht does hereby fully and forever surrender, release, acquit and discharge the Corporation, and
its principals, stockholders, directors, officers, agents, administrators, insurers, subsidiaries,
affiliates, employees, successors, assigns, related entities, and legal representatives, personally
and in their representative capacities, and each of them (collectively, “Released Parties”), of and
from any and all claims for costs of attorneys’ fees, expenses, compensation, and all losses,
demands and damage of whatsoever nature or kind in law or in equity, whether known or unknown,
including without limitation those claims arising out of, under, or by reason of Mr. Brecht’s
employment with the Corporation or any Group Member, Mr. Brecht’s relationship with the Corporation
or any Group Member and/or the termination of Mr. Brecht’s employment relationship and any and all
claims which were or could have been asserted in any charge, complaint, or related lawsuit.
Without limiting the generality of the foregoing, Mr. Brecht specifically releases and discharges,
but not by way of limitation, any obligation, claim, demand or cause of action based on, or arising
out of, any alleged wrongful termination, breach of employment contract, breach of implied
covenants of good faith and fair dealing, defamation, fraud, promissory estoppel, intentional or
negligent infliction of emotional distress, discrimination based on age, pain and suffering,
personal injury, punitive damages, and any and all claims arising from any alleged violation by the
Released Parties of any federal, state, or local statutes, ordinances or common laws, including but
not limited to the Ohio Civil Rights Act, including all provisions of the Ohio Revised Code
concerning discrimination on the basis of age, the Age Discrimination in Employment Act of 1967
(“ADEA”), Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act or the
Employee Retirement Income Security Act of 1974. This release of rights is knowing and voluntary.
The Corporation acknowledges that Mr. Brecht does not release herein any rights or claims which may
arise after the Effective Date of this Agreement nor any rights he has under this Agreement, any
rights he may have regarding the enforcement of this Agreement, his rights under COBRA or his
rights to indemnification.

8.02 Waiver of Right to Sue. Except for the Corporation’s promises and obligations contained in
this Agreement, Mr. Brecht further agrees, promises and covenants that neither he, nor any person,
organization, or any other entity acting on his behalf will file, charge, claim, sue or cause or
permit to be filed, charged or claimed, any action for damages or other relief (including
injunctive, declaratory, monetary relief or other) against the Corporation, involving any matter
occurring in the past up to the Effective Date of this Agreement or involving any

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continuing effects of actions or practices which arose prior to the Effective Date of this
Agreement or the termination of Mr. Brecht’s employment.

8.03 Older Workers’ Benefit Protection Act Waiver. Mr. Brecht has certain individual federal
rights, which must be explicitly waived. Specifically, Mr. Brecht is protected by the ADEA from
discrimination in employment because of his age. By executing this Agreement, Mr. Brecht waives
these rights as to any past or current claims. Notwithstanding anything else in this Agreement,
excluded from this Agreement are ADEA age claims that may arise after execution of this Agreement.
In connection with the releases in Section 8.01 and waivers in Section 8.02 of any and all claims
or disputes that Mr. Brecht has or may have on the date hereof, Mr. Brecht makes the following
acknowledgements:

[1] By signing this Agreement, Mr. Brecht waives all claims against the Released Parties for
discrimination based on age, including without limitation, any claim which arises under or
by reason of a violation of the ADEA.

[2] In consideration of the releases, waivers and covenants made by Mr. Brecht under this
Agreement, Mr. Brecht will be receiving the payments and other benefits in the amounts and
manner described in Articles 3 and 5 of this Agreement.

[3] Mr. Brecht represents and acknowledges that he has consulted with an attorney prior to
executing this Agreement and Mr. Brecht has been given a period of at least twenty-one (21)
days within which to consider whether or not to enter into this Agreement.

[4] Mr. Brecht understands that this Agreement shall be effective as of February 1, 2007
(“Effective Date”), provided that the Agreement is not revoked by Mr. Brecht within seven
days after he signs the Agreement. For a period of seven days after he signs the Agreement,
Mr. Brecht has the right to revoke and/or cancel this Agreement by the delivery of notice in
writing of revocation and/or cancellation to the Corporation. In the event that Mr. Brecht
does not revoke and/or cancel this Agreement during this period, this Agreement shall become
effective on the Effective Date. In the event that Mr. Brecht revokes this Agreement, Mr.
Brecht shall not be entitled to any of the consideration set out in this Agreement.

ARTICLE 9 MISCELLANEOUS

9.01 Notices. Any notices, consents, requests, demands, approvals or other communications to be
given under this Agreement must be given in writing and must be sent by registered or certified
mail, return receipt requested, to Mr. Brecht at the last address he has filed in writing with the
Corporation or, in the case of the Corporation, to the Corporation’s CEO at the Corporation’s
principal offices.

9.02 Entire Agreement. This Agreement supersedes any Prior Agreements or understandings, oral or
written, between the Parties, or between Mr. Brecht and the Corporation, with respect to the
subject matter described in this Agreement, including the Change in Control

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and Displacement Agreements dated November 1, 2004, and constitutes the entire agreement of the
Parties with respect to any matter covered in this Agreement.

9.03 Amendment and Modification. This Agreement may not be varied, altered, modified, canceled,
changed or in any way amended except by written agreement of the Parties. However, by signing this
Agreement, Mr. Brecht agrees, without any further consideration, to consent to any amendment
necessary to avoid penalties under Code §409A.

9.04 Severability. If any provision or portion of this Agreement is determined to be invalid or
unenforceable for any reason, the remaining provisions of this Agreement will remain in full force
and effect.

9.05 Counterparts. This Agreement may be executed in one or more counterparts, each of which will
be deemed to be an original, but all of which together will constitute one and the same Agreement.
Facsimile signatures will have the same legal effect as original signatures.

9.06 Tax Withholding. The Corporation will withhold from any benefits payable under this Agreement
all federal, state, city or other taxes as required by any applicable law or governmental
regulation or ruling. Mr. Brecht will be responsible for the payment of all taxes associated with
any payments or benefits provided under this Agreement.

9.07 Waiver. Failure to insist upon strict compliance with any of the terms, covenants or
conditions described in this Agreement [1] will not constitute a waiver of that or any other term,
covenant or condition and [2] will not constitute a waiver or relinquishment of the Party’s right
to insist subsequently on strict compliance of the affected (and all other) terms, covenants or
conditions of this Agreement.

9.08 Governing Document. The terms of this Agreement will supersede and control over any
conflicting language in any other agreement, plan, program or practice of the Corporation.

9.9 Applicable Law. To the extent not preempted by federal law, the provisions of this Agreement
will be construed and enforced in accordance with the laws of the state of Ohio.

9.10 Code §409A Fail Safe. Notwithstanding anything in this Agreement to the contrary, if payment
of any amount or other benefit that is “deferred compensation” subject to Code §409A at the time
otherwise specified in this Agreement would subject such compensation to additional tax pursuant to
Code §409A(a)(1), the payment thereof shall be postponed to the earliest commencement date on which
such amounts could be paid without incurring such additional tax. In the event a deferral of
payment should be required, any payments that would have been made prior to such earliest
commencement date but for Code §409A shall be accumulated and paid in a single lump sum on such
earliest commencement date. If any benefits permitted or required under this Agreement are
otherwise reasonably determined by the Corporation or Mr. Brecht to be subject for any reason to a
material risk of additional tax pursuant to Code §409A(a)(1), the Corporation and Mr. Brecht agree
to negotiate in good faith appropriate provisions to avoid such risk without materially changing
the economic value of this Agreement to Mr. Brecht or the economic value or financial effect of
this Agreement on the Corporation.

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9.11 Headings. The descriptive headings in this Agreement are inserted for convenience of
reference only and are not intended to be part of or to affect the meaning or interpretation of
this Agreement.

9.12 Survival of Mr. Brecht’s Rights. All of Mr. Brecht’s rights hereunder, including his rights
to compensation and benefits, and his obligations under Article 4 hereof, shall survive the
termination of Mr. Brecht’s employment and/or the termination of this Agreement.

9.13 Joint and Several Liability. The obligations of the Corporation and the Group Members to Mr.
Brecht under this Agreement are joint and several.

9.14 Approvals. The Corporation represents and warrants to Mr. Brecht that it has taken all
corporate action necessary to authorize this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the dates set forth below.

	 	 	 	 	 	 	 
	FIRSTMERIT CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Christopher J. Maurer	 	Date signed: January 12       , 2007	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name:

	 	Christopher J. Maurer
	 		 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 Executive Vice President –H.R.	 	 	 	 
	 
	 	 	 	 	 	 
	Robert P. Brecht	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Robert P. Brecht
 

	 	Date signed: January 12      , 2007
 

	 	 
	 

	 	Robert P. Brecht	 	 	 	 

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WAIVER OF TWENTY-ONE DAYS TO CONSIDER AGREEMENT

RELATING TO REASSIGNMENT OF EMPLOYMENT

AND RELEASE OF CLAIMS

     On January 12, 2007, I received a Retirement Agreement (the “Agreement”) dated Janary 12,
2007.

     I understand and acknowledge, and as listed in Article 8 of the Agreement, that I have the
legal entitlement for twenty-one (21) days to decide whether or not I want to sign the Agreement
and that I have also been advised to seek the advice of an attorney before signing the Agreement
and have obtained the advice of an attorney. Understanding those rights, I have determined to
sign the Agreement and have done so effective this 12th day of January, 2007.

     I recognize that only one day has transpired since I received the Agreement, but I have
determined, with the assistance of my legal counsel, that since I have made the decision to sign
the Agreement, it is not necessary to wait the entire twenty-one (21) day period to which I am
entitled, and I hereby freely and knowingly waive that statutory right.

     I understand that the parties to the Agreement are relying upon my representations in this
Agreement and I agree that they have a right to so rely. I understand that those parties have
agreed to pay me the amount stated in the Agreement for the period set forth in the Agreement,
based on my representations contained herein.

	 	 	 	 	 
	 	 	 
	Date: January 12, 2007 	/s/ Robert P. Brecht
 	 
	 	Robert P. Brecht 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                            /s/ Christopher J. Maurer
 	 
	 	Witness 	 
	 	 	 
	 

10EX-10.40

 

Exhibit 10.40

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT is effective this 1st day of November, 2004 by and
between FirstMerit Corporation, its subsidiaries and affiliates (“FirstMerit”) and Terri L. Cable
(“Cable”), (the “Agreement”).

     WITNESSETH:

	 	A.	 	WHEREAS, the Parties previously entered into an agreement, pursuant to which
Cable was employed by FirstMerit under the terms of this Agreement as Executive Vice
President Wealth Services (the “Initial Agreement”);
	 
	 	B.	 	WHEREAS, the Initial Agreement incorporated certain terms of an Amended and
Restated Change in Control Termination Agreement and an Amended and Restated
Displacement Agreement entered into between the Parties.
	 
	 	C.	 	WHEREAS, FirstMerit has adopted revised forms of the Change in Control
Termination Agreement and the Displacement Agreement for its executive officers (the
“Change Agreements”); and
	 
	 	D.	 	WHEREAS, the Parties desire to modify the Initial Agreement to accurately
reflect the revised form of Change Agreements; and
	 
	 	E.	 	WHEREAS, FirstMerit and Cable desire to enter into this Agreement to amend and
restate the Initial Agreement in its entirety and to provide for the continuation of
Cable’s services to FirstMerit for a term certain.

     IN CONSIDERATION of the foregoing, the mutual covenants contained herein and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows:

     1. Employment Duties

     During the term of this Agreement, Cable shall serve as Executive Vice President Wealth
Services, and shall have responsibility to structure, grow and enhance FirstMerit’s Wealth
Management Services to include Private Banking, Personal Trust, Investment Management,
Institutional Trust, Financial Planning, Estate Planning, and Insurance, and/or such other or
additional responsibilities as otherwise may be assigned commensurate with Cable’s executive
position (the “Assigned Duties”). The Senior Executive Vice President-Business Segments shall,
from time to time and subject to modification at any time and at his sole discretion, hereafter
assign such responsibilities and duties as he may deem appropriate; provided, however

 

 

that such responsibilities and duties are generally consistent with Cable’s Assigned Duties
and her position with FirstMerit. Cable shall faithfully, diligently, competently, and to the best
of her ability, carry out those responsibilities and duties as assigned from time to time by the
Senior Executive Vice President — Business Segments of FirstMerit.

     2. Term of Agreement

     The term of this Agreement shall continue until December 31, 2006, unless such term is earlier
terminated as herein provided (the “Agreement Period”). Cable and FirstMerit agree that on January
1, 2007, Cable shall become an at-will employee of FirstMerit. Cable shall receive the
compensation and benefits set forth in Paragraph 3 (the “Compensation”) and 4 (the “Benefits”)
below for the Agreement Period; provided, however, that in the event of a Qualifying Termination
under Paragraph 5, Cable shall receive Compensation and Benefits set forth in Paragraph 6 for the
Agreement Period. Any Compensation and Benefits to which Cable is entitled under this Agreement
are in addition to any compensation and benefits to which she may be entitled, if any, under the
Change in Control Agreement or Displacement Agreement between Cable and FirstMerit. The terms of
this Agreement shall override any inconsistent provisions in the Change in Control Agreement and
Displacement Agreement.

     3. Compensation

     During the term of this Agreement, FirstMerit shall pay Cable for her services the annual sum
of Two Hundred Sixty Thousand Dollars ($260,000.00), paid semimonthly, subject to any salary
increases that may occur from time to time and at the sole discretion of FirstMerit (the “Base
Salary”). The semimonthly amount to be paid hereunder shall be paid in accordance with FirstMerit’s
policies and shall be paid net of amounts withheld for federal, state or local income taxes, FICA,
and such other applicable amounts as may be required to be paid during the term of this Agreement.

     4. Employee Benefits

     During the term of this Agreement, Cable shall be eligible to participate in the following
employee benefits from FirstMerit as applicable:

     (a) Cable shall be eligible to participate in such retirement, medical, and other
employee benefit plans as may be maintained by FirstMerit during the term of this Agreement.

     (b) Cable shall be eligible to participant in the Executive Life Insurance Program that
FirstMerit may maintain during the term of this Agreement. Cable shall be personally
obligated to pay any and all taxes associated with this life insurance benefit.

     (c) Cable shall be granted stock options and restricted stock of FirstMerit in
accordance with the Non-qualified Stock Option Agreements each dated January 15, 2004 and
the Restricted Stock Award Agreement dated January 15, 2004. Any

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unexercised and outstanding stock options and restricted stock will vest and will be
exercisable in accordance with the terms of the award agreement. Cable shall be eligible to
participate in additional stock option quotes as may be authorized from time-to-time by
FirstMerit Board of Directors.

     (d) Cable shall be eligible to participate in the Executive Supplemental Retirement
Plan (“SERP”). Such SERP benefits are defined in the plan documents as may be amended from
time to time at the discretion of the FirstMerit Board of Directors.

     (e) Cable shall be eligible to participate in the FirstMerit Executive Incentive Plan
at performance levels established from time to time by the FirstMerit Board of Directors In
any event, Cable’s award under the Executive Incentive Plan for 2004 shall be at least equal
to $130,000 payable during the first quarter of 2005.

