Document:

exv10wxay

 

Exhibit 10(a)

Amendments to Long-Term Incentive Compensation Plan 

The Wells Fargo & Company Long-Term Incentive Compensation Plan is amended effective as of January
1, 2008 as set forth below. None of these amendments shall apply to Awards and to portions of
Awards that were outstanding and vested prior to January 1, 2005. As indicated below, some of
these amendments shall apply only to Awards granted on or after January 1, 2008.

1. The following new definition is inserted in Section 2.1, and all subsequent definitions in that
section are relettered accordingly:

	 	(bb)	 	“Specified Employee” means a Participant who is a “specified employee” within
the meaning of Treas. Reg. §1.409A-1(i), as determined in a uniform manner by the
Company or its duly authorized representative for purposes of this Plan and all other
nonqualified deferred compensation plans maintained by the Company and its affiliates.

2. The following is substituted for the third sentence of Section 6.5:

Payment shall be made in a single lump sum on such date after the end of the applicable
Performance Cycle as the Committee establishes at the time the Award is granted, subject to
such terms and conditions and in such form as may be prescribed by the Committee. The
payment date so established by the Committee shall not be later than March 1 of the year
after the year in which the Performance Cycle ends.

3. The phrase “or Restricted Share Rights,” is deleted from the last sentence of Section 6.5.

4. With respect to Awards granted on or after January 1, 2008 only, the following new sentence is
added at the end of Section 9.2:

Notwithstanding anything in this Section 9.2 to the contrary, settlement of Restricted Share
Rights shall be completed not later than March 1 of the year after the year in which the
vesting restrictions lapse on such Restricted Share Rights.

5. The following is added at the end of Section 9.3:

Any dividend equivalents payable pursuant to this Section 9.3 shall be paid no later than
March 1 of the year after the year in which the applicable dividend record date occurs.

6. With respect to Awards granted on or after January 1, 2008 only, Section 9.4 is revised to read
as follows:

9.4     Termination of Employment. Unless the Committee provides otherwise:

	 	(a)	 	Due to Death or Disability. If a Participant ceases to
be an Employee by reason of the Participant’s death or permanent disability,
all restrictions on

 

 

	 	 	 	the Restricted Share Rights of the Participant shall lapse in accordance
with the terms of the Award as determined by the Committee.
	 
	 	(b)	 	Due to Reasons Other Than Death or Disability. If a
Participant ceases to be an Employee for any reason other than death or
permanent disability, all Restricted Share Rights of the Participant and all
rights to receive dividend equivalents thereon shall immediately terminate
without notice of any kind and shall be forfeited by the Participant.

7. The following new Section 9.5 is added:

9.5     Settlement of Rights Granted Prior to January 1, 2008. Notwithstanding anything
in this Section 9 or in the applicable Award Agreements to the contrary, Restricted Share
Rights granted prior to January 1, 2008 that are outstanding on or after that date and that
were not earned and vested prior to January 1, 2005 (“Transition Awards”) shall be subject
to the following terms and conditions:

	 	(a)	 	Settlement of the portion of a Transition Award that vests on a
scheduled vesting date shall occur on that scheduled vesting date unless
earlier payment is required pursuant to subsection (d) below. Consistent with
the regulations under Code §409A, payment shall be treated as made on the
scheduled vesting date if it is actually made not later than the later of (i)
December 31 of the year in which the scheduled vesting date occurs or (ii) the
fifteenth day of the third month after the month in which the scheduled vesting
date occurs.
	 
	 	(b)	 	If a Participant ceases to be an Employee by reason of
Retirement prior to the scheduled vesting date for any portion of a Transition
Award and the Transition Award provides for earlier vesting due to Retirement,
the Restricted Share Rights granted by such portion shall be settled prior to
the scheduled vesting date only if the Participant’s termination of employment
is a “separation from service” within the meaning of Treas. Reg. §1.409A-1(h).
	 
	 	(c)	 	If a Participant ceases to be an Employee by reason of
permanent disability prior to the scheduled vesting date for any portion of a
Transition Award, the Restricted Share Rights granted by such portion shall be
settled prior to the scheduled vesting date only if the Participant’s
termination of employment is a “separation from service” within the meaning of
Treas. Reg. §1.409A-1(h) or if the Participant is considered disabled within
the meaning of Treas. Reg. §1.409A-3(i)(4).
	 
	 	(d)	 	If a Participant’s employment terminates due to death, due to a
Retirement that qualifies for early settlement as provided in subsection (b)
above, or due to a permanent disability that qualifies for early settlement as
provided in subsection (c) above, the portions of the Participant’s outstanding
Transition Awards that have a scheduled vesting date later than the July 1

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	 	 	 	next following the date on which the Participant’s employment terminates
shall be paid on such July 1; provided, however, that if:

	 	(i)	 	the Participant’s employment termination is
due to the Participant’s “separation from service” within the meaning
of Treas. Reg. §1.409A-1(h) and is not due to the Participant’s death
or disability (within the meaning of Treas. Reg. §1.409A-3(i)(4)); and
	 
	 	(ii)	 	such July 1 is less than six months after the
date of the Participant’s “separation from service”; and
	 
	 	(iii)	 	at the time of his or her “separation from
service” the Participant is a Specified Employee; then the
Participant’s outstanding Transition Awards shall be settled on the
earlier of their scheduled vesting date or six months after the date of
the Participant’s “separation from service”.

	 	(e)	 	Notwithstanding the foregoing provisions of this Section 9.5,
if a Participant elected pursuant to Section 22 to defer delivery of any vested
Shares payable pursuant to a Transition Award, such Shares shall be delivered
in accordance with the terms and conditions set forth in Appendix A to this
Plan.

8. The following is added at the end of Section 10.2:

The terms and conditions of any substitute or replacement award shall meet all requirements
necessary to prevent such substitute or replacement awards from being treated as the grant
of a new stock right or a change in the form of payment within the meaning of the final
regulations under Code §409A.

9. The following is added at the end of Section 11.2:

The terms and conditions of any substitute or replacement award shall meet all requirements
necessary to prevent such substitute or replacement awards from being treated as the grant
of a new stock right or a change in the form of payment within the meaning of the final
regulations under Code §409A.

