Document:

EX-10.32

Exhibit 10.32

McDONALD FINANCIAL GROUP

DEFERRAL PLAN

ARTICLE I

     The McDonald Financial Group Deferral Plan (“Plan”) as originally established effective
January 1, 2003, and thereafter amended effective January 1, 2005, is hereby amended in its
entirety to be effective December 31, 2008. The Plan as amended and restated, is structured to
maintain on a bookkeeping basis, those not vested discretionary bonus awards that have been granted
to Plan Participants under the various KeyCorp-sponsored Incentive Compensation Plan(s) which
mandate that such discretionary bonus awards be subject to a three year vesting period prior to
distribution to the Plan Participant. The Plan, provides a bookkeeping structure for such
discretionary bonus awards until such awards become vested and distributed to Plan Participants.
As structured, the Plan also provides Plan Participants with a tax-favorable savings vehicle, while
permitting KeyCorp to retain such Participants’ continued employment. It is the intention of
KeyCorp, and it is the understanding of those Participants covered under the Plan, that the Plan is
unfunded for tax purposes. It is also the understanding of Participants covered under the Plan
that the Plan will be administered in accordance with the requirements of Section 409A of the Code.

ARTICLE II

DEFINITIONS

     2.1 Meaning of Definitions. For the purposes of this Plan, the following words and
phrases shall have the meanings hereinafter set forth, unless a different meaning is clearly
required by the context:

	 	(a)	 	“Beneficiary” shall mean the person, persons or entity entitled under
Article VIII to receive any Plan benefits that may become payable after a Participant’s
death.
	 
	 	(b)	 	“Board” shall mean the Board of Directors of KeyCorp, the Board’s
Compensation and Organization Committee, or any other committee designated by the Board
or a subcommittee designated by the Board’s Compensation and Organization Committee.
	 
	 	(c)	 	“Change of Control” shall be deemed to have occurred if under a rabbi
trust arrangement established by KeyCorp (“Trust”), as such Trust may from time to time
be amended or substituted, the Corporation is required to fund the Trust because of a
“Change of Control” as that term is defined in the Trust.
	 
	 	(d)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from
time to time, together with all regulations promulgated thereunder. Reference to a
section of the Code shall include such section and any comparable section or sections
of any future legislation that amends, supplements, or supersedes such section.
	 
	 	(e)	 	“Common Stock Account” shall mean the investment account established
under the Plan for bookkeeping purposes, in which a Participant may elect to have his
or her Discretionary Bonus Awards credited. Discretionary Bonus Awards invested in the
Common Stock Account shall be credited based on a bookkeeping allocation of KeyCorp
Common Shares (both whole and fractional rounded to the nearest one-hundredth of a
share) that shall be equal to the amount of Discretionary Bonus Awards and Corporate

 

 

	 	 	 	Contributions invested by the Participant and by the Corporation in the Common Stock
Account. The Common Stock Account shall also reflect on a bookkeeping basis all
dividends, gains, and losses attributable to such Common Shares. All Corporate
Contributions and all Discretionary Bonus Awards credited to the Common Stock
Account, shall be based on the ten-day average of the New York Stock Exchange’s
closing price for such Common Shares immediately preceding, up to, and including the
day such Discretionary Bonus Awards and Corporate Contributions are credited to the
Participants’ Plan Account.

	 	(f)	 	“Corporate Contributions” shall mean the dollar amount that an Employer
has agreed to contribute on a bookkeeping basis to the Participant’s Plan Account in
accordance with the provisions of Article V of the Plan.
	 
	 	(g)	 	“Corporation” shall mean KeyCorp, an Ohio corporation, its corporate
successors, and any corporation or corporations into or with which it may be merged or
consolidated.
	 
	 	(h)	 	“Deferral Period” shall mean each applicable calendar year.
	 
	 	(i)	 	“Determination Date” shall mean the last business day of each calendar
quarter.
	 
	 	(j)	 	“Disability” shall mean (1) the physical or mental disability of a
permanent nature which prevents a Participant from performing the duties such
Participant was employed to perform for his or her Employer when such disability
commenced, (2) qualifies for disability benefits under the federal Social Security Act
within 30 months following the Participant’s disability, and (3) qualifies the
Participant for disability coverage under the KeyCorp Long Term Disability Plan.
	 
	 	(k)	 	“Discharge for Cause” shall mean the termination (whether by the
Participant or the Employer) of a Participant’s employment from his or her Employer and
any other Employer that is the result of (1) serious misconduct as an Employee,
including, but not limited to, a continued failure after notice to perform a
substantial portion of his or her duties and responsibilities unrelated to illness or
incapacity, unethical behavior such as acts of self-dealing or self-interest,
harassment, violence in the workplace, or theft; (2) the commission of a crime
involving a controlled substance, moral turpitude, dishonesty, or breach of trust; or
(3) the Employer being directed by a regulatory agency or self-regulatory agency to
terminate or suspend the Participant or to prohibit the Participant from performing
services for the Employer. The Corporation in its sole and absolute discretion shall
determine whether a Participant has been Discharged for Cause, as provided for in this
Section 2.1(k), provided, however, that for a period of two years following a Change of
Control, any determination by the Corporation that an Employee has been Discharged for
Cause shall be set forth in writing with the factual basis for such Discharge for Cause
clearly specified and documented by the Corporation.
	 
	 	(l)	 	“Discretionary Bonus Awards” shall mean those not-vested
discretionary bonus award(s) granted to an Employee under the terms of an
Incentive Compensation Plan during the applicable Deferral Period, which shall
be subject to the automatic deferral and vesting provisions of Article III and
Article VI of the Plan. For purposes of this Section 2.1(l), the term
“Discretionary Bonus Awards” shall not include any compensation paid to the
Employee during the applicable Deferral Period which constitutes any form of a
hiring bonus, sales

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	 	 	 	commissions, referral awards, recognition awards, and /or corporate
long-term incentive compensation plan awards.

	 	(m)	 	“Employee” shall mean a common law employee who is employed by an
Employer.
	 
	 	(n)	 	“Employer” shall mean the Corporation and any of its subsidiaries or
affiliates, unless specifically excluded as an Employer for Plan purposes by written
action by an officer of the Corporation. An Employer’s Plan participation shall be
subject to all conditions and requirements made by the Corporation, and each Employer
shall be deemed to have appointed the Plan Administrator as its exclusive agent under
the Plan as long as it continues as an Employer.
	 
	 	(o)	 	“Harmful Activity” shall have occurred if the Participant shall do any
one or more of the following. This provision shall survive the Participant’s
termination of employment from KeyCorp.

	 	(i)	 	Use, publish, sell, trade or otherwise disclose Non-Public
Information of KeyCorp unless such prohibited activity was inadvertent, done in
good faith and did not cause significant harm to KeyCorp.
	 
	 	(ii)	 	After notice from KeyCorp, fail to return to KeyCorp any
document, data, or thing in his or her possession or to which the Participant
has access that may involve Non-Public Information of KeyCorp.
	 
	 	(iii)	 	After notice from KeyCorp, fail to assign to KeyCorp all
right, title, and interest in and to any confidential or non-confidential
Intellectual Property which the Participant created, in whole or in part,
during employment with KeyCorp, including, without limitation, copyrights,
trademarks, service marks, and patents in or to (or associated with) such
Intellectual Property.
	 
	 	(iv)	 	After notice from KeyCorp, fail to agree to do any acts and
sign any document reasonably requested by KeyCorp to assign and convey all
right, title, and interest in and to any confidential or non-confidential
Intellectual Property which the Participant created, in whole or in part,
during employment with KeyCorp, including, without limitation, the signing of
patent applications and assignments thereof.
	 
	 	(v)	 	Upon the Participant’s own behalf or upon behalf of any other
person or entity that competes or plans to compete with KeyCorp, solicit or
entice for employment or hire any KeyCorp employee.
	 
	 	(vi)	 	Upon the Participant’s own behalf or upon behalf of any other
person or entity that competes or plans to compete with KeyCorp, call upon,
solicit, or do business with (other than business which does not compete with
any business conducted by KeyCorp) any KeyCorp customer the Participant called
upon, solicited, interacted with, or became acquainted with, or learned of
through access to information (whether or not such information is or was
non-public) while the Participant was employed at KeyCorp unless such
prohibited activity was inadvertent, done in good faith, and did not involve a
customer whom the Participant should have reasonably known was a customer of
KeyCorp.

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	 	(vii)	 	Upon the Participant’s own behalf or upon behalf of any other
person or entity that competes or plans to compete with KeyCorp, after notice
from KeyCorp, continue to engage in any business activity in competition with
KeyCorp in the same or a closely related activity that the Participant was
engaged in for KeyCorp during the one year period prior to the termination of
the Participant’s employment.
	 
	 	 	 	For purposes of this Section 2.1(o) the term:
	 
	 	 	 	“Intellectual Property” shall mean any invention, idea, product,
method of doing business, market or business plan, process, program,
software, formula, method, work of authorship, or other information,
or thing relating to KeyCorp or any of its businesses.
	 
	 	 	 	“Non-Public Information” shall mean, but is not limited to, trade
secrets, confidential processes, programs, software, formulas,
methods, business information or plans, financial information, and
listings of names (e.g., employees, customers, and suppliers) that are
developed, owned, utilized, or maintained by an employer such as
KeyCorp, and that of its customers or suppliers, and that are not
generally known by the public.
	 
	 	 	 	“KeyCorp” shall include KeyCorp, its subsidiaries, and its affiliates.

	 	(p)	 	“Incentive Compensation Plan” shall mean a line of business or
management incentive compensation plan that is sponsored by KeyCorp or an affiliate of
KeyCorp that mandates the deferral of unvested Discretionary Bonus Awards granted under
the applicable Incentive Compensation Plan and which the Corporation in its sole
discretion has determined constitutes an Incentive Compensation Plan for purposes of
the Plan.
	 
