Document:

Exhibit 10.7

 

Exhibit 10.7

KEYCORP

SECOND EXCESS 401(K) SAVINGS PLAN

     The KeyCorp Second Excess 401(k) Savings Plan (the “Plan”), as originally established December
28, 2004 to be effective January 1, 2005 is hereby amended and restated as of that date. The Plan,
as structured, is intended to provide certain select employees of KeyCorp with a Plan benefit that
is generally equal to the benefit that the Participant would have been eligible to receive under
the KeyCorp 401(k) Savings Plan on and after January 1, 2005 but for the deferral limits imposed by
Section 402(g) of the Internal Revenue Code of 1986, as amended (Code) and the compensation limits
imposed by Section 401(a)(17) of the Code. It is the intention of KeyCorp and it is the
understanding of the employees covered under the Plan, that the Plan constitutes a nonqualified
retirement plan for a select group of employees, and as such, the Plan is unfunded for tax purposes
and for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). It is also the understanding of the employees covered under the Plan that the Plan
shall be administered in accordance with the requirements of Section 409A of the Code.

ARTICLE I

DEFINITIONS

     1.1 Meaning of Definitions. For the purposes hereof, the following words and phrases
shall have the meanings hereinafter set forth, unless a different meaning is plainly required by
the context:

	 	(a)	 	“401(k) Savings Plan” shall mean the KeyCorp 401(k) Savings Plan, as shall be
amended from time to time.
	 
	 	(b)	 	“Beneficiary” shall mean the same person, persons or entity as designated by
the Participant under the 401(k) Savings Plan to receive any Plan benefits payable
after a Participant’s death.
	 
	 	(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.
	 
	 	(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 includes such section and any comparable section or sections of any future
legislation that amends, supplements, or supersedes such section.
	 
	 	(e)	 	“Compensation” of a Participant for any Plan Year or any partial Plan Year in
which the Participant incurs a Severance From Service Date shall mean the entire amount
of compensation paid to such Participant during such period by reason of his or her
employment with an Employer, as reported for federal income tax purposes, plus that
compensation which would have been paid except for (1) the timing of an Employer’s
payroll processing operations, (2) the provisions of the 401(k) Savings Plan, or (3)
the

1

 

	 	 	 	provisions of the KeyCorp Flexible Benefits Plan, or transportation reimbursement
plan, provided, however, that the term shall not include:

	 	(i)	 	any amount attributable to the Employee’s receipt of stock
appreciation rights and the amount of any gain to the Employee upon the
exercise of a stock option;
	 
	 	(ii)	 	any amount attributable to the Employee’s receipt of non-cash
remuneration which is included in the Employee’s income for federal income tax
purposes;
	 
	 	(iii)	 	any amount attributable to the Employee’s receipt of moving
expenses and any relocation bonus paid to the Employee during the Plan Year;
	 
	 	(iv)	 	any amount attributable to any severance paid by an Employer or
the Corporation to the Employee;
	 
	 	(v)	 	any amount attributable to fringe benefits (cash and non-cash),
regardless of whether any or all such items are includible in such
Participant’s gross income for federal tax purposes;
	 
	 	(vi)	 	any amount attributable to any bonus or payment made as an
inducement for the Employee to accept employment with an Employer;
	 
	 	(vii)	 	any amount attributable to compensation of any type including
bonus or incentive compensation payments paid on or after the Employee’s
Severance From Service Date; or
	 
	 	(viii)	 	any amount attributable to compensation deferred by the Participant.

     In determining a Participant’s Compensation under the Plan for Plan years prior to January 1,
2006, if the Participant participates in a line of business incentive plan, then only that
Compensation up to a maximum amount of $500,000 less the amount of the Participant’s Compensation
utilized in computing the Participant’s 401(k) Savings Plan benefit in accordance with the
provisions of Section 401(a)(17) of the Code shall be utilized for purposes of calculating the
Participant’s Participant Deferrals under the Plan for the applicable Plan year.

     In determining a Participant’s Compensation under the Plan for Plan years on and after January
1, 2006, if the Participant is classified with a benefits designator 85 or below, then only that
Compensation up to a Plan maximum of $500,000 minus the amount of the Participant’s Compensation
utilized in computing the Participant’s 401(k) Savings Plan benefit in accordance with Section
401(a)(17) of the Code shall be utilized in calculating the Participant’s Participant Deferrals
under the Plan for the applicable Plan year.

	 	(f)	 	“Corporate Contributions” shall mean the amount an Employer has agreed to
credit on a bookkeeping basis to the Participant’s Plan Account in accordance with the
provisions of Article IV of the Plan.
	 
	 	(g)	 	“Corporation Stock Fund” shall mean the investment account established under
the Plan for bookkeeping purposes under which a Participant may elect to have his or
her Participant Deferrals credited and which mirrors the Corporation Stock Fund
established

2

 

	 	 	 	in accordance with the 401(k) Savings Plan, as shall be amended from
time to time. Participant Deferrals to the Corporation Stock Fund 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) which shall be equal to
the amount of Participant Deferrals invested by the Participant in the Corporation
Stock Fund. The Corporation Stock Fund shall also reflect on a bookkeeping basis
all dividends, gains, and losses attributable to such Common Shares. All Corporate
Contributions and all Participant Deferrals credited to the Corporation Stock Fund,
shall be based on the New York Stock Exchange’s closing price for such Common Shares
as of the day such Participant Deferrals are credited to the Participants’ Plan
Account.
	 
	 	(h)	 	“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.
	 
	 	(i)	 	“Deferral Commencement Date” shall mean the first pay period coinciding with or
immediately following the date on which the Participant reaches his or her maximum
contribution limit under Section 402(g) of the Code and/or the Participant’s maximum
compensation limit under Section 401(a)(17) of the Code which effectively terminates
the Participant’s deferral of Compensation under the 401(k) Savings Plan.
	 
	 	(j)	 	“Deferral Election” shall mean the written commitment made by the Participant
to defer up to 6% of his or her Compensation on a per-pay basis under the Plan,
commencing as of the Participant’s Deferral Commencement Date. Except as otherwise
provided in Section 2.2 of the Plan, a Participant’s Deferral Election shall be made no
later than the last day of the year preceding the year for which the Participant’s
Compensation is earned by the Participant. Accordingly, the Participant shall elect to
defer that portion of his or her base salary no later than the year prior to the year
in which such base salary is earned by the Participant, and the Participant shall elect
to defer that portion of his or her incentive compensation/bonus awards no later than
the year prior to the year in which such incentive compensation/bonus is earned by the
Participant.”
	 
