Document:

exv10w2

 

EXHIBIT 10.2

U.S. BANCORP

2005 EXECUTIVE EMPLOYEES DEFERRED COMPENSATION PLAN

 

 

U.S. BANCORP

2005 EXECUTIVE EMPLOYEES DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	ARTICLE I DEFINITIONS	 	 	2	 
	 

	 	 	1.1	 	 	Definitions
	 	 	2	 
	 

	 	 	1.2	 	 	Number and Gender
	 	 	7	 
	ARTICLE II PARTICIPATION BY SELECTED EMPLOYEES	 	 	8	 
	 

	 	 	2.1	 	 	Participation
	 	 	8	 
	 

	 	 	2.2	 	 	Cessation of Active Participation
	 	 	8	 
	ARTICLE III ANNUAL DEFERRALS	 	 	9	 
	 

	 	 	3.1	 	 	Deferral Election
	 	 	9	 
	 

	 	 	3.2	 	 	Effective Date of Deferral
	 	 	10	 
	ARTICLE IV ACCOUNTS	 	 	11	 
	 

	 	 	4.1	 	 	Establishment of Deferred Compensation Accounts
	 	 	11	 
	 

	 	 	4.2	 	 	Crediting/Debiting of Account
	 	 	11	 
	ARTICLE V DISTRIBUTIONS	 	 	14	 
	 

	 	 	5.1	 	 	In General
	 	 	14	 
	 

	 	 	5.2	 	 	Hardship Distributions
	 	 	14	 
	 

	 	 	5.3	 	 	Distributions to Incompetents
	 	 	14	 
	 

	 	 	5.4	 	 	Court Ordered Distributions
	 	 	15	 
	 

	 	 	5.5	 	 	Method of Payment
	 	 	15	 
	 

	 	 	5.6	 	 	Distribution to Pay Taxes
	 	 	16	 
	 

	 	 	5.7	 	 	Distribution for Code Section 409A Violation
	 	 	16	 
	 

	 	 	5.8	 	 	Distribution Upon Plan Termination
	 	 	16	 
	 

	 	 	5.9	 	 	Valuation of Distributions
	 	 	18	 
	 

	 	 	5.10	 	 	Right to Withhold Taxes
	 	 	18	 
	 

	 	 	5.11	 	 	Timing of Actual Distributions
	 	 	18	 
	 

	 	 	5.12	 	 	Limitations on Distribution
	 	 	18	 
	ARTICLE VI BENEFICIARIES	 	 	19	 

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	 	 	 	 	 	 	 	 	Page
	 

	 	 	6.1	 	 	Beneficiary Designation
	 	 	19	 
	 

	 	 	6.2	 	 	No Beneficiary Designation
	 	 	19	 
	ARTICLE VII FUNDING AND PARTICIPANT’S INTEREST	 	 	20	 
	 

	 	 	7.1	 	 	Plan Unfunded
	 	 	20	 
	 

	 	 	7.2.	 	 	Interests of Participants Under the Plan
	 	 	20	 
	ARTICLE VIII ADMINISTRATION AND INTERPRETATION	 	 	21	 
	 

	 	 	8.1	 	 	Administration
	 	 	21	 
	 

	 	 	8.2	 	 	Interpretation
	 	 	21	 
	 

	 	 	8.3	 	 	Records and Reports
	 	 	21	 
	 

	 	 	8.4	 	 	Payment of Expenses
	 	 	22	 
	 

	 	 	8.5	 	 	Indemnification for Liability
	 	 	22	 
	 

	 	 	8.6	 	 	Claims Procedure
	 	 	22	 
	ARTICLE IX AMENDMENT AND TERMINATION	 	 	25	 
	 

	 	 	9.1	 	 	In General
	 	 	25	 
	 

	 	 	9.2	 	 	Termination After Change in Control
	 	 	25	 
	ARTICLE X MISCELLANEOUS PROVISIONS	 	 	26	 
	 

	 	 	10.1	 	 	Information to be Furnished by Participants and Beneficiaries and Inability to Locate
	 	 	26	 
	 

	 	 	10.2	 	 	Right of the Company to Take Employment Actions
	 	 	26	 
	 

	 	 	10.3	 	 	No Alienation of Assignment of Benefits
	 	 	26	 
	 

	 	 	10.4	 	 	Construction
	 	 	27	 
	 

	 	 	10.5	 	 	Headings
	 	 	27	 
	 

	 	 	10.6	 	 	Agent for Legal Process
	 	 	27	 
	 

	 	 	10.7	 	 	Tax Treatment
	 	 	27	 
	APPENDIX A LIST OF AFFILIATES	 	 	A-1	 
	APPENDIX B MEASUREMENT FUNDS	 	 	B-1	 

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U.S. BANCORP

2005 EXECUTIVE EMPLOYEES DEFERRED COMPENSATION PLAN

     U.S. Bancorp currently maintains the U.S. Bancorp Corporation Deferred Compensation Plan
(formerly known as the Firstar Corporation Deferred Compensation Plan and the Star Banc Corporation
Deferred Compensation Plan) for the benefit of its and its Affiliates’ (as hereinafter defined)
eligible executive employees and outside Directors, the U.S. Bancorp Deferred Compensation Plan and
the Mercantile Bancorporation Inc. Voluntary Deferred Compensation Plan for the benefit of U.S.
Bancorp and its Affiliates’ eligible executive employees (collectively, such plans being referred
to as the “Prior Plans,” and individually, a “Prior Plan”) and the U.S. Bancorp Executive Employees
Deferred Compensation Plan. The purpose of this Plan is, in part, to consolidate the benefits
accrued under all Prior Plans not consolidated under the U.S. Bancorp Executive Employees Deferred
Compensation and the 2004 bonus deferrals (as defined in Section 2.1) under the U.S. Bancorp
Executive Employees Deferred Compensation Plan for eligible executive employees of U.S. Bancorp and
its Affiliates into a single deferred compensation plan, and any benefits provided under this Plan
shall be in lieu of any benefits accrued under any of the Prior Plans or 2004 bonus deferrals under
the U.S. Bancorp Executive Employees Deferred Compensation Plan. This Plan is intended to provide
specified benefits to a select group of executive management and highly compensated executive
employees who contribute materially to the continued growth, development and future business
success of U.S. Bancorp and its affiliates. This Plan shall be unfunded for tax purposes and for
purposes of Title I of ERISA. This Plan shall be effective as of January 1, 2005.

 

 

ARTICLE I

DEFINITIONS

     1.1 Definitions. Whenever the following initially capitalized words and phrases are
used in this Plan, they shall have the meanings specified below unless the context clearly
indicates otherwise:

     (1) The term “Affiliate” (a) shall mean any corporation, limited liability company,
partnership or other entity designated by the Board or Committee as an affiliate of the
Company and (b) automatically shall include any “Affiliate,” as defined in Rule 12b-2
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For
purposes of the first sentence in Section 1.1(7), clause (b) shall not apply.

     (2) The term “Base Pay,” with respect to a Selected Employee or a Participant, shall
mean his regular gross annual base salary, which shall include any amounts that he would
have received from the Employer while an Employee but for any deferral election under this
Plan or any other deferred compensation plan (including qualified retirement plans) or
cafeteria plan (including flexible spending account arrangements) sponsored by the Employer.

     (3) The term “Beneficiary” shall mean such person or legal entity as may be designated
by a Selected Employee or a Participant in accordance with Article VI or otherwise entitled
under Section 6.1 to receive benefits hereunder upon the death of such Selected Employee
Participant.

     (4) The term “Benefit Commencement Date” shall mean (i) with respect to a Participant
who is a Key Employee for the Plan Year in which the earlier of his Retirement or
Termination of Employment with the Employer occurs, the first Valuation Date following the
end of the six (6)-month period commencing on the earlier of his Retirement or Termination
of Employment with the Employer and (ii) with respect to a Participant who is not a Key
Employee for the Plan Year in which the earlier of his Retirement or Termination of
Employment with the Employer occurs, the first Valuation Date following the earlier of his
Retirement or Termination of Employment with the Employer.

     (5) The term “Board” or “Board of Directors” shall mean the Board of Directors of the
Company.

     (6) The term “Bonus,” with respect to a Selected Employee or a Participant, shall mean
his annual bonus amounts earned from the Employer under its applicable annual bonus plan.

     (7) The term “Change in Control” shall mean a change in the ownership or effective
control of the Company or in the ownership of a substantial portion of the

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Company’s assets but only if such change satisfies the requirements of Code Section
409A(a)(2)(A)(v) and the regulations and administrative guidance issued thereunder.
Notwithstanding the foregoing to the contrary, for purposes of Section 9.2, “Change in
Control” shall mean any of the following occurring after the Effective Date:

	 	(a)	 	The acquisition by any Person (as defined in Section
1.1(7)(e)(2)) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 35% or more of either (1) the then
outstanding shares of Common Stock (as defined in Section 1.1(7)(e)(1)) (the
“Outstanding Company Common Stock”) or (2) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this clause (a), the
following acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Company, (ii) any acquisition by the Company,
(iii) any acquisition by a subsidiary of the Company or any employee benefit
plan (or related trust) sponsored or maintained by the Company or a subsidiary
of the Company (a “Company Entity”) or (iv) any acquisition by any corporation
pursuant to a transaction that complies with clause (i), (ii) or (iii) of this
clause (a); or
	 
	 	(b)	 	Individuals who, as of the Effective Date, constitute the Board
of Directors (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board of Directors (except as a result of the death,
retirement or disability of one or more members of the Incumbent Board);
provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for election by
the Company’s shareholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, (1) any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Incumbent Board, (2) any
director designated by or on behalf of a Person who has entered into an
agreement with the Company (or which is contemplating entering into an
agreement) to effect a Business Combination (as defined in Section 1.1(7)(c)
with one or more entities that are not Company Entities or (3) any director who
serves in connection with the act of the Board of Directors of increasing the
number of directors and filling vacancies in connection with, or in
contemplation of, any such Business Combination; or
	 
	 	(c)	 	Consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of the
Company (a “Business Combination”), in each case, unless, following such
Business

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	 	 	 	Combination, (1) all or substantially all of the individuals and entities
who were the beneficial owners, respectively, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more
than 50% of, respectively, the then outstanding shares of common stock or
the combined voting power of the then outstanding voting securities entitled
to vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without
limitation, a corporation that, as a result of such transaction, owns the
Company or all or substantially all of the Company’s assets either directly
or through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such Business Combination, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities,
as the case may be, (2) no Person (excluding any Company Entity or such
corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 35% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership
existed prior to the Business Combination and (3) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board of
Directors, providing for such Business Combination; or
	 
	 	(d)	 	Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.
	 
	 	(e)	 	For purposes of this Section 1.1(7) and to the extent not inconsistent with the
requirements of Code Section 409A, the following definitions shall apply:
 

	 	(1)	 	“Common Stock” shall mean the common stock of the Company.
	 
	 	(2)	 	“Person” shall be defined as defined in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

      (8) The term “Code” shall mean the Internal Revenue Code of 1986, as amended.

      (9) The term “Committee” shall mean the Compensation Committee of the Board or any
other Committee of the Board designated by the Board to administer the Plan.

      (10) The term “Company” shall mean U.S. Bancorp or any successor thereto.

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      (11) The term “Deferrals” shall mean that portion of the Selected Employee’s or
Participant’s Eligible Base Pay and/or Eligible Bonus that the Selected Employee or
Participant voluntarily and irrevocably elects to defer pursuant to Section 3.1 of the Plan
in accordance with a Deferred Compensation Agreement.

      (12) The term “Deferred Compensation Account” shall mean the recordkeeping account
established by the Company for each Participant to which his Deferrals are credited and from
which distributions to the Participant or to his Beneficiary are made.

      (13) The term “Deferred Compensation Account Balance” or “Account Balance” shall mean,
with respect to a Participant, the total amount credited to that Participant’s Deferred
Compensation Account. The “Deferred Compensation Account Balance” or “Account Balance”
shall be a bookkeeping entry only and shall be utilized solely as a device for the
measurement and determination of amounts to be paid to a Participant, or such Participant’s
Beneficiary, under the Plan.

      (14) The term “Deferred Compensation Agreement” shall mean a document (or documents) as
provided from time to time by the Company or the Committee pursuant to which a Selected
Employee voluntarily enrolls as a Participant under the Plan and irrevocably elects to defer
the eligible portion of his Eligible Base Pay and/or Eligible Bonus pursuant to Section 3.1
of the Plan. In the case of a Prior Plan Participant (as defined in Section 2.1), “Deferred
Compensation Agreement” shall mean a document (or documents) as provided from time to time
from the Company or Committee pursuant to which such Participant elects to transfer his
accrued benefit under each of the Prior Plans to this Plan and to look solely to this Plan
in satisfaction of the Employer’s obligation under this Plan and any Prior Plan.

      (15) The term “Disability” shall mean a period of disability during which a Participant
qualifies for permanent disability benefits payable to the Participant under the Company’s
long-term disability plan or, if the Participant does not participate in such a plan, the
period of permanent disability during which the Participant would have qualified for
permanent disability benefits under such a plan had the Participant been a participant in
such a plan, as determined by the Committee in its sole discretion. Notwithstanding the
foregoing, if a Participant is a party to an employment agreement with the Employer,
“Disability” shall mean the period of disability described in such employment agreement.

      (16) The term “Effective Date” shall mean January 1, 2005.

      (17) The term “Eligible Base Pay,” with respect to a Selected Employee or Participant
for any Plan Year, shall mean the portion of his Base Pay for that Plan Year that is
attributable to services performed during such Plan Year and after the effective date of any
deferral election under Section 3.1 (determined in accordance with Section 3.2) concerning
such Base Pay.

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      (18) The term “Eligible Bonus,” with respect to a Selected Employee or Participant for
any Plan Year, shall mean the portion, if any, of his Bonus for that Plan Year that is
attributable to services performed during that Plan Year and after the effective date of any
deferral election under Section 3.1 (determined in accordance with Section 3.2) concerning
such Bonus.

      (19) The term “Employee” shall mean a person who is treated by the Employer as a common
law employee of the Employer.

      (20) The term “Employer” shall mean the Company and any of its Affiliates that are
described in Appendix A and that have adopted the Plan as a participating employer. To the
extent required by Code Section 409A and the regulations and administrative guidance issued
thereunder, “Employer” shall mean the Company and any other corporation, limited liability
company, partnership or other entity or person with whom the Company would be considered a
single employer under Code Section 414(b) and/or Code Section 414(c).

      (21) The term “ERISA” shall mean the Employee Retirement Income Security Act of 1974,
as it may be amended from time to time.

      (22) The term “Financial Hardship,” with respect to a Participant, shall mean a severe
financial hardship and unexpected need for cash resulting from a sudden and unexpected: (i)
illness or accident of that Participant, the Participant’s spouse or the Participant’s
dependent (as defined in Code Section 152(a)); (ii) loss of such Participant’s property due
to casualty (including the need to rebuild a home following damage to a home not otherwise
covered by insurance); or (iii) such other similar extraordinary and unforeseeable
circumstances or emergencies arising as a result of events beyond the control of such
Participant, all as determined by the Committee based on all the relevant facts and
circumstances and in accordance with the requirements of Code Section 409A(a)(2)(B)(ii)(I).

      (23) The term “Key Employee,” with respect to any Employee for any Plan Year, shall
include such Employee if such Employee was a key employee (as defined in Code Section 416(i)
without regard to paragraph (5) thereof) of the Company as of the “identification date” for
the Plan Year in which the earlier of such Employee’s Retirement or Termination of
Employment with the Employer occurs (the “Termination Plan Year”). For purposes of this
paragraph (23), the “identification date” for a Termination Plan Year shall be September 30
of the calendar year ending immediately before the beginning of such Termination Plan Year.

      (24) The term “Participant” shall mean (a) a Selected Employee (i) who has elected to
participate in the Plan and to defer the eligible portion of such Participant’s Eligible
Base Pay and/or Eligible Bonus under an executed Deferred Compensation Agreement, and (ii)
whose participation in the Plan has not been terminated and (b) any individual who becomes a
participant under Section 2.1.

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      (25) The term “Plan” shall mean the U.S. Bancorp 2005 Executive Employees Deferred
Compensation Plan.

      (26) The term “Plan Year” shall mean a calendar year beginning each January 1 and
ending each December 31.

      (27) The term “Retirement,” “Retire(s)” or “Retired” shall mean termination of
employment (other than for gross and willful misconduct) with the Employer on or after
attainment of age 591/2 with 10 or more years of employment with the Employer (based on the
individual’s latest date of hire by the Employer) for any reason other than death or
Disability but only to the extent such Participant is determined by the Committee (or its
designee) to have suffered a “separation from service” (within the meaning of Code Section
409A(a)(2)(A)(i) and the regulations and administrative guidance issued thereunder).

      (28) The term “Selected Employee” shall mean an Employee selected to participate in
this Plan under the provisions, and in accordance with the requirements, of Section 2.1.

      (29) The term “Shares” shall mean shares of common stock of the Company.

      (30) The term “Termination of Employment” shall mean the termination of employment with
the Employer, voluntarily or involuntarily, for any reason other than Retirement or death
but only to the extent such Participant is determined by the Committee (or its designee) to
have suffered a “separation from service” (within the meaning of Code Section
409A(a)(2)(A)(i) and the regulations and administrative guidance issued thereunder).

      (31) The term “Valuation Date” shall mean each day on which the New York Stock Exchange
is open for business.

     1.2 Number and Gender. Whenever any words used herein are in the singular form, they
shall be construed as though they were also used in the plural form in all cases where they would
so apply, and references to the male gender shall be construed as applicable to the female gender
where applicable, and vice versa.

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ARTICLE II

PARTICIPATION BY SELECTED EMPLOYEES

     2.1 Participation. Participation in the Plan is limited to Employees designated and
selected by the Committee or the Board. A Selected Employee shall become a Participant in the Plan
effective as of the date designated by the Board or Committee if he is then a Selected Employee but
in no event before execution and delivery by such Selected Employee of a Deferred Compensation
Agreement pursuant to Section 3.1 hereof and approval by the Committee (or its designee). Any
Selected Employee who was a participant in any of the Prior Plans on December 31, 2004 (a “Prior
Plan Participant”) shall become a participant in this Plan as of January 1, 2005 provided that such
Participant has duly executed and delivered to the Committee by December 31, 2004 his Deferred
Compensation Agreement. In addition, any Employee who (a) was a participant in the U.S. Bancorp
Executive Employees Deferred Compensation Plan and (b) made an election under such Plan to defer
all or a portion of his or her 2004 bonus amounts determined in 2005 and that would otherwise be
payable in 2005 (the “2004 bonus deferrals”) shall automatically become a participant in this Plan
as of January 1, 2005. The fact that an Employee is a Selected Employee and a Participant in one
Plan Year does not mean that he will continue to be a Selected Employee and a Participant for all
Plan Years thereafter.

     2.2 Cessation of Active Participation. A Participant who (i) suffers a Termination of
Employment, Retires or dies, or (ii) ceases to be a Selected Employee shall immediately thereupon
cease active participation in the Plan. Notwithstanding the foregoing, if the Committee determines
in good faith that a Participant is not a member of a select group of management or highly
compensated employees, as membership in such group is determined in accordance with ERISA Sections
201(2), 301(a)(3) and 401(a)(1), the Committee may, in its sole discretion, terminate such
Participant’s status as a Selected Employee. Nothing in this Plan shall prevent the Committee from
terminating prospectively an individual’s status as a Selected Employee.

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ARTICLE III

ANNUAL DEFERRALS

     3.1 Deferral Election. (a) On or before December 31 of each calendar year, each
Selected Employee may irrevocably elect, by completing and executing an appropriate Deferred
Compensation Agreement and delivering it to the Committee (or its designee), to defer (a “deferral
election”) under the Plan any portion up to (1) 100% of such Selected Employee’s Eligible Base Pay
for the Plan Year immediately following such calendar year and/or (2) 100% of such Selected
Employee’s Eligible Bonus for the Plan Year immediately following such calendar year.

     (b) In the case of a Selected Employee’s Plan Year in which such Selected Employee is first
eligible to become a Participant in the Plan and has never participated in any other plan required
to be aggregated with this Plan with respect to such Selected Employee under Code Section 409A and
the applicable provisions of the regulations and administrative guidance issued thereunder, within
thirty (30) days after the earliest date designated by the Board or Committee as of which such
Selected Employee is first eligible to become a Participant in the Plan, each such Selected
Employee, in lieu of making a deferral election in accordance with Section 3.1(a), may irrevocably
elect, by completing and executing an appropriate Deferred Compensation Agreement and delivering it
to the Committee (or its designee), to defer (a “deferral election”) under the Plan any portion up
to (1) 100% of such Selected Employee’s Eligible Base Pay for services performed immediately after
the effective date of his deferral election to the end of the Plan Year and/or (2) 100% of the
portion of such Selected Employee’s Eligible Bonus for services performed immediately after the
effective date of his deferral election to the end of the Plan Year. The determination of the
portion of a Selected Employee’s Eligible Base Pay and/or Eligible Bonus for services performed
immediately after the effective date of his deferral election to the end of the Plan Year shall be
made in a manner not inconsistent with the requirements of Code Section 409A and the regulations
and administrative guidance issued thereunder.

     (c) Unless a Selected Employee’s deferral election meets the requirements of Section 3.1(a) or
(b) above for the applicable Plan Year, no portion of such Selected Employee’s Eligible Base Pay or
Eligible Bonus for that Plan Year shall be deferred under the Plan for that Plan Year.

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In addition, notwithstanding Sections 3.1(a) and (b) above, (i) to the extent the amount of
Deferrals attributable to Eligible Base Pay or the amount of Deferrals attributable to Eligible
Bonus of a Selected Employee or Participant for any Plan Year is expected to be less than
$1,000.00, no portion of his Eligible Base Pay or Eligible Bonus, as applicable, for that Plan Year
shall be deferred under the Plan; and (ii) effective January 1, 2006, the amount of Deferrals made
under the Plan for any Plan Year beginning after December 31, 2005 with respect to any Selected
Employee or Participant shall be reduced by the amount, if any, necessary to pay the following
amounts attributable to such Deferrals: (A) the FICA Amount (as defined in Section 5.6); (B) the
income tax at source on wages imposed under Code Section 3401 or the corresponding withholding
provisions of applicable state, local or foreign tax laws as a result of the payment of the FICA
Amount; and (C) the additional income tax at source on wages attributable to the pyramiding Code
Section 3401 wages and taxes.

     3.2 Effective Date of Deferral. A Selected Employee’s deferral election under Section
3.1 with respect to such Selected Employee’s Eligible Base Pay and/or Eligible Bonus for a Plan
Year shall be effective and irrevocable upon (a) delivery (and approval) of an applicable Deferred
Compensation Agreement to (by) the Committee (or its designee) and (b) expiration of the deadline
for making such deferral election, as provided under Section 3.1.

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ARTICLE IV

ACCOUNTS

     4.1 Establishment of Deferred Compensation Accounts. For purposes of the Plan, the
Company shall cause a separate Deferred Compensation Account to be established in the name of each
Participant. Each Prior Plan Participant shall receive a credit to such Participant’s Deferred
Compensation Account at the beginning of January 1, 2005 equal to the sum of the amounts credited
to such Participant’s accounts under each Prior Plan on December 31, 2004 and such amounts shall be
thereafter adjusted in accordance with Section 4.2 and administered in accordance with the terms of
this Plan. A Participant’s 2004 bonus deferrals, if any, shall be credited to such Participant’s
Deferred Compensation Account as soon as administratively feasible on or after the date such
deferrals would have otherwise been paid to such Participant if they were not deferred but only if
such deferrals are not credited to the Participant’s deferred compensation account under the U.S.
Bancorp Executive Employees Deferred Compensation Plan. The Deferrals of a Participant shall be
credited to such Participant’s Deferred Compensation Account as soon as administratively feasible
on or after the date such Deferrals would have otherwise been paid to such Participant if they were
not deferred. All amounts credited to a Participant’s Deferred Compensation Account shall be
adjusted in the manner determined under Section 4.2.

     4.2 Crediting/Debiting of Account. In accordance with, and subject to, the rules and
procedures that are established from time to time by the Committee (or its designee), in its sole
discretion, a Participant’s Deferred Compensation Account Balance shall be adjusted in accordance
with the following rules:

     (a) Election of Measurement Funds. Each Selected Employee or Prior Plan
Participant shall elect on his or her Deferred Compensation Agreement or such other form
designated by the Committee (or its designee) for such purpose the Measurement Fund(s) that
will be used to determine the adjustment amounts to be credited to or debited from his or
her Deferred Compensation Account for the applicable Plan Year or portion thereof in which
the Selected Employee or Prior Plan Participant commences participation in the Plan and
continuing thereafter for each subsequent Plan Year in which such Selected Employee or
Participant participates in the Plan, unless changed in accordance with the next sentence.
Commencing with the first calendar quarter beginning after a Participant’s commencement of
participation in the Plan and continuing thereafter for each calendar quarter in which the Participant participates in the Plan,
but no later than the last Valuation Date in the applicable calendar quarter, the
Participant

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may (but is not required to) elect, by submitting such election on a form
designated by the Committee (or its designee) for such purpose to the Committee (or its
designee) that is accepted and approved by the Committee (or its designee) or in such other
manner required by the Committee (or its designee), to change the Measurement Fund(s) to be
used to determine the adjustment amounts to be credited to or debited from such
Participant’s Deferred Compensation Account. If an election is made in accordance with the
previous sentence, it shall apply no later than the Valuation Date immediately following the
date of receipt and approval by the Committee (or its designee) and shall continue
thereafter for each subsequent calendar quarter in which the Participant participates in the
Plan, unless changed in accordance with the previous sentence.

     (b) Proportionate Allocation. Any election under Section 4.2(a) above shall
result in 100% of a Participant’s Deferred Compensation Account Balance being allocated
among the Measurement Fund(s) elected by the Participant as if the Participant was making an
actual investment in the Measurement Fund(s) equal to the portion of such Participant’s
Deferred Compensation Account Balance allocated to such Measurement Fund(s).

     (c) Measurement Funds. A Participant must elect at least one of the
Measurement Funds described in Appendix B for the purpose of determining the manner in which
such Participant’s Deferred Compensation Account Balance is to be adjusted. The Measurement
Funds established by the Committee (or its designee) and described in Appendix B shall
include a Company stock fund, which will be invested in Shares, mutual funds selected and
approved by the Committee (or its designee) and a money market fund selected and approved by
the Committee (or its designee). The Committee (or its designee) shall duly consider, but
is not required to approve, the Participant’s requested election of the Measurement Fund or
Funds or the Participant’s requested change in the Measurement Fund or Funds. In all
events, the Participant’s Deferred Compensation Account Balance shall be determined by
reference to such Measurement Fund(s) as the Committee (or its designee) shall have selected
from time to time with respect to the Participant’s Deferred Compensation Account Balance.
As necessary, the Committee (or its designee) may, in its sole discretion, discontinue,
substitute or add a Measurement Fund(s). Each such action will take effect as of the
earliest Valuation Date that follows by at least 30 days the date as of which the Committee
(or its designee) gives Participants advance written notice of such change unless the
Committee (or its designee) determines circumstances warrant a shorter advance notice.

     (d) Crediting or Debiting Method. The performance of the elected Measurement
Fund(s) (either positive or negative) will be determined by the Committee (or its designee),
in its sole discretion, based on the performance of the Measurement Fund(s) itself (taken
into account the reinvestment of dividends, capital gains and interest income distributions
therefrom). A Participant’s Deferred Compensation Account Balance shall be debited or
credited as of the end of each Valuation Date, based on the performance of the applicable
Measurement Fund(s) (at the closing price on such Valuation Date) selected by the
Participant, as determined by the Committee (or its designee) in its sole discretion, as
though (i) the Participant’s Deferred Compensation Account Balance was invested in the Measurement Fund(s) in the manner selected by the
Participant and in effect as of the end of each such Valuation Date (at the closing price on

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such Valuation Date); (ii) any Deferrals, 2004 bonus deferrals and any other amounts
credited to the Participant’s Deferred Compensation Account on that Valuation Date were
invested in the Measurement Fund(s) (at the closing price on such Valuation Date) selected
by the Participant and in effect as of the end of that Valuation Date; and (iii) any
distribution made to a Participant that decreases such Participant’s Deferred Compensation
Account Balance ceased to be invested in the applicable Measurement Fund(s) (at the closing
price on such Valuation Date) as of the Valuation Date immediately preceding the date as of
which such distribution occurred.

     (e) No Actual Investments. Notwithstanding any other provision of this Plan
that may be interpreted to the contrary, the Measurement Funds are to be used for
measurement purposes only, and a Participant’s election or deemed election of any such
Measurement Fund(s), the allocation of his or her Deferred Compensation Account Balance
thereto, the calculation of adjustment amounts and the crediting or debiting of such amounts
to a Participant’s Deferred Compensation Account Balance shall not be considered or
construed in any manner as an actual investment of such Participant’s Deferred Compensation
Account Balance in any such Measurement Fund. If the Company decides to invest funds in any
or all of the Measurement Funds, no Participant shall have any rights in or to such
investments themselves. Without limiting the foregoing, a Participant’s Deferred
Compensation Account Balance shall at all times be a bookkeeping entry only and shall not
represent any investment made on such Participant’s behalf by the Company. The Participants
shall, at all times, remain unsecured creditors of the Company.