10. The following new Section 13.3 is added:

	 	13.3	 	Notwithstanding anything in this Section 13 to the contrary, if any portion of
an Award that is subject to Code §409A may be distributed upon the event of a
Participant’s termination of employment (including but not limited to a termination of
employment that qualifies as a Retirement), the Participant will be deemed to have a
termination of employment with respect to such portion of the Award if and only if the
Participant has a “separation from service” within the meaning of Treas. Reg.
§1.409A-1(h).

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11. The following is added at the end of Section 14:

Notwithstanding anything in this Section 14 to the contrary, payment of the portion of any
Award that is subject to Code §409A shall not be accelerated pursuant to this Section 14
unless the event also qualifies as a change in the ownership or effective control of the
Company, or in the ownership of a substantial portion of the assets of the Company, within
the meaning of Treas. Reg. §1.409A-3(i)(5)(a “qualifying event”). In the event payment of
Shares attributable to Restricted Share Rights is accelerated pursuant to this Section 14,
such payment shall be made 30 days after the qualifying event.

12. The following is added at the end of Section 15:

Notwithstanding anything in this Section 15 to the contrary:

(A)     This Section 15 shall apply to Restricted Share Right, Performance Share or Performance
Unit Awards granted on or after January 1, 2007 without regard to whether the Participant
ceased to be an Employee due to Retirement.

(B)     Payment of the portion of any Restricted Share Right, Performance Share or Performance
Unit Award that is subject to Code §409A shall not be accelerated pursuant to this Section
15 unless the changes in the Board also qualify as a change in the effective control of the
Company within the meaning of Treas. Reg. §1.409A-3(i)(5)(vi).

(C)     Except as provided in (D) below, Shares attributable to Restricted Share Rights that are
payable to a Participant pursuant to this Section 15 shall be paid 30 days after the
Participant’s termination of employment.

(D)     Notwithstanding (C) above, the portion of any Restricted Share Right, Performance Share
or Performance Unit Award that is subject to Code §409A and becomes payable to an employee
pursuant to this Section 15 shall be paid six months after the date of such termination of
employment if the employee is a Specified Employee.

13. Section 22 is amended to read as follows:

	 	22.	 	Deferral of Payments. With respect to Awards granted before January 1,
2008, the Committee may provide for the deferred delivery of Shares upon settlement,
vesting or other events with respect to Restricted Stock or Restricted Share Rights, or
in payment or satisfaction of an Award of Performance Shares or Performance Units. The
terms and conditions of any such deferred delivery occurring on or after January 1,
2008, and of any deferral election made on or after such date, shall be as set forth in
the applicable Award Agreement and deferral election form, subject, however, to the
terms and conditions set forth in Appendix A to this Plan. This section shall not
apply and no right to defer delivery shall be given with respect to Awards granted on
or after that date.

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14. A new subsection (d) is added to Section 25:

	 	(d)	 	Any adjustment to Options or Stock Appreciation Rights made pursuant to this
Section 25 shall satisfy all requirements necessary to prevent the adjusted Awards from
being treated as the grant of a new stock right or a change in the form of payment
within the meaning of the final regulations under Code §409A.

15. A new Section 26 is added:

26.     Severability. If any provision of this Plan is determined to be illegal or
invalid (in whole or in part) for any reason, or if the Plan Administrator cannot reasonably
interpret any provision so as to avoid violation of Code §409A or constructive receipt of
compensation under this Plan before the actual receipt of such compensation, this Plan shall
be construed and enforced as if the provision had not been included.

16. A new Section 27 is added:

27.     Interpretation. This Plan, as amended, is intended to satisfy the requirements
of Code §409A and applicable guidance thereunder with respect to compensation payable
pursuant to this Plan that was not outstanding and vested prior to January 1, 2005. It is
not intended to materially modify the terms and conditions applicable to any other amounts
payable pursuant to this Plan. This Plan shall be construed and administered accordingly.

17. A new Section 28 is added:

28.     No Representation Made Regarding Code §409A Compliance. Notwithstanding any
other provision in the Plan, the Company makes no representations that the Awards granted
under the Plan shall be exempt from or comply with Code §409A and makes no undertaking to
preclude Code §409A from applying to Awards granted under the Plan.

18. A new Appendix A is added:

APPENDIX A

The following terms and conditions shall apply to the deferred delivery of Shares attributable to
Restricted Share Rights granted prior to January 1, 2008, to the extent such Restricted Share
Rights were not earned and vested prior to January 1, 2005.

1.     Deferral Elections. A Participant who wishes to defer the receipt of Shares payable pursuant to
Restricted Share Rights must file an irrevocable deferral election, subject to the following:

	 	(a)	 	Separate deferral elections shall be required for the Restricted Share Rights
granted pursuant to each Award.
	 
	 	(b)	 	A deferral election must apply to all of the Restricted Share Rights that are
scheduled to vest in a single calendar year under an Award.

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	 	(c)	 	The deferral election must be completed and filed more than 12 months prior to
the date on which the affected Restricted Share Rights are scheduled to vest, unless
the deferral election is made prior to January 1, 2009, in which case the deferral
election may be filed at any time prior to the year in which the Restricted Share
Rights are scheduled to vest. Deferral elections made on or after January 1, 2009 will
not take effect until 12 months after they are made and shall be void if the
Participant’s employment terminates before the end of such 12-month period.
	 
	 	(d)	 	The deferral election shall indicate the affected Award, the calendar year in
which the affected Restricted Share Rights under the indicated Award are scheduled to
vest, and the calendar year in which the Shares payable pursuant to the affected
Restricted Share Rights are to be paid (the “payment calendar year”). The payment
calendar year shall not be later than the calendar year that includes the 10th
anniversary of the affected Restricted Share Rights’ vesting date. With respect to
elections made after December 31, 2008, the payment calendar year for Restricted Share
Rights vesting prior to July 1st shall not be earlier than the year that includes the
5th anniversary of the calendar year in which the affected Restricted Share Rights will
vest, and the payment calendar year for Restricted Share Rights vesting on or after
July 1st shall not be earlier than the year that includes the 6th anniversary of the
calendar year in which the affected Restricted Share Rights will vest.

