Document:

Exhibit 10.1

Exhibit 10.1

 

FIRST AMENDMENT TO

STIFEL, NICOLAUS & COMPANY, INCORPORATED

WEALTH ACCUMULATION PLAN

2010 RESTATEMENT

 

ARTICLE I - INTRODUCTION 

1.1.      History, and Purpose and Amendment.  Effective as of
March 14, 1995, Stifel, Nicolaus & Company, Incorporated ("the Company")
established the Stifel, Nicolaus & Company, Incorporated Deferred Compensation
Plan (for Investment Executives compensated on a commission basis) to attract
and retain in its employment persons of outstanding competence, to promote a
long-term commitment to the Company and its Affiliates by employees who exercise
substantial responsibilities on behalf of the Company and its Affiliates, and to
provide such employees with an incentive program.  The Company amended and
completely restated the Plan, effective as of January 1, 1999, to change the
name of the Plan to the Stifel, Nicolaus & Company, Incorporated Wealth
Accumulation Plan.  

Effective as of January 1, 1999, the Company established the Stifel, Nicolaus &
Company, Incorporated Wealth Accumulation Plan For Administrative Associates to
attract and retain in its employment persons of outstanding competence, to
promote a long-term commitment to the Company and its Affiliates by employees
who exercise substantial responsibilities on behalf of the Company and its
Affiliates, and to provide such employees with an opportunity to defer
Performance Based Incentive Compensation and to receive common stock of Stifel
Financial Corp.

Each of such plans is referred to as a "Prior Plan," and such plans together are
referred to as the "Prior Plans."

The Company amended and combined the Prior Plans in the form of the Stifel,
Nicolaus & Company, Incorporated 2008 Wealth Accumulation Plan effective for
amounts deferred after 2007 to accommodate a variety of vesting and payment
provisions in a manner that complies with Section 409A of the Internal Revenue
Code.  The 2008 Plan was amended by a First Amendment to add Supplements
governing the payment of compensation deferred under plans maintained by Ryan
Beck & Co.

The Company amended and restated the Plan by an instrument dated March 30, 2010
(the "2010 Restatement") to permit the Company to designate the terms of
non-elective deferrals before the employee has legally binding right to the
compensation, to change the default Type for awards, and to make certain other
changes.  

The Company now wishes to amend the 2010 Restatement to modify the definition of
Cause, substitute complying with a noncompete agreement for service as the
vesting condition for awards outstanding to Participants on August 9, 2010 who
were not then eligible for retirement, and add a discretionary early retirement
feature for awards made after August 9, 2010.

Now therefore, the Plan is hereby amended and completely restated effective as
of August 9, 2010. 

 

	

All amounts accrued under a Plan and the Prior Plans shall be distributed under
the terms of the Plan and the Prior Plans as in effect from time to time; except
as otherwise provided in an individual award agreement applicable to a
particular amount deferred for a Participant and as interpreted and modified to
comply with Section 409A of the Internal Revenue Code.  Except as otherwise
explicitly provided, all amounts accrued under the Plan for Plan Years after
2009, and all amounts accrued under the Plan and the Prior Plans that are
specifically designated in writing as subject to this Plan (such as recruitment
awards), shall be governed by the terms of this Plan document.

1.2.      Funding.  The Plan is
unfunded.  All benefits shall be paid from the general assets of the Employer. 
Shares of common stock of Stifel Financial Corp. distributed in satisfaction of
benefits awarded under this Plan are authorized by the Stifel Financial Corp.
2001 Incentive Stock Plan and the Stifel Financial Corp. 2007 Incentive Stock
Plan for Ryan Beck Employees.

1.3.      Overview.  This Plan provides for four categories of
deferrals: Elective Deferrals, Stifel Deferrals, Matching Credits and Other
Deferrals.  Each deferral shall become vested and will be paid at a definite
time specified in writing pursuant to this Plan document.  The Plan specifies
definite vesting, matching and time of payment attributes for each of a variety
of Types of amounts deferred under the plan.  The attributes applicable to each
Type are set forth in Appendix A.  The particular Type classification applicable
to each Account shall be designated in writing at the time and in the manner
provided in this Plan.

1.4.      Administration.  The Plan shall be administered by the
Committee described in Article VIII.

1.5.      
Effect of First Amendment.   Effective August 9, 2010, the Stifel
Deferral Accounts, Matching Credit Accounts and Other Deferral Accounts of
Participants who had not attained Normal Retirement Age as of August 9, 2010
shall not be forfeited merely because of Termination of Employment before such
Accounts vest, but will continue to vest on the relevant scheduled vesting date
or dates so long as the Participant does not engage in a Competitive Activity or
a Soliciting Activity, as defined in Section 5.4.  This waiver affects only the
vesting requirements applicable to the SWAP Account(s).  It does not affect any
of the other terms and conditions of the SWAP; in particular it does not change
in any way the time when Account(s) become payable under the SWAP.

 ARTICLE
II - DEFINITIONS AND CONSTRUCTION

2.1.      Definitions.  For purposes of the Plan, the following
words and phrases, whether or not capitalized, shall have the meanings specified
below, unless the context plainly requires a different meaning:

 

	
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(a)        "Account" means a recordkeeping account maintained on the
books of the Company used solely to determine each separate objectively
determinable amount payable to a Participant or Former Participant under this
Plan.  Each Account may consist of two sub-accounts: 

(1)        the cash subaccount; and

(2)        the stock unit subaccount.

(b)        "Affiliated Company" means any corporation that is a member of
the controlled group of businesses, as defined in sections 414(b) and 414(c) of
the Code, or a member of an affiliated service group, as defined in section
414(m) of the Code, that includes the Company, provided that the language "at
least 50 percent" shall be used instead of "at least 80 percent" each place it
appears in such test.  A corporation or other business entity is an Affiliated
Company only while a member of such group.

(c)        "Beneficiary" means the person or persons designated by the
Participant to receive benefits which may be payable on or after the
Participant's death.  In the event there is no valid designation by the
Participant, or in the event the Beneficiary predeceases the Participant, the
surviving spouse of the Participant shall be the Beneficiary, and if there is no
surviving spouse, the Beneficiary designated by the Participant under the
Stifel, Nicolaus Profit Sharing 401(k) Plan, and if there is no such Beneficiary
designated, the Participant's estate shall be the Beneficiary.

(d)        "Board" means the Board of Directors of the Company.

(e)        "Cause" means a Participant: (i) is convicted in a criminal
proceeding on any felony or equivalent charge or on a misdemeanor charge that
the CEO or the Committee determines involves dishonesty; (ii) willfully fails to
perform his or her duties to the Company; (iii) violates any applicable federal
or state securities law, rule or regulation, or the applicable rules or
regulations of the Federal Reserve Board or any Federal Reserve bank, or the
rules of any exchange or self-regulatory organization to which the Company is
subject; (iv) violates any of the Company's policies concerning hedging or
pledging; (v) violates any non-competition agreement or any agreement or policy
relating to the Company's confidential or proprietary information; (vi) impairs,
impugns, denigrates or negatively reflects upon the Company's name reputation or
interests; (vii) engages in conduct determined by the CEO or the Committee to be
detrimental to the Company; (viii) acts in excess or his or her authority as an
agent, officer, director or employee of the Company; (ix) engages in actions
deemed by the CEO or Committee which subject the Company to unnecessary risk to
the detriment of the interest of the Company, its shareholders or its customers;
or (x) materially fails to perform or produce at the level expected for the
position held by the Participant.  Conduct detrimental to the Company shall
include, without limitation, any action that results in a restatement of the
financial statements of the Company.  Whether or not a termination of employment
is for Cause shall be determined by the CEO or the Committee in his, her or its
discretion.

(f)         "Code" means the Internal Revenue Code of 1986, as amended,
and all valid regulations thereunder.

(g)        "Committee" means the Committee referred to in Article VIII.

 

	
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(h)        "Company" means Stifel, Nicolaus & Company, Incorporated, a
Missouri corporation, or any successor thereto.

(i)         "Covered Compensation" means:  for Participants compensated
primarily on a commission basis, compensation attributable to Gross Production;
and for other Participants, compensation in addition to base salary payable
pursuant to a bonus or incentive compensation arrangement. 

(j)         "Deferral and Investment Election Form" means the written
agreement entered into between the Employee and the Employer in accordance with
Section 4.3 hereof, pursuant to which the Employee elects (i) the amount, if
any, of the Participant's Elective Deferrals for such Plan Year, and (ii) the
investment of amounts credited to the Participant's Account, if applicable.

(k)        "Disability" means the Employee is,
by reason of any medically determinable physical or mental impairment that can
be expected to result in death or can be expected to last for a continuous
period of not less than twelve months,
receiving income replacement benefits for a period of not less than three months
under an accident and health plan covering employees of the Employer.

(l)         "Elective Deferrals" means the portion of a Participant's
Covered Compensation that the Participant elects to have credited to his Account
on a pre-tax basis pursuant to Section 4.3.  

(m)       "Eligible Employee" means any person, including an officer of
the Employer, who is employed by or who has agreed to commence employment with
the Employer on a full-time basis.

(n)        "Employer" means the Company and/or any Affiliated Company
that adopts the Plan with the consent of the Company.  An Affiliated Company
that makes awards subject to the Plan with the consent of the Committee shall be
deemed to have so adopted the Plan.

(o)        "Former Participant" means an Eligible Employee who no longer
meets the requirements established by the Committee in accordance with Section
3.1 and who has not received full payment of all benefits due to him or her
under the Plan with respect to prior Plan Years.

(p)        "Gross Production" means the gross commissions produced by a
Participant.

(q)        "Matching Credit" means the amount that is credited to a
Participant's Account in accordance with Section 4.5.

	
	 

	
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(r)        "Normal Retirement Age" means the date on which the
Participant attains age sixty-five and has completed eight continuous Years of
Service for a Participant who was at least fifty years of age at the time the
Participant was initially hired by the Employer, and the date on which the
Participant attains a combination of age and Years of Service of at least eighty
for a Participant who was under the age of fifty years at the time the
Participant was initially hired by the Company; provided that the Committee may
designate in writing that another combination of age and/or service shall be the
Normal Retirement Age for a particular Account of a Participant before the right
to receive the compensation attributable to such Account first becomes legally
binding, as defined in IRS regulations under section 409A of the Code; and
further provided that the Normal Retirement Age applicable to a Financial
Advisor for amounts deferred before 2009 shall be the date on which the
Participant attains age sixty and has completed five continuous Years of
Service; and further provided that the Normal Retirement Age applicable to an
Administrative Associate for amounts deferred before 2009 shall be the date on
which the Participant attains age sixty-five and has completed five continuous
Years of Service.

(s)        "Normal Retirement Date" means the date on which the
Participant incurs a Termination of Employment (other than upon death or
Disability) on or after the date the Participant attains Normal Retirement Age.

(t)         "Other Deferral" means an amount of the Participant's
compensation that is credited to his Account in accordance with Section 4.6
hereof.

(u)        "Participant" means an Eligible Employee who has met the
participation requirements as set forth in Article III.

(v)        "Plan" means the 2008 Stifel, Nicolaus & Company, Incorporated
Wealth Accumulation Plan, as set forth in this document and as amended from time
to time hereafter.  

(w)       "Plan Year" means the period commencing each January 1st
and ending on each December 31st.

(x)        "Stock" means the common stock of Stifel Financial Corp., par
value fifteen cents ($.15) per share.

(y)        "Stifel Deferral" means an amount of the Participant's Covered
Compensation that is credited to his Account in accordance with Section 4.4
hereof.

