Document:

empagr.htm

Exhibit No. 10.29

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (this “Agreement”), is entered into as of the 1st  day of May, 2011, by and between John Wiley & Sons, Inc., a New York corporation, with offices at 111 River Street, Hoboken, New Jersey 07030 (hereinafter referred to as the “Company”), and Stephen M. Smith presently residing at XXXXXXXXXXXXXXXXXXXXXXXXX (hereinafter referred to as “Executive”), WHEREAS, the executive is currently employed as President & CEO of the Company, and Executive desires to serve the Company in such capacity.

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1.           Employment.  The Company agrees to employ Executive and Executive agrees to be employed by the Company for the Period of Employment (as defined below) and upon the terms and conditions provided in this Agreement.

 

2.           Position and Responsibilities.

 

(a)           During the Period of Employment, Executive will serve as President & CEO of the Company, and subject to the direction of the Company’s Board of Directors (“Board”) will perform such duties and exercise such supervision with regard to the business of the Company as are associated with such position, as well as such other duties as may be prescribed from time to time by the Board.  Executive shall be subject to and shall observe and carry out such reasonable rules, regulations, policies, directions and restrictions consistent with the duties to be performed by Executive hereunder as the Company shall from time to time establish.

 

(b)           Executive will, during the Period of Employment, devote Executive’s full business time and attention to the faithful and competent performance of services for the Company.  Executive hereby represents and warrants to the Company that Executive has no obligations under any existing employment or service agreement and that Executive’s performance of the services required of Executive hereunder will not conflict with any other existing obligations or commitments.  Nothing in this Agreement shall preclude Executive from engaging, consistent with Executive’s duties and responsibilities hereunder, in charitable and community affairs.

 

(c)           Executive shall perform the duties contemplated hereunder at the principal executive office of the Company and at such other locations as may be reasonably necessary to the performance of such duties, and Executive shall do such traveling as may be reasonably required of Executive in the performance of such duties.

 

3.           Period of Employment.  The period of Executive’s employment under this Agreement (the “Period of Employment”) will begin on May 1st, 2011 (the “Commencement Date”), and end on the second anniversary thereof, subject to earlier termination and further renewal as provided in this Agreement.  Executive’s Period of Employment shall automatically renew for subsequent two year periods, subject to the terms of this Agreement, unless either party gives written notice 90 days or more prior to the expiration of the then existing Period of Employment of Executive’s or the Company’s decision not to renew.  A decision by the Company not to renew other than as a result of Executive’s death or Disability (as defined below), and other than in circumstances which would give rise to a Termination for Cause (as defined below) shall be treated as a Without Cause Termination (as defined below), and so governed by the provisions of Section 9 hereof.

 

  

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4.           Compensation and Benefits.  For all services rendered by Executive pursuant to this Agreement during the Period of Employment, including services as an executive, officer, director or committee member of the Company or any of its subsidiaries or affiliates, Executive will be compensated as follows:

 

(a)           Base Salary.  The Company will pay Executive a fixed base salary (“Base Salary”) of not less than $800,000 per annum.  Executive will be eligible to receive annual increases as deemed appropriate by the Executive Compensation and Development Committee of the Board, in accordance with the Company’s customary procedures regarding the salaries of senior officers.  Base Salary will be payable according to the customary payroll practices of the Company but in no event less frequently than once each month.

 

(b)           Executive Compensation Plans.  Executive shall be eligible to participate in all of the Company’s executive compensation plans in effect on the date hereof in which any senior executive of the Company is eligible to participate, including but not limited to the Company’s Executive Annual Incentive Plan (the “EAIP”), the Company’s Annual Strategic Milestones Incentive Plan, and the Company’s Executive Long Term Incentive Plan (the “ELTIP”), or equivalents, as such plans are amended or restated from time to time, for so long as such plans remain in effect.  Nothing in this Agreement shall require the Company or its affiliates to establish, maintain or continue any executive compensation plan or restrict the right of the Company or any of its affiliates to amend, modify or terminate any such plan.

 

(c)           Participation in Benefit Plans.  To the extent that Executive’s participation or coverage is not duplicative of that provided under an executive compensation plan or arrangement in which Executive is eligible to participate, the Company shall afford Executive with an opportunity to participate in any health care, dental, disability insurance, life insurance, retirement, savings and any other employee benefits plans, policies or arrangements which the Company maintains for its employees in accordance with the written terms of such plans, policies or arrangements.  Nothing in this Agreement shall require the Company or its affiliates to establish, maintain or continue any benefit plans, policies or arrangements or restrict the right of the Company or any of its affiliates to amend, modify or terminate any such benefit plan, policy or arrangement.

 

Because the Executive has been a participant in the Company’s UK and US retirement plans at various points during his tenure at Wiley, his retirement benefit will be governed by Attachment A.  The terms and conditions of Attachment A are incorporated herein by reference and made a part of this Agreement as if fully set forth herein.

 

(d)           Vacations, Holidays or Temporary Leave. Executive shall be entitled to take five weeks of vacation per calendar year, or such greater amount, if any, as provided in the policies of the Company then applicable to Executive, without loss or diminution of compensation.  Such vacation shall be taken at such time or times consistent with the needs of the Company’s business.  Executive shall further be entitled to the number of paid holidays, and leaves for illness or temporary disability in accordance with the Company’s policies as such policies may be amended from time to time or terminated in the Company’s sole discretion.

 

5.           Other Offices.  Executive agrees to serve without additional compensation, if elected or appointed thereto, as an officer or director of any of the Company’s subsidiaries or affiliates or as any other officer of the Company.

 

  

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6.           Business Expenses.  The Company will reimburse Executive for all reasonable travel and other expenses incurred by Executive in connection with the performance of Executive’s duties and obligations under this Agreement.  Executive will comply with such limitations and reporting requirements with respect to expenses as may be established by Company from time to time and will promptly provide all appropriate and requested documentation in connection with such expenses.

 

7.           Disability.  If Executive becomes Disabled (as defined below) during the Period of Employment, the Company may, in its discretion, hire a permanent replacement to fill the position previously held and to perform the duties previously performed by Executive, provided, however, the Company shall continue Executive’s employment with the Company on an inactive basis to the extent necessary to continue to maintain Executive’s eligibility for benefits available under the Company’s Group Long-Term Disability Insurance Plan or under any generally similar plan then in effect (the “LTD Plan”) and such other employee benefit plans that are generally available to employees receiving benefits under the LTD Plan, in accordance with the terms of  such plan(s) as they may be amended from time to time.  For purposes of this Agreement, “Disabled” or “Disability” means Executive’s inability, because of mental or physical illness or incapacity, whether total or partial, to perform one or more of the primary duties of Executive’s employment, with or without reasonable accommodation, for a length of time that the Company determines is sufficient to satisfy such obligations as it may have under the Family and Medical Leave Act (“FMLA”) and such “reasonable accommodation” obligations it may have under federal, state or local disability laws.  Upon Executive’s entitlement to receive benefits available under the LTD Plan and such other benefits generally available to employees receiving benefits under the LTD Plan, the Company’s obligation to provide Executive compensation and other benefits pursuant to Section 4 hereof shall cease.  In the event that Executive ceases to be Disabled and Executive is able to return to work and Executive’s former position is not open, the Company will endeavor to find, and will work interactively with Executive to find, a position of comparable responsibility, compensation and benefits and to reinstate Executive to such position, if such a position is available at the conclusion of Executive’s disability leave of absence.  Prior to restoration of Executive to active employment with the Company, Executive shall cooperate in obtaining all fitness for duty certifications from Executive’s treating physician(s) and such other physicians as the Company may request in accordance with the FMLA and federal, state and local disability and worker’s compensation laws.  Within fifteen (15) days of receipt of all medical certification(s) requested by the Company, if the Company does not restore Executive to active employment with the Company, then at that time Executive’s employment with the Company will be deemed to have terminated. Under the policy currently in effect for employees of the Company, such termination will be treated as a Without Cause Termination in accordance with Paragraph 9(a) below, provided the Executive has not then attained the age of 65.  Nothing in this Agreement shall require the Company to continue such policy, and such termination shall be treated in accordance with the policy applicable at the time the Executive becomes disabled.

 

8.           Death.  In the event of the death of Executive during the Period of Employment, the Period of Employment will end and the Company’s obligation to make payments under this Agreement will cease as of the date of death, except that the Company will pay Executive’s beneficiary designated for purposes of Executive’s life insurance provided by the Company or absent such designation to Executive’s estate, Executive’s Base Salary until the end of the month in which Executive dies, and except for any rights and benefits of Executive under the benefit plans and programs of the Company including, without limitation, the SERP (as defined below) in which Executive is a participant, as determined in accordance with the terms and provisions of such plans and programs.  The payout under the EAIP, or equivalent, for the fiscal year in which Executive’s death occurs, shall be annualized and paid at the normal time to Executive’s estate pro rata to the date of death.  The payment, in shares, for any executive long term incentive plan established by the Company, the plan cycle of which ends within 12 months after the date of Executive’s death, shall be paid based on actual performance within 2 1⁄2 months after the end of the plan period to Executive’s estate.

 

  

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9.           Effect of Termination of Employment.

 

(a)           Without Cause Termination and Constructive Discharge Absent a Change of Control.  If Executive’s employment terminates during the Period of Employment prior to the occurrence of a Change of Control (as defined below) due to a Without Cause Termination (as defined below) or a Constructive Discharge (as defined below), subject to Executive executing a general release of claims as more fully described in Section 9(e) hereof, then the Company will pay or provide Executive (or Executive’s surviving spouse, estate or personal representative, as applicable) the following payments and/or benefits upon such event:  (i) Base Salary earned but unpaid as of the effective date of such termination of employment; (ii) a lump sum payment equal to the Severance Pay Amount (as defined below); (iii) accelerated vesting of all earned but unvested restricted performance shares under any executive long term incentive plan established by the Company; (iv) all payments and benefits to which Executive may be entitled pursuant to the terms and conditions of the SERP; (v) all payments and benefits to which Executive may be entitled pursuant to the terms and conditions of the Company’s Non-Qualified Supplemental Benefit Plan; and (vi) coverage during the Benefits Continuation Period (as defined below) under the following employee benefit plans or provisions for comparable benefits outside such plans, but only to the extent comparable coverage is not provided by any new employer, (x) the Company’s Group Health Insurance Program, (y) the LTD Plan (as provided under such plan, Executive shall be required to pay the premium), and (z) the Company’s Group Life and Accidental Death and Dismemberment Insurance (at the levels in effect at the date of termination of employment).  If coverage under clause (v) cannot be provided on a tax-advantaged basis under the Company’s employee benefit programs, the Company will make a supplemental lump-sum payment to the Executive such that his after-tax cost of coverage will be no greater than the cost for such coverage to a similarly-situated employee under the respective program.  Any increase in premium cost resulting from a change in the Executive’s coverage election shall be borne by the Executive.  In order to receive such continued medical and dental coverage, the Executive must be eligible for and elect continuation coverage under “COBRA” under the terms of the applicable program for the first 18 months of such coverage.

 

(b)           Without Cause Termination and Constructive Discharge Following a Change of Control.  If Executive’s employment terminates during the Period of Employment due to a Without Cause Termination or a Constructive Discharge within the twenty-four (24) month period following a Change of Control, then, subject to Executive executing a general release of claims as more fully described in Section 9(e) hereof, in addition to the payments and benefits described in 9(a) hereof, but excluding 9(a)(iii) thereof, the Company will provide Executive (or Executive’s surviving spouse, estate or personal representative, as applicable) the following payments and/or benefits upon such event:  (i) the “target incentive amount” under any executive annual incentive plan established by the Company for the fiscal year in which Executive’s termination of employment occurs, prorated to reflect Executive’s partial year of employment; (ii) accelerated vesting of all “target” restricted performance shares awarded to Executive under any executive long term incentive plan established by the Company  outstanding on the date of Change in Control but not yet vested; and  (iii) accelerated vesting of all other stock options and restricted stock granted to Executive under any executive long term incentive plan established by the Company outstanding on the date of the Change in Control but not yet vested on the effective date of termination of employment.

 

  

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(c)           Termination for Cause; Resignation.  If Executive’s employment terminates due to a Termination for Cause (as defined below) or a Resignation (as defined below), Base Salary earned but unpaid as of the date of such termination will be paid to Executive in a lump sum and the Company will have no further obligations to Executive hereunder.  In the event any termination of Executive’s employment for any reason, Executive if so requested by the Company agrees to assist in the orderly transfer of authority and responsibility to Executive’s successor.

 

(d)           Definitions.  For purposes of this Agreement, the following capitalized terms have the following meanings:

 

(i)           “Benefits Continuation Period” means that number of months which is equal to the number of months of Base Salary that Executive receives as a lump sum severance payment in accordance with Section 9(a) hereof.

 

(ii)           “Change of Control” shall have the meaning set forth in the SERP.

 

(iii)           “Constructive Discharge” means:  (A) any material failure by the Company to fulfill its obligations under this Agreement (including, without limitation, any reduction of Base Salary, as the same may be increased during the Period of Employment, or other material element of compensation);  (B) a material and adverse change to, or a material reduction of, Executive’s duties and responsibilities to the Company;  or (C) the relocation of Executive’s primary office to any location more than fifty (50) miles from the Company’s principal executive offices, resulting in a materially longer commute for Executive.  Executive will provide the Company a written notice which describes the circumstances being relied upon for all terminations of employment by Executive resulting from any circumstances claimed to be a Constructive Discharge thirty (30) days after the event giving rise to the notice.  The Company will have thirty (30) days after receipt of such notice to remedy the situation prior to Executive’s termination of employment due to a Constructive Discharge.

 

(iv)           “Resignation” means a termination of Executive’s employment by Executive, other than in connection with Executive’s Disability pursuant to Section 7 hereof, Death pursuant to Section 8 hereof or Constructive Discharge pursuant to Sections 9(a) or 9(b) hereof.  A termination of Executive’s employment under this Agreement shall mean the ceasing of employment with the Company.  For purposes of this Agreement:

 

	
  

	
(A)

	
the Executive shall not be treated as having incurred a voluntary termination of employment while on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Executive’s right to reemployment with the Company is provided either by statute or by contract.  If the period of leave exceeds six months and the right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period.

 

	
  

	
(B)

	
Whether the Executive shall have incurred a termination of employment shall be determined based on all relevant facts and circumstances.  In situations in which the Executive continues to be carried on the payroll of the Company but performs only nominal services, or ceases to be an employee but continues to provide substantial services in another capacity, such as pursuant to a consulting agreement, the determination of whether a termination of employment has occurred shall be determined in accordance with Final Regulations Section 1.409A-1(h)(1)(ii), or any successor thereto.

 

  

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(v)           “SERP” means the Company’s Supplemental Executive Retirement Plan, as amended or restated from time to time.

 

(vi)           “Severance Pay Amount” means, with respect to a termination of employment covered under Section 9(a), the Executive’s then current Base Salary payable during one month multiplied by twenty four (24).  “Severance Pay Amount” means, with respect to a termination of employment covered under Section 9(b), the sum of Executive’s then current Base Salary payable during one month, plus one-twelfth of Executive’s most recent target annual incentive under any executive annual incentive plan established by the Company, multiplied by twenty-four (24).

 

(vii)           “Termination for Cause” means:  (A) Executive’s refusal  or willful and continued failure to substantially perform Executive’s material duties to the best of Executive’s ability under this Agreement (for reasons other than death or disability), in any such case after written notice thereof; (B) Executive’s gross negligence in the performance of Executive’s material duties under this Agreement; (C) any act of fraud, misappropriation, material dishonesty, embezzlement, willful misconduct or similar conduct; (D) Executive’s conviction of or plea of guilty or nolo contendere to a felony or any crime involving moral turpitude; or (E) Executive’s material and willful violation of any of the Company’s reasonable rules, regulations, policies, directions and restrictions.

 

(viii)           “Without Cause Termination” or “Terminated Without Cause” means termination of Executive’s employment by the Company other than in connection with Executive’s Disability pursuant to Section 7 hereof, death pursuant to Section 8 hereof or Constructive Discharge pursuant to Sections 9(a) and 9(b) hereof, or the Company’s Termination for Cause of Executive.

 

(e)           Conditions to Payment.  All payments and benefits due to Executive under this Section 9 shall be contingent upon the execution by Executive (or Executive’s beneficiary or estate) of a general release of all claims to the maximum extent permitted by law against the Company, its affiliates, and their current and former officers, directors, employees and agents in such form as determined by the Company in its sole discretion.

 

(f)           No Other Payments.  Except as provided in this Section 9, Executive shall not be entitled to receive any other payments or benefits from the Company due to the termination of Executive’s employment, including but not limited to, any employee benefits under any of the Company’s employee benefits plans or arrangements (other than at Executive’s expense under the Consolidated Omnibus Budget Reconciliation Act of 1985 or pursuant to the written terms of any pension benefit plan in which Executive is a participant in which the Company may have in effect from time to time) or any right to severance benefits.  Notwithstanding the foregoing sentence, in the event of a termination of employment by Executive under the circumstances described in Section 9(b) hereof following a Change of Control, nothing in this Agreement shall reduce Executive’s entitlement, if any, to any payment or benefit pursuant to the ELTIP resulting from Executive’s termination of employment following a Change of Control.

 

  

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(g)           Conditional Payments and Limitations.

 

(i)           In the event that (A) any payment or benefit received or to be received by Executive pursuant to the terms of this Agreement or of any other plan, arrangement or agreement of the Company (or any affiliate) (together, the “Payments”) would, in the opinion of independent tax counsel selected by the Company and reasonably acceptable to Executive (“Tax Counsel”), be subject to the excise tax (the “Excise Tax”) imposed by section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (in whole or in part), determined as provided below, and (B) the present value of the Payments is less than 115% of the present value of an amount calculated such that no portion of the Payments would be subject to the Excise Tax, then the Payments shall be reduced (but not below zero) until no portion of the payments would be subject to the Excise Tax.  In the event that (C) the Payments would, in the opinion of Tax Counsel, be subject to the Excise Tax (in whole or in part), determined as provided below, and (D) the present value of the Payments is equal to or greater than 115% of the present value of an amount calculated such that no portion of the Payments would be subject to the Excise Tax, then the Company shall pay to Executive, at the time specified in Section 9(g)(vi) below, an additional amount (the “Gross-Up Payment”) such that the net amount retained by Executive, after deduction of the Excise Tax on the Payments and any federal, state and local income tax and Excise Tax upon the Gross-Up Payment provided for by this Section 9(g), and any interest, penalties or additions to tax payable by Executive with respect thereto, shall be equal to the total present value of the Payments at the time such Payments are to be made.

 

(ii)           For purposes of determining whether any of the Payments will be subject to the Excise Tax and the amounts of such Excise Tax:  (1) the total amount of the Payments shall be treated as “parachute payments” within the meaning of section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of section 280G(b)(1) of the Code shall be treated as subject to the Excise Tax, except to the extent that, in the opinion of Tax Counsel, a Payment (in whole or in part) does not constitute a “parachute payment” within the meaning of section 280G(b)(2) of the Code, or such “excess parachute payments” (in whole or in part) are not subject to the Excise Tax; (2) the amount of the Payments that shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the Payments or (B) the amount of “excess parachute payments” within the meaning of section 280G(b)(1) of the Code (after applying clause (1) hereof); and (3) the value of any noncash benefits or any deferred payment or benefit shall be determined by Tax Counsel in accordance with the principles of sections 280G(d)(3) and (4) of the Code.

 

(iii)           In the event that by reason of the application of this Section 9(g), the Payments to Executive shall be reduced.  Such reduction shall be applied to the Payments to be made soonest in time to the Executive’s termination of employment, to the extent necessary to avoid Excise Tax.

 

 (iv)           For purposes of determining the amount of the Gross-Up Payment, Executive shall be deemed to pay federal income taxes at the highest marginal rates of federal income taxation applicable to the individuals in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rates of taxation applicable to individuals as are in effect in the state and locality of Executive’s residence in the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes that can be obtained from deduction of such state and local taxes taking into account any limitations applicable to individuals subject to federal income tax at the highest marginal rates.

 

  

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(v)           The Gross-Up Payment provided for in Section 9(g)(i) hereof shall be made upon the earlier of (A) the making to Executive of any Payment or (B) the imposition upon Executive or payment by Executive of any Excise Tax.

 

(vi)           If it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding or the opinion of Tax Counsel that the Excise Tax on Covered Payments is less than the amount taken into account under Section 9(g)(i) hereof, Executive shall repay to the Company within five days of Executive’s receipt of notice of such final determination or opinion the portion of the Gross-Up Payment attributable to such reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income tax imposed on the Gross-Up Payment being repaid by Executive if such repayment results in a reduction in Excise Tax or a federal, state and local income tax deduction) plus any interest received by Executive on the amount of such repayment.  If it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding or the opinion of Tax Counsel that the Excise Tax on Covered Payments exceeds the amount taken into account hereunder (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of such excess within five days of the Company’s receipt of notice of such final determination or opinion.  Executive acknowledges that the timing of the Gross-Up Payment made by the Company to the Executive pursuant to Section 9(g) hereof is for the benefit of the Executive, and that any repayment of such Gross-Up Payment by Executive to the Company that may subsequently be required pursuant to this Section 9(g)(vi) is solely for the purposes of the Company’s recoupment of compensation that the Company overpaid to Executive.

 

(h)           Timing of Severance Payments and Compliance with Code Section 409A.

 

(i)           Payments of earned but unpaid Base Salary required to be made under Section 9(a)(i) shall be made as of the next regular payroll date following the Executive’s termination of employment.

 

(ii)           Payments of Severance Pay Amounts required to be made under Section 9(a)(ii) shall be made within ten business days following the later of the date the Company receives the release of claims described in Section 9(e) properly executed by the Executive, and the expiration of any period permitted for the Executive to revoke the Agreement after its execution; provided, however, that in no event may Executive return the executed release of claims later than 90 days after termination of employment (or, if earlier, the end of the second month following the later of the end of the Company’s taxable year or the Executive’s taxable year).

 

(iii)           The reimbursement of an eligible expense hereunder, including any reimbursement of taxes, shall be made promptly upon the Executive’s submission of request for reimbursement, accompanied by evidence of such expense reasonably acceptable to the Company, but in any event on or before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred; provided, however, that the supplemental payment with respect to the tax cost of continuation employee benefit coverage under Section 9(a) shall be paid under Section 9(h)(ii) above.

 

  

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(iv)           The payment of “earned but unvested restricted performance shares” as described in Section 9(a)(iii), “target incentive amounts” as described in Section 9(b)(i) and “target” restricted performance shares as described in Sections 9(b)(ii) shall be made as described in Section 9(h)(ii).

 

(v)           Each of the payments and benefits under Section 9(a) or (b) above are designated as separate payments for purposes of the short-term deferral rules under Treasury Regulation Section 1.409A-1(b)(4)(i)(F), the exemption for involuntary terminations under separation pay plans under Treasury Regulation Section 1.409A-1(b)(9)(iii), and the exemption for medical expense reimbursements under Treasury Regulation Section 1.409A-1(b)(9)(v)(B).  As a result, (1) any payments that become vested as a result of a qualifying termination that are made on or before the 15th day of the third month following the later of the end of the Company’s taxable year or the end of the Executive’s taxable year in which occurs the Executive’s termination of employment, (2) any additional payments that are made on or before the last day of the second calendar year following the year of the Executive’s termination and do not exceed the lesser of two times Base Salary or two times the limit under Code Section 401(a)(17) then in effect, and (3) the payment of medical expenses within the applicable COBRA period, are exempt from the requirements of Code Section 409A.  If Executive is designated as a “specified employee” within the meaning of Code Section 409A and Section 3.6 of the SERP, to the extent that any deferred compensation payments to be made during the first six month period following Executive’s termination of employment exceed such exempt amounts, the payments shall be withheld and the  amount of the payments withheld will be paid in a lump sum (with interest at the rate paid on 12-month Treasury bills as of the date of Executive’s termination of employment), during the seventh month after Executive’s termination.  The Company shall identify in writing delivered to the Executive any payments it reasonably determines are subject to delay under this Section 9(h)(v).  In no event shall the Company have any liability or obligation with respect to taxes for which the Executive may become liable as a result of the application of Code Section 409A.

 

10.           Other Duties of Executive During and After the Period of Employment.

 

(a)           Non-Competition and Non-Disclosure Agreement.  Simultaneously with the execution of this Agreement, Executive agrees to execute and to comply with the terms of the Non-Competition and Non-Disclosure Agreement (hereinafter referred to as the “Non-Competition Agreement”) in the form provided to Executive by the Company.  The terms and conditions of the Non-Competition Agreement are incorporated herein by reference and made a part of this Agreement as if fully set forth herein.

 

(b)           Agreement to Arbitrate.  Simultaneous with the execution of this Agreement, Executive agrees to execute and to comply with the terms of the Agreement to Arbitrate (hereinafter referred to as the “Agreement to Arbitrate”) in the form provided to Executive by the Company.  The terms and conditions of the Agreement to Arbitrate are incorporated herein by reference and made a part of this Agreement as if fully set forth herein.

 

11.           Indemnification.  The Company will indemnify Executive to the fullest extent permitted by the laws of the state of the Company’s incorporation in effect at that time, or the certificate of incorporation and by-laws of Company, whichever affords the greater protection to Executive.

 

12.           Mitigation.  Executive will not be required to mitigate the amount of any payment provided for hereunder by seeking other employment or otherwise, nor will the amount of any such payment be reduced by any compensation earned by Executive as the result of employment by another employer after the date Executive’s employment hereunder terminates.

 

  

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13.           Withholding Taxes.  Executive acknowledges and agrees that the Company may directly or indirectly withhold from any payments under this Agreement all federal, state, city or other taxes that will be required pursuant to any law or governmental regulation.

 

14.           Effect of Prior Agreements.  This Agreement, together with the Non-Competition Agreement and the Agreement to Arbitrate, constitute the sole and entire agreements and understandings between Executive and the Company with respect to the matters covered thereby, and there are no other promises, agreements, representations, warranties or other statements between Executive and the Company in respect to such matters not expressly set forth in these agreements.  These agreements supersede all prior and contemporaneous agreements, understandings or other arrangements, whether written or oral, concerning the subject matter thereof.  Upon execution of this Agreement, Executive’s existing employment agreement with the Company shall be superseded by this Agreement in its entirety and shall be of no further force and effect.

 

15.           Notices.  Any notice required, permitted, or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered in person or sent by registered or certified mail, return receipt requested, postage and fees prepaid, as follows:

 

If to the Company, at:

John Wiley & Sons, Inc.

111 River Street

Hoboken, New Jersey 07030

Attention:  SVP, Human Resources

with a copy to:

John Wiley & Sons, Inc.

111 River Street

Hoboken, New Jersey 07030

Attention: General Counsel

If to Executive, at:

 

XXXXXXXXXXXXXX

                XXXXXXXXXXXXXX

__________________

Either of the parties hereto may at any time and from time to time change the address to which notices shall be sent hereunder by notice to the other party.

 

  

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16.            Assignability.  The obligations of Executive may not be delegated and, except as expressly provided in Section 8 hereof relating to the designation of a beneficiary in the event of death, Executive may not, without the Company’s written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest therein.  Any such attempted delegation or disposition shall be null and void and without effect.  The Company and Executive agree that this Agreement and all of the Company’s rights and obligations hereunder may be assigned or transferred by the Company to and may be assumed by and become binding upon and may inure to the benefit of any affiliate of or successor to the Company.  The term “successor” shall mean (with respect to the Company or any of its subsidiaries) any other corporation or other business entity which, by merger, consolidation, purchase of the assets, or otherwise, acquires all or a material part of the assets of the Company.  Any assignment by the Company of its rights or obligations hereunder to any affiliate of or successor to the Company shall not be a termination of employment for purposes of this Agreement.

 

17.           Modification.  This Agreement may not be modified or amended except in writing signed by the parties.  No term or condition of this Agreement will be deemed to have been waived except in writing by the party charged with waiver.  A waiver will operate only as to the specific term or condition waived and will not constitute a waiver for the future or act on anything other than that which is specifically waived.

 

18.           Governing Law.  This Agreement will be construed and interpreted pursuant to the laws of the State of New York, without regard to such State’s conflict of law rules.

 

19.           Separability.  All provisions of this Agreement are intended to be severable.  In the event any provision or restriction contained herein is held to be invalid or unenforceable in any respect, in whole or in part, such finding will in no way affect the validity or enforceability of any other provision of this Agreement.  The parties hereto further agree that any such invalid or unenforceable provision will be deemed modified so that it will be enforced to the greatest extent permissible under law, and to the extent that any court of competent jurisdiction determines any restriction herein to be unreasonable in any respect, such court may limit this Agreement to render it reasonable in the light of the circumstances in which it was entered into and specifically enforce this Agreement as limited.

 

20.           No Waiver:  No course of dealing or any delay on the part of the Company or Executive in exercising any rights hereunder shall operate as a waiver of any such rights.  No waiver of any default or breach of this Agreement shall be deemed a continuing waiver of any other breach or default.

 

21.           Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

  

11  

  

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered, effective as of the date first indicated above by a duly authorized officer of the Company.

  

	
EXECUTIVE:

 

	
JOHN WILEY & SONS, INC.

	
/s/ Stephen M. Smith

	
By:

	
/s/ Peter B. Wiley

	
Signature

	  	
Signature

 

	
Stephen M. Smith      

	  	
Peter B. Wiley        

	
Print name

 

	  	
Print name

	
9/17/10                         

	  	
Chairman                 

	
Date signed

	  	
Title

 

	  	  	
9/17/10                     

	  	  	
Date signed

  

12Exhibit 4.1

MARSHALL & ILSLEY CORPORATION

AMENDED AND RESTATED

EXECUTIVE DEFERRED COMPENSATION PLAN

as amended as of August 19, 2010

ARTICLE I

Establishment of Plan and Purpose

1.01.  Establishment of Plan.  Marshall & Ilsley Corporation has established the 

Marshall & Ilsley Executive Deferred Compensation Plan, effective as of January 1, 1997 (the “Plan”).

1.02.  Purpose of Plan.  The Plan shall permit a select group of senior management and highly compensated employees to enhance the security of themselves and their beneficiaries following the termination of their employment with the Companies (as defined herein) by deferring until that time a portion of the compensation which may otherwise be payable to them at an earlier date (including the deferral of stock option gains and receipt of restricted stock).  By allowing key management employees to participate in the Plan, the Company expects the Plan to benefit it in attracting and retaining the most capable individuals to fill its executive positions in the Companies.

The parties intend that the arrangements described herein be unfunded for purposes of Title I in the Employee Retirement Income Security Act as amended from time to time.

ARTICLE II

Definitions and Construction

As used herein, the following words shall have the following meanings:

2.01.  Definitions.

(a)

Accounts. The accounts maintained for each Participant pursuant to Article V, below.

(b)

Administrator.  The person or persons selected pursuant to Article VIII below to control and manage the operation and administration of the Plan.

(c)

Affiliate.  Any corporation or other entity which directly or indirectly controls, is controlled by, or under common control with, the referenced entity.  Control means the ability to elect a majority of the Board of Directors of the corporation or other entity, or if there is no Board of Directors, a majority of the body which governs the entity.

(d)

Beneficiaries.  Those persons designated by a Participant to receive benefits hereunder or, failing such a designation, the spouse or, if none, the Estate of a Participant.

(e)

Change in Control.  Change in Control shall have the same meaning as in the Marshall & Ilsley Corporation 2010 Equity Incentive Plan.

(f)

Committee.  The Compensation and Human Resources Committee of the Board of Directors of the Company.

(g)

Common Stock.  The authorized and issued or unissued $1.00 par value common stock of the Company.

(h)

Companies.  Prior to the Separation Transaction, Marshall & Ilsley Corporation and any subsidiary thereof.  After the Separation Transaction, the publicly-traded corporation with the name Marshall & Ilsley Corporation, and all entities that are Affiliates thereof.

(i)

Company.  Prior to the Separation Transaction, Marshall & Ilsley Corporation, a Wisconsin corporation, or a successor thereof.  After the Separation Transaction, the “Company” means the publicly-traded corporation with the name Marshall & Ilsley Corporation.

(j)

Company Contributions.  The amount contributed or credited by the Company to the account of the Participant pursuant to Section 4.05 hereof.

(k)

Compensation.  The total of the Participant’s base salary, commissions, bonuses, and incentive pay which shall include amounts deferred by the Participant under this Plan or any other employee benefit plan of the Company.  In all cases, Compensation shall include only compensation paid while an employee is a Participant in the Plan.  Compensation shall not include any severance or salary continuation payments.

(l)

Disability.  Disability as defined in the Company’s Long-Term Disability Income Plan.

(m)

Employee.  An employee of any one or more of the Companies.

(n)

Employment.  Employment with any one or more of the Companies.

(o)

Fair Market Value.  The closing sale price of the Common Stock and/or the Fidelity Stock, as the context requires, on the New York Stock Exchange as reported in the Midwest Edition of the Wall Street Journal for the applicable date; provided that, if no sales of Common Stock or Fidelity Stock were made on said exchange on that date, “Fair Market Value” shall mean the closing sale price of the Common Stock or Fidelity Stock, as applicable, as reported for the next succeeding day on which sales of Common Stock or Fidelity Stock are made on said exchange, or, failing any such sales, such other market price as the Committee may determine in conformity with pertinent law and regulations of the Treasury Department.

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(p)

Fidelity.  Fidelity National Information Services, Inc., the successor by merger to Metavante.

(q)

Fidelity Stock.  The class of common stock of Fidelity traded on the New York Stock Exchange, which is the class of common stock received in exchange for Metavante Stock in the merger of these entities.

(r)

Investment Election.  The election by the Participant, from time to time, which designates the Participant’s investment choices.

(s)

Metavante.  After the Separation Transaction, the publicly-traded parent of the group of companies that includes the Company’s former subsidiary, Metavante Corporation.

(t)

Metavante Stock.  The class of common stock of Metavante that was traded on the New York Stock Exchange.

(u)

Net Shares.  Net Shares means the difference between the number of shares of Common Stock subject to a stock option for which an election has been made pursuant to Section 4.02 hereof, and the number of shares of Common Stock delivered, directly or by attestation, to satisfy the stock option exercise price.  The value of the Common Stock for purposes of determining the number of Net Shares shall be Fair Market Value.

(v)

Participants.  Such senior management and highly compensated Employees whom the Administrator has identified as eligible to defer Compensation hereunder and who elect to participate by deferring Compensation.

(w)

Plan.  The Marshall & Ilsley Corporation Executive Deferred Compensation Plan, as stated herein and as amended from time to time.

(x)

Plan Year.  The period beginning on January 1, 1997 and ending on December 31, 1997, and each 12-month period ending on each subsequent December 31.

(y)

Restricted Shares.  An award of stock under an Executive Stock Option and Restricted Stock Plan of the Company, or any similar plan, which may contain transferability or forfeiture provisions (including a requirement of future services), all as set forth in an award agreement.

(z)

Restricted Units.  Units held in a Participant’s Account B which are received upon surrender of Restricted Shares and have the same transferability or forfeiture provisions (including the requirement of future services) as the Restricted Shares surrendered in exchange therefor.  Each Restricted Unit represents one share of Common Stock, or one share of Fidelity Stock if the Restricted Unit was previously a Restricted Unit for Metavante Stock received as a result of the Separation Transactions, which became a Restricted Unit for Fidelity Stock after the merger of Metavante with Fidelity.

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(aa)

Retirement.  As to each Participant, the termination of his employment on or after attaining age 55, other than by reason of death or Disability, with at least 10 years of Service.

(bb)

Separation Transaction.  The transaction whereby Metavante and the Company become separate publicly-traded companies.

(cc)

Service.  As to each Participant, the period during which he has been employed by one or more of the Companies, including such period of time that he was employed by a predecessor in interest to one of the Companies.

(dd)

Trust.  The Company’s Deferred Compensation Trust III.

(ee)

Unforeseeable Emergency.  An Unforeseeable Emergency is a severe financial hardship to a Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Section 152(a) of the Internal Revenue Code) of the Participant or loss of the Participant’s property due to casualty or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

2.02.  Construction.   The laws of the State of Wisconsin, as amended from time to time, without giving effect to their conflict of laws provisions, shall govern the construction and application of this Agreement.  Words used in the masculine gender shall include the feminine and words used in the singular shall include the plural, as appropriate.  The words “hereof,” “herein,” “hereunder” and other similar compounds of the word “here” shall refer to the entire Agreement, not to a particular section.  All references to statutory sections shall include the section so identified as amended from time to time or any other statute of similar import.  If any provisions of the Internal Revenue Code, Employee Retirement Income Security Act or other statutes or regulations render any provisions of this Plan unenforceable, such provision shall be of no force and effect only to the minimum extent required by such law.  

ARTICLE III

Eligibility

3.01.  Conditions of Eligibility.  The Administrator shall, from time to time, specify the senior management and highly compensated Employees eligible to participate herein.  Eligibility to participate in the Plan for one Plan Year does not guarantee eligibility for a subsequent Plan Year.

3.02.  Commencement of Participation.  An individual identified as eligible to participate in the Plan for that Plan Year shall commence participation, by either (a) electing a deferral of Compensation, (b) electing a deferral of Net Shares, or (c) surrendering Restricted Shares for Restricted Units, on the applicable form provided by the Administrator, in accordance with the procedures established by this Plan and the Administrator.

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3.03.  Termination of Participation.  An individual’s right to (a) defer Compensation, (b) defer Net Shares (including exercise of the associated option) or (c) surrender Restricted Shares for Restricted Units hereunder ended as of December 31, 2004.

ARTICLE IV

Deferrals and Company Contributions

4.01.  Amount and Manner of Deferral of Compensation.  A Participant must sign and return the Deferral Election, substantially in the form of Exhibit B hereto, to the Company, no later than the date specified by the Company, indicating the amount of the Participant’s salary or other Compensation for such Plan Year which he elects to defer hereunder, which election shall become irrevocable immediately upon commencement of such Plan Year.  A Participant may defer (i) any portion not to exceed eighty percent (80%) of his base salary or (ii) up to 100% of his incentive or (iii) both, provided, however, that (a) the Participant may not defer less than $5,000 in a Plan Year and (b) the Participant’s deferral election for a Plan Year shall relate to Compensation earned by him during such Plan Year whether or not paid during that Plan Year.

If a Participant elects to defer a portion of his salary, the Company shall reduce the Participant’s regular salary by an equal amount in each pay period during the Plan Year of deferral.  If a Participant elects to defer all or a portion of his incentive, the Company shall reduce each such Compensation payment by the percentage or dollar amount elected by the Participant.

4.02.  Amount and Manner of Deferral of Net Shares.  A Participant must sign and return an Election to Defer Stock Option Gains, substantially in the form of Exhibit C hereto, to the Company, no later than the date specified by the Company, containing the information requested, which election shall become irrevocable immediately upon return to the Company.

4.03.  Amount and Manner of Deferral of Restricted Stock Units.  A Participant must return a Restricted Stock Unit Agreement, substantially in the form of Exhibit D hereto, to the Company, no later than the date specified by the Company, containing the information requested, which agreement shall become irrevocable immediately upon return to the Company.

4.04.  Cessation of Deferral.  In the event of an Unforeseeable Emergency, a Participant may request in writing that deferrals of Compensation elected by that Participant hereunder cease for the then current Plan Year.  Such Unforeseeable Emergency must inflict hardship upon the Participant and must arise from causes beyond the Participant’s control.  The Administrator shall, in its reasonable judgment, determine whether such an Unforeseeable Emergency exists.  Circumstances that will constitute an Unforeseeable Emergency shall depend on the facts of each case, consistent with the provisions of Treasury Regulation Section 1.457-2(h)(4) and (5).  If the Administrator determines that such an Unforeseeable Emergency exists, the deferrals of Compensation for such Plan Year shall cease as to the Participant.  If the Administrator determines that no such emergency exists, the deferrals shall continue as originally elected.  If a Participant, consistent with this paragraph, ceases deferrals in a Plan Year, the Participant may 

5

not resume deferrals of Compensation hereunder (if otherwise eligible therefore) until the second Plan Year following the Plan Year in which such cessation occurred.

4.05. Other Contributions.  In the event that deferrals made by a Participant pursuant to this Plan cause a reduction in the contributions by the Company for the benefit of that Participant to any other qualified or nonqualified retirement plan maintained by the Company, and such reduction is not contributed or credited to any other nonqualified retirement plan, the Company shall credit to the Participant’s account under this Plan an amount equal to such net reductions in benefits.  If, as a result of limitations contained in Sections 401(a)(17) and/or 415 of the Internal Revenue Code of 1986, as amended, or as a result of amounts deferred under the Plan, the contributions made to the profit sharing component of the retirement program of the Company on behalf of a person eligible to participate in the Plan are reduced, the Company shall credit an amount equal to such reduction to an account established for such person (the “SERP Account”).  The SERP Account shall be a separate bookkeeping account and shall vest once the person has five years of vesting service as determined under the profit sharing component of the retirement program of the Company, taking into account service prior to the date hereof.  Aside from the vesting requirement, the SERP Account shall be treated for all purposes of the Plan in the same manner as other Accounts.  In addition, to the extent any amounts owing to a Participant under any incentive compensation plan are in excess of amounts which would be deductible by the Company under Section 162(m) of the Internal Revenue Code of 1986, as amended, and the Committee requires that such excess amounts be deferred, such amounts shall be credited to the Participant's Account A, as provided below in Section 5.01.

ARTICLE V

Accounts

5.01.  Establishment of Accounts.  Only for the purpose of measuring payments due Participants hereunder, the Company shall maintain on behalf of each Participant two Accounts:  Account A and Account B.  All amounts deferred pursuant to Sections 4.01 and 4.05 shall be credited to Account A, which shall be denominated in cash.  All amounts deferred pursuant to Sections 4.02 and 4.03 shall be credited to Account B, which shall be denominated in shares of Common Stock or Fidelity Stock.

5.02.  Nature of Accounts.  The Accounts hereunder and assets, if any, acquired by the Company or Trust to measure a Participant’s benefits hereunder, shall not constitute or be treated for any reason as a trust for, property of or a security interest for the benefit of, a Participant, his Beneficiaries or any other person.  Participant and the Company acknowledge that the Plan constitutes a promise by the Company to pay benefits to the Participants or their Beneficiaries, that Participants’ rights hereunder (by electing to defer Compensation, Net Shares or Restricted Units hereunder) are limited to those of general unsecured creditors of the Company and that the establishment of the Plan, acquisition of assets to measure Participant’s benefits hereunder or deferral of all or any portion of a Participants’ Compensation, Net Shares or Restricted Units hereunder does not prevent any property of the Company or the Trust from being subject to the right of all the Company’s creditors.  The Company shall contribute all contributions hereunder 

6

to the Trust, which will conform in all material respects to the terms of the Internal Revenue Service’s model trust, as described in Revenue Procedure 92-64.

5.03.  Maintenance of Account A.

a.

Accounts shall be reconciled on a monthly or more frequent basis, at the Company’s election.  The Company shall increase the Account A of each Participant by (i) the amount, if any, of his Compensation deferred during any relevant period, (ii) the amount, if any, contributed by the Company pursuant to Section 4.05 hereof during the relevant period, and (iii) any income or gains resulting as if the Account A, computed in accordance with subsection b, below, were invested pursuant to the timely-filed Investment Election in effect for such time period and decrease each Participant’s Account A by (iv) any withdrawals or distributions from the Account A during any relevant period and (v) any losses resulting as if the Account A, computed in accordance with subsection b, below, were invested pursuant to the timely-filed Investment Election in effect for such relevant period.

b.

For purposes of computing the investment return on the Account A for any relevant period, the principal balance as of any day in any relevant period shall equal the balance as of the end of the preceding day.

5.04.  Maintenance of Account B.

a.

Accounts shall be reconciled on a monthly or more frequent basis.  The Company shall increase the Account B of each Participant by (i) the amount, if any, of the Net Shares deferred upon the exercise of a nonstatutory stock option by the Participant, (ii) the amount, if any, of the Restricted Units deferred by the Participant, (iii) any shares of Common Stock deemed purchased pursuant to Sections 5.05(b) or 5.06(b) (Net Shares, Restricted Units and deemed purchased shares of Common Stock being hereafter referred to as “Credited Shares”), and (iv) to the extent Credited Shares or shares of Fidelity Stock are held on the record date for any dividend, a number of additional Credited Shares or shares of Fidelity Stock resulting from the reinvestment of dividends on a common investment date, which will typically be any of the first five business days after the payment of the dividend, determined in the sole discretion of an independent brokerage agent.  The Company shall decrease each Participant’s Account B by (iv) any withdrawals or distributions from the Account B during the relevant period and (v) any Restricted Units which fail to vest because the Participant forfeits the Restricted Units and (vi) any shares of Fidelity Stock deemed sold pursuant to Section 5.06(b) or (c).  Consistent with the treatment of Restricted Shares, any dividends credited as regards Restricted Units shall not be forfeited, even if the Participant later forfeits the Restricted Units.

b.

In the event of any distribution with respect to Common Stock or Fidelity Stock other than a cash dividend, such as a stock split, stock dividend or similar transaction, each Participant’s Account B shall be credited with a number of additional shares or other consideration as determined by the Committee in its sole discretion.  Account B will be denominated in whole and fractional shares.  In clarification of the foregoing, upon the occurrence of the Separation Transaction, a Participant’s Account B held both Common Stock and Metavante Stock determined as if the Participant were a shareholder of the Company for the 

7

number of shares in his Account B (including Restricted Units) immediately prior to the Separation Transaction.  Upon the occurrence of the merger of Metavante with and into Fidelity, the relevant sub-account of a Participant’s Account B was credited with the appropriate number of shares of Fidelity Stock that the Participant would have received if he had held the Metavante Stock directly.

c.

In the event of a Change in Control or a Change in Control of any other corporation whose stock is held in Account B, a Participant’s Account B shall be credited with the same amount and type of consideration which a shareholder of the Company or such other corporation would have received holding the same number of shares of Common Stock or other corporation’s stock as are held in the Participant’s Account B at the time of the payment of the consideration.  If there is a shareholder election as to the type of consideration received in a Change in Control, a Participant’s Account B will be credited with consideration assuming that the Participant elected the maximum amount of stock which is available to electing shareholders, adjusted for any proration required because of over-subscription.

5.05.  Investment Elections for Account A.

a.

A Participant may file an Investment Election setting forth his investment preferences used to value his Account A.  The initial investment options available to Participants are (i) the Moody’s A Long-Term Corporate Bond Rate (the “Moody’s Option”) adjusted annually to equal the average yield for the month of September of the previous year and (ii) the total return of the Vanguard Institutional Index Fund (VINIX) for the applicable period (the “VINIX Option”).  All investment elections must be in increments of 10%.  If a Participant does not file an Investment Election, the Participant will be deemed to have elected the Moody’s Option.

b.

Starting with the Investment Election effective for the last business day of November, 2009 and continuing for all future Investment Elections, a Participant may elect to invest deferrals in Common Stock or transfer all or part of his amounts in Account A into Account B constructively holding Common Stock.  Amounts invested in, or transferred from Account A to, Account B may never be transferred to Account A, unless cash is received in a Change in Control, in which event it will automatically be transferred to Account A.  Subject to compliance with Section 5.05(c) hereof, the dollar amounts invested in Account B will be deemed invested in Common Stock on such date on or after the last business day of the applicable month as is practicable based on the purchase by the Marshall & Ilsley Corporation Amended And Restated Deferred Compensation Trust III (the “Trust”) of Common Stock on such date, which shares of Common Stock will then be credited to Account B denominated in Common Stock.  Any transaction costs incurred by the Trust will reduce the proceeds available to be deemed invested in Common Stock.

c.

The Participant may change his investment preferences monthly, no later than 3 PM Central Time on the last business day of an applicable month.  Notwithstanding the foregoing, if the Participant is subject to the Company’s insider trading policy, an Investment Election under Section 5.05(b) can only be made when the trading window is open, and will 

8

become irrevocable as to investments in Common Stock when the trading window closes, even if it is prior to the due date for the election.

d.

A Participant’s Account A shall reflect only the performance of the Moody’s Option or the VINIX Option, as applicable, and the Participant shall have no property right or security interest in the actual assets held by the Trust to provide for the payment of benefits under this Plan.  If a Participant does not file an Investment Election, the Participant will be deemed to have elected the Moody’s Option.

5.06  Investment Elections for Account B after the Separation Transaction and the Merger of Metavante and Fidelity.

a.

After the Separation Transaction, Account B of a Participant was credited with both Common Stock and Metavante Stock.  After the merger of Metavante with and into Fidelity, Account B of a Participant that previously held Metavante Stock was credited with Fidelity Stock in accordance with Section 5.04(c).

b.

The Participant may constructively sell any or all vested shares of Fidelity Stock by delivering to the Company a new Investment Election, no later than 3 PM Central Time on the last business day of such month, setting forth the number of shares to be sold.  The number of shares of Common Stock deemed purchased will equal the actual number of shares of Common Stock that were purchased with the proceeds recognized from the sale of such Fidelity Stock on or after the last business day of the applicable month by the Trust, which shares of Common Stock will then be credited to Account B.  Any transaction costs incurred by the Trust will reduce the proceeds available to be deemed invested in Common Stock.

c.

A Participant can make a deemed sale of Restricted Units of Fidelity Stock by delivering to the Company a new Investment Election, no later than 3 PM Central Time on the last business day of such month, setting forth the number of shares underlying the Restricted Units to be sold.  The number of shares of Common Stock deemed purchased will equal the actual number of shares of Common Stock that were purchased with the proceeds recognized from the sale of such Fidelity Stock on or after the last business day of such month by the Trust, which shares of Common Stock will then be credited to Account B.  Any transaction costs incurred by the Trust will reduce the proceeds available to be deemed invested in Common Stock.  Any restrictions governing the Restricted Stock Units of Fidelity Stock sold will govern the shares of Common Stock deemed purchased with the proceeds of the deemed sale of such Fidelity Stock.

d.