	2.	 	Payment.

	 	(a)	 	Except as otherwise provided in this Section 2, Shares deferred pursuant to an
election made in accordance with Section 1 above shall be distributed in July of the
elected payment calendar year.
	 
	 	(b)	 	Notwithstanding the payment calendar year elected by a Participant:

	 	(i)	 	If (ii) below does not apply and the Participant has a
“separation from service” with respect to the Company and its affiliates within
the meaning of Treas. Reg. §1.409A-1(h), or the Participant dies prior to such
a separation from service, the Shares deferred pursuant to a Participant’s
deferral elections shall be paid in the first July following such separation
from service or death; provided, however, that if:

	 	(A)	 	the Participant’s employment termination is
due to the Participant’s “separation from service” and not the
Participant’s death; and
	 
	 	(B)	 	the first day of such first July is less than
six months after the date of the Participant’s “separation from
service”; and
	 
	 	(C)	 	at the time of his or her “separation from
service” the Participant is a Specified Employee;

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	 	 	 	then the deferred Shares shall be paid six months after the date of the
Participant’s “separation from service”.
	 
	 	(ii)	 	If the Participant has a separation from service that qualifies
as a Retirement, the Shares deferred pursuant to the Participant’s deferral
elections shall be paid in July of the year after the year in which the
Participant’s separation from service occurs.

Form of Non-Qualified Stock Option Agreement for Grant to Richard M. Kovacevich on February 26, 2008

WELLS FARGO & COMPANY LONG-TERM INCENTIVE COMPENSATION PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT FOR

FEBRUARY 26, 2008 GRANT TO RICHARD M. KOVACEVICH

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grant Date:
	 	 	02/26/2008	 	 	 	 	Expiration Date:	 	 	02/26/2018	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Number of Shares:
	 	 	2,000,000	 	 	 	 	Exercise Price:	 	 	$31.40	 

1.     Grant of Option. Wells Fargo & Company (the “Company”) has granted to you an option
(“Option”) to purchase 2,000,000 shares (the “Shares”) of Wells Fargo & Company common stock
(“Common Stock”). The Option is granted subject in all respects to the terms of the Company’s
Long-Term Incentive Compensation Plan (the “Plan”).

2.     Term, Vesting and Exercise of Option. The term of this Option commences on 02/26/2008 and,
except as provided in paragraph 3 below, ends on 02/26/2018. Except as provided in paragraph 3
below, this Option becomes exercisable (“vests”) in full on 02/26/2011 (“vesting date”) provided
that beginning immediately after you cease to be an Employee and continuing until the vesting date
you satisfy each of the following conditions (“vesting conditions”): (i) you are available on a
reasonable basis for consultation with management and to represent the Company with customers, the
community and team members, (ii) you comply with the terms of the attached Wells Fargo Agreement
Regarding Trade Secrets, Confidential Information, And Non-Solicitation, and (iii) you do not
perform services as an employee, consultant or otherwise for a company or firm that is included in
the Company’s “Peer Group” as such term is defined in the Company’s proxy statement for its 2007
annual stockholders’ meeting filed under the Securities Exchange Act of 1934 and as such term may
be updated in a proxy statement for a subsequent annual stockholders’ meeting. To exercise all or
part of the Option you must complete the exercise in a manner authorized by the Company and deliver
payment as described herein of the exercise price and all applicable withholding taxes. You must
pay the exercise price on the day you exercise the Option (a) in cash, (b) in whole shares of
Common Stock valued at their Fair Market Value, or (c) by delivering irrevocable instructions to a
broker to promptly deliver to the Company the amount of the exercise price and all applicable
withholding taxes (a “cashless exercise”), unless you are an executive officer of the Company and
such cashless exercise is prohibited by the Sarbanes-Oxley Act of 2002. If Stock is used to pay
the exercise price (“swap transaction”), the Stock used (i) must have been owned by you for at
least six months prior to the date of exercise or purchased by you in the open market; and (ii)
must not have been used in a stock-for-stock swap transaction within the preceding six months. You
shall not have any rights as a stockholder with respect to the Shares of Common Stock subject to
the Option until you have exercised the Option for such Shares.

3.     Disability, Death or Discharge for Cause. If you become permanently disabled (as
determined by the Committee) before the vesting date, the Option is immediately vested and
exercisable and will remain exercisable until the Option expires or until one year after your date
of death, whichever occurs first. If you die before the vesting date, the Option is immediately
vested and exercisable and will remain exercisable until one year after your date of death. In the
event of your death, whether before or after vesting, your Beneficiary as determined in accordance
with the Plan may exercise the Option until one year after your date of death or until the Option
expires, whichever occurs first. If before the vesting date you fail to satisfy any vesting
condition in accordance with paragraph 2, the Option will expire immediately. If you are
discharged as an Employee for cause, the Option will expire immediately.

4.     Compliance and Withholding Taxes. The issuance of Shares upon the exercise of the Option shall
be subject to compliance by the Company and you with all applicable requirements of law relating
thereto, including withholding tax obligations, and with all applicable regulations of any stock
exchange on which the Common Stock may be listed at the time of such issuance. You agree to
satisfy all withholding tax obligations applicable to the acquisition of Shares under the Option or
the disposition of such Shares that the Company deems necessary. Income taxes are computed based
on the difference between the Fair Market Value of the Shares acquired as of the date of exercise
and the exercise price for those Shares. Taxes may be paid either in cash or, if you elect, by
having the Company withhold from the Shares to be issued a number of Shares (valued at their Fair
Market Value as of the date of exercise) necessary to satisfy the taxes. The Company is not
obligated to exercise the Option and/or deliver the Shares until all payment obligations are met.

5.     Nontransferability of Option. Unless the Committee provides otherwise, (i) no rights under
the Option will be assignable or transferable, and neither you nor your Beneficiary will have any
power to anticipate, alienate, dispose of, pledge or encumber any rights under the Option, and (ii)
the rights and the benefits of the Option may be exercised and received during your lifetime only
by you or your legal representative.