(z)        "Termination of Employment" means termination of employment
from the Company and its Affiliated Companies (generally 50% common control with
the Company), as defined in IRS regulations under section 409A of the Code
(generally, a decrease in the performance of services to no more than 20% of the
average for the preceding thirty-six-month period, and disregarding leave of
absences up to six months where there is a reasonable expectation the Employee
will return).

(aa)      "Type" means the category of definite contribution, vesting and
payment event attributes applicable to an Account under the Plan, as described
in Appendix A. 

 

	
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(bb)      "Valuation Fund" means a fund or index identified in writing by
the Committee from time to time in accordance with Article VI that is used to
determine the earnings (or loss) applicable to an Account.

(cc)      "Year of Service" means a period of continuous employment with
the Employer of one year in duration.

A definition introduced later in the Plan also applies for all Plan purposes
unless the context plainly requires a different meaning.

2.2.Gender and Number.  Pronouns used in the Plan in the masculine
gender include the feminine gender, words in the singular include the plural,
and words in the plural include the singular.

2.3.      Headings.  All headings in the Plan are included solely
for ease of reference and do not bear on the interpretation of the text.  As
used in the Plan, the terms "Article," "Section" and "Appendix" mean the text
that accompanies the specified Article, Section or Appendix of the Plan.

ARTICLE III - PARTICIPATION

3.1.      Eligibility and Participation.  Each Eligible Employee
shall be a Participant for a Plan Year if such Eligible Employee is employed in
a classification of Eligible Employees designated by the Committee as eligible
to participate in this Plan for that Plan Year.  The Committee shall establish
the requirements for eligibility to participate in this Plan for each Plan Year,
as the Committee in its sole discretion shall determine.  The Committee may
establish separate eligibility requirements for Elective Deferrals, Stifel
Deferrals, Matching Credits and Other Deferrals, respectively.  The Committee
shall notify such Eligible Employee of eligibility requirements in a timely and
appropriate manner.

3.2.      Duration of Participation.  A Participant shall continue
to be a Participant in the Plan until such Participant ceases to meet the
requirements for participation established by the Committee for the applicable
Plan Year.  A Former Participant shall remain such until he or she receives full
payment of all benefits due to him or her under the Plan. 

ARTICLE IV - DEFERRAL CREDITS

4.1.      Participant Accounts.  The Committee shall maintain a
separate Elective Deferral Account, a Stifel Deferral Account, a Matching Credit
Account and an Other Deferral Account for each Participant for each Plan Year,
to which the Participant's Elective Deferrals, Stifel Deferrals, Matching
Credits and Other Deferral awards, if any, for such Plan Year are credited,
respectively.  Each Account may include a cash subaccount and a stock unit
subaccount.  The balance of an Account as of any date is the aggregate balance
of the cash subaccount and the stock subaccount associated with that Account as
of such date.  The balance of a cash subaccount or stock unit subaccount as of
any date is the balance of such subaccount determined as of the immediately
preceding valuation date, plus amounts thereafter properly credited to such
subaccount.  The balance of each cash subaccount shall be expressed in United
States dollars.  The balance of each stock unit subaccount shall be expressed in
a number (whole or fractional) of shares of Stock. 

 

	
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Such Accounts shall be used solely to determine the amount payable to each
Participant under this Plan and shall not constitute a separate fund of assets.

4.2       Type of Accounts.  A distinct vesting and payment event
Type shall be assigned to each Account at the time and in the manner prescribed
in this Section.

The Committee shall maintain a separate Account for each separate objectively
determinable amount payable to a Participant or Former Participant pursuant to
this Plan with an associated distinct Type; so that a distinct Type shall be
assigned to and associated with each separate objectively determinable amount
payable to a Participant or Former Participant pursuant to this Plan.  For
example, a separate Stifel Deferral Account would be maintained for a
Participant for each distinct Type of Stifel Deferrals made on behalf of such
Participant.  The Type applicable to each Account shall be documented in writing
no later than the time prescribed below.  

The Type of each Elective Deferral Account shall be set forth in writing in the
Deferral and Investment Election Form in which the Participant elects deferral
of compensation credited to the Account.  The Type of each Stifel Deferral
Account, Matching Credit Account and Other Deferral Account shall be set forth
in writing no later than the time the Participant first obtains a legally
binding right to payment of an amount that is or will be credited to the
Account.  The written document prescribing the Type of an Account shall be part
of this Plan.  Effective January 1, 2010, any mandatory deferral Account of an
Administrative employee for which there is no different written Type designation
shall be treated as Type A-5 MRA CM25 (five year ratable vesting with annual
payout of vested portion), with the match Account treated as a Type A-5 CM C
(five year cliff vesting payable after five years).  Effective January 1, 2011,
any mandatory deferral Account of a Financial Advisor for which there is no
different written Type designation shall be treated as Type FA-7 MC CM25 (seven
year cliff vesting payable after seven years).  Effective January 1, 2011, any
mandatory deferral Account of an Institutional Salesman for which there is no
different written Type designation shall be treated as Type IS-5 M RA CM25 (five year
ratable vesting with annual payout of vested portion), with the match Account
treated as a Type IS-5 CM C (five year cliff vesting payable after five years).

For an Account relating to an award made before January 1, 2009 (before the Plan
document prescribed the time and form of payment by reference to Types), and any
other Account for which a Type is not explicitly designed in writing, with
definitely determinable vesting and payment dates, the Type of such Account
shall be the Type listed on Appendix A with vesting and payment dates
corresponding to the vesting and payment dates of such Account.

4.3.      Elective Deferrals.  On or before the time necessary to
administer deferral elections that are effective as of the first day of the next
Plan Year, the Committee shall, in its sole discretion, determine which
Participants are eligible to make Elective Deferrals for that Plan Year.  For
Participants compensated primarily on a commission basis, eligibility to make
such Deferrals may be based on whether a Participant has achieved a threshold of
Gross Production for the fiscal year ending on the November 30th
immediately preceding the Plan Year for which the eligibility determination is
being made.  The threshold of Gross Production for purposes of this Section
shall be established by the Committee in its sole discretion.  

 

	
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A Participant who is eligible to make Elective Deferrals may specify on the
Deferral and Investment Election Form an amount of his or her Covered
Compensation to be deferred for the Plan Year under this Section.  The Committee
may establish limits on the amount of Elective Deferrals that may be made by
eligible Participants for a Plan Year.  Elective Deferrals shall be credited to
the Account of each Participant as of the last business day of each calendar
month.  Elective Deferrals shall be credited to the Account of a Participant for
a calendar month only if he or she is a Participant on the last day of such
calendar month.

The Deferral and Investment Election Form must be delivered to the Committee in
writing before the beginning of the Plan Year during which the services for
which such Covered Compensation is paid are performed.  The Deferral and
Investment Election Form  shall specify the Type classification applicable to
such deferral.  The Deferral and Investment Election Form for each Plan Year
shall be irrevocable for the Plan Year as of the beginning of such year and
shall apply to all Covered Compensation for services rendered in such year;
except that a Participant may cancel a deferral election because of a hardship
distribution from a cash or deferred profit sharing plan that is qualified under
section 401(k) of the Code.  If an election is canceled because of a hardship
distribution, any later deferral election shall be subject to the provisions
governing initial deferral elections.  (For this purpose, services performed in
a payroll period containing the last day of a Plan Year shall be treated as
performed in the Plan Year in which the compensation for such services is
paid.)  

With respect to bonuses that are performance-based compensation, and
based upon a performance period of at least twelve months, the initial
deferral election may be made as late as six months before the end of the
performance period, provided that the Participant performed services
continuously from the date upon which the performance criteria are established
through the date upon which the Participant makes the initial deferral
election.  In no event may an election to defer performance-based compensation
be made after such compensation has become both substantially certain to be paid
and readily ascertainable.  The term performance-based compensation means
compensation where the amount of, or entitlement to, the compensation is
contingent on the satisfaction of pre-established organizational or individual
performance criteria relating to a performance period of at least  twelve
consecutive months in which the Eligible Employee performs services. 

An election made pursuant to this Section must be in writing on a Deferral and
Investment Election Form acceptable to the Committee.  The Committee, in its
discretion, may prescribe appropriate election rules and procedures; provided
that elections for a Plan Year must be made not later than the last day of the
preceding Plan Year, except as permitted by IRS regulations under section 409A
of the Code.

If a Participant fails to complete a Deferral and Investment Election Form on or
before the first day of any Plan Year, the Participant shall be deemed to have
elected not to make Elective Deferrals for such Plan Year; and amounts credited
to a Participant's cash subaccount with respect to which a Participant does not
provide investment direction shall be assigned to the default Valuation Fund
determined by the Committee, in its sole and absolute discretion.

 

	
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4.4.      Stifel Deferrals.  The amount of Stifel Deferrals
credited to the Account of a Participant for the Plan Year shall be the
applicable percentage of the Participant's Gross Production (for Participants
compensated primarily on a commission basis) or Performance Based Incentive
Compensation (for Participants not compensated primarily on a commission basis)
for such Plan Year established by the Committee in its sole discretion before
the time the Participant first has a legally binding right to the compensation,
as defined in IRS regulations under section 409A of the Code.  

For Participants compensated primarily on a commission basis, the Account of a
Participant who achieves the designated threshold of Gross Production for the
Plan Year shall be credited with Stifel Deferrals as of the last business day of
the calendar month in which such threshold for the Plan Year is achieved, based
on Gross Production for such year through such date; and as of the last business
day of each subsequent calendar month for the remainder of the Plan Year, based
on Gross Production for such month.  The threshold of Gross Production for each
Plan Year under this Section shall be established in writing by the Committee in
its sole discretion before the time the Participant first has a legally binding
right to the compensation, as defined in IRS regulations under section 409A of
the Code.  The Account of a Participant shall be credited with Stifel Deferrals
for a calendar month only if he or she is a Participant on the last day of such
calendar month.  The Committee in its sole discretion may change such Stifel
Deferral award formula by an instrument in writing adopted before the promise of
the award becomes legally binding, as defined in IRS regulations under section
409A of the Code.

For Participants not compensated primarily on a commission basis, the Account of
a Participant shall be credited with Stifel Deferrals for a Plan Year only if he
or she is a Participant on the day designated to be eligible to the related
bonus under the Stifel Performance Based Incentive Compensation Plan.

4.5.      Matching Credits.  Participants who make Elective
Deferrals pursuant to Section 4.3 also may receive an employer Matching Credit. 
Matching Credits for Elective Deferrals shall equal a percentage of the Elective
Deferrals credited to the Account of the Participant.  Such percentage, if any,
shall be established by the Committee in writing in its sole discretion before
the first day of the Plan Year for which the Elective Deferral is made.

Each Participant whose Account is credited with Stifel Deferrals pursuant to
Section 4.3 also may receive a Matching Credit.  Matching Credits for Stifel
Deferrals shall equal a percentage of the Stifel Deferrals credited to the stock
unit subaccount of the Participant.  Such percentage, if any, shall be
established by the Committee in writing in its sole discretion before the time
the Participant first has a legally binding right to the compensation, as
defined in IRS regulations under section 409A of the Code.

Matching Credits related to Elective Deferrals shall be credited to the Account
of each Participant as of the last business day of the calendar month.  Such a
Participant shall receive a Matching Credit only if he or she is a Participant
on the last business day of such calendar month, or such other date as
prescribed in advance by the Committee in writing.

Matching Credits related to Stifel Deferrals shall be credited to the Account of
each Participant as of the last business day of the calendar year for which the
related deferral is credited, or such other date as prescribed in advance by the
Committee in writing.  

 

	
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4.6.      Other Deferrals.  An Employer may award an Eligible
Employee a right to deferred compensation from time to time; for example, in a
recruitment letter agreement.  Any such award shall identify in writing the
objectively determinable amount of the award and the Type of the Account to
which such deferred compensation is credited.  Such a written instrument shall
be adopted no later than the time the Participant first obtains a legally
binding right to payment of an amount that is or will be credited to such an
Account.

Any amount of compensation deferred under an arrangement between an Employee and
the Employer that does not specifically refer to this Plan, and that is not a
short-term deferral or otherwise exempt from section 409A of the Internal
Revenue Code, shall be treated as subject to the terms and conditions of this
Plan relating to time and form of payment, with a Type determined under the last
paragraph of Section 4.2. 

ARTICLE V - VESTING AND FORFEITURE

5.1.      Vesting in Elective Deferrals.  A Participant shall be
100% vested in his Elective Deferrals at all times. 

5.2.      Stifel Deferrals, Matching Credits and Other Deferrals Regular
Vesting Date.  A Participant or Former Participant shall be vested in
all, or a designated portion of, Stifel Deferrals, Matching Credits and Other
Deferrals, and any earnings thereon, credited to such Participant's or Former
Participant's Account for a Plan Year on the last day of the calendar year
specified in Appendix A for the Type applicable to that Account (or other date
explicitly provided in an award agreement for an Other Deferral account). 

The vested percentage of an Account Type with a designated ratable vesting
schedule from time to time shall be a percentage of the balance of the Account
determined ratably over the period  specified for such Type, based on the
completed whole Years of Service beginning on the first day of the Plan Year for
which an amount was allocated to the Account (or other date explicitly provided
in an award agreement for an Other Deferral account).  For example, the
percentage of an Account Type with a vesting schedule designated "five year
ratable" shall be determined as follows:

 

Years of Service                       Vested Percentage

1                                                 20%

2                                                 40%

3                                                 60%

4                                                 80%

5                                               100%

The vested percentage of an Account Type with a designated cliff vesting
schedule shall be 0% until completion of the designated number of completed
whole Years of Service, beginning on the first day of the Plan Year for which an
amount was allocated to the Account (or other date explicitly provided in an
award agreement for an Other Deferral account); and 100% after such time.  

 

	
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Notwithstanding the above, the entire balance of an Account shall be vested on
the  occurrence of any of the following, if such event occurs earlier than the
date designated above:

(a)        the date the Participant's or Former Participant's Disability;

(b)        the date the Participant or Former Participant dies; and 

(c)        the date a Participant incurs an involuntarily Termination of
Employment because of a restructuring of the business of the Employer, such as
the closing of an office or elimination of a business unit (and not solely
because of the individual performance of the Participant).

5.3.      Extended Vesting for Noncompetition.

(a)        If a Participant incurs a Termination of Employment on or after
attaining his or her Normal Retirement Age (i.e., retires on his or her Normal
Retirement Date), Accounts that are not vested at such time shall not be subject
to the vesting schedules and date described in Section 5.2, but instead shall
vest on the date that occurs one year after such a Termination of Employment,
provided that the Participant or Former Participant complies with applicable
noncompetition provisions and does not experience a forfeiture under Section 5.4
within that one year period.

(b)        If a Participant incurs a Termination of Employment before attaining
his or her Normal Retirement Age, but, at the discretion of the CEO or the
Committee, is granted the right to receive payment of the amount credited to an
Account that is not vested at such time, subject to compliance with the
noncompetition provisions of Section 5.4 or an alternate agreement not to
compete, such Account shall not be forfeited merely because of Termination of
Employment before the relevant scheduled vesting date or dates, but shall
continue to vest on the relevant scheduled vesting date or dates so long as the
Participant does not engage in a Competitive Activity or a Soliciting Activity,
as defined in Section 5.4 or the alternate agreement not to compete, until such
time.

(c)        Effective August 9, 2010, the Stifel Deferral Accounts, Matching
Credit Accounts and other Deferral Accounts of Participants who had not attained
Normal Retirement Age as of August 9, 2010 shall not be forfeited merely because
of Termination of Employment before such Accounts vest, but shall vest on the
normal vesting date prescribed in Section 5.2, provided that the Participant or
Former Participant does not engage in a Competitive Activity or a Soliciting
Activity, as defined in Section 5.4, until such time.  This subsection (c) shall
not apply to Accounts established on or after August 9, 2010.

5.4.      Forfeiture.  Except as provided in Section 5.3, a
Participant shall forfeit nonvested amounts credited to the Participant's Stifel
Deferral, Matching Credit and Other Deferral Accounts upon Termination of
Employment before Normal Retirement Age before such Accounts vest in accordance
with Section 5.2, subject to restoration of forfeitures upon re-employment as
provided in Section 5.5.

 

	
	11

	

 
Notwithstanding anything to the contrary herein, in the case of an Account
subject to the extended vesting rules of Section 5.3, if a Participant or Former
Participant incurs a Termination of Employment before the relevant scheduled
vesting date or dates, then for so long as the Participant or Former Participant
does not engage in a Competitive Activity or a Soliciting Activity, such Account
will continue to vest on the relevant scheduled vesting date or dates.  If at
any time before such Account vests, the Participant or Former Participant
engages in a Competitive Activity or a Soliciting Activity, any unvested portion
of such Account will be forfeited at that time.  

Definitions:  The following words and phrases, whether or not capitalized,
shall have the meanings specified below for purposes of this Section:

"Client"
means any client, former client or prospective client of the Firm to whom the
Participant or Former Participant provided services, or for whom the Participant
or Former Participant transacted business, or whose identity became known to the
Participant or Former Participant in connection with the Participant's or Former
Participant's relationship with or employment by the Firm.

"Competitive
Activity" means to:

(a)       
form, or acquire a 5% or greater equity ownership, voting or profit
participation interest in, any Competitive Enterprise; or

(b)       
associate (including, but not limited to, association as an officer, employee,
partner, director, consultant, agent or advisor) with any Competitive Enterprise
and in connection with such association engage in, or directly or indirectly
manage or supervise personnel engaged in, any activity (1) which is similar or
substantially related to any activity in which the Participant or Former
Participant  was engaged, in whole or in part, at the Firm, (2) for which as had
direct or indirect managerial or supervisory responsibility at the Firm, or (3)
which calls for the application of the same or similar specialized knowledge or
skills as those utilized by the Participant or Former Participant  in the
Participant's or Former Participant's activities at the Firm at any time during
the one-year period immediately prior to the Termination of Employment of the
Participant or Former Participant, and, in any such case, irrespective of the
purpose of the activity or whether the activity is or was in furtherance of
advisory, agency, proprietary or fiduciary business of either the Firm or the
Competitive Enterprise. (By way of example only, an "advisory" investment banker
joining a leveraged-buyout firm or a research analyst becoming a proprietary
trader or joining a hedge fund would constitute a Competitive Activity.) 

"Competitive
Enterprise" is a business enterprise that engages in, or owns or controls a
significant interest in any entity that engages in, financial services such as
investment banking, public or private finance, financial advisory services,
provision of investment advice, products or services, private investing (for
anyone other than the Participant or Former Participant  and members of the
Participant's or Former Participant's family), merchant banking, asset or hedge
fund management, securities brokerage, sales, lending, custody, clearance,
settlement or trading.

"Firm"
means the Company and any Affiliated Company.

 

	
	12

	

 "Person"
means an individual, corporation, limited liability company, partnership,
association, trust or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

"Solicit"
means any direct or indirect communication of any kind whatsoever, regardless of
by whom initiated, inviting, advising, encouraging or requesting any person or
entity, in any manner, to take or refrain from taking any action.

"Soliciting
Activity" means to: directly or indirectly, (1) Solicit a Client to
transact business with a Competitive Enterprise or to reduce or refrain from
doing any business with the Firm, (2) interfere with or damage (or attempt to
interfere with or damage) any relationship between the Firm and a Client, or (3)
Solicit any person who is an Employee to resign from the Firm or to apply for or
accept employment with, or agree to perform services for, any Competitive
Enterprise.

Notwithstanding anything to the contrary herein, if a Participant or Former
Participant incurs a Termination of Employment for Cause, at any time before the
Stifel Deferral, Matching Credit or Other Deferral Accounts of such Participant
is paid to him, all amounts credited to the Participant's Stifel Deferral,
Matching Credit or Other Deferral Accounts shall be forfeited, regardless of
whether such amount is vested.  

5.5.      Restoration of Forfeitures.    Effective January 1,
2010, if a Participant or Former Participant who forfeits an amount credited to
an Account in accordance with Section 5.4 on account of a Termination of
Employment (other than a Termination of Employment for Cause) is rehired as an
Eligible Employee within twelve months of such a Termination of Employment, the
balance of an Account so forfeited shall be restored to an Account of the
Participant with the same Type designation as the forfeited Account, and shall
be subject to vesting schedules as if such Termination of Employment had not
occurred.  For purposes of determining the Years of Service for vesting of such
a Participant, the time between such a Termination of Employment and the date of
re-employment of the Participant shall be treated as a period of continuous
employment with the Employer.

A Participant or Former Participant who forfeits an amount credited to an
Account in accordance with Section 5.4 that is exempt from section 409A of the
Internal Revenue Code (e.g., an amount payable within two and one-half months
after the year in which the amount would have become vested) may request a right
to receive a payment in accordance with subsection 5.3(b) of an agreed upon
amount, subject to compliance with the noncompetition provisions of Section 5.4
or an alternate agreement not to compete.  Such a request shall be approved or
disapproved by the CEO or the Committee, at his or its sole discretion, on a
case by case basis.

ARTICLE VI - PHANTOM INVESTMENT 

Each Participant's Account shall consist of a cash subaccount and a stock unit
subaccount.  An amount equal to the total of the Elective Deferrals and Matching
Credits shall be credited to the Participant's stock unit subaccount.  On or
before the first day of each Plan Year, the Committee shall determine which
portion of Stifel Deferrals shall be credited to a Participant's cash subaccount
and which portion shall be credited to a Participant's stock unit subaccount. 
In the absence of such a determination by the Committee, Stifel Deferrals for
Participants compensated primarily on a commission basis shall be credited to
the Participant's cash subaccount and stock unit subaccount in equal portions.

 

	
	13

	

 
Amounts credited to the stock unit subaccount shall be recorded as stock units. 

A Participant's stock unit subaccount shall be credited with stock units
reflecting Stock with a value equal to the total dollar amount of Elective
Deferrals, Stifel Deferrals and Matching Credits attributable to such
subaccount.  The value of stock units allocated
to the Account of a Financial Consultant shall be determined by the average of
the closing price of a share of Stock on the New York Stock Exchange as of each
trading day ending during the month the last business day of which such dollar
amount is credited.  The value of stock units allocated to the Account of any
other Participant shall be determined by the closing price of a share of Stock
on the New York Stock Exchange as of the last business day of the month as of
which such dollar amount is credited.  Notwithstanding the above, the Committee
in its discretion may establish a different pricing date for any creditation of
stock units.  

Each stock unit shall represent the obligation of the Company to transfer one
share of Stock to the Participant or Former Participant at the time provided in
Article VII, subject to the forfeiture provisions of this Plan.  

If Stifel Financial Corp. pays a cash dividend on shares of Stock, the stock
unit subaccount of each Participant shall be credited with a number of stock
units equal to the amount of such dividend per share, multiplied by the number
of stock units credited to such subaccount on record date of such dividend, and
divided by the closing price of a share of Stock on the New York Stock Exchange
as of the date such cash dividend is paid to shareholders of Stock.