A Participant’s Account B shall reflect only the performance of Common Stock and Fidelity Stock, if any, which is held in such Account B, and the Participant shall have no property right or security interest in actual shares of Common Stock or Fidelity Stock held by the Trust to provide for the payment of benefits under this Plan. 

5.07.  Change of Accounts.  Once amounts have been allocated to Account B, these amounts must remain in Account B until such amounts are distributed to the Participant pursuant to Article VII hereof.  Notwithstanding the foregoing, if cash is received in connection with a 

9

Change in Control or other change in control, such cash will be automatically credited to Account A.  Upon a Change in Control, the Company, the Administrator, or any successor thereto, may not change the investment choices available to Participants hereunder without the consent of a majority of the holders of Account balances under the Plan.

ARTICLE VI

Vesting

Subject to the rights of the Company’s creditors as set forth in Section 5.02 above, the Account of a Participant, including all earnings accrued thereto, shall at all times be fully vested.  Notwithstanding the foregoing, Restricted Units will not become vested until all forfeiture provisions (including any requirement of future services) have been met.  If such forfeiture provisions are not met, the Restricted Units shall be forfeited and shall be subtracted from the applicable Account.

ARTICLE VII

Distributions

7.01.  For Reasons Other Than Death.  In the event that the value of a Participant’s Accounts exceeds $25,000 in total as of the quarter-end preceding his termination of employment, the Company shall pay an amount equal to the balance of a Participant’s Accounts to him in accordance with his choice on the form of Payment Election, substantially in the form attached hereto as Exhibit E.  A Participant may make a separate Payment Election for Account A and Account B.  Distributions from Account A shall be in cash and distributions from Account B shall be in Common Stock, except that distributions shall be of Fidelity Stock to the extent the amounts in Account B are denominated in shares of Fidelity Stock.

If a Participant’s employment terminates on or after age 55, other than because of death or Disability, and he has completed at least ten years of Service, he may elect to have his Account balance distributed in accordance with one or more of the following methods, in accordance with the provisions and limitations contained in the Form of Payment Election, as amended from time to time.

(a)

In a lump sum on or before February 15 of the year after the Participant’s employment terminates.

(b)

In monthly installments, starting on January 1st of the year after the Participant’s employment terminates, over 5 years using the declining balance method, computed annually.

(c)

In monthly installments, starting on January 1st of the year after the Participant’s employment terminates, over 10 years using the declining balance method, computed annually.

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(d)

In monthly installments, starting on January 1st of the year after the Participant’s employment terminates, over 15 years using the declining balance method, computed annually.

(e)

In monthly installments, starting on January 1st of the sixth year after the Participant’s employment terminates, over 5 years using the declining balance method, computed annually.

(f)

In monthly installments, starting on January 1st of the sixth year after the Participant’s employment terminates, over 10 years using the declining balance method, computed annually.

Notwithstanding the foregoing provisions of this Section 7.01, if the Participant’s employment terminates (i) prior to age 55, (ii) on or after age 55 because of death or Disability, or (iii) on or after age 55 with less than ten years of Service, and he has elected pay-out pursuant to one of the monthly installment options above, his Account balance will be paid in monthly installments, starting on January 1st of the year after his employment terminates, over 5 years, regardless of his election.  In addition, notwithstanding the foregoing, Common Stock, or, if applicable, Fidelity Stock, from Account B will be paid out on an annual basis starting on February 15 in the year after the Participant’s employment terminates.  Finally, a Participant’s election to have his Account paid out using more than one method will be respected, except that any monthly installment election will be limited to the five-year period set forth in the first sentence of this paragraph.

A Participant may change his Form of Payment Election at any time, however the change will only be effective if filed at least one year prior to his termination of Employment, except in the case of the initial election under the Plan.  Notwithstanding any other provision of this Section 7.01 and any election previously made by the Participant, in the event that the value of the Accounts of the Participant is less than $25,000 as of the quarter-end preceding the termination of Employment, any distribution to a Participant shall be in the form of a lump sum on or before February 15 of the year after the Participant’s employment terminates.  If a Participant does not timely file a Form of Payment Election, he will be deemed to have elected payment in a lump sum.  If a Participant files only one Form of Payment Election, it will be deemed to cover both Account A and Account B, unless the Participant otherwise designates.

7.02.  Upon Death.

a.

Upon a Participant’s death, any balance remaining in his Accounts shall be paid by the Company in accordance with his Form(s) of Payment Election except that such payments shall be made to the Beneficiary or Beneficiaries specified by the Participant or, if none, to his surviving spouse or, if none, to his Estate.  Each Participant may designate a Beneficiary or Beneficiaries to receive the unpaid balance of his Accounts upon his death and may revoke or modify such designation at any time and from time to time by submitting to the Administrator a Beneficiary Designation substantially in the form attached hereto as Exhibit D.

11

b.

If a Participant’s death occurs prior to the payment of any amounts to him hereunder, other than payments for emergencies, the Participant’s Beneficiaries shall receive payments in accordance with Section 7.01 hereof.

c.

If a Participant designates multiple Beneficiaries as either primary or contingent Beneficiaries, and one of the Beneficiaries has predeceased the Participant, the deceased Beneficiary’s share shall go to the Beneficiary’s Estate.  For example, if a Participant designates his spouse as the sole primary beneficiary and his three children as equal contingent beneficiaries, and if the spouse and one child predecease the Participant, the two children would each get one-third of the distributions from the Accounts and the predeceased child’s one-third share would go to his Estate.  The spouse’s Estate would be entitled to nothing.

d.

If a Beneficiary survives a Participant but dies prior to receipt of the entire amount in the Accounts due him, the Company shall make payments to the Estate of the Beneficiary in accordance with the Form of Payment Election.  For example, if the Participant’s spouse is his primary Beneficiary and his three children are his contingent Beneficiaries, and if the spouse survives the Participant such that she is receiving distributions pursuant to the terms of this Plan, but dies prior to the receipt of all distributions to which she is entitled, any remaining distributions shall be paid to the spouse’s Estate and not to the contingent beneficiaries.

7.03.  Emergencies.  In the event of an Unforeseeable Emergency either before or after the commencement of payments hereunder, a Participant or Beneficiary may request in writing that all or any portion of the benefits due him under Account A hereunder be paid prior to the normal time for payment of such amount.  The Administrator shall, in its reasonable judgment, determine whether the applicant could not address the emergency through reimbursement or compensation by insurance or otherwise, by liquidation of other assets (provided such liquidation, in itself, would not create a financial hardship) or by ceasing deferrals hereunder.  Only if the Administrator determines that such an Unforeseeable Emergency exists, the Company shall pay to the Participant or Beneficiary, as the case may be, an amount equal to the lesser of (a) the amount requested or (b) the amount reasonably necessary to alleviate the hardship.  The Administrator shall use its reasonable discretion to determine when the payments shall be made and shall immediately reduce the balance in the recipient’s Account A by the amount of such payment.

7.04.  Upon a Change in Control.  The Administrator may allow Participants to make a separate distribution election for Account A and/or Account B in the event of a Change in Control under certain circumstances, provided, that, the period over which distributions may be made shall in no event be longer than that applicable to the Participant under Section 7.01.  A Participant may change his payment election at any time, however the change will only be effective if filed at least one year prior to the Change in Control, except in the case of a Change in Control which occurs prior to December 31, 2004, in which event any election filed by December 31, 2003 will be effective.  Notwithstanding any other provision of this Section 7.04 and any election previously made by the Participant, in the event that the value of the Accounts of the Participant is less than $25,000 as of the quarter-end preceding the Change in Control, any distribution to a Participant shall be in the form of a lump sum on or before February 15 of the 

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year after the Change in Control.  If a Participant does not timely file a separate payment election in the event of a Change in Control, he will be deemed to have elected the same distribution schedule as the timely filed Form of Payment Election for Account A.  If no such election has been timely filed, then he will be deemed to have elected payment in a lump sum.

ARTICLE VIII

Administration of the Plan

8.01.  Appointment of Separate Administrator.  The Committee shall, in writing, appoint a separate Administrator.  Any person including, but not limited to, an Employee, shall be eligible to serve as Administrator.  Two or more persons may form a committee to serve as Administrator.  Persons serving as Administrator may resign by written notice to the Committee and the Committee may appoint or remove such persons.  An Administrator consisting of more than one person shall act by a majority of its members at the time in office.  An Administrator consisting of more than one person may authorize any one or more of its members to execute any document or documents on behalf of the Administrator, in which event the Administrator shall notify the Committee of the member or members so designated.  The Committee shall accept and rely upon any document executed by such member or members as written revocation of such designation.  No person serving as Administrator shall vote or decide upon any matter relating solely to himself or solely to any of his rights or benefits pursuant to the Plan.