	 	(k)	 	“Deferral Period” shall mean each Plan year, provided, however, that a
Participant’s initial Deferral Period shall be from his or her first day of
participation in the Plan through the last day of the applicable Plan year.
	 
	 	(l)	 	“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.
	 
	 	(m)	 	“Employee” shall mean a common law employee who is employed by an Employer;
provided, however, the term “Employee” shall not include any person who at the time
services are performed is not classified as a common law employee by the Employer even
though such person may for federal income tax purposes, federal employment tax
purposes, or any other purpose be reclassified by the Employer as a common law
employee retroactive to when such services were performed by reason of
administrative, judicial, regulatory or other governmental action.

3

 

	 	(n)	 	“Employer” shall mean the Corporation and any of its subsidiaries, unless
specifically excluded as an Employer for Plan purposes by written action of an officer
of the Corporation. An Employer’s 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 a subsidiary.
	 
	 	(o)	 	“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
Participant Deferrals credited and which mirror the investment funds established in
accordance with and pursuant to Article VIII of the 401(k) Savings Plan as shall be
amended from time to time. Participant Deferrals invested for bookkeeping purposes in
the Investment Funds shall be credited on a bookkeeping basis with the same earnings,
gains, and losses as experienced by the 401(k) Savings Plan’s investment funds.
	 
	 	(p)	 	“Matching Employer Contributions” shall mean those Corporate Contributions
that an Employer has agreed to contribute to the Plan in accordance with the provisions
of Article IV of the Plan.
	 
	 	(q)	 	“Participant” shall mean an Employee who meets the eligibility requirements set
forth in Section 2.1 and becomes a Plan Participant pursuant to Section 2.2 of the
Plan.
	 
	 	(r)	 	“Participant Deferrals” shall mean the Participant’s elective deferral of
Compensation under this Plan.
	 
	 	(s)	 	“Plan” shall mean the KeyCorp Second Excess 401(k) Savings Plan, with all
amendments hereafter made.
	 
	 	(t)	 	“Plan Account” shall mean those bookkeeping accounts established by the
Corporation for each Plan Participant, which shall reflect all Participant Deferrals
and Corporate Contributions with all earnings, gains, and losses attributable thereto,
as if such Participant Deferrals and Corporate Contributions had been invested pursuant
to Article V of the Plan in the various Plan Investment Funds. Plan Accounts shall not
constitute separate Plan funds or Plan assets. Neither the maintenance of, nor the
crediting of amounts on a bookkeeping basis to such Plan Accounts shall be treated as
(i) 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. Benefits under the Plan
shall be paid from the general assets of the Corporation.
	 
	 	(u)	 	“Profit Sharing Contributions” shall mean those discretionary contributions
that an Employer may contribute to the Plan pursuant to Article IV of the Plan.
	 
	 	(v)	 	“Valuation Date” shall mean each “business day” or “business days” designated
by the Plan Administrator on which Investment Funds will be valued for bookkeeping
purposes.
	 
	 	(w)	 	“Retirement” shall mean the termination of employment of a Participant under
circumstances in which the Participant is eligible to receive an Early Retirement or
Normal Retirement Date benefit under the KeyCorp Cash Balance Pension Plan.

4

 

	 	(x)	 	“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 or
termination as a result of Disability.

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

     1.3 Additional Reference: All other words and phrases used herein shall have the
meaning given them in the 401(k) Savings Plan, unless a different meaning is clearly required by
the context.

ARTICLE II

EMPLOYEE PARTICIPATION

     2.1 Employee Eligibility. An Employee shall be eligible to participate in the Plan,
provided (1) the Employee is a participant in the 401(k) Savings Plan, (2) the Corporation selects
such Employee to participate in the Plan, (3) the Employee’s elective deferrals of compensation
under the 401(k) Savings Plan reach the deferral limitations prescribed by Section 402(g) of the
Code, or the compensation limitations prescribed by Section 401(a)(17) of the Code, (4) the
Employee makes a timely Deferral Election to defer his or her Compensation for the applicable Plan
year in accordance with the Deferral Election requirements of the Plan and Section 409A of the
Code, and (5) the Employee agrees that as a condition of participating in the Plan for the
applicable Plan year, the Employee will not modify his or her deferral election under the 401(k)
Savings Plan during the applicable Plan year.

     2.2 Notification of New Participants. When an Employee first becomes eligible to
participate in the Plan, the Corporation shall notify the Employee of his or her Plan eligibility.
An Employee electing to participate in the Plan shall submit a Deferral Election to the Corporation
within 30 days of the Corporation’s notification of the Employee’s Plan eligibility. The
Employee’s Deferral Election shall be effective only if timely provided to the Corporation.

     2.3 Effect and Duration. Upon becoming a Participant, an Employee shall be entitled
to the benefits and shall be bound by all terms and conditions of the Plan. If the Corporation
determines that a Participant’s performance is no longer at a level that deserves to be rewarded
through participation in the Plan, but does not terminate the Participant’s employment with an
Employer, the Participant’s Plan participation shall terminate at the end of the Deferral Period
and no new Participant Deferrals thereafter may be made by the Participant.

     2.4 Authorized Leave of Absence. A Participant on an authorized leave of absence who
is not receiving Compensation during such leave period shall continue as a Plan Participant during
such leave, provided, however, that no Corporate Contributions shall be credited to the
Participant’s Plan Account on behalf of the Participant during such leave period. Upon the
Participant’s return to active employment with an Employer, the Participant’s Participant Deferrals
shall resume in accordance with the Participant’s Deferral Election for the applicable Deferral
Period.

5

 

ARTICLE III

PARTICIPANT DEFERRALS

     3.1 Participant Deferrals. In accordance with a Participant’s Deferral Election, upon
meeting the eligibility criteria of Section 2.1 and Section 2.2 of the Plan, a Participant may
defer on a bookkeeping basis not less than one percent not more than six percent of his or her
Compensation to the Plan. Such Participant Deferrals shall commence with the first payment of
Compensation to the Participant coinciding with (1) the date on which the Participant’s elective
deferral of Compensation under the 401(k) Savings Plan reaches the maximum deferral limitations
prescribed under Section 402(g) of the Code, or (2) the date on which the Participant’s elective
deferral of Compensation under the 401(k) Savings Plan reaches the maximum compensation limits
prescribed under Section 401(a)(17) of the Code. Participant Deferrals shall be credited on a
bookkeeping basis to the Participant’s Plan Account as of each applicable pay period in which the
Participant makes Participant Deferrals under the Plan.

ARTICLE IV

CORPORATE CONTRIBUTIONS

     4.1 Matching Employer Contributions. Matching Employer Contributions shall be
credited on a bookkeeping basis to the Participant’s Plan Account as of each pay period in
proportion to the respective amount of the Participant’s Participant Deferrals deferred under the
Plan for such pay period. Credited Matching Employer Contributions shall equal 100% of those
Participant Deferrals deferred under the Plan for such pay period.

     4.2 Profit Sharing Contributions. Profit Sharing Contributions, if any, shall be
credited to Participant’s Plan Account at such time and in such manner as the Corporation directs.

     4.3 Opening Account Balance. Effective January 1, 2005 those Participants in the
frozen KeyCorp 401(k) Excess Savings Plan who as of December 31, 2004 were not vested in the
KeyCorp 401(k) Excess Savings Plan corporate contributions allocated to their plan account as of
December 31, 2004 shall have such not vested corporate contributions, on a bookkeeping basis,
transferred to the Plan and reflected in a bookkeeping opening account balance (“Opening Account
Balance”) established for the Participant. Such Opening Account Balance shall be invested on a
bookkeeping basis in the Plan’s Corporation Stock Fund, and shall be credited with all earnings,
gains, and losses attributable to the investment performance of such Fund. The value of the
Participant’s Opening Account Balance shall be added to and shall become a part of such
Participant’s Plan benefit which shall be payable in accordance with the terms of this Plan. The
establishment of the Participant’s Plan Opening Account Balance shall terminate the Participant’s
entitlement to that transferred benefit under the frozen KeyCorp Excess 401(k) Savings Plan.

ARTICLE V

INVESTMENTS

     5.1 Plan Account. All Participant Deferrals and Corporate Contributions shall be
credited on a bookkeeping basis to a Plan Account established in the Participant’s name. Separate
sub-accounts

6

 

may be established to reflect Participant’s Opening Account Balance (if any) and investment
elections on a bookkeeping basis, with all earnings, gains, or losses attributable to such
elections.

     5.2 Investment of Participant Deferrals. Each Participant shall direct the manner in
which his or her Participant Deferrals are to be invested for bookkeeping purposes under the Plan,
provided, however, that the initial Participant Deferral of income for the 2005 Plan year shall be
based on the Participant’s investment instructions provided under the frozen KeyCorp Excess 401(k)
Savings Plan. All Participant Deferrals may be invested for bookkeeping purposes in the Plan’s
Corporation Stock Fund or any one or more of the Plan Investment Funds in such amount as the
Participant shall select. Participants may modify their investment elections at such times and in
such manner as permitted by the Corporation.

     5.3 Investment of Corporate Contributions. All Corporate Contributions credited to
the Participant’s Plan Account shall be invested for bookkeeping purposes in the Corporation Stock
Fund. Corporate Contributions are not subject to Participant investment directives.

     5.4 Vesting in Corporate Contributions. Subject to the provisions of Section 6.7
hereof, a Participant shall become vested in those Corporate Contributions credited on a
bookkeeping basis to the Participant’s Plan Account upon the Participant’s (1) completion of three
years of vested service, (2) Disability, or (3) death. For purposes of this Section 5.4 hereof,
the term “vested service” shall be calculated based on the Participant’s employment commencement
date through the Participant’s Termination or Retirement date (which ever first occurs), and shall
be based on consecutive twelve-month periods during which time the Participant is employed by an
Employer.

     5.5 Valuation of Plan Accounts. As of each Valuation Date, the Plan Administrator
shall verify the amount of Participant Deferrals, Corporate Contributions, dividends, earnings,
and losses, if any, to be credited to the 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 the Participant’s 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. The value of the Participant’s Plan Account on any day not a Valuation
Date, shall be the value on the last preceding Valuation Date.

     5.6 Corporate Assets. All Participant Deferrals, Corporate Contributions, dividends,
and all earnings and losses credited to a Participant’s Plan Account remain the assets and property
of the Corporation, which shall be subject to distribution to the Participant only in accordance
with Articles VI and VII of the Plan. All payments hereunder shall be in the form of cash and
KeyCorp Common Shares and shall be made from the general assets of the Corporation, and
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 the Participant that the Plan be unfunded for
tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974, as
amended.

     5.7 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. If
the Participant or

7

 

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.

     5.8 Effect of Plan Termination. Notwithstanding anything to the contrary contained in
the Plan, the termination of the Plan or the termination of the 401(k) Savings Plan shall terminate
the liability of the Corporation to make further Corporate Contributions to the Plan.

ARTICLE VI

DISTRIBUTION OF PLAN BENEFITS

     6.1 Distribution of Plan Benefits. Subject to the provisions of Section 6.3 and
Section 6.4 hereof, a Participant shall receive a distribution of his or her vested Plan Account
balance from the Plan’s Investment Funds (other than from the Corporation Stock Account) in a
series of monthly installment distributions over a period of ten (10) years.

Distributions of Participant Deferrals from the Plan’s Investment Funds other than the Corporation
Stock Fund shall be made in cash.

     6.2 Distribution Options from the Corporation Stock Account. Subject to the
provisions of Section 6.3 and Section 6.4 of the Plan, the Participant shall receive a distribution
of his or her vested Plan Account balance from the Plan’s Corporation Stock Account as series of
annual installment distributions over a period of ten (10) years.

Distributions of Participant Deferrals and vested Corporate Contributions from the Plan’s
Corporation Stock Account shall be made in KeyCorp Common Shares.

     6.3 Distribution. The Participant’s vested Plan Account shall be valued as of the
Valuation Date immediately preceding his or her Termination, Retirement or Disability (the
“valuation date”). Distribution of a Participant’s Plan Account shall commence as soon as
administratively practicable following the Participant’s Termination, Retirement or Disability
(whichever shall first occur) as follows:

	 	(i)	 	The Participant’s vested unpaid Plan Account balance invested for bookkeeping
purposes in the Plan’s Investment Funds (other than Corporation Stock Fund) shall be
reflected in a distribution sub-account, which on a bookkeeping basis shall be credited
with all earnings, gains and losses on such Investment Funds during the Participant’s
installment distribution period.
	 
	 	(ii)	 	The Participant’s vested unpaid Plan Account balance invested for bookkeeping
purposes in the Plan’s Corporation Stock Fund shall be reflected as a number of whole
and fractional Common Shares in a distribution sub-account and shall be credited with
dividends on a bookkeeping basis which shall be reinvested in the Plan’s Corporation
Stock Fund throughout the installment distribution period; all such reinvested
dividends shall be paid to the Participant in Common Shares in conjunction with the
Participant’s final installment payment under the Plan.

     6.4 Payment Limitation for Key Employees. Notwithstanding any other provision of the
Plan to the contrary, 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)

8

 

thereof), distributions of the Participant’s Plan benefit may not be made before
the date which is six months after the Participant’s date of separation from service (or, if
earlier, the date of death of the Participant). 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.

     6.5 Distribution of Small Accounts. Notwithstanding the provisions of Sections 6.1,
6.2, and 6.3 hereof, but subject to the requirements of Section 6.4 hereof, if the value of a
Participant’s vested Account balance as of the Valuation Date immediately preceding the
Participant’s Termination, Retirement or Disability date is under $50,000, such balance shall be
distributed to the Participant as a single lump sum distribution as soon as reasonably practicable
following such Termination, Retirement or Disability 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
therefore 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 therefore under the Plan.

     6.7 Forfeiture of Plan Benefits. Notwithstanding any other provision of the Plan
to the contrary, however, if the Participant engages in any Harmful Activity prior to or within
twelve months after the Participant’s Termination or Retirement, then by operation of this Section
6.7 hereof, and without any further notice to the Participant, (a) (i) all Matching Employer
Contributions, and (ii) all earnings, dividends, and gains allocated to the Participant’s Plan
Account with regard to both Participant Deferrals and Matching Employer Contributions shall become
immediately forfeited and (b) Matching Employer Contributions and all earnings, gains and dividends
on both the Participant’s Participant Deferrals and Matching Employer Contributions that have been
distributed to the Participant within one year of 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 Termination or
Retirement shall be final and conclusive upon the Participant and upon all other Persons.

9

 

For purposes of this Section 6.7, a “Harmful Activity” shall have occurred if the Participant
shall do any one or more of the following:

	(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.
	 
	(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 6.7 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, 

10

 

	 	 	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.

ARTICLE VII

BENEFICIARY DESIGNATION

     7.1 Beneficiary Designation. Subject to Section 7.3 hereof, the 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 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. Subject to Section 7.3, any Beneficiary designation may be
changed by the Participant without the consent of the previously named Beneficiary by the filing of
a new designation with the Corporation. The filing of a new designation shall cancel all
designations previously filed.

     7.3 No Beneficiary Designation. If any 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
before complete distribution of the Participant’s benefits, the Participant’s Beneficiary shall be
the person in the first of the following classes in which there is a survivor:

	 	(a)	 	The Participant’s spouse;
	 
	 	(b)	 	The Participant’s children in equal shares, except that if any of the children
predeceases the Participant but leaves issue surviving, then such issue shall take, by
right of representation the share the parent would have taken if living; or
	 
	 	(c)	 	The Participant’s estate.

     7.4 Distribution upon Death. If a Participant dies after the distribution of his or
her vested interest under the Plan has commenced, the remaining portion of the Participant’s entire
interest under the Plan, if any, shall be distributed to the Participant’s Beneficiary under the
method of distribution being used as of the Participant’s date of death. If the Participant dies
before the distribution of the Participant’s Plan Account has commenced, the Participant’s entire
interest under the Plan shall be valued as of the Valuation Date immediately preceding the
Participant’s date of death, and shall be
distributed to his or her Beneficiary in a lump sum payment as soon as reasonably practicable
following the Participant’s date of death.

11

 

ARTICLE VIII

ADMINISTRATION

     8.1 Administration. The Corporation, which shall be the “Administrator” of the Plan
for purposes of ERISA and the “Plan Administrator” for purposes of the Code, 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 Plan
Administrator 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 Plan Administrator 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 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 Plan Administrator’s
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

12

 

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 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. No amendment or termination will result in an acceleration of Plan benefits in violation
of Section 409A of the Code.

	 	(a)	 	Preservation of Account Balance. No termination, amendment, or
modification of the Plan shall reduce (i) the amount of Participant Deferrals and
Corporate Contributions, and (ii) all earnings and gains on such Participant Deferrals
and 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 or modify the method of accruing earnings, gains, and losses under the
Plan’s Investment Funds that differ from the method of accruing earnings, gains, and
losses under the 401(k) Savings Plan’s investment funds until the close of the
applicable Deferral Period in which such amendment or modification is made.

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 1.1 of the
Plan, no amendment or modification of this 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
Corporation Stock Fund’s method of calculating all earnings, gains, and/or losses on a
Participant’s Pre-Change of Control Account Balance, (3) to reduce or modify any other Investment
Funds’ method of calculating all earnings, gains, and/or losses on a Participant’s Pre-Change of
Control Account Balance, or (4) to reduce or modify the Participant’s Participant Deferrals and/or
Corporate Contributions to be credited to a Participant’s Plan Account for the applicable Deferral
Period. 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 amount of such Participant’s Participant
Deferrals 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.

13

 

     10.2 Common Stock Conversion. In the event of a Change of Control 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 Corporation Stock Fund 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 on an equivalent amount of common shares equal to
the balance in the Corporation Stock Fund and, from and after such reorganization,
reclassification, consolidation, merger or sale, the Corporation Stock Fund 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 or after a Change of Control,
the provisions of Article II, Article IV, Article V, Article VI, Article VII, Article VIII, Article
IX and 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

SECURITIES LAWS COMPLIANCE

     11.1 Restrictions Imposed on Transactions Involving the Corporation Stock Fund.
Notwithstanding any contrary provision in this Plan, the Corporation may, in its discretion, but in
a uniform, non-discriminatory manner, delay, suspend or otherwise limit any investment in or
withdrawal from the Corporation Stock Fund for such time and to the extent the Corporation, on
advice of legal counsel, determines is necessary or desirable to avoid violating any applicable
state or federal securities laws, rules or regulations.

14

 

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”
within the meaning of Sections 201, 301, and 401 of ERISA, and therefore is exempt from the
provisions of Parts 2, 3, and 4 of Title I of ERISA.

     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 ERISA, the Code, and, to
the extent applicable, 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.

15

 

     12.12 Trust Fund. At its discretion, the Corporation may establish one or more
trusts, with such trustees as the Corporation may approve, for the purpose of providing for the
payment of benefits owed under the Plan. Although such a trust may be irrevocable, in the event of
insolvency or bankruptcy of the Corporation, such assets will be subject to the claims of the
Corporation’s general creditors. To the extent any benefits provided under the Plan are paid from
any such trust, the Employer shall have no further obligation to pay them. If not paid from the
trust, such benefits shall remain the obligation of the Employer.

     12.13 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.

     12.14 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

     12.15 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. Moreover, to
the extent permitted in guidance issued by the Secretary of the Treasury and in accordance with
procedures established by the Corporation, a Participant may be permitted to terminate
participation in the Plan or cancel an outstanding deferral election with regard to amounts
deferred after December 31, 2004. Notwithstanding any provision of the Plan to the contrary, no
otherwise permissible election or distribution shall be made or given effect under the Plan that
would result in early taxation or assessment of penalties or interest of any amount under Section
409A of the Code.

     Notwithstanding any provision of the Plan to the contrary, Plan benefits shall not be
distributed to a Participant earlier than:

	 	(a)	 	the Participant’s separation from service as determined by the Secretary of the
Treasury (except as provided below with respect to a key employee of the Corporation);

16

 

	 	(b)	 	the date the Participant becomes Disabled, or
	 
	 	(c)	 	death of the Participant.

     If it is determined that a Participant constitutes a key employee (as defined in Section
416(i) of the Code without regard to paragraph (5) thereof) of the Corporation, the Participant
shall not commence the distribution of his or her Plan benefits before the date which is six months
after the date of the Participant’s separation from service (or, if earlier, the date of death of
the Participant).

     WITNESS WHEREOF, KeyCorp has caused the KeyCorp Second Excess 401(k) Savings Plan to be
executed by its duly authorized officer this 21st day of December, to be effective as of January 1,
2005.

	 	 	 	 	 	 	 
	 	 	KEYCORP
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas E. Helfrich 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President	 	 

17Exhibit 10.8

 

Exhibit 10.8

KEYCORP

SECOND EXCESS CASH BALANCE PENSION PLAN

ARTICLE I

THE PLAN

     The KeyCorp Second Excess Cash Balance Pension Plan (“Plan”), as originally established
December 28, 2004 to be effective January 1, 2005 is hereby amended and restated as of that date.
The Plan, as structured, is designed to provide certain select employees of KeyCorp with a Plan
benefit that is generally equal to the benefit that the employee would have been eligible to
receive under the KeyCorp Cash Balance Pension Plan but for the compensation and accrual
limitations imposed by Section 401(a)(17) and Section 415 of the Internal Revenue Code of 1986, as
amended, when combined with any vested benefit provided to the employee under the KeyCorp Excess
Cash Balance Pension Plan. It is the intention of the Plan and it is the understanding of those
employees covered under the Plan that the Plan is unfunded for tax purposes and for purposes of
Title I of the Employee Retirement Income Security Act of 1974, as amended. 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 Meanings of Definitions. As used herein, the following words and phrases shall
have the meanings hereinafter set forth, unless a different meaning is plainly required by the
context:

	 	(a)	 	“Beneficiary” shall mean the person, persons or entity entitled to receive the
Participant’s Plan benefits, if any, that are payable after a Participant’s death.
	 
	 	(b)	 	“Credited Service” shall be calculated by measuring the period of service
commencing on the Participant’s Employment Commencement Date and Re-Employment
Commencement Date, if applicable, and ending on the Participant’s Severance from
Service Date. Credited Service shall be computed based on each full month that the
Employee is employed by an Employer.
	 
	 	(c)	 	“Compensation” of a Participant for any Plan Year or any partial Plan Year in
which the Participant incurs a Severance From Service Date shall mean the entire amount
of compensation paid to such Participant during such period by reason of his employment
as an Employee, as reported for federal income tax purposes, or which would have been
paid except for (1) the timing of an Employer’s payroll processing operations, (2) the
Participant’s written election to defer the receipt of compensation during the Plan
Year, (3) the provisions of the KeyCorp 401(k) Savings Plan, or (4) the provisions of
the KeyCorp Flexible Benefits Plan and/or any transportation reimbursement plan for the
applicable Plan year provided, however, the term shall not include:

	 	(i)	 	any amount attributable to the Participant’s exercise
of stock appreciation rights and the amount of any gain to the
Participant upon the exercise of stock options;

 

 

	 	(ii)	 	any amount attributable to the Participant’s receipt of
non-cash remuneration whether or not it is included in the
Participant’s income for federal income tax purposes;
	 
	 	(iii)	 	any amount attributable to the Participant’s receipt of moving
expenses and any relocation bonus paid to the Participant during the Plan Year;
	 
	 	(iv)	 	any amount attributable to any severance paid by an
Employer or the Corporation to the Participant;
	 
	 	(v)	 	any amount attributable to fringe benefits (cash and
non-cash);
	 
	 	(vi)	 	any amount attributable to any bonus or payment made as
an inducement for the Participant to accept employment with an
Employer;
	 
	 	(vii)	 	any amount attributable to salary deferrals paid to
the Participant during the Plan Year, which have been previously
included as Compensation under the Plan during the Plan Year or any
prior Plan Year;
	 
	 	(viii)	 	any amount paid to the Participant during the Plan Year which is
attributable to interest earned on Compensation deferred under a plan
of an Employer or the Corporation; and
	 
	 	(ix)	 	any amount paid for any period after the Participant’s
Termination or Retirement date.

     In determining a Participant’s Compensation under the provisions of this Section 2.1(c), for
those Plan Participants who participate in a line of business incentive plan (other than the
KeyCorp Annual Incentive Plan, the KeyCorp Long Term Incentive Plan and/or the KeyCorp Staff
Incentive Plan), compensation up to a Plan maximum of $500,000 minus the amount of the
Participant’s compensation utilized in computing his or her Pension Plan benefit in accordance with
Section 401(a)(17) of the Code shall be utilized in calculating the Participant’s benefit under the
Plan.

     For Plan Years beginning on and after January 1, 2006, only that Compensation which is in
excess of the compensation limits mandated under Section 401(a)(17) of the Code shall be utilized
in determining the Participant’s Excess Pension Benefit under the provisions of Section 3.2 of the
Plan. Notwithstanding the foregoing, however, if the Participant is in a benefits designator 85 or
below, then only that Compensation which is in excess of the compensation limits mandated under
Section 401(a)(17) of the Code up to a Plan Compensation maximum of $500,000 shall be utilized in
determining the Participant’s Excess Pension Benefit under the provisions of Section 3.2 hereof.