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ARTICLE V

DISTRIBUTIONS

     5.1 In General. Except as otherwise provided in this Article V, the Deferred
Compensation Account Balance of a Participant shall be payable to such Participant (or, in the case
of the death of a Participant, his Beneficiary) in the manner determined under Section 5.5.

     5.2 Hardship Distributions. At any time before payment in full of amounts credited to
the Deferred Compensation Account of a Participant, the Participant may submit a written request to
the Committee (or its designee) for the distribution of all or a portion of such Participant’s
Deferred Compensation Account Balance because of a Financial Hardship. Any such request must show
sufficient facts as are necessary to establish that a Financial Hardship with respect to such
Participant has occurred. If the Committee (or its designee) grants such request, (a) the
Committee (or its designee) shall cancel the Participant’s deferral election under Section 3.1 for
the remaining part of the Plan Year in which a payment under this Section 5.2 was made as a result
of such Financial Hardship and (b) the amounts distributed with respect to such Financial Hardship
shall not exceed the amounts necessary to satisfy such Financial Hardship (which shall include
amounts necessary to pay Federal, state and local income taxes and penalties reasonably anticipated
to result from the distribution), after taking into account the extent to which such Financial
Hardship is or may be relieved through reimbursement or compensation by insurance or otherwise, by
liquidation of the Participant’s assets (to the extent the liquidation of such assets would not
itself cause severe financial hardship) or by cessation of such Participant’s deferral election
under this Section 5.2. Any payment made under this Section 5.2 shall be made in a lump sum as of
the date on which such Financial Hardship occurs and shall be subject to the requirements and
limitations of Code Section 409A(a)(2)(B)(ii)(II) and the regulations and administrative guidance
issued thereunder.

     5.3 Distributions to Incompetents. If the Committee (or its designee) determines, in
its discretion, that a payment under the Plan is to be made to a minor, a person declared
incompetent or to a person incapable of handling his or her property, the Committee (or its
designee) may direct such payment to the guardian, legal representative or person having the care
and custody of such minor, incompetent or incapable person. The Committee (or its designee) may require proof of minority,
incompetence, incapacity or guardianship, as it may

-14-

 

deem appropriate prior to making such payment.
Any such payment shall be a payment for the account of the Participant and a Beneficiary, as the
case may be, and shall be a complete discharge of any liability under the Plan for such payment
amount.

     5.4 Court Ordered Distributions. The Committee (or its designee) is authorized to
make any payments required by a domestic relations order (as defined in Code Section 414(p)(1)(B))
to an individual other than the Participant whose Deferred Compensation Account is the subject of
such order at the time and in the manner necessary to fulfill such order.

     5.5 Method of Payment. Each Participant shall elect (a “distribution election”) the
manner in which his or her Deferred Compensation Account Balance attributable to each Plan Year’s
Deferrals under this Plan will be distributed to him or her at the time he or she makes a deferral
election under Section 3.1. Any such distribution election shall be irrevocable after it is made
and approved by the Committee (or its designee) and shall apply only to Deferrals for the Plan Year
for which such deferral election was made. A Participant may elect among the following forms of
payment: a lump sum or annual installments over a five (5)-year, ten (10)-year, fifteen (15)-year
or twenty (20)-year period. Unless otherwise elected by a Participant in the Deferred Compensation
Agreement for the applicable Plan Year and approved by the Committee (or its designee) and unless
otherwise described below, distributions of such Participant’s Deferred Compensation Account
Balance shall be made as of his Benefit Commencement Date in a lump sum in cash or in property
consisting of the Measurement Fund(s) most recently approved to be used for determining the amounts
to be credited or debited from such Participant’s Deferred Compensation Account, as elected by the
Participant and approved by the Committee (or its designee). If a Participant dies before payment
of any amounts payable under the Plan with respect to him or her commences, such Participant’s
Deferred Compensation Account Balance shall be paid in a lump sum to such Participant’s Beneficiary
as of the first Valuation Date following the Committee’s (or its designee’s) receipt of sufficient
notice of such Participant’s death. If a Participant dies after payment of any portion of amounts
payable under the Plan with respect to him or her commences but before all amounts payable under
the Plan with respect to him or her have been paid, any such remaining amounts shall be paid to such Participant’s Beneficiary in a lump sum as of the
first Valuation Date following the Committee’s (or its designee’s) receipt of sufficient notice of
such Participant’s death. Notwithstanding the foregoing, any lump sum distributions of the
Deferred Compensation

-15-

 

Account Balance of a Participant that reflects a deemed investment in the
Company stock fund shall (unless otherwise determined by the Committee) be distributed in Shares,
except that any deemed fractional Shares shall be paid in cash. Notwithstanding the foregoing, the
distribution of any portion of a Participant’s Deferred Compensation Account Balance attributable
to his or her benefits under a Prior Plan, if any, shall be made in the same payment form that was
in effect for such benefits under such Prior Plan as of December 31, 2004, and, if no such payment
form was in effect under such Prior Plan as of December 31, 2004, distribution of such amount shall
be made in a lump sum in accordance with this Section 5.5.

     5.6 Distribution to Pay Taxes. To the extent permitted under Code Section 409A and/or
the administrative guidance and regulations issued thereunder, the Committee (or its designee) may
distribute the portion of a Participant’s Deferred Compensation Account Balance necessary to pay
(i) the Federal Insurance Contributions (“FICA”) tax imposed under Code Section 3101, 3121(a) and
3121(v)(2), where applicable, on amounts deferred under this Plan (the “FICA Amount”), (ii) the
income tax at source on wages imposed under Code Section 3401 or the corresponding withholding
provisions of applicable state, local or foreign tax laws as a result of the payment of the FICA
Amount and (iii) the additional income tax at source on wages attributable to the pyramiding Code
Section 3401 wages and taxes. However, the total payment under this Section 5.6 may not exceed the
aggregate of the FICA Amount and the income tax withholding related to such FICA Amount. Any
amount distributed under this Section 5.6 shall be used solely to pay the FICA Amount and the
income tax withholding related to such FICA Amount.

     5.7 Distribution for Code Section 409A Violation. If the Plan fails to meet the
requirements of Code Section 409A with respect to a Participant, the Committee (or its designee)
may distribute such Participant’s Deferred Compensation Account Balance as soon as administratively
feasible following discovery of such failure, but only to the extent of the amount required to be
included in such Participant’s gross income as a result of the failure to comply with the requirements
of Code Section 409A and the regulations issued thereunder.

     5.8 Distribution Upon Plan Termination. Upon the termination of this Plan, the
Committee (or its designee) may distribute a Participant’s Deferred Compensation Account

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Balance as
soon as administratively feasible following such termination, provided that one of the following
conditions is satisfied:

     (a) Such Plan termination occurs, at the Committee’s (or its designee’s) discretion,
within twelve months of a corporate dissolution of the Employer taxed under Code Section 331
or with the approval of a bankruptcy court under Title 11 U.S.C. Section 503(b)(1)(A),
provided that each Participant’s Deferred Compensation Account Balance is included in the
applicable Participant’s gross income in the latest of:

     (1) The calendar year in which the Plan terminates;

     (2) The calendar year in which such Deferred Compensation Account Balance is no
longer subject to a substantial risk of forfeiture; or

     (3) The first calendar year in which such distribution is administratively
practicable;

     (b) Such Plan termination occurs, at the Committee’s (or its designee’s) discretion,
within the thirty (30) days preceding or the twelve (12) months following a Change in
Control. For purposes of this Section 5.8, the Plan will be treated as terminated only if
all substantially similar plans or arrangements sponsored by the Employer are terminated so
that each Participant in the Plan and all participants under substantially similar plans or
arrangements are required to receive all amounts of compensation deferred under this Plan
and the other terminated plans or arrangements within twelve (12) months of the date of
termination of the Plan and other substantially similar plans or arrangements;

     (c) Such Plan termination occurs, at the Employer’s discretion, at any time, provided
that, with respect to a Participant in the Plan:

     (1) All plans or arrangements sponsored by the Employer that would be
aggregated with the Plan under Code Section 409A and the applicable provisions of
the regulations and administrative guidance issued thereunder if such Participant
participated in all of such plans or arrangements (the “Aggregated Participant
Plans”) are terminated.