6.     No Agreement for the Company to Continue Your Employment. Nothing in this Agreement gives you
any right to continued employment and the Company may terminate you at any time for any reason.

7.     General Restrictions. The Company may delay the exercise of the Option if it determines that
(a) the Shares subject to the Option should be listed, registered or qualified on any securities
exchange or under any law, or (b) the consent of a regulatory body is desirable.

8.     Additional Provisions and Interpretation of this Agreement. This Agreement is subject to the
provisions of the Plan. Capitalized terms not defined in this Agreement are used as defined in the
Plan. If the Plan and this Agreement are inconsistent, provisions of the Plan will govern.
Interpretations of the Plan and this Agreement by the Committee are binding on you and the
Company.

Wells Fargo Agreement Regarding

Trade Secrets, Confidential Information, And

Non-Solicitation

I. Introduction

In consideration for the stock option grant awarded to me on February 26, 2008 by Wells Fargo
& Company (“the Company”), I acknowledge that the nature of my employment with the Company permits
me to have access to certain of its trade secrets and confidential and proprietary information and
that such information is, and shall always remain, the sole property of the Company. Any
unauthorized disclosure or use of this information would be wrongful and would cause the Company
irreparable harm. Therefore, I agree as follows:

II. Trade Secrets And Confidential Information

During the course of my employment I have acquired knowledge of the Company’s Trade Secrets
and other proprietary information relating to its business, business methods, personnel, and
customers (collectively referenced as “Confidential Information”). “Trade Secrets” are defined as
information, including but not limited to, a formula, pattern, compilation, program, device,
method, technique, or process, that: (1) derives independent economic value, actual or potential,
from not being generally known to the public or to other persons who can obtain economic value from
its disclosure or use and (2) is the subject of efforts that are reasonable under the circumstances
to maintain its secrecy. The Company’s Trade Secrets include, but are not limited to, the
following:

	 	•	 	the names, address, and contact information of the Company’s customers and prospective
customers, as well any other personal or financial information relating to any customer or
prospect, including, without limitation, account numbers, balances, portfolios, maturity
dates, loans, policies, investment activities and objectives;

	 
	 	•	 	any information concerning the Company’s operations, including without limitation,
information related to its methods, services, pricing, finances, practices, strategies,
business plans, agreements, decision-making, systems, technology, policies, procedures,
marketing, sales, techniques and processes;

	 
	 	•	 	any other proprietary and/or confidential information relating to the Company’s
customers, employees, products, services, sales, technologies, or business affairs.

I understand that Records of the Company also constitute Confidential Information and that my
obligation to maintain the confidentiality thereof continues at all times during and after my
employment. “Records” include, but are not limited to, original, duplicated, computerized,
memorized, handwritten or any other form of information, whether contained in materials provided to
me by the Company, or by any institution acquired by the Company, or compiled by me in any form or
manner including information in documents or electronic devices, such as software, flowcharts,
graphs, spreadsheets, resource manuals, videotapes, calendars, day timers, planners, rolodexes, or
telephone directories maintained in personal computers, laptop computers, personal digital assistants or any other device. These records do not
become any less confidential or proprietary to the Company because I may commit some of them to
memory or because I may otherwise maintain them outside of the Company’s offices.

I agree that Confidential Information of the Company is to be used by me solely and exclusively for
the purpose of conducting business on behalf of the Company. I am expected to keep such
Confidential Information confidential and not to divulge or disclose this information except for
that purpose. Upon my retirement, I agree to immediately return to the Company all Records and
Confidential Information, including information maintained by me in my office, personal electronic
devices, and/or at home.

III. Non-Solicitation Of Company’s Customers And Employees

I agree that for the period beginning on my retirement date with Company through February 26,
2011 (“the Non-Solicitation Period”), I will not interfere with the Company’s business by directly
or indirectly soliciting an employee to leave the Company’s employ, by inducing a consultant to
sever the consultant’s relationship with Company, or by directly or indirectly soliciting business
from any of the Company’s clients, customers, or prospective customers whose identity became known
to me during my employment with the Company. This limitation is not intended to limit the Company’s
right to prevent misappropriation of its Confidential Information beyond the Non-Solicitation
Period.

IV. Partial Invalidity

If any provision of this Agreement is held to be unenforceable by a court of competent
jurisdiction, such provision shall be enforced to the greatest extent permitted and the remainder
of this Agreement shall remain in full force and effect.

V. Choice Of Law/Integration/Survival

This Agreement and any dispute, controversy or claim which arises under or relates in any way
to it shall be governed by the law of the state where the incident(s) giving rise to the dispute or
claim arose. This Agreement supersedes any prior written or verbal agreements pertaining to the
subject matter herein, and is intended to be a final expression of our Agreement with respect only
to the terms contained herein. There may be no modification of this Agreement except in writing
signed by me and an executive officer of the Company. This Agreement: shall survive my employment
by the Company; inure to the benefit of successors and assigns of the Company, and is binding upon
my heirs and legal representatives.

Acknowledgment

I acknowledge that I have read, understand, and received a copy of this Agreement and will
abide by its terms.

	 	 	 	 	 
	/s/ Richard M. Kovacevich     

	 	February 28, 2008     
	 	 
	Richard M. Kovacevich

	 	Date	 	 

Form of Non-Qualified Stock Option Agreement for Executive Officers for Grants on and after
November 27, 2007

WELLS FARGO & COMPANY LONG-TERM INCENTIVE COMPENSATION PLAN

FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT FOR [GRANT DATE] GRANTS

	 	 	 
	Grant Date:

	 	Expiration Date:
	 
	 

	 	Exercise Price:

1.     Grant of Option. Wells Fargo & Company (the “Company”) has granted to you an option
(“Option”) to purchase shares (the “Shares”) of Wells Fargo & Company common stock (“Common Stock”)
in the number set forth on the acknowledgement screen for your grant, accessible through
Stock Options Management. The Option is granted subject in all respects to the terms of the
Company’s Long-Term Incentive Compensation Plan (the “Plan”).

2.     Term,
Vesting and Exercise of Option. The term of this Option commences on [grant date] and,
except as provided in paragraph 3 below, ends on [ten years from grant date], provided you
are continuously employed by the Company or an Affiliate (“Wells Fargo”). If your employment with
Wells Fargo is terminated, the Option may be exercised only as described in paragraph 3 below.