     In the case of a Disabled Participant, such Participant’s Compensation for each year while
Disabled shall equal an amount which shall reflect the Participant’s Compensation for the calendar
year preceding the date of the Participant’s Disability.

     (d) “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.

2

 

     (e) “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. In
addition to the foregoing, the disability requirements addressed in Section 409A of the Code are
incorporated into the provisions of this definition.

     (f) “Employee” shall mean a common law employee who is employed by an Employer; provided,
however, the term “Employee” shall not include any person who at the time services are performed is
not classified as a common law employee by the Employer even though such person may for federal
income tax purposes, federal employment tax purposes, or any other purpose be reclassified by the
Employer as a common law employee retroactive to when such services were performed by reason of
administrative, judicial, regulatory or other governmental action.

     (g) “Employer” shall mean KeyCorp and all 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 participation shall be subject to any and all conditions and
requirements made by the Corporation as the Plan Administrator, and each Employer shall be deemed
to have appointed the Plan Administrator as its exclusive agent under the Plan.

     (h) “Excess Pension Benefit” shall mean the vested pension benefit payable pursuant to the
terms of this Plan to a Participant meeting the eligibility requirements of Section 3.1 of the
Plan.

     (i) “Excess Pension Program Benefit” shall mean the Participant’s collective nonqualified
pension benefit accrued under the KeyCorp Excess Cash Balance Pension Plan and KeyCorp Second
Excess Cash Balance Pension Plan, subject to the terms and conditions of each respective Plan.

     (j) “Executive Supplemental Pension Program Benefit” shall mean the Participants’ collective
nonqualified pension benefit accrued under the KeyCorp Executive Supplemental Pension Plan and
KeyCorp Second Executive Supplemental Pension Plan, subject to the terms and conditions of each
respective Plan.

     (k) “Interest Credit” shall mean the rate at which a Participant’s Opening Account Balance, as
provided for under Section 3.3 of the Plan, is periodically increased on a bookkeeping basis. The
Interest Credit rate to be allocated to a Participant’s Opening Account Balance shall mirror the
Pension Plan’s Interest Credit rate for each applicable Plan Year..

     (l) “Participant” shall mean an Employee who is a participant in the Pension Plan and who is
selected by the Corporation to become a Participant in the Plan, and whose participation in the
Plan has not been terminated by the Corporation.

     (m) “Pension Plan” shall mean the KeyCorp Cash Balance Pension Plan, as the same shall be in
effect on the date of a Participant’s Retirement, death, Disability or other termination of
employment.

     (n) “Retirement” shall mean the termination of employment of a Participant under circumstances
in which entitle the Participant to receive an Early Retirement or Normal Retirement Date benefit
under the KeyCorp Cash Balance Pension Plan.

3

 

     (o) “Supplemental Retirement Plan” shall mean the KeyCorp Supplemental Retirement Plan
(formerly known as the Society Corporation Supplemental Retirement Plan), the KeyCorp Excess
Pension Benefit Plan, and the KeyCorp Excess Pension Benefit Plan for Key Executives, with all
amendments made thereto.

     (p) “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.

     All other capitalized and undefined terms used herein shall have the meanings given them in
the Pension Plan, unless a different meaning is plainly required by the context.

     The masculine gender includes the feminine, and singular references include the plural, unless
the context clearly requires otherwise.

ARTICLE III

EXCESS PENSION BENEFIT

     3.1 Eligibility. A Participant selected by the Corporation to participate in the Plan
shall be eligible for an Excess Pension Benefit hereunder if the Participant (i) terminates
employment with an Employer on or after age 55 with five or more years of Credited Service, (ii)
terminates his or her active employment with an Employer in conjunction with his or her Disability
after completing five or more years of Credited Service and disability benefits have ceased under
the KeyCorp Long-Term Disability Plan due to the Participant’s election of an Early or Normal
Retirement under the Pension Plan, or (iii) dies after completing five years of Credited Service
and has a Beneficiary who is eligible for a benefit under the Pension Plan.

     A Participant shall also be eligible for an Excess Pension Benefit if the Participant becomes
involuntarily terminated from his or her employment with an Employer for reasons other than the
Participant’s Discharge for Cause, and (i) as of the Participant’s termination date the Participant
has a minimum of twenty-five (25) or more years of Credited Service, and (ii) the Participant
enters into a written non-solicitation and non-compete agreement with the Employer under terms that
are satisfactory to the Employer.

     For purposes of this Section 3.1, hereof, the term “Discharge for Cause” shall mean a
Participant’s employment termination that is the result of the Participant’s violation of the
Employer’s policies, practices or procedures, violation of city, state, or federal law, or failure
to perform his or her assigned job duties in a satisfactory manner. The Employer shall determine
whether a Participant has been Discharged for Cause.

     Notwithstanding any of the forgoing provisions of this Section 3.1, however, a Participant’s
eligibility for an Excess Pension Benefit shall be subject to the requirements of Article V of the
Plan.

     3.2 Amount of Excess Pension Benefit. The Excess Pension Benefit payable to a
Participant shall be in such amount as is required, when added to the excess pension benefit
payable in lump sum form to the Participant under the KeyCorp Excess Cash Balance Pension Plan (if
any) and the Accrued Benefit payable in lump sum form to the Participant under the Pension Plan as
of the Participant’s Retirement or Termination date to produce a lump sum cash aggregate benefit
equal to the

4

 

benefit which would have been payable under the Pension Plan formula in lump sum form
to the Participant if the limitations of Section 401(a)(17) of the Code and the limitations of
Section 415 of the Code had not been in effect. For purposes of this Section 3.2 hereof, the term
“Pension Plan formula” means the method of calculating a Participant’s pension benefit as reflected
in Article IV of the Pension Plan and shall not include any Predecessor Plan Grandfathered Benefits
formula.