     (2) No payments other than payments that would be payable under the terms of
that Participant’s Aggregated Participant Plans if the Plan termination had not occurred are made within twelve (12) months of the termination of the
Participant’s Aggregated Participant Plans;

     (3) All payments are made within twenty-four (24) months of the termination of
such Participant’s Aggregated Participant Plans; and

     (4) The Employer does not adopt at any time within five (5) years following the
date of termination of the Plan a new arrangement that would

-17-

 

become a part of that
Participant’s Aggregated Participant Plans if that Participant participated both in
such new arrangement and the Plan.

     5.9 Valuation of Distributions. All distributions under the Plan shall be based upon
a Participant’s Deferred Compensation Account Balance as of the end of the Valuation Date
immediately preceding the date of distribution.

     5.10 Right to Withhold Taxes. To the extent required by law in effect at the time a
distribution or payment is made from the Plan, the Company or its agents shall have the right to
withhold or deduct from any distributions or payments any taxes required to be withheld by Federal,
state or local governments. In addition, the Company may withhold from a Participant’s
nondeferred compensation, any applicable payroll taxes that may be due at the time any Deferral was
made under the Plan.

     5.11 Timing of Actual Distributions. Any distribution or payment of any portion of a
Participant’s Deferred Compensation Account Balance shall be treated as made as of the date
designated under the applicable provisions of this Article V only if (a) such distribution or
payment does not occur before such date and (b) such distribution or payment actually occurs by the
applicable deadline permitted for such distribution or payment under Code Section 409A and the
regulations and administrative guidance issued thereunder.

     5.12 Limitations on Distribution. Except as otherwise provided in this Article V, no
distribution of any portion of a Participant’s Deferred Compensation Account Balance (and no
acceleration of the time or schedule of any payment or amount scheduled to be paid pursuant to a
payment under the Plan) shall be permitted under the Plan.

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ARTICLE VI

BENEFICIARIES

     6.1 Beneficiary Designation. Each Participant from time to time may designate any
person or persons (who may be named contingently or successively) to receive such benefits as may
be payable under the Plan upon or after the death of a Participant, and such designation may be
changed from time to time by the Participant by filing a new designation. Each designation shall
revoke all prior designations by such Participant, shall be in a form prescribed by the Committee
(or its designee), and shall be effective only when approved by the Committee (or its designee)
during the Participant’s lifetime.

     6.2 No Beneficiary Designation. In the absence of a valid Beneficiary designation, or
if, at the time any Plan payment is due to a Beneficiary, there is no living Beneficiary validly
named by the Participant, the Committee (or its designee) shall pay any such Plan payment to the
Participant’s spouse, or, if none, to the Participant’s lawful issue, per stirpes or, if none to
the Participant’s estate. In determining the existence or identity of anyone entitled to receive a
Plan payment as aforesaid, or if a dispute arises with respect to any such payment, then,
notwithstanding the foregoing, the Committee (or its designee), in its sole discretion, may
distribute such payment to the estate of the Participant without liability for any taxes or other
consequences that might flow therefrom, or may take such other action as the Committee (or its
designee) deems to be appropriate, provided that such action is not inconsistent with the
requirements of Code Section 409A and the regulations and administrative guidance issued
thereunder.

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ARTICLE VII

FUNDING AND PARTICIPANT’S INTEREST

     7.1 Plan Unfunded. The Plan shall be unfunded and no trust or special deposit shall
be created, or deemed to be created, by the Plan or the Company. The crediting of amounts to the
Deferred Compensation Account of a Participant shall be made through recordkeeping entries. No
actual funds or Shares shall be segregated, reserved, or otherwise set aside; provided, however,
that nothing herein shall prevent the Company from establishing one or more grantor trusts from
which distributions due under the Plan may be paid. All distributions shall be paid by the Company
from its general assets and/or from one or more grantor trusts established by the Company and a
Participant or a Beneficiary shall have the rights of a general, unsecured creditor against the
Company for any distributions due hereunder. The benefits provided to Participants under the Plan
constitute a mere promise by the Company to make such payments in the future.

     7.2. Interests of Participants Under the Plan. Each Participant has an interest only
in the cash value of his or her Deferred Compensation Account. No Participant shall have any right
or interest in any specific fund, stock or securities.

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ARTICLE VIII

ADMINISTRATION AND INTERPRETATION

     8.1 Administration. The Plan shall be administered by the Committee, which may
delegate all or a portion of its duties to one or more employees of the Company. The Committee
has, to the extent appropriate and in addition to the powers described elsewhere in the Plan, full
discretionary authority to construe and interpret the terms and provision of the Plan; to make
factual determinations concerning a Participant’s eligibility for benefits under the Plan and other
administrative matters relating to a Participant’s Deferred Compensation Account; to adopt, alter
and repeal administrative rules, guidelines and practices governing the Plan; to perform all acts,
including the delegation of its administrative responsibilities to advisors or other persons who
may or may not be employees of the Company; and to rely upon the information or opinions of legal
counsel or experts selected to render advice with respect to the Plan, as it shall deem advisable,
with respect to the administration of the Plan. Any action to be taken by the Committee shall be
taken by a majority of its members, either at a meeting or by written instrument approved by such
majority in the absence of a meeting. A written resolution or memorandum signed by one Committee
member and the secretary of the Committee shall be sufficient evidence to any person of any action
taken under the Plan.

     8.2 Interpretation. The Committee (or its designee) may take any action, correct any
defect, supply any omission or reconcile any inconsistency in the Plan, or in any election
hereunder, in the manner and to the extent it shall deem necessary to carry the Plan into effect or
to carry out the Board’s purposes in adopting the Plan. Any decision, interpretation or other
action made or taken by the Committee (or its designee) arising out of or in connection with the
Plan, shall be within the absolute discretion of the Committee (or its designee), and shall be
final, binding and conclusive on the Company as well as all Participants, Beneficiaries and their
respective heirs, executors, administrators, successors and assigns. The determinations by the
Committee (or its designee) with respect to the Plan need not be uniform, and may be made
selectively among Employees, whether or not they are similarly situated.

     8.3 Records and Reports. The Committee (or its designee) shall keep a record of
proceedings and actions and shall maintain or cause to be maintained all such books of account,
records, and other data as shall be necessary for the proper administration of the Plan. Such

-21-

 

records shall contain all relevant data pertaining to individual Participants and their rights
under the Plan.

     8.4 Payment of Expenses. The Company shall bear all expenses incurred by it and by
the Committee in administering the Plan.

     8.5 Indemnification for Liability. The Company shall indemnify the Committee, and the
employees of the Company to whom the Committee delegates duties under the Plan against any and all
claims, losses, damages, expenses and liabilities arising from their responsibilities in connection
with the Plan.