	 	(q)	 	“Interest Bearing Account” shall mean the investment account
established under the Plan for bookkeeping purposes in which a Participant may elect to
have his or her Discretionary Bonus Awards credited. Discretionary Bonus Awards
invested for bookkeeping purposes in the Interest Bearing Account shall be credited
with earnings as of each Determination Date which shall be based on the effective
annual yield of the average of Moody’s Average Corporate Bond Yield Index for the
previous calendar month increased by 50 basis points. In the event that Moody’s
Investor Services, Inc. ceases to publish such Index (or any successor publisher
thereto) the Board, in its sole and absolute discretion, shall select a substantially
similar index to be used in crediting earnings under the Interest Bearing Account.
	 
	 	(r)	 	“Investment Accounts” shall collectively mean those investment accounts
established under the Plan for bookkeeping purposes in which a Participant may elect to
have his or her Discretionary Bonus Awards credited. Investment Accounts shall include
the Plan’s (1) Interest Bearing Account, (2) Common Stock Account, and (3) Investment
Funds.
	 
	 	(s)	 	“Investment Funds” shall mean those investment accounts established
under the Plan for bookkeeping purposes in which a Participant may elect to have his or
her Discretionary Bonus awards credited and which mirror the investment funds
established under Article VIII of the KeyCorp 401(k) Savings Plan (“Savings Plan”) as
may be amended from time to time, provided, however, that the Savings Plan’s
Corporation Stock Fund, for Plan purposes, shall be excluded from the definition of
Investment Funds. Discretionary Bonus Awards invested for bookkeeping purposes in the

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	 	 	 	Investment Funds shall be credited on a bookkeeping basis with those earnings,
gains, and losses experienced by the Savings Plan’s investment funds.

	 	(t)	 	“Involuntary Termination” shall mean the termination (by the Employer)
of a Participant’s employment from his or her Employer and from any other Employer,
other than a Discharge for Cause or a Termination Under Limited Circumstances.
	 
	 	(u)	 	“Participant” shall mean an Employee who meets the eligibility and
participation requirements set forth in Section 3.1 of the Plan.
	 
	 	(v)	 	“Plan” shall mean the McDonald Financial Group Deferral Plan with all
amendments, modifications and revisions as hereafter made.
	 
	 	(w)	 	“Plan Account” shall mean those bookkeeping accounts established by the
Corporation for each Plan Participant, which shall reflect all Discretionary Bonus
Awards and Corporate Contributions invested for bookkeeping purposes in the Plan’s
Investment Accounts, with all earnings, dividends, gains, and losses thereon. Plan
Accounts shall not constitute separate Plan funds or separate Plan assets. Neither the
maintenance of, nor the crediting of amounts to such Plan Accounts shall be treated (i)
as the allocation of any Corporation assets to, or a segregation of any Corporation
assets in any such Plan Accounts, or (ii) as otherwise creating a right in any person
or Participant to receive specific assets of the Corporation.
	 
	 	(x)	 	“Plan Year” shall mean the calendar year.
	 
	 	(y)	 	“Retirement” shall mean the termination of a Participant’s employment
any time after the Participant’s attainment of age 55 and completion of 5 years of
Vesting Service but shall not include the Participant’s (i) Discharge for Cause, (ii)
Involuntary Termination, (iii) Termination Under Limited Circumstances, (iv)
Disability, or (v) death.
	 
	 	(z)	 	“Termination Under Limited Circumstances” shall mean the termination
(whether by the Participant or the Employer) of a Participant’s employment from his or
her Employer, and from any other Employer (i) under circumstances in which the
Participant is entitled to receive severance benefits or salary continuation benefits
under the KeyCorp Separation Pay Plan, (ii) under circumstances in which the
Participant is entitled to severance benefits or salary continuation or similar
benefits under a change of control agreement or employment agreement within two years
after a change of control (as defined by such agreement) has occurred, or (iii) as
otherwise expressly approved by an officer of the Corporation.
	 
	 	(aa)	 	“Vesting Service” for purposes of Section 2.1(y) shall be calculated by
measuring the period of service commencing on the Employee’s employment commencement
date and ending on the Employee’s termination date and shall be computed based on each
full calendar month that the Employee is employed by an Employer.
	 
	 	(bb)	 	“Voluntary Termination” shall mean a voluntary termination of the
Participant’s employment from his or her Employer and from any other Employer, whether
by resignation or otherwise, but shall not include the Participant’s Discharge for
Cause, Involuntary Termination, Retirement, Termination Under Limited Circumstances, or
termination as a result of Disability or death.

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	 	(cc)	 	“Termination” shall mean the voluntary or involuntary and permanent
termination of a Participant’s employment from his or her Employer and any other
Employer, whether by resignation or otherwise, but shall not include the Participant’s
Retirement.

     2.2 Pronouns. The masculine pronoun wherever used herein includes the feminine in any
case so requiring, and the singular may include the plural.

ARTICLE III

ELIGIBILITY AND PARTICIPATION

     3.1 Eligibility and Participation. An Employee shall automatically become a Plan
Participant upon (i) the Employee’s meeting the applicable Incentive Compensation Plan’s annual
production criteria established by the Corporation for the applicable Deferral Period, and (ii) the
Employee being awarded a not vested Discretionary Bonus Award under his or her applicable
Incentive Compensation Plan.

     3.2 Automatic Deferral Requirements. An Employee meeting the eligibility and
automatic participation requirements of Section 3.1 hereof, shall automatically have his or her not
vested Discretionary Bonus Awards deferred to the Plan. Such Discretionary Bonus Awards shall be
maintained in the Plan until vested or forfeited.

     3.3 Deferral Limited by Termination Under Limited Circumstances, Involuntary Termination,
Retirement, Disability, or Death. As of a Participant’s Termination Under Limited
Circumstances, Involuntary Termination, Retirement, Disability or death, the Participant shall be
relieved from and, further, shall not be permitted to have any further bonus awards deferred to the
Plan, and any Discretionary Bonus Awards that thereafter would have been subject to the Automatic
Deferral Requirements of Section 3.2 hereof, if and to the extent payable, shall be paid directly
to the Participant in accordance with the terms of the applicable Incentive Compensation Plan.

     3.4 Effect of a Participant’s Discharge for Cause or Voluntary Termination on
Participant’s Discretionary Bonus Award. In the event of a Participant’s Discharge for Cause
or Voluntary Termination, the Participant shall forfeit his or her Discretionary Bonus Award to the
extent that it would otherwise become subject to the Automatic Deferral Requirements of Section 3.2
of the Plan when paid but for the termination of the Participant’s employment.

     3.5 Change in Participation Status. During those Deferral Periods in which the
Participant does not automatically defer Discretionary Bonus Awards to the Plan, Discretionary
Bonus Awards and Corporate Contributions previously credited to the Participant’s Plan Account
shall remain in the Plan and shall continue to vest under the terms of Section 6.1 hereof; such
Discretionary Bonus Awards and Corporate Contributions with all earnings, gains, or losses thereon
when vested shall be distributed to the Participant in accordance with the provisions of Article
VII of the Plan.

ARTICLE IV

DISCRETIONARY BONUS AWARDS

     4.1 Plan Account/Investment of Discretionary Bonus Awards. Discretionary Bonus Awards
and Corporate Contributions shall be credited on a bookkeeping basis to a Plan Account

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established in the Participant’s name. Each Participant shall direct the manner in which his or her
Discretionary Bonus Awards are to be invested for bookkeeping purposes under the Plan. All
Discretionary Bonus Awards may be invested for bookkeeping purposes in any one or more of the
Plan’s Investment Accounts, in such amounts as the Participant shall select, provided that such
election amounts are expressed in five percent increments. Participants may modify their
investment elections at such times and in such manner as permitted by the Corporation.

     4.2 Crediting of Discretionary Bonus Awards. Discretionary Bonus Awards shall be
credited to the Participant’s Plan Account as of the date that the Participant’s Discretionary
Bonus Awards would have been payable to the Participant under an Incentive Compensation Plan but
for the Incentive Compensation Plan’s mandatory deferral requirements.

     4.3 Default Investment Election. In the event that a Participant fails to direct the
manner in which his or her Discretionary Bonus Award(s) shall be invested for bookkeeping purposes
under the Plan, then such Discretionary Bonus Award(s) when credited to the Participant’s Plan
Account shall be automatically invested on a bookkeeping basis in the Plan’s Interest Bearing
Account.

ARTICLE V

CORPORATE CONTRIBUTIONS

     5.1 Crediting of Corporation Contributions. Corporate Contributions equal to 15% of
the Participant’s Discretionary Bonus Awards for the applicable Deferral Period shall be credited
on a bookkeeping basis to the Participant’s Plan Account as of the payroll date on which the
Participant’s Discretionary Bonus Awards are automatically deferred and credited to the Plan.

     5.2 Investment of Corporate Contributions. All Corporate Contributions credited to
the Participant’s Plan Account shall be invested for bookkeeping purposes in the Plan’s Common
Stock Account. Corporate Contributions are not subject to Participant investment direction.

     5.3 Determination of Amount. The Plan Administrator shall verify the amount of
Discretionary Bonus Awards, Corporate Contributions, dividends, and earnings, if any, to be
credited to each Participant’s Plan Account in accordance with the provisions of the Plan. The
reasonable and equitable decision of the Plan Administrator as to the value of each Plan Account
shall be conclusive and binding upon all Participants and the Beneficiary of each deceased
Participant having any interest, direct or indirect in the Participant’s Plan Account. As soon as
reasonably practicable after the close of the Plan Year, the Corporation shall send to each
Participant an itemized accounting statement that shall reflect the Participant’s Plan Account
balance.

