Document:

Exhibit 10.7

 

DEERE & COMPANY

 

VOLUNTARY DEFERRED COMPENSATION PLAN

 

 

Adopted 28 August 1985

Amended 11 December 1986

Amended 26 May 1993 – Effective 1 July 1993

Amended 7 December 1994 – Effective 1 January 1995

Amended 4 December 1996 – Effective 1 January 1997

Amended 26 August 1998

Amended by Supplement 30 August 2006

Amended and Restated 13 December 2007 – Effective 1 January 2008

 

 

(For
special rules applicable to deferrals after 2004

see the
supplement beginning on page 9)

 

 

	
  TABLE OF CONTENTS

  	
   

  
	
   

  	
   

  
	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1.   ESTABLISHMENT AND PURPOSE

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1 

  	
  Establishment

  	
  1

  
	
  1.2 

  	
  Purpose

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2.   DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  2.1

  	
  Definitions

  	
  1

  
	
  2.2

  	
  Gender and Number

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 3.   ELIGIBILITY FOR PARTICIPATION

  	
   

  
	
   

  	
   

  
	
  3.1

  	
  Eligibility

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 4.   ELECTION TO DEFER

  	
   

  
	
   

  	
   

  
	
  4.1

  	
  Deferral Amount

  	
  2

  
	
  4.2

  	
  Deferral Period and Payment Method

  	
  3

  
	
  4.3

  	
  Irrevocable Elections

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 5.   DEFERRED ACCOUNTS

  	
   

  
	
   

  	
   

  
	
  5.1

  	
  Participant Accounts

  	
  4

  
	
  5.2

  	
  Growth Additions

  	
  4

  
	
  5.3

  	
  Effect on other Company Benefits

  	
  4

  
	
  5.4

  	
  Charges Against Accounts

  	
  4

  
	
  5.5

  	
  Contractual Obligation

  	
  4

  
	
  5.6

  	
  Unsecured Interest

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 6.   PAYMENT OF DEFERRED AMOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Payment of Deferred Amounts

  	
  5

  
	
  6.2

  	
  Financial Hardship

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 7.   BENEFICIARY

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Beneficiary

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 8.   RIGHTS OF EMPLOYEES,
  PARTICIPANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Employment

  	
  6

  
	
  8.2

  	
  Nontransferability

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 9.   ADMINISTRATION

  	
   

  

 

 

1

 

 

 

 

	
  TABLE OF CONTENTS

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Administration

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 10.   AMENDMENT, MODIFICATION AND
  TERMINATION OF THE PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Amendment, Modification and Termination of the Plan

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 11.   MERGER OR CONSOLIDATION

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Merger or Consolidation

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 12.   REQUIREMENTS OF LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Requirements of Law

  	
  7

  
	
  12.2

  	
  Governing Law

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 13.   WITHHOLDING TAXES

  	
   

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Withholding Taxes

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 14.   EFFECTIVE DATE OF THE PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  Effective Date

  	
  8

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENT
  APPLICABLE TO DEFERRALS AFTER 2004 

  	
  13

  

 

2

 

DEERE & COMPANY

 

VOLUNTARY DEFERRED COMPENSATION PLAN

 

Section 1.  Establishment
and Purpose

 

1.1           Establishment.  Deere & Company, a Delaware
corporation, hereby establishes effective as of November 1, 1985, a
deferred compensation plan for executives as described herein, which shall be
known as the DEERE & COMPANY VOLUNTARY DEFERRED COMPENSATION PLAN
(hereinafter called the “Plan”).

 

1.2           Purpose.  The purpose of this Plan is to provide a
means whereby cash incentive awards, including performance bonus, cash bonus
and profit sharing awards, or any other compensation determined by the
Committee to be subject hereto, and base salary payable by the Company to key
personnel may be deferred for a specified period.

 

Section 2.  Definitions

 

2.1           Definitions.  Whenever used hereinafter, the following
terms shall have the meaning set forth below:

 

(a)           “Board” means the Board
of Directors of the Company.

 

(b)           “Committee” means the
Board Committee on Compensation of the Board.

 

(c)           “Company” means DEERE &
COMPANY, a Delaware corporation.

 

(d)           “Employee” means a
regular salaried key employee (including officers and directors who are also
employees) of the Company or its Subsidiaries, or any branch or division
thereof.

 

(e)           “Participant” means an
Employee designated by the Committee to participate in this Plan.

 

(f)            “Subsidiary” means any
corporation, a majority of the total combined voting power of all classes of
stock of which is directly or indirectly owned by the Company.

 

1

 

(g)           “Fiscal Year” means the
12-month period beginning November 1 and ending October 31.

 

2.2           Gender
and Number.  Except when otherwise
indicated by the context, any masculine terminology when used in the Plan shall
also include the feminine gender, and the definition of any term herein in the
singular shall also include the plural.

 

Section 3.  Eligibility
for Participation

 

3.1           Eligibility.  Participation in the Plan shall be limited to
those Employees of the Company or any Subsidiary who are key to the Company’s growth
and success and who are designated as Participants by the Committee.  In the event an Employee no longer meets the
requirements for Participation in this Plan, he shall become an inactive
Participant, retaining all the rights described under this Plan, except the
right to make any further deferrals, until the time that he again becomes an
active Participant.

 

Section 4.  Election
to Defer

 

4.1           Deferral
Amount.

 

(a)           Any Participant may
elect to defer any part (in 5% increments up to 95%) of an award to be paid
under the provisions of the John Deere Performance Bonus Plan.  Such election must be made in writing prior
to the beginning of the Fiscal Year upon which the award is based.  Notwithstanding the Participant’s election,
enough of the award must be paid in cash to cover all withholding taxes.  If not, the Company shall be authorized to
reduce the Participant’s elected deferral in 5% increments until the
withholding taxes are covered.

 

(b)           Any Participant may
elect to defer any part (in 5% increments up to 95%) of base salary.  Such election must be made in writing prior
to the beginning of the calendar quarter in which the deferrals are to commence
and shall remain in effect for all remaining calendar quarters of the calendar
year.  The deferral percent may be
increased in subsequent calendar quarters, but may not be decreased.  Notwithstanding the Participant’s election,
enough salary must be paid in cash to cover all withholding taxes and
Participant payroll elections, such as health care premiums, Deere PAC, United
Way, Optional Life Insurance, etc.  If
not, the Company shall be authorized to reduce the Participant’s elected
deferral in 5% increments until the withholding taxes and the Participant’s
payroll elections are covered, and the reduced deferral percent shall remain in
effect until the beginning of the next calendar quarter, at which 

 

2

 

time it shall revert to the Participant’s
stated deferral percent subject to the same reduction potential.

 

Notwithstanding amounts elected by the Participant for
deferral from the John Deere Performance Bonus Plan award, the total deferred
portion shall not be less than $1,000 in any given calendar year.  In the event the total deferred amount is
less than $1,000, it shall be paid pursuant to the normal payout schedule for
the John Deere Performance Bonus Plan.

 

Amounts of less than $1,000 per calendar quarter shall
not be deferred from salary.