Except as provided in paragraph 3 below, this Option becomes exercisable (“vests”) according to the
following table provided it has not been terminated before such date in accordance with the
provisions of this Option:

	 	 	 	 	 
	 1/3

	 	of
Shares on
	 	[first anniversary of grant date]
	 1/3

	 	of Shares on
	 	[second anniversary of grant date]
	 1/3

	 	of Shares on
	 	[third anniversary of grant date]

To exercise all or part of the Option you must complete the exercise in a manner authorized by the
Company and deliver payment as described herein of the exercise price and all applicable
withholding taxes. You must pay the exercise price on the day you exercise the Option (a) in cash,
(b) in whole shares of Common Stock valued at their Fair Market Value, or (c) by delivering
irrevocable instructions to a broker to promptly deliver to the Company the amount of the exercise
price and all applicable withholding taxes (a “cashless exercise”), unless you are an executive
officer of the Company and such cashless exercise is prohibited by the Sarbanes-Oxley Act of 2002.
If Stock is used to pay the exercise price (“swap transaction”), the Stock used (i) must have been
owned by you for at least six months prior to the date of exercise or purchased by you in the open
market; and (ii) must not have been used in a stock-for-stock swap transaction within the preceding
six months. You shall not have any rights as a stockholder with respect to the Shares of Common
Stock subject to the Option until you have exercised the Option for such Shares.

3.     Retirement, Disability, Death or Other Termination of Employment. If your
termination of employment is due to Retirement, your Option will immediately vest and become
exercisable until the expiration date or until one year after your date of death, whichever occurs
first. If you become permanently disabled while you are employed by Wells Fargo, then your entire
Option is immediately vested and exercisable and will remain exercisable until one year after your
date of death or until the Option expires, whichever occurs first. If you die while you are
employed by Wells Fargo, the entire Option is immediately vested and exercisable, and your
Beneficiary as determined in accordance with the Plan may exercise the Option until one year after
the date of your death or until the Option expires, whichever occurs first.

If you leave Wells Fargo’s employment for any reason other than death, permanent disability,
Retirement, or discharge for cause, you may exercise that part of the Option which was exercisable
on the date of termination at any time within three (3) months after the date of termination or
until the expiration date of the Option, whichever occurs first. If you are discharged for cause,
the Option will expire upon receipt by you of oral or written notice of termination.

4.     Compliance and Withholding Taxes. The issuance of Shares upon the exercise of the Option shall
be subject to compliance by the Company and you with all applicable requirements of law relating
thereto, including withholding tax obligations, and with all applicable regulations of any stock
exchange on which the Common Stock may be listed at the time of such issuance. You agree to
satisfy all withholding tax obligations applicable to the acquisition of Shares under the Option or
the disposition of such Shares that the Company deems necessary. Income taxes are computed based
on the difference between the Fair Market Value of the Shares acquired as of the date of exercise
and the

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exercise price for those Shares. Taxes may be paid either in cash or, if you elect, by having the
Company withhold from the Shares to be issued a number of Shares (valued at their Fair Market Value
as of the date of exercise) necessary to satisfy the taxes. The Company is not obligated to
exercise the Option and/or deliver the Shares until all payment obligations are met.

5.     Nontransferability of Option. Unless the Committee provides otherwise, (i) no rights under
the Option will be assignable or transferable, and neither you nor your Beneficiary will have any
power to anticipate, alienate, dispose of, pledge or encumber any rights under the Option, and (ii)
the rights and the benefits of the Option may be exercised and received during your lifetime only
by you or your legal representative.

6.     No Agreement for Wells Fargo to Continue Your Employment. Nothing in this Agreement gives you
any right to continued employment and Wells Fargo may terminate you at any time for any reason.

7.     General Restrictions. The Company may delay the exercise of the Option if it determines that
(a) the Shares subject to the Option should be listed, registered or qualified on any securities
exchange or under any law, or (b) the consent of a regulatory body is desirable.

8.     Additional Provisions and Interpretation of this Agreement. This Agreement is subject to the
provisions of the Plan. Capitalized terms not defined in this Agreement are used as defined in the
Plan. If the Plan and this Agreement are inconsistent, provisions of the Plan will govern.
Interpretations of the Plan and this Agreement by the Committee are binding on you and the
Company.

- 8 -exv10wxfy

 

Exhibit 10(f)

Amendment to Directors Stock Compensation and Deferral Plan

Effective January 22, 2008, Article III of the Directors Stock Compensation and Deferral Plan
was amended to read in its entirety as follows:

	 	III.	 	SHARES AVAILABLE FOR AWARDS
	 
	 	 	 	Subject to Article VII and the following proviso, no more than 1,600,000 shares of
Common Stock (as adjusted to reflect the August 11, 2006 two-for-one stock split)
shall be awarded or made subject to stock options awarded under the Plan; provided,
however, that (i) effective January 22, 2008, an additional 100,000 shares of Common
Stock shall be available for, but limited to, deferrals of Cash Compensation and
dividend credits to Deferred Stock Accounts; and (ii) shares subject to options
granted hereunder (or assumed hereby) that are cancelled or expire without being
fully exercised and shares used to pay the exercise price for options granted
hereunder (or assumed hereby) may again be made subject to options granted under
this Plan with no effect on the foregoing limit. Shares awarded or made subject to
options hereunder may consist, in whole or in part, of authorized but unissued
Common Stock or treasury Common Stock not reserved for any other purpose. For
purposes of this Article III, options that are assumed from a Prior Plan shall be
deemed granted hereunder.

Directors Stock Compensation and Deferral Plan

WELLS FARGO & COMPANY

DIRECTORS STOCK COMPENSATION AND DEFERRAL PLAN

(As Amended and Restated as of January 1, 2008)

	I.	 	PURPOSE, HISTORY AND EFFECTIVE DATES

	 	A.	 	Purpose.
	 
	 	 	 	The purpose of the Wells Fargo & Company Directors Stock Compensation and Deferral
Plan (the “Plan”) is to provide non-employee members of the Board of Directors of
the Company with equity compensation and compensation deferral opportunities in
consideration for personal services rendered in their capacity as directors of the
Company. The Plan is also intended to aid in attracting and retaining individuals
of outstanding abilities and skills for service on the Company’s Board of Directors.
	 