     5.4 Corporate Assets. All Discretionary Bonus Awards, Corporate Contributions,
dividends, earnings and any other gains and losses credited to a Participant’s Plan Account on a
bookkeeping basis, remain the assets and property of the Corporation, which shall be subject to
distribution to the Participant only in accordance with Article VII of the Plan. Participants and
Beneficiaries shall have the status of general unsecured creditors of the Corporation. Nothing
contained in the Plan shall create, or be construed as creating a trust of any kind or any other
fiduciary relationship between the Participant, the Corporation, or any other person. It is the
intention of the Corporation and it is the understanding of the Participant that the Plan be
unfunded.

     5.5 No Present Interest. Subject to any federal statute to the contrary, no right or
benefit under the Plan and no right or interest in each Participant’s Plan Account shall be subject
to anticipation,

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alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to anticipate,
alienate, sell, assign, pledge, encumber, or charge any right or benefit under the Plan, or
Participant’s Plan Account shall be void. No right, interest, or benefit under the Plan or
Participant’s Plan Account shall be liable for or subject to the debts, contracts, liabilities, or
torts of the Participant or Beneficiary. If the Participant or Beneficiary becomes bankrupt or
attempts to alienate, sell, assign, pledge, encumber, or charge any right under the Plan or
Participant’s Plan Account, such attempt shall be void and unenforceable.

ARTICLE VI

VESTING

     6.1 Vesting in Discretionary Bonus Awards and Corporate Contributions. Subject to the
provisions of Section 7.9 of the Plan, the calculation of a Participant’s vested interest in those
Discretionary Bonus Awards and Corporate Contributions credited on a bookkeeping basis to the
Participant’s Plan Account shall be measured from the last day of the applicable calendar quarter
in which the Discretionary Bonus Awards and Corporate Contributions are credited to the
Participant’s Plan Account (“Quarterly Deferral Date”). A Participant shall become vested in his
or her Discretionary Bonus Awards and Corporate Contributions with all earnings, gains, and losses
thereon under the following three-year graded vesting schedule:

	 	(a)	 	From the date the Participant’s Discretionary Bonus Awards and Corporate
Contributions are credited to the Participant’s Plan Account until one
full calendar year from the Quarterly Deferral Date . . . . . 0%.
	 
	 	(b)	 	One full calendar year from the Quarterly Deferral Date of the
Participant’s Discretionary Bonus Awards and Corporate Contributions to the
Plan but less than two full calendar years from such Quarterly Deferral
Date . . . . . 33%.
	 
	 	(c)	 	Two full calendar years from the Quarterly Deferral Date of the
Participant’s Discretionary Bonus Awards and Corporate Contributions to the
Plan but less than three full calendar years from such Quarterly Deferral
Date . . . . . 66%.
	 
	 	(d)	 	Three full calendar years from the date of the Quarterly Deferral Date
of the Participant’s Discretionary Bonus Awards and Corporate Contributions to
the Plan  . . . . . 100%.

Notwithstanding the foregoing provisions of this Section 6.1, a Participant shall become fully
vested in all Discretionary Bonus Awards and Corporate Contributions credited on a bookkeeping
basis to the Participant’s Plan Account upon the Participant’s Termination Under Limited
Circumstances, Disability or death.

     6.2 Continued Vesting Upon Retirement. Subject to the provisions of Section 7.9 of
the Plan, upon the Participant’s Retirement, the Participant’s unvested Discretionary Bonus Awards
and Corporate Contributions credited to the Participant’s Plan Account with all earnings and gains
thereon, shall remain in the Plan and shall continue to vest under the vesting provisions of
Section 6.1 of the Plan.

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     6.3 Forfeiture of Corporate Contributions. In the event of the Participant’s
Involuntary Termination, as that term is defined in accordance with Section 2.1(t) of the Plan, the
Participant shall become immediately vested in those Discretionary Bonus Awards allocated on a
bookkeeping basis to the Participant’s Plan Account with all related earnings and gains thereon.
All not vested Corporate Contributions and related earnings credited on a bookkeeping basis to the
Participant’s Plan Account shall be forfeited as of the Participant’s last day of employment.

     6.4 Forfeiture of Discretionary Bonus Awards and Corporate Contributions.
Notwithstanding any provision of the Plan to the contrary, upon the Participant’s Discharge for
Cause or the Participant’s Voluntary Termination, the Participant shall automatically forfeit all
Discretionary Bonus Awards and Corporate Contributions allocated on a bookkeeping basis to the
Participant’s Plan Account with all earnings and gains thereon that are not vested in accordance
with the vesting provisions of Section 6.1 of the Plan as of the Participant’s last day of
employment.

ARTICLE VII

DISTRIBUTION OF PLAN BENEFITS

     7.1 Distribution of Interest Bearing Account and/or Investment Funds. Subject to the
provisions of Section 7.8 and Section 7.9 hereof, a Participant shall receive a distribution of his
or her vested Plan Account balance from the Plan’s Interest Bearing Account and /or Investment
Funds as a single lump sum cash distribution.

     7.2 Distribution for Common Stock Account. Subject to the provisions of Section 7.8
and Section 7.9 hereof, a Participant shall receive a distribution of his or her vested Plan
Account balance from the Plan’s Common Stock Account as a single lump sum distribution of KeyCorp
Common Shares.

     7.3 Distribution of Account Balance. The Participant’s vested Plan Account shall be
valued as of the Determination Date immediately following his or her Termination, Retirement, or
Disability (the “valuation date”), and such lump sum distribution shall be made to the Participant
no later than 90 days thereafter.

     7.4 Distributions Following Retirement. Subject to the Harmful Activity provisions of
Section 7.9 of the Plan, upon the Participant’s Retirement, the Participant’s Plan Account balance
shall continue to be maintained within the Plan and all Discretionary Bonus Awards and Corporate
Contributions credited to the Participant’s Plan Account with all earnings, gains, and losses
thereon, shall continue to vest under the vesting provisions of Section 6.1 of the Plan, and when
vested, shall be immediately distributed to the Participant in accordance with the provisions of
Section 7.3 hereof.

     7.5 Distributions Following Termination Under Limited Circumstances, Disability or Death.
Upon the Participant’s Termination Under Limited Circumstances, Disability or death, all
Discretionary Bonus Awards and Corporate Contributions credited to the Participant’s Plan Account
with all earnings, gains, and losses thereon shall become immediately vested and distributed to the
Participant in accordance with the provisions of Section 7.3 hereof.

     7.6 Distributions Following Involuntary Termination. In accordance with the provisions of
Section 6.3 of the Plan, upon the Participant’s Involuntary Termination, all Discretionary Bonus
Awards credited to the Participant’s Plan Account with all related earnings, gains and losses
thereon, shall become immediately vested and distributed to the Participant in accordance with the
provisions of Section 7.3

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hereof as a single lump sum distribution. All not vested Corporate Contributions credited to the
Participant’s Plan Account with all related earnings thereon shall be forfeited by the Participant
as of his or her last day of employment.

     7.7 Distributions Following Voluntary Termination or Discharge for Cause. Upon the
Participant’s Voluntary Termination or Discharge for Cause, all not vested Discretionary Bonus
Awards and Corporate Contributions credited to the Participant’s Plan Account with all earnings,
gains, and losses thereon shall be forfeited by the Participant as of his or her last day of
employment.

     7.8 Payment Limitation for Key Employees.  Notwithstanding any other provision of the
Plan to the contrary, including the provisions contained within this Article VII hereof, in the
event that the Participant constitutes a “key” employee of the Corporation (as that term is defined
in accordance with Section 416(i) of the Code without regard to paragraph (5) thereof),
distributions of the Participant’s Plan benefit may not commence before the first day of the
seventh month following the Participant’s date of separation from service (or, if earlier, the date
of death of the Participant). Payment shall be made to the Participant within 90 days following the
Determination Date that coincides with or immediately follows the conclusion of this mandatory
six-month deferral period. The term “separation from service” shall be defined for Plan purposes
in accordance with the requirements of Section 409A of the Code and applicable regulations issued
thereunder.

     7.9 Harmful Activity. If a Participant engages in any “Harmful Activity” prior to or
within twelve months after the Participant’s Termination or Retirement of employment with an
Employer, (a) all not vested Discretionary Bonus Awards and not vested Corporate Contributions with
all earnings and gains thereon that are maintained in the Plan in conjunction with the continued
vesting provisions of Section 6.2 hereof shall be immediately forfeited, and (b) all distribution
of Discretionary Bonus Awards and Corporate Contributions with all earnings and gains thereon made
to the Participant within one year prior to the Participant’s Termination or Retirement date shall
be fully repaid by the Participant to the Corporation within 60 days following the Participant’s
receipt of the Corporation’s notice of such Harmful Activity.

     The foregoing restrictions shall not apply in the event that the Participant’s employment with
an Employer terminates within two years after a Change of Control if any of the following have
occurred: a relocation of the Participant’s principal place of employment more than 35 miles from
the Participant’s principal place of employment immediately prior to the Change of Control, a
reduction in the Participant’s base salary after a Change of Control, or termination of employment
under circumstances in which the Participant is entitled to severance benefits or salary
continuation or similar benefits under a change of control agreement, employment agreement, or
severance or separation pay plan.

     The determination by the Corporation as to whether a Participant has engaged in a “Harmful
Activity” prior to or within twelve months after the Participant’s Retirement or Termination with
an Employer shall be final and conclusive upon the Participant and upon all other Persons.

     7.10 Withholding. The withholding of taxes with respect to the Participant’s
Discretionary Bonus Awards, Corporate Contributions, and all earnings and gains thereon shall be
made at such time as it becomes required by any state, federal or local law; such taxes shall be
withheld from the Participant’s Discretionary Bonus Awards and Corporate Contributions in
accordance with applicable law to the maximum extent possible.

     7.11 Facility of Payment. If it is found that any individual to whom an amount is
payable hereunder is incapable of attending to his or her financial affairs because of any mental
or physical condition, including the infirmities of advanced age, such amount (unless prior claim
therefor shall have been made by a duly qualified guardian or other legal representative) may, in
the discretion of the

-10-

 

Corporation, be paid to another person for the use or benefit of the individual found
incapable of attending to his or her financial affairs or in satisfaction of legal obligations
incurred by or on behalf of such individual. Any such payment shall be charged to the
Participant’s Plan Account from which any such payment would otherwise have been paid to the
individual found incapable of attending to his or her financial affairs, and shall be a complete
discharge of any liability therefor under the Plan.

ARTICLE VIII

BENEFICIARY DESIGNATION

     8.1 Beneficiary Designation. Subject to Section 8.3 hereof, each Participant shall
have the right, at any time, to designate one or more persons or an entity as Beneficiary (both
primary as well as secondary) to whom benefits under this Plan shall be paid in the event of
Participant’s death prior to complete distribution of the Participant’s vested Plan Account. Each
Beneficiary designation shall be in a written form prescribed by the Corporation and shall be
effective only when filed with the Corporation during the Participant’s lifetime.

     8.2 Changing Beneficiary. A Beneficiary designation may be changed by the Participant
without the consent of the previously named Beneficiary by the Participant’s filing of a new
designation with the Corporation. The filing of a new designation shall cancel all designations
previously filed by the Participant.

     8.3 No Beneficiary Designation. If a Participant fails to designate a Beneficiary in
the manner provided above, if the designation is void, or if the Beneficiary (including all
contingent Beneficiaries) designated by a deceased Participant dies before the Participant, the
Participant’s Beneficiary shall be the Participant’s estate.

ARTICLE IX

ADMINISTRATION

     9.1 Administration. The Corporation, as the Plan Administrator, shall be responsible
for the general administration of the Plan, for carrying out the provisions hereof, and for making
payments hereunder. The Corporation shall have the sole and absolute discretionary authority and
power to carry out the provisions of the Plan, including, but not limited to, the authority and
power (a) to determine all questions relating to the eligibility for and the amount of any benefit
to be paid under the Plan, (b) to determine all questions pertaining to claims for benefits and
procedures for claim review, (c) to resolve any and all questions arising under the Plan, including
any question of construction and/or interpretation, and (d) to take such further action as the
Corporation deems necessary or advisable in the administration of the Plan. All findings,
decisions, and determinations of any kind made by the Plan Administrator shall not be disturbed
unless the Plan Administrator has acted in an arbitrary and capricious manner. Subject to the
requirements of law, the Plan Administrator shall be the sole judge of the standard of proof
required in any claim for benefits and in any determination of eligibility for a benefit. All
decisions of the Plan Administrator shall be final and binding on all parties. The Corporation may
employ such attorneys, investment counsel, agents, and accountants as it may deem necessary or
advisable to assist it in carrying out its duties hereunder. The actions taken and the decisions
made by the Corporation hereunder shall be final and binding upon all interested parties subject,
however, to the provisions of Section 9.2. The Plan Year, for purposes of Plan administration,
shall be the calendar year.

-11-

 

     9.2 Claims Review Procedure. Whenever the Plan Administrator decides for whatever
reason to deny, whether in whole or in part, a claim for benefits under this Plan filed by any
person (herein referred to as the “Claimant”), the Plan Administrator shall transmit a written
notice of its decision to the Claimant, which notice shall be written in a manner calculated to be
understood by the Claimant and shall contain a statement of the specific reasons for the denial of
the claim and a statement advising the Claimant that, within 60 days of the date on which he or she
receives such notice, he or she may obtain review of the decision of the Plan Administrator in
accordance with the procedures hereinafter set forth. Within such 60-day period, the Claimant or
his or her authorized representative may request that the claim denial be reviewed by filing with
the Plan Administrator a written request therefor, which request shall contain the following
information:

	 	(a)	 	the date on which the request was filed with the Plan Administrator; provided,
however, that the date on which the request for review was in fact filed with the Plan
Administrator shall control in the event that the date of the actual filing is later
than the date stated by the Claimant pursuant to this paragraph (a);
	 
	 	(b)	 	the specific portions of the denial of his or her claim which the Claimant
requests the Plan Administrator to review;
	 
	 	(c)	 	a statement by the Claimant setting forth the basis upon which he or she
believes the Plan Administrator should reverse its previous denial of the claim and
accept the claim as made; and
	 
	 	(d)	 	any written material which the Claimant desires the Plan Administrator to
examine in its consideration of his or her position as stated pursuant to paragraph (b)
above.

     In accordance with this Section, if the Claimant requests a review of the Claim decision, such
review shall be made by the Plan Administrator who shall, within sixty (60) days after receipt of
the request form, review and render a written decision on the claim containing the specific reasons
for the decision including reference to Plan provisions upon which the decision is based. All
findings, decisions, and determinations of any kind made by the Plan Administrator shall not be
modified unless the Plan Administrator has acted in an arbitrary and capricious manner. Subject to
the requirements of law, the Plan Administrator shall be the sole judge of the standard of proof
required in any claim for benefits, and any determination of eligibility for a benefit. All
decisions of the Plan Administrator shall be binding on the claimant and upon all other Persons.
If the Participant or Beneficiary shall not file written notice with the Plan Administrator at the
times set forth above, such individual shall have waived all benefits under the Plan other than as
already provided, if any, under the Plan.

ARTICLE X

AMENDMENT AND TERMINATION OF PLAN

     10.1 Reservation of Rights. The Corporation reserves the right to terminate the Plan
at any time by action of the Corporation, or any duly authorized committee thereof, and to modify
or amend the Plan, in whole or in part, at any time and for any reason, subject to the following:

	 	(a)	 	Preservation of Account Balance. No termination, amendment, or
modification of the Plan shall reduce (i) the amount of Discretionary Bonus Awards and
Corporate Contributions, and (ii) all earnings and gains on such Discretionary Bonus
Awards and

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	 	 	 	Corporate Contributions that have accrued up to the effective date of the
termination, amendment, or modification.

	 	(b)	 	Changes in Earnings Rate. No amendment or modification of the Plan
shall reduce the rate of earnings to be credited on all Discretionary Bonus Awards and
Corporate Contribution, and all earnings and gains accrued thereon under the Common
Stock Account until the close of the applicable Plan Year in which such amendment or
modification is made.

     10.2 Effect of Plan Termination. Upon the Plan’s termination, all Participant Plan
Account balances shall remain in the Plan and shall continue to vest in accordance with the
provisions of Article VI of the Plan and when vested shall be distributed to the Participant in
accordance with the provisions of Article VII hereof. Notwithstanding anything to the contrary
contained in the Plan, the termination of the Plan shall terminate the liability of the Corporation
and all Employers as of the Plan’s termination date or such other date designated by the
Corporation to make further Corporate Contributions to the Plan.

ARTICLE XI

CHANGE OF CONTROL

     11.1 Change of Control. Notwithstanding any other provision of the Plan to the
contrary, in the event of a Change of Control as defined in accordance with Section 2.1(c) of the
Plan, no amendment or modification of the Plan may be made at any time on or after such Change of
Control (1) to reduce or modify a Participant’s Pre-Change of Control Account Balance, (2) to
reduce or modify the Common Stock Accounts’ method of calculating earnings, gains, and/or losses on
the Participant’s Pre-Change of Control Account Balance, or (3) to reduce or modify the
Participant’s Discretionary Bonus Awards and/or Corporate Contributions to be credited to the
Participant’s Plan Account for the applicable Deferral Period. For purposes of this Section 11.1,
the term “Pre-Change of Control Account Balance” shall mean, with regard to any Plan Participant,
the aggregate amount of the Participant’s Discretionary Bonus Awards and Corporate Contributions
with all earnings, gains, and losses thereon which are credited to the Participant’s Plan Account
through the close of the calendar year in which such Change of Control occurs.

     11.2 Common Stock Conversion. In the event of a transaction or occurrence in which
the Common Shares of the Corporation are converted into or exchanged for securities, cash and/or
other property as a result of any capital reorganization or reclassification of the capital stock
of the Corporation, or consolidation or merger of the Corporation with or into another corporation
or entity, or the sale of all or substantially all of its assets to another corporation or entity,
the Corporation shall cause the Common Stock Account to reflect on a bookkeeping basis the
securities, cash and other property that would have been received in such reorganization,
reclassification, consolidation, merger or sale in an equivalent amount of Common Shares equal to
the balance in the Common Stock Account and, from and after such reorganization, reclassification,
consolidation, merger or sale, the Common Stock Account shall reflect on a bookkeeping basis all
dividends, interest, earnings and losses attributable to such securities, cash, and other property.

     11.3 Amendment in the Event of a Change of Control. On and after a Change of Control,
the provisions of Article II, Article III, Article IV, Article V, Article VI, Article VII,
Article VIII, Article IX, Article X, and this Article XI may not be amended or modified as such
Sections and Articles apply with regard to the Participants’ Pre-Change of Control Account
Balances.

-13-

 

ARTICLE XII

MISCELLANEOUS PROVISIONS

     12.1 Unfunded Plan. This Plan is an unfunded plan maintained primarily to provide
deferred compensation benefits for a select group of “management or highly-compensated employees.”

     12.2 No Commitment as to Employment. Nothing herein contained shall be construed as a
commitment or agreement upon the part of any Employee hereunder to continue his or her employment
with an Employer, and nothing herein contained shall be construed as a commitment on the part of
any Employer to continue the employment, rate of compensation, or terms and conditions of
employment of any Employee hereunder for any period. All Participants shall remain subject to
discharge to the same extent as if the Plan had never been put into effect.

     12.3 Benefits. Nothing in the Plan shall be construed to confer any right or claim
upon any person, firm, or corporation other than the Participants, former Participants, and
Beneficiaries.

     12.4 Absence of Liability. No member of the Board of Directors of the Corporation or
a subsidiary or committee authorized by the Board of Directors, or any officer of the Corporation
or a subsidiary or officer of a subsidiary shall be liable for any act or action hereunder, whether
of commission or omission, taken by any other member, or by any officer, agent, or Employee, except
in circumstances involving bad faith or willful misconduct, for anything done or omitted to be
done.

     12.5 Expenses. The expenses of administration of the Plan shall be paid by the
Corporation.

     12.6 Precedent. Except as otherwise specifically agreed to by the Corporation in
writing, no action taken in accordance with the Plan by the Corporation shall be construed or
relied upon as a precedent for similar action under similar circumstances.

     12.7 Withholding. The Corporation shall withhold any tax which the Corporation in its
discretion deems necessary to be withheld from any payment to any Participant, former Participant,
or Beneficiary hereunder, by reason of any present or future law.

     12.8 Validity of Plan. The validity of the Plan shall be determined and the Plan
shall be construed and interpreted in accordance with the provisions of the laws of the State of
Ohio. The invalidity or illegality of any provision of the Plan shall not affect the validity or
legality of any other part thereof.

     12.9 Parties Bound. The Plan shall be binding upon the Employers, Participants,
former Participants, and Beneficiaries hereunder, and, as the case may be, the heirs, executors,
administrators, successors, and assigns of each of them.

     12.10 Headings. All headings used in the Plan are for convenience of reference only
and are not part of the substance of the Plan.

     12.11 Duty to Furnish Information. The Corporation shall furnish to each Participant,
former Participant, or Beneficiary any documents, reports, returns, statements, or other
information that it reasonably deems necessary to perform its duties imposed hereunder or otherwise
imposed by law.

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     12.12 Validity. In case any provision of this Plan shall be held illegal or invalid
for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal and invalid provision had never been
inserted herein.

     12.13 Notice. Any notice required or permitted under the Plan shall be deemed
sufficiently provided if such notice is in writing and hand delivered or sent by registered or
certified mail. Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark or on the receipt for registration or
certification. Mailed notice to the Corporation shall be directed to the Corporation’s address,
attention: KeyCorp Compensation and Benefits Department. Mailed notice to a Participant or
Beneficiary shall be directed to the individual’s last known address in the Employer’s records.

     12.14 Successors. The provisions of this Plan shall bind and inure to the benefit of
each Employer and its successors and assigns. The term successors as used herein shall include any
corporate or other business entity, which shall, whether by merger, consolidation, purchase or
otherwise, acquire all or substantially all of the business and assets of an Employer.

ARTICLE XIII

COMPLIANCE WITH

SECTION 409A CODE

     13.1 Compliance With Section 409A. The Plan is intended to provide for the deferral
of compensation in accordance with the provisions of Section 409A of the Code and regulations and
published guidance issued pursuant thereto. Accordingly, the Plan shall be construed in a manner
consistent with those provisions and may at any time be amended in the manner and to the extent
determined necessary or desirable by the Corporation to reflect or otherwise facilitate compliance
with such provisions with respect to amounts deferred on and after January 1, 2005.
Notwithstanding any provision of the Plan to the contrary, no otherwise permissible election,
deferral, accrual, or distribution shall be made or given effect under the Plan that would result
in a violation under Section 409A of the Code.

     IN WITNESS WHEREOF, KeyCorp has caused this McDonald Financial Group Deferral Plan to be
executed this 29th day of December, 2008, to be effective as of December 31, 2008.

	 	 	 	 	 	 	 
	 	 	KEYCORP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steven N. Bulloch	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Secretary
 

	 	 

-15-EX-10.33

Exhibit 10.33

KEYCORP
DEFERRED BONUS PLAN

ARTICLE I

     In accordance with the requirements of the American Jobs Creation Act of 2004, the KeyCorp
Signing Bonus Plan (“Plan”) as originally established January 1, 1999, and thereafter amended and
restated in its entirety as the KeyCorp Deferred Bonus Plan effective January 1, 2005, is hereby
amended and restated in its entirety as of December 31, 2008. The Plan as amended and restated,
continues to be structured to provide for the mandatory deferral of certain bonuses granted to
selected employees of KeyCorp. As structured, the Plan is intended to provide those selected
employees of KeyCorp with a tax-favorable savings vehicle, while allowing KeyCorp to retain the
employee’s continued employment. It is the intention of KeyCorp, and it is the understanding of
those employees who become covered under the Plan, that the Plan is unfunded for tax purposes. It
is also the understanding of those employees covered under the Plan that the Plan will be
administered in accordance with the requirements of Section 409A of the Code.

ARTICLE II
DEFINITIONS

     2.1 Meaning of Definitions. For the purposes of this Plan, the following words and
phrases shall have the meanings hereinafter set forth, unless a different meaning is clearly
required by the context:

	 	(a)	 	“Beneficiary” shall mean the person, persons or entity entitled under
Article VIII to receive any Plan benefits payable after a Participant’s death.
	 
	 	(b)	 	“Board” shall mean the Board of Directors of KeyCorp, the Board’s
Compensation and Organization Committee, or any other committee designated by the Board
or a subcommittee designated by the Board’s Compensation and Organization Committee.
	 
	 	(c)	 	“Change of Control” shall be deemed to have occurred if under a rabbi
trust arrangement established by KeyCorp (“Trust”), as such Trust may from time to time
be amended or substituted, the Corporation is required to fund the Trust because a
“Change of Control”, as defined in the Trust, has occurred on and after
January 1, 1999.
	 
	 	(d)	 	“Common Stock Account” shall mean the investment account established
under the Plan for bookkeeping purposes in which the Participant shall have his or her
Deferred Bonus credited. A Participant’s Deferred Bonus shall be credited based on a
bookkeeping allocation of KeyCorp Common Shares (both whole and fractional rounded to
the nearest one-hundredth of a share) (“Common Shares”), which on the date credited
shall be equal in market value (as determined under the last sentence of this Section
2.1(d)) to the amount of the Deferred Bonus. The Common Stock Account shall also
reflect on a bookkeeping basis all dividends, gains, and losses attributable to such
Common Shares. All Deferred Bonuses credited to the Common Stock Account shall be
based on the New York Stock Exchange’s closing price for such Common Shares as of the
day such Deferred Bonus is credited to the Participant’s Plan Account.

 

 

	 	(e)	 	“Corporation” shall mean KeyCorp, an Ohio corporation, its corporate
successors, and any corporation or corporations into or with which it may be merged or
consolidated.
	 
	 	(f)	 	“Date of Hire” shall mean the first day an Employee commences active
employment with an Employer.
	 
	 	(f)	 	“Determination Date” shall mean as of the date that the Participant
vests in his or her Deferred Bonus amount.
	 
	 	(g)	 	“Disability” shall mean (1) a physical or mental disability which
prevents a Participant from performing the duties the Participant was employed to
perform for his or her Employer when such disability commenced, (2) has resulted in the
Participant’s absence from work for 180 qualifying days, and (3) application has been
made for the Participant’s disability coverage under the KeyCorp Long Term Disability
Plan.
	 
	 	(h)	 	“Distribution Agreement” shall mean the executed agreement submitted by
the Employee to the Corporation in conjunction with the Employee’s execution of his or
her employment agreement or as otherwise required by the Corporation, which shall
contain, in pertinent part, the Employee’s distribution instructions for such Deferred
Bonus, when vested. In the event the Employee elects to transfer his or her vested
Deferred Bonus to the KeyCorp Deferred Savings Plan, the transferred Deferred Bonus
shall be subject to a mandatory 5 year deferral period from the date such Deferred
Bonus has vested and is transferred to the KeyCorp Deferred Savings Plan (i.e. the date
that it is otherwise payable to the Participant) under the subsequent election
requirements of Section 409A of the Code. An Employee’s election to transfer a vested
Deferred Bonus to the KeyCorp Deferred Savings Plan shall be made a minimum of twelve
full months prior to the date on which the Employee vests in his or her Deferred Bonus,
in accordance with the requirements of Section 409A.
	 
	 	(i)	 	“Employee” shall mean a common law employee who is employed by an
Employer.
	 
	 	(j)	 	“Employer” shall mean the Corporation and any of its subsidiaries or
affiliates, unless specifically excluded as an Employer for Plan purposes by written
action by an officer of the Corporation. An Employer’s Plan participation shall be
subject to all conditions and requirements made by the Corporation, and each Employer
shall be deemed to have appointed the Plan Administrator as its exclusive agent under
the Plan as long as it continues as an Employer.
	 
	 	(k)	 	“Harmful Activity” shall have occurred if the Participant shall do any
one or more of the following. This provision shall survive the Participant’s
termination of employment with Key:

	 	(i)	 	Use, publish, sell, trade or otherwise disclose Non-Public
Information of KeyCorp unless such prohibited activity was inadvertent, done in
good faith and did not cause significant harm to KeyCorp.
	 
	 	(ii)	 	After notice from KeyCorp, fail to return to KeyCorp any
document, data, or thing in his or her possession or to which the Participant
has access that may involve Non-Public Information of KeyCorp.

2

 

	 	(iii)	 	After notice from KeyCorp, fail to assign to KeyCorp all
right, title, and interest in and to any confidential or non-confidential
Intellectual Property which the Participant created, in whole or in part,
during employment with KeyCorp, including, without limitation, copyrights,
trademarks, service marks, and patents in or to (or associated with) such
Intellectual Property.
	 
	 	(iv)	 	After notice from KeyCorp, fail to agree to do any acts and
sign any document reasonably requested by KeyCorp to assign and convey all
right, title, and interest in and to any confidential or non-confidential
Intellectual Property which the Participant created, in whole or in part,
during employment with KeyCorp, including, without limitation, the signing of
patent applications and assignments thereof.
	 
	 	(v)	 	Upon the Participant’s own behalf or upon behalf of any other
person or entity that competes or plans to compete with KeyCorp, solicit or
entice for employment or hire any KeyCorp employee.
	 
	 	(vi)	 	Upon the Participant’s own behalf or upon behalf of any other
person or entity that competes or plans to compete with KeyCorp, call upon,
solicit, or do business with (other than business which does not compete with
any business conducted by KeyCorp) any KeyCorp customer the Participant called
upon, solicited, interacted with, or became acquainted with, or learned of
through access to information (whether or not such information is or was
non-public) while the Participant was employed at KeyCorp unless such
prohibited activity was inadvertent, done in good faith, and did not involve a
customer whom the Participant should have reasonably known was a customer of
KeyCorp.
	 
	 	(vii)	 	Upon the Participant’s own behalf or upon behalf of any other
person or entity that competes or plans to compete with KeyCorp, after notice
from KeyCorp, continue to engage in any business activity in competition with
KeyCorp in the same or a closely related activity that the Participant was
engaged in for KeyCorp during the one year period prior to the termination of
the Participant’s employment.
	 
	 	 	 	For purposes of this Section 2.1(k) the term:
	 
	 	 	 	“Intellectual Property” shall mean any invention, idea, product,
method of doing business, market or business plan, process, program,
software, formula, method, work of authorship, or other information,
or thing relating to KeyCorp or any of its businesses.
	 
	 	 	 	“Non-Public Information” shall mean, but is not limited to, trade
secrets, confidential processes, programs, software, formulas,
methods, business information or plans, financial information, and
listings of names (e.g., employees, customers, and suppliers) that are
developed, owned, utilized, or maintained by an employer such as
KeyCorp, and that of its customers or suppliers, and that are not
generally known by the public.
	 
	 	 	 	“KeyCorp” shall include KeyCorp, its subsidiaries, and its affiliates.

	 	(l)	 	“Deferred Bonus” shall mean all or any portion of the
Employee’s bonus award that the Employer automatically defers to the Plan.

3

 

	 	(m)	 	“Participant” shall mean an Employee who meets the eligibility and
participation requirements set forth in Section 3.1 of the Plan.
	 
	 	(n)	 	“Plan” shall mean the KeyCorp Deferred Bonus Plan with all amendments
hereafter made.
	 
	 	(o)	 	“Plan Account” shall mean the bookkeeping account established by the
Corporation for each Plan Participant, which shall reflect the Employee’s Deferred
Bonus deferred to the Plan on a bookkeeping basis, with all earnings, dividends, gains,
and losses thereon. Plan Accounts shall not constitute separate Plan funds or separate
Plan assets. Neither the maintenance of, nor the crediting of amounts to such Plan
Accounts shall be treated (i) as the allocation of any Corporation assets to, or a
segregation of any Corporation assets in any such Plan Accounts, or (ii) as otherwise
creating a right in any person or Participant to receive specific assets of the
Corporation.
	 
	 	(p)	 	“Plan Year” shall mean the calendar year.
	 
	 	(q)	 	“Termination Under Limited Circumstances” shall mean the termination
(whether by the Participant or the Employer) of a Participant’s employment from his or
her Employer, and from all other Employers (i) under circumstances in which the
Participant is entitled to receive severance benefits or salary continuation benefits
under the KeyCorp Separation Pay Plan, (ii) under circumstances in which the
Participant is entitled to severance benefits or salary continuation or similar
benefits under a change of control agreement or employment agreement within two years
after a change of control (as defined by such agreement) has occurred, or (iii) as
otherwise expressly approved by an officer of the Corporation.
	 
	 	(s)	 	“Termination of Employment” shall mean the voluntary or involuntary
termination of the Participant’s employment from his or her Employer and from any other
Employer, but shall not include the Participant’s Termination Under Limited
Circumstances or termination as a result of Disability or death.

     2.2 Pronouns. The masculine pronoun wherever used herein includes the feminine in any
case so requiring, and the singular may include the plural.

ARTICLE III

ELIGIBILITY AND PARTICIPATION

     3.1 Eligibility and Participation. An Employee shall become a Plan Participant upon
the Employer’s mandatory deferral of the Employee’s Deferred Bonus.

ARTICLE IV

DEFERRED BONUS

     4.1 Crediting of the Deferred Bonus.  A Deferred Bonus shall be credited on a
bookkeeping basis to a Plan Account established in the Participant’s name as of the date on which
the

4

 

Deferred Bonus would have been payable to the Participant but for the Employer’s mandatory
deferral of such Deferred Bonus to the Plan (“Deferred Bonus Date”).

     4.2 Investment of Deferred Bonuses. All Deferred Bonuses shall be automatically
invested on a bookkeeping basis in the Plan’s Common Stock Account.

     4.3 Determination of Amount. The Plan Administrator shall verify the amount of the
Participant’s Deferred Bonus, with all dividends, gains and losses, if any, credited to each
Participant’s Plan Account in accordance with the provisions of the Plan. The reasonable and
equitable decision of the Plan Administrator as to the value of each Plan Account shall be
conclusive and binding upon the Participants and the Beneficiary of each deceased Participant
having any interest, direct or indirect in the Participant’s Plan Account. As soon as reasonably
practicable after the close of the Plan Year, the Corporation shall send each Participant an
itemized statement that shall reflect the Participant’s Plan Account balance.

     4.4 Corporate Assets. All Deferred Bonuses, dividends, earnings and any other gains
and losses credited to each Participant’s Plan Account on a bookkeeping basis, remain the assets
and property of the Corporation, which shall be subject to distribution to the Participant only in
accordance with Article VI of the Plan. Distributions made under the Plan shall be in the form of
Common Shares or as a bookkeeping plan-to-plan transfer to the KeyCorp Deferred Savings Plan as
provided for in Article VI hereof. Participants and Beneficiaries shall have the status of general
unsecured creditors of the Corporation. Nothing contained in the Plan shall create, or be
construed as creating a trust of any kind or any other fiduciary relationship between the
Participant, the Corporation, or any other person. It is the intention of the Corporation and it
is the understanding of the Participant that the Plan is an unfunded Plan.

     4.5 No Present Interest. Subject to any federal statute to the contrary, no right or
benefit under the Plan and no right or interest in each Participant’s Plan Account shall be subject
to anticipation, alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to
anticipate, alienate, sell, assign, pledge, encumber, or charge any right or benefit under the
Plan, or Participant’s Plan Account shall be void. No right, interest, or benefit under the Plan
or Participant’s Plan Account shall be liable for or subject to the debts, contracts, liabilities,
or torts of the Participant or Beneficiary, including domestic relations proceedings. If the
Participant or Beneficiary becomes bankrupt or attempts to alienate, sell, assign, pledge,
encumber, or charge any right under the Plan or Participant’s Plan Account, such attempt shall be
void and unenforceable.

ARTICLE V

VESTING

     5.1 Deferred Bonus Vesting. The calculation of a Participant’s vested interest in the
Deferred Bonus credited on a bookkeeping basis to the Participant’s Plan Account shall be measured
in whole calendar years. A Participant shall become vested in the Deferred Bonus allocated on a
bookkeeping basis to the Participant’s Plan Account with all earnings, gains, and losses thereon
after three full calendar years of service with his or her Employer following the Deferred Bonus
Date (as defined in Section 4.1(a)). Alternatively, at the Employer’s election, with such election
having been communicated to the Employee in writing prior to the Deferred Bonus Date, the Employee
shall become vested in his or her Deferred Bonus under the following three-year graded vesting
schedule (or such other multi-year vesting schedule as is expressly communicated in writing to the
Employee by the Employer prior to the Participant’s Deferred Bonus Date):

5

 

(a) One full calendar year from the Participant’s Deferred Bonus Date but less
than two full calendar years from such Deferred Bonus Date 33%.

(b) Two full calendar years from the Participant’s Deferred Bonus Date but less
than three full calendar years from such Deferred Bonus Date 66%.

(c) Three full calendar years from the Participant’s Deferred Bonus Date 100%.

Notwithstanding the foregoing provisions of this Section 5.1, however, a Participant shall become
fully vested in the Deferred Bonus credited on a bookkeeping basis to the Participant’s Plan
Account upon the Participant’s Termination Under Limited Circumstances, Disability or death.

     5.2 Forfeiture of the Participant’s Deferred Bonus. Notwithstanding any provision of
the Plan to the contrary, upon the Participant’s Termination of Employment, the not vested Deferred
Bonus credited on a bookkeeping basis to the Participant’s Plan Account with all earnings and gains
thereon shall be automatically forfeited as of the Participant’s last day of employment.

ARTICLE VI

DISTRIBUTION OF PLAN BENEFITS

     6.1 Distribution of the Participant’s Deferred Bonus. A Participant’s vested Deferred
Bonus with all earnings and gains thereon shall be distributed from the Plan concurrently with or
immediately following the Participant’s vesting in his or her Deferred Bonus (but in any event
within 90 days of the Participant’s vesting date) in accordance with the distribution directions
provided by the Participant in his or her Distribution Agreement, as follows:

	 	(a)	 	as a single lump sum distribution of Common Shares, or
	 
	 	(b)	 	as a plan-to-plan transfer of the Participant’s vested Deferred
Bonus to the KeyCorp Deferred Savings Plan, provided, that the Participant is
in a benefits designator 86 or above and is otherwise eligible to participate
in the KeyCorp Deferred Savings Plan. Such plan-to-plan transfer will be
subject to the subsequent election provisions of Section 409A of the Code and
will not be subject to distribution from the Deferred Savings Plan until the
subsequent election requirements of Section 409A of the Code have been met.