 

(c)           Any Participant may
elect to defer any part (in 5% increments up to 95%) of a Bonus Award to be
paid in cash under the provisions of the John Deere Equity Incentive Plan and
any other cash incentive award that is authorized by the Committee to be
deferred pursuant hereto.  Such election
must be in writing prior to the beginning of the calendar year in which such
award would otherwise become payable. 
Notwithstanding the Participant’s election, enough of the award must be
paid in cash to cover all withholding taxes. 
If not, the Company shall be authorized to reduce the Participant’s
elected deferral in 5% increments until the withholding taxes are covered.

 

4.2           Deferral
Period and Payment Method.  If the
Participant defers any amount pursuant to Section 4.1, the Participant
shall also designate the period and payment method for the deferral in the
election.  Payments of the deferral
amounts, plus any growth additions thereon, shall be made on the date or dates
specified by the Participant in the election. 
However, if death, total and permanent disability, or termination (other
than retirement) occurs before retirement, all remaining deferrals plus any
growth additions, shall be distributed as a single lump sum payment in January of
the calendar year following the date of such death, disability or termination.

 

In
all other cases, the distribution must begin on a date specified by the
Participant in the election (whether the distribution is scheduled to begin
before or after the date of retirement) but no later than ten years following
the date of retirement.  The Participant
may elect to have distribution made in up to ten annual installments from the
date distribution is to begin, but such distribution must be completed within
ten years following retirement.

 

If
the Participant wishes to designate a distribution after retirement, the
Participant may designate in the election that distribution shall begin at
retirement or begin at a specified point in time, or during a specified month,
following the date of retirement, (Example #1: 
Distribution to begin three months after retirement.  Example #2: 
Distribution to begin the January of the year following
retirement.)

 

3

 

4.3           Irrevocable
Elections.  The elections in Sections
4.1 and 4.2 are irrevocable and may not be modified or terminated by the
Participant or his beneficiary.

 

Section 5.  Deferred
Accounts

 

5.1           Participant
Accounts.  The Company shall
establish and maintain a bookkeeping account for each Participant, to be
credited as of the date the cash incentive award or salary is actually
deferred.  While the John Deere
Performance Bonus Plan or John Deere Equity Incentive Plan deferral will be
credited to the Participant’s account when deferred as stated above, it will
not begin earning growth additions, under Section 5.2, until the first day
of the succeeding calendar quarter following the date of deferral.

 

5.2           Growth
Additions.  Each Participant’s
account shall be credited on the first day of each calendar quarter with a
growth addition computed on the balance in the account as of the last day of
the immediately preceding quarter.  The
growth addition shall be equal to said account balance multiplied by a growth
increment. The method for determining the growth increment shall be determined
from time to time by the Committee.  The
method of determining the growth increment, as stated on the election form,
that is in effect on the first date a growth addition is added to a Participant’s
account will remain in effect for that deferral until that entire deferral, and
growth additions attributable to it, have been distributed for a given
deferral.

 

5.3           Effect
on other Company Benefits. Salary, cash incentive awards or bonus deferred
pursuant to Section 4.1 of this Plan shall not decrease in any way
benefits provided under any other Company sponsored benefit plan.  In the event deferrals under this Plan
decrease benefits payable under any qualified retirement plan or limit
deferrals under any qualified defined contribution plan, such decrease or limit
shall be restored by immediate participation in the John Deere Supplementary
Pension Plan or the Defined Contribution Restoration Plan.

 

5.4           Charges
Against Accounts.  There shall be
charged against each Participant’s account any payments made to the Participant
or to his beneficiary in accordance with Section 6 hereof.

 

5.5           Contractual
Obligation.  It is intended that the
Company is under a contractual obligation to make payments from a Participant’s
account when due.  Account balances shall
not be financed through a trust fund or insurance contracts or otherwise unless
owned by the Company.  Payment of account
balances shall be made out of the general funds of the Company.

 

5.6           Unsecured
Interest.  No Participant or
beneficiary shall have any interest whatsoever in any specific asset of the
Company.  To the extent that any person 

4

 

acquires a right to
receive payments under this Plan, such right shall be no greater than the right
of any unsecured general creditor of the Company.

 

Section 6.  Payment
of Deferred Amounts

 

6.1           Payment
of Deferred Amounts.  Payment of a
Participant’s deferred salary, or cash incentive award plus accumulated growth
additions attributable thereto, shall be paid in a lump sum or in approximately
equal annual installments, in the manner elected by the Participant under
Sections 4.1 and 4.2 of this Plan.

 

6.2           Financial
Hardship.  The Committee, at its sole
discretion, may alter the timing or manner of payment of deferred amounts in
the event that the Participant establishes, to the satisfaction of the Board,
severe financial hardship.  In such
event, the Committee may:

 

(a)           provide that all or a
portion of the amount previously deferred by the Participant shall be paid
immediately in a lump sum cash payment,

 

(b)           provide that all or a
portion of the installments payable over a period of time shall be paid
immediately in a lump sum, or

 

(c)           provide for such other
installment payment schedules as it deems appropriate under the circumstances,

 

as
long as the amount distributed shall not be in excess of that amount which is
necessary for the Participant to meet the financial hardship.

 

Severe
financial hardship will be deemed to have occurred in the event of the
Participant’s impending bankruptcy, a dependent’s long and serious illness,
other events of similar magnitude or the invalidation of a deferral election by
the Internal Revenue Service.  The
Committee’s decision in passing on the severe financial hardship of the
Participant and the manner in which, if at all, the payment of deferred amounts
shall be altered or modified shall be final, conclusive and not subject to
appeal.

 

Section 7.  Beneficiary

 

7.1           Beneficiary.  A Participant may designate a beneficiary or
beneficiaries who, upon his death, are to receive the distributions that
otherwise would have been paid to him. 
All designations shall be in writing and shall be effective only if and
when delivered to the Secretary of the Company during the lifetime of the
Participant.  If a Participant designates
a beneficiary without providing in the designation that the beneficiary must be
living at the time of such distribution, the designation shall vest in the
beneficiary all of the distributions whether payable

 

5

 

before or after the
beneficiary’s death, and any distributions remaining upon the beneficiary’s
death shall be made to the beneficiary’s estate.

 

A
Participant may from time to time during his lifetime change his beneficiary or
beneficiaries by a written instrument delivered to the Secretary of the
Company.  In the event a Participant
shall not designate a beneficiary or beneficiaries pursuant to this Section, or
if for any reason such designation shall be ineffective, in whole or in part,
the distribution that otherwise would have been paid to such Participant shall
be paid to his estate and in such event, the term “beneficiary” shall include
his estate.

 

Section 8.  Rights
of Employees, Participants

 

8.1           Employment.  Nothing in this Plan shall interfere with or
limit in any way the right of the Company or any of its Subsidiaries to
terminate any Employee’s or Participant’s employment at any time, nor confer
upon any Employee or Participant any right to continue in the employ of the
Company or any of its Subsidiaries.

 

8.2           Nontransferability.  No right or interest of any Participant in
this Plan shall be assignable or transferable, or subject to any lien,
directly, by operation of law, or otherwise, including execution, levy,
garnishment, attachment, pledge and bankruptcy. 
In the event of a Participant’s death, payment of any amounts due under
this Plan shall be made to the Participant’s designated beneficiary, or in the
absence of such designation, to the Participant’s estate.