     3.3 Opening Account Balance. Effective January 1, 2005, Participants in the frozen
KeyCorp Excess Cash Balance Pension Plan who as of December 31, 2004 were not vested in their
Excess Cash Balance Pension Plan benefit shall have their accrued but not vested benefit
transferred to this Plan and reflected in a bookkeeping opening account balance (“Opening Account
Balance”) established for the Participant. Such Opening Account Balance shall be credited with
Interest Credit as of the last day of each calendar quarter, based on the value of the
Participant’s Opening Account Balance as of the first day of the applicable quarter. A
Participant’s entitlement to this Opening Account Balance shall be governed by the eligibility
provisions of Section 3.1 of this Plan, and the value of the Opening Account Balance shall be added
to and become a part of such Participant’s Excess Pension Benefit, if any, which shall be payable
in accordance with the terms of this Plan. The establishment of the Participant’s Plan Opening
Account Balance shall terminate the Participant’s entitlement to any benefit under the frozen
KeyCorp Excess Cash Balance Pension Plan.

ARTICLE IV

PAYMENT OF EXCESS PENSION BENEFIT

     4.1 Immediate Payment Upon Termination or Retirement of Participant. Subject to the
provisions of Section 4.2, Section 4.4, and Section 4.5 hereof, a Participant meeting the age and
service eligibility requirements of Section 3.1 shall receive an immediate distribution of his or
her Excess Pension Benefit upon the Participant’s Termination date. Such Excess Pension Benefit
shall be paid in the form of a single life annuity, unless the Participant elects in writing, a
minimum of sixty days prior to the Participant’s Termination date to receive his or her
distribution under a different form of payment that is actuarially equivalent to the Participant’s
Excess Pension Benefit when paid as a single life annuity payment. The forms of payment from which
a Participant may elect shall be identical to those forms of payment provided under the Pension
Plan, provided however, that the lump sum payment option available under the Pension Plan shall not
be a form of distribution available under this Plan. Such payment method, once elected by the
Participant, shall be irrevocable.

     In calculating the Participant’s actuarially equivalent form of distribution the Corporation
shall rely upon calculations made by independent actuaries for the Pension Plan, who shall apply
the actuarial assumptions and interest rate then in use under the Pension Plan for converting to
the form of payment elected by the Participant.

     4.2 Forfeiture of Plan Benefits. Notwithstanding the any other provision of this
Article VI, however, if the Participant engages in any Harmful Activity prior to or within twelve
months of his or her Termination or Retirement date, then by operation of this Section 4.2 hereof
and without any further
notice to the Participant all further Excess Pension Benefits shall be immediately forfeited.
In the event that a Participant has received a distribution of his or her Excess Pension Benefit,
and the Participant engages in any Harmful Activity prior to or within twelve months of his or her
Termination or Retirement, then in such event the Participant shall repay to the Corporation the
full amount of such distributed Plan benefits within 60 days following the Participant’s receipt of
the Corporation’s notice of such Harmful Activity.

5

 

     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 Termination or Retirement shall
be final and conclusive upon the Participant and upon all other Persons.

	 	 	 	For purposes of this Section 4.2, a “Harmful Activity” shall have occurred if the
Participant shall do any one or more of the following:

	 	(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.

6

 

	 	(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 4.2 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.

     4.3 Payment Upon Death of Participant.

     (a) Upon the death of a Participant who has met the service requirement of Section 3.1, but
who has not yet commenced distribution of his or her Excess Pension Benefit, there shall be paid to
the Participant’s Beneficiary the Excess Pension Benefit that the Participant would have been
entitled to receive had the Participant retired on his or her date of death and commenced
distribution of his or her Excess Pension Benefit. Such Excess Pension Benefit shall be paid in
the form of a single life annuity.

     (b) In the event of a Participant’s death after the Participant has commenced distribution of
his or her Excess Pension Benefit, there shall be paid to the Participant’s Beneficiary only those
survivor benefits provided under the form of benefit payment elected by the Participant.

     4.4 Distribution of Small Accounts. Notwithstanding any Plan provision other than
Section 4.5 hereof, if the value of a Participant’s vested Excess Pension Benefit as of the
Participant’s Termination date is under $50,000, such balance shall be distributed to the
Participant as a single lump sum distribution as soon as reasonably practicable following the
Participant’s Termination or Retirement date.

     4.5 Payment Limitation for Key Employees. Notwithstanding any other provision of the
Plan to the contrary, 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 Excess Pension Benefit may not be
made before the date which is six months after the Participant’s date of separation from service
(or, if earlier, the date of death of the Participant). 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

 

ARTICLE V

DISTRIBUTION OF LARGEST PLAN BENEFIT

     5.1 Distribution of Largest Plan Benefit. Unless otherwise previously elected by the
Participant, a Participant who meets the eligibility requirements for an Excess Pension Program
Benefit and who also meets the eligibility requirements for an Executive Supplemental Pension
Program Benefit, shall automatically be provided at the Participant’s Termination or Retirement the
larger of the two Program benefits (i.e. the greater of the Participant’s Excess Pension Program
Benefit or the Participant’s Executive Supplemental Pension Program Benefit).

     In making the determination required under this Section 5.1 hereof, the Corporation shall rely
upon calculations made by independent actuaries for the Pension Plan, who shall apply the actuarial
assumptions and interest rate then in use under the Pension Plan for converting the Participant’s
Excess Pension Program Benefit to a single life annuity form of payment. The Participant
automatically shall receive the Program Benefit that provides the Participant with the largest
monthly single life annuity benefit.

     5.2 Beneficiary Distribution of Largest Plan Benefit.

	 	(a)	 	Upon the death of a Participant meeting eligibility requirements for an Excess
Pension Program Benefit and the eligibility requirements for an Executive Supplemental
Pension Program Benefit there shall be paid to the Participant’s Beneficiary the larger
of the two Programs’ death benefit. Such death benefit shall be paid to the
Beneficiary in the form of a single life annuity.
	 
	 	(b)	 	In the event of a Participant’s death after the Participant has commenced
distribution of his or her Plan benefit, there shall be paid to the Participant’s
Beneficiary only those survivor benefits provided under the form of benefit payment
elected by the Participant.

ARTICLE VI

ADMINISTRATION

     6.1 Administration. The Corporation, which shall be the “Administrator” of the Plan
for purposes of ERISA and the “Plan Administrator” for purposes of the Code, 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 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 Plan Administrator may employ such
attorneys, investment counsel, agents, and accountants as it may deem necessary or advisable to
assist it

8

 

in carrying out its duties hereunder. The actions taken and the decisions made by the
Plan Administrator hereunder shall be final and binding upon all interested parties subject,
however, to the provisions of Section 6.2. The Plan Year, for purposes of Plan administration,
shall be the calendar year.