In the event of any stock dividend, stock split, combination or exchange of
shares of Stock, merger, consolidation, spin-off, recapitalization or other
distribution (other than normal cash dividends) of Stifel Financial Corp. assets
to stockholders, or any other change affecting shares of Stock or stock price,
such proportionate adjustments, if any, as the Committee in its sole and
absolute discretion may deem appropriate to reflect such change, shall be made
with respect to the stock unit subaccount of the Participant.  

Amounts credited to the cash subaccount shall deem to be invested in a Valuation
Fund pursuant to the direction of the Participant, in accordance with investment
procedures adopted by the Committee from time to time.  A Participant may make
investment directions on such Participant's Deferral and Investment Election
Form.  Any amounts credited to a Participant's cash subaccount with respect to
which a Participant does not provide investment direction shall be credited with
earnings based on a default Valuation Fund determined by the Committee, in its
sole and absolute discretion.  A Participant's cash subaccount shall be adjusted
monthly to reflect investment gains and losses on the deemed investment.

Each Valuation Fund shall reflect the rate of return on a predetermined actual
investment or a reasonable rate of interest.  The Valuation Funds are used
solely to calculate the earnings or loss that is credited to each Participant's
Account, and not to represent any beneficial interest on the part of the
Participant in the actual Fund or other property of the Employer.  The
determination of the increase or decease in the performance of each Valuation
Fund shall be made by the Committee in its reasonable discretion.  If an award
agreement does not specify the Valuation Fund for an Account, the Account shall
be maintained as a stock unit subaccount. 

 

	
	14

	

 
ARTICLE VII - DISTRIBUTION OF BENEFITS

7.1.      Designated Payment Date.  Subject to the provisions of
this Article VII (including earlier distribution upon death, disability or
Termination of Employment), the balance of an Account of a Participant or Former
Participant shall become payable immediately after the end of the Plan Year as
of which such amounts were designated to be paid in accordance with their Type
(the "Designated Payment Date") and shall be paid in accordance with Sections
7.8 through 7.10.  

The Number of Years Until Payout associated with the Type applicable to an
Account means the number of consecutive Plan Years beginning with the Plan Year
for which an amount was credited to such Account and ending with the succeeding
Plan Year designated for such Type.  

If the Number of Years Until Payout applicable to an Account is designated as
"annual"  (e.g., Type "RA"), the portion of the Account that is vested at the
end of each Plan Year while the Participant is still employed shall become
payable immediately after the end of such Plan Year and shall be paid no later
than two and one-half months after the end of such Plan Year.  The balance of a
cliff vesting Account that becomes fully vested as the end of the designated
Plan Year while the Participant is still employed shall be paid no later than
two and one-half months after the end of such Plan Year.  

Notwithstanding the above, the award agreement for an Other Deferral may specify
a specific payment date other than the last day of a Plan Year, in which case
such an Account shall become payable on such date, and shall be paid in
accordance with Sections 7.8 through 7.10.  

7.2.      Payment of Benefits Upon Death.  If a Participant or
Former Participant whose employment with all Employers has not terminated dies
before the complete distribution of one or more of his or her Accounts, the
Participant or Former Participant shall become 100% vested in his Accounts; and
the balance of such Accounts shall become payable  to the Beneficiary of the
Participant or Former Participant and shall be paid in accordance with Sections
7.8 through 7.10.

7.3.      Payment of Benefits Upon Disability.  If a Participant
or Former Participant incurs a Termination of Employment on account of a
Disability before the complete distribution of his Accounts, the Participant or
the Former Participant shall become 100% vested in his or her Accounts; and the
balance of such Accounts shall become payable upon such a Termination of
Employment and shall be paid in accordance with Sections 7.8 through 7.10.

 

	
	15

	

 
7.4.      Payment of Benefits Upon Retirement.  If a Participant
or Former Participant incurs a Termination of Employment after attaining his or
her Normal Retirement Age before all or a portion of an Account of the
Participant becomes vested under another Section of the Plan, the Participant or
Former Participant shall become 100% vested in the portion of such Account that
was unvested at such Termination of Employment on the first anniversary of the
Participant's, or Former Participant's, Normal Retirement Date, provided that
the Participant or Former Participant does not experience a forfeiture under
Article V within the one-year period after the Participant's Normal Retirement
Date.  The portion of such Participant's Account that was fully vested on the
date of the Participant's Termination of Employment shall be become payable upon
such Termination of Employment and shall be paid in accordance with Sections 7.8
through 7.10 (including the six month delay prescribed in Section 7.9).  The
portion of the Account of a Participant or Former Participant that becomes
vested on the first anniversary of the Participant's, or Former Participant's,
Normal Retirement Date, shall become payable immediately after the end of the
Plan Year in which such amounts became vested, and shall be paid in accordance
with Sections 7.8 through 7.10.

7.5.      Payment of Benefits Upon Termination of Employment Prior to
Death, Disability or Retirement.  If a Participant or Former Participant
incurs a Termination of Employment before his or her death, Disability, Normal
Retirement Age or the Designated Payment Date of one or more of his or her
Accounts, the vested portion of the balance of the Participant's or Former
Participant's Accounts shall become payable and shall be paid in accordance with
Sections 7.8 through 7.10 (including the six month delay prescribed in Section
7.9).  Any portion of such Accounts that is not vested as of the date of the
Participant's or Former Participant's Termination of Employment shall be
forfeited, except as provided in Section 5.3.

Previously forfeited amounts that are restored to an Account in accordance with
Section 5.5 (Participants rehired within twelve months), shall be payable as if
the Termination of Employment that caused such forfeiture had not occurred;
provided that amounts that would have been payable to the Participant as of a
Designated Payment Date that occurred after such Termination of Employment and
before the date of re-employment shall be paid before the end of the Plan Year
in which the Participant is re-employed (i.e., within the same calendar year in
which the amount would have been paid if the Termination of Employment had not
occurred).

7.6.      Adjustment for Investment Gains and Losses Upon a Distribution. 
Upon a distribution pursuant to this Article VII, the balance of a Participant's
or Former Participant's Account shall be determined as of the month-end
valuation date immediately preceding the date of the distribution and shall be
adjusted for investment gains and losses that have accrued to the date of
distribution but which have not been credited.

7.7       Right of Offset.  Upon a distribution pursuant to this
Article VII, the Committee shall have the right to offset the balance of a
Participant's or Former Participant's Account (as determined in accordance with
Section 7.6) by any or all amounts that such Participant or Former Participant
owes the Employer.

 

	
	16

	

 
7.8.      Form of Payment of Distributable Benefit.  The cash
subaccount of a Participant's or Former Participant's Account shall be
distributed in a cash lump sum and the stock unit subaccount shall be
distributed in shares of Stock, with cash in lieu of fractional shares or
fractional shares rounded up to the next whole share.  Shares of Stock shall be
paid from the available shares of Stock in any Employer employee incentive plan,
other shareholder-approved stock plan maintained by the Company or an Affiliate,
the treasury or open market purchases, as determined by the Committee.

7.9.      Six Month Deferral.  Notwithstanding anything to the
contrary in this Article VII, a payment on account of Termination of Employment
may not be made until at least six months after such a Termination of
Employment.  Any payment otherwise due in such six month period shall be
suspended and become payable at the end of such six month period.

7.10.    Actual Date of Payment.  An amount payable on a date
specified in this Article VII shall be paid as soon as administratively feasible
after such date; but no later than the later of (a) the end of the calendar year
in which the specified date occurs; or (b) the fifteenth day of the third
calendar month following such specified date, provided the Participant (or
Beneficiary) is not permitted to designate the taxable year of the payment;
provided that, an amount that becomes payable at vesting shall be paid no later
than March 15 following the calendar year in which the amount becomes vested. 
The payment date may be postponed further if calculation of the amount of the
payment is not administratively practicable due to events beyond the control of
the Participant (or Beneficiary), and the payment is made in the first calendar
year in which the calculation of the amount of the payment is administratively
practicable.

ARTICLE VIII - ADMINISTRATION

8.1.      Committee.  The Plan shall be administered by a
Committee.  The Committee shall be responsible for the general operation and
administration of the Plan and for carrying out the provisions thereof.  

The Committee shall consist of one or more employees of the Employer appointed
by the Chief Executive Officer of the Company.  The Chief Executive Officer may
change such appointments from time to time provided that such changes are
prescribed in writing to the extent of enabling interested parties to ascertain
the person or persons responsible for operating the Plan.  In absence of such an
appointment, the Chief Executive Officer shall serve as the plan administrator. 

The Committee may appoint one or more of its members to carry out any particular
duty or duties or to execute any and all documents.  Any documents so executed
shall have the same effect as if executed by all such persons.  Such appointment
shall be made by an instrument in writing that specifies which duties and powers
are so allocated and to whom each such duty or power is so allocated.

The Committee may delegate to any employees or agents who are not members of the
Committee such duties and powers, both ministerial and discretionary, as it
deems appropriate, by an instrument in writing which specifies which such duties
are so delegated and to whom each such duty is so delegated.

 

	
	17

	

 
8.2.      General Powers of Administration.  The
Committee shall have all powers necessary or appropriate to enable it to carry
out its administrative duties.  Not in limitation, but in application of the
foregoing, the Committee shall have the duty and power to interpret the Plan and
determine all questions that may arise hereunder as to the status and rights of
Eligible Employees, Participants, Former Participants and Beneficiaries.  The
Committee may exercise the powers hereby granted in its sole and absolute
discretion.  No member of the Committee shall be personally liable for any
actions taken by the Committee unless the member's action involves willful
misconduct.

8.3.      Indemnification of Committee.  The Company shall
indemnify the members of the Committee against any and all claims, losses,
damages, expenses, including attorneys' fees, incurred by them, and any
liability, including any amounts paid in settlement with their approval, arising
from their action or failure to act, except when the same is judicially
determined to be attributable to their gross negligence or willful misconduct.

8.4.      Claims for Benefits.  A Participant, Former Participant
or Beneficiary may claim any benefit to which he or she is entitled under this
Plan by a written notice to the Committee.  If a claim is denied, it must be
denied within a reasonable period of time, and be contained in a written notice
stating the following:

(a)        The specific reason for the denial.

(b)        Specific reference to the Plan provision on which the denial is
based.

(c)        Description of additional information necessary for the claimant to
present his claim, if any, and an explanation of why such material is necessary.

(d)        An explanation of the Plan's claims review procedure.

The claimant will have sixty days to request a review of the denial by the
Committee, which will provide a full and fair review.  The request for review
must be in writing delivered to the Committee.  The claimant may review
pertinent documents, and he may submit issues and comments in writing.  The
decision by the Committee with respect to the review must be given within sixty
days after receipt of the request, unless special circumstances require an
extension (such as for a hearing).  In no event shall the decision be delayed
beyond 120 days after receipt of the request for review.  The decision shall be
written in a manner calculated to be understood by the claimant, and it shall
include specific reasons and refer to specific Plan provisions as to its effect.

8.5.      Written Requirements.  The requirement that any action
be in writing may be satisfied by electronic media reasonably accessible to
interested parties.

 

	
	18

	

 
ARTICLE IX - AMENDMENT AND TERMINATION

The Board reserves the right and may, at any time or from time to time, modify
or amend in whole or in part any or all provisions of the Plan.  In addition,
the Board reserves the right and may terminate the Plan in whole or in part,
subject to the restrictions set forth in Treas. Reg. §1.409A-3(j)(4), but such
termination shall not affect the Deferral and Investment Election Forms then in
effect, except that no additional Earnings may be deferred by Participants to
the Plan after the date of termination of the Plan.  Any such amendment or
termination shall be made pursuant to a resolution of the Board and shall be
effective as of the date in such resolution.

A termination of the Plan must comply with the provisions of section 409A of the
Code and the regulations and guidance promulgated thereunder, including, but not
limited to, restrictions on the timing of final distributions and the adoption
of future deferred compensation arrangements.

Upon termination of the Plan, no additional contributions shall be made to the
Plan by a Participant and the Employer, and benefits will vest in accordance
with the terms set forth in Article V and shall be distributed in accordance
with the terms set forth in Article VII.

ARTICLE X - GENERAL PROVISIONS

10.1.    Non-Alienation of Benefits.  No right or
benefit under the Plan shall be subject to anticipation, alienation, sale,
assignment, pledge, encumbrance, or charge, and any attempt to anticipate,
alienate, sell, assign, pledge, encumber, or change any right or benefit under
this Plan shall be void.  No right or benefit hereunder shall in any manner be
liable for or subject to the debts, contracts, liabilities or torts of the
person entitled to such benefits.  If the Participant, Former Participant or
Beneficiary becomes bankrupt, or attempts to anticipate, alienate, sell, assign,
pledge, encumber, or change any right hereunder, then such right or benefit
shall, in the discretion of the Committee, cease and terminate, and in such
event, the Committee may hold or apply the same or any part thereof for the
benefit of the Participant, Former Participant or Beneficiary, spouse, children,
or other dependents, or any of them in such manner and in such amounts and
proportions as the Committee may deem proper.

Distribution pursuant to a domestic relations order of all or any portion of the
Participant's Benefit Amount may be paid to an Alternate Payee (as defined in
section 414(p) of the Code) who is a former spouse in an amount specified in
such domestic relations order in a lump-sum cash payment as soon as
administratively feasible after the Plan Administrator determines that the order
is a domestic relations order (as defined in section 414(p)(1)(B) of the Code). 

10.2.    Source of Payment.  Participants and Participants'
Beneficiaries shall be unsecured general creditors, with no secured or
preferential rights to any assets of the Employer or any other party for payment
of benefits under this Plan.  Any property held by the Employer for the purpose
of generating the cash flow for payment of benefits shall remain as general,
unpledged, and unrestricted assets.  The Employer's obligation under this Plan
shall be an unfunded and unsecured promise to pay money in the future.

	
	19

	

 
Benefits payable by any corporation
or other entity included in the definition of the Employer
shall be paid by such entity out of its
general assets.  The obligation to pay benefits allocated to the Account of a
Participant under this Plan shall be the obligation of the respective Employer
of the Participant for whom the Participant performed the services to which such
deferred compensation was attributable.  A Participant shall not have any rights
with respect to payment of benefits from any Employer under this Plan other than
the unsecured right to receive payments from such Employer.  

10.3.    Subordination of Obligations.  The obligations of the
Employers under this Plan shall be subordinate in right of payment and subject
to the prior payment or provision for payment in full of all claims of all other
present and future creditors of each such respective Employer whose claims are
not similarly subordinated and to claims which are now or hereafter expressly
stated in the instruments creating such claims to be senior in right of payment
to the claims of the class of this claim arising out of any matter occurring
prior to the date on which such Employer's obligation to make such payment
matures consistent with the provisions hereof.  Claims hereunder shall rank 
pari passu with claims similarly subordinated.  As a condition of
participating in this Plan, the Committee may require a Participant to sign the
Cash Subordination Agreement, NYSE CSA Form ID, required by the New York Stock
Exchange for purposes of increasing the Employer's capital, or any similar form.

10.4.    Contractual Right to Benefits Funding.  The Plan creates
and vests in each Participant a contractual right only to the benefits to which
he is entitled hereunder, enforceable by the Participant against the Employer. 
The benefits to which a Participant, Former Participant or Beneficiary, as the
case may be, is entitled under the Plan shall be paid from the general assets of
the Employer.

10.5.    No Employment Agreement.  The Plan is not a contract of
employment, and participation in the Plan shall not confer on any employee the
right to be retained in the employ of the Employer or any Affiliated Company. 
The right of a Participant or Former Participant to a distribution under the
Plan is intended as a supplemental component of the overall employment agreement
between the Employer and the Participant.

10.6.    Successor to Company.  The Employer shall require any
successor or assignee, whether direct or indirect, by purchase, merger,
consolidation or otherwise, to all or substantially all the business or assets
of the Employer, expressly and unconditionally to assume and agree to perform
the Employer's obligations under this Plan, in the same manner and to the same
extent that the Employer would be required to perform.  Accordingly, this Plan
and the related Deferral and Investment Election Forms shall be binding upon,
and the term "Employer" shall include any successor or assignee to the business
or assets of the Employer.

10.7.    Severability.  In the event any provision of the Plan
shall be held invalid or illegal for any reason, any illegality or invalidity
shall not affect the remaining parts of the Plan, but the Plan shall be
construed and enforced as if the illegal or invalid provision had never been
inserted, and the Company shall have the privilege and opportunity to correct
and remedy such questions of illegality or invalidity by amendment as provided
in the Plan.

10.8.    Entire Plan.  This document and any amendments contain
all the terms and provisions of the Plan and shall constitute the entire Plan,
any other alleged terms or provisions being of no effect.

 

	
	20

	

 
10.9.    Governing Law.  The terms and provisions of this Plan
shall be construed according to the principles, and  in the priority, as
follows:  first, in accordance with the meaning under, and which will bring the
Plan into conformity with, section 409A of the Code; and secondly, in accordance
with the laws of the State of Missouri.  The Plan shall be deemed to contain the
provisions necessary to comply with such laws.  If any provision of this Plan
shall be held illegal or invalid, the remaining provisions of this Plan shall be
construed as if such provision had never been included.  Wherever applicable,
the masculine pronoun as used herein shall include the feminine, and the
singular shall include the plural.  The term profit shall mean profit or loss,
as the case may be, and the term credit shall mean credit or charge, as the case
may be.  

10.10.  Withholding. The
Employer shall withhold from amounts due under this Plan, the amount necessary
to enable the Employer to remit to the appropriate government entity or entities
on behalf of the Participant as may be required by the federal income tax
withholding provisions of the Code, by an applicable state's income tax, or by
an applicable city, county or municipality's earnings or income tax act.  The
Employer shall withhold from the payroll of, or collect from, a Participant the
amount necessary to remit on behalf of the Participant any FICA taxes which may
be required with respect to amounts accrued by a Participant hereunder, as
determined by the Company.

 

	
	21

	

 
IN WITNESS WHEREOF, the Company has caused this Instrument to be executed by its
duly authorized officer this 9 day of August, 2010.

 

STIFEL, NICOLAUS & COMPANY, INCORPORATED

	
       
	
       
	
       

	
       
	
       
	
       

	
      By:
	
      /s/ Ronald J. Kruszewski
	
       

	
      Name:
	
      Ronald J. Kruszewski
	
       

	
      Title:
	
      
		President and Chief Executive Officer
	
       

	
       
	
       
	
       

 

 

 

	
       
	
       
	
       

	
      
		[SEAL]
	
       
	
       

	
       
	
       
	
       

	
      
		ATTEST
	
       

	
       
	
       
	
       

	
       
	
       
	
       

	
      By:
	
      /s/ Bernard N. Burkemper	
       

	
      Name:
	
      Bernard N. Burkemper	
       

	
      Title:
	
      Senior Vice President	
       

 

 

	
	 

	
	22

	

APPENDIX A 

 

STIFEL, NICOLAUS & COMPANY, INCORPORATED

2008 WEALTH ACCUMULATION PLAN

 

TYPES OF DEFERRED COMPENSATION OPPORTUNITIES

 

	
		

		Type
	
		

		 
	
		

		Years of Service Required
	
		

		 
	
		

		Type of Vesting
	
		

		 
	
		

		Matching Percentage
	
		

		 
	
		

		Years  
		
		

		
		

		Until Payout
	
		

		 

	
		

		Admin deferrals* 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		A-2 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		2
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 

	
		

		A-2 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		2
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 

	
		

		A-3 M R CM25
	
		

		 
	
		

		Mandatory
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		25
	
		

		 
	
		

		3
	
		

		 

	
		

		A-3 E V CM25
	
		

		 
	
		

		Elective
	
		

		 
	
		

		Fully vested
	
		

		 
	
		

		N/A
	
		

		 
	
		

		25
	
		

		 
	
		

		3
	
		

		 

	
		

		A-3 CM C
	
		

		 
	
		

		Company match
	
		

		 
	
		

		3
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		A-3 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		A-3 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		A-3 RA
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		annual
	
		

		 

	
		

		A-4 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		4
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 

	
		

		A-4 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		4
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 

	
		

		A-5 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		A-5 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		A-5 M R CM25
	
		

		 
	
		

		Mandatory
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		25
	
		

		 
	
		

		5
	
		

		 

	
		

		A-5 CM C
	
		

		 
	
		

		Company match
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		A-5 M RA CM25
	
		

		 
	
		

		Mandatory
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		25
	
		

		 
	
		

		annual
	
		

		 

	
		

		A-6 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		6
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 

	
		

		A-6 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		6
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 

	
		

		A-7 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		A-7 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		A-8 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		8
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 

	
		

		A-8 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		8
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 

	
		

		A-9 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		9
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 

	
		

		A-9 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		9
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 

	
		

		A-10 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		10
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 

	
		

		A-10 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		10
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 

	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		Ledger:
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		R = Ratable
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		C = Cliff
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		M = Mandatory
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		E = Elective
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		V = Vested
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		CM = Company Match
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		RA = Ratable with annual payout
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
	 

	
	23

	

	 

	 

	
		

		Type
	
		

		 
	
		

		Years of Service Required
	
		

		 
	
		

		Type of Vesting
	
		

		 
	
		

		Matching Percentage
	
		

		 
	
		

		Years  
		
		

		
		

		Until Payout
	
		

		 
	
		 
	
		

		Board Grants* 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		BG-2 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		2
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 
	
		 
	
		

		BG-2 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		2
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 
	
		 
	
		

		BG-3 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 
	
		 
	
		

		BG-3 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		3
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 
	
		 
	
		

		BG-3 RA
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		annual
	
		

		Ryan Beck
	
		 
	
		

		BG-4 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		4
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 
	
		 
	
		

		BG-4 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		4
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 
	
		 
	
		

		BG-5 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 
	
		 
	
		

		BG-5 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 
	
		 
	
		

		BG-6 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		6
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 
	
		 
	
		

		BG-6 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		6
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 
	
		 
	
		

		BG-7 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		7
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 
	
		 
	
		

		BG-7 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		7
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 
	
		 
	
		

		BG-8 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		8
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 
	
		 
	
		

		BG-8 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		8
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 
	
		 
	
		

		BG-9 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		9
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 
	
		 
	
		

		BG-9 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		9
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 
	
		 
	
		

		BG-10 R
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		10
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 
	
		 
	
		

		BG-10 C
	
		

		 
	
		

		Board grant
	
		

		 
	
		

		10
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 
	
		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		Ledger:
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		R = Ratable
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		C = Cliff
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		M = Mandatory
	
		 	
		 	
		 	
		 	
		 	
		 	
		 	
		 	
		 	
		 	
		 	
		 
	
		

		E = Elective
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		V = Vested
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		CM = Company Match
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		RA = Ratable with annual payout
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		 

	
	 

	
	24

	

 

	
		

		Type
	
		

		 
	
		

		Years of Service Required
	
		

		 
	
		

		Type of Vesting
	
		

		 
	
		

		Matching Percentage
	
		

		 
	
		

		Years  
		
		

		
		

		Until Payout
	
		

		 

	
		

		FA deferrals* 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		FA-2 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		2
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 

	
		

		FA-2 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		2
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 

	
		

		FA-3 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		FA-3 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		FA-3.1 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		Ryan Beck (3,5,7)

	
		

		FA-3.2 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		Ryan Beck (3,5,7)

	
		

		FA-3.3 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		Ryan Beck (3,5,7)

	
		

		FA-4 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		4
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 

	
		

		FA-4 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		4
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 

	
		

		FA-5 M C CM25
	
		

		 
	
		

		Mandatory
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		25
	
		

		 
	
		

		5
	
		

		 

	
		

		FA-5 E V CM25
	
		

		 
	
		

		Elective
	
		

		 
	
		

		Fully vested
	
		

		 
	
		

		N/A
	
		

		 
	
		

		25
	
		

		 
	
		

		5
	
		

		 

	
		

		FA-5 CM C
	
		

		 
	
		

		Company match
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		FA-5 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		FA-5 RA
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		annual
	
		

		 

	
		

		FA-5 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		FA-6 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		6
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 

	
		

		FA-6 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		6
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 

	
		

		FA-7 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		FA-7 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		FA-7 M C CM 25
	
		

		 
	
		

		Mandatory
	
		

		 
	
		

		7
	
		

		 
	
		cliff
	
		

		 
	
		

		25
	
		

		 
	
		7
	
		

		 

	
		

		FA-7 CM C
	
		

		 
	
		

		Company match
	
		

		 
	
		

		7
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		FA-8 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		8
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 

	
		

		FA-8 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		8
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 

	
		

		FA-9 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		9
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 

	
		

		FA-9 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		9
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 

	
		

		FA-10 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		10
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 

	
		

		FA-10 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		10
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 

	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		Ledger:
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		R = Ratable
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		C = Cliff
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		M = Mandatory
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		E = Elective
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		V = Vested
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		CM = Company Match
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		RA = Ratable with annual payout
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
	 

	
	25

	

 

 

	
	
		

		Type
	
		

		 
	
		

		Years of Service Required
	
		

		 
	
		

		Type of Vesting
	
		

		 
	
		

		Matching Percentage
	
		

		 
	
		

		Years  
		
		

		
		

		Until Payout
	
		

		 

	
		

		IS deferrals* 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		IS-2 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		2
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 

	
		

		IS-2 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		2
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		2
	
		

		 

	
		

		IS-3 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		IS-3 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		IS-3.1 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		3
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		3
	
		

		 

	
		

		IS-3.2 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		IS-3.3 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		IS-4 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		4
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 

	
		

		IS-4 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		4
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		4
	
		

		 

	
		

		IS-5 E V CM 25
	
		

		 
	
		

		Elective
	
		

		 
	
		

		Fully vested
	
		

		 
	
		

		N/A
	
		

		 
	
		

		25
	
		

		 
	
		

		5
	
		

		 

	
		

		IS-5 CM C
	
		

		 
	
		

		Company match
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		IS-5 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		IS-5 RA
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		annual
	
		

		 

	
		

		IS-5 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		5
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		5
	
		

		 

	
		

		IS-5 M RA CM 25
	
		

		 
	
		

		Mandatory
	
		

		 
	
		

		5
	
		

		 
	
		

		ratable
	
		

		 
	
		

		25
	
		

		 
	
		

		annual
	
		

		 

	
		

		IS-6 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		6
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 

	
		

		IS-6 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		6
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		6
	
		

		 

	
		

		IS-7 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		IS-7 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		7
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		7
	
		

		 

	
		

		IS-8 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		8
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 

	
		

		IS-8 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		8
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		8
	
		

		 

	
		

		IS-9 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		9
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 

	
		

		IS-9 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		9
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		9
	
		

		 

	
		

		IS-10 R
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		10
	
		

		 
	
		

		ratable
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 

	
		

		IS-10 C
	
		

		 
	
		

		Hiring grant
	
		

		 
	
		

		10
	
		

		 
	
		

		cliff
	
		

		 
	
		

		0
	
		

		 
	
		

		10
	
		

		 

	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		Ledger:
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		R = Ratable
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		C = Cliff
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		M = Mandatory
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		E = Elective
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		V = Vested
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		CM = Company Match
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		RA = Ratable with annual payout
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 
	
		

		 

	

	
	 

	
	26tin10qex10note.htm

  

EXPLANATORY NOTE

Temple-Inland Inc. sold its strategic timberland on October 31, 2007 for $2.38 billion. The total consideration consisted almost entirely of notes due in 2027 issued by the buyer of the timberland. The notes are secured by $2.38 billion of irrevocable standby letters of credit issued by four banks, which are required to maintain a credit rating on their long-term unsecured debt of at least A+ by S&P and A1 by Moody’s. The letters of credit are secured by the buyer’s long-term deposits with the banks of $2.38 billion of cash and cash equivalents.

There are 20 notes issued the buyer of the timberland, all of which have substantially identical terms.  The attached exhibit is a form of these notes.

  

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FORM OF TIMBER NOTE

 

PURCHASE NOTE NO. [L-___]/[T-___]

 

 

$[_____________] October 31, 2007

 

FOR VALUE RECEIVED, the undersigned, Crown Pine Buyer [___], L.P., a Delaware limited partnership (the “Maker”), hereby promises to pay to the order of TIN Inc., a Delaware corporation (the “Initial Holder”), or its successors and registered assigns (the Initial Holder and any such successor or assign being referred to herein as the “Holder”), in immediately available funds, the principal amount of $[________________] ([_______________________] and [___]/100 United States Dollars), together with interest thereon at the Interest Rate (as defined below), such interest payable in arrears on each Interest Payment Date (as defined below) from and including the date hereof to but excluding the date this Purchase Note is paid in full.  The principal amount of this Purchase Note (also referred to herein as this “Purchase Note”) is due and payable on October 31, 2027 (the “Maturity Date”).  In certain events hereinafter described, this Purchase Note may become due and payable prior to its stated maturity.

 

This Purchase Note is not subject to redemption or prepayment at the election of the Maker prior to maturity, in whole or in part.

 

This Purchase Note is one of the Purchase Notes delivered or to be delivered by the Maker pursuant to the Purchase Agreement (the “Purchase Notes”).

 

This Purchase Note is made and delivered by Maker in partial payment of the [Timber Price/Land Price] as defined in the Purchase Agreement.  The principal amount of this Purchase Note shall not be adjusted for any adjustment to the Closing Purchase Price (as defined in the Purchase Agreement) after the date hereof, for any claims or other matters arising under the Purchase Agreement after the date hereof or for any other reason.

 

All payments of principal and interest in respect of this Purchase Note and other amounts owed by the Maker hereunder shall be made in U.S. Dollars in immediately available funds to the order of the Holder by wire transfer to such account as may be specified from time to time by the Holder to the Maker in writing or, at the option of the Holder hereof, by check to such address as the Holder shall have designated to the Maker in writing.  If any payment of principal of, or interest on, or any other amount owed by the Maker under this Purchase Note becomes due and payable on a day other than a Business Day (as defined below), the maturity thereof shall be extended to the next succeeding Business Day (unless such Business Day falls in another calendar month, in which case the date for payment thereof shall be the next preceding Business Day).  If the date for any payment of principal is extended by operation of law or otherwise, interest thereon shall be payable for such extended time.

 

This Purchase Note is entitled to the benefits of the Irrevocable Standby Letter of Credit No. [___________] (as amended, the “Letter of Credit”) of [LC Bank] (the “Bank”), in the initial Base Amount (as defined in the Letter of Credit) of $[__________] and subject to periodic

 

  

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increase and decrease as provided therein.  The Letter of Credit expires on November 15, 2027 unless earlier terminated as set forth therein.

 

At any time that the long-term unsecured senior debt obligations of the Bank or any then-existing Substitute LC Bank (as defined below), as applicable, are no longer rated at least A+ by Standard & Poor’s and A1 by Moody’s (a “Substitution Event”), (i) the Holder shall have the right, but not the obligation, by delivering prior written notice to the Maker, to require that the Maker promptly arrange for the issuance of  a substitute standby letter of credit in form and substance satisfactory to Holder (a “Substitute LC,” which term shall include any substitute letter of credit issued to renew or replace any Letter of Credit or then-existing Substitute LC) issued by a bank or other financial institution (a “Substitute LC Bank”) designated as set forth below (a Substitute LC arranged as contemplated in this clause (i), a “Holder Requested Substitute LC”) and (ii) if the Holder has not exercised its right to require (or is not deemed to have required) that the Maker arrange for the issuance of a Holder Requested Substitute LC within thirty (30) days of receipt of notice from the Maker of the occurrence of a Substitution Event, the Maker shall have the right, but not the obligation, by delivering not less than fifteen (15) days prior written notice to the Holder, to arrange for the issuance of a Substitute LC in form and substance satisfactory to Holder issued by a Substitute LC Bank designated as set forth below (a Substitute LC arranged as contemplated in this clause (ii), a “Maker Provided Substitute LC”).  Unless otherwise agreed by the Holder in writing, the long-term unsecured senior debt obligations of the Substitute LC Bank issuing a Maker Provided Substitute LC shall be at least AA- by Standard & Poor’s and Aa3 by Moody’s.

 

If the holder of any other Purchase Note shall have required the Maker to arrange for the issuance of a substitute letter of credit with respect to, and in accordance with the terms of, such other Purchase Note, the Holder shall be deemed on the same date to have required the Maker to arrange for the issuance of  a Substitute LC with respect to this Purchase Note.  In addition, if the Maker has delivered written notice of the exercise of its right to arrange for the issuance of a substitute letter of credit with respect to, and in accordance with the terms of, any other Purchase Note, the Maker shall be deemed to have concurrently delivered written notice of the exercise of its right to arrange for the issuance of a Substitute LC hereunder.  The Maker shall promptly provide notice to the Holder of its receipt of any request, or of its delivery of written notice of the exercise of its right, to arrange for the issuance of a substitute letter of credit with respect to, and in accordance with the terms of, any other Purchase Note.

 

If (i) the Holder exercises its right to require (or is deemed to have required) that the Maker arrange for the issuance of a Holder Requested Substitute LC or (ii) the Maker exercises (or is deemed to have exercised) its right to arrange for the issuance of a Maker Provided Substitute LC:

 

(a)           the Substitute LC arranged with respect to this Purchase Note and each other substitute letter of credit arranged with respect to other Purchase Notes in connection with the same Substitution Event shall be arranged simultaneously and by the same Substitute LC Bank which (x) in the case of a Holder Requested Substitute LC, shall be designated by mutual agreement of the holders of Purchase Notes representing a majority in principal amount of all Purchase Notes or (y) in the case of a Maker Provided

 

  

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Substitute LC, shall be reasonably satisfactory to holders of Purchase Notes representing a majority in principal amount of all Purchase Notes.

 

(b)           the Maker shall execute a reimbursement agreement (a “Substitute Reimbursement Agreement”) with the Substitute LC Bank substantially similar in all material respects to that certain Reimbursement Agreement, dated as of October 26, 2007 (the “Reimbursement Agreement”), between the Maker and the Bank relating to the Letter of Credit (except that the Maker shall be entitled to require without modification the language appearing in Section 2(k) of the Reimbursement Agreement and Section 19 of that certain Pledge and Security Agreement, dated as of October 26, 2007 (the “Pledge Agreement”), between the Maker and the Bank relating to the Letter of Credit) and execute such other documents in such form as the Holder or the Substitute LC Bank shall reasonably request, including, without limitation, a pledge agreement (a “Substitute Pledge Agreement”) pursuant to which the Maker shall assign and pledge to the Substitute LC Bank, and grant a security interest to the Substitute LC Bank in, among other things, the Substitute Collateral Note (as defined below), as security for the obligations of the Maker under the Substitute Reimbursement Agreement and the Substitute Pledge Agreement; and

 

(c)           the Maker shall enforce its right to compel the Bank or then-existing Substitute LC Bank, as applicable, to release its security interest in the collateral pledged with respect to this Purchase Note pursuant to the Pledge Agreement (the “Collateral”), and the Maker shall apply the proceeds of the Collateral to acquire a Collateral Note from the Substitute LC Bank (a “Substitute Collateral Note”), in a principal amount equal to the outstanding principal amount of this Purchase Note.

 

If the then-existing Letter of Credit is replaced with a Substitute LC, references herein to the Letter of Credit shall be deemed to refer to such Substitute LC, references herein to the Reimbursement Agreement and the Pledge Agreement shall mean the related Substitute Reimbursement Agreement and the related Substitute Pledge Agreement, respectively, and references to the Bank shall be deemed to refer to the related Substitute LC Bank, as the context requires or permits.

 

As a condition precedent to Maker’s obligation to arrange for the issuance of a Holder Requested Substitute LC, each holder of a Purchase Note shall pay its Holder’s Portion of reasonable costs and out-of-pocket expenses incurred by the Maker in connection with the provision by the Maker of a Holder Requested Substitute LC (the “Substitution Costs”), including without limitation (v) its Holder’s Portion of upfront fees, and the costs of pre-funding, commissions and expenses, payable to the Substitute LC Bank, (w) its Holder’s Portion of reasonable attorneys’ fees and expenses, (x) its Holder’s Portion of breakage costs, if any, incurred in connection with the release of Collateral Notes, if any, (y) if applicable, its Holder’s Portion of the costs of pre-funding reserves as necessary to supplement the cash flow provided by a Substitute Collateral Note in order to provide adequate cash flow, taking into account the effect of any interest rate protection agreement to which the Maker is party, if any, to pay all interest payable on this Purchase Note and (z) if the Bank or Substitute LC Bank requires Maker to enter a new, or modify the then-existing, interest rate protection agreement, the Holder’s Portion of the fees, commissions and expenses payable to the provider of such interest rate

 

  

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protection agreement in connection therewith; provided, however, that the holder of relevant Purchase Notes (including the Holder) together shall only be required to reimburse upfront fees, and the costs of prefunding reserves for the fees, commissions and expenses, payable to the Substitute LC Bank to the extent the aggregate amount of such upfront fees and reserves exceeds the amount, if any, reserved by Maker at such time to pay for commissions and expenses remaining to be paid, if any, to the Bank; and provided further that the amount of Substitution Costs to be reimbursed by the Holder shall be reduced by the amount standing to the credit of the Replacement Reserve Account, if any.

 

The Maker shall bear all Substitution Costs incurred in connection with the provision of a Maker Provided Substitute LC.

 

Any substitution of a Letter of Credit in connection with the provision by the Maker of a Holder Requested Substitute LC shall be conditioned on the payment by the holders of all Purchase Notes of their respective Holder’s Portions of the Substitution Costs incurred by the Maker in connection with the provision by the Maker of such Holder Requested Substitute LC.  Any substitution of a Letter of Credit in connection with the provision by the Maker of a Maker Provided Substitute LC shall be conditioned on the payment by Maker of all Substitution Costs incurred in connection with the provision of such Maker Provided Substitute LC.

 

If any of the following events (each, an “Event of Default”) occurs and is continuing for any reason (and whether such occurrence is voluntary or involuntary or comes about or is effected by operation of law or otherwise):

 

(i)           default in the payment when due (whether at maturity, by acceleration, upon notice of termination of the Letter of Credit or otherwise) of any principal of or interest on this Purchase Note and, in the case of interest only, continuance of such default for 3 Business Days;

 

(ii)           the filing by the Maker of a petition or answer or consent seeking relief under Title 11 of the United States Code, as now or hereafter in effect, or any other applicable federal or state bankruptcy, insolvency or other similar law, or the consent by the Maker to the institution of proceedings under such Title 11 or any such other law or to the filing of any such petition or to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) with respect to the Maker or any part of its property, or the making by the Maker of any assignment for the benefit of creditors, or the failure of the Maker generally to pay its debts as they become due, or the taking of corporate action to authorize any of the foregoing;

 

(iii)           the entry of a decree or order by a court having jurisdiction for relief in respect of the Maker under Title 11 of the United States Code, as now or hereafter in effect, or any other applicable federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Maker or any part of its properties, or ordering the winding-up or liquidation of the affairs of the Maker;

 

  

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(iv)           commencement of an involuntary case or other proceeding against the Maker under Title 11 of the United States Code, as now or hereafter in effect, or any other applicable federal or state bankruptcy, insolvency or other similar law which is not dismissed within 60 days of the commencement of the case or other proceeding;

 

(v)           receipt of notice from the Bank of repudiation or termination of the Letter of Credit prior to payment in full of this Purchase Note (other than termination of the Letter of Credit upon issuance of a Substitute LC to replace such Letter of Credit);

 

(vi)           failure by the Maker to comply with any material covenant or agreement contained herein, if such failure shall continue unremedied for 30 days after the Holder delivers written notice of such failure to the Maker;

 

(vii)           failure by the Maker or Maker Parent to comply with any material covenant or agreement in the Purchase Agreement or the LP Agreement, if such failure shall continue unremedied for 30 days after the Holder delivers written notice of such failure to the Maker; or failure by the Maker GP to comply with any material covenant or agreement in the GP LLC Agreement, if such failure shall continue unremedied for 30 days after the Holder delivers written notice of such failure to the Maker

 

(viii)           the Letter of Credit has not been replaced by a Substitute LC complying with the requirements of this Purchase Note within 45 days after written notice by the Holder to the Maker of the occurrence of a Substitution Event (whether or not the Holder has exercised its right to require that the Maker arrange for the issuance of  a Holder Requested Substitute LC);

 

(ix)           the delivery by the Bank of a Timely Reimbursement Failure Notice (as such term is defined in the Letter of Credit);

 

(x)           the occurrence of an Event of Default under any other Purchase Note; or

 

(xi)           the insolvency, receivership, conservatorship, reorganization, winding-up, liquidation or other similar occurrence in respect of the Bank under any applicable law;

 

then, and in every such Event of Default and at any time thereafter during the continuance of such Event of Default, the Holder may, at its option and in addition to any other available remedy, by notice in writing to the Maker, declare this Purchase Note to be immediately due and payable, together with all interest accrued hereon and any other amounts owed by the Maker hereunder, and on delivery of such a notice, the unpaid principal amount of this Purchase Note and all interest accrued to such date, and any other amounts owed by the Maker hereunder, shall forthwith become immediately due and payable without the necessity of any presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Maker; provided, however, that if any Event of Default specified in paragraph (ii), (iii) or (iv) above occurs, this Purchase Note shall forthwith automatically become immediately due and payable, both as to principal and interest, and as to any such other amounts, without any action on the part of the Holder; and provided further, however, that if the Event of Default specified in paragraph (v) above occurs, this Purchase Note shall forthwith automatically become due and payable, both as to principal and interest, and as to any such other amounts, on the fifth (5th)

 

  

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calendar day following delivery of the notice referred to in paragraph (v) without any action on the part of the Holder unless such notice is rescinded by the Bank prior to such fifth (5th) calendar day.

 

If any Event of Default described in clause (i) of the definition thereof, or any default in the payment of any other amount becoming due hereunder, by acceleration or otherwise, is continuing, the Maker shall, on demand from the Holder, from time to time, pay interest on such defaulted principal and, to the extent permitted by law, defaulted interest and any other amounts due hereunder, up to the date of actual payment (after as well as before judgment) at a per annum rate equal to the Interest Rate then in effect plus 2% per annum.  In addition, the Maker shall pay to the Holder hereof on demand such additional amounts as shall be sufficient to pay the Holder’s actual and reasonable costs and expenses of collection, including without limitation reasonable attorneys’ fees.

 

In the event of surrender of this Purchase Note to the Bank upon a drawing under the Letter of Credit, if such a surrender is required, any claim for unpaid interest following the honoring of such drawing shall survive such surrender.

 

The Maker shall deliver to the Holder:

 

(x)           as soon as available and in any event within 45 days after the end of each fiscal quarter of the Maker, an unaudited balance sheet of the Maker as of the end of such fiscal quarter and the related statements of income and cash flows for such fiscal quarter, setting forth in each case in comparative form the figures for the corresponding fiscal quarter in the previous fiscal year or the required period, all certified as to fairness of presentation, preparation in accordance with generally accepted accounting principles and consistency by the chief financial officer, treasurer or chief accounting officer of the Maker or of the general partner of the Maker; and

 

(y)           as soon as available and in any event within 120 days after the end of each fiscal year of the Maker, an unaudited balance sheet of the Maker as of the end of such fiscal year and the related statements of income and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the preceding fiscal year or other required period, all certified as to fairness of presentation, preparation in accordance with generally accepted accounting principles and consistency by the chief financial officer, treasurer or chief accounting officer of the Maker or of the general partner of the Maker.

 

For so long as Maker Parent owns all of the outstanding interests in the Maker, Maker Parent shall treat this Purchase Note as indebtedness of Maker Parent for all applicable income tax purposes, unless Maker Parent determines in good faith that a change in law occurring after the date of this Purchase Note requires Maker Parent to change such treatment.

 

The Maker shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence.

 

The Maker shall take all steps required by the LP Agreement to continue the Maker’s identity as a separate legal entity and to make it apparent to other Persons that the Maker is an

 

  

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entity with assets and liabilities distinct from those of any other Person and shall comply with all of its other obligations under the LP Agreement and the Purchase Agreement.

 

The Maker will not create, incur, assume or permit to exist any indebtedness, except for (i) indebtedness hereunder and incurred in connection with the Letter of Credit, (ii) indebtedness under the other Purchase Notes delivered pursuant to the Purchase Agreement as well as indebtedness incurred in connection with any letter of credit related to such other Purchase Notes and (iii) any indebtedness incurred pursuant to interest rate protection agreements, if any, entered in respect of interest payable under this Purchase Note or any other Purchase Note.

 

The Maker will not take any action to create or encourage the making of a market in this Purchase Note or the listing or trading of this Purchase Note on an “established securities market” or otherwise take any action to render this Purchase Note “readily tradable in an established securities market” within the meaning of Treasury Regulation § 15A.453-1(e)(4).

 

The Maker shall enforce its right to compel the Paying Agent to maintain at the Paying Agent’s address set forth in the Paying Agency Agreement a register in which the name and address of each holder of this Purchase Note, each transfer thereof and the name and address of each transferee shall be registered.

 

This Purchase Note is a registered note and may be transferred only upon surrender to the Paying Agent (with concurrent written notice to the Maker of the requested transfer) of this Purchase Note for registration and transfer, duly endorsed by, or accompanied by a written instrument of transfer duly executed by, the registered holder hereof or its attorney duly authorized in writing.   Upon surrender of this Purchase Note as above provided, together with the name, address and other information for notices of the transferee, the Paying Agent shall promptly register the transfer, record the transfer on this Purchase Note and deliver the same to the transferee.  A transfer of this Purchase Note shall be effective upon registration of the transfer by the Paying Agent.  Prior to registration of such a transfer, the Person in whose name this Purchase Note is registered shall be deemed the owner and holder thereof for all purposes hereof, and the Maker shall not be affected by any notice or knowledge to the contrary.