 

Section 9.  Administration

 

9.1           Administration.  The Committee shall be responsible for the
administration of the Plan.  The
Committee is authorized to interpret the Plan, to prescribe, amend, and rescind
rules and regulations relating to the Plan, provide for conditions and
assurances deemed necessary or advisable to protect the interest of the
Company, and to make all other determinations necessary or advisable for the
administration of the Plan, but only to the extent not contrary to the express
provisions of the Plan.  The Committee
shall determine, within the limits of the express provisions of the Plan, the
Employees to whom, and the time or times at which, participation shall be
extended, and the amount which may be deferred. 
In making such determinations, the Committee may take into account the
nature of the services rendered by such Employees or classes of Employees,
their present and potential contributions to the Company’s or its Subsidiaries’
success and such other factors as the Committee in its discretion shall deem
relevant.  The determination of the
Committee, interpretation or other action made or taken pursuant to the
provisions of the Plan, shall be final and shall be binding and conclusive for
all purposes and upon all persons.

 

6

 

Section 10.  Amendment,
Modification and Termination of the Plan

 

10.1         Amendment,
Modification and Termination of the Plan. 
The Committee, at any time may terminate, and at any time and from time
to time and in any respect, may amend or modify the Plan, provided, however,
that no such action of the Committee, without approval of the Participant, may
adversely affect in any way any amounts already deferred pursuant to Section 4.1
of this Plan.

 

Section 11.  Merger
or Consolidation

 

11.1         Merger
or Consolidation.  If the Company
shall be involved in a dissolution, liquidation, merger, or consolidation in
which the Company and its Subsidiaries are not the surviving corporation, the
Committee may:

 

(a)           terminate the Plan, and
all amounts deferred, plus interest additions shall become immediately payable
in full, not withstanding any other provisions to the contrary, or

 

(b)           permit the Plan to
continue, making any necessary adjustments or modifications to reflect any
impact of the dissolution, liquidation, merger, or consolidation, as determined
by the Committee.

 

Amounts
calculated under either (a) or (b) above shall be paid in full as
soon as practicable following any termination of the Plan.

 

Section 12.  Requirements
of Law

 

12.1         Requirements
of Law.  The payment of cash pursuant
to this Plan shall be subject to all applicable laws, rules, and regulations,
and shall not be made except upon approval of proper government agencies as may
be required.

 

12.2         Governing
Law.  The Plan, and all agreements
hereunder, shall be construed in accordance with and governed by the laws of
the State of Illinois.

 

Section 13.  Withholding
Taxes

 

13.1         Withholding
Taxes.  The Company shall have the
right to deduct from all payments under this Plan an amount necessary to
satisfy any Federal, state, or local withholding tax requirements.

 

7

 

Section 14.  Effective
Date of the Plan

 

14.1         Effective
Date.  The Plan shall become
effective as of November 1, 1985.

 

8

 

SUPPLEMENT TO

DEERE & COMPANY

VOLUNTARY DEFERRED COMPENSATION PLAN

APPLICABLE TO AMOUNTS DEFERRED AFTER DECEMBER 31, 2004

 

The
following provisions will apply only to amounts deferred under the Plan after December 31,
2004 and not to amounts deferred under the Plan that were both earned and
vested before January 1, 2005. Amounts deferred under the Plan prior to January 1,
2005 will be subject to the terms of the Plan without regard to this
supplement. Except to the extent amended hereby, the terms of the Plan shall
continue to apply to amounts deferred pursuant to the Plan.

 

1.             The
following definitions are added to Section 2
(Definitions).

 

2.1(b)     “Change in
Control Event” means a change in ownership, a change in effective control, or a
change in the ownership of a substantial portion of the assets of the Company
within the meaning of the default rules under Section 409A.

 

2.1(e)     “Disability”
means a participant is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months or is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than 3 months
under a disability or an accident and health plan covering employees of the
Company.

 

2.1(i)      “Retirement”
means a Separation from Service by a Participant who is then eligible for a
normal retirement benefit or an early retirement benefit within the meaning of
the terms of the John Deere Pension Plan for Salaried
Employees in effect as of 1 January 2007.

 

2.1(j)      “Section 409A”
means Section 409A of the Internal Revenue Code and the regulations and
other guidance thereunder.

 

2.1(k)     “Section 409A
Compliance” shall have the meaning ascribed to such term in Section 8.3.

 

2.1(l)      “Separation
from Service” means, with respect to a Participant, a separation from service
within the meaning of the default rules of Section 409A; provided
that for purposes of determining which entities are treated as a single “service
recipient” with the Company, the phrase “at least 20 percent” shall be
substituted for the phrase “at least 80 percent” each place it appears in
Sections 1563(a)(1), (2) and (3) of the Code and Section 1.414(c)-2
of the 

 

9

 

Treasury Regulations, as
permitted under Section 1.409A-1(h)(3) of the Treasury Regulations

 

2.1(n)     “Unforeseeable
Emergency” means a severe financial hardship to the Participant resulting from (i) an
illness or accident of the Participant or his spouse, dependent (within the
meaning of Section 152 of the Code, but without giving effect to Section 152(b)(1),
(b)(2) and (d)(1)(B) (“Dependent”)) or beneficiary, (ii) the
loss of the Participant’s property due to casualty (including the need to rebuild
a home following damage to a home not otherwise covered by insurance, for
example, not as a result of a natural disaster), (iii) the imminent
foreclosure of or eviction from the Participant’s primary residence, (iv) the
need to pay for medical expenses, including non-refundable deductibles, as well
as for the costs of prescription drug medication, (v) the need to pay for
the funeral expenses of a spouse, Dependent or beneficiary, or (vi) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant. 
The purchase of a primary residence and the payment of college tuition
shall not constitute Unforeseeable Emergencies.

 

2.            Subsections 2.1(b) and
(c) are renumbered as 2.1(c) and (d), respectively.

 

3.            Subsection 2.1(d) is
renumbered as 2.1(f).

 

4.            Subsection 2.1(e) is
renumbered as 2.1(h).

 

5.            Subsection 2.1(f) is
renumbered as 2.1(m).

 

6.            Section 4 (Election
to Defer) is restated in its entirety as follows:

 

4.1           Deferral
Amount

 

(a)           Any Participant
may elect to defer any part (in 5% increments up to 95%) of an award to be paid
under the provisions of the John Deere Short-Term Incentive Bonus Plan.  Such election must be made in writing prior
to the beginning of the Fiscal Year upon which the award is based.  Notwithstanding the Participant’s election,
enough of the award must be paid in cash to cover all withholding taxes.  If not, the Company shall be authorized to
reduce the Participant’s elected deferral in such amount as is necessary to satisfy
all applicable withholding taxes.

 

(b)           Any
Participant may elect to defer any part (in 5% increments up to 70%) of base
salary. Such election must be made in writing prior to the beginning of the
calendar year in which the deferrals are to commence and shall remain in effect
for the remainder of the calendar year. Notwithstanding the Participant’s
election, enough salary must be paid in cash to cover all withholding taxes. If
not, the Company shall be authorized to reduce the Participant’s elected 

 

10

 

deferral in such amount
as is necessary to satisfy all applicable withholding taxes, and the reduced
deferral percent shall remain in effect until the beginning of the next pay
period, at which time it shall revert to the Participant’s stated deferral
percent subject to the same reduction potential.

 

(c)           Any
Participant may elect to defer any part (in 5% increments up to 95%) of any
other cash incentive award that is authorized by the Committee to be deferred
pursuant hereto.  Such election must be
in writing (i) in the case of non-performance-based compensation or
compensation for services performed for less than 12 months, not later than the
close of the Participant’s taxable year preceding the taxable year in which
services related to the award are performed; or (ii) in the case of
performance-based compensation (as determined by the Committee pursuant to Section 409A)
based on services performed over a period of at least 12 months, prior to the
close of the Fiscal Year immediately preceding the calendar year of payment but
in no event later than 6 months before the end of the performance period.  Notwithstanding the Participant’s election,
enough of the award must be paid in cash to cover all withholding taxes.  If not, the Company shall be authorized to
reduce the Participant’s elected deferral in such amount as is necessary to
satisfy all applicable withholding taxes.

 

4.2           Deferral
Period and Payment Method. 
If the Participant defers any amount pursuant to Section 4.1, the
Participant shall also designate the period and payment method for the deferral
in the election.  The Participant may
elect to have distribution made in a lump sum or in up to ten annual
installments, provided that the payments must in either case be completed
within ten years following the year of Retirement.  Payments of the deferral amounts, plus any
growth additions thereon, shall commence on the first business day of the
calendar quarter specified by the Participant in the election; provided,
however, that if the Participant elects for the distribution to begin after
Retirement, payment of the deferral amounts, plus any growth additions thereon,
shall commence on the first business day of the third or later calendar quarter
(as elected by the Participant) following the calendar quarter of Retirement.

 

Notwithstanding the
Participant’s deferral election, if death, Disability or Separation from
Service occurs before Retirement, all remaining deferrals plus any growth
additions, shall be distributed as a single lump sum payment in January of
the calendar year following the date of such death,  Disability or Separation from Service.  Additionally, no distribution upon Separation
from Service (including upon Retirement or other termination but excluding upon
Disability or death)  may be made before
the first business day of the first calendar quarter that begins at least six (6) months
after such Participant’s date of Separation from Service, or, if earlier, the
date of the 

 

11

 

Participant’s death, and
any distribution that would be made but for application of this provision shall
instead be aggregated with, and paid together with, the first distribution
scheduled to be made after the end of such six-month period (or, if earlier,
the date of the Participant’s death).

 

4.3           Irrevocable
Elections.  The elections in
Sections 4.1 and 4.2 shall become irrevocable on the day prior to the beginning
of the Fiscal Year or calendar year, as applicable, and may not be modified or
terminated thereafter by the Participant or his beneficiary.

 

7.             Subsection 5.1  (Deferred Accounts - Participant Accounts) is
amended by changing the phrase “John Deere Equity Incentive Plan” to “John
Deere Mid-Term Incentive Bonus Plan”.

 

8.             Subsection 6.2 (Payment of Deferred Amounts
- Unforeseeable Emergency) is restated in its entirety as follows:

 

6.2           Unforeseeable
Emergency.  The Committee, at
its sole discretion, may alter the timing or manner of payment of deferred
amounts in the event that the Participant establishes, to the satisfaction of
the Committee, the occurrence of an Unforeseeable Emergency.  In such event, the Committee may:

 

(a)           provide that
all or a portion of the amount previously deferred by the Participant shall be
paid immediately in a lump sum cash payment, or

 

(b)           provide that
all or a portion of the installments payable over a period of time shall be
paid immediately in a lump sum,

 

as long as, as determined under regulations of the
Secretary of the United States Treasury, the amount distributed shall not be in
excess of that amount which is reasonably necessary to satisfy the
Unforeseeable Emergency (which may include amounts necessary to pay taxes
reasonably anticipated as a result of such distribution(s)), after taking into
account the extent to which such hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise, or by liquidation of
the Participant’s assets to the extent liquidation of such assets would not
cause severe financial hardship, or by cessation of deferrals under the Plan
and any other plan that would be aggregated with the Plan for purposes of Section 409A.  If a Participant requests and receives a
distribution on account of Unforeseeable Emergency, the Participant’s deferrals
under the Plan shall cease and his elections under the Plan shall be
canceled.  Any new deferral election
following cancellation of a prior deferral election due to Unforeseeable
Emergency shall be subject to the timing requirements of Sections 4.1 and
4.2  and Section 409A.

 

The Committee’s decision in passing on the occurrence
of an Unforeseeable Emergency for the Participant and the manner in which, if
at all, the payment of deferred amounts shall be altered or modified shall be final,
conclusive 

 

12

 

and not subject to appeal.

 

9.             Subsection 8.3 (Rights of Employees, Participants
- No Acceleration of Distributions) is added as follows:

 

8.3           No
Acceleration of Distributions. Notwithstanding anything to the
contrary herein, this Plan does not permit the acceleration of the time or
schedule of any distribution under the Plan, except as would not result in the
imposition on any person of additional taxes, penalties or interest under Section 409A.

 

10.           Section 10.1 (Amendment, Modification and Termination of the
Plan) is amended by adding thereto:

 

“If the Plan is terminated, the Participant’s
account shall be paid in accordance with time and form of payment otherwise
specified hereunder, provided that the Board of Directors or the Committee, in
its discretion and in full and complete settlement of the Company’s obligations
under this Plan, may cause the Company to distribute the full amount of a
Participant’s account to the Participant in a single lump sum to the extent
that such distribution may be effected in a manner that will not result
in the imposition on any person of additional taxes, penalties or interest
under Section 409A.”

 

In addition, there is added immediately following Section 10.1 a
new Section 10.2 (Section 409A Amendments)
as follows:

 

“10.2       Section 409A Amendments.  Notwithstanding any provision in this Plan to
the contrary the Board, the Committee or the Vice President of Human Resources
of the Company shall have the unilateral right to amend or
modify the Plan to the extent the Board, the Committee or the Vice President of
Human Resources of the Company deems such action to be necessary or advisable
to avoid the imposition on any person of adverse or unintended tax consequences
under Section 409A, including recognition of income in respect of any
benefits under this Plan before such benefits are paid or the imposition of
additional taxes, penalties or interest. 
Any determinations made by the Board, the Committee, or the Vice
President of Human Resources of the Company under this Section 10.2 shall
be final, conclusive and binding on all persons.”

 

11.           Section 11 (Merger or Consolidation)
is restated in its entirety as follows:

 

Section 11.  Change in Control

 

11.1         Change in
Control.  If the Company
shall experience a Change in Control Event, the Committee may:

 

(a)           terminate
the Plan and all other plans of the same type that would be aggregated with the
Plan under Section 409A within the twelve months following the Change in
Control Event, and all amounts deferred, plus interest additions shall be
distributed in full as soon as

 

13

 

practicable, but in no
event later than twelve months, following the date the aggregated plans are
terminated, notwithstanding any other provisions to the contrary; or

 

(b)           permit the
Plan to continue, making any necessary adjustments or modifications to reflect
any impact of the Change in Control Event, as determined by the Committee;
provided that such adjustments or modifications do not result in the imposition
on any person of additional taxes, penalties or interest under Section 409A.

 

14Exhibit 10.8

 

Personal & Confidential

 

 

Change in Control Agreement

for                    

 

 

Deere & Company

 

                    
2008

 

 

 

Contents

 

	
  Article 1.
  Establishment, Term, and Purpose

  	
  1

  
	
   

  	
   

  
	
  Article 2.
  Definitions

  	
  2

  
	
   

  	
   

  
	
  Article 3.
  Severance Benefits

  	
  6

  
	
   

  	
   

  
	
  Article 4.
  Form and Timing of Severance Benefits

  	
  9

  
	
   

  	
   

  
	
  Article 5.
  Excise Tax Equalization Payment

  	
  9

  
	
   

  	
   

  
	
  Article 6.
  The Company’s Payment Obligation

  	
  11

  
	
   

  	
   

  
	
  Article 7.
  Covenants of the Executive

  	
  12

  
	
   

  	
   

  
	
  Article 8.
  Legal Remedies

  	
  12

  
	
   

  	
   

  
	
  Article 9.
  Successors and Assignment

  	
  13

  
	
   

  	
   

  
	
  Article 10.
  Miscellaneous

  	
  13

  

 

 

Deere & Company

Change in Control Agreement

 

THIS
AGREEMENT is made and entered into as of the     day of                  ,  2008, by and between Deere & Company
(hereinafter referred to as the “Company”) and                  
(hereinafter referred to as the “Executive”).

 

WHEREAS,
the Board of Directors of the Company has approved the Company entering into change
in control agreements with certain key executives of the Company;

 

WHEREAS,
the Executive is a key executive of the Company;

 

WHEREAS,
should the possibility of a Change in Control of the Company arise, the Board
believes it is imperative that the Company and the Board should be able to rely
upon the Executive to continue in his position, and that the Company should be
able to receive and rely upon the Executive’s advice, if requested, as to the
best interests of the Company and its shareholders without concern that the
Executive might be distracted by the personal uncertainties and risks created
by the possibility of a Change in Control; and

 

WHEREAS,
should the possibility of a Change in Control arise, in addition to his regular
duties, the Executive may be called upon to assist in the assessment of such
possible Change in Control, advise management and the Board as to whether such
Change in Control would be in the best interests of the Company and its
shareholders, and to take such other actions as the Board might determine to be
appropriate.

 

NOW
THEREFORE, to assure the Company that it will have the continued dedication of
the Executive and the availability of his advice and counsel notwithstanding
the possibility, threat, or occurrence of a Change in Control of the Company,
and to induce the Executive to remain in the employ of the Company, and for
other good and valuable consideration, the Company and the Executive agree as
follows:

 

Article 1. Establishment,
Term, and Purpose

 

This
Agreement will commence on the Effective Date and shall continue in effect for two
(2) full years.  However, at the end
of such two (2) year period and, if extended, at the end of each
additional year thereafter, the term of this Agreement shall be extended
automatically for one (1) additional year, unless the Committee delivers
written notice six (6) months prior to the end of such term, or extended
term, to the Executive, that the Agreement will not be extended.  In such case, the Agreement will terminate at
the end of the term, or extended term, then in progress.  Provided, a notice that the Agreement will
not be extended shall not be given within six (6) months following a
Potential Change in Control, and provided further, that in the event a Change
in Control occurs during the original or any extended term, this Agreement will
remain in effect for the 

 

1

 

longer of: (i) twenty-four (24) months beyond the
month in which such Change in Control occurred; or (ii) until all
obligations of the Company hereunder have been fulfilled, and until all
benefits required hereunder have been paid to the Executive.

 

Article 2. Definitions

 

Whenever
used in this Agreement, the following terms shall have the meanings set forth
below and, when the meaning is intended, the initial letter of the word is
capitalized.

 

(a)         “Base Salary”
means the salary of record paid to the Executive as annual salary, excluding
amounts received under incentive or other bonus plans, whether or not deferred.

 

(b)         “Beneficial Owner”
shall have the meaning ascribed to such term in Rule 13d-3 of the
General Rules and Regulations under the Exchange Act.

 

(c)         “Beneficiary”
means the persons or entities deemed designated by the Executive pursuant to Section 10.2
herein.

 

(d)         “Board” means the
Board of Directors of the Company.

 

(e)         “Bonus”  means the greater of: 
(a) the arithmetic mean of the bonuses paid to the Executive
pursuant to the Performance Bonus Plan, or its successor plan as approved by
the Committee, of the Company for the three complete fiscal years immediately
preceding the Executive’s Effective Date of Termination; and (b) the
target bonus amount for the Executive for the fiscal year in which the
Effective Date of Termination occurs.  For
purposes of this Agreement, the term “Bonus” shall not be deemed to include any
payments made pursuant to the Company’s Mid-Term Incentive Plan, or its
successor plan.

 

(f)          “Cause” means (a) the
Executive’s willful and continued failure to substantially perform his duties
with the Company (other than any such failure resulting from Disability or
occurring after issuance by the Executive of a Notice of Termination for Good
Reason), after a written demand for substantial performance is delivered to the
Executive that specifically identifies the manner in which the Company believes
that the Executive has willfully failed to substantially perform his duties,
and after the Executive has failed to resume substantial performance of his
duties on a continuous basis within thirty (30) calendar days of receiving such
demand; (b) the Executive’s willfully engaging in conduct (other than
conduct covered under (a) above) which is demonstrably and materially
injurious to the Company, monetarily or otherwise; or (c) the Executive’s
having been convicted of a felony. For purposes of this subparagraph, no act,
or failure to act, on the Executive’s 

 

2

 

part shall be deemed “willful” unless done, or omitted
to be done, by the Executive not in good faith and without reasonable belief
that the action or omission was in the best interests of the Company.

 

(g)         “Change in Control”
means a change in control of a nature that
would be required to be reported in response to Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act 
of 1934 (the “Exchange Act”) whether or not the Company is then subject
to such reporting requirement, provided that, without limitation, such a Change
in Control shall be deemed to have occurred if:

 

(i)          any “person” (as defined
in Sections 13(d) and 14(d) of the Exchange Act) (other than a Participant
or group of Participants, the Company or a subsidiary, any employee benefit
plan of the Company including its trustee, or any corporation or similar entity
which becomes the Beneficial Owner of securities of the Company in connection
with a transaction excepted from the provisions of clause (iii) below) is
or becomes the “beneficial owner” (as defined in Rule 13(d-3) under the
Exchange Act), directly or indirectly, of securities of the Company (not
including the securities beneficially owned or any securities acquired directly
from the Company) representing thirty percent (30%) or more of the combined
Voting Power of the Company’s then outstanding securities;

 

(ii)         the following individuals
shall cease to constitute a majority of the Board:  individuals who on the Effective Date
constitute the Board and any new director(s) whose appointment or election
by the Board or nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors on the Effective Date or whose appointment or
election or nomination for election was previously so approved but excluding,
for this purpose, any such new director whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a person other than the Board;

 

(iii)        there is consummated a
merger, consolidation or similar business combination transaction of the
Company (including, for the avoidance of doubt, any business combination
structured as a forward or reverse triangular merger involving any direct or
indirect subsidiary of the Company) with any other company, other than a
merger, consolidation or similar business combination transaction which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or any parent thereof)
at least sixty percent (60%) of the combined Voting Power of the voting
securities of the 

 

3

 

Company or such
surviving entity or parent thereof outstanding immediately after such merger,
consolidation or similar business combination transaction; or

 

    (iv)      the stockholders of the
Company approve a plan of complete liquidation of the Company or there is
consummated an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets.

 

(h)         “Code” means the
United States Internal Revenue Code of 1986, as amended, and any
successors thereto.

 

(i)          “Committee” means
the Board Committee on Compensation or any other committee appointed by the
Board to perform the functions of the Compensation and Organization Committee.

 

(j)          “Company” means
Deere & Company, a Delaware corporation, or any successor thereto as
provided in Article 9 herein.

 

(k)         “Date of Termination
Share Price” means the average of the high and low prices per share paid in
transactions reported on the New York Stock Exchange Composite Tape at the
Effective Date of Termination.

 

(l)          “Disability”
means complete and permanent inability by reason of illness or accident to
perform the duties of the occupation at which the Executive was employed when
such disability commenced.

 

(m)        “Effective Date”
means the date of this Agreement set forth above.

 

(n)         “Effective Date of
Termination” means the date on which a Qualifying Termination occurs which
triggers the payment of Severance Benefits hereunder.

 

(o)         “Exchange Act”
means the United States Securities Exchange Act of 1934, as amended.

 

(p)         “Good Reason”
shall mean, without the Executive’s express written consent, the occurrence of
any one or more of the following:

(i)            The
assignment of the Executive to duties materially inconsistent with the
Executive’s authorities, duties, responsibilities, and status (including
offices and reporting requirements) as an employee of the Company, or a
reduction or alteration in the nature or status of the Executive’s authorities,
duties, or responsibilities from the greater of (i) those in effect on the
Effective Date; (ii) those in effect during the fiscal 

 

4

 

year immediately preceding the year of the Change in
Control; or (iii) those in effect immediately preceding the Change in
Control;

(ii)           The
Company’s requiring the Executive to be based at a location which is at least
fifty (50) miles further from the current primary residence than is such
residence from the Company’s current headquarters, except for required travel
on the Company’s business to an extent substantially consistent with the
Executive’s business obligations as of the Effective Date;

(iii)          A
reduction by the Company in the Executive’s Base Salary as in effect on the
Effective Date or as the same shall be increased from time to time;

(iv)          A
material reduction in the Executive’s level of participation in any of the
Company’s short- and/or long-term incentive compensation plans, or employee
benefit or retirement plans, policies, practices, or arrangements in which the
Executive participates from the levels in place during the fiscal year
immediately preceding the Change in Control; provided, however, that reductions
in the levels of participation in any such plans shall not be deemed to be “Good

                Reason” if the Executive’s
reduced level of participation in each such program remains substantially consistent
with the average level of participation of other executives who have positions
commensurate with the Executive’s position;

(v)           The
failure of the Company to obtain a satisfactory agreement from any successor to
the Company to assume and agree to perform this Agreement, as contemplated in Article 9
herein; or

(vi)          Any
termination of Executive’s employment by the Company that is not effected
pursuant to a Notice of Termination.

 

              The existence of Good Reason shall not be
affected by the Executive’s temporary incapacity due to physical or mental
illness not constituting a Disability. The Executive’s Retirement shall
constitute a waiver of the Executive’s rights with respect to any circumstance
constituting Good Reason. The Executive’s continued employment shall not
constitute a waiver of the Executive’s rights with respect to any circumstance
constituting Good Reason.

 

(q)         “Notice of Termination”
shall mean a written notice which shall indicate the specific termination
provision in this Agreement relied upon, and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive’s employment under the provision so indicated.

 

(r)          “Person” shall
have the meaning ascribed to such term in Section 3(a)(9) of the
Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as provided in Section 13(d).

 

5

 

          (s)     “Potential Change in
Control” of the Company means the
happening of any of the following:

 

(i)  the entering into an agreement
by the Company, the consummation of which would result in a Change of Control
of the Company as defined in paragraph (g) of this Article 2; or

 

(ii) the acquisition of beneficial ownership, directly
or indirectly, by any entity, person or group (other than a Participant or
group of Participants, the Company or a subsidiary, or any employee benefit
plan of the Company including its trustee) of securities of the Company
representing fifteen percent (15%) or more of the combined voting power of the
Company’s outstanding securities and the adoption by the Board of Directors of
a resolution to the effect that a Potential Change of Control of the Company
has occurred for purposes of the Plan.

 

(t)          “Qualifying Termination”
means any of the events described in Section 3.2 herein, the occurrence of
which triggers the payment of Severance Benefits hereunder.

 

(u)         “SEC” means the
United States Securities and Exchange Commission.

 

(v)         “Section 16
Grantee” means a person subject to potential liability with respect to
equity securities of the Company under Section 16(b) of the Exchange
Act.

 

(w)        “Severance Benefits”
means the payment of severance compensation as provided in Section 3.3
herein.

 

(x)          “Stock” means
common stock of the Company, par value $1.00 per share.

 

(y)         “Subsidiary” means any
corporation or other entity of which ownership interests having ordinary Voting
Power to elect a majority of the board of directors or other persons performing
similar functions are at the time directly or indirectly owned by the Company.

 

(z)          “Voting Power” of
a corporation or other entity means the combined voting power of the
then-outstanding voting securities of such corporation or other entity entitled
to vote generally in the election of directors.

 

Article 3. Severance Benefits

 

3.1         Right to Severance
Benefits. The Executive shall be entitled to receive from the Company
Severance Benefits, as described in Section 3.3 herein, if a Qualifying
Termination of the Executive has occurred.

 

6

 

The
Executive shall not be entitled to receive Severance Benefits if he or she is
terminated for Cause, or if his employment with the Company ends due to death
or Disability or due to a voluntary termination of employment by the Executive
without Good Reason.

 

3.2         Qualifying Termination.
The occurrence of any one or more of the following events shall trigger the
payment of Severance Benefits to the Executive under this Agreement:

 

(a)         An involuntary termination
of the Executive’s employment by the Company for reasons other than Cause
within six (6) months preceding or within twenty-four (24) calendar months
following a Change in Control of the Company; any such involuntary termination
shall be pursuant to a Notice of Termination (specifying the Effective Date of
Termination which shall be not less than five days from the date of the Notice
of Termination) delivered to the Executive by the Company; or

 

(b)         A voluntary termination
by the Executive for Good Reason within twenty-four (24) calendar months
following a Change in Control of the Company pursuant to a Notice of
Termination delivered to the Company by the Executive.

 

3.3         Description of Severance
Benefits. In the event the Executive becomes entitled to receive Severance
Benefits, as provided in Sections 3.1 and 3.2 herein, the Company
shall pay to the Executive and provide him or her with all of the following:

 

(a)         An amount equal to three
times the sum of the Executive’s Base Salary in effect at the Effective Date of
Termination (without regard to any decreases therein which constitute Good
Reason) plus the Executive’s Bonus.

 

(b)         An amount equal to the
Executive’s unpaid Base Salary, accrued vacation pay, and earned but not taken
vacation pay through the Effective Date of Termination.

 

(c)         An amount equal to the
Executive’s Bonus multiplied by a fraction, the numerator of which is the
number of days the Executive was employed by the Company in the then-existing
fiscal year through the Effective Date of Termination, and the denominator of
which is three hundred sixty-five (365) less, in the case of an Executive who
began employment with the Company after the beginning of the fiscal year, the
number of days from the beginning of the fiscal year to the date the Executive
commenced employment with the Company.

 

7

 

(d)                           A
continuation of the welfare benefits of health care, life and accidental death
and dismemberment, and disability insurance coverage for three full years after
the Effective Date of Termination. These benefits shall be provided to the
Executive at the same premium cost, and at the same coverage level, as in
effect as of the Executive’s Effective Date of Termination. However, in the
event the premium cost and/or level of coverage shall change for all employees
of the Company, or for management employees with respect to supplemental
benefits, the cost and/or coverage level, likewise, shall change for the
Executive in a corresponding manner.

 

                                          The
continuation of these welfare benefits shall be discontinued prior to the end
of the three year period to the extent the Executive has available
substantially similar benefits at a comparable cost from a subsequent employer,
as determined by the Committee.

 

(e)                            In
a single payment an amount in cash equal to the excess of (i) the
Supplemental Retirement Benefit (as defined below) had (x) the Executive
remained employed by the Company for an additional three complete years of age
and credited service, (y) his or her annual compensation during such
period been equal to his or her Base Salary and Bonus taken into account under Section 3.3(a) above;
and (z) he or she been fully (100%) vested in his or her benefit under
each defined benefit retirement plan in which the Executive was a participant,
over (ii) the lump sum actuarial equivalent (calculated as set forth in Section 3.5
of the John Deere Supplemental Pension Benefit Plan) of the aggregate
retirement benefit the Executive is actually entitled to receive under such
defined benefit retirement plans.  For
purposes of this subsection (e), the “Supplemental Retirement Benefit” shall
mean the lump sum actuarial equivalent (calculated as set forth in Section 3.5
of the John Deere Supplemental Pension Benefit Plan) of the aggregate
retirement benefit the Executive would have been entitled to receive under the
Company’s supplemental and other defined benefit retirement plans.

 

(f)                              In
a single payment, an amount in cash equal to three times the amount of the
Company’s employer contributions made on behalf of the Executive under all
defined contribution plans of the Company for the plan year immediately
preceding the Effective Date of Termination (or, if higher, for the plan year
immediately prior to the Change in Control).

 

Compensation
which has been deferred under the Company’s deferred compensation plans,
together with all interest that has been credited with respect to any 

 

8

 

such deferred compensation balances, shall be
distributed pursuant to the terms of the applicable plan.

 

3.4         Termination for
Disability. Following a Change in Control of the Company, if an Executive’s
employment is terminated due to Disability, the Executive shall receive his
Base Salary through the date of termination, at which point in time the
Executive’s benefits shall be determined in accordance with the Company’s
disability, retirement, insurance, and other applicable plans and programs then
in effect. In the event the Executive’s employment is terminated due to
Disability, the Executive shall not be entitled to the Severance Benefits
described in Section 3.3.

 

3.5         Termination for Death.
Following a Change in Control of the Company, if the Executive’s employment is
terminated by reason of his death, the Executive’s benefits shall be determined
in accordance with the Company’s retirement, survivor’s benefits, insurance,
and other applicable programs of the Company then in effect. In the event the
Executive’s employment is terminated by reason of his death, the Executive
shall not be entitled to the Severance Benefits described in Section 3.3.

 

3.6         Termination for Cause, or
Other Than for Good Reason. Following a Change in Control of the Company,
if the Executive’s employment is terminated either (a) by the Company for
Cause; or (b) by the Executive (other than for Good Reason or under
circumstances giving rise to a Qualifying Termination described in Section 3.2(c) herein),  the Company shall pay the Executive his full Base Salary
and accrued vacation through the date of termination, at the rate then in
effect, plus all other amounts to which the Executive is entitled under any
compensation and benefit plans of the Company, at the time such payments are
due, and the Company shall have no further obligations to the Executive under
this Agreement.

 

3.7         Notice of Termination.
Any termination of employment by the Executive for Good Reason  shall be communicated by a Notice of Termination.

 

Article 4. Form and
Timing of Severance Benefits

 

4.1         Form and Timing of
Severance Benefits. The Severance Benefits described in
Sections 3.3(a), 3.3(b), 3.3(c), 3.3(e) and 3.3(f)  herein shall
be paid in cash to the Executive in a single lump sum as soon as practicable
upon the expiration of 185 days following the Effective Date of Termination.

 

4.2         Withholding of Taxes.
The Company shall be entitled to withhold from any amounts payable under this
Agreement all taxes as legally shall be required (including, without
limitation, any United States federal taxes and any other state, city, or local
taxes).

 

Article 5. Excise Tax
Equalization Payment

 

9

 

5.1         Excise Tax Equalization
Payment. In the event that the Executive becomes entitled to Severance
Benefits or any other payment or benefit under this Agreement, or under any
other agreement with or plan of the Company (in the aggregate, the “Total
Payments”), if all or any part of the Total Payments will be subject to the tax
(the “Excise Tax”) imposed by Section 4999 of the Code (or any similar tax
that may hereafter be imposed), the Total Payments paid to the Executive shall
be reduced, such that the value of the aggregate payments that the Executive
receives shall be one dollar ($1) less than the maximum amount which the
Executive may receive without becoming subject to the tax imposed by Section 4999
of the Code, or which the Company may pay without loss of deduction under Section 280G(a) of
the Code.

 

Notwithstanding
the preceding paragraph, the Company shall pay to the Executive in cash an
additional amount (the “Gross-Up Payment”) such that the net amount retained by
the Executive after deduction of any Excise Tax upon the Total Payments and any
federal, state, and local income and employment tax, penalties, interest, and
Excise Tax upon the Gross-Up Payment provided for by this Section 5.1
(including FICA and FUTA), shall be equal to the Total Payments, if and only
if such Gross-Up Payment would enable the Executive to receive an amount
which would exceed by at least ten percent (10%) the Total of Payments reduced
as described in the preceding paragraph. 
Any such payment shall be made by the Company to the Executive as soon
as practical following the Effective Date of Termination, but in no event
beyond thirty (30) days from such date.

 

                                                5.2   Tax Computation. All calculations done
pursuant to subsection 5.1, shall be made and determined by the auditing firm
which served as the Company’s independent auditors immediately prior to the
Change in Control.

 

For
purposes of determining the amount of the Gross-Up Payment, the Executive shall
be deemed to pay federal income taxes at the highest marginal rate of federal
income taxation in the calendar year in which the Gross-Up Payment is to be
made, and state and local income taxes at the highest marginal rate of taxation
in the state and locality of the Executive’s residence on the Effective Date of
Termination, net of the maximum reduction in federal income taxes which could
be obtained from deduction of such state and local taxes.

 

The
Executive shall notify the Company immediately of the assertion by any taxing
authority of any underpayment of tax. 
The Executive and the Company shall each reasonably cooperate with the
other in connection with any administrative or judicial proceedings concerning
the existence or amount of liability for Excise Tax with respect to the Total
Payments and in resolving any dispute with any taxing authority regarding any
asserted underpayment of Excise Tax.

 

5.3         Subsequent Recalculation.  In the event the Internal Revenue Service adjusts the
computation of the Company under Section 5.2 herein so that the Executive
did not receive the greatest net benefit, the Company shall reimburse the
Executive for the full 

 

10

 

amount necessary to make the Executive whole, plus a
market rate of interest, as determined by the Committee.

 

In the
event the Internal Revenue Service adjusts the computation of the Company under
Section 5.2 herein so that the Executive is not required to submit the
full Gross-Up Payment, the Executive shall repay to the Company such portion of
the Gross-Up Payment as shall exceed the amount of federal, state, and local
taxes actually determined to be owed. Such repayment shall be made within
twenty (20) days of the date the actual refund or credit of such portion has
been made to Executive and that Executive shall pay the Company such interest
received or credited to Executive by such tax authority for the period it held
such portion.

 

Article 6. The Company’s
Payment Obligation

 

6.1         Payment Obligations
Absolute. The Company’s obligation to make the payments and the
arrangements provided for herein shall be absolute and unconditional, and shall
not be affected by any circumstances, including, without limitation, any
offset, counterclaim, recoupment, defense, or other right which the Company may
have against the Executive or anyone else. All amounts payable by the Company
hereunder shall be paid without notice or demand. Except as provided in Section 5.3
above, each and every payment made hereunder by the Company shall be final, and
the Company shall not seek to recover all or any part of such payment from the
Executive or from whomsoever may be entitled thereto, for any reasons
whatsoever.

 

Notwithstanding
anything else herein to the contrary, however, if the Company (or any
subsidiary or affiliate of the Company) is obligated by law to pay to the
Executive severance pay, a termination indemnity, notice pay, or the like, or
is obligated by law to provide to the Executive advance notice of separation (“Notice
Period”), then any Severance Benefits hereunder shall be reduced by the amount
of any such severance pay, termination indemnity, notice pay or the like, as
applicable, and by the amount of any compensation received during any Notice
Period.

 

The
Executive shall not be obligated to seek other employment in mitigation of the
amounts payable or arrangements made under any provision of this Agreement, and
the obtaining of any such other employment shall in no event effect any
reduction of the Company’s obligations to make the payments and arrangements
required to be made under this Agreement, except to the extent provided in Section 3.3(d) herein.

 

6.2         Contractual Rights to
Benefits. This Agreement establishes and vests in the Executive a
contractual right to the benefits to which he or she is entitled hereunder.
However, nothing herein contained shall require or be deemed to prohibit the
Company to segregate, earmark, or otherwise set aside any funds or other
assets, in trust or otherwise, to provide for any payments to be made or
required hereunder.

 

11

 

Article 7. Covenants of the
Executive

 

7.1         Disclosure of Information.
The Executive recognizes that he or she has access to and knowledge of certain
confidential and proprietary information of the Company which is essential to
the performance of his or her duties as an employee of the Company. The
Executive will not, during or after the term of his or her employment by the
Company, in whole or in part, disclose such information to any person, firm,
corporation, association, or other entity for any reason or purpose whatsoever,
nor shall he or she make use of any such information for their own purposes.

 

7.2         Covenants Regarding Other
Employees. During the term of this Agreement, and for a period of two (2) years
following the payment of Severance Benefits under this Agreement, the Executive
agrees not to:

 

(a)                            attempt
to induce any employee of the Company to (i) terminate his or her
employment with the Company, or (ii) accept employment with any competitor
of the Company; or

 

(b)         interfere in a similar
manner with the business of the Company.

 

Article 8. Legal Remedies

 

8.1         Payment of Legal Fees.
To the extent permitted by law, the Company shall pay all reasonable legal
fees, costs of litigation or arbitration, prejudgment interest, and other
expenses incurred in good faith by the Executive as a result of:

 

(a)                            the
Company’s refusal to provide the Severance Benefits to which the Executive
becomes entitled under this Agreement, or

 

(b)                           the
Company’s contesting the validity, enforceability, or interpretation of this
Agreement, or

 

(c)         any conflict between the
parties pertaining to this Agreement.

 

8.2         Arbitration. Any
dispute or controversy arising under or in connection with this Agreement may,
at the sole election of the Executive, be settled by arbitration, conducted
before a panel of three (3) arbitrators sitting in a location selected by
the Executive within fifty (50) miles from the location of his employment with
the Company, in accordance with the rules of the American Arbitration
Association then in effect.

 

Judgment
may be entered on the award of the arbitrator in any court having proper
jurisdiction. All expenses of such arbitration, including the fees and expenses
of the counsel for the Executive, shall be borne by the Company.

 

12

 

Article 9. Successors and
Assignment

 

9.1         Successors to the Company.
The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation, a similar business combination transaction or
otherwise) of all or substantially all of the business and/or assets of the
Company or of any division or subsidiary thereof to expressly assume and agree
to perform the Company’s obligations under this Agreement in the same manner
and to the same extent that the Company would be required to perform them if no
such succession had taken place. The date on which any such succession becomes
effective shall be deemed to be the date of the Change in Control.

 

9.2         Assignment by the
Executive. This Agreement shall inure to the benefit of and be enforceable
by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees. If the
Executive dies while any amount would still be payable to him or her hereunder
had he or she continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to
the Executive’s Beneficiary. If the Executive has not named a Beneficiary, then
such amounts shall be paid to the Executive’s devisee, legatee, or other
designee, or if there is no such designee, to the Executive’s estate.

 

Article 10. Miscellaneous

 

10.1       Employment Status.
Except as may be provided under any other agreement between the Executive and
the Company, the employment of the Executive by the Company is “at will,” and
may be terminated by either the Executive or the Company at any time, subject
to applicable law.

 

For
purposes of this Agreement, the employment of the Executive by a Subsidiary of
the Company shall be deemed to be employment by the Company.

 

10.2       Beneficiaries. The
primary and/or contingent beneficiaries designated by the Executive pursuant to
Company-provided life insurance benefits shall be the persons or entities who
or which are the Beneficiaries of any Severance Benefits owing to the Executive
under this Agreement.

 

10.3       Severability. In the
event any provision of this Agreement shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of
the Agreement, and the Agreement shall be construed and enforced as if the
illegal or invalid provision had not been included. Further, the captions of
this Agreement are not part of the provisions hereof and shall have no force
and effect.

 

10.4               Modification. No provision of this
Agreement may be modified, waived, or discharged unless such modification,
waiver, or discharge is agreed to in writing and 

 

13

 

signed by the Executive and by an authorized member of
the Committee, or by the respective parties’ legal representatives and
successors, Notwithstanding the preceding sentence, the Company shall have the
unilateral right to amend or modify this Agreement to the extent that the
Company’s Vice President, Human Resources, determines such action to be
necessary or advisable to avoid the imposition on the Executive of an
additional tax or interest under Section 409A of the Code.  Any determinations of the Company’s Vice
President, Human Resources, pursuant to the preceding sentence shall be final,
conclusive and binding on all parties.

 

10.5       Applicable Law.  TO THE EXTENT NOT
PREEMPTED BY THE LAWS OF THE UNITED STATES OR
ANY OTHER LAW MANDATORILY APPLYING TO THE EXECUTIVE’S EMPLOYMENT, THE
LAWS OF THE STATE OF ILLINOIS SHALL BE THE CONTROLLING LAW IN ALL MATTERS
RELATING TO THIS AGREEMENT.

 

10.6       Effect on Prior Agreements.  By signing this Agreement, the Executive and
the Company acknowledge that:  (a) this
Agreement supersedes all prior written or oral agreements between them,
including, but not limited to, any Severance Protection Agreement which the
parties may have entered into; and (b) as of the Effective Date, any and
all such prior agreements are null and void.

 

 IN WITNESS WHEREOF, the parties have executed
this Agreement on this     day of                      
 2008.

 

	
  DEERE & COMPANY

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  James R. Jenkins  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Senior Vice President & 

  	
   

  
	
   

  	
  General Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
  John H. Leinart

  	
   

  
									

 

14

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