     5. Termination

     (a) FirstMerit may terminate the employment of Cable under the Agreement for Just
Cause. Notwithstanding anything to the contrary contained herein, it shall be considered
Just Cause to terminate the Cable’s employment upon the happening of any of the following:

	 	1.	 	The retirement, disability or death of Cable;
	 
	 	2.	 	Felonious criminal activity whether or not
affecting the Employer;
	 
	 	3.	 	Disclosure to unauthorized persons of Employer
information which is considered by FirstMerit to be Confidential
Information under Paragraph 7;
	 
	 	4.	 	Breach of any contract with, or violation of
any legal obligation to, the FirstMerit or dishonesty; or
	 
	 	5.	 	Gross negligence or insubordination in the
performance of duties of the position held by the Employee.

     In the event of termination by FirstMerit for Just Cause, the Agreement Period shall
end and Cable shall not be entitled to receive Compensation or Benefits beyond the date of
termination.

     (b) Cable may terminate her employment relationship with FirstMerit without reason by
resignation, provided that she provide thirty (30) days advance written notice
(“Resignation”).

     (c) Cable may terminate her employment relationship with FirstMerit for Good Reason in
accordance with the following provisions. Notwithstanding anything

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herein to the contrary, it shall be considered Good Reason to terminate employment upon
the happening of any of the following:

	 	1.	 	Involuntary reduction in Cable’s Base Salary,
unless such reduction occurs simultaneously with a company-wide
reduction in officers’ salaries.
	 
	 	2.	 	Involuntary discontinuance or reduction in
Cable’s incentive compensation award opportunities, unless a
company-wide reduction of all officers’ incentive award opportunities
occurs simultaneously with such discontinuance or reduction.
	 
	 	3.	 	Involuntary relocation to another office
located more than 50 miles from Cable’s office location.
	 
	 	4.	 	Significant reduction in Cable’s
responsibilities and status within FirstMerit’s organization or change
in Cable’s title or office held without prior written consent of Cable.
	 
	 	5.	 	Involuntary discontinuance of Cable’s
participation in any employee benefit plans maintained by FirstMerit
unless such plans are discontinued by reason of law or loss of tax
deductibility to FirstMerit with respect to contributions to such
plans, or are discontinued as a matter of company policy applied
equally to all participants.
	 
	 	6.	 	Involuntary reduction of Cable’s paid vacation
to less than 24 working days per calendar year.
	 
	 	7.	 	Failure to obtain an assumption of FirstMerit’s
obligations under this Agreement by any successor to FirstMerit.

     (d) Any termination by FirstMerit for Just Cause or by Cable for Good Reason shall be
communicated to the other party by written notice which identifies the specific termination
provision in this Agreement relied upon, sets forth the facts and circumstances claimed to
form the basis for the termination under the provisions so identified, and specifies a date
of termination.

     (e) Termination of Cable’s employment (i) by FirstMerit for any reason other than Just
Cause, or (ii) by Cable for Good Reason, shall constitute a “Qualifying Termination” under
this Agreement.

     6. Compensation and Benefits Upon Events of Termination

     (a) Upon termination of this Agreement by FirstMerit for Just Cause, or by Cable’s
Resignation (or any other termination by Cable without Good Reason), the

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obligations of each of the parties hereunder shall expire as of the date of such
termination, including, without limitation, the obligations of FirstMerit to pay any
Compensation or Benefits to Cable provided, however, that the obligations contained in
Paragraph 7 shall survive the termination of this Agreement.

     (b) Upon any Qualifying Termination of this Agreement during the Agreement period, the
Agreement Period shall continue until December 31, 2006, and FirstMerit shall continue to
pay Cable Compensation and Benefits on the terms set forth below until December 31, 2006.

	 	1.	 	Compensation. FirstMerit shall continue to pay
Cable her Base Salary at the rate in effect at the time of her
termination of employment.
	 
	 	2.	 	Retirement, Medical and Life Insurance
Benefits. Cable shall continue to be covered and accrue service and
benefits under the plans described in Paragraph 4(a) and (b), as such
may be modified, enhanced or supplemented from time to time, until the
end of the Agreement Period. For this purpose, Cable shall be deemed
to be in full-time service with FirstMerit, and Cable’s Base Salary
shall be deemed to be at the rate in effect at the time of her
termination of employment.
	 
	 	3.	 	Stock Programs. To the extent not previously
granted, FirstMerit shall grant Cable the stock options and shares of
restricted stock contained in any such plan or agreement no later than
the date of termination. FirstMerit shall fully vest all stock
options, grants of restricted stock, stock appreciation rights or
similar arrangements granted to Cable as of the termination date.
Notwithstanding any provision of the plan or any grant agreement to the
contrary, Cable shall be given the longer of 90 days after the date of
termination, or the remaining period provided in the grant agreement,
to realize or exercise all such rights or options.
	 
	 	4.	 	Incentive Programs. FirstMerit shall continue
to pay Cable awards under the incentive programs, in an amount equal to
the incentive compensation payment Cable would receive if payout was
made at the “target” percentage under the programs, based upon Cable’s
Base Salary as determined under Paragraph 6(a), until the end of the
Agreement Period. In any event, Cable’s award under the Executive
Incentive Plan for 2004 shall not be less than $130,000.
	 
	 	5.	 	SERP. Cable shall continue to be covered and
accrue service and benefits under the SERP until the end of the
Agreement Period. For this purpose, Cable’s average monthly earnings
shall be

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	 	 	 	deemed to be her Base Salary as determined under Paragraph 6(a)
divided by 12 plus the incentive compensation payment Cable would
receive if payout was made at “target” percentage for Cable under the
Executive Incentive Bonus Plan in the year of the termination divided
by 12. These provisions shall supercede any less generous contrary
provisions of the SERP and any membership agreement executed between
Cable and FirstMerit.

     7. Trade Secrets and Confidential Information

     Cable acknowledges that, as Executive Vice President Wealth Services of FirstMerit
Corporation, she has had extensive access to and has acquired various confidential information
relating to the Business, including, but not limited to, financial and business records, customer
lists and records, business plans, corporate strategies, information disclosed or discussed during
any exit conference, employee information, wage information, and related information and other
confidential information (collectively, the “Confidential Information”). Cable agrees that the
Confidential Information is and will be of special and unique value to FirstMerit. Cable further
acknowledges and covenants that, at all times, the Confidential Information is the sole property of
FirstMerit and will constitute trade secrets and confidential information of FirstMerit, and that
her knowledge of the Confidential Information will enable her to compete with FirstMerit in a
manner likely to cause FirstMerit irreparable harm upon the use or disclosure of such matters.
Therefore, Cable hereby irrevocably covenants that she shall not, at any time after the date of
this Agreement, use or disclose to any third party, directly or indirectly, any of the Confidential
Information, except as permitted by this Agreement. Excluded from the definition of Confidential
Information is (a) information which is publicly available, other than as a result of actions by
Cable in breach of this Agreement; and (b) information which is disclosed by FirstMerit to third
parties on a non-confidential basis.

     8. Further Payments

     The Compensation and Benefits provided under this Agreement are not contingent on a change in
ownership or control of FirstMerit. However, in the event that any compensation or benefits paid
or distributed from FirstMerit to Cable pursuant to this Agreement, the Change in Control
Termination Agreement, the Displacement Agreement, or otherwise from FirstMerit to Cable, either
alone or with other compensation and benefits received by Cable (the “Covered Payments”) are or
become subject to the tax imposed by Internal Revenue Code Section 4999 or any similar tax (the
“Excise Tax”), First Merit shall pay to Cable an additional amount (the “Excise Tax Reimbursement”)
such that the net amount retained by Cable with respect to such Covered Payments, after deduction
of any Excise Taxes on the Covered Payments and any Federal, state and local income or employment
tax and Excise Tax on the Excise Tax Reimbursement, but before deduction for any Federal, state and
local income or employment tax withholding on such Covered Payments, shall be equal to the amount
of the Covered Payments.