     6.2 Claims Review Procedure. Whenever the Plan Administrator decides for whatever
reason to deny, whether in whole or in part, a claim for benefits under the 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 the
Claimant receives such notice, Claimant 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 Claimant’s authorized representative may request that the claim denial be reviewed by filing
with the Plan Administrator a written request therefore, which request shall contain the following
information:

	 	(i)	 	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 (i);
	 
	 	(ii)	 	the specific portions of the denial of the Claimant’s claim which the Claimant
requests the Plan Administrator to review;
	 
	 	(iii)	 	a statement by the Claimant setting forth the basis upon which Claimant
believes the Plan Administrator should reverse its previous denial of the Claimant’s
claim and accept the Claimant’s claim as made; and
	 
	 	(iv)	 	any written material which the Claimant desires the Plan Administrator to
examine in its consideration of the Claimant’s position as stated pursuant to paragraph
(iii) above.

     In accordance with this Section, if the Claimant requests a review of the Plan Administrator’s
decision, such review shall be made by the Plan Administrator, which 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 VII

CORPORATE ASSETS

     All benefits paid under the Plan shall be payable solely out of the general assets of the
Corporation. The Corporation shall have no obligation to establish a trust to fund its obligation
to pay

9

 

benefits under the Plan or to insure any benefits under the Plan and 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 the Participant that the Plan be unfunded for tax purposes and for purposes of
Title I of the Employee Retirement Income Security Act of 1974, as amended. The Corporation may,
in its sole discretion, combine the payment due and owing under the Plan with one or more other
payments owing to the Participant or the Participant’s Beneficiary under any other plan, contract,
or otherwise (other than any payment due under the Pension Plan) in one check, direct deposit, wire
transfer, or other means of payment.

ARTICLE VIII

AMENDMENT AND TERMINATION

     8.1 Termination or Amendment. The Corporation reserves the right to amend or
terminate the Plan at any time by action of its Board of Directors, or any duly authorized
Committee thereof; provided, however, that no such action shall adversely affect any Participant
who has met the age and service requirements of Section 3.1 or any Participant or Participant’s
Beneficiary who is receiving or who is eligible to receive an Excess Pension Benefit hereunder,
unless an equivalent benefit is provided under another plan maintained by an Employer. No
amendment or termination will result in an acceleration of Excess Pension Benefits in violation of
Section 409A of the Code.

     8.2 Effect of Plan Termination. Notwithstanding anything to the contrary contained in
the Plan, the termination of the Plan shall terminate the liability of the Corporation and all
Employers to provide for future benefits under the Plan.

ARTICLE IX

MISCELLANEOUS

     9.1 Interest of Participant. The obligation of the Employer and of the Corporation to
provide a Participant or the Participant’s Beneficiary with an Excess Pension Benefit under the
Plan merely constitutes the unsecured promise of the Employer and the Corporation to make payments
as provided herein and no person shall have any interest in, or a lien or prior claim on any
property of the Employer or Corporation.

     9.2 Benefits. Nothing in the Plan shall be construed to confer any right or claim
upon any person, firm, or corporation other than the Participant and the Participant’s Beneficiary
who may become entitled to an Excess Pension Benefit under the Plan.

     9.3 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 benefit 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 the Participant’s Plan benefit shall be liable for or subject to the debts, contracts,
liabilities, or torts of the Participant or his or her Beneficiary. If the Participant or the
Participant’s Beneficiary becomes bankrupt or attempts to alienate, sell, assign, pledge, encumber,
or charge any right under the Plan or the Participant’s Plan benefit, such attempt shall be void
and unenforceable.

10

 

     9.4 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”
within the meaning of Sections 201, 301, and 401 of ERISA, and therefore is exempt from the
provisions of Parts 2, 3, and 4 of Title I of ERISA.

     9.5 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.

     9.6 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 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.

     9.7 Expenses. The Corporation will pay all Plan expenses.

     9.8 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.

     9.9 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.

     9.10 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 ERISA, the Code, and, to
the extent applicable, 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.

     9.11 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.

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

     9.13 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.

     9.14 Trust Fund. At its discretion, the Corporation may establish one or more trusts,
with such trustees as the Corporation may approve, for the purpose of providing for the payment of
benefits owed under the Plan. Although such a trust may be irrevocable in the event of insolvency
or bankruptcy of the Corporation, such assets will be subject to the claims of the Corporation’s
general creditors. To the extent any benefits provided under the Plan are paid from any such
trust, the Employer shall have no

11

 

further obligation to pay them. If not paid from the trust, such
benefits shall remain the obligation of the Employer.

     9.15 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

     9.16 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 X

CHANGE OF CONTROL

     Notwithstanding any other provision of the Plan to the contrary, in the event of a Change of
Control, a Participant’s interest in his or her Excess Pension Benefit shall vest, and the
Participant shall be entitled to receive an immediate distribution of his or her Excess Pension
Benefit, if on and after a Change of Control (i) the Participant’s employment is terminated by his
or her Employer and any other Employer without cause, or (ii) the Participant resigns within two
years following a Change of Control as a result of the Participant’s mandatory relocation,
reduction in the Participant’s base salary, reduction in the Participant’s average annual incentive
compensation (unless such reduction is attributable to the overall corporate or business unit
performance) or the Participant’s exclusion from stock option programs as compared to comparably
situated Employees.

     For purposes of this Article X hereof, “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.

ARTICLE XI

COMPLIANCE WITH

SECTION 409A CODE

     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

12

 

would result in early taxation or assessment of penalties or
interest of any amount under Section 409A of the Code.

     Notwithstanding any provision of the Plan to the contrary, the Participant’s Excess Pension
Benefits shall not be distributed to the Participant earlier than:

	 	(a)	 	the Participant’s separation from service, as determined by the Secretary of
the Treasury (except as provided below with respect to a key employee of the
Corporation);
	 
	 	(b)	 	the Participant’s Disability, or
	 
	 	(c)	 	the death of the Participant.

     If it is determined that a Participant constitutes a key employee (as defined in
Section 416(i) of the Code without regard to paragraph (5) thereof) of the Corporation, the
Participant shall not commence the distribution of his or her Excess Pension Benefits
before the date which is six months after the date of the Participant’s separation from
service (or, if earlier, the date of death of the Participant).

     IN WITNESS WHEREOF, KeyCorp has caused this KeyCorp Second Excess Cash Balance Pension Plan to
be executed by its duly authorized officer this 21st day of December, to be effective as of
January 1, 2005.

	 	 	 	 	 	 	 
	 	 	KEYCORP
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas E. Helfrich 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President	 	 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}]]