Document:

EX-10.1

 

Exhibit 10.1

THE LUBRIZOL CORPORATION

FINANCIAL PLANNING PROGRAM

Introduction

     The Board of Directors (“the Board”) of The Lubrizol Corporation (“the Company”) wishes to
assist certain key employees by alleviating the burden associated with personal financial, tax, and
estate planning matters, as they focus on Lubrizol business. The Company will assist such
employees by encouraging them to seek professional assistance for such matters. To further such
purpose, The Lubrizol Corporation Financial Planning Program (“the Program”) has been designed to
pay for such financial planning. Accordingly, the Program is hereby adopted by the Company as
hereinafter set forth.

Applicability of the Program

Eligibility

     The Organization and Compensation Committee of the Board (“the Committee”) may approve
monetary sums (“Awards”) to be paid as reimbursement for amounts expended by Key Employees for
Covered Professional Services or as payments by the Company to firms selected to provide Covered
Professional Services (“Preferred Providers”). “Key Employees” shall mean those employees of the
Company, or its subsidiaries, so designated by the Committee. A Key Employee will be notified by
letter from the Company of the approval of an Award.

Frequency and Amount of Awards

     The Committee may approve Awards on an annual basis and in such amounts as it deems
appropriate.

Election

     After the Committee approves Awards, the Key Employee shall elect between reimbursement for
expenditures or using a Preferred Provider. If the Key Employee elects to use a Preferred
Provider, such Key Employee shall notify the Chief Financial Officer of the election. The Key
Employee may change the election for a given year only if the Key Employee has not incurred Covered
Professional Services for the fiscal year and notifies the Chief Financial Officer of the change.
Persons who first become Key Employees after September 27, 1999, are not eligible for reimbursement
for expenditures and may only use a Preferred Provider under this Program. Notwithstanding the
foregoing, with respect to persons who first become Key Employees on or after March 24, 2003, the
Committee shall determine the type of Award (reimbursement for expenditures or Preferred Provider)
for which the person is eligible.

Reimbursement for Expenditures

     A Key Employee must receive prior approval from the Chief Financial Officer before incurring
Covered Professional Services. Notwithstanding the fact that an Award to a Key Employee has been
approved by the Committee, such Key Employee will not receive as a reimbursement all, or any part,
of such Award until the Key Employee presents evidence to the

 

 

Company’s Chief Financial Officer to the effect that such Key Employee has made expenditures for
Covered Professional Services. If the Key Employee elects reimbursement of expenditures, the
Award, or any part thereof, can be used by the Key Employee during the fiscal year (beginning May
1st) in which the Award is made, or in any of the succeeding two fiscal years.

Preferred Provider

     If the Key Employee chooses to use a Preferred Provider for a given fiscal year, such Key
Employee may use carryovers of any previous Awards during that fiscal year. If the Key Employee
fails to use the Preferred Provider during the year after having so elected, there will be no
carryover of that year’s Award to a succeeding year.

Covered Professional Services

     Covered Professional Services shall include:

	 	•	 	Professional services for financial planning, including
retirement, estate and insurance planning. The foregoing shall
include professional services for the preparation of wills and
trusts.
	 
	 	•	 	Professional services for the management of assets, or for record
keeping with respect to assets. (The types of services
contemplated are those normally provided by a trust department or
a brokerage firm.)
	 
	 	•	 	Professional services for tax planning, including services for
income, gift and estate planning, and audits. (Payments for
services provided in connection with the handling of tax
controversies will not be made.)
	 
	 	•	 	Professional services for tax return preparation for the Key
Employee, the Key Employee’s spouse, and for those dependent
children of the Key Employee.

Termination of Employee

     An Award, or any part thereof, that has not been used prior to the voluntary or involuntary
termination of employment of the Key Employee shall lapse. Notwithstanding the preceding sentence,
a Key Employee may use an Award subsequent to termination of employment if such termination is a
result of retirement provided that Covered Professional Services are incurred and submitted for
reimbursement, if applicable, by the Key Employee within one year subsequent to the Key Employee’s
retirement date, and a Key Employee’s family or personal representative may use an Award subsequent
to the Key Employee’s death provided that Covered Professional Services are incurred and submitted
for reimbursement, if applicable, within one year after death.

Miscellaneous

     The Company will gross up any Award used under the Program. The Company may withhold from any
Award payable under the Program or from the Key Employee’s salary ( in the case of use of a
Preferred Provider), all federal, state, city or other taxes as shall be required pursuant to any
law or government regulation or ruling.

Amendment and Termination

     The Program may be terminated or amended in any respect by the Company.EX-10.1

 

EXHIBIT 10.1

FIRST AMENDMENT OF

SUPPLEMENTAL DEFERRED COMPENSATION AGREEMENT

     This First Amendment of the Supplemental Deferred Compensation Agreement is made and entered
into effective August 1, 2006 by and between Manufacturers and Traders Trust Company (hereinafter
referred to as the “Company” and Robert E. Sadler, an individual residing at 35 New Amsterdam
Avenue, Buffalo, New York 14216 (hereinafter referred to as “Executive”).

     WHEREAS, the parties hereto entered into that certain Supplemental Deferred Compensation
Agreement dated March 7, 1985 (the “Agreement”); and

     WHEREAS, the parties wish to amend the Agreement to clarify and reflect the mutual
understanding and intentions of the parties with respect to the Agreement and to comply with the
requirements of the Internal Revenue Code as amended by the American Jobs Creation Act of 2004.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein
contained, the parties hereto agree as follows:

     1. Definitions. Except as expressly stated otherwise herein, capitalized terms in
this First Amendment shall have the meanings given to them in the Agreement.

     2. Amendments.

     (a) Section 1.1 of the Agreement shall be amended by deleting the words “Manufacturers
and Traders Trust Company Retirement Plan and by substituting therefor “M&T Bank Corporation
Pension Plan”.

     (b) Section 1.3 of the Agreement shall be amended by deleting it in its entirety and by
substituting a new Section 1.3 to read as follows:

	 	1.3	 	“Average Annual Compensation” and
“Compensation” shall have the same meanings accorded to such words
under the provisions of the Retirement Plan as in effect on December
31, 2005 and without regard to the dollar amount of annual compensation
limitation under Section 401(a)(17) of the Code, as in effect and
adjusted from time to time under such section.

     (c) Section 1 shall be amended by adding at the end thereof new subsections 1.8,
1.9, 1.10, 1.11, 1.12 and 1.13 to read as follows:

	 	1.8	 	“Code” shall mean the Internal Revenue Code of
1986, as amended.
	 
	 	1.9	 	“Separation from Service” shall mean Executive’s separation from service
(within the meaning of Section 409A of the Code) with the Company and
all entities which would be considered a single employer with the
Company under Section 414(b) and (c) of the Code.

 

 

	 	1.10	 	“Surviving Spouse’s Benefit Commencement Date” shall mean the date on
which the Surviving Spouse’s Supplemental Death Benefit becomes payable
under this Agreement.
	 
	 	1.11	 	“Surviving Spouse” shall mean the spouse (as
defined and interpreted under the Retirement Plan) to whom the Executive
was married for at least 12 months at the time of the Executive’s
death.
	 
	 	1.12	 	“Supplemental Death Benefit” shall mean an
annual annuity payable over the lifetime of a Surviving Spouse upon the
death of the Executive prior to Executive’s commencement of his Benefit
under this Agreement as provided in Sections 3.4 and 3.5 of this
Agreement.
	 
	 	1.13	 	“Earliest Retirement Age” shall mean (a) age
65, if the Executive is credited with less than 10 years of Vesting
Service under the Retirement Plan or (b) age 55, if the Executive is
credited with at least 10 years of Vesting Service under the Retirement
Plan.

     (d) Section 2.1 shall be amended by deleting the words “termination of employment” in
each place those words appear and by substituting the term “Separation from Service”.

     (e) Section 2.2 shall be amended by deleting the words “termination of employment” in
each place those words appear and by substituting the term “Separation from Service”.

     (f) Section 2.3 shall be amended by deleting the words “termination of employment” and
by substituting the term “Separation from Service”.

     (g) Section 3 of the Agreement shall be amended by deleting it in its entirety and by
substituting a new Section 3 to read as follows:

     3. METHODS OF PAYMENT

     3.1 Payment Elections.

	 	(a)	 	Not later than December 31, 2006, the Executive, in lieu of receiving
his supplemental retirement benefit in the form of a single life annuity,
may make an election as to the form of payment of his benefit under (b)
below. The election made under this Section 3.1 shall be made in the
manner prescribed by the Company.
	 
	 	(b)	 	The Executive may elect to have his
benefit paid as either (i) a Five-, Ten- or Fifteen-Year Certain
Life Annuity or (ii) a Joint and Survivor Annuity. In the event of
an election under this paragraph (b) the monthly amount of the
benefit payable shall be reduced and adjusted in the same
manner as optional forms of benefit under the Retirement Plan. In
the event the Executive elects an optional form of benefit pursuant
to this

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	 	 	 	paragraph (b) a survivor benefit shall be payable under this
Agreement to the beneficiary designated by the Executive.
	 
	 	(c)	 	Subject to Sections 3.2 and 3.3 hereof,
the Executive’s elections under this Section 3.1 shall be
irrevocable and may not be changed, except that, if the Executive
elects an annuity form of payment, then prior to his termination of
employment date, the Executive may revoke his annuity election and
make a new election for a different actuarially equivalent (as
defined in the Retirement Plan) annuity.

	 	3.2	 	Mandatory Delay in Benefit Payments.
Notwithstanding Section 3.1 hereof, to the extent required by Section
409A of the Code, the Company shall delay payment to the Executive of
any benefit provided under this Agreement if the Executive is a
“specified employee” (as defined below) until the earlier of (a) the
date that is six months after the date of any termination of employment
or other event that constitutes the Executive’s Separation from
Service, or (b) the date of the Executive’s death. The aggregate amount
of payments otherwise payable during this delay period (plus interest
thereon at the Applicable Federal Rate, provided that such interest
does not cause this Agreement to violate Section 409A of the Code)
shall be payable to the Executive as soon as practicable after the
expiration of the delay period. For purposes of this Section 3.2, the
term “specified employee” shall have the same meaning as under Section
409A of the Code.
	 
	 	3.3	 	Discretionary Delay in Payments.
Notwithstanding Section 3.1 hereof, the Company may delay payment of
any benefit provided under this Agreement by reason of any event(s) or
condition(s) permitted under Section 409A of the Code, including
without limitation, delays relating to (a) nondeductible compensation
payments under Section 162(m) of the Code; (b) violations of loan
agreements; and (c) violations of federal securities law or other
applicable laws.
	 
	 	3.4	 	Pre-2007 Commencement of Supplemental Death
Benefit. If the Surviving Spouse begins to receive pre-retirement
survivor benefits under the Retirement Plan prior to January 1, 2007,
the Surviving Spouse shall be paid under this Agreement a Supplemental
Death Benefit hereunder beginning on the date on which the Surviving
Spouse begins receiving pension or pre-retirement survivor benefits
under the Retirement Plan, and the form of the payment of the
Supplemental Death Benefit hereunder shall be in the same form of
payment as the Surviving Spouse’s 50% pre-retirement survivor benefit
under the Retirement Plan.
	 
	 	3.5	 	Post-2007 Commencement of Supplemental
Death Benefit. A Supplemental Death Benefit shall be payable under
this Agreement to the Surviving Spouse as follows:

	 	(a)	 	If a Surviving Spouse does not begin to
receive pre-retirement survivor benefits under the Retirement Plan
before January 1, 2007, the Benefit Commencement Date of the
Surviving Spouse’s Benefit shall be the later
of the date (i) on which the Executive attains Earliest Retirement
Age (or would have attained Earliest Retirement Age assuming that the

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	 	 	 	Executive terminated employment on the date of his death and survived
until such age) or (ii) of the Executive’s death.
	 
	 	(b)	 	The Supplemental Death Benefit payable
under this Section 3.5 shall be paid or begin to be paid on the
Surviving Spouse’s Benefit Commencement Date or as soon as
practicable thereafter, but later than the later of (i)
December 31 of the calendar year in which the Benefit Commencement
Date occurs, or (ii) the 15th day of the third calendar
month following the Benefit Commencement Date.
	 
	 	(c)	 	The form of payment under this Section
3.5 shall be in the same form of payment as the Surviving Spouse’s
50% pre-retirement survivor benefits under the Retirement Plan.

     (h) Section 4.2 of the Agreement shall be amended by inserting prior to the word
“Board” the following words “Nomination, Compensation and Governance Committee of
the”.

     (i) Amend Section 4 of the Agreement by adding a new Section 4.7 to read as follows:

	 	4.7	 	Compliance with Section 409A of the
Code. This Agreement is intended to comply with the requirements
of Section 409A of the Code, and shall be administered and interpreted
in accordance with its requirements. If any provision of the Agreement
conflicts with the requirements of Section 409A of the Code, the
requirements of Section 409A shall supersede any such provisions.

     4. In all other respect the provisions of the Agreement shall remain unchanged.

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the day and year
first written above.

	 	 	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY

 	 
	 	By:  	/s/ Stephen J. Braunscheidel
 	 
	 	 	Stephen J. Braunscheidel, Executive Vice President 	 
	 	 	 	 
	 
	 	 	 
	 	 	/s/ Robert E. Sadler
 	 
	 	 	Robert E. Sadler 	 
	 	 	 	 
	 

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