Document:

PNC BANK CORP. AND AFFILIATES DEFERRED COMPENSATION PLAN AS AMENDED AND RESTATED

 Exhibit 10.7 
  
 THE PNC FINANCIAL SERVICES GROUP, INC. AND AFFILIATES 
 DEFERRED COMPENSATION PLAN 
  
 Amended and Restated 
 (Effective as of February 18, 2004) 
  
 WHEREAS, The PNC Financial Services Group, Inc. (the “Corporation”)
and certain of its affiliates previously adopted and presently maintain The PNC Financial Services Group, Inc. and Affiliates Deferred Compensation Plan (the “Plan”), originally effective as of November 21, 1996; 
  
 WHEREAS, the Corporation desires to amend and restate the Plan in its
entirety, effective February 18, 2004, to make such changes as deemed necessary or appropriate in connection with the Plan; and 
  
 WHEREAS, Section 9(b) of the Plan authorizes the Corporation to amend the Plan at any time. 
  
 NOW, THEREFORE, in consideration of the foregoing, the Plan is hereby amended and restated in its entirety to read as
follows: 
  
 SECTION 1 
  
 DEFINITIONS 
  

	1.1	“Account” means the bookkeeping account established for each Participant who is entitled to a benefit under the Plan. An Account is established only for purposes of
determining deemed investments hereunder and not to segregate assets that may or must be used to satisfy benefits. An Account will be credited with Deferral Amounts set forth in Section 3 of the Plan and will be credited or debited to reflect deemed
investment results under Section 5 of the Plan. The Participant’s “Account” will also include amounts deferred under deferral elections made before January 1, 1996, which pre-1996 deferrals will be accounted for separately from
Deferral Amounts for and after 1996. The Participant’s Account will also include any amounts deferred that are subject to restrictions and the possibility of forfeiture under the terms of any Cash Incentive Award made under any incentive plan.

  

	1.2	“Affiliate” means any business entity whose relationship with the Corporation is as described in Subsection (b), (c) or (m) of Section 414 of the Internal Revenue Code.

  

	1.3	“Beneficiary” or “Beneficiaries” means the individual or individuals designated by the Participant to receive the balance of the Participant’s Account upon
the Participant’s death in accordance with Section 6 of the Plan. 

	1.4	“Board” means the Board of Directors of the Corporation. 

  

	1.5	“Cash Incentive Award” means: (a) any incentive award, including incentive awards otherwise payable in the form of the Corporation’s stock, granted to the Participant
under an incentive plan designated by the Plan Manager as participating hereunder and listed in Schedule B hereto; (b) any other cash bonus or incentive compensation payment that may be designated by the Plan Manager as eligible for deferral
hereunder and listed in Schedule B hereto; and (c) amounts payable under any Severance Agreement. 

  

	1.6	“Change in Control” means a change of control of the Corporation of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A (or in response to any similar item on any similar schedule or form) promulgated under the Exchange Act, whether or not the Corporation is then subject to such reporting requirement; provided, however, that without limitation, a Change in
Control shall be deemed to have occurred if: 

  

	 	(a)	any Person, excluding employee benefits plans of the Corporation and its subsidiaries, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act
or any successor provisions thereto), directly or indirectly, of securities of the Corporation representing twenty percent (20%) or more of the combined voting power of the Corporation’s then outstanding securities; provided, however, that such
an acquisition of beneficial ownership representing between twenty percent (20%) and forty percent (40%), inclusive, of such voting power shall not be considered a Change in Control if the Board approves such acquisition either prior to or
immediately after its occurrence; 

  

	 	(b)	the Corporation consummates a merger, consolidation, share exchange, division or other reorganization or transaction of the Corporation (a “Fundamental Transaction”) with
any other corporation, other than a Fundamental Transaction that results in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least sixty percent (60%) of the combined voting power immediately after such Fundamental Transaction of (i) the Corporation’s outstanding securities, (ii) the surviving entity’s outstanding
securities, or (iii) in the case of a division, the outstanding securities of each entity resulting from the division; 

  

	 	(c)	the shareholders of the Corporation approve a plan of complete liquidation or winding-up of the Corporation or an agreement for the sale or disposition (in one transaction or a
series of transactions) of all or substantially all of the Corporation’s assets; 

  

	 	(d)	as a result of a proxy contest, individuals who prior to the conclusion thereof constituted the Board (including for this purpose any new director whose election or nomination for
election by the Corporation’s shareholders in connection with such proxy contest was approved by a vote of at least two-thirds (2/3rds) of the 

  

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directors then still in office who were directors prior to such proxy contest) cease to constitute at least a majority of the Board (excluding any Board seat
that is vacant or otherwise unoccupied); 

  

	 	(e)	during any period of twenty-four (24) consecutive months, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose
election or nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds (2/3rds) of the directors then still in office who were directors at the beginning of such period) cease for any reason to
constitute at least a majority of the Board (excluding any Board seat that is vacant or otherwise unoccupied); or 

  

	 	(f)	the Board determines that a Change in Control has occurred. 

  
 Notwithstanding anything to the contrary herein, a divestiture or spin-off of a subsidiary or division of the Corporation shall not by itself constitute a
Change in Control. 
  

	1.7	“CIC Failure” means the following: 

  

	 	(a)	with respect to a CIC Triggering Event described in Section 1.8(a), the Corporation’s shareholders vote against the transaction approved by the Board or the agreement to
consummate the transaction is terminated; or 

  

	 	(b)	with respect to a CIC Triggering Event described in Section 1.8(b), the proxy contest fails to replace or remove a majority of the members of the Board. 

  

	1.8	“CIC Triggering Event” means the occurrence of either of the following: 

  

	 	(a)	the Board or the Corporation’s shareholders approve a transaction described in subsection (b) of the definition of Change in Control contained in Section 1.6; or

  

	 	(b)	the commencement of a proxy contest in which any Person seeks to replace or remove a majority of the members of the Board. 

  

	1.9	“Committee” means the Personnel and Compensation Committee of the Board. 

  

	1.10	“Corporate Executive Group” means the group designated as such by the Corporation. 

  

	1.11	“Corporation” means The PNC Financial Services Group, Inc. and any successors thereto. 

  

	1.12	“Coverage Period” means a period (a) commencing on the earlier to occur of (i) the date of a CIC Triggering Event and (ii) the date of a Change in Control and (b) ending
on the date that is two (2) years after the date of the Change in Control; provided, however, that in the event that a Coverage Period commences on the date of a CIC Triggering Event, such Coverage Period shall terminate upon the earlier to occur of
(x) the date of a CIC 

  

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Failure and (y) the date that is two (2) years after the date of the Change in Control triggered by the CIC Triggering Event. After the termination of any
Coverage Period, another Coverage Period shall commence upon the earlier to occur of clause (a)(i) and clause (a)(ii) in the preceding sentence. 

  

	1.13	“Deferral Amount” means the amount credited to the Participant’s Account in accordance with the Participant’s Deferral Election less any amounts transferred to
the SISP and employment taxes. The term “Deferral Amount” will not include any gains or losses credited or debited thereto. 

  

	1.14	“Deferral Election” means the Participant’s irrevocable election to defer all or a portion of the Participant’s Cash Incentive Award by timely delivery to the
Plan Manager of a Deferral Election Form. 

  

	1.15	“Deferral Election Form” means the document, in a form or forms approved by the Plan Manager, whereby the Participant elects to defer all or a portion of any Cash
Incentive Award and designates when payment of the portion of the Participant’s Account attributable to such Deferral Amount, including earnings thereon, will commence and the form of payment. 

  

	1.16	“Disability” means, unless the Committee determines otherwise, the Participant’s disability as determined to be total and permanent by the Employer for purposes of
the Plan. 

  

	1.17	“Distribution Date” means the annual payment date designated by the Participant on the Participant’s Deferral Election Form for all distributions, except for
distributions on account of Hardship. The Participant may designate January 15 or July 15 as the applicable annual Distribution Date. 

  

	1.18	“Eligible Cash Incentive Award” means the amount of the Participant’s Cash Incentive Award up to the greater of (a) $25,000 or (b) 50% of the Cash Incentive Award;
provided, however, that for a Participant who is not a member of the Corporate Executive Group, the Eligible Cash Incentive Award may not exceed $125,000. 

  

	1.19	“Employee” means any person employed by an Employer. 

  

	1.20	“Employer” means the Corporation and any Affiliate that has been designated by the Plan Manager as an Employer hereunder and listed in Schedule A hereto.

  

	1.21	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

  

	1.22	“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

  

	1.23	“Hardship” means severe financial hardship to the Participant resulting from (i) a sudden and unexpected illness of the Participant or one of the Participant’s
dependents (within 

  

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the meaning of Section 152(a) of the Internal Revenue Code), (ii) an accident involving the Participant or one of the Participant’s dependents, (iii)
loss of the Participant’s property due to casualty, or (iv) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances that will constitute Hardship will
depend upon the facts of each case, but, in any case, Hardship will not exist to the extent that such hardship is or may be relieved: 

  

	 	(a)	through reimbursement or compensation by insurance or otherwise; 

  

	 	(b)	by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or 

  

	 	(c)	by cessation of deferrals under this Plan or other plans maintained by the Employer. 

  
 The Plan Manager will have the sole and absolute discretion to determine whether a Hardship exists. 
  

	1.24	“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended. 

  

	1.25	“ISP” means The PNC Financial Services Group, Inc. Incentive Savings Plan, as amended from time to time. 

  

	1.26	“ISP Administrative Committee” means the committee appointed by the Board or its delegate to administer the ISP. 

  

	1.27	“Participant” means any Employee who meets the eligibility criteria set forth in Section 2 of the Plan and/or has an Account under the Plan. 

  

	1.28	“Pension Plan” means The PNC Financial Services Group, Inc. Pension Plan, as amended from time to time. 

  

	1.29	“Person” has the meaning given in Section 3(a)(9) of the Exchange Act and also includes any syndicate or group deemed to be a person under Section 13(d)(3) of the Exchange
Act. 

  

	1.30	“Plan” means The PNC Financial Services Group, Inc. and Affiliates Deferred Compensation Plan, which is the Plan set forth in this document, as amended from time to time.

  

	1.31	“Plan Manager” means any individual designated by the Committee to manage the operation of the Plan as herein provided or to whom the Committee has duly delegated any of
its duties and obligations hereunder. 

  

	1.32	“Retirement” means termination of employment with the Corporation and all of its Affiliates at any time and for any reason (other than death, termination for cause or,

  

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unless the Committee determines otherwise, termination in connection with a divestiture of assets or of one or more subsidiaries of the Corporation) on or
after the first day of the first month after a Participant has attained age fifty five (55) and completed five (5) years of Vesting Service. 

  

	1.33	“Severance Agreement” means any Change in Control Severance Agreement between the Corporation and an executive of the Corporation. 

  

	1.34	“Severance From Service” means the Participant’s termination of employment with The PNC Financial Services Group, Inc. and all of its Affiliates on account of
Retirement, Disability or other termination of employment. 

  

	1.35	“SISP” means The PNC Financial Services Group, Inc. Supplemental Incentive Savings Plan, as amended from time to time. 

  

	1.36	“Spouse” means the person to whom the Participant is legally married (as determined under the laws of the state in which the Participant is a resident at the time of
marriage). 

  

	1.37	“Trust” means the grantor trust established by the Corporation to assist in funding its obligations under the Plan. 

  

	1.38	“Vesting Service” has the meaning assigned such term in the Pension Plan. 

  
 SECTION 2 
  
 ELIGIBILITY FOR PARTICIPATION 
  
 Any Employee who has historically earned or is anticipated to earn annual total compensation in the year for which a Deferral Election is made of at least $100,000, or
such other greater amount as may be designated by the Committee from time to time, may be eligible to participate in the Plan, if so designated by the Plan Manager. The Plan Manager may from time to time expand or limit the group of employees
permitted to participate in the Plan. The decision as to whether an Employee is eligible to participate in the Plan is reserved to the Plan Manager in his or her sole discretion. 
  

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 SECTION 3 
  
 DEFERRAL ELECTION 
  

	3.1	Deferral Amount 

  
 Any Employee who is eligible to participate in the Plan pursuant to the criteria set forth in Section 2 may elect to defer payment of all or any part of
an Cash Incentive Award; provided, however, that the Participant’s gross Deferral Amount may not be less than $5,000 for any single deferral. Effective January 1, 1999, if the Participant also participates in the ISP at the time of a Cash
Incentive Award, a portion of the Eligible Cash Incentive Award amount that the Participant elects to defer under this Plan will be transferred to the SISP. The portion that will be allocated to the SISP will equal the percentage of
“Compensation” (as defined in the ISP) that the Participant has elected to defer under the ISP multiplied by an amount equal to the difference between (a) the Participant’s “Compensation” under the ISP calculated as if
Internal Revenue Code Section 401(a)(17) were not applicable and the Participant had not made a deferral under this Plan and (b) the Participant’s “Compensation” actually calculated under the ISP. Amounts transferred to the SISP will
be subject to the terms and conditions of the SISP. 
  

	3.2	Deferral Election Form 

  
 Except for Deferral Election Forms for any Cash Incentive Award payable under a Severance Agreement, the Participant’s Deferral Election Form must be
received by the Plan Manager prior to January 1 of each calendar year. Except for Deferral Election Forms for any Cash Incentive Award payable under a Severance Agreement, any Deferral Election Form will apply only to a Cash Incentive Award granted
to the Participant for the calendar year (or any portion of the calendar year) beginning on such January 1. Notwithstanding the foregoing, in the calendar year in which an Employee first becomes eligible to be a Participant hereunder, the Deferral
Election Form must be received by the Plan Manager within 30 days after the Employee first becomes eligible, in order to be effective for any Cash Incentive Award granted for such calendar year (or for a portion of such calendar year). Each Deferral
Election Form will also specify the year in which payment will commence the form of distribution and the applicable Distribution Date. A Deferral Election Form for any Cash Incentive Award payable under a Severance Agreement will be valid only if it
is received by the Plan Manager either 30 days after the date of the Severance Agreement or at least one year before the Participant’s “Date of Termination,” as that term is defined in the Severance Agreement. 
  

	3.3	Stock Deferrals 

  
 From time to time, certain of the Corporation’s eligible incentive plans may permit or require Participants to defer incentive awards that they would
otherwise receive in the form of restricted shares of the Corporation’s common stock (“Stock Deferrals”). Such 
  

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 Stock Deferrals may also be subject to such terms and conditions as may be imposed by the Corporation
under the terms of the incentive plans or the individual awards under such plans, including, but not limited to, execution of such agreements between the Corporation and the Participant as may be required by the Corporation as a condition to receipt
of the award and its eligibility for deferral under this Plan. 
  
 Stock Deferrals will be credited to Participants’ Accounts as set forth in Section 1.1. Stock Deferrals will be subject to any restricted period as may be applicable to the underlying incentive award, and will be deemed to be invested
in the Corporation’s common stock during any such restricted period and may not be transferred to other deemed investments until the restricted period has terminated. Distributions from the Stock Deferral portion of Accounts will not be
permitted until any restricted period has terminated. Hardship distributions made pursuant to Section 4.3 will not include any portion of a Participant’s Account attributable to Stock Deferrals. 
  
 SECTION 4 
  
 DISTRIBUTION OF DEFERRAL AMOUNTS AND PARTICIPANT ACCOUNTS

  

	4.1	Distribution Deferral Elections 

  
 Distributions of the Participant’s Account attributable to any Deferral Amount will commence in accordance with the Participant’s Deferral
Election Form; provided, however, that no Participant may elect to defer the payment of any Deferred Amount for a period of less than one full calendar year, and, provided, further, that if the Participant fails to select a time when payment of the
Participant’s Account attributable to any Deferral Amount will commence, payment will commence as of the first Distribution Date after the Participant’s Severance From Service. Notwithstanding the foregoing and except as set forth below
under distributions on account of Hardship, any distribution of the Participant’s Account attributable to any pre-1996 Deferral Election will be payable only upon the Participant’s Severance From Service. 
  

	4.2	Time and Manner of Distribution 

  
 All distributions will be payable in a lump sum or annual installments over a period designated by the Participant not to exceed the lesser of ten years
or the joint life expectancy of the Participant and the Participant’s Spouse, based upon life expectancy tables approved by the Plan Manager. The form of distribution applicable to any Deferral Amount, and any earnings thereon, will be elected
at the time of the Participant’s Deferral Election on each Deferral Election Form; provided, however, that if the Participant fails to select a form for the payment of a Participant’s Account attributable to any Deferral Amount, payment
will be made in the form of the lump sum. The Participant may not subsequently change the time or form of distribution, except with respect to any Cash Incentive Award payable under a Severance Agreement; provided, 
  

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 however, that such change will be valid only if it is received by the Plan Manager at least one year
before the Participant’s “Date of Termination,” as that term is defined in the Severance Agreement. Distributions will be made only in cash, except as may otherwise be provided in any eligible incentive plan. The first annual payment
will be made as soon as may be practicable after the Distribution Date in the year designated by the Participant with the remaining installments (if any) continuing to be payable as soon as may be practicable after the same Distribution Date each
year thereafter. 
  

	4.3	Hardship Distribution 

  
 Upon approval of the Plan Manager, in his or her sole and absolute discretion, payment of all or any portion of the Participant’s Account will be
made in the event of the Participant’s Hardship. Payment of any Hardship distribution will be made only in cash in a single sum as soon as administratively feasible after approval. 
  

	4.4	Death Benefit 

  
 Except as provided in Section 4.5, if the Participant’s Severance From Service occurs because of the Participant’s death, either before or after
payments commence, the balance of the Participant’s Account will be distributed to the Participant’s Beneficiary or Beneficiaries at the time and pursuant to the method elected by the Participant. Upon application of the Participant’s
Beneficiary, the Plan Manager may, in his or her sole and absolute discretion, direct that the balance of the deceased Participant’s Account be paid in a single lump sum. 
  

	4.5	Accelerated Distribution 

  
 Except as may be otherwise provided in the Participant’s Severance Agreement or upon a Severance From Service that occurs during a Coverage Period,
upon the Participant’s Severance From Service for any reason other than death, Disability or Retirement, the Committee will direct payment of the balance of the Participant’s Account to be accelerated and paid in a single sum to the
Participant on the first annual Distribution Date coincident with or next following the date of the Participant’s Severance From Service. 
  
 SECTION 5 
  
 INVESTMENT FUNDS 
  
 Deferral Amounts credited to a Participant’s Account under the Plan will be deemed to be invested in the investment fund or funds selected by the Participant in
accordance with procedures established by the Plan Manager. The Participant may elect to change the investment fund elections in accordance with procedures established by the Plan Manager. The ISP Administrative Committee will, in its sole
discretion, determine the various investment funds 
  

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 that will be available for the deemed investment of all Deferral Amounts. If the Participant fails to select an
investment fund or fund with respect to any Deferral Amount, such Deferral Amount will be automatically invested in a short-term investment fund as may be designated from time to time by the ISP Administrative Committee, until the Participant
provides investment directions in accordance with procedures established by the Plan Manager. The Participant’s Account will be valued daily. 
  
 The Committee, in its sole and absolute discretion, will establish procedures for allocating earnings to the Participant’s Account. 
  
 SECTION 6 
  
 DESIGNATION OF BENEFICIARIES 
  
 The Participant will designate a Beneficiary or Beneficiaries to receive the balance of the
Participant’s Account upon the Participant’s death. Such designation will be on a form approved by the Plan Manager and will not be effective until the designation is received by the Plan Manager. If no valid Beneficiary designation form
is on file with the Plan Manager upon the Participant’s death, then the balance of the Participant’s Account will be payable to the Beneficiary designated by the Participant under the Employer’s group life insurance plan, or, if no
such designation exists, to the Participant’s estate. 
  
 SECTION 7 
  
 TRUST FUND

  
 No assets of the Corporation or any Employer will be segregated or
earmarked in respect to any Deferral Amounts and all such amounts will constitute unsecured contractual obligations of the Employer. If the Corporation chooses to contribute to the Trust to offset its obligation under this Plan, all assets or
property held by the Trust will at all times remain subject to the claims of the general creditors of the Corporation or any Employer. 
  
 SECTION 8 
  
 CLAIMS PROCEDURE 
  

	8.1	Initial Claim 

  
 Claims for benefits under the Plan will be filed with the Plan Manager. If any Participant or Beneficiary claims to be entitled to a benefit under the
Plan and the Plan Manager 
  

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 determines that such claim should be denied in whole or in part, the Plan Manager will notify such person
of its decision in writing. Such notification will be written in a manner calculated to be understood by such person and will contain (a) specific reasons for the denial, (b) specific reference to pertinent Plan provisions, (c) a description of any
additional material or information necessary for such person to perfect such claim and an explanation of why such material or information is necessary and (d) information as to the steps to be taken if the person wishes to submit a request for
review. Such notification will be given within 90 days after the claim is received by the Plan Manager. If such notification is not given within such period, the claim will be considered denied as of the last day of such period and such person may
request a review of his or her claim. 
  

	8.2	Review Procedure 

  
 Within 60 days after the date on which the Participant or Beneficiary receives a written notice of a denied claim (or, if applicable, within 60 days after
the date on which such denial is considered to have occurred), such person (or his or her duly authorized representative) may (a) file a written request with the Committee for a review of his or her denied claim and of pertinent documents and (b)
submit written issues and comments to the Committee. The Committee will notify such person of its decision in writing. Such notification will be written in a manner calculated to be understood by such person and will contain specific reasons for the
decision as well as specific references to pertinent Plan provisions. The decision on review will be made within 60 days after the Committee receives the request for review. If the decision on review is not made within such period, the claim will be
considered denied. 
  

	8.3	Claims and Review Procedure Not Mandatory After a Change in Control 

  
 After the occurrence of a Change in Control, the claims procedure and review procedure provided for in this Section 8 will be provided for the use and
benefit of Participants who may choose to use such procedures, but compliance with the provisions of this Section 8 will not be mandatory for any Participant claiming benefits after a Change in Control. It will not be necessary for any Participant
to exhaust these procedures and remedies after a Change in Control prior to bringing any legal claim or action, or asserting any other demand, for payments or other benefits to which such Employee claims entitlement. 
  
 SECTION 9 
  
 ADMINISTRATION 
  
 The Committee will have the sole and absolute authority to determine eligibility for benefits
and administer, interpret, construe and vary the terms of the Plan; provided, however, that after a Change in Control, the Committee will be subject to the direction of the trustee of the Trust with respect to the exercise of the authority granted
by this Section 9 and elsewhere in this Plan. 
  

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 This Plan is intended to be “a plan which is unfunded and is maintained by an employer primarily for the purpose of
providing deferred compensation for a select group of management or highly compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA and will be administered in a manner consistent with that intent.

  
 SECTION 10 
  
 AMENDMENT AND TERMINATION 
  
 The Committee will have the sole and absolute discretion to modify, amend or terminate this
Plan at any time; provided, that no modification, amendment or termination will be made that would have the effect of decreasing the amount payable to any Participant or Beneficiary hereunder without the consent of such Participant or Beneficiary.

  
 After a Change in Control, the Plan may not be amended in any manner that
adversely affects the administration or payment of a Participant’s benefits hereunder (including but not limited to the timing and form or payment of benefits hereunder) without the consent of the Participant, nor may the provisions of this
Section 10 or Section 11 be amended after a Change in Control with respect to a Participant without the written consent of the Participant; provided, however, that the failure of the Participant to consent to any such amendment will not impair the
ability of the Committee to amend the Plan with respect to any other Participant who has consented to such amendment. 
  
 SECTION 11 
  
 SUCCESSORS 
  
 In addition to any obligations imposed by law upon any successor(s) to the Corporation and the Employers, the Corporation and the Employers will be obligated to require
any successor(s) (whether direct or indirect, by purchase, merger, consolidation, operation of law, or otherwise) to all or substantially all of the business and/or assets of the Corporation and the Employers to expressly assume and agree to perform
this Plan in the same manner and to the same extent that the Corporation and the Employers would be required to perform it if no such succession had taken place; in the event of such a succession, references to “Corporation” and
“Employers” herein will thereafter be deemed to include such successor(s). 
  

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 SECTION 12 
  
 GOVERNING LAW 
  
 The Plan will be governed according to the laws of the Commonwealth of Pennsylvania to the extent not preempted by federal law. 
  
 SECTION 13 
  
 MISCELLANEOUS 
  

	13.1	Liability of the Board 

  
 The Board will not be liable to any person for any action taken or admitted in connection with the administration, interpretation, construction or
variance of the Plan. 
  

	13.2	No Contract of Employment 

  
 Nothing herein will be construed as an offer or commitment by the Corporation or any Affiliate to continue any Participant’s employment with it for
any period of time. 
  

	13.3	Withholding 

  
 All applicable federal, state, local and social security taxes will be withheld and deducted from amounts distributed hereunder, as appropriate.

  

	13.4	Spendthrift Clause 

  
 The right of the Participants to any amounts deferred or invested in this Plan will not be transferable or assignable and will not be subject to
alienation, encumbrance, garnishment, attachment, execution or levy of any kind, voluntary or involuntary, except when, where and if compelled by applicable law. 
  

	13.5	Severability 

  
 Whenever possible, each provision of this Plan will be interpreted in such manner as to be effective and valid under applicable law, but if any provision
of the Plan is held to be prohibited by or invalid under applicable law, then (a) such provision will be deemed to be amended to, and to have contained from the outset such language as is necessary to, accomplish the objectives of the provision as
originally written to the fullest extent permitted by law and (ii) and other provisions of this Plan will remain in full force and effect. 
  

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	13.6	Entire Agreement 

  
 This writing constitutes the final and complete embodiment of the understandings of the parties hereto and all prior understandings and communications of
the parties oral or written concerning this Plan are hereby renounced, revoked and superseded. 
  
 *    *    *    * 
  
 IN WITNESS WHEREOF, this PNC Financial Services Group, Inc. and Affiliates Deferred Compensation Plan, as amended and restated, is adopted by The PNC Financial Services Group, Inc. by the Personnel and Compensation
Committee of its Board of Directors, and the terms and provisions of said Plan as so amended and restated are ratified and approved by said Committee, this 18th day of February, 2004. 
  

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 SCHEDULE A 
  
 AFFILIATES 
  
 PNC Bank, National Association 
 PNC Capital Markets, Inc. 
 The PNC Financial Services Group, Inc. 
 PNC Alliance, LLC. 
 PNC Equity Management Inc. 
 PNC Commercial Management, Inc. 
 PNC Leasing LLC. 
 PNC Brokerage Corp 
 PNC Bank, Delaware 
 PFPC, Inc. 
 PFPC Trust Co. 
 Automated Business Development Corp. 
 Midland Loan Services, Inc. 
 Columbia Housing Partners, L.P. 
 PNC Affordable Housing Inc. 
 TRI Capital Company, Inc. 
  

 -15-Termination & Release Agreement by & among Richard P. Meduski

 EXHIBIT 10.12 
  
 TERMINATION AND RELEASE AGREEMENT 
  
 This Termination and Release Agreement (this “Agreement”) is entered into as of July 15, 2003 by and among Richard
P. Meduski (the “Executive”), Connecticut Bancshares, Inc., a Delaware corporation (“Connecticut Bancshares”), The Savings Bank of Manchester, a Connecticut savings bank and a wholly-owned subsidiary of Connecticut Bancshares
(“Manchester”), and The New Haven Savings Bank, a Connecticut mutual savings bank (“New Haven”). 
  
 RECITALS 
  
 WHEREAS, New Haven, Connecticut Bancshares and Manchester have entered into an Agreement and Plan of Merger, dated as of July 15, 2003 (the “Merger Agreement”); and 
  
 WHEREAS, Section 7.6.5 of the Merger Agreement provides that New Haven,
Connecticut Bancshares, Manchester and the Executive shall enter into this Agreement which shall terminate (1) the Employment Agreement between the Executive, Connecticut Bancshares and Manchester dated March 1, 2000 (the “Bank Employment
Agreement”), (2) the Employment Agreement between the Executive and Connecticut Bancshares dated March 1, 2000 (the “Company Employment Agreement”), (3) the Manchester Supplemental Executive Retirement Plan, as amended and restated
and dated January 1, 2000 (the “SERP”), and (4) the Supplemental Retirement Benefit Agreement between Manchester and the Executive dated September 9, 1997, as amended on October 21, 2002 (the “Supplemental Agreement”), as of the
Effective Date of the Merger, and in lieu of any rights and payments under the Bank Employment Agreement, the Company Employment Agreement, the SERP and the Supplemental Agreement, the Executive shall be entitled to the rights and payments set forth
herein. 
  
 NOW THEREFORE, in consideration of the foregoing and
other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Executive, Connecticut Bancshares, Manchester and New Haven agree as follows: 
  
 1. Certain Actions to Be Taken or Not Taken in 2003. 
  
 (a) The Executive hereby agrees to take the following actions between the
date hereof and December 31, 2003, it being the intention of the parties hereto that all of such actions shall be fully effective and consummated no later than December 31, 2003: 
  
 (i) exercise all vested non-qualified stock options granted to the Executive under Connecticut Bancshares’ 2000
Stock-Based Incentive Plan (the “Incentive Plan”), including non-qualified stock options scheduled to vest prior to December 31, 2003; 
  
 (ii) both (A) exercise all vested incentive stock options granted to the Executive under the Incentive Plan (including incentive stock options scheduled
to vest prior to December 31, 2003) 
  

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 and (B) effect a sale of the shares of Connecticut Bancshares’ common stock acquired upon such exercise in a manner
that will constitute a “disqualifying disposition” of such shares for purposes of Section 421(b) of the Code; and 
  
 (iii) refrain from exercising any stock options granted to the Executive under Connecticut Bancshares’ 2002 Equity Compensation Plan (the
“Compensation Plan”). 
  
 (b) Connecticut Bancshares
and Manchester agree to take such actions as may be necessary or advisable by them in order to permit the Executive to take the actions set forth in Section 1(a) above and have them be fully effective and consummated no later than December 31, 2003,
including without limitation promptly processing all exercises of stock options by the Executive under the Incentive Plan. Neither Connecticut Bancshares nor Manchester shall (i) accelerated the vesting of any unvested restricted stock awards
granted to the Executive under the Incentive Plan or the Compensation Plan, or (ii) accelerate payment of any cash bonus to which the Executive may be entitled to receive pursuant to Manchester’s Bonus Plan for services rendered in 2003.

  
 (c) The Executive may sell or otherwise dispose of shares
acquired pursuant to the exercise of options described in Section 1(a)(i) hereof without regard to the restrictions set forth in the Voting Agreement of even date being entered into between the Executive and New Haven. 
  
 2. Acknowledgement of Payment, Release and Waiver. 

  
 (a) On the Effective Date of the Merger, provided the
Executive is still employed by Manchester immediately prior to such date and has taken all of the actions set forth in Section 1(a) hereof, Connecticut Bancshares and/or Manchester shall pay to the Executive an amount equal to (i) three million two
hundred fifty six thousand two hundred thirty four dollars ($3,256,234.00), subject to adjustment as set forth in Section 2(b) below (the “Maximum Amount”), minus (ii) the Initial Present Value Amount (as defined in Section 3(c) below) of
the welfare benefits to be provided to the Executive pursuant to Section 3(a) below, with applicable withholding taxes to be subtracted from the amount payable to the Executive. In consideration of such payment and the other provisions of this
Agreement, the Executive, Connecticut Bancshares, Manchester and New Haven hereby agree that, except as provided in Section 7 below, the Bank Employment Agreement, the Company Employment Agreement, the SERP and the Supplemental Agreement shall be
terminated without any further action of any parties hereto, effective immediately prior to the Effective Date of the Merger. 
  
 (b) If the payment pursuant to Section 2(a) hereof, either alone or together with other payments and benefits which the Executive has the right to receive
from Connecticut Bancshares, Manchester or New Haven (but excluding amounts payable pursuant to the Noncompetition Agreement of even date being entered into between New Haven and the Executive), would constitute a “parachute payment” under
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), including but not limited to the parachute payments associated with the accelerated vesting of stock options and restricted stock awards, then the amount payable
by Connecticut Bancshares and/or Manchester pursuant to Section 2(a) hereof 
  

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 shall be reduced by the amount which is the minimum necessary to result in no portion of the payment payable by
Connecticut Bancshares and/or Manchester under Section 2(a) being non-deductible to Connecticut Bancshares and/or Manchester (or any successors thereto) pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of
the Code. The parties hereto agree that the present value of the payments and benefits payable pursuant to this Agreement to the Executive upon termination of the Executive’s employment pursuant to Section 2(a) shall not exceed three times the
Executive’s “base amount,” as that term is defined in Section 280G(b)(3) of the Code, less one dollar. The determination of any reduction in the payment to be made pursuant to Section 2(a) shall be based upon an analysis prepared by
Elias, Matz, Tiernan & Herrick L.L.P. (“EMTH”) and paid for by New Haven. EMTH shall provide its analysis no later than five (5) days prior to the Effective Date of the Merger, and may use such actuaries as it may deem necessary or
advisable for the purpose. 
  
 (c) On the Effective Date of the
Merger, Connecticut Bancshares and/or Manchester shall pay to the Executive a lump sum cash amount equal to his vested benefit under the SERP and his vested benefit under the Supplemental Agreement, provided that none of such amount is deemed to be
a parachute payment under Section 280G of the Code. 
  
 3.
Payment of Welfare Benefits. 
  
 (a) For a period of
thirty-six (36) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, health, dental and disability coverage pursuant to the policies offered to its employees for the Executive and any of
his dependents covered by Connecticut Bancshares or Manchester immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six (36) full calendar month period, the Executive shall continue to
be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his dependents with
benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. 
  
 (b) In lieu of receiving one or more of the coverages specified in Section
3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the
cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive
desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003. 
  
 (c) The value of the benefits to be provided by New Haven pursuant to Section
3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover 
  

 3 

 anticipated premium increases over the 36 month period specified in Section 3(a) above. The present value calculations
shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a)
hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence
of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” 
  
 (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage)
increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then
the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount. 
  
 4. Amendments to the Employment Agreements. Each of Section
5(c) of the Bank Employment Agreement and Section 5(c) of the Company Employment Agreement is hereby amended, effective as of the date of this Agreement, by revising the second sentence of such section to read in its entirety as follows: 

 
 “In determining Executive’s average annual compensation, annual
compensation shall include Base Salary and any other taxable income, including but not limited to amounts related to the granting, vesting or exercise of restricted stock or stock option awards, commissions, bonuses, pension, profit sharing and
employee stock ownership plan contributions or benefits (whether pursuant to a tax-qualified plan or a deferred compensation arrangement and whether or not taxable), severance payments, retirement benefits, director or committee fees and fringe
benefits paid or to be paid to Executive or paid for Executive’s benefit during any such year, except that compensation in 2003 shall not include amounts related to (1) any granting or vesting of restricted stock awards after October 31, 2003,
(2) the granting, vesting or exercise of stock options, (3) the income resulting from the disqualifying disposition of shares received upon the exercise of incentive stock options, (4) any payment to the Executive in 2003 of a bonus for services
rendered in 2003, or (5) any other income (whether taxable or not) not included in the amounts shown under “Severance Calculation” on Exhibit 1 attached hereto.” 
  
 5. Amendments to the SERP. Section 4.01 of the SERP is hereby amended, effective as of the date of this
Agreement, by adding Section 4.01(c) at the end of such Section to read in its entirety as follows: 
  

	 	“(c)	Notwithstanding the foregoing, the Supplemental ESOP Benefit shall exclude compensation in 2003 related to (1) the granting or vesting of restricted stock 

 

 4 

 awards after October 31, 2003, (2) the granting, vesting or exercise of stock options, (3) the income
resulting from the disqualifying disposition of shares received upon the exercise of incentive stock options, (4) any payment to the Executive in 2003 of a bonus for services rendered in 2003, or (5) any other income (whether taxable or not) not
included in the amounts shown under “Severance Calculation” on Exhibit 1 attached hereto.” 
  
 Section 4.03 of the SERP is hereby amended, effective as of the date of this Agreement, by adding the following new paragraph at the end of such Section:

  
 “Notwithstanding the foregoing, the Supplemental Pension
Benefit shall exclude compensation in 2003 related to (1) the granting or vesting of restricted stock awards after October 31, 2003, (2) the granting, vesting or exercise of stock options, (3) the income resulting from the disqualifying disposition
of shares received upon the exercise of incentive stock options, (4) any payment to the Executive in 2003 of a bonus for services rendered in 2003, or (5) any other income (whether taxable or not) not included in the amounts shown under
“Severance Calculation” on Exhibit 1 attached hereto. Consequently, the Change in Control provisions under the First Amendment to the SERP, as signed on October 21, 2002 and effective on January 1, 2002, shall be inapplicable in
2003.” 
  
 Section 4.04 of the SERP is hereby amended,
effective as of the date of this Agreement, by adding Section 4.04(c) at the end of such Section to read in its entirety as follows: 
  

	 	“(c)	Notwithstanding the foregoing, the Supplemental Savings Benefit shall exclude compensation in 2003 related to (1) the granting or vesting of restricted stock awards after October
31, 2003, (2) the granting, vesting or exercise of stock options, (3) the income resulting from the disqualifying disposition of shares received upon the exercise of incentive stock options, (4) any payment to the Executive in 2003 of a bonus for
services rendered in 2003, or (5) any other income (whether taxable or not) not included in the amounts shown under “Severance Calculation” on Exhibit 1 attached hereto.” 

  
 6. Amendment to the Supplemental Agreement. Section 2 of
the Supplemental Agreement is hereby amended, effective as of the date of this Agreement, by adding the following new paragraph at the end of such Section: 
  
 “Notwithstanding the foregoing, the amount of the supplemental pension benefit shall exclude compensation in 2003 related to (1) the
granting or vesting of restricted stock awards after October 31, 2003, (2) the granting, vesting or exercise of stock options, (3) the income resulting from the disqualifying disposition of shares received upon the exercise of incentive stock
options, (4) any payment to the Executive in 2003 of a bonus for services rendered in 2003, or (5) any other income (whether taxable or not) not included in the amounts shown under “Severance Calculation” on Exhibit 1 attached hereto.
Consequently, the Change in Control provisions under the First Amendment to the Supplemental Agreement, dated October 21, 2002, shall be inapplicable in 2003.” 
  

 5 

 7. Releases. 
  
 (a) Upon payment of the amounts set forth in Sections 2(a) (as such amount may be adjusted pursuant to Section 2(b) hereof)
and Section 2(c) hereof, the Executive, for himself and for his heirs, successors and assigns, does hereby release completely and forever discharge Connecticut Bancshares, Manchester and their successors from any obligation under the Bank Employment
Agreement, the Company Employment Agreement, the SERP and the Supplemental Agreement, provided that, notwithstanding the foregoing, the Executive does not hereby release Connecticut Bancshares, Manchester and their successors from any obligation to
the Executive under Sections 5(h), (i) and (j) of the Bank Employment Agreement and the Company Employment Agreement with respect to payments by them to the Executive (except as set forth in Section 2(b) hereof), which the parties hereto agree shall
remain in full force and effect. The obligations of New Haven to provide benefits pursuant to Section 3 above shall continue for the period specified therein. 
  

(b) For and in consideration of the commitments made herein by the Executive, each of Connecticut Bancshares and Manchester for itself, and for its
successors and assigns, does hereby release completely and forever discharge the Executive and his heirs, successors and assigns, to the fullest extent permitted by applicable law, from any obligation under the Bank Employment Agreement and the
Company Employment Agreement, provided that, notwithstanding the foregoing, Connecticut Bancshares and Manchester (and their successors) do not hereby release the Executive from any obligation under Sections 5(j), 9 and 10(b) of the Bank Employment
Agreement and the Company Employment Agreement. 
  
 8.
General. 
  
 (a) Heirs, Successors and
Assigns. The terms of this Agreement shall be binding upon the parties hereto and their respective heirs, successors and assigns. 
  
 (b) Final Agreement. This Agreement represents the entire understanding of the parties with respect to the subject matter hereof and
supersedes all prior understandings, written or oral. The terms of this Agreement may be changed, modified or discharged only by an instrument in writing signed by each of the parties hereto. 
  
 (c) Governing Law. This Agreement shall be construed, enforced
and interpreted in accordance with and governed by the laws of the State of Connecticut, without reference to its principles of conflicts of law, except to the extent that federal law shall be deemed to preempt such state laws.  

 
 (d) Defined Terms. Any capitalized terms not defined in this
Agreement shall have as their meaning the definitions contained in the Merger Agreement. 
  

 6 

 (e) Voluntary Action and Waiver. The Executive acknowledges that by his free and voluntary
act of signing below, the Executive agrees to all of the terms of this Agreement and intends to be legally bound thereby. The Executive acknowledges that he has been advised to consult with an attorney prior to executing this Agreement. 

  
 9. Effectiveness. Notwithstanding anything to
the contrary contained herein, this Agreement shall be subject to consummation of the Merger in accordance with the terms of the Merger Agreement, as the same may be amended by the parties thereto in accordance with its terms. In the event the
Merger Agreement is terminated for any reason, this Agreement shall be deemed null and void. 
  
 [Signature Page Follows] 
  

 7 

 IN WITNESS WHEREOF, Connecticut Bancshares, Manchester and New Haven have each caused this Agreement to
be executed by their duly authorized officers, and the Executive has signed this Agreement, effective as of the date first above written. 
  

					
	 WITNESS:
	    	EXECUTIVE:
		
	 /s/ Patricia McLaughlin

	    	 /s/ Richard P. Meduski

	 Name: Patricia McLaughlin
	    	 Name: Richard P. Meduski
 Title:   President and Chief Executive Officer

		
	 ATTEST:
	    	CONNECTICUT BANCSHARES, INC.
			
	 /s/ Carole L. Yungk

	    	 By:
	 	 /s/ Douglas Anderson

	 Name: Carole L. Yungk
	    	 Name: Douglas Anderson
 Title:   Executive Vice President

		
	 ATTEST:
	    	THE SAVINGS BANK OF MANCHESTER
			
	 /s/ Carole L. Yungk

	    	 By:
	 	 /s/ Douglas Anderson

	 Name: Carole L. Yungk
	    	 Name: Douglas Anderson
 Title:   President

		
	 ATTEST:
	    	THE NEW HAVEN SAVINGS BANK
			
	 /s/ Wendy Diaz

	    	 By:
	 	 /s/ Peyton R. Patterson

	 Name: Wendy Diaz
	    	 Name: Peyton R. Patterson
 Title:   Chairman, President and CEO

  

 8

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