     8.6 Claims Procedure. A Participant or Beneficiary who believes he or she is entitled
to a benefit under the Plan shall file a written claim with the Committee. If such claim is denied
in whole or in part, the Committee (or its designee) shall notify (in writing or electronically)
such Participant or Beneficiary (hereinafter referred to as the “Claimant”) or an authorized
representative of the Claimant, as applicable, of any adverse benefit determination (within the
meaning of DOL Reg. Section 2560.503-1(m)(4)) concerning such claim within ninety (90) days of
receipt of the claim. If the Committee (or its designee) determines that special circumstances
require an extension of time for processing the claim, the Committee (or its designee) shall notify
the Claimant in writing of the extension before the end of the initial ninety (90)-day period and
the written notice shall indicate the special circumstances requiring an extension of time and the
date by which the Committee (or its designee) expects to make a decision. The extension of time
shall not exceed ninety (90) days from the end of the initial ninety (90)-day period.

     Any adverse benefit determination notice shall describe the specific reason or reasons for the
denial, refer to the specific Plan provisions on which the termination was based, describe any
additional material or information necessary for the Claimant to perfect his or her claim and
explain why that material or information is necessary, and describe the Plan’s review procedures
and the time limits applicable to those procedures, including a statement of the Claimant’s right
to bring a civil action under ERISA Section 502(a) following a denial upon review. If the notification is made electronically, it must comply with DOL. Reg. Section
2520.104b-(1)(c)(1)(i), (iii) and (iv).

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     Upon receipt of an adverse benefit determination, a Claimant may, within sixty (60) days after
receiving notification of that determination, submit a written request asking the Committee to
review the Claimant’s claim. Each Claimant, when making his or her request for review of his or
her adverse benefit determination, shall have the opportunity to submit written comments,
documents, records and any other information relating to the claim for benefits. Each Claimant
shall also be provided, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to such Claimant’s claim for benefits. The
review shall take into account all comments, documents, records and other information submitted by
the Claimant relating to the claim, regardless of whether the information was submitted or
considered in the initial benefit determination. If a Claimant does not submit his or her request
for review in writing within the sixty (60)-day period described above, his claim shall be deemed
to have been conclusively determined for all purposes of the Plan and the adverse benefit
determination will be deemed to be correct.

     If the Claimant submits in writing a request for review of the adverse benefit determination
within the sixty (60)-day period described above, the Committee (or its designee) shall notify (in
writing or electronically) him or her of its determination on review within a reasonable period of
time but not later than sixty (60) days from the date of receipt of his request for review, unless
the Committee (or its designee) determines that special circumstances require an extension of time.
If the Committee (or its designee) determines that an extension of time for processing a
Claimant’s request for review is required, the Committee (or its designee) shall notify him or her
in writing before the end of the initial sixty (60)-day period and inform him or her of the special
circumstances requiring an extension of time and the date by which the Committee (or its designee)
expects to render its determination on review. The extension of time will not exceed sixty (60)
days from the end of the initial sixty (60)-day period.

     If the Committee (or its designee) confirms the adverse benefit determination upon review, the
notification will describe the specific reason or reasons for the adverse determination, refer to
the specific Plan provisions on which the benefit determination is based, include a statement that
the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and
copies of, all documents, records and other information relevant to the Claimant’s
claim, and include a statement describing the Claimant’s right to bring an action under ERISA

-23-

 

Section 502(a). In all events, the claims procedure described above shall be administered in a
manner not inconsistent with ERISA Section 503 and DOL Reg. Section 2560.503-1.

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ARTICLE IX

AMENDMENT AND TERMINATION

     9.1 In General. Subject to Section 9.2 hereof, the Committee may at any time amend or
terminate any or all of the provisions of the Plan in any manner; provided, however, that in no
event shall any such amendment or termination adversely affect the right of any Participant or
Beneficiary to a payment under the Plan on the basis of amounts allocated to the Deferred
Compensation Account of a Participant as of the date of such amendment or termination. In the
event that the Plan is discontinued with respect to future Deferrals or terminated, each
Participant’s Deferred Compensation Account Balance shall be distributed in accordance with, and
subject to the requirements of, Article V. Notwithstanding any provision to the contrary in the
Plan, nothing shall restrict the Committee’s right to amend the Plan, without the consent of
Participants and without additional consideration to affected Participants, to the extent necessary
to avoid taxation and/or penalties under Code Section 409A, even if such amendments reduce,
restrict or eliminate rights or benefits granted under the Plan.

     9.2 Termination After Change in Control. Notwithstanding Section 9.1, the Committee
may not amend or terminate the Plan without the prior written consent of all Participants for a
period of two calendar years following a Change in Control, provided that each Participant’s
Deferred Compensation Account Balance shall be distributed in accordance with, and subject to the
requirements of, Article V.

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ARTICLE X

MISCELLANEOUS PROVISIONS

     10.1 Information to be Furnished by Participants and Beneficiaries and Inability to
Locate. Any communication, statement or notice addressed to a Participant or to a Beneficiary
at his or her last address as shown on the records of the Company shall be binding on the
Participant or Beneficiary for all purposes of the Plan. Neither the Company nor the Committee
shall be obliged to search for any Participant or Beneficiary beyond the sending of a certified or
registered mail letter to such last known address. If the Company or the Committee (or its
designee) notifies any Participant or Beneficiary that he or she is entitled to an amount under the
Plan and the Participant or Beneficiary fails to claim such amount or make his continued life and
location known to the Company or the Committee (or its designee) within three years thereafter,
then, except as otherwise required by law, if the location of one or more of the next of kin of the
Participant is known to the Company or the Committee (or its designee), the Company or the
Committee (or its designee) may direct distribution of such amount to any one or more or all of
such next of kin, and in such proportions as the Company or the Committee (or its designee), in its
sole discretion, determines. If the Company or Committee (or its designee) determines that the
continued life or the location of the Participant or Beneficiary cannot be determined, the Company
or the Committee (or its designee) shall have the right to direct that the amount payable shall be
deemed to be a forfeiture.

     10.2 Right of the Company to Take Employment Actions. The maintenance of the Plan
shall not be deemed to constitute a contract between the Company and any Employee, or to be a
consideration for, or an inducement or condition of, the employment of any Employee. Nothing
herein contained, or any action taken hereunder, shall be deemed to give an Employee the right to
be retained in the employ of the Company or to interfere with the right of the Company to
discipline or discharge an Employee at any time, nor shall it be deemed to give to the Company the
right to require the Employee to remain in its employ, nor shall it interfere with any rights of
the Employee to terminate his or her employment at any time.

     10.3 No Alienation of Assignment of Benefits. The rights and interest of a
Participant under the Plan shall not be assigned or transferred, either voluntarily or by operation
of law or otherwise, except as otherwise provided herein, and the rights of a Participant to

-26-

 

payments under the Plan shall not be subject to alienation, attachment, execution, levy, pledge or
garnishment by or on behalf of creditors (including heirs, beneficiaries, or dependents) of the
Participant or a Beneficiary.

     10.4 Construction. All legal questions pertaining to the Plan shall be determined in
accordance with the laws of the State of Minnesota, without reference to conflict of laws
provisions, to the extent such laws are not superseded by ERISA or any other federal law.

     10.5 Headings. The headings of the Articles and Sections of the Plan are for
reference only. In the event of a conflict between a heading and the contents of an Article or
Section, the contents of the Article or Section shall control.

     10.6 Agent for Legal Process. The Company shall be the agent for service of legal
process with respect to any matter concerning the Plan, unless and until the Company designates
some other person as such agent.