 

Upon request by a transferee of this Purchase Note that a new Purchase Note be issued or upon receipt by the Maker of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of this Purchase Note and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it, or (b) in the case of a request by a transferee that a new Purchase Note be issued or in the case of mutilation, upon surrender and cancellation of the Purchase Note, within two Business Days thereafter, the Maker shall execute and deliver, in lieu thereof, a new Purchase Note, dated so that no gain or loss of interest shall occur.

 

No delay, omission or waiver on the part of the Holder in exercising any right hereunder shall operate as a waiver of such right or any other right of the Holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion.  Except as otherwise set forth herein, the rights and remedies of the Holder are cumulative and not exclusive of any rights or remedies the Holder would otherwise have.

 

  

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The Maker hereby waives diligence, presentment, demand, protest, notice of dishonor and notice of any kind whatsoever, other than those notices specifically required by this Purchase Note.

 

The Maker’s obligations hereunder are absolute and unconditional and shall not be affected by any circumstance whatsoever, and the Maker hereby agrees to make all payments hereunder in full and when due, whether in respect to principal, interest or any other amount owed by the Maker hereunder, without notice, demand, counterclaim, setoff, deduction, defense, abatement, suspension, limitation, deferment, diminution, recoupment or other right that the Maker may have against the Holder hereof or any other person or entity, and the Maker hereby waives and agrees not to assert any defense (other than payment in accordance with the terms hereof), right of counterclaim, setoff or recoupment, or other right which it may have against the Holder hereof or any other person or entity.

 

The Maker shall not take any action which would cause any Letter of Credit to terminate prior to the LC Maturity Date.

 

As used in this Purchase Note, the following terms shall have the following meanings:

 

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person.

 

“Business Day” means a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealings in foreign exchange and foreign currency deposits) in New York City and London.

 

“Collateral Note” means a collateral note, deposit or similar instrument issued by the Bank or Substitute LC Bank, as applicable, or an Affiliate of the Bank or Substitute LC Bank, as applicable, which (i) bears interest based on the LIBO Rate for an interest period of three months set two London Business Days prior to the commencement of the relevant interest period, and (ii) provides for payment of interest 5 days prior to the dates set forth for payment of interest under this Purchase Note.

 

“GP LLC Agreement” means the Amended and Restated Limited Liability Company Agreement of Maker GP dated as of October 31, 2007.

 

“Holder’s Portion” means in connection with the provision by the Maker of a Holder Requested Substitute LC, the principal amount of this Purchase Note divided by the aggregate principal amount of all Purchase Notes then outstanding.

 

“Interest Payment Date” means the last day of each Interest Period and any other date on which the principal and interest on this Purchase Note is due and payable in full.

 

“Interest Period” means (i) initially, the period commencing on the date hereof and ending on January 31, 2008 and (ii) thereafter, each period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the third consecutive month ending after the month in which such immediately preceding Interest Period ended.  The determination of Interest Periods shall be subject to the following provisions:

 

  

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(i)           if any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the immediately succeeding Business Day; provided, however, that if any Interest Period would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the immediately preceding Business Day; and

 

(ii)           no Interest Period shall extend beyond the stated maturity date hereof.

 

“Interest Rate” means (i) for the first Interest Period [_______]% per annum and (ii) for each Interest Period thereafter a rate per annum equal to the LIBO Rate for such Interest Period plus the Margin.  Interest shall be computed based on the actual number of days in an Interest Period divided by 360.

 

“LIBO Rate” means, (i) [_______]% per annum for the first Interest Period, and (ii) for any subsequent Interest Period:

 

(a)           an interest rate per annum appearing on page BBAM on the Bloomberg Terminal (“Page BBAM”) (or any other page that may replace such page from time to time for the purpose of displaying offered rates of leading banks for London interbank deposits in United States dollars) at approximately 11:00 a.m. (London time) on the day that is two London Business Days prior to the commencement of such Interest Period for United States dollar deposits having a tenor equal to the duration of such Interest Period;

 

(b)           if a rate is not available, the rate per annum determined by the Paying Agent to be the arithmetic mean (rounded, if necessary, to the nearest fifth decimal place (with 5’s being rounded up)) of the respective rates of interest communicated by each of the Reference Banks to the Paying Agent as the rates at which such Reference Banks would offer a United States dollar deposit having a tenor equal to the duration of such Interest Period and an amount at least equal to US$100 million to prime banks in the London interbank market at approximately 11:00 a.m. (London time) on the day that is two London Business Days prior to the commencement of such Interest Period; provided, however, that if less than all Reference Banks provide such rate quotations, then the Paying Agent shall determine the above-mentioned arithmetic mean based on the rates quoted by those Reference Banks that provide such a quotation, and if only one Reference Bank provides such a rate quotation, then the Paying Agent shall use such sole Reference Bank’s quoted rate; or

 

(c)           if a rate cannot be determined pursuant to the foregoing provisions, the LIBO Rate for such Interest Period shall be the rate per annum determined by the Paying Agent to be the arithmetic mean (rounded, if necessary, to the nearest fifth decimal place (with 5’s being rounded up)) of the respective rates of interest communicated by each of the Reference Banks to the Paying Agent as the rates at which such Reference Banks would offer a United States dollar deposit having a tenor equal to the duration of such Interest Period and an amount at least equal to US$100 million to prime banks in the New York interbank market at approximately 11:00 a.m. (New York City time) on the first day of such Interest Period; provided, however, that if less than all Reference Banks provide such rate quotations, then the Paying Agent shall determine the above-mentioned

 

  

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arithmetic mean based on the rates quoted by those Reference Banks that provide such a quotation, and if only one Reference Bank provides such a rate quotation, then the Paying Agent shall use such sole Reference Bank’s quoted rate.

 

“London Business Day” means any day on which trading by and between banks in United States Dollar deposits in the London interbank market occurs.

 

“LP Agreement” means the Amended and Restated Limited Partnership Agreement of the Maker dated as of October 31, 2007.

 

“Maker GP” means GPB[___] LLC, a Delaware limited liability company.

 

“Maker Parent” means Crown Pine Parent, L.P., a Delaware limited partnership.

 

“Margin” means [______]%.

 

“Moody’s” means Moody’s Investors Service, Inc., and any successor thereto.

 

“Paying Agent” means The Bank of New York, a New York banking corporation, and any entity that may succeed to The Bank of New York as Paying Agent under the Paying Agency Agreement, dated as of October 26, 2007, among the Maker, The Bank of New York, [LC Bank] and JPMorgan Chase Bank, N.A.

 

“Person” means any individual, corporation, partnership, joint stock company, association, trust, joint venture or any other entity or organization, including a government or political subdivision or any agency or instrumentality thereof.

 

“Purchase Agreement” means the Amended and Restated Purchase Agreement dated as of October 31, 2007 among Maker Parent f/k/a Campbell/Southern Parent, LLC, Crown Pine Buyer 1, L.P. f/k/a Campbell/Southern Buyer, LLC, Crown Pine Buyer 2, L.P., Crown Pine Buyer 3, L.P., Crown Pine Buyer 4, L.P. and TIN Inc., as amended from time to time.

 

“Reference Banks” means The Royal Bank of Scotland plc, Barclays Bank PLC, Société Générale, Déxia Credit Local and The Bank of New York.

 

“Replacement Reserve Account” means the account of the Maker into which the Maker shall deposit, or cause to be deposited, an amount equal to the cash flow generated by any Collateral Note supporting the Letter of Credit in excess of the cash flow required to pay interest on this Purchase Note, if any, after taking into account any interest rate protection agreement to which the Maker is party.

 

“Standard & Poor’s” means Standard & Poor’s Ratings Service, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

 

All notices, requests, demands and other communications required or permitted hereunder shall be given in writing and delivered by hand or by registered or certified mail, or by recognized overnight delivery service, if to the Maker, to:

 

  

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Crown Pine Buyer [___], L.P.

 

c/o The Campbell Group, LLC

1 SW Columbia, Suite 1700

Portland, OR 97258

Attention: John S. Gilleland and Mark Simmons

Facsimile: 503-275-9667

 

and if to the Holder hereof, to such address as may be furnished by such Holder to the Maker in writing with copies to:

 

TIN Inc.

c/o Temple-Inland Inc.

1300 S. MoPac Expressway

Austin, TX 78746

Attention:  Treasurer

Facsimile: 512-434-8051

 

or to such other address as may be designated in writing by the Maker or the Holder hereof.

 

In case any one or more of the provisions hereof should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

This Purchase Note shall bind the Maker and the successors of the Maker, and the term “Maker” herein shall include the successors of the Maker.

 

The terms of this Purchase Note may be amended from time to time only by the written agreement of the Maker and the Holder.

 

Notwithstanding anything to the contrary contained in this Purchase Note, but subject to the last sentence of this paragraph, in any action or proceeding brought to enforce any obligation of the Maker under this Purchase Note or to exercise any right or remedy contained in this Purchase Note, no judgment, decree or other remedy shall be enforceable against, nor shall there be any recourse to, nor shall any such judgment or decree be subject to the execution or lien on, (i) any assets of any Affiliate of the Maker, (ii) any assets of any manager, trustee, administrator, officer, director, agent or other representative, stockholder, partner, equity holder, or member (whether direct or indirect) of the Maker or any of their respective successors or assigns (each, a “Maker Party”) or (iii) any assets of any manager, trustee, administrator, officer, director, agent, other representative, stockholder, partner, equity holder, or member (whether direct or indirect) of any Maker Party or any of their respective successors or assigns, nor shall the Holder seek any other relief with respect to Persons described in clauses (i) through (iii) of this paragraph, it being specifically understood and agreed that such Persons shall have no personal liability for the payment of any obligations of the Maker under this Purchase Note.  Notwithstanding anything to the contrary contained in this Purchase Note, but subject to the last sentence of this paragraph, the Holder agrees that neither it, nor any Person acting on its behalf, may assert any claim or cause of action for payment of any of the obligations of the Maker hereunder against any Affiliate of Maker, any Maker Party or any manager, trustee, administrator, officer, director,

 

  

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agent, other representative, stockholder, partner, equity holder, member (whether direct or indirect) of any Affiliate of Maker, any Maker Party or any of their respective successors or assigns.  By accepting this Purchase Note, the Holder agrees that subject to the last sentence of this paragraph, it shall not institute or join any other Person in instituting any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings or other proceedings under U.S. federal or state or other bankruptcy or similar laws (an “Insolvency Proceeding”) against Maker Parent or any other Affiliate of Maker. Nothing in this paragraph shall limit the Holder’s rights and remedies against Maker Parent, any successor obligor of the Limited Partner Note or any obligor of a Transferee Limited Partner Note (each as defined in the LP Agreement) with respect to the Limited Partner Note or Transferee Limited Partner Note or limit the Holder’s right to institute or join any other Person in instituting an Insolvency Proceeding against Maker Parent, any successor obligor of the Limited Partner Note or any obligor of a Transferee Limited Partner Note in respect of the obligations under the Limited Partner Note or Transferee Limited Partner Note.

 

The Maker and by accepting this Purchase Note, the Holder, each agrees that each Person from time to time holding debt financing of Maker Parent or any other Affiliate of Maker are express third party beneficiaries of the recourse limitations and non-petition agreements set forth in the preceding paragraph.

 

This Purchase Note and the rights and the duties of the Maker and the Holder hereunder shall be governed by, and construed and enforced in accordance with, the laws of the State of New York.

 

CROWN PINE BUYER [___], L.P.

By: GPB[___] LLC, its general partner

By:                                                                

      Name:

      Title:

  

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