Subject to the withholding requirements of Section 6.5 hereof, distributions from the Plan shall be
made in Common Shares based on the bookkeeping number of whole and fractional Common Shares
attributable to the Participant’s vested Deferred Bonus maintained in the Plan’s Common Stock
Account as of the Determination Date. Participants’ Plan Account balances transferred to the
KeyCorp Deferred Savings Plan’s Common Stock Account will not be subject to investment
diversification and/or reallocation under the KeyCorp Deferred Savings Plan.

     6.2 Distributions Following Termination Under Limited Circumstances, Disability or
Death. Upon the Participant’s Termination Under Limited Circumstances, Disability, or death,
the Deferred Bonus credited to the Participant’s Plan Account with all earnings, gains, and losses
thereon shall become immediately vested and shall be distributed to the Participant or the
Participant’s

6

 

Beneficiary within 90 days thereafter in a single lump sum distribution of Common Shares, less
all applicable tax withholdings.

     6.3 Payment Limitation for Key Employees. Notwithstanding any other provision of the
Plan to the contrary, including without limitation, the provisions of Section 6.2 hereof, in the
event that the Participant constitutes a “specified employee” of the Corporation (as that term is
defined in accordance with Treasury Reg. Section 1.409A-1(i)) at the time of his or her “separation
from service”, then in such event the distributions of the Participant’s vested Deferred Bonus due
to the Participant’s separation from service shall not be made before the first day of the seventh
month following the Participant’s date of separation from service (or, if earlier, the date of
death of the Participant). To the extent an amount is deferred under this Section 6.3 until the
first business day of the seventh month following the Participant’s separation from service date,
then in such event, the payment to which the Participant would otherwise have been entitled to
during the first six months shall be paid to the Participant on the first business day of the
seventh month with all Plan earnings, gains and losses thereon. The term “separation from service”
shall be defined for Plan purposes in accordance with the requirements of Section 409A(c)(2)(A)(i)
of the Code and applicable regulations issued thereunder.

     6.4 Harmful Activity. If a Participant engages in any “Harmful Activity” prior to or
within twelve months after the Participant’s Termination of Employment with an Employer, then all
not vested Plan benefits shall be immediately forfeited, and any Plan distributions made to the
Participant within one year prior to the Participant’s Termination or Retirement date shall be
fully repaid by the Participant to the Corporation within 60 days following the Participant’s
receipt of the Corporation’s notice of such Harmful Activity.

     The foregoing restrictions shall not apply in the event that the Participant’s Termination of
Employment within two years after a Change of Control if any of the following have occurred: a
relocation of the Participant’s principal place of employment of more than 35 miles from the
Participant’s principal place of employment immediately prior to the Change of Control, a reduction
in the Participant’s base salary after a Change of Control, or Termination of Employment under
circumstances in which the Participant is entitled to severance benefits or salary continuation or
similar benefits under a change of control agreement, employment agreement, or severance or
separation pay plan.

     The determination by the Corporation as to whether a Participant has engaged in a “Harmful
Activity” prior to or within twelve months after the Participant’s termination of employment with
an Employer shall be final and conclusive upon the Participant and upon all other Persons.

     6.5 Withholding. The withholding of taxes with respect to any Deferred Bonus with all
earnings and gains thereon shall be made at such time as it becomes required by any state, federal
or local law; such taxes shall be withheld from the Deferred Bonus in accordance with applicable
law and shall be paid by reducing the number of Common Shares to be distributed to the Participant
based on such Common Shares’ market value as of the distribution date.

     6.6 Facility of Payment. If it is found that any individual to whom an amount is
payable hereunder is incapable of attending to his or her financial affairs because of any mental
or physical condition, including the infirmities of advanced age, such amount (unless prior claim
therefor shall have been made by a duly qualified guardian or other legal representative) may, in
the discretion of the Corporation, be paid to another person for the use or benefit of the
individual found incapable of attending to his or her financial affairs or in satisfaction of legal
obligations incurred by or on behalf of such individual. Any such payment shall be charged to the
Participant’s Plan Account from which any such payment would otherwise have been paid to the
individual found incapable of attending to his or her financial affairs, and shall be a complete
discharge of any liability therefor under the Plan.

7

 

ARTICLE VII

BENEFICIARY DESIGNATION

     7.1 Beneficiary Designation. Subject to Section 7.3 hereof, each Participant shall
have the right, at any time, to designate one or more persons or an entity as the Beneficiary (both
primary as well as secondary) to whom benefits under this Plan shall be paid in the event of
Participant’s death prior to complete distribution of the Participant’s vested Plan Account. Each
Beneficiary designation shall be in a written form prescribed by the Corporation and shall be
effective only when filed with the Corporation during the Participant’s lifetime.

     7.2 Changing Beneficiary. Any Beneficiary designation may be changed by the
Participant without the consent of the previously named Beneficiary by the Participant’s filing of
a new designation with the Corporation. The filing of a new designation shall cancel all
designations previously filed by the Participant.

     7.3 No Beneficiary Designation. If a Participant fails to designate a Beneficiary in
the manner provided above, if the designation is void, or if the Beneficiary (including all
contingent Beneficiaries) designated by a deceased Participant dies before the Participant, or if
the Beneficiary disclaims his or her interest in such benefit, the Participant’s Beneficiary shall
be the Participant’s estate.

ARTICLE VIII

ADMINISTRATION

     8.1 Administration. The Corporation, as the “Plan Administrator” shall be responsible
for the general administration of the Plan, for carrying out the provisions hereof, and for making
payments hereunder. The Corporation shall have the sole and absolute discretionary authority and
power to carry out the provisions of the Plan, including, but not limited to, the authority and
power (a) to determine all questions relating to the eligibility for and the amount of any benefit
to be paid under the Plan, (b) to determine all questions pertaining to claims for benefits and
procedures for claim review, (c) to resolve all other questions arising under the Plan, including
any questions of construction and/or interpretation, and (d) to take such further action as the
Corporation shall deem necessary or advisable in the administration of the Plan. All findings,
decisions, and determinations of any kind made by the Plan Administrator shall not be disturbed
unless the Plan Administrator has acted in an arbitrary and capricious manner. Subject to the
requirements of law, the Plan Administrator shall be the sole judge of the standard of proof
required in any claim for benefits and in any determination of eligibility for a benefit. All
decisions of the Plan Administrator shall be final and binding on all parties. The Corporation may
employ such attorneys, investment counsel, agents, and accountants as it may deem necessary or
advisable to assist it in carrying out its duties hereunder. The actions taken and the decisions
made by the Corporation hereunder shall be final and binding upon all interested parties subject,
however, to the provisions of Section 8.2. The Plan Year, for purposes of Plan administration,
shall be the calendar year.

     8.2 Claims Review Procedure. Whenever the Plan Administrator decides for whatever
reason to deny, whether in whole or in part, a claim for benefits under this Plan filed by any
person (herein referred to as the “Claimant”), the Plan Administrator shall transmit a written
notice of its decision to the Claimant, which notice shall be written in a manner calculated to be
understood by the Claimant

8

 

and shall contain a statement of the specific reasons for the denial of the claim and a statement
advising the Claimant that, within 60 days of the date on which he or she receives such notice, he
or she may obtain a review of the decision of the Plan Administrator in accordance with the
procedures hereinafter set forth. Within such 60-day period, the Claimant or his or her authorized
representative may request that the claim denial be reviewed by filing with the Plan Administrator
a written request therefor, which request shall contain the following information:

	 	(a)	 	the date on which the request was filed with the Plan Administrator; provided,
however, that the date on which the request for review was in fact filed with the Plan
Administrator shall control in the event that the date of the actual filing is later
than the date stated by the Claimant pursuant to this paragraph (a);
	 
	 	(b)	 	the specific portions of the denial of his or her claim which the Claimant
requests the Plan Administrator to review;
	 
	 	(c)	 	a statement by the Claimant setting forth the basis upon which he or she
believes the Plan Administrator should reverse its previous denial of the claim and
accept the claim as made; and
	 
	 	(d)	 	any written material which the Claimant desires the Plan Administrator to
examine in its consideration of his or her position as stated pursuant to paragraph (b)
above.

     In accordance with this Section 8.2, if the Claimant requests a review of the claim decision,
such review shall be made by the Plan Administrator, who shall, within sixty (60) days after
receipt of the request form, review and render a written decision on the claim containing the
specific reasons for the decision including reference to Plan provisions upon which the decision is
based. All findings, decisions, and determinations of any kind made by the Plan Administrator
shall not be modified unless the Plan Administrator has acted in an arbitrary and capricious
manner. Subject to the requirements of law, the Plan Administrator shall be the sole judge of the
standard of proof required in any claim for benefits, and any determination of eligibility for a
benefit. All decisions of the Plan Administrator shall be binding on the claimant and upon all
other persons or entities. If the Participant or Beneficiary shall not file written notice with
the Plan Administrator at the times set forth above, such individual shall have waived all benefits
under the Plan other than as already provided, if any, under the Plan.

ARTICLE IX

AMENDMENT AND TERMINATION OF PLAN

     9.1 Reservation of Rights. The Corporation reserves the right to terminate the Plan
at any time by action of the Board of Directors of the Corporation, or any duly authorized
committee thereof, and to modify or amend the Plan, in whole or in part, at any time and for any
reason, subject to the following:

	 	(a)	 	Preservation of Account Balance. No termination, amendment, or
modification of the Plan shall reduce (i) the amount of Deferred Bonuses, and (ii) all
earnings and gains on such Deferred Bonuses that have accrued up to the effective date
of the termination, amendment, or modification.
	 
	 	(b)	 	Changes in Earnings Rate. No amendment or modification of the Plan
shall reduce the rate of earnings to be credited on Deferred Bonuses with all earnings
and gains accrued

9

 

	 	 	 	thereon under the Common Stock Account until the close of the applicable Plan Year
in which such amendment or modification is made.

     9.2 Effect of Plan Termination. If the Corporation terminates the Plan, either in
whole or in part, the Plan Administrator shall not accept any additional Deferred Bonuses. If such
a termination occurs, the Plan shall continue to operate and to be effective with regard to those
Deferred Bonuses maintained in the Plan prior to the effective date of such termination.

ARTICLE X

CHANGE OF CONTROL

     10.1 Change of Control. Notwithstanding any other provision of the Plan to the
contrary, in the event of a Change of Control as defined in accordance with Section 2.1(c) of the
Plan, no amendment or modification of the Plan may be made at any time on or after such Change of
Control (1) to reduce or modify a Participant’s Pre-Change of Control Account Balance, or (2) to
reduce or modify the Common Stock Accounts’ method of calculating earnings, gains, and/or losses on
the Participant’s Pre-Change of Control Account Balance. For purposes of this Section 10.1, the
term “Pre-Change of Control Account Balance” shall mean, with regard to any Plan Participant, the
aggregate undistributed amount of the Participant’s Deferred Bonus with all earnings, gains, and
losses thereon which are credited to the Participant’s Plan Account through the close of the
calendar year in which such Change of Control occurs.

     10.2 Common Stock Conversion. In the event of a transaction or occurrence in which
the Common Shares of the Corporation are converted into or exchanged for securities, cash and/or
other property as a result of any capital reorganization or reclassification of the capital stock
of the Corporation, or consolidation or merger of the Corporation with or into another corporation
or entity, or the sale of all or substantially all of its assets to another corporation or entity,
the Corporation shall cause the Common Stock Account to reflect on a bookkeeping basis the
securities, cash and other property that would have been received in such reorganization,
reclassification, consolidation, merger or sale in an equivalent amount of Common Shares equal to
the balance in the Common Stock Account and, from and after such reorganization, reclassification,
consolidation, merger or sale, the Common Stock Account shall reflect on a bookkeeping basis all
dividends, interest, earnings and losses attributable to such securities, cash, and other property.

     10.3 Amendment in the Event of a Change of Control. On and after a Change of Control,
the provisions of Article II, Article IV, Article V, Article VI, Article VII, Article VIII,
Article IX, and this Article X, may not be amended or modified as such Sections and Articles apply
with regard to the Participants’ Pre-Change of Control Account Balances.

ARTICLE XI

MISCELLANEOUS PROVISIONS

     11.1 Unfunded Plan. This Plan is an unfunded plan maintained primarily to provide
deferred compensation benefits for a select group of “management or highly-compensated employees.”

10

 

     11.2 No Commitment as to Employment. Nothing herein contained shall be construed as a
commitment or agreement upon the part of any Employee hereunder to continue his or her employment
with an Employer, and nothing herein contained shall be construed as a commitment on the part of
any Employer to continue the employment, rate of compensation, or terms and conditions of
employment of any Employee hereunder for any period. All Participants shall remain subject to
discharge to the same extent as if the Plan had never been put into effect.

     11.3 Benefits. Nothing in the Plan shall be construed to confer any right or claim
upon any person, firm, or corporation other than the Participants, former Participants, and
Beneficiaries.

     11.4 Absence of Liability. No member of the Board of Directors of the Corporation or
a subsidiary or committee authorized by the Board of Directors, or any officer of the Corporation
or a subsidiary or officer of a subsidiary shall be liable for any act or action hereunder, whether
of commission or omission, taken by any other member, or by any officer, agent, or Employee, except
in circumstances involving bad faith or willful misconduct, for anything done or omitted to be
done.

     11.5 Expenses. The expenses of administration of the Plan shall be paid by the
Corporation.

     11.6 Precedent. Except as otherwise specifically agreed to by the Corporation in
writing, no action taken in accordance with the Plan by the Corporation shall be construed or
relied upon as a precedent for similar action under similar circumstances.

     11.7 Withholding. The Corporation shall withhold any tax that the Corporation in its
discretion deems necessary to be withheld from any payment to any Participant, former Participant,
or Beneficiary hereunder, by reason of any present or future law.

     11.8 Validity of Plan. The validity of the Plan shall be determined and the Plan
shall be construed and interpreted in accordance with the laws of the State of Ohio. The
invalidity or illegality of any provision of the Plan shall not affect the validity or legality of
any other part thereof.

     11.9 Parties Bound. The Plan shall be binding upon the Employers, Participants,
former Participants, and Beneficiaries hereunder, and, as the case may be, the heirs, executors,
administrators, successors, and assigns of each of them.

     11.10 Headings. All headings used in the Plan are for convenience of reference only
and are not part of the substance of the Plan.

     11.11 Duty to Furnish Information. The Corporation shall furnish to each Participant,
former Participant, or Beneficiary any documents, reports, returns, statements, or other
information that it reasonably deems necessary to perform its duties imposed hereunder or otherwise
imposed by law.

     11.12 Validity. In case any provision of this Plan shall be held illegal or invalid
for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal and invalid provision had never been
inserted herein.

     11.13 Notice. Any notice required or permitted under the Plan shall be deemed
sufficiently provided if such notice is in writing and hand delivered or sent by registered or
certified mail. Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark or on the receipt for registration or
certification. Mailed notice to the Corporation shall be directed to the Corporation’s address,
attention: KeyCorp Compensation and Benefits

11

 

Department. Mailed notice to a Participant or Beneficiary shall be directed to the individual’s
last known address in the Employer’s records.

     11.14 Successors. The provisions of this Plan shall bind and inure to the benefit of
each Employer and its successors and assigns. The term successors as used herein shall include any
corporate or other business entity, which shall, whether by merger, consolidation, purchase or
otherwise, acquire all or substantially all of the business and assets of an Employer.

ARTICLE XII

COMPLIANCE WITH
SECTION 409A OF THE CODE

     12.1 Compliance With Section 409A. The Plan is intended to provide for the deferral
of compensation in accordance with the provisions of Section 409A of the Code and regulations and
published guidance issued pursuant thereto. Accordingly, the Plan shall be construed in a manner
consistent with those provisions and may at any time be amended in the manner and to the extent
determined necessary or desirable by the Corporation to reflect or otherwise facilitate compliance
with such provisions with respect to amounts deferred on and after January 1, 2005.
Notwithstanding any provision of the Plan to the contrary, no otherwise permissible election,
deferral, accrual, or distribution shall be made or given effect under the Plan that would result
in a violation, early taxation, or assessment of penalties or interest of any amount under Section
409A of the Code.

ARTICLE XIII
SPECIAL CASH AWARD

     13.1 Special Cash Recognition Award .  In conjunction with certain resolutions
authorized by the Board dated October 31, 2008, the special cash recognition award (“Special
Award”) granted to certain selected Employees of KeyCorp and its affiliates shall be deferred under
the Plan. Such Special Award shall be allocated to a bookkeeping account established in the
Employee’s name, and contrary to Article IV, shall not be invested in the Plan’s Common Stock
Account and shall not accrue any earnings, gains or losses while maintained in the Plan.

     13.2 Special Cash Award Vesting Schedule. Notwithstanding any other Plan provision
to the contrary, Participants shall become vested in their Special Awards in accordance with the
following vesting schedule:

(a) Upon the Participant’s completion of two full years of vesting
service  . . . . . 50% 

(b) Upon the Participant’s completion of three full years of vesting
service  . . . . . 100%

     For purposes of this Section 13.2 hereof, vesting service shall be measured in consecutive 12-month
increments. Vesting service shall commence as of the date that the Special Award is credited to
the Participant’s Plan Account.

     13.3 Distribution of the Special Award. The Participant’s Special Award, when
vested, shall be immediately distributed in a lump sum cash payment to the Participant. The
Participant’s Special Award shall not be subject to the Plan-to-Plan transfer provisions of
Section 6.1 of the Plan.

12

 

     13.4 Distribution Upon a Participant’s Termination Under Limited Circumstances,
Disability, or Death. Subject to the requirements of Article VI, Section 6.3 through Section
6.7 hereof, upon a Participant’s Termination Under Limited Circumstances, Disability or death, as
those terms are defined in accordance with Section 2.1(q), and Section 2.1(g) of the Plan, the
Special Award credited to the Participant’s Plan Account shall become immediately vested and
distributed to the Participant or to the Participant’s Beneficiary in a lump sum cash payment.

     13.5 Withholding. The withholding of taxes with respect to the Participant’s
Special Award shall be made at such time as it becomes required by any state, federal or local law;
such taxes shall be withheld from the Participant’s Special Award to the maximum extent possible in
accordance with applicable law.

     13.6 Forfeiture of the Participant’s Special Award. If the Participant terminates
his or her employment prior to fully vesting in his or her Special Award, the unvested Special
Award shall be immediately forfeited as of the Participant’s last day of employment.

     IN WITNESS WHEREOF, KeyCorp has caused this KeyCorp Deferred Bonus Plan to be executed this
29th day of December, 2008, to be effective as of December 31, 2008.

	 	 	 	 	 	 	 
	 	 	KEYCORP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steven N. Bulloch	 	 
	 

	 	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 
	 	Title:	 	Assistant Secretary
 
	 	 

13

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