8.02.  Powers and Duties.  The Administrator shall administer the Plan in accordance with its terms.  The Administrator shall have full and complete authority and control with respect to Plan operations and administration unless the Administrator allocates and delegates such authority or control pursuant to the procedures stated in subsection b. or c. below.  Any decisions of the Administrator or its delegate shall be final and binding upon all persons dealing with the Plan or claiming any benefit under the Plan.  The Administrator shall have all powers which are necessary to manage and control Plan operations and administration including, but not limited to, the following:

a.

To employ such accountants, counsel or other persons as it deems necessary or desirable in connection with Plan administration.  The Company shall bear the costs of such services and other administrative expenses.

b.

To designate in writing persons other than the Administrator to perform any of its powers and duties hereunder.

c.

The discretionary authority to construe and interpret the Plan, including the power to construe disputed provisions.  

d.

To resolve all questions arising in the administration, interpretation and application of the Plan including, but not limited to, questions as to the eligibility or the right of any person to a benefit.

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e.

To adopt such rules, regulations, forms and procedures from time to time as it deems advisable and appropriate in the proper administration of the Plan.

f.

To prescribe procedures to be followed by any person in applying for distributions pursuant to the Plan and to designate the forms or documents, evidence and such other information as the Administrator may reasonably deem necessary, desirable or convenient to support an application for such distribution.

8.03.  Records and Notices.  The Administrator shall maintain all books of accounts, records and other data as may be necessary for proper plan administration.

8.04.  Compensation and Expenses.  The expenses incurred by the Administrator in the proper administration of the Plan shall be paid by the Company.  An Administrator who is an Employee shall not receive any additional fee or compensation for services rendered as an Administrator.

8.05.  Limitation of Authority.  The Administrator shall not add to, subtract from or modify any of the terms of the Plan, change or add to any benefits prescribed by the Plan, or waive or fail to apply any Plan requirement for benefit eligibility.

8.06  Claims Procedures.  A Participant shall be entitled to make a request for any benefits to which the Participant believes he or she may be entitled.  Any such request must be made in writing, and it should be made to the Company.

A request for benefits will be considered a claim, and it will be subject to a full and fair review.  If a Participant’s claim is wholly or partially denied, the Company shall furnish the Participant or the Participant’s beneficiary (the “Claimant”) or the Claimant’s authorized representative with a written or electronic notice of the denial within a reasonable period of time (generally, 90 days after the Company receives the claim or 180 days, if the Company determines that special circumstances require an extension of time for processing the claim and furnishes written notice of the extension to the Claimant or the Claimant’s authorized representative before the initial 90-day period ends), which sets forth, in an understandable manner, the following information:

a.

The specific reason(s) for the denial of the claim;

b.

Reference to the specific provisions of the Plan on which the denial is based;

c.

A description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why that material or information is necessary; and

d.

A description of the review procedures and the time limits applicable to those procedures, including a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following a denial on review.

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The Company’s written extension notice must indicate the special circumstances requiring an extension of time for processing the claim and the date by which the Company expects to render its decision on the claim.

The Claimant or the Claimant’s authorized representative may appeal the Company’s decision denying the claim within 60 days after the Claimant or the Claimant’s authorized representative receives the notice denying the claim.  The Claimant or the Claimant’s authorized representative may submit to the Company written comments, documents, records and other information relating to the claim.  The Claimant or the Claimant’s authorized representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim.  The Company’s review of the claim and of its denial of the claim shall take into account all comments, documents, records and other information submitted by the Claimant or the Claimant’s authorized representative relating to the claim, without regard to whether these materials were submitted or considered during the initial decision on the claim.

The Company’s decision on the appeal of a denied claim shall be made within a reasonable period of time (generally 60 days after the Company receives the claim or 120 days if the Company determines that special circumstances require an extension of time for processing the claim and furnishes written notice of the extension to the Claimant or the Claimant’s authorized representative before the initial 60-day period ends indicating the special circumstances requiring extension of time and the date by which the Company expects to render its decision on the claim).  The Company will furnish the Claimant or the Claimant’s authorized representative with written or electronic notice of its decision on appeal.  In the case of a decision on appeal upholding the Company’s initial denial of the claim, the Company’s notice of its decision on appeal shall set forth, in an understandable manner, the following information:

a.

The specific reason(s) for the decision on appeal; 

b.

Reference to the specific provisions in the Plan on which the decision on appeal is based; 

c.

A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits; and

d.

A statement describing any voluntary appeal procedures (including voluntary arbitration or any other form of dispute resolution) offered and the Claimant’s right to obtain information sufficient to make an informed judgment about whether to submit a benefit dispute to the voluntary level of appeal, and a statement of the Claimant’s right to bring an action under ERISA Section 502(a).

ARTICLE IX

General Provisions

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9.01.  Assignment and Rights of Participant.  No Participant or Beneficiary may sell, assign, transfer encumber or otherwise dispose of the right to receive payments hereunder.  A Participant’s rights to benefit payments under the Plan are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment by creditors of a Participant or a Beneficiary.  No Participant or any other person shall have any interest in any fund or in any specific asset or assets of the Company by reason of any amounts credited to any Account hereunder, nor any right to exercise any of the rights or privileges of a stockholder with respect to any securities hypothetically credited to a Participant’s Account B under the Plan, nor any right to receive any distributions under the Plan except as and to the extent expressly provided in the Plan.

9.02.  Employment Not Guaranteed by Plan.  The establishment of this Plan and the designation of an Employee as a Participant, shall not give any Participant the right to continued Employment or limit the right of the Company to dismiss or impose penalties upon the Participant or modify the terms of Employment of any Participant.

9.03.  Termination and Amendment.  The Company may at any time terminate, suspend, alter or amend this Plan and no Participant or any other person shall have any right, title, interest or claim against the Company, its directors, officers or employees for any amounts, except that (i) the Participant shall be fully vested in his Account hereunder as of the date on which the Plan is terminated or suspended, except as to any unvested Restricted Units, (ii) no amendment shall eliminate the crediting of an investment return on an Account A prior to the complete distribution thereof or provide for a distribution method which accelerates the timing of distributions hereunder without the consent of a Participant and (iii) subsequent to a Change in Control, unless a majority of the holders of Account balances agree to the contrary, the Company or the Administrator may not alter (a) the choice of investments in the Investment Election as in effect immediately before the Change in Control and the frequency with which such elections may be made, and (b) the payout options contained in the Form of Payment Election as in effect immediately before the Change in Control.

9.04.  Notice.  Any and all notices, designations or reports provided for herein shall be in writing and delivered personally, by certified mail, return receipt requested, or by electronic means.  Physical delivery shall be addressed, in the case of the Company, to the Corporate Secretary at 770 North Water Street, Milwaukee, Wisconsin  53202 and, in the case of a Participant or Beneficiary, to his home address as shown on the records of the Company.  The addresses referenced herein may be changed by a notice delivered in accordance with the requirement of this Section 9.04.

9.05.  Limitation on Liability.  In no event shall the Company, Administrator or any employee, officer or director of the Company incur any liability for any act or failure to act unless such act or failure to act constitutes a lack of good faith, willful misconduct or gross negligence with respect to the Plan or the trust established in connection with the Plan.

9.06.  Indemnification.  The Company shall indemnify the Administrator and any employee, officer or director of the Company against all liabilities arising by reason of any act or 

16

failure to act unless such act or failure to act is due to such person’s own gross negligence or willful misconduct or lack of good faith in the performance of his duties to the Plan or the trust established pursuant to the Plan.  Such indemnification shall include, but not be limited to, expenses reasonably incurred in the defense of any claim, including reasonable attorney and legal fees, and amounts paid in any settlement or compromise; provided, however, that indemnification shall not occur to the extent that it is not permitted by applicable law.  Indemnification shall not be deemed the exclusive remedy of any person entitled to indemnification pursuant to this section.  The indemnification provided hereunder shall continue as to a person who has ceased acting as a director, officer, member, agent or employee of the Administrator or as an officer, director or employee of the Company and such person’s rights shall inure to the benefit of his heirs and representatives.

9.07.  Headings.  All articles and section headings in this Plan are intended merely for convenience and shall in no way be deemed to modify or supplement the actual terms and provisions stated thereunder.

9.08.  Severability.  Any provision of this Plan prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof.  The illegal or invalid provisions shall be fully severable and this Plan shall be construed and enforced as if the illegal or invalid provisions had never been inserted in this Plan.

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