     10.7 Tax Treatment. Although the Committee (or its designee) shall use its best
efforts to avoid the imposition of taxation and penalties under Code Section 409A, the tax
treatment of Deferrals is not warranted or guaranteed. Neither the Company, the Board, nor the
Committee (or its designee) shall be held liable for any taxes, penalties or other monetary amounts
owed by any Participant, Employee, Beneficiary or other taxpayer as a result of the Plan.

     Executed at                                         , as of this 31st day of December, 2004.

	 	 	 	 	 	 
	 	 	U. S. BANCORP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

-27-

 

APPENDIX A

List of Affiliates

	 	 	 
	 

	 	U.S. Bank National Association
	 

	 	U.S. Bancorp Asset Management, Inc.
	 

	 	U.S. Bancorp Card Services, Inc.
	 

	 	U.S. Bancorp Fund Services, LLC
	 

	 	U.S. Bancorp Insurance Services, LLC
	 

	 	U.S. Bancorp Investments, Inc.
	 

	 	U.S. Bancorp Equipment Finance, Inc.
	 

	 	U.S. Bancorp Licensing, Inc.
	 

	 	U.S. Bank National Association, ND
	 

	 	U.S. Bank Oliver-Allen Technology Leasing
	 

	 	Housing Capital Company
	 

	 	First Security Investor Reporting, LP
	 

	 	Genpass Service Solutions, LLC
	 

	 	Genpass Technologies, LLC
	 

	 	LADCO Financial Group
	 

	 	Lyon Financial Services, Inc.
	 

	 	NOVA Information Systems, Inc.
	 

	 	Quasar Distributors, LLC

	 	 	 	 	 	 
	 	 	COMPENSATION COMMITTEE OF THE BOARD OF
	 	 	DIRECTORS OF U.S. BANCORP
	 
	 	 	 	 
	Date: ____________

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

A-1

 

APPENDIX B

Measurement Funds

	 	 	 	 	 
	 	 	First American Mutual Funds:
	 
	 	 	 	 
	 

	 	 	 	Short Term Bond Fund
	 

	 	 	 	Intermediate Government Bond Fund
	 

	 	 	 	Core Bond Fund
	 

	 	 	 	Mid Cap Growth Opportunities Fund
	 

	 	 	 	Mid Cap Value Fund
	 

	 	 	 	Equity Index Fund
	 

	 	 	 	Large Cap Value Fund
	 

	 	 	 	Large Cap Growth Opportunities Fund
	 

	 	 	 	Small Cap Value Fund
	 

	 	 	 	Small Cap Growth Opportunities Fund
	 

	 	 	 	Prime Obligations Fund
	 
	 	 	 	 
	 	 	U.S. Bancorp common stock

	 	 	 	 	 	 
	 	 	COMPENSATION COMMITTEE OF THE BOARD OF
	 	 	DIRECTORS OF U.S. BANCORP
	 
	 	 	 	 
	Date: ____________

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

B-1exv10w1

 

Exhibit 10.1

December 19, 2005

Linda A. Martin

c/o Dex Media, Inc.

198 Inverness Drive West

Englewood, CO 80112

	Re:  	 	Second Amendment to Amended and Restated Employment Agreement

Dear Linda:

This Letter Agreement confirms the understanding reached between you and Dex Media, Inc., a
Delaware corporation (together with any successor thereto, the “Company”), regarding the
terms of your continued employment with the Company. This Letter Agreement constitutes an
amendment to that certain Amended and Restated Employment Agreement, dated as of July 15, 2004 (the
“Employment Agreement”), as amended by that certain letter agreement between you and the
Company, dated October 2, 2005 (the “First Letter Amendment”). Capitalized terms used in
this Letter Agreement and not defined herein shall have the meaning given such terms in the
Employment Agreement or the First Letter Amendment, as applicable.

	 	1.	 	Position. Effective as of January 1, 2006, you will serve in the position of
Executive Vice President and Chief Operating Officer of the Company. You acknowledge and
agree that upon the occurrence of the Effective Time, you will return to the position of
Senior Vice President, Sales and no longer hold the position of Executive Vice President
and Chief Operating Officer.
	 
	 	2.	 	Annual Base Salary. Effective as of January 1, 2006, your Annual Base Salary
shall be $300,000 for as long as you hold the position of Executive Vice President and
Chief Operating Officer. You acknowledge and agree that upon the occurrence of the
Effective Time, your Annual Base Salary shall return to $231,750.
	 
	 	3.	 	Annual Bonus. Effective as of January 1, 2006, your target annual bonus
shall be 75% of your Annual Base Salary for as long as you hold the position of Executive
Vice President and Chief Operating Officer. You acknowledge and agree that upon the
occurrence of the Effective Time, your target annual bonus shall return to 50% of your Annual
Base Salary. To the extent that you hold both positions during any bonus year, your bonus
calculation shall be pro-rated based upon the number of days during such year you served
as Executive Vice President and Chief Operating Officer and Senior Vice President, Sales,
respectively.
	 
	 	4.	 	Good Reason. Effective as of January 1, 2006, you acknowledge and agree that
you will not have Good Reason to terminate your employment upon the occurrence of any of
the following: (i) the diminution of your position from Executive Vice President and
Chief
Operating Officer to Senior Vice President, Sales at the Effective Time, (ii) the
diminution of your Annual Base Salary to an amount not less than $231,750 at any time that
you are serving as Senior Vice President, Sales or (iii) the diminution of your target
bonus to a percentage not less than 50% of your Annual Base Salary at any time you are
serving as Senior Vice President, Sales.

 

 

	 	5.	 	Calculation of Payments upon Certain Terminations of Employment. Effective
as of January 1, 2006, upon the termination of your employment by the Company without
“Cause” (as defined in your Employment Agreement) or by you for “Good Reason” (as defined
in the First Letter Amendment and modified by Paragraph 4 above), any payments to which
you may be entitled pursuant to Section 6(a) of the First Letter Amendment will be
calculated based upon an Annual Base Salary of $231,750 (or such greater amount if your
Annual Base Salary is increased while you hold the position of Senior Vice President,
Sales) and a target annual bonus of not more than 50% of $231,750 (or such greater amount
if your target bonus and Annual Base Salary are increased while you hold the position of
Senior Vice President, Sales).
	 
	 	6.	 	Merit Increases. Effective as of the Effective Time, any increase to your
Annual Base Salary and your target annual bonus will be based upon an Annual Base Salary
of $231,750 and a target bonus of 50% of Annual Base Salary.
	 
	 	7.	 	Employment and Option Agreements. You and the Company acknowledge and agree
that, except as provided by this Letter Agreement, the Employment Agreement and the First
Letter Amendment shall remain in full force and effect.
	 
	 	8.	 	Further Assurances. You and the Company agree to execute and deliver such
other documents, certificates, agreements and other writings and to take such other
actions as may be necessary or desirable in order to consummate or implement expeditiously
the terms of this Letter Agreement.

[signature page follows]

 

 

     Please indicate your acceptance of the terms and provisions of this Letter Agreement by
signing both copies of this Letter Agreement and returning one copy to me. The other copy is for
your files. By signing below, you acknowledge and agree that you have carefully read this Letter
Agreement in its entirety; fully understand and agree to its terms and provisions; and intend and
agree that it be final and legally binding on you and the Company. This Letter Agreement shall be
governed and construed under the internal laws of the State of Delaware and may be executed in
several counterparts.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ SCOTT BONTEMPO	 
	 	Name:  	Scott Bontempo	 
	 	Title:  	Senior Vice President - Human Resources	 
	 

Agreed and Accepted:

/s/ LINDA A. MARTIN

Linda A. Martin

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