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     9. Assignment

     This Agreement shall be binding upon the parties hereto, their respective heirs, personal
representatives, executors, administrators and successors; provided, however, that no assignment or
transfer of this Agreement by Cable including assignment or transfer by operation of law, shall be
valid without the prior written consent of FirstMerit. FirstMerit may freely assign this Agreement
without Cable’s consent.

     10. Governing Law

     This Agreement shall be construed under and governed by the internal laws of the State of Ohio
and properly venued in Summit County, Ohio. In the event that any provision of this Agreement shall
be held to be void or unenforceable by a court of competent jurisdiction, this Agreement shall not
be rendered null and void thereby but shall be construed and enforced as if such void or
unenforceable provision was not originally a part of this Agreement.

     11. Legal Fees

     From and after any Change in Control, FirstMerit shall pay all legal fees and expenses
incurred by Cable in enforcing any right or benefit provided by this Agreement.

     12. Entire Agreement

     This Agreement, the Change in Control Termination Agreement, the Displacement Agreement, and
the Indemnification Agreement, set forth the entire agreement of the parties herein with regard to
the employment of Cable and any oral or written statements, representations, agreements or
understandings made or entered into prior to or contemporaneously with the execution of this such
agreements, are hereby rescinded, revoked and rendered null and void by the parties. In the event
of inconsistencies, the terms of this Agreement shall supercede and control over any conflicting
language in the Change in Control Termination Agreement or the Displacement Agreement. Moreover,
the terms of the Change in Control Termination Agreement and the Displacement Agreement (the
“Supplemental Agreements”) are hereby specifically modified to provide that:

     (a) Paragraph 7 containing the “Overall Limitation on Benefits” in each of the
Supplemental Agreements shall be deleted.

     (b) Paragraph 10(a) regarding the term of the Change in Control Termination Agreement
shall be modified to read:

"(a) Except as provided in paragraph 6, the Employee’s employment with the
Company or any Subsidiary, before a Change in Control, or, after a Change in
Control, the Change Entity or any Related Entity, terminates before the
beginning of the Protection Period because the Employee (i) is removed for
Cause, (ii) is no longer an employee due to Disability, retirement or death,
or (iii) resigns not for Good Reason.”

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     (c) Paragraph 6(c) regarding payment of compensation and benefits under each of the
Supplemental Agreements shall be modified by the addition at the end thereof of a new
paragraph to read as follows:

“The compensation and benefits payable under this subparagraph (c) shall be
in addition to any compensation and benefits otherwise payable to the
Employee under any employment or other agreement(s) between the Company and
the Employee.”

     (d) Paragraph 4(c) regarding the circumstances constituting “Good Reason” shall be
modified so that subparagraphs (iv) and (v) are replaced in their entirety with the
following paragraphs:

"(iv) during any calendar year ending during the Protection Period (or any
fractional calendar year ending within the Protection Period), an
involuntary reduction in Employee’s Base Salary, unless such reduction
occurs simultaneously with an Employer-wide reduction in officers’ salaries.

(v) at any time during the Protection Period, involuntary relocation to
another office located more than 50 miles from Employee’s office location.”

     (e) Paragraph 4(c) regarding the circumstances constituting “Good Reason” shall be
modified so that subparagraph (vii) is revised to add the phrase “including paid vacation”
in the first phrase, after the words “material fringe benefit or compensation plan”, as
follows:

"(vii) at any time during the Protection Period, the Employer’s (u) failure
to continue in effect any material fringe benefit or compensation plan,
including paid vacation, retirement or deferred compensation plan. . . .”

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on the                     day
of April, 2005, to be effective the date above first written.

	 	 	 	 	 	 	 
	 	 	FIRSTMERIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Christopher J. Maurer
	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	Executive Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Terri L. Cable	 	 
	 	 	 	 	 
	 	 	Terri L. Cable	 	 

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