	 	B.	 	Prior Plans.

 

 

	 	 	 	The Plan superseded the 1999 Directors Stock Option Plan, the 1999 Directors Formula
Stock Award Plan and the 1999 Deferral Plan for Directors (the “Prior Plans”)
effective on the date that the Plan was approved by the Company’s stockholders (the
“Effective Date”). Options outstanding on the Effective Date and amounts deferred
under the Prior Plans before the Effective Date of the Plan were assumed by the Plan
on such date. The terms of such options and deferrals remain the same as applicable
thereto under the Prior Plans, unless and until amended under the terms of the Plan.
	 
	 	C.	 	Restatement.
	 
	 	 	 	Pursuant to its authority to amend the Plan, the Committee has amended and restated
the Plan effective January 1, 2008 to address the requirements of Code §409A. The
Committee does not intend the amended and restated Plan document, or any subsequent
amendment, to materially modify the Plan with respect to Deferral Account balances
attributable to amounts earned and vested prior to January 1, 2005. To the extent
necessary to avoid such a material modification, any provision of the amended and
restated document or any subsequent amendment that otherwise would so modify the
Plan shall be construed and enforced as applicable only to the portion of Deferral
Account balances attributable to amounts that were not earned and vested prior to
that date.

	II.	 	DEFINITIONS
	 
	 	 	When used in this Plan, the following capitalized terms shall have the meanings indicated
below:

2

 

	 	 	 
	Affiliate

	 	Any entity other than the Company that would be
treated as part of a “single employer,” within
the meaning of Code §414(b) or (c), that includes
the Company.
	 
	 	 
	Award Date

	 	The day of the Company’s annual meeting of
stockholders in each year, beginning in 2003.
	 
	 	 
	Board

	 	The Board of Directors of the Company.
	 
	 	 
	Cash Compensation

	 	The annual retainer fees and Board and committee
meeting fees.
	 
	 	 
	Code

	 	The Internal Revenue Code of 1986, as from time
to time amended.
	 
	 	 
	Committee

	 	The Governance and Nominating Committee or any
successor committee of the Board; provided,
however, that if at the time of any Committee
action, any member of such committee does not
satisfy the requirements applicable to committee
approval contained in regulations of the
Securities and Exchange Commission promulgated
under Section 16 of the Securities Exchange Act
of 1934, and applicable interpretations thereof,
any such action must be taken or approved by the
Board.
	 
	 	 
	Common Stock

	 	Common Stock of the Company, $1 2/3 par value.
	 
	 	 
	Company

	 	Wells Fargo & Company.
	 
	 	 
	Deferral Account

	 	A bookkeeping account that reflects the Company’s
deferred compensation obligation under this Plan
to each Non-Employee Director who is a Deferral
Participant. A Deferral Account includes all of
the Deferral Participant’s Deferred Cash Accounts
and Deferred Stock Accounts.
	 
	 	 
	Deferral Election

	 	An irrevocable election by a Non-Employee
Director to defer receipt of Eligible
Compensation. Separate Deferral Elections shall
be required for the deferral of Formula Stock
Awards and the deferral of any other Eligible
Compensation. Deferral Elections applicable to
Eligible Compensation for a Deferral Year shall
not apply to Eligible Compensation for any other
Deferral Year.
	 
	 	 
	Deferral Participant

	 	Any Non-Employee Director who files a Deferral
Election and has not received full distribution
of his or her Deferral Account.
	 
	 	 
	Deferral Year

	 	The calendar year in which a Deferral Participant

earns the Eligible Compensation (other than

Retirement Conversion

3

 

	 	 	 
	 

	 	Amounts) that is subject to
a Deferral Election.
	 
	 	 
	Deferred Cash Account

	 	A sub-account of a Deferral Account created for a
Deferral Year, to which the Deferral Participant
may allocate all or a portion of that Deferral
Year’s deferred Cash Compensation and any other
Eligible Compensation that the Board deems
allocable to this subaccount.
	 
	 	 
	Deferred Stock Account

	 	A sub-account of a Deferral Account created for a
Deferral Year (i) to which the Deferral
Participant may allocate all or a portion of that
Deferral Year’s deferred Cash Compensation and
any other Eligible Compensation that the Board
deems allocable to this subaccount, and (ii) to
which the Plan automatically allocates all of
that Deferral Year’s deferred Formula Stock
Award. The sub-account to which any deferred
Retirement Conversion Amounts was credited under
a Prior Plan also is a Deferred Stock Account.
	 
	 	 
	Effective Date

	 	The date that the Plan was approved by the
Company’s stockholders.
	 
	 	 
	Eligible Compensation

	 	Eligible compensation includes Cash Compensation,
Formula Stock Awards, Retirement Conversion
Amounts and any other compensation that, prior to
the beginning of a Deferral Year, the Board has
designated as Eligible Compensation for that
Deferral Year.
	 
	 	 
	Fair Market Value

	 	The New York Stock Exchange-only closing price
per share of the Common Stock for the relevant
date (e.g., option grant date or exercise date,
stock award date, etc., as the case may be) or,
if the New York Stock Exchange is not open on the
relevant date, the New York Stock Exchange-only
closing price per share of the Common Stock for
the trading day immediately preceding the
relevant date.
	 
	 	 
	Formula Stock Award

	 	Any Award made pursuant to the Formula Stock
Award Program described in Article V of the Plan.
	 
	 	 
	Interest

	 	The earnings credited to a Deferred Cash Account.
For Deferred Cash Accounts relating to Deferral
Years 2006 and earlier, the Interest for a
calendar year is determined using the average
annual rate for 3-Year Treasury Notes for the
immediately preceding calendar year plus 2%.
	 
	 	 
	 

	 	For Deferred Cash Accounts relating to Deferral
Years 2007 and later, the Interest for a calendar
year is determined using the

4

 

	 	 	 
	 

	 	average annual rate
for 10-Year Treasury Notes for the immediately
preceding calendar year, up to a maximum of 120%
of the “Federal long-term rate” for annual
compounding prescribed under §1274(d) of the Code
for January of the calendar year for which the
Interest is being credited.
	 
	 	 
	Non-Employee Director

	 	Any member of the Board of Directors of the
Company who is not an employee of the Company
or of a subsidiary of the Company.
	 
	 	 
	Plan

	 	Wells Fargo & Company Directors Stock
Compensation and Deferral Plan.
	 
	 	 
	Plan Administrator

	 	The Company’s Director of Human Resources.
	 
	 	 
	Prior Plans

	 	The Wells Fargo & Company 1999 Directors Stock
Option Plan, 1999 Directors Formula Stock Award
Plan and 1999 Deferral Plan for Directors.
	 
	 	 
	Retirement Conversion 

Amount

	 	A dollar amount equal to the accrued benefits
under the former Wells Fargo & Company
Directors’ Retirement Plan or the Norwest
Corporation Retirement Plan for Non-Employee
Directors, calculated as if the director’s
service on the Board had ended as of November
2, 1998.
	 
	 	 
	Separation from Service

	 	A Non-Employee Director shall be deemed to have
had a Separation from Service at the time his
or her service as a member of the Board ceases,
or if later, when the Non-Employee Director is
deemed to have had a “separation from service”
within the meaning of Code §409A and applicable
regulations thereunder. Generally, a
Separation from Service will not occur within
the meaning of Code §409A if the Non-Employee
Director becomes an employee or continues to
perform other services for the Company as an
independent contractor.

	III.	 	SHARES AVAILABLE FOR AWARDS
	 
	 	 	Subject to Article VII, no more than 1,600,000 shares of Common Stock (as adjusted to
reflect the August 11, 2006 two-for-one stock split) shall be awarded or made subject to
stock options awarded under the Plan; provided, however, that shares subject to options
granted hereunder (or assumed hereby) that are cancelled or expire without being fully
exercised and shares used to pay the exercise price for options granted hereunder (or
assumed hereby) may again be made subject to options granted under this Plan with no effect
on the foregoing limit. Shares awarded or made subject to options hereunder may consist, in
whole or in part, of authorized but unissued Common Stock or treasury

5

 

	 	 	Common Stock not reserved for any other purpose. For purposes of this Article III, options
that are assumed from a Prior Plan shall be deemed granted hereunder.
	 
	IV.	 	STOCK OPTION AWARD PROGRAM

	 	A.	 	Formula Award of Options.
	 
	 	 	 	Each Non-Employee Director who is elected or re-elected to the Board of Directors by
the stockholders of the Company shall automatically receive an option as of each
Award Date to purchase that number of shares of Common Stock with a Fair Market
Value of $57,000 (or such other greater or lesser dollar amount, not to exceed
$150,000, as the Committee shall specify) on such date determined in accordance with
the Black-Scholes option pricing model but rounded up to the next whole share. A
Non-Employee Director who joins the Board of Directors on any date other than the
Award Date shall automatically receive as of such other date an option to purchase
Common Stock with the same value determined as of such other date, prorated to
reflect the number of months (rounded up to the next whole month) remaining until
the next Award Date. The exercise price per share for each stock option granted
under this Plan shall be the Fair Market Value of the Common Stock as of the date
the option is granted.
	 
	 	B.	 	Terms of Options.

	 	1.	 	Exercise Price and Vesting. Each option granted under
the Plan shall have an exercise price per share equal to the Fair Market Value
as of the grant date of the option. The exercise price shall be payable (i)
entirely in cash or (ii) entirely in Common Stock valued at Fair Market Value
on the date the option is exercised, in accordance with procedures determined
by the Plan Administrator, plus an amount of cash sufficient to avoid the
purchase of a fractional share of Common Stock. If the option exercise price
is paid using Common Stock, it (i) must have been owned by the optionee for at
least six months prior to the date of exercise or purchased by the optionee in
the open market; and (ii) must not have been used in a stock swap transaction
within the preceding six months. Regardless of how the option exercise price
is paid, withholding taxes arising out of the option exercise, if any, may be
paid in cash or in Common Stock. To the extent that no violation of Section
16(b) of the Securities Exchange Act of 1934 or any other law would result, the
payment of the exercise price of options granted hereunder may also be made by
delivering a properly executed exercise notice together with irrevocable
instructions to a broker, or some other communication acceptable to the
Company, requiring the delivery to the Company of sale or loan proceeds
sufficient to pay the option exercise price, together with any related
withholding taxes if no other payment for such taxes satisfactory to the
Company has been arranged; provided that such exercise shall be conditioned
upon, and no

6

 

	 	 	 	shares shall be issued pursuant to such exercise until, receipt of such
amount by the Company.
	 
	 	2.	 	Term and Exercisability. Except as set forth in
paragraph 3 below, options granted under the Plan shall become fully
exercisable six months after their grant date and shall remain exercisable
until the tenth anniversary of their grant date; provided that (i) if a
Non-Employee Director dies, all outstanding options previously granted to him
or her under this Plan shall become immediately exercisable and remain
exercisable until the earlier of (a) the first anniversary of the Non-Employee
Director’s death or (b) the tenth anniversary of the option grant date and (ii)
if a Non-Employee Director leaves the Board for cause, all outstanding options
granted to such Non-Employee Director under this Plan shall immediately
terminate and be cancelled as of the date he or she ceases to be a director. At
any time during which an option granted under the Plan is exercisable, the
option may be exercised in whole or in part.
	 
	 	3.	 	Reload Award. With respect to an option granted under
Section A of Article IV of the Plan on or before September 27, 2004 (an
“Original Option”), if while serving on the Board, a Non-Employee Director
exercises the Original Option and pays the option exercise price using Common
Stock in accordance with the terms of the Plan, the Non-Employee Director shall
automatically be granted a “reload” stock option on the date of such exercise.
The reload stock option grant shall equal the number of whole shares of Common
Stock used in the swap exercise to pay the option exercise price. Subject to
the provisions of Section B of Article IV, the reload stock option may be
exercised between the date of grant and the date of expiration of the Original
Option. No reload stock option shall be granted if the Original Option is
exercised after a Non-Employee Director leaves the Board of Directors of the
Company for any reason. No reload stock option shall be granted upon exercise
of a reload option or with respect to an option granted under Section A of
Article IV of the Plan on or after September 28, 2004.
	 
	 	4.	 	Transferability. No option granted under the Plan
shall be transferred or assigned other than (i) by will or the laws of descent
and distribution, (ii) to the extent required pursuant to a domestic relations
order that satisfies the requirements of Rule 16a-12 under the Securities
Exchange Act of 1934, or any successor rule, or (iii) by designation of a
beneficiary under this paragraph 4. An optionee may, by completing and signing
a written beneficiary designation form which is delivered to and accepted by
the Company, designate a beneficiary to exercise and receive any outstanding
options upon the optionee’s death. If at the time of the optionee’s death
there is not a fully effective beneficiary designation form on file, or if the
designated beneficiary does not survive the optionee, the legal representative
of the optionee’s estate shall have the right to exercise the

7

 

	 	 	 	option. During the lifetime of an optionee, options granted hereunder may
be exercised only by the optionee.
	 
	 	5.	 	Tax Status of Options. All options granted under the
Plan shall be non-qualified stock options not entitled to preferential tax
treatment under Code §422.

	V.	 	FORMULA STOCK AWARD PROGRAM

	 	A.	 	Formula Stock Award. Commencing with the Award Date, each Non-Employee
Director shall automatically receive shares of Common Stock on such date in the amounts
(but rounded up to the next whole share) set forth in paragraph 1, 2 or 3 below (as
applicable and subject to paragraph 4); provided, however, that if a Non-Employee
Director has not attended at least one Board meeting as a Non-Employee Director on or
before the date on which such award would otherwise be payable, such Non-Employee
Director shall instead be eligible to receive the award provided as of the next
succeeding date such awards are payable.

	 	1.	 	Election at Annual Meeting. A Non-Employee Director
who has served as a director of the Company for at least the entire month of
April in each year and is elected to the Board by the stockholders of the
Company at the annual meeting held in such month, or held later within such
year, shall receive as of the date of the meeting Common Stock with an
aggregate Fair Market Value of $50,000 as of the date of the annual meeting.
	 
	 	2.	 	After Annual Meeting Through September 30. A
Non-Employee Director who first joins the Board after the annual meeting of
stockholders in each year but on or before September 30 in such year shall
receive as of such September 30 Common Stock with an aggregate Fair Market
Value of $50,000 as of September 30th.
	 
	 	3.	 	October 1 Through March 31. A Non-Employee Director
who first joins the Board on or after October 1 in each year but on or before
March 31 in the following year shall receive as of the date of the next
succeeding annual meeting of stockholders Common Stock with an aggregate Fair
Market Value of $25,000 as of such succeeding annual meeting.
	 
	 	4.	 	Adjustment to Number of Shares. The Committee may
increase (by no more than 200%) or decrease the dollar amounts used to
determine the number of shares to be granted under paragraphs 1, 2 and 3 above.

	 	B.	 	Deferral of Awards.
	 
	 	 	 	A Non-Employee Director may elect, in accordance with the terms of Article VI of the
Plan, to defer receipt of all or a portion of the shares of Common Stock such
director has a right to receive under this Article V of the Plan.

8

 

	 	C.	 	Transferability.
	 
	 	 	 	No right to receive an award hereunder shall be transferable or assignable other
than (i) by will or the laws of descent and distribution, (ii) to the extent
required pursuant to a domestic relations order that satisfies the requirements of
Rule 16a-12 under the Securities Exchange Act of 1934, or any successor rule, or
(iii) by designation of a beneficiary under Article VI of the Plan with respect to
shares the receipt of which has been deferred thereunder.

	VI.	 	DEFERRAL PROGRAM

	 	A.	 	Deferral Elections for Eligible Compensation Earned and Vested Prior to
January 1, 2005.
	 
	 	 	 	Deferral Elections for Eligible Compensation earned and vested prior to January 1,
2005, were made pursuant to the terms of the Plan in effect at the time of the
Deferral Election (and not as provided in Section B, below).
	 
	 	B.	 	Deferral Elections for Eligible Compensation Not Earned and Vested Prior to
January 1, 2005.
	 
	 	 	 	A Non-Employee Director may elect to defer all or any portion of his or her Eligible
Compensation that was not earned and vested prior to January 1, 2005, by filing a
Deferral Election for the Deferral Year in which such Eligible Compensation is
earned in accordance with this Section B.

	 	1.	 	Content. A Deferral Election shall indicate i) the
amount of Eligible Compensation for the Deferral Year to be deferred, ii) the
allocation of deferred Cash Compensation (and any other Eligible Compensation
that the Board deems allocable) between the Deferred Cash Account and the
Deferred Stock Account, iii) when distribution of the deferred amounts will
commence, and iv) the form of distribution. Separate Deferral Elections shall
be required for the deferral of Formula Stock Awards and the deferral of other
Eligible Compensation.
	 
	 	2.	 	Election Timing. Subject only to the special rule for
new Non-Employee Directors set forth in paragraph 3 below, Deferral Elections
with respect to Eligible Compensation earned in a Deferral Year must be filed
with the Company before the beginning of that Deferral Year. Deferral
Elections applicable to Eligible Compensation for a Deferral Year shall not
apply to Eligible Compensation for any other Deferral Year.
	 
	 	3.	 	Newly Eligible Non-Employee Directors. A Non-Employee
Director who has not previously been eligible to participate in any elective
account balance plan (as defined in Treas. Reg. §1.409A-1(c)(2)(i)(A))
maintained

9

 

	 	 	 	by the Company or an Affiliate for independent contractors (including
directors), or whose previous participation in all such plans may be
disregarded pursuant to Treas. Reg. §1.409A-2(a)(7)(ii), may file a Deferral
Election applicable only to Eligible Compensation earned in the Deferral
Year in which the Deferral Election is filed, but only if the Deferral
Election is filed not more than thirty days after the date the individual
first becomes a Non-Employee Director. Deferral Elections pursuant to this
paