Document:

EX-10.12

 

Exhibit 10.12

NATIONAL CITY CORPORATION

MANAGEMENT INCENTIVE PLAN

FOR SENIOR OFFICERS

AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2005

ARTICLE 1. THE PLAN AND ITS PURPOSE

	1.1	 	AMENDMENT AND RESTATEMENT OF THE PREDECESSOR PLAN. This National City Corporation Management
Compensation Plan for Senior Officers is hereby adopted, effective January 1, 2005 (herein
referred as the “Plan”) is an amendment, restatement and continuation of the National City
Corporation Management Incentive Plan for Senior Officers effective February 23, 2004
(“Predecessor Plan”). The Predecessor Plan was, in turn, an amendment, restatement and
continuation of prior plans entitled “National City Corporation Management Incentive Plan for
Senior Officers” in effect prior to February 23, 2004 (“Prior Plans”).
	 
	1.2	 	EFFECTIVENESS. This Plan is effective on and after January 1, 2005, to provide for the
operation of the Plan on and after such date.
	 
	1.3	 	PURPOSE. The purpose of the Plan is to maximize the Corporation’s profitability and
operating success by providing an incentive to officers to achieve superior results. The Plan
is designed to promote teamwork to achieve overall corporate success and to motivate
individual excellence.
	 
	1.4	 	OPERATION OF THE PLAN. The Plan shall be administered by the Committee. The Plan operates on
a calendar year basis and is subject to the review, interpretation, and alteration by the
Committee. The Plan is intended to serve only as a guide to the Corporation in determining
eligibility for and amounts of incentive compensation to be awarded under the Plan.
	 
	1.5	 	TRANSFER OF ACCOUNT BALANCES. All Participants’ deferred account balances maintained under
the Prior Plans are governed by the terms of the National City Corporation Deferred
Compensation Plan, effective January 1, 2001. In the event of any inconsistency between the
terms of the Prior Plans and the National City Corporation Deferred Compensation Plan,
effective January 1, 2001, as amended from time to time (the “Deferred Comp Plan”) the
Deferred Comp Plan shall govern. Effective January 1, 2005, any Participant’s election to
defer amounts otherwise payable under the Plan shall be governed by the terms of the National
City Corporation 2004 Deferred Compensation Plan (the “2004 Deferred Comp Plan”). In the
event of any inconsistency between the terms of the Plan and the 2004 Deferred Comp Plan, as
amended from time to time the 2004 Deferred Comp Plan shall govern.

 

 

ARTICLE 2. DEFINITIONS

	2.1	 	DEFINITIONS. Whenever used herein, the following terms shall have the meanings set forth
below, unless otherwise expressly provided. When the defined meaning is intended, the term is
capitalized.

	 	(a)	 	“Base Salary” shall mean the annual salary as of the close of the Plan Cycle,
exclusive of any bonuses, incentive pay, special awards, or stock options.
	 
	 	(b)	 	“Board” shall mean the Board of Directors of the Corporation.
	 
	 	(c)	 	“Change in Control” see Section 11.3.
	 
	 	(d)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	(e)	 	“Committee” shall mean the Compensation and Organization Committee of the
Board, or another committee appointed by the Board to serve as the administering
committee of the Plan.
	 
	 	(f)	 	“Corporate Award” shall mean the payment earned by a Participant based on the
Corporation’s results as set forth in Section 4.1(b).
	 
	 	(g)	 	“Corporation” shall mean National City Corporation, a Delaware corporation.
	 
	 	(h)	 	“Covered Executive” shall mean any individual who, is, or is determined by the
Committee to be likely to become, a “covered employee” within the meaning of Section
162(m) of the Code.
	 
	 	(i)	 	“Disability” shall mean the inability, by reason of a medically determinable
physical or mental impairment, to engage in substantial and gainful activity for a
continuous period of 26 weeks or more as determined by the Committee.
	 
	 	(j)	 	“Early Retirement” shall mean retirement at or after age 55 with at least ten
years of service with the Employers prior to Normal Retirement.
	 
	 	(k)	 	“Effective Date” see Section 11.4.
	 
	 	(l)	 	“Eligible Employee” shall mean an Employee who is employed in a position
meeting the defined eligibility criteria for participation in the Plan, as set forth in
Article 3.
	 
	 	(m)	 	“Employee” shall mean an individual employed by an Employer on an active basis.
	 
	 	(n)	 	“Employer” shall mean the Corporation or any Subsidiaries.

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	 	(o)	 	“Executive Officer” shall mean the chairman, chief executive officer,
president, vice chairman, executive vice president or a similar officer of the
Corporation, anyone designated by the Board as an executive officer of the Corporation
or a Covered Executive.
	 
	 	(p)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
	 
	 	(q)	 	“Individual Award” shall mean the payment earned by a Participant based on an
evaluation of the individual’s achievements. As such, the amount of any Individual
Award under this Plan is determined by decision of and in the discretion of the
Corporation acting through the Committee as hereinafter provided.
	 
	 	(r)	 	“Implementation Date” see Section 11.5.
	 
	 	(s)	 	“Key Indices” shall mean those indices used by the Corporation to measure
profitability or overall operating performance. The indices shall be based on specific
levels of or change in one or more of the following: return on common equity; return on
assets; overhead ratio; efficiency ratio; net interest margin; total annual return on
common stock; Total Stockholder Return; earnings per share; return on investment;
revenue, expenses; market share; charge-offs and/or non-performing assets. These
indices shall be determined in accordance with generally accepted accounting principles
where applicable. The indices may also include the following objective non-financial
measures: employee satisfaction; employee retention; customer satisfaction; customer
retention; cross-selling; “percentage of wallet”; leadership; and/or management of
change or business transformation. If the Board determines that a change in the
business, operations, corporate structure or capital structure of the corporation, or
the manner in which it conducts its business, or other events or circumstances render
the Key Indices unsuitable, the Board may in its discretion modify such Key Indices, in
whole or in part, as the Board deems appropriate and equitable, except in the case of a
Covered Executive where such action would result in the loss of the otherwise available
exemption of the award under Section 162(m) of the Internal Revenue Code. In such case,
the Board shall not make any modification of the Key Indices.
	 
	 	(t)	 	“Normal Retirement” shall mean leaving the employ of all Employers at or after
the age 62 with at least twenty years of continuous service with the Employers or at or
after the age 65 with at least five years of continuous service with the Employers.
	 
	 	(u)	 	“Participant” shall mean an Eligible Employee who is approved for participation
in the Plan, as set forth in Article 3. Such approval shall be on a Plan Cycle basis
and shall be reviewed with respect to each new Plan Cycle.
	 
	 	(v)	 	“Participation Portion” see Section 3.3.

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	 	(w)	 	“Peer Group” shall mean a group of comparable corporations used to measure
relative performance. The Peer Group shall be established by the Committee prior to
March 31st of each Plan Cycle; thereafter, such Peer Group for such Plan Cycle shall
not be changed, provided however, that one or more members of a Peer Group shall be
dropped therefrom upon the announcement of a definitive agreement to (i) acquire the
Peer Group member, (ii) the acquisition of sixty-five percent or more of the gross
assets of the Peer Group member or (iii) the merger of the Peer Group member with
another company(ies) where the Peer Group member’s then current board of directors will
not constitute a majority of the board of the surviving corporation.
	 
	 	(x)	 	“Person” means any governmental authority, individual, partnership, firm,
corporation, limited liability corporation, association, trust, unincorporated
organization or other entity, as well as any syndicate, or group that would be deemed
to be a person under Section 13(d)(3) or Section 14(d)(2) of the Exchange Act.
	 
	 	(y)	 	“Plan” see Section 1.1.
	 
	 	(x)	 	“Plan Cycle” shall mean a period of a calendar year.
	 
	 	(aa)	 	“Restricted Stock Plans” see Section 9.1.
	 
	 	(bb)	 	“Subsidiary” shall mean an entity in which the Corporation directly or
indirectly owns 50% of more of the voting equity securities.
	 
	 	(cc)	 	“Total Award” shall mean the Individual Award plus the Corporate Award.
	 
	 	(dd)	 	“Total Stockholder Return” with respect to a stock shall be calculated in the
following manner:

	 	(i)	 	Add the Average Stock Price at the end of the Plan Cycle for
such stock to the dividends paid on the stock during the Plan Cycle, and then
subtract the Average Stock Price at the beginning of the Plan Cycle for such
stock.
	 
	 	(ii)	 	Divide the resulting sum of (i) above by the Average Stock
Price at the beginning of the Plan Cycle for such stock.
	 
	 	(iii)	 	The result equals Total Stockholder Return with respect to
such stock for the Plan Cycle.

	 	(ee)	 	“Vesting Event” shall mean the earliest to occur of the following dates:

	 	(1)	 	the date any award is paid,
	 
	 	(2)	 	the last date a benefit can be paid under the Plan,

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	 	(3)	 	the Effective Date of a Change in Control,
	 
	 	(4)	 	the date a Participant takes Normal Retirement,
	 
	 	(5)	 	the date a Participant has a Disability, or
	 
	 	(6)	 	the date of a Participant’s death.

Each Participant and beneficiary with respect to whom a Vesting Event has occurred
shall be 100% vested in his benefits or Total Award earned or accrued hereunder as
of the date of said Vesting Event, subject to the forfeiture provisions of Article
10.

	 	(ff)	 	“Voting Stock” shall mean the then outstanding securities of a company entitled
to vote generally in the election of directors.

	2.2	 	GENDER AND NUMBER. Except when otherwise indicated by the context, any masculine terminology
used herein also shall include the feminine, and the definition of any term in the singular
shall include the plural.

ARTICLE 3. ELIGIBILITY AND PARTICIPATION

	3.1	 	ELIGIBILITY. Eligibility for participation in the Plan will be limited to those Employees of
the Corporation and Subsidiaries who, by the nature and scope of their position, play a key
role in the management, growth and success of the Corporation, as determined by the Committee.
	 
	3.2	 	PARTICIPATION. Participation in the Plan for each Eligible Employee who is an Executive
Officer shall be determined by the Committee with respect to each Plan Cycle prior to the
commencement of the Plan Cycle, except as otherwise provided herein. The Committee may base
its approval upon the recommendation of the Chief Executive Officer of the Corporation. The
chief executive officer shall determine the participation of each Eligible Employee who is not
an Executive Officer. Each Eligible Employee approved for participation shall be notified of
the selection as soon after approval as is practicable and shall become a Participant upon
acceptance by him of such selection.
	 
	3.3	 	PARTICIPATION FOR PART OF A PLAN CYCLE. In the event an Employee is an Eligible Employee for
only a portion of a Plan Cycle (“Participation Portion”) such Eligible Employee may, in the
Committee’s discretion, be a Participant for such portion of the Plan Cycle but his Total
Award will be based upon his Base Salary at the end of such Participation Portion and such
Total Award will normally be prorated to reflect the number of months in the Participation
Portion of the Plan Cycle compared to the number of months in the total Plan Cycle. A Covered
Executive may not be made a Participant after the beginning of a Plan Cycle.

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	3.4	 	CHANGES DURING A PLAN CYCLE. In the event a Participant who is an Executive Officer is
promoted or demoted, the Committee may, in its discretion, (i) continue such Participant’s
target and maximum Total Award as it was prior to such promotion or demotion, (ii) provide the
Participant from and after the promotion or demotion with a higher or lower target and maximum
Total Award, (iii) provide for a combination of (i) and (ii), or (iv) after a demotion remove
the Participant from further participation in the Plan. In the event a Participant who is not
an Executive Officer is promoted or demoted, the Chief Executive Officer may, in his
discretion, (i) continue such Participant’s target and maximum Total Award as it was prior to
such promotion or demotion, (ii) provide the Participant from and after the promotion or
demotion with a higher or lower target and maximum Total Award, (iii) provide for a
combination of (i) and (ii), or (iv) after a demotion remove the Participant from further
participation in the Plan.

	 	(a)	 	In the event of a Plan Cycle for which the Participant’s participation is thus
split between two target Total Awards and two maximum Total Awards, the Total Award for
such Plan Cycle will normally be prorated to reflect the portions of the Plan Cycle
spent under each target and maximum Total Award and each part of the Total Award will
be based upon the Participant’s Base Salary at the end of the appropriate portions of
the Plan Cycle.
	 
	 	(b)	 	The Committee may not increase a Covered Executive’s maximum Total Award during
a Plan Cycle.

	3.5	 	PORTIONS OF PLAN CYCLES-SETTING OF INDIVIDUAL OBJECTIVES. Notwithstanding Sections 3.3 and
3.4, no portion of a Plan Cycle with respect to a Participant shall be considered to be a
separate portion of participation for a Participant unless, prior thereto, individual
achievement objectives are set for such Participant for such portion of a Plan Cycle pursuant
to Article 4, or are waived by the Committee, in its discretion.
	 
	3.6	 	NO RIGHT TO PARTICIPATE. No Participant or Employee shall have a right at any time to be
selected for current or future participation in the Plan.

ARTICLE 4. PERFORMANCE MEASUREMENT

	4.1	 	PERFORMANCE CRITERIA. Performance, for purposes of this Plan, will be measured in terms of
the Participant’s individual contribution and in terms of the Corporation’s performance.

	 	(a)	 	Individual Awards will be determined by comparing actual individual and group
achievements during the Plan Cycle to established objectives for the Plan Cycle. Not
later than 90 days after the commencement of each Plan Cycle each Participant shall
establish objectives for the Plan Cycle. Such objectives shall be broad in nature, may
be quantitative or qualitative, will typically be five in number and may include the
achievement of group or divisional goals as well as

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individual goals. The objectives for Participants other than the chief executive
officer of the Corporation shall be subject to the review, revision and approval of
their superiors and the objectives for the chief executive officer shall be subject
to the review, revision and approval of the Committee.

	 	(1)	 	INDIVIDUAL AWARD POTENTIAL. The Committee shall establish in
writing the target and maximum Individual Awards for each Participant not later
than 90 days after the commencement of each Plan Cycle.
	 
	 	(2)	 	INDIVIDUAL AWARD CALCULATION AND APPROVAL. An evaluation of
the individual performance for each Participant for each Plan Cycle will be
determined as of the December 31st on which the Plan Cycle ends by applying the
foregoing provisions of this Article 4 to the Participant’s Individual
Contribution for such Plan Cycle. Based on the evaluation, the chief executive
officer of the Corporation shall recommend to the Committee for approval an
appropriate Total Award for each of the Participants who is an Executive
Officer. The chief executive officer shall also determine the Total Award of
all Participants other than Executive Officers which shall be deemed approved
by the Committee upon (1) the completion by the chief executive officer of a
list of such Individual Awards, and (2) the Committee’s approval of the
aggregate dollar amount of such Individual Awards. The chief executive officer
shall recommend to the Committee for approval the Individual Awards and Total
Awards for each of the Executive Officers.
	 
	 	(3)	 	All such Individual Awards may, for convenience purposes, be
expressed as a percentage of Base Salary or some other criteria. Upon the
approval of the Committee the amounts of Individual Awards hereunder for a Plan
Cycle shall be final.
	 
	 	(4)	 	No Individual Awards shall be paid to any Participant for a
Plan Cycle during which the Participant is a Covered Executive.

	 	(b)	 	Corporate Awards will be determined by comparing corporate performance with
respect to Key Indices. The performance may be relative to pre-established goals, that
of the Peer Group or any other objective standard established by the Committee. Not
later than 90 days after the commencement of each Plan Cycle, the Committee shall
establish in writing the Peer Group, if any, the Key Indices, the weighting of the Key
Indices chosen, and the levels of comparative performance (the performance of goals may
be stated as alternative goals) at which the maximum Corporate Award will be provided
under the Plan.

	 	(1)	 	CORPORATE AWARD POTENTIAL. The Committee shall establish in
writing the target and maximum Corporate Awards for each Participant not later
than 90 days after the commencement of each Plan Cycle.

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	 	(2)	 	CORPORATE AWARD CALCULATION AND APPROVAL. The amount of the
Corporate Award for each Participant for each Plan Cycle will be calculated as
of the December 31st on which the Plan Cycle ends by applying the provisions of
this Section 4.1 to the Corporation’s performance for such Plan Cycle.
Corporate Awards may, for convenience purposes, be expressed as a percentage
Base Salary or some other criteria. Upon the close of the Plan Cycle the
amounts of Corporate Awards hereunder for such Plan Cycle shall be determined.
The Committee has the discretion to reduce the Corporate Award payable to any
Participant notwithstanding attainment of any performance goal. Notwithstanding
the occurrence of a Vesting Event, the Committee may reduce or eliminate a
Corporate Award to any or all Participants at any time prior to the payment of
the Total Award or an Implementation Date of a Change in Control.

	4.2	 	LIMITATION. Notwithstanding any provision of this Plan to the contrary, no Total Award to
any Covered Executive for any given Plan Cycle shall exceed 1.0% of the Corporation’s earnings
before taxes and any one time earnings, expenses or charges.

ARTICLE 5. PAYMENT OF TOTAL AWARDS

	5.1	 	FORM AND TIMING OF PAYMENT OF TOTAL AWARDS. No later than March 15th of the
calendar year following the end of the Plan Cycle, the Participant shall be entitled to
receive a cash payment(s) equal to the entire amount of the Participant’s Total Award. Except
as otherwise provided for in Section 5.2, to receive a Total Award a Participant must be an
Employee on the date on which the Plan Cycle ends; provided, however, the Committee or the
Chief Executive Officer may reduce or terminate a Participant’s Total Award prior to any
Vesting Event if such Participant fails to continue to be an Employee.
	 
	5.2	 	TERMINATION OF EMPLOYMENT DUE TO RETIREMENT, DISABILITY OR DEATH. In the event a
Participant’s employment is terminated during a Plan Cycle by reason of Normal Retirement,
Disability or Death, the Participant shall be eligible to receive a prorated Total Award based
on individual contribution during the Participant’s participation in the Plan Cycle and the
Corporation’s performance for the year, provided however, that the Participant must have been
a Participant in the Plan for at least three months of the Plan Cycle to be eligible to
receive any Total Award hereunder. Such Total Awards will be paid no later than March
15th of the calendar year following the end of the Plan Cycle. In the event of
death, the Total Award will be paid to the Participant’s estate.
	 
	5.3	 	TERMINATION OF EMPLOYMENT DUE TO EARLY RETIREMENT. The Committee may elect, in its
discretion, to pay a prorated Total Award to a Participant who terminates employment by means
of an Early Retirement prior to a Vesting Event; in the absence of such favorable
discretionary action by the Committee, no such pro-rated

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Total Award shall be paid. Any prorated Total Award will be paid no later than March
15th of the calendar year following the end of the Plan Cycle.

	5.4	 	OTHER TERMINATIONS OF EMPLOYMENT. In the event a Participant’s employment is terminated for
any reason other than as set forth in Sections 5.2 and 5.3 hereof during a Plan Cycle prior to
a Vesting Event, the Participant’s participation in such Plan Cycle shall end and the
Participant shall not be entitled to any Total Award for such Plan Cycle.
	 
	5.5	 	REQUEST TO RECEIVE RESTRICTED STOCK; RESTRICTED STOCK PAYMENTS. The Committee may determine
that one or more Participants should be eligible to request to have a portion or all of his
Total Award for a Plan Cycle paid in Restricted Stock. Such request by an eligible Participant
shall be considered by the Committee, but the actual determination shall be made by the
Committee in its complete and total discretion. The Committee may determine that some, all, or
none of the Total Awards, or parts thereof, shall be paid in Restricted Stock, in its
discretion. Restricted Stock payments are subject to the provisions of Article 9, provided
that such determination shall be made by the payment date for the Total Awards for a Plan
Cycle.

ARTICLE 6. RIGHTS OF PARTICIPANTS

	6.1	 	EMPLOYMENT. Nothing in this Plan shall interfere with or limit in any way the right of the
Corporation to terminate a Participant’s employment at any time, nor confer upon any
Participant any right to continue in the employ of the Employer.
	 
	6.2	 	RESTRICTIONS ON ASSIGNMENTS. The interest of a Participant or his beneficiary under this
Plan may not be sold, transferred, assigned, or encumbered in any manner, either voluntarily
or involuntarily, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge,
encumber, or charge the same shall be null and void; neither shall the benefits hereunder be
liable for or subject to the debts, contracts, liabilities, engagements, or torts of any
person to whom such benefits or funds are payable, nor shall they be subject to garnishment,
attachment, or other legal or equitable process, nor shall they be an asset in bankruptcy.

ARTICLE 7. ADMINISTRATION

	7.1	 	ADMINISTRATION. The Plan shall be administered by the Committee in accordance with any
administrative guidelines and any rules that may be established from time to time by the
Committee. The procedures, standards and provisions of this Plan for determining eligibility
for and amounts of Total Awards are, except for Covered Employees, intended only as a guide
and in themselves confer no rights, duties or privileges upon Participants nor place any
obligation upon the Committee, the Board or the Corporation. Accordingly, the Committee may,
in making its determinations hereunder, deviate from such procedures and standards in whatever
manner that it, in its

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judgment, deems appropriate so long as no Total Award shall exceed the Section 4.2
limitation.

	 	(a)	 	The Committee shall have full power and authority to interpret, construe and
administer the Plan and its interpretations and construction hereof, and actions
hereunder, including the timing, form, amount or recipient of any payment to be made
hereunder, and its decisions shall be binding and conclusive on all persons for all
purposes.
	 
	 	(b)	 	The Committee may name assistants who may be, but need not be, members of the
Committee. Such assistants shall serve at the pleasure of the Committee, and shall
perform such functions as may be assigned by the Committee.
	 
	 	(c)	 	No member of the Committee or any assistant shall be liable to any person for
any action taken or omitted in connection with the interpretation and administration of
this Plan unless attributable to his own willful misconduct or lack of good faith.

ARTICLE 8. REQUIREMENTS OF LAW

	8.1	 	LAWS GOVERNING. This Plan shall be construed in accordance with and governed by the laws of
the State of Ohio.
	 
	8.2	 	WITHHOLDING TAXES. The Corporation shall have the right to deduct from all payments under
this Plan any federal or state taxes required by the law to be withheld with respect to such
payments.
	 
	8.3	 	PLAN BINDING ON CORPORATION, Employees and Successors. This Plan shall be binding upon and
inure to the benefit of the Corporation, its successors and assigns and each Participant and
his beneficiaries, heirs, executors, administrators and legal representatives.

ARTICLE 9. RESTRICTED STOCK

	9.1	 	RESTRICTED STOCK. The Restricted Stock referred to in this Plan shall be restricted stock
granted pursuant to the National City Corporation 1997 Restricted Stock Plan, the National
City Corporation 2002 Restricted Stock Plan or the National City Corporation Long-Term Cash
and Equity Incentive Plan, as such plans are amended from time to time (“Restricted Stock
Plans”) and/or restricted stock units (“Restricted Stock”) granted pursuant to the National
City Corporation Long-Term Cash and Equity Incentive Plan, as such plan is amended from time
to time. Any awards of Restricted Stock will be made at the discretion of the Committee and
shall be subject to the terms, conditions and restrictions contained in the Restricted Stock
Plans and the award agreement controlling each Restricted Stock award grant.
	 
	9.2	 	PARTICIPANT REQUEST FOR RESTRICTED STOCK. Prior to the end of each Plan Cycle, the Committee
shall determine which Participants, if any, shall be eligible to

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request payment of all or a portion of their Total Award in the form of Restricted Stock.
Each Participant who is therefore eligible to request payment of all or a portion of his
Total Award for such Plan Cycle in the form of Restricted Stock, shall be given the
opportunity prior to the end of such Plan Cycle, to make such request. Covered Executives,
however, must request Restricted Stock prior to the 90th day after the commencement of each
Plan Cycle. Notwithstanding any request made hereunder (or the absence of any such request)
the actual determination whether to pay all or a portion of a Participant’s Total Award in
Restricted Stock shall be made by the Committee at its complete and total discretion in
accordance with the provisions of Section 9.3 below. Any request of a portion of the Total
Award to be paid in the form of Restricted Stock shall be made in terms of such increments
of the Total Award as may be established by the Committee from time to time. Notwithstanding
the foregoing, no Participant shall be eligible to elect to request the payment of any
portion of his Total Award in Restricted Stock where such Participant has previously elected
to defer the payment of that portion of his Total Award under the 2004 Deferred Comp Plan.

	9.3	 	RESTRICTED STOCK AWARDS; COMMITTEE’S DECISION. Notwithstanding any request by a Participant
pursuant to Section 9.2 above to receive none, a portion or all of a Total Award in the form
of Restricted Stock, and not withstanding the Committee’s prior determination as to the
eligibility of any Participant to elect to receive a part or all of their Total Award in the
form of Restricted Stock, the Committee shall make the decision, in the case of each
Participant, whether or not to pay any portion or all of any Participant’s Total Award with
respect to any Plan Cycle in the form of Restricted Stock. Such decision shall be made in the
complete and absolute discretion of the Committee, provided that such determination shall be
made by the payment date for the Total Awards for a Plan Cycle. Notwithstanding the
foregoing, no portion of a Participant’s Total Award which has been electively deferred under
the 2004 Deferred Comp Plan shall be paid in the form of Restricted Stock. The Committee’s
decision shall be final and binding on all parties.
	 
	9.4	 	DETERMINATION OF THE NUMBER OF SHARES OF RESTRICTED STOCK. The number of shares of
Restricted Stock to be granted to a Participant shall be determined as follows:

	 	(a)	 	The Committee shall determine the Participant’s Total Award for the applicable
Plan Cycle in accordance with Article 4 of this Plan.
	 
	 	(b)	 	The appropriate percentage of the Total Award to be paid in Restricted Stock as
determined in Section 9.3 shall be multiplied by the Participant’s Total Award for such
Plan Cycle.
	 
	 	(c)	 	The product from Section 9.4(b) shall be multiplied by a percentage determined
by the Committee from time to time but not to exceed 125%. The Committee may establish
different percentages for different Participants Such percentage or percentages shall
be established by the Committee prior to the beginning of the Plan Cycle.

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	 	(d)	 	The product from Section 9.4(c) shall be divided by the closing price, per
share, of the shares of common stock of the Corporation on the New York Stock Exchange
on the last trading day of the month of January following such Plan Cycle.
	 
	 	(e)	 	The quotient determined in Section 9.4(d) above shall be rounded to the nearest
whole share. No fractional shares of Restricted Stock shall be awarded.

	9.5	 	RESTRICTIONS. It is currently anticipated that the restricted period, with respect to the
Restricted Stock Plan restrictions on all Restricted Stock awarded hereunder shall fully
expire, on the earliest of (i) the Participant’s death, (ii) the Participant’s Disability,
(iii) Effective Date of a Change in Control or (iv) one year after the date of the Restricted
Stock award.
	 
	9.6	 	ALTERNATIVES TO THE RESTRICTED STOCK PLANS. If the Restricted Stock Plans are terminated at
any time and a new plan is adopted which provides similar benefits or is intended to replace
the Restricted Stock Plans, then such new plan shall be utilized for making the Restricted
Stock grant. Should no Restricted Stock plan be available the amount of the Restricted Stock
payment will, at the sole discretion of the Corporation, be made in an alternative form which
would not restrict receipt of shares of the Corporation’s common stock beyond the period of
time provided in the anticipated Restricted Stock grant, or in cash.

ARTICLE 10 FORFEITURES

Notwithstanding any provision in this Plan to the contrary excepting only the provisions of Article
11, in the event the Committee finds:

          (a) that an Employee or former Employee who has an interest under this Plan has been
discharged by his Employer in the reasonable belief (and such reasonable belief is the reason or
one of the reasons for such discharge) that the Employee or former Employee did engage in fraud
against the Employer or anyone else, or

          (b) that an Employee or former Employee who has an interest under this Plan has been convicted
of a crime as a result of which it becomes illegal for his Employer to employ him, then any amounts
held under this Plan for the benefit of such Employee or former Employee or his beneficiaries shall
be forfeited and no longer payable to such Employee or former Employee or to any person claiming by
or through such Employee or former Employee.

ARTICLE 11 CHANGE IN CONTROL

	11.1	 	TREATMENT OF TOTAL AWARDS. In the event of a Change in Control, the Corporation shall pay to
each Participant who is participating in a Plan Cycle on the Implementation Date of such
Change in Control, a lump sum payment equal to the amount hereinafter determined. Such payment
shall be paid in cash (subject only to a

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valid preexisting election by the Participant to have a portion of his Total Award deferred
under the 2004 Deferred Comp Plan) to the Participant within five business days after the
Implementation Date of the Change in Control and shall be payment in full to each
Participant for the Plan Cycle, and such Plan Cycle shall be deemed terminated by operation
of this Article 12. No further Plan Cycles shall commence thereafter under this Plan.

	11.2	 	AMOUNT OF PAYMENT. The amount of the payment to be made as a consequence of a Change in
Control with respect to the Plan Cycle ending on the Implementation Date of the Change in
Control, shall be equal to the greater of: (a) the average of the Total Awards paid to the
Participant for the two Plan Cycle immediately preceding Plan Cycle ending on the
Implementation Date, and (b) the Participant’s target Total Award which could be paid
hereunder for the full Plan Cycle ending on the Implementation Date to the Participant only
pro-rated, however, to reflect late commencement of participation in a Plan Cycle and/or
promotions/demotions consistent with Section 3.4 of the Plan.
	 
	11.3	 	DEFINITION OF CHANGE IN CONTROL. “Change in Control” shall mean the occurrence of any of the
following events:

	 	(a)	 	the Corporation is merged, consolidated or reorganized into or with a Person,
and as a result of such merger, consolidation or reorganization less than sixty-five
percent of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such transaction are held in the aggregate by
the holders of Voting Stock of the Corporation immediately prior to such transaction;
	 
	 	(b)	 	the Corporation sells or otherwise transfers all or substantially all of its
assets to another Person, and as a result of such sale or transfer less than sixty-five
percent of the combined voting power of the then-outstanding Voting Stock of such
corporation or person immediately after such sale or transfer is held in the aggregate
by the holders of Voting Stock of the Corporation immediately prior to such sale or
transfer;
	 
	 	(c)	 	any individual, entity or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act) becomes the beneficial owner (as the term
“beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation
promulgated under the Exchange Act) of securities representing more than fifteen
percent (15%) of the Voting Stock of the Corporation provided, however,
that:

	 	(1)	 	for purposes of this Section 11.3(c), the
following acquisitions shall not constitute a Change in Control: (A)
any acquisition of the Voting Stock of the Corporation directly from
the Corporation that is approved by a majority of the Incumbent
Directors (defined below), (B) any acquisition of the Voting Stock of
the Corporation by the Corporation, and (C) any acquisition of the
Voting Stock of

13

 

the Corporation by a trustee or other fiduciary holding securities
under any employee benefit plan (or related trust) sponsored or
maintained by the Corporation or any Subsidiary of the Corporation;

	 	(2)	 	if any Person is or becomes the beneficial
owner of 15% or more of the combined voting power of the
then-outstanding Voting Stock of the Corporation as a result of a
transaction described in clause (A) of Section 11.3(c)(1) above and
such Person thereafter becomes the beneficial owner of any additional
shares of the Voting Stock of the Corporation representing 1% or more
of the then-outstanding the Voting Stock of the Corporation, other than
in an acquisition directly from the Corporation that is approved by a
majority of the Incumbent Directors or other than as a result of a
stock dividend, stock split or similar transaction effected by the
Corporation in which all holders of the Voting Stock of the Corporation
are treated equally, such subsequent acquisition shall be treated as a
Change in Control unless exempted by Section 11.3(c)(4) below;
	 
	 	(3)	 	a Change in Control will not be deemed to have
occurred if a Person is or becomes the beneficial owner of 15% or more
of the Voting Stock of the Corporation as a result of a reduction in
the number of shares of the Voting Stock of the Corporation outstanding
pursuant to a transaction or series of transactions that is approved by
a majority of the Incumbent Directors unless and until such Person
thereafter becomes the beneficial owner of any additional shares of the
Voting Stock of the Corporation representing 1% or more of the
then-outstanding Voting Stock of the Corporation, other than as a
result of a stock dividend, stock split or similar transaction effected
by the Corporation in which all holders of the Voting Stock of the
Corporation are treated equally; and
	 
	 	(4)	 	if within 45 days of first learning a Person
has acquired or is to acquire beneficial ownership of 15% or more of
the Voting Stock of the Corporation the Board by majority vote of the
Incumbent Directors (i) determines that a Person’s acquisition of
beneficial ownership of 15% or more of the Voting Stock of the
Corporation does not constitute a Change in Control and (ii)
establishes a limit (such limit to be less than 50% of the Voting Stock
of the Corporation) as to the maximum number of shares such Person may
acquire before a Change in Control shall be deemed to have occurred,
then no Change in Control shall have occurred as a result of such
Person’s applicable acquisition(s);

14

 

	 	(d)	 	if, during any period of two consecutive years, individuals who at the
beginning of any such period constitute the Directors of the Corporation (“Incumbent
Directors”) cease for any reason to constitute at least a majority thereof; provided,
however, that for purposes of this clause (d) each Director who is first elected, or
first nominated for election by the Corporation’s stockholders, by a vote of at least
two-thirds of the Directors of the Corporation (or a committee thereof) then still in
office who were Directors of the Corporation at the beginning of any such period will
be deemed to have been a Director of the Corporation at the beginning of such period;
or
	 
	 	(e)	 	approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.
	 
	 	Notwithstanding the foregoing provisions of Section 11.3(a), 11.3(b) or 11.3(d), in the case
where the individuals who constitute the Incumbent Directors at the time a specific
transaction described in Section 11.3(a) or 11.3(b) is first presented or disclosed to the
Board, will, by the terms of the definitive agreement for that transaction, constitute at
least fifty percent (50%) of the resulting corporation’s or Person’s directors immediately
following consummation of such transaction, provided that such resulting corporation’s or
Person’s directors are not subject to removal following the consummation of the transaction
as a result of the terms and conditions of the transaction, then, prior to the occurrence of
any event that would otherwise constitute a Change in Control under Section 11.3(a), 11.3(b)
or 11.3(d), the Board may determine by majority vote of the Incumbent Directors that the
specific transaction does not constitute a Change in Control under Sections 11.3(a), 11.3(b)
and/or 11.3(d).

	11.4	 	EFFECTIVE DATE OF CHANGE IN CONTROL. Notwithstanding the foregoing, in the event a Change in
Control ultimately results from discussions or negotiations involving the Corporation or any
of its officers or directors, the “Effective Date” of such Change in Control shall be the date
uninterrupted discussions or negotiations commenced; otherwise, such Effective Date of a
Change in Control shall be the Implementation Date of such Change in Control.
	 
	11.5	 	IMPLEMENTATION DATE OF CHANGE IN CONTROL. The “Implementation Date” shall be the earliest to
occur of the events specified in Section 11.3. As used herein, the Implementation Date of a
Change in Control shall be the last date of the then current Plan Cycle.
	 
	11.6	 	EFFECT OF CHANGE IN CONTROL. In addition to other vesting under the Plan, the opportunity of
a Participant to participate until the current Plan Cycle ends or is terminated is vested in
such Participant in the event of a Change in Control, as of the Effective Date of such Change
in Control.

15

 

ARTICLE 12. MISCELLANEOUS

In the event of the liquidation of the Corporation the Committee may make any provisions for
holding, handling and distributing the amounts standing to the credit of the Participants or
beneficiaries hereunder which, in the discretion of the Committee which in the discretion of the
Committee, are appropriate and equitable under all circumstances and which are consistent with the
spirit and purposes of these provisions.

ARTICLE 13. AMENDMENT AND DISCONTINUANCE

The Corporation expects to continue this Plan indefinitely, but reserves the right, by action of
the Committee, to amend it from time to time, or to discontinue it if such a change is deemed
necessary or desirable except that stockholder approval shall be required for any amendment or
modification of this Plan that, in the opinion of the Corporation’s counsel, would be required by
Section 162(m) of the Internal Revenue Code of 1986, as amended, or any regulations promulgated
thereunder. However, if the Committee should amend or discontinue this Plan, the Corporation shall
remain obligated under the Plan with respect to (1) Total Awards made final (and thus payable) by
decision by the Committee prior to the date of such amendment or discontinuance, and (2) Total
Awards and rights of any Participant or beneficiary with respect to whom a Vesting Event has
occurred.

Executed this                      day of                                         , 2007 at Cleveland, Ohio but
effective January 1, 2005.

	 	 	 	 	 
	 	NATIONAL CITY CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

16EX-10.26

 

Exhibit 10.26

NATIONAL CITY CORPORATION LONG-TERM

CASH AND EQUITY INCENTIVE PLAN

Effective January 1, 2005

ARTICLE 1

ESTABLISHMENT AND PURPOSE OF PLAN

	1.1	 	ESTABLISHMENT OF THE PLAN. The following are the provisions of the National City Corporation
Long-Term Cash and Equity Incentive Plan, effective as of January 1, 2005 (herein referred to
as the “Plan”) that is an amendment and restatement of the National City Corporation Long-Term
Cash and Equity Incentive Plan, originally effective January 1, 2004.
	 
	 	 	The Plan shall be effective for all purposes with respect to Plan Cycles commencing on or
after January 1, 2005 and with respect to Plan Cycles commencing prior to January 1, 2005
for which a Vesting Event had not occurred prior to January 1, 2005.
	 
	1.2	 	PURPOSE. The purpose of the Plan is to maximize the returns to stockholders and to promote
the long-term profitability and success of the Corporation by aligning the long-term financial
interests of Participants with those of stockholders and providing an incentive to those
Directors and key executives who are primarily responsible for such profitability and success
of the Corporation.
	 
	1.3	 	TERM. No awards shall be made pursuant to this plan after the tenth anniversary of its
original effective date, January 1, 2004.

ARTICLE 2

DEFINITIONS

	2.1	 	DEFINITIONS. Whenever used herein, the following terms shall have the meanings set forth
below, unless otherwise expressly provided. When the defined meaning is intended, the term is
capitalized,

	 	(a)	 	“Active Participant” shall mean an Eligible Employee who is approved by the
Board for participation in a Plan Cycle. Such approval shall be determined with
respect to each Plan Cycle no later than 90 days after the commencement of that Plan
Cycle, and shall be redetermined with respect to each new Plan Cycle.
	 
	 	(b)	 	“Additional Option” means an Option Right granted to an Optionee in connection
with the exercise of an option as described in Section 5.4
	 
	 	(c)	 	“Additional Option Feature” means a feature of an Option Agreement that
provides for the automatic grant of an Additional Option in accordance with the
provisions described in Section 5.4.

1

 

	 	(d)	 	“Additional Option Price” see Section 5.4.
	 
	 	(e)	 	“Appreciation Award Price” see Section 9.1.
	 
	 	(f)	 	The term “Appreciation Right” means a right granted pursuant to either Section
5.5 or Section 9.1 of this Plan.
	 
	 	(g)	 	“Appreciation Right Award Agreement” see Section 9.1.
	 
	 	(h)	 	“Average Stock Price” shall be determined with respect to each Plan Cycle for
the month of December prior to such Plan Cycle (the Average Stock Price at the
beginning of the Plan Cycle) and for the last full calendar month of the Plan Cycle
(the Average Stock Price at the end of the Plan Cycle) and shall mean the arithmetic
mean (the average) of the closing prices of a share of common stock of a company as
reported on any national securities exchange (or by any national quotation system
accepted by the Board for this purpose) for each of the trading days (on which such
shares were traded) in such calendar month. If the shares of common stock are not then
so traded or regularly reported, the stock price shall be determined by such means as
the Board shall determine. Notwithstanding the foregoing, the Board may determine
prior to the start of a Plan Cycle that a different set of time periods are appropriate
for measuring performance under the Plan, and such different time periods may be used
to determine Average Stock Prices at the beginning and the end of such Plan Cycle.
	 
	 	(i)	 	“Award” shall mean, individually or collectively, a Plan Cycle Award, Option
Rights Award, Appreciation Rights Award, Restricted Stock Award, RSU Award, Common
Stock Award, any other payment or right to receive cash or equity granted pursuant to
the Plan, or any combination thereof.
	 
	 	(j)	 	“Base Salary” shall mean the average annual salary of an employee during that
portion, or all of the Plan Cycle for which he or she is an Active Participant,
exclusive of any bonuses, incentive pay, special awards, or any Awards.
	 
	 	(k)	 	“Board” shall mean the Board of Directors of the Corporation.
	 
	 	(l)	 	“Change in Control” see Section 15.5.
	 
	 	(m)	 	“Committee” means the Committee provided for in Section 12.1 of this Plan.
	 
	 	(n)	 	“Common Stock” means common stock, par value $4 per share, of the Corporation
and any security into which such common stock may be changed by reason of any
Recapitalization.
	 
	 	(o)	 	“Common Stock Award” see Article 10.
	 
	 	(p)	 	“Corporation” shall mean National City Corporation, a Delaware corporation.

2

 

	 	(q)	 	“Covered Executive” shall mean any individual who, is, or is determined by the
Board to be likely to become, a “covered employee” within the meaning of Section 162(m)
of the Internal Revenue Code of 1986, as amended.
	 
	 	(r)	 	“Director” means an elected or appointed member of the Board, but does not
include any honorary member of the Board or other person not entitled as a matter of
law to vote and otherwise participate in regular meetings of the Board.
	 
	 	(s)	 	“Director Year” means a period of time commencing on the date of the
Corporation’s Annual Meeting of Stockholders for any year and ending on the day before
the Corporation’s Annual Meeting of Stockholders for its next immediately ensuing year.
	 
	 	(t)	 	“Disability” shall mean the inability, by reason of a medically determinable
physical or mental impairment, to engage in substantial and gainful activity for a
continuous period of 26 weeks or more as determined by the Board.
	 
	 	(u)	 	“DRS” means Direct Registration System (book entry through the Corporation).
	 
	 	(v)	 	“Effective Date” see Section 15.6.
	 
	 	(w)	 	“Eligible Employee” means an Employee or a Subsidiary Director who, by the
nature and scope of their position, plays a key role in the management, growth and
success of the Corporation.
	 
	 	(x)	 	“Employee” shall mean an individual employed by an Employer on an active basis.
	 
	 	(y)	 	“Employer” shall mean the Corporation or any Subsidiary.
	 
	 	(z)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
	 
	 	(aa)	 	“Executive Officer” shall mean the chairman, chief executive officer,
president, vice chairman, an executive vice president, a similar officer of the
Corporation, anyone designated by the Board as an executive officer of the Corporation
or a Covered Executive.
	 
	 	(bb)	 	“Extraordinary Items” means (i) extraordinary, unusual and/or non-recurring
items of gain or loss, including but not limited to, restructuring or
restructuring-related charges, (ii) gains or losses on the disposition of a business,
(iii) changes in tax or accounting regulations or laws, or (iv) the effect of a merger
or acquisition, all of which are identified in the Corporation’s audited financial
statements or the Corporation’s annual report to stockholders.
	 
	 	(cc)	 	“Implementation Date” see Section 15.7.
	 
	 	(dd)	 	“Inactive Participant” shall mean an individual who was an Active Participant
in the Plan for a Plan Cycle who is not currently an Active Participant for a Plan
Cycle but who continues to have an interest under the Plan.

3

 

	 	(ee)	 	“Incentive Stock Option” means an Option Right granted by the Corporation to an
Employee, which Option Right is intended to qualify as an “Incentive Stock Option” as
that term is used in Section 122 of the Internal Revenue Code.
	 
	 	(ff)	 	“Internal Revenue Code” means the 1986 Internal Revenue Code, as amended from
time to time.
	 
	 	(gg)	 	“Key Indices” shall mean those indices used by the Corporation to measure
profitability or overall operating performance. The indices shall be based on specific
levels of or change in one or more of the following: return on common equity; return on
assets; overhead ratio; efficiency ratio; net interest margin; total annual return on
common stock; Total Stockholder Return; earnings per share; return on investment,
revenue, expenses, market share, charge-offs and/or non-performing assets. These
indices shall be determined in accordance with generally accepted accounting principles
where applicable. The indices may also include the following objective non-financial
measures: employee satisfaction, employee retention, customer satisfaction, customer
retention, cross-selling, “percentage of wallet”, leadership, management of change or
business transformation. If the Board determines that a change in the business,
operations, corporate structure or capital structure of the corporation, or the manner
in which it conducts its business, or other events or circumstances render the Key
Indices unsuitable, the Board may in its discretion modify such Key Indices, in whole
or in part, as the Board deems appropriate and equitable, except in the case of a
Covered Executive where such action would result in the loss of the otherwise available
exemption of the award under Section 162(m) of the Internal Revenue Code. In such
case, the Board shall not make any modification of the Key Indices.
	 
	 	(hh)	 	“Long Term Equity Incentive Award Committee” see Section 6.5.
	 
	 	(ii)	 	“Market Value per Share” means, at any date, the closing price, per share, of a
share of Common Stock, on the New York Stock Exchange on the trading day immediately
preceding such date as reported by the Wall Street Journal (Midwest Edition) or, if the
Common Stock shall be primarily traded in another market, as determined in a manner
specified by the Board using quotations in such other market. Effective October 23,
2006, “Market Value per Share” means, at any date, the closing price, per share, of a
share of Common Stock, on the New York Stock Exchange on such date as reported by the
Wall Street Journal (Midwest Edition) or, if the Common Stock shall be primarily traded
in another market, as determined in a manner specified by the Board using quotations in
such other market.
	 
	 	(jj)	 	“Normal Retirement” shall mean leaving the employ of all Employers at or after
the age 62 with at least twenty (20) years of continuous service with the Employers or
at or after the age 65 with at least five (5) years of continuous service with the
Employers.
	 
	 	(kk)	 	“Option Agreement” means the written agreement between the Optionee and the
Corporation relating to the grant of Option Rights to the Optionee.

4

 

	 	(ll)	 	“Optionee” means the optionee named in an Option Agreement.
	 
	 	(mm)	 	“Option Price” means the per share amount the Optionee must pay in order to
exercise an Option Right.
	 
	 	(nn)	 	“Option Right” means the right to purchase a share of Common Stock upon
exercise of an Outstanding Option.
	 
	 	(oo)	 	“Outstanding Option” means, at any time, an option to purchase shares of Common
Stock granted by the Corporation pursuant to this plan or any other stock option plan
of the Corporation or any Subsidiary now or hereafter in effect, or pursuant to any
stock option plan of any corporation which is merged into the Corporation or a
Subsidiary and where the Corporation has by action of its Board, assumed the
obligations of such corporation under such stock option plan, all whether or not such
option is at the time exercisable, to the extent that such option at such time has
neither been exercised nor terminated.
	 
	 	(pp)	 	“Participant” shall mean and include all Active Participants and all Inactive
Participants.
	 
	 	(qq)	 	“Peer Group” shall mean a group of comparable corporations used to measure
relative performance. Such Peer Group shall be established by the Board for each Plan
Cycle by the 90 day after the commencement of the Plan Cycle, and shall not thereafter
be changed with respect to such Plan Cycle, provided, however, that one or more members
of a Peer Group (each a “Peer Group Member”) shall be dropped therefrom in the event of
the acquisition of the Peer Group Member, the acquisition of sixty-five percent or more
of the gross assets of the Peer Group Member or the merger of the Peer Group Member
with another company(ies) where the Peer Group Member is not the surviving corporation.
	 
	 	(rr)	 	“Performance Goals” means one or more objective performance measures or goals
established by the Board in its sole discretion. Such Performance Goals shall be based
on one or more of the Key Indices. Such Performance Goals may be particular to a
Participant or the division, department, branch, line of business, subsidiary or other
unit in which the Participant works, or may be based on the performance of the
Corporation generally or relative to industry or competitor performance, as determined
by the Board. Such Performance Goals may include or exclude some or all Extraordinary
Items, as determined by the Board when setting the Performance Goals in its sole
discretion.
	 
	 	(ss)	 	“Period of Restriction” means the period during which the vesting of a RSU
Award is limited in some way and the units are subject to substantial risk of
forfeiture.
	 
	 	(tt)	 	“Person” means any governmental authority, individual, partnership, firm,
corporation, limited liability corporation, association, trust, unincorporated
organization or other entity, as well as any syndicate, or group that would be
deemed to be a person under Section 13(d)(3) or Section 14(d)(2) of the Exchange
Act.

5

 

	 	(uu)	 	“Plan” see Section 1.1.
	 
	 	(vv)	 	“Plan Cycle” shall mean a period of three consecutive fiscal years or any other
period of not less than eighteen months and shall be referred to by the fiscal year in
which a particular Plan Cycle commences.
	 
	 	(ww)	 	“Plan Cycle Award” see Section 4.1.
	 
	 	(xx)	 	“Plan Restrictions” means the restrictions set forth in Article 6 or 7 hereof
on any transfer of Common Stock, or any interest therein, which is the subject of a
Restricted Stock Award granted hereunder or the restrictions set forth in Article 8
hereof on receiving the benefit of a RSU Award.
	 
	 	(yy)	 	“Recapitalization” see Section 3.5.
	 
	 	(zz)	 	“Restricted Period” means that period of time, as determined by the Plan,
during which the Common Stock subject to a Restricted Stock Award is not transferable
by reason of Plan Restrictions.
	 
	 	(aaa)	 	“Restricted Stock” means shares of Common Stock the transfer or alienation of
which are restricted by reason of Plan Restrictions.
	 
	 	(bbb)	 	“Restricted Stock Award” see Article 6.
	 
	 	(ccc)	 	“Restricted Stock Award Agreement” means the written agreement between the
Participant and the Corporation relating to the grant of Restricted Stock to the
Participant.
	 
	 	(ddd)	 	“RSU” means a restricted stock unit. A RSU Award granted to a Participant
pursuant to Article 8 herein and which is settled (i) by the delivery of one share of
Common Stock for each RSU, (ii) in cash in an amount equal to the Market Value per
Share as of the end of the Period of Restriction (or such later date as provided by the
RSU Award Agreement) of one share of Common Stock for each RSU, or (iii) in a
combination of cash and Common Stock, all as specified in the applicable RSU Award
Agreement. The Award of an RSU represents the promise of the Corporation to deliver
Common Stock, cash or a combination thereof, as applicable, at the end of the Period of
Restriction (or such later date as provided by the RSU Award Agreement) in accordance
with and subject to the terms and conditions of the applicable RSU Award Agreement, and
is not intended to constitute a transfer of “property” within the meaning of Section 83
of the Internal Revenue Code.
	 
	 	(eee)	 	“RSU Award Agreement” means the written agreement between the Participant and
the Corporation relating to the grant of RSU’s to the Participant.
	 
	 	(fff)	 	“Spread” means the excess of the Market Value per Share of Common Stock on the
date when an Appreciation Right is exercised over the option price provided for in the
related Option Right.

6

 

	 	(ggg)	 	“Subsidiary” shall mean an entity in which the Corporation directly or
indirectly owns 50% or more of the voting equity securities.
	 
	 	(hhh)	 	“Subsidiary Director” means an elected or appointed member of the board of
directors of any Subsidiary, but does not include any person who is an Employee or a
Director.
	 
	 	(iii)	 	“Total Stockholder Return” with respect to a stock shall be calculated in the
following manner:

	 	(i)	 	Add the Average Stock Price at the end of the
Plan Cycle for such stock to the dividends paid on the stock during the
Plan Cycle, and then subtract the Average Stock Price at the beginning
of the Plan Cycle for such stock.
	 
	 	(ii)	 	Divide the resulting sum of (i) above by the
Average Stock Price at the beginning of the Plan Cycle for such stock.
	 
	 	(iii)	 	The result equals Total Stockholder Return
with respect to such stock for the Plan Cycle.

	 	(jjj)	 	“Vesting Event” shall mean the earliest to occur of the following events:

	 	(1)	 	the date any Award is payable hereunder,
	 
	 	(2)	 	the Effective Date of a Change in Control,
	 
	 	(3)	 	the date a Participant is eligible to retire on a Normal Retirement,
	 
	 	(4)	 	the date a Participant incurs a Disability,
	 
	 	(5)	 	the date of a Participant’s death.
	 
	 	Each Participant and Beneficiary with respect to whom a Vesting Event has occurred
shall be 100% vested in his or her benefits or Awards earned or accrued hereunder as
of the date of such Vesting Event, subject to the forfeiture provisions of Article
14.

	 	(kkk)	 	“Voting Stock” shall mean the then outstanding securities of a company
entitled to vote generally in the election of directors.

	2.2	 	GENDER AND NUMBER. Except when otherwise indicated by the context, any masculine terminology
used herein also shall include the feminine, and the definition of any term in the singular
shall include the plural.

7

 

ARTICLE 3

COMMON STOCK AVAILABLE UNDER PLAN

	3.1	 	The shares of Common Stock that may be made the subject of Option Rights, Appreciation
Rights, Restricted Stock Awards, Common Stock Awards or RSU’s pursuant to this Plan, may be
treasury shares or shares of original issue or a combination of the foregoing.
	 
	3.2	 	MAXIMUM NUMBER OF SHARES OF COMMON STOCK SUBJECT TO THE PLAN. Subject to adjustments in
accordance with Section 3.5 of this Plan, the maximum total number of shares of Common Stock
sold or otherwise distributed pursuant to this Plan, shall not exceed 45,000,000. For
purposes of determining the number of shares of Common Stock that may be distributed pursuant
to the Plan, such number shall increase by the number of shares of Common Stock surrendered by
an Optionee or relinquished to the Corporation (a) in connection with the exercise of an
Option Right or (b) in payment of the minimum applicable federal, state, local and foreign tax
withholding liabilities upon exercise of any rights pursuant to an Award. If any Participant
forfeits any shares of Common Stock that are subject to any Award granted hereunder, or any
such Award otherwise terminates with respect to any shares of Common Stock, such shares shall
again be available for distribution in connection with future Awards under the Plan. Upon the
Corporation’s payment in cash of any benefit provided by any Award granted pursuant to this
Plan, any shares that were a subject of such Award shall again be available for issue or
transfer hereunder.
	 
	3.3	 	MAXIMUM NUMBER OF SHARES OF COMMON STOCK THAT MAY BE DISTRIBUTED PURSUANT TO ARTICLES 6, 7, 8
AND 10. Subject to adjustments in accordance with Section 3.5 of this Plan, the maximum total
number of shares of Common Stock sold or otherwise distributed pursuant to Articles 6, 7, 8
and 10 of this Plan, shall not exceed 13,000,000
	 
	3.4	 	MAXIMUM NUMBER OF SHARES OF COMMON STOCK THAT MAY BE ISSUED UPON THE EXERCISE OF INCENTIVE
STOCK OPTIONS. Subject to the adjustments in accordance with Section 3.5 of this Plan, the
maximum number of Common Shares actually issued or transferred by the Corporation upon the
exercise of Incentive Stock Options shall not exceed 40,000,000.
	 
	3.5	 	ADJUSTMENTS. In event of any merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, combination of shares, recapitalization or other change in capital
structure of the Corporation, merger, consolidation, spinoff, reorganization, partial or
complete liquidation, issuance of rights or warrants to purchase securities, or any other
corporate transaction or event having an effect similar to any of the foregoing
(“Recapitalization”), the Board may make such substitution or adjustment in the aggregate
number of shares of Common Stock and, if necessary, in the kind of securities available for
issuance under the Plan, and in the number of shares of Common Stock subject of outstanding
Awards granted under the Plan in the aggregate or to any Participant and in the number of
shares of Common Stock specified in Sections 3.3, 5.3, 6.2, 7.4, 8.2, 9.1 and 10.2 and hereof,
all as may be determined to be appropriate by the Board, acting in its sole discretion,
provided that the number of shares of Common Stock subject to any Award shall always be a
whole number. Notwithstanding the foregoing, effective October 23, 2006, in the event of a
Recapitalization, the Board shall make a proportionate adjustment in the aggregate number of
shares of Common Stock available for issuance under the Plan and in the number of shares of
Common Stock subject to outstanding Awards granted under the Plan in the aggregate or to any
Participant and in the number of shares of Common Stock

8

 

	 	 	specified in Sections 3.3, 3.4, 5.3,
6.2, 7.4, 8.2, 9.1 and 10.2 hereof, all as shall be determined to be equitable by the Board,
acting in its sole discretion, exercised in good faith, to prevent dilution or enlargement
of rights, and, if necessary, the Board may make a proportionate substitution or adjustment
in the kind of securities available for issuance under the Plan, provided that the number of
shares of Common Stock subject to any Award shall always be a whole number. The Board may
also make or provide for such adjustments in the prices per share of Common Stock applicable
under Option Rights and Appreciation Rights as the Board in its sole discretion, exercised
in good faith, may determine is equitably required to prevent dilution or enlargement of the
rights of Optionees that otherwise would result as a result of a Recapitalization.

ARTICLE 4

PLAN CYCLE AWARDS

	4.1	 	PARTICIPATION. No later than the 90th day after the commencement of the Plan Cycle
participation for each Eligible Employee who is an Executive Officer and for each Eligible
Employee who may receive any part of such Participant’s Plan Cycle Award in Common Stock or a
Common Stock equivalent shall be determined by the Board with respect to each Plan Cycle. The
Board may base its approval upon the recommendation of the chief executive officer of the
Corporation. No later than the 90th day after the commencement of the Plan Cycle the chief
executive officer of the Corporation shall determine the participation of each Eligible
Employee who is not an Executive Officer and whose Plan Cycle Award does not include any
Common Stock or Common Stock equivalent (the determinations by the Board and the chief
executive officer shall be collectively referred to as the “Plan Cycle Award”). Each Eligible
Employee approved for participation shall be notified of the selection as soon after approval
as is practicable and shall become a Participant upon acceptance by him of such selection.
	 
	4.2	 	PERFORMANCE CRITERIA. Plan Cycle Awards will be determined by comparing corporate
performance with respect to Key Indices. The performance will be relative to pre-established
goals, that of the Peer Group or any other objective standard established by the Board. No
later than the 90th day following the commencement of the Plan Cycle, the Board
shall establish in writing the Peer Group, if any, the Key Indices, the weighting of the Key
Indices chosen, and the levels of comparative performance (the performance of goals may be
stated as alternative goals) at which the maximum, target and threshold Plan Cycle Award will
be provided under the Plan.
	 
	4.3	 	PLAN CYCLE AWARD POTENTIAL. No later than the 90th day following the commencement
of the Plan Cycle, the Board shall establish in writing the maximum, target and threshold Plan
Cycle Awards for each Participant. Plan Cycle Awards may, for convenience purposes, be
expressed as a percentage of Base Salary or some other criteria. Plan Cycle Awards may be
paid in cash, Option Rights, Restricted Stock, RSU’s, Common
Stock, any other form approved by the Board or any combination thereof as established by the
Board prior the commencement of the Plan Cycle.
	 
	4.4	 	PLAN CYLCE AWARD DETERMINATION. Upon the close of the Plan Cycle the amounts of Plan Cycle
Awards hereunder for such Plan Cycle shall be determined. The

9

 

	 	 	Board has the discretion to
reduce the Plan Cycle Award payable to any Participant notwithstanding attainment of any
performance goal. Notwithstanding the occurrence of a Vesting Event, the Board may reduce or
eliminate a Plan Cycle Award to any or all Participants at any time prior to the payment of
the Plan Cycle Award or an Effective Date of a Change in Control.

	4.5	 	LIMITATION. Notwithstanding any provision of this Plan to the contrary, no Award with
respect to any Covered Executive for any given Plan Cycle shall exceed 1.0% of the
Corporation’s earnings before taxes and Extraordinary Items.
	 
	4.6	 	PARTICIPATION FOR PART OF A PLAN CYCLE. In the event an Employee is an Eligible Employee for
only a portion of a Plan Cycle such Eligible Employee may, in the Board’s discretion, be a
Participant for such portion of the Plan Cycle but his Award will normally be prorated to
reflect the number of months the Employee was an Active Participant compared to the number of
months in the Plan Cycle. A Covered Executive may not be made a Participant after the
beginning of a Plan Cycle.
	 
	4.7	 	CHANGES DURING A PLAN CYCLE. In the event a Participant is promoted or demoted, the Board
may, in its or his discretion, (i) continue such Participant’s maximum, target or threshold
Award as it was prior to such promotion or demotion, (ii) provide the Participant from and
after the promotion or demotion with a higher or lower maximum, target or threshold Award,
(iii) provide for a combination of (i) and (ii), or (iv) after a promotion or demotion remove
the Participant from further participation in the Plan.

	 	(a)	 	In the event of a Plan Cycle for which the Participant’s participation is thus
split between two maximum Awards, the Award for such Plan Cycle will normally be
prorated to reflect the portions of the Plan Cycle spent under each maximum Award.
	 
	 	(b)	 	The Board may not increase a Covered Executive’s maximum, target or threshold
Award during a Plan Cycle.

	4.8	 	FORM AND TIMING OF PAYMENT OF AWARDS. The Participants shall be paid their Plan Cycle Awards
no later than March 15th of the calendar year following the end of the Plan Cycle.
Except as otherwise provided for in Section 4.9, to receive a Plan Cycle Award a Participant
must be an Employee on the date on which the Plan Cycle ends.
	 
	4.9	 	TERMINATION OF EMPLOYMENT DUE TO DEATH, DISABILITY OR NORMAL RETIREMENT. In the event a
Participant’s employment is terminated during a Plan Cycle at or after the occurrence of a
Vesting Event other than a Change of Control, the Participant shall be eligible to receive a
pro-rated Award reflecting his or her partial participation. This pro-ration shall be
determined by multiplying the Award by a fraction the numerator of which is the number of full
months of participation to the date participation ends, and the denominator of which is the
total number of months in the Plan Cycle. The Award thus
determined shall be paid no later than March 15th of the calendar year following
the end of the Plan Cycle. In the event of death, such prorated Award will be paid to the
Participant’s estate.

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ARTICLE 5

OPTION RIGHTS

	5.1	 	AWARDING OF OPTION RIGHTS. The Board may, from time to time and upon such terms and
conditions as it may determine, authorize the granting to Eligible Employees of Option Rights.
Each such grant may utilize any or all of the authorizations, and shall be subject to all of
the limitations, contained in Section 5.3.
	 
	5.2	 	DELEGATION OF AUTHORITY TO THE CHIEF EXECUTIVE OFFICER. The Board, may, from time to time
and upon such terms and conditions as it may determine, specify a number of Option Rights that
the chief executive officer of the Corporation may grant to Eligible Employees who are not
Executive Officers. The terms of such Option Rights, including the exercise price (which may
include a formula by which such price may be determined) and whether the Option Rights shall
have the Additional Option Feature shall be established by the Board and shall be subject to
all of the limitations contained in Section 5.3. Each grant of Option Rights by the chief
executive officer of the Corporation may utilize any or all of the authorizations specified by
the Board, and shall be subject to all of the limitations contained in Section 5.3.
	 
	5.3	 	LIMITATION. All Option Right grants shall be subject to all of the following limitations.

	 	1.	 	Each grant shall specify the number of shares of Common Stock
to which it pertains.
	 
	 	2.	 	Each grant shall specify an Option Price per share and, except
for any stock options assumed by the Board pursuant to Section 5.6 of this
Plan, the Option Price shall not be less than the Market Value per Share as of
the date of grant.
	 
	 	3.	 	Successive grants may be made to the same Participant whether
or not any Option Rights previously granted to such Eligible Employee remain
unexercised. No Participant shall be granted under this Plan, in the
aggregate, more than 1,000,000 Option Rights during any fiscal year or
4,000,000 Option rights over any four-year period, subject to adjustments as
provided in Section 3.5 of this Plan.
	 
	 	4.	 	Option Rights granted under this plan may be (i) options which
are intended to qualify under particular provisions of the Internal Revenue
Code, as in effect from time to time, (ii) options which are not intended so to
qualify, or (iii) combinations of the foregoing. Incentive Stock Options may
only be granted to Participants who on the date of grant are key Employees.
	 
	 	5.	 	The date of grant of each Option Right shall be the later of
the date of its authorization or the date established by the Board or chief executive
officer (as applicable), except that the date of grant of an Additional
Option shall be the date of exercise of the underlying Option Right. No
Option Right shall be exercisable more than 10 years from such date of
grant.

11

 

	 	6.	 	Upon exercise of an Option Right, the option price shall be
payable (i) in cash, (ii) by the transfer to the Corporation by the Optionee of
shares of Common Stock with a value (Market Value per Share times the number of
shares of Common Stock) equal to the total option price, or (iii) by a
combination of such methods of payment.
	 
	 	7.	 	The Board reserves the discretion after the date of grant to
provide for (i) the payment of a cash bonus at the time of exercise; (ii) the
availability of a loan at exercise; or (iii) the right to tender in
satisfaction of the Option Price nonforfeitable, unrestricted shares of Common
Stock, which are already owned by the Optionee and have a value at the time of
exercise that is equal to the Option Price.
	 
	 	8.	 	Each grant of Option Rights shall be evidenced by an Option
Agreement executed on behalf of the Corporation by any officer designated by
the Board for this purpose and delivered to and accepted by the Eligible
Employee and shall contain such terms and provisions, consistent with this
Plan, as the Board may approve. The execution and delivery of the Option
Agreement by the Optionee shall be a condition precedent to the grant of Option
Rights becoming effective. A failure to execute and deliver the Option
Agreement within not less than sixty (60) days after the grant of the Option
Rights may terminate the Option Rights grant upon the determination of the
Board or, for options granted by the chief executive officer pursuant to
Section 5.2 of the Plan, the chief executive officer.

	5.4	 	ADDITIONAL OPTIONS.

	 	(a)	 	The Board may, at or after the date of grant of Option Rights, grant or
authorize the granting of Additional Options. Additional Options may be granted with
respect to any Outstanding Option.
	 
	 	(b)	 	If an Optionee exercises an Outstanding Option that has an Additional Option
Feature by transferring already owned shares of Common Stock and/or when shares of
Common Stock are tendered or relinquished as payment of the amount to be withheld under
applicable federal, state, local and foreign tax laws (at withholding rates not to
exceed the minimum applicable statutory tax withholding rates) in connection with the
exercise of an option, the Optionee shall automatically be granted an Additional
Option. The Additional Option shall be subject to the following provisions:

	 	1.	 	The Additional Option shall cover the number of shares of
Common Stock equal to the sum of (A) the number of shares of Common Stock
delivered as consideration upon the exercise of an Outstanding Option to which
such Additional Option Feature related and (B) the number of shares of Common
Stock tendered or relinquished as payment of the amount to be withheld under
applicable federal, state, local and foreign tax laws (at withholding rates
not to exceed the minimum applicable statutory tax withholding rates) in
connection with the exercise of the option to which such Additional 

12

 

	 	 	 	Option Feature relates;

	 	2.	 	The Additional Option will not have an Additional Option
Feature unless the Board directs otherwise;
	 
	 	3.	 	The Additional Option Price shall be the Market Value per Share
on the date of the exercise of the Option that has the Additional Option
Feature;
	 
	 	4.	 	The Additional Option shall have the same termination date and
other termination provisions as the underlying option that had the Additional
Option Feature;

	5.5	 	GRANTS OF APPRECIATION RIGHTS. The Board may from time to time authorize the granting of
Appreciation Rights in respect of any or all of the Option Rights under any Outstanding Option
(including Options Rights simultaneously granted) to the Optionee thereunder. An Appreciation
Right shall be a right in the Optionee to receive from the Corporation an amount that shall be
determined by the Board and shall be expressed as a percentage of the Spread (not exceeding
100%) at the time of exercise. To the extent such Optionee elects to exercise such
Appreciation Right instead of the related Option Right, the related Option Right shall be
cancelled, and vice versa. Each such grant may utilize any or all of the authorizations, and
shall be subject to all of the limitations, contained in the following provisions:

	 	(a)	 	Any grant may permit the exercise of an Appreciation Right with respect to the
value of shares of Common Stock covered by the related Option Rights.
	 
	 	(b)	 	Any grant may specify that the amount payable on exercise of an Appreciation
Right may be paid by the Corporation in cash, in shares of Common Stock or in any
combination thereof, and may either grant to the Optionee or retain in the Board the
right to elect among those alternatives.
	 
	 	(c)	 	Each grant shall provide that the maximum number of shares of Common Stock
deliverable upon exercise of an Appreciation Right may not exceed the number of shares
of Common Stock purchasable upon exercise of the related Option Rights.
	 
	 	(d)	 	Any grant may specify waiting periods before exercise and permissible exercise
dates or periods. No Appreciation Right shall be exercisable except at a time when the
related Option Right is also exercisable.
	 
	 	(e)	 	Each grant of an Appreciation Right shall be evidenced by an agreement executed
on behalf of the Corporation by any officer designated by the Board for this purpose
and delivered to and accepted by the Optionee, which agreement shall describe such
Appreciation Right, identify the related Option Rights, state that such Appreciation
Right is subject to all the terms and conditions of this Plan, including the right
of the Board to amend, suspend or terminate such Appreciation Right as set forth in
Article 17 of this Plan, and contain such other terms and provisions, consistent
with this Plan, as the Board may approve.

13

 

	5.6	 	ASSUMPTIONS. In the event that a corporation is merged into the Corporation, and the
Corporation is the survivor of such merger, the Board may elect, in its sole discretion, to
assume under this Plan any or all outstanding options granted by such corporation to its
officers and employees under any stock option plan adopted by it prior to such merger. Such
assumptions shall be on such terms and conditions as the Board may determine in its sole
discretion, provided however, that the options as assumed do not provide or contain any terms,
conditions, or rights that an Option Right may not provide for under this Plan.
	 
	5.7	 	REPRICING. The Board shall not authorize the amendment of any outstanding Option Right to
reduce the Option Price except for adjustments as provided in Section 3.5 of this Plan.
Furthermore, no Option Rights shall be cancelled and replaced with awards having a lower
Option Price (except as may result from the issuance of Additional Options pursuant to Section
5.4 of this Plan).

14

 

ARTICLE 6

RESTRICTED STOCK AWARDS

	6.1	 	ELIGIBILITY. The Board shall, from time to time, determine those Eligible Employees who are
to receive Restricted Stock Awards hereunder. Except as set forth in Article 7 hereof,
individuals who are appointed or elected as a Director but who are not otherwise an Employee
shall not be eligible to receive Restricted Stock Awards hereunder.
	 
	6.2	 	LIMITATION. Successive grants of Restricted Stock may be made to the same Participant,
however, in the aggregate no Participant shall have granted to him or to her, or on his or on
her behalf, in one or more Awards, 200,000 shares of Restricted Stock during any fiscal year
or 800,000 shares of Restricted Stock over any four-year period, subject to adjustments as
provided in Section 3.5 of this Plan.
	 
	6.3	 	TERMINATION. If a Participant ceases to be an Eligible Employee during a Restricted Period,
the Award Agreement shall provide the extent to which the Plan Restrictions on the Restricted
Stock, or any portion thereof, subject of such Award Agreement shall lapse or whether all or
any portion of such Restricted Stock shall be forfeited. Restricted Stock that is forfeited
shall be returned to the Corporation from the escrow established under Section 6.13, and the
Participant shall have no further interest in such stock.
	 
	6.4	 	GENERAL. The Board may, from time to time, designate those Eligible Employees to be granted
Restricted Stock Awards under the Plan, the number of shares of Restricted Stock to be granted
in an Restricted Stock Award to an Eligible Employee, the terms upon which the Plan
Restrictions on any Restricted Stock shall lapse and the Restricted Stock will become freely
transferable, and such other conditions as the Board may deem appropriate. Not all grants of
Restricted Stock Awards need to be on the same terms and conditions even though granted at the
same time, and the terms of Restricted Stock Award Agreements may vary from time to time and
from Participant to Participant; provided, however, all Restricted Stock Awards shall be
subject of the provisions to Section 6.8 hereof.
	 
	6.5	 	LONG TERM EQUITY INCENTIVE AWARD COMMITTEE. If the Board establishes a Long Term Equity
Incentive Award Committee of one or more directors for the purpose of granting Restricted
Stock Awards to Eligible Employees (the “Long Term Equity Incentive Award Committee”), the
Board may from time to time authorize the Long Term Equity Incentive Award Committee to grant
to Eligible Employees who are not Executive Officers up to a specified number of shares of
Restricted Stock with terms upon which the Plan Restrictions on any such Restricted Stock
shall lapse and such other conditions as the Long Term Equity Incentive Award Committee may
deem appropriate from time to time. Each Grant of Restricted Stock by the Long Term Equity
Incentive Award Committee may utilize any or all of the remaining shares of Restricted Stock
authorized by the Board. Not all grants of Restricted Stock Awards need to be on the same
terms and conditions even though granted at the same time, and the terms of Restricted Stock
Award Agreements may vary from time to time and from Participant to Participant; provided,
however, all Restricted Stock Awards shall be subject to the provisions of Section 6.8 hereof.

15

 

	6.6	 	LIMITATION. Except as expressly provided by Article 7 with respect to Restricted Stock
Awards to Directors, the Plan Restrictions established by Section 6.8 hereof on any Award may
be of any length of time and/or may have the Plan Restrictions shortened or established by
Performance Goals as determined by the Board.
	 
	6.7	 	ADDITIONAL RESTRICTIONS. Restricted Stock Awards shall be expressly subject to the terms and
conditions of this Article 6, but the Board or the Long Term Equity Incentive Award Committee
(whichever entity is making the award) may establish additional restrictions, including
Performance Goals, on the transfer of the Common Stock subject of any Restricted Stock Award.
	 
	6.8	 	PLAN RESTRICTIONS. During the Restricted Period for any Restricted Stock Award, a
Participant may not, voluntarily or involuntarily, sell, assign, encumber, pledge or otherwise
transfer any shares of Restricted Stock subject of the Restricted Stock Award, or any interest
therein, otherwise than by will or the law of descent and distribution. Any attempted sale,
assignment, encumbrance, pledge or other transfer of the Restricted Stock or any interest
therein, in derogation of these restrictions shall result in a forfeiture to the Corporation
of all Restricted Stock subject to such attempted transfer.
	 
	6.9	 	STOCKHOLDER RIGHTS. All Restricted Stock shall be registered in the stockholder records of
the Corporation in the name of the Participant to whom the Restricted Stock Award was made.
Except for Plan Restrictions, and except for any additional restrictions contained in the
Restricted Stock Award Agreement that may include an assignment or surrender of rights to
dividends payable from time to time on the Restricted Stock (cash or property), the
Participant shall have all rights of a holder of Common Stock.
	 
	6.10	 	AWARD AGREEMENT. Each Participant granted a Restricted Stock Award shall enter into an
Restricted Stock Award Agreement with the Corporation in a form specified by the Board or the
Long Term Equity Incentive Award Committee, agreeing to the terms and conditions of the
Restricted Stock Award and such other matters as the Board shall in its sole discretion
determine, including any additional conditions of forfeiture. The execution and delivery of
the Restricted Stock Award Agreement and the stock power referred to in Section 6.11 below by
the grantee of the Restricted Stock Award shall be a condition precedent to the registration
in the name of the grantee of the Restricted Stock subject to the Restricted Stock Award. A
failure to execute and deliver the Restricted Stock Award Agreement and the stock power within
not less than sixty (60) days after the grant of a Restricted Stock Award may terminate the
Restricted Stock Award upon the determination of the Board. The Restricted Stock Award
Agreement may, but need not, allow the Plan Restrictions to lapse serially or in total over
any period of time as selected by the Board or Long Term Equity Incentive Award Committee. If
any Participant forfeits any shares of Restricted Stock that are subject to any Restricted
Stock Award, or any such award otherwise terminates with respect to any shares of Restricted
Stock thereunder without the Plan Restrictions being terminated, the Participant shall have no
further interest in such Restricted Stock.
	 
	6.11	 	LEGEND. Shares issued in respect of Restricted Stock awarded under the Plan shall be
registered in the name of the Participant.

	 	(a)	 	If the shares are certificated shares they shall be deposited with the
Corporation pursuant to Section 6.13 hereof together with a stock power endorsed in
blank and 

16

 

	 	 	 	signed by the Participant and shall bear the following (or a similar) legend:
“The transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) contained in the Plan
and in a Restricted Stock Agreement entered into between the registered owner hereof
and National City Corporation.”

	 	(b)	 	If the shares are DRS shares the statement of holdings shall indicate that the
transferability of the shares is restricted and the Corporation’s transfer agent shall
implement procedures to assure that the shares cannot be transferred in contradictions
to the terms of the Plan or the award agreement and a stock power endorsed in blank and
signed by the Participant or such other stock transfer form acceptable to the
Corporation shall be held by the Corporation.

	6.12	 	LAPSE OF RESTRICTIONS. When the Plan Restrictions imposed by this Article 6 expire or have
otherwise been satisfied with respect to one or more shares of Restricted Stock, subject to
Section 13.2 hereof, the Corporation shall deliver to the Participant (or his legal
representative, beneficiary or heir) within sixty (60) days thereafter Common Stock in either
(i) certificated form without the legend referred to in Section 6.11(a) above or as DRS shares
without the restrictions referred to in Section 6.11(b) above and free of Plan Restrictions.
The number of shares of Common Stock to be released shall be the same number as to which the
Plan Restrictions have lapsed.
	 
	6.13	 	ESCROW. (a) Restricted Stock issued as certificated shares that are the subject of a
Restricted Stock Award shall be physically held by the Corporation, or its nominee, during the
Restricted Period. Upon the termination of the Restricted Period, the Corporation shall cause
the certificate representing the shares of Common Stock subject of a Restricted Stock Award to
be reissued in either (i) certificated form without the legend set forth in Section 6.11(a)
above or (ii) as DRS shares without any reference to the restrictions on transferability set
forth in Section 6.11(b) above on the statement of holdings.

	 	(b)	 	Upon the termination of the Restricted Period, the Corporation shall cause the
DRS shares representing the shares of Common Stock subject of a Restricted Stock Award
to be reissued in either (i) certificated form without the legend set forth in Section
6.11(a) above or (ii) as DRS shares without any reference to the restrictions on
transferability set forth in Section 6.11(b) above on the statement of holdings.
	 
	 	(c)	 	If any shares of Restricted Stock are to be forfeited, such shares shall be
transferred to the Corporation.

ARTICLE 7

DIRECTOR RESTRICTED STOCK AWARDS

	7.1	 	DIRECTOR ELIGIBILITY. Annually, during each Director Year, each Director who is not then an
Employee shall be entitled to a Restricted Stock Award as provided by this Article 7, provided
that no Director shall be entitled to any Restricted Stock Award if (i) there are not a
sufficient number of shares of Common Stock hereunder to make a full Restricted Stock
Award to Directors in such Director Year, (ii) if the Plan has been terminated or (iii) if
the Board determines to terminate Restricted Stock Awards to Directors.

17

 

	7.2	 	AMOUNT OF AWARD. Unless otherwise determined by the full Board from time to time, (1) in the
Director Year in which the Director is first elected or appointed as a Director, the Director
shall be granted a Restricted Stock Award of two thousand (2,000) shares of Restricted Stock
and (2) in each following Director Year when the individual is re-elected or re-appointed a
Director of the Corporation, such Director shall be granted a Restricted Stock Award of twelve
hundred (1,200) shares of Restricted Stock.
	 
	7.3	 	DUPLICATION. There shall be no duplication of the Director Restricted Stock Award granted
pursuant to this Article 7 with any award granted pursuant to the National City Corporation
Amended and Second Restated 1991 Restricted Stock Plan, the National City Corporation Amended
and Restated 1997 Restricted Stock Plan and/or the National City corporation 2002 Restricted
Stock Plan, as such plans may be amended from time to time.
	 
	7.4	 	GRANT OF AWARDS. Restricted Stock Awards to Directors shall be granted in accordance with
Sections 7.1 and 7.2 hereof, and the date of any Restricted Stock Award shall be the actual
date of election or appointment, as the case may be, of the grantee as a Director. No
Restricted Stock Award Agreement with a Director shall grant to that Director any benefits not
expressly provided by this Article 7, nor shall it limit the Director’s rights to receive
dividends on or to vote the Restricted Stock subject of that Restricted Stock Award Agreement.
The number of shares of Restricted Stock awarded in any future grants under this Section 7.4
shall be adjusted by the Board as equitably required to prevent dilution or enlargement of the
award to Directors that otherwise would result from any Recapitalization.
	 
	7.5	 	TERM OF RESTRICTIONS.

	 	(a)	 	The Restricted Period, with respect to the Plan Restrictions on any Restricted
Stock Award to a Director under this Article 7, shall terminate, and the Plan
Restrictions on all Restricted Stock shall fully expire, on the earlier of (i) such
Director’s death, (ii) such Director’s Disability, (iii) a Change in Control or (iv) a
date nine months after the date of the award.
	 
	 	(b)	 	If a Director shall resign, or otherwise no longer be a member of the Board for
reasons other than those set forth in Section 7.5(a) of this Plan, then the Director’s
interest in all shares of Restricted Stock previously awarded to him under this Article
7 shall be terminated and such Restricted Stock shall be forfeited and returned to the
Corporation.

ARTICLE 8

AWARDS OF RSU’S

	8.1	 	ELIGIBILITY. The Board shall, from time to time, determine those Eligible Employees who are
to receive RSU Awards. Individuals who are appointed or elected as a Director but who are not
otherwise an Employee shall not be eligible to receive RSU Awards.
	 
	8.2	 	LIMITATION. Successive grants of RSU’s may be made to the same Participant; however,
in the aggregate no Participant shall have granted to him or to her, or on his or on her
behalf, in one or more Awards, more than 200,000 RSU’s during any fiscal year or 800,000
RSU’s over any four-year period, subject to adjustments as provided in Section 3.5 of this
Plan.

18

 

	8.3	 	TERMINATION. If a Participant ceases to be an Eligible Employee during the Period of
Restriction, the RSU Award Agreement shall provide the extent to which the Participant shall
receive any benefit pursuant to such RSU Award or whether all or any portion of such RSU Award
shall be forfeited. The Participant shall have no further interest in any RSU Award benefit
that is forfeited.
	 
	8.4	 	GENERAL. The Board may, from time to time, designate those Eligible Employees to be granted
RSU Awards under the Plan, the number of RSU’s to be granted in an RSU Award to an Eligible
Employee, the terms of the RSU’s, and such other conditions as the Board may deem appropriate.
Not all grants of RSU Awards need to be on the same terms and conditions even though granted
at the same time, and the terms of RSU Award Agreements may vary from time to time and from
Participant to Participant, depending upon the purpose of the RSU Award; provided, however,
all RSU Awards shall be subject of the provisions of Section 8.8 hereof.
	 
	8.5	 	LONG TERM EQUITY INCENTIVE AWARD COMMITTEE. If the Board establishes a Long Term Equity
Incentive Award Committee, the Board may from time to time authorize the Long Term Equity
Incentive Award Committee to grant to Eligible Employees who are not Executive Officers up to
a specified number of RSU’s with terms as the Long Term Equity Incentive Award Committee may
deem appropriate from time to time. Each grant of RSU’s by the Long Term Equity Incentive
Award Committee may utilize any or all of the remaining RSU’s authorized by the Board. Not
all grants of RSU Awards need to be on the same terms and conditions even though granted at
the same time, and the terms of RSU Award Agreements may vary from time to time and from
Participant to Participant; provided, however, all RSU Awards shall be subject of the
provisions of Section 8.8 hereof.
	 
	8.6	 	LIMITATION. The Period of Restriction on any RSU Award may be of any length of time and/or
may have the Period of Restriction shortened or established by Performance Goals as determined
by the Board.
	 
	8.7	 	ADDITIONAL RESTRICTIONS. RSU Awards shall be expressly subject to the terms and conditions
of this Article 8, but the Board or the Long Term Equity Incentive Award Committee (whichever
entity is making the award) may establish additional restrictions, including Performance
Goals, on the settlement of any RSU Award.
	 
	8.8	 	PLAN RESTRICTIONS. During the Period of Restriction for any RSU Award, a Participant may
not, voluntarily or involuntarily, sell, assign, encumber, pledge or otherwise transfer any
interest the Participant has in the RSU Award otherwise than by will or the law of descent and
distribution. Any attempted sale, assignment, encumbrance, pledge or other transfer of the
RSU interest in derogation of these restrictions shall result in a forfeiture to the
Corporation of the RSU Award(s) subject to such attempted transfer.
	 
	8.9	 	AWARD AGREEMENT. Each Participant granted an RSU Award shall enter into an RSU Award
Agreement with the Corporation in a form specified by the Board or the Long Term Equity
Incentive Award Committee, agreeing to the terms and conditions of the RSU Award (including
whether the Participant will be entitled to dividend equivalents) and such other

19

 

	 	 	matters as the Board shall in its sole discretion determine, including any additional conditions of
forfeiture. The execution and delivery of the RSU Award Agreement by the grantee of the RSU
Award shall be a condition precedent to the Participant having any interest in the RSU Award.
A failure to execute and deliver the RSU Award Agreement within not less than sixty (60) days
after the grant of a RSU Award may terminate the RSU Award upon the determination of the
Board. The RSU Award Agreement may, but need not, allow the Period of Restriction to lapse
serially or in total over any period of time as selected by the Board or Long Term Equity
Incentive Award Committee. If any Participant forfeits any RSU Award, or any such award
otherwise terminates with respect to any RSU’s without the Plan Restrictions being terminated,
the Participant shall have no further interest in such RSU’s.

ARTICLE 9

APPRECIATION RIGHTS

	9.1	 	GRANTS OF APPRECIATION RIGHTS. The Board may from time to time authorize the granting of
stand-alone Appreciation Rights to Eligible Employees. Each such grant may utilize any or all
of the authorizations. An Appreciation Right shall be a right of the Participant to receive
from the Corporation an amount that shall be determined by the Board and shall be expressed as
a percentage of the difference (not exceeding 100%) resulting from subtracting the Market
Value per Share on the date the Appreciation Right was granted (or may use a formula by which
such price shall be determined so long as such formula will not result in a price that is
below the Market Value per Share) (the “Appreciation Award Price”) from the Market Value per
Share on the date of the Participant’s exercise of such Appreciation Right. Each Appreciation
Right Award shall be subject to all of the limitations, contained in the following provisions:

	 	(a)	 	Any Appreciation Right Award may specify that the amount payable on exercise of
an Appreciation Right may be paid by the Corporation in cash, in shares of Common Stock
or in any combination thereof, and may either grant to the Participant or retain in the
Board the right to elect among those alternatives.
	 
	 	(b)	 	Each grant shall provide a maximum number of shares of Common Stock, if any,
deliverable upon exercise of an Appreciation Right.
	 
	 	(c)	 	Successive grants of Appreciation Rights may be made to the same Participant;
however, in the aggregate no Participant shall have granted to him or to her, or on his
or on her behalf, in one or more Awards, 1,000,000 Appreciation Rights during any
fiscal year or 4,000,000 Appreciation Rights over any four-year period, subject to
adjustments as provided in Section 3.5 of this Plan.
	 
	 	(d)	 	Any grant may specify waiting periods before exercise and permissible exercise
dates or periods.
	 
	 	(e)	 	The date of grant of each Appreciation Right shall be the later of the date of
its authorization or the date established by the Board or chief executive officer of
the Corporation (as applicable). No Appreciation Right shall be exercisable more than

20

 

	 	 	 	10 years from such date of grant.

	 	(f)	 	Each grant of an Appreciation Right shall be evidenced by an agreement executed
on behalf of the Corporation by any officer designated by the Board for this purpose
and delivered to and accepted by the Participant, which agreement shall describe such
Appreciation Right, state that such Appreciation Right is subject to all the terms and
conditions of this Plan, including the right of the Board to amend, suspend or
terminate such Appreciation Right as set forth in Article 17 of this Plan, and contain
such other terms and provisions, consistent with this Plan, as the Board may approve
(the “Appreciation Right Award Agreement”). A failure to execute and deliver the
Appreciation Right Award Agreement within not less than sixty (60) days after the grant
of the Appreciation Rights may terminate the Appreciation Rights grant upon the
determination of the Board or, for Appreciation Rights granted by the chief executive
officer pursuant to Section 9.1 of the Plan, the chief executive officer.

	9.2	 	DELEGATION OF AUTHORITY TO THE LONG TERM EQUITY INCENTIVE AWARD COMMITTEE. If the Board
establishes a Long Term Equity Incentive Award Committee, the Board may from time to time
authorize the Long Term Equity Incentive Award Committee to grant to Eligible Employees who
are not Executive Officers up to a specified number of Appreciation Rights with terms as the
Long Term Equity Incentive Award Committee may deem appropriate from time to time. The terms
of such Appreciation Rights shall be subject to all of the limitations contained in Section
9.1. Each grant of Appreciation Rights by the Long Term Equity Incentive Award Committee may
utilize any or all of the authorizations specified by the Board.
	 
	9.3	 	TERMINATION. If a Participant ceases to be an Eligible Employee without having exercised
such Participant’s Appreciation Right(s) the Appreciation Right Award Agreement shall provide
the extent to which all or any portion of such Appreciation Rights shall be forfeited.
	 
	9.4	 	REPRICING. The Board shall not authorize the amendment of any outstanding Appreciation Right
to reduce the Appreciation Award Price except for adjustments as provided in Section 3.5 of
this Plan. Furthermore, no Appreciation Rights shall be cancelled and replaced with awards
having a lower Appreciation Award Price.

ARTICLE 10

AWARDS OF COMMON STOCK

	10.1	 	ELIGIBILITY. The Board may, from time to time, determine those Eligible Employees who are to
receive Common Stock Awards hereunder. Subject to applicable law, the Common Stock Awards may
be made without the Corporation’s receipt of any cash consideration. An individual who is
appointed or elected as a Director but who is not otherwise an Employee shall not be eligible to receive Common Stock Awards hereunder
	 
	10.2	 	LIMITATION. Successive grants of Common Stock may be made to the same Participant, however,
in the aggregate no Participant shall have granted to him or to her, or on his or on her
behalf, in one or more Awards, 20,000 shares of Common Stock during any fiscal year or 80,000 shares of Common Stock over any four-year period, subject to adjustments as provided in
Article 3 of this Plan.

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ARTICLE 11

RIGHTS OF PARTICIPANTS

	11.1	 	EMPLOYMENT. Nothing in this Plan shall interfere with or limit in any way the right of the
Corporation to terminate a Participant’s employment at any time, nor confer upon any
Participant any right to continue in the employ of the Corporation.
	 
	11.2	 	NO RIGHT TO PARTICIPATE. No Participant or Employee shall have a right at any time to be
selected for current or future participation in any portion of all portions of this Plan. An
Employee or Participant selected to participate in one or more portions of this Plan shall not
have any rights to participate in or receive any benefit under any other portion of the Plan.
	 
	11.3	 	RESTRICTIONS ON TRANSFERS, ASSIGNMENTS AND EXERCISE OF RIGHTS. Except as otherwise provided
for by the Board, the interest of a Participant or his or her beneficiary under this Plan may
not be sold, transferred, assigned, or encumbered in any manner other than by will or the laws
of descent and distribution, either voluntarily or involuntarily, and any attempt to so
anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be
null and void; neither shall the benefits hereunder be liable for or subject to the debts,
contracts, liabilities, engagements, or torts of any person to whom such benefits or funds are
payable, nor shall they be subject to garnishment, attachment, or other legal or equitable
process, nor shall they be an asset in bankruptcy. Unless the Board directs otherwise, Option
Rights shall be exercisable during the Optionee’s lifetime only by the Optionee or by the
Optionee’s guardian or legal representative.

ARTICLE 12

ADMINISTRATION

	12.1	 	ADMINISTRATION. This Plan shall be administered by the Board, which may from time to time
delegate all or any part of its authority under this Plan to a committee or committees of the
Board (the “Committee”). To the extent of such delegation, references herein to the “Board”
shall include the Committee(s). The Plan shall be administered by the Board in accordance
with any administrative guidelines and any rules that may be established from time to time by
the Board. The procedures, standards and provisions of this Plan for determining eligibility
for and amounts of Awards in themselves confer no rights, duties or privileges upon
Participants nor place obligations upon either the Board or the Corporation. Accordingly, the
Board may, in making such determinations hereunder, deviate from such procedures and standards
in whatever manner that it, in its judgment, deems appropriate.
	 
	12.2	 	INTERPRETATION AND CONSTRUCTION. The Board shall have full power and authority to interpret,
construe and administer the Plan and its interpretations and construction hereof, and actions
hereunder, including the timing, form, amount or recipient of any payment to be made
hereunder, and its decisions shall be binding and conclusive on all persons for all purposes.
	 
	12.3	 	ASSISTANTS. The Board may name assistants who may be, but need not be, members of the Board.
Such assistants shall serve at the pleasure of the Board, and shall perform such

22

 

	 	 	     functions as are provided for herein and such other functions as may be assigned by the
Board.

	12.4	 	LIABILITY. No member of the Board or any assistant shall be liable to any person for any
action taken or omitted in connection with the interpretation and administration of this Plan
unless attributable to his or her own willful misconduct or lack of good faith.

ARTICLE 13

REQUIREMENTS OF LAW

	13.1	 	LAWS GOVERNING. This Plan shall be construed in accordance with and governed by the internal
substantive laws of the State of Ohio.
	 
	13.2	 	WITHHOLDING TAXES. The Corporation shall have the right to deduct from all payments under
this Plan any foreign, federal, state or local taxes required by the law to be withheld with
respect to such payments. To the extent that the amounts available to the Corporation are
insufficient to satisfy the federal, state local and foreign minimum tax withholding
requirements in connection with any payment to be made or benefit to be realized by a
Participant under this Plan, the Participant shall make arrangements satisfactory to the
Corporation for payment of the balance of such taxes required to be withheld prior to
receiving such payment or benefit. At the discretion of the Board, such arrangements may
include relinquishment of a portion of such benefit. In no event, however, shall the
Corporation accept Common Stock for payment of taxes in excess of the minimum required tax
withholding rates.
	 
	13.3	 	PLAN BINDING ON CORPORATION, EMPLOYEES AND THEIR SUCCESSORS. This Plan shall be binding upon
and inure to the benefit of the Corporation, its successors and assigns and each Participant
and his or her beneficiaries, heirs, executors, administrators and legal representatives.

ARTICLE 14

FORFEITURES

Subject to Article 15 and without limiting the generality of the Plan or any Award Agreement with
respect to the circumstances under which any award may be subject to forfeiture, in the event the
Board finds

	 	(a)	 	that an Employee or former Employee who has an interest under this Plan has
been discharged by his or her Employer in the reasonable belief (and such reasonable
belief is the reason or one of the reasons for such discharge) that the Employee or
former Employee did engage in fraud against the Employer or anyone else, or
	 
	 	(b)	 	that an Employee or former Employee who has an interest under this Plan has
been convicted of a crime as a result of which it becomes illegal for his Employer to
employ him or her,

23

 

then any Award, benefits or amounts provided for pursuant to this Plan for the benefit of such
Employee or former Employee or his or her beneficiaries shall be forfeited and no longer payable to
such Employee or former Employee or to any person claiming by or through such Employee or former
Employee.

ARTICLE 15

CHANGE IN CONTROL

	15.1	 	TREATMENT OF AWARDS.

	 	(a)	 	In the event of a Change in Control, the Corporation shall pay to each Active
Participant in a Plan Cycle a Plan Cycle Award equal to the amount hereinafter
determined. Such Plan Cycle Awards will be payable in cash (subject only to a valid
preexisting election by the Participant to have a portion of his Plan Cycle Award
deferred under the 2004 Deferred Comp Plan) to the Participant within five business
days after the Implementation Date of such Change in Control and shall be payment in
full to each such Participant for such Plan Cycle, each of which shall be deemed
terminated by operation of this Article 15. No further Plan Cycles shall commence
thereafter under this Plan.
	 
	 	 	 	The cash payment shall be in lieu of any Option Rights, Restricted Stock, RSU’s or
Common Stock set forth in the Plan Cycle Award.
	 
	 	(b)	 	The amount of the payment to be made as a consequence of a Change in Control
shall, with respect to each Plan Cycle, be equal to the target award level (without
regard to stockholder return during such abbreviated Plan Cycle) for the Participant
for such Plan Cycle multiplied by a fraction the numerator of which is the number of
full months completed from the commencement of the Plan Cycle to the Implementation
Date of the Change in Control, and the denominator of which is the number of months in
such Plan Cycle.

	15.2	 	TREATMENT OF STOCK OPTION AWARDS. The Option Agreement(s) shall set forth the impact, if
any, of a Change in Control on the terms of the Option Right Award.
	 
	15.3	 	TREATMENT OF RESTRICTED STOCK AWARDS. In the event of a Change in Control, all Plan
Restrictions shall lapse and be of no further force or effect and the Corporation shall cause
all outstanding Restricted Stock to be exchanged for Common Stock free of the legend set forth
in Section 6.11.
	 
	15.4	 	TREATMENT OF RSU, APPRECIATION RIGHT AND OTHER AWARDS. The RSU Award Agreement, the
Appreciation Right Award Agreement and any other Award agreement not addressed in Sections
15.1 through 15.3 (“Award Agreement”) shall set forth the impact, if any, of a Change in
Control on the terms of such Award Agreement.
	 
	15.5	 	DEFINITION OF CHANGE IN CONTROL. Change in Control shall mean the occurrence of any of the following events:

24

 

	 	(a)	 	the Corporation is merged, consolidated or reorganized into or with a Person,
and as a result of such merger, consolidation or reorganization less than sixty-five
percent of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such transaction are held in the aggregate by
the holders of Voting Stock of the Corporation immediately prior to such transaction;
	 
	 	(b)	 	the Corporation sells or otherwise transfers all or substantially all of its
assets to another Person, and as a result of such sale or transfer less than sixty-five
percent of the combined voting power of the then-outstanding Voting Stock of such
corporation or person immediately after such sale or transfer is held in the aggregate
by the holders of Voting Stock of the Corporation immediately prior to such sale or
transfer;
	 
	 	(c)	 	any individual, entity or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act) becomes the beneficial owner (as the term
“beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation
promulgated under the Exchange Act) of securities representing more than fifteen
percent (15%) of the Voting Stock of the Corporation provided, however,
that:

	 	(1)	 	for purposes of this Section 15.5(c), the
following acquisitions shall not constitute a Change in Control: (A)
any acquisition of the Voting Stock of the Corporation directly from
the Corporation that is approved by a majority of the Incumbent
Directors (defined below), (B) any acquisition of the Voting Stock of
the Corporation by the Corporation, and (C) any acquisition of the
Voting Stock of the Corporation by a trustee or other fiduciary holding
securities under any employee benefit plan (or related trust) sponsored
or maintained by the Corporation or any Subsidiary of the Corporation;
	 
	 	(2)	 	if any Person is or becomes the beneficial
owner of 15% or more of the combined voting power of the
then-outstanding Voting Stock of the Corporation as a result of a
transaction described in clause (A) of Section 15.5(c)(1) above and
such Person thereafter becomes the beneficial owner of any additional
shares of the Voting Stock of the Corporation representing 1% or more
of the then-outstanding the Voting Stock of the Corporation, other than
in an acquisition directly from the Corporation that is approved by a
majority of the Incumbent Directors or other than as a result of a
stock dividend, stock split or similar transaction effected by the
Corporation in which all holders of the Voting Stock of the Corporation
are treated equally, such subsequent acquisition shall be treated as a Change in Control unless exempted by Section
11.3(c)(4) below;

25

 

	 	(3)	 	a Change in Control will not be deemed to have
occurred if a Person is or becomes the beneficial owner of 15% or more
of the Voting Stock of the Corporation as a result of a reduction in
the number of shares of the Voting Stock of the Corporation outstanding
pursuant to a transaction or series of transactions that is approved by
a majority of the Incumbent Directors unless and until such Person
thereafter becomes the beneficial owner of any additional shares of the
Voting Stock of the Corporation representing 1% or more of the
then-outstanding Voting Stock of the Corporation, other than as a
result of a stock dividend, stock split or similar transaction effected
by the Corporation in which all holders of the Voting Stock of the
Corporation are treated equally; and
	 
	 	(4)	 	if within 45 days of first learning a Person
has acquired or is to acquire beneficial ownership of 15% or more of
the Voting Stock of the Corporation the Board by majority vote of the
Incumbent Directors (i) determines that a Person’s acquisition of
beneficial ownership of 15% or more of the Voting Stock of the
Corporation does not constitute a Change in Control and (ii)
establishes a limit (such limit to be less than 50% of the Voting Stock
of the Corporation) as to the maximum number of shares such Person may
acquire before a Change in Control shall be deemed to have occurred,
then no Change in Control shall have occurred as a result of such
Person’s applicable acquisition(s);

	 	(d)	 	if, during any period of two consecutive years, individuals who at the
beginning of any such period constitute the Directors of the Corporation (“Incumbent
Directors”) cease for any reason to constitute at least a majority thereof; provided,
however, that for purposes of this clause (d) each Director who is first elected, or
first nominated for election by the Corporation’s stockholders, by a vote of at least
two-thirds of the Directors of the Corporation (or a committee thereof) then still in
office who were Directors of the Corporation at the beginning of any such period will
be deemed to have been a Director of the Corporation at the beginning of such period;
or
	 
	 	(e)	 	approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.

Notwithstanding the foregoing provisions of Section 15.5(a), 15.5(b) or 15.5(d), in the case
where the individuals who constitute the Incumbent Directors at the time a specific
transaction described in Section 15.5(a) or 15.5(b) is first presented or disclosed to the
Board, will, by the terms of the definitive agreement for that transaction, constitute at
least fifty percent (50%) of the resulting corporation’s or Person’s directors immediately
following consummation of such transaction, provided that such resulting corporation’s or
Person’s directors are not subject to removal following the consummation of the transaction
as a result of the terms and conditions of the transaction, then, prior to the occurrence of
any event that would otherwise constitute a Change in Control under

26

 

Section 15.5(a), 15.5(b) or 15.5(d), the Board may determine by majority vote of the Incumbent Directors that the
specific transaction does not constitute a Change in Control under Sections 15.5(a), 15.5(b)
and/or 15.5(d).

	15.6	 	EFFECTIVE DATE OF CHANGE IN CONTROL. Notwithstanding the foregoing, in the event a Change in
Control ultimately results from discussions or negotiations involving the Corporation or any
of its officers or directors, the “Effective Date” of such Change in Control shall be the date
uninterrupted discussions or negotiations commenced; otherwise, such Effective Date or Change
in Control shall be the Implementation Date of such Change in Control.
	 
	15.7	 	IMPLEMENTATION DATE OF CHANGE IN CONTROL. The “Implementation Date” shall be the earliest to
occur of the events specified in Section 15.5.
	 
	15.8	 	EFFECT OF CHANGE IN CONTROL. In addition to other vesting under the Plan, the opportunity of
a Participant to participate to the end of all current Plan Cycles is vested in such
Participant in the event of a Change in Control, as of the Effective Date of such Change in
Control.

ARTICLE 16

MISCELLANEOUS

	16.1	 	LIQUIDATION. In the event of the liquidation of the Corporation, the Board may make any
provisions for holding, handling and distributing the amounts standing to the credit of the
Participants or beneficiaries hereunder, which in the discretion of the Board are appropriate
and equitable under all circumstances and which are consistent with the spirit and purposes of
these provisions.
	 
	16.2	 	FRACTIONAL SHARES. The Corporation shall not be required to issue any fractional share of
Common Stock pursuant to this Plan. The Board may provide for the elimination of fractions or
for the settlement of fraction in cash.
	 
	16.3	 	EXPENSES. All expenses and costs in connection with the operation of the Plan shall be borne
by the Corporation.

ARTICLE 17

AMENDMENT AND DISCONTINUANCE

	17.1	 	The Corporation reserves the right, by action of the Board, to amend the Plan from time to
time, or to discontinue it if such a change is deemed necessary or desirable except that
stockholder approval shall be required for any amendment or modification of this Plan that, in the
opinion of the Corporation’s counsel, would be required by (1) Section 162(m) of the Internal
Revenue Code or any regulations promulgated thereunder or (2) by the rule of the New York Stock
Exchange (or, if the Common Stock shall be traded in another market any applicable rules of such
other market). No such amendment shall increase the maximum numbers of shares of Common Stock
specified in Sections 3.2, 3.3, 3.4, 5.3, 6.2, 7.4, 8.2, 9.1 and 10.2 of this Plan (except that

27

 

adjustments authorized by Section 3.5 of this Plan shall not be limited by this provision).
However, if the Committee should amend or discontinue this Plan, the Corporation shall remain
obligated under the Plan with respect to (1) Total Awards made final (and thus payable) by decision
by the Committee prior to the date of such amendment or discontinuance, and (2) Awards and rights
of any Participant or beneficiary with respect to whom a Vesting Event has occurred. If the Plan
is terminated, Awards previously made shall nevertheless continue in accordance with the provisions
of the Award as in effect prior to the Plan’s termination.

	17.2	 	OMISSION. The Board may for any period of time refrain from designating any Participants or
may refrain from making any Awards, but such action shall not be deemed a termination of the
Plan.

Executed as of this ___day of July, 2007 at Cleveland, Ohio, but effective as of January 1, 2005.

	 	 	 	 	 
	 	NATIONAL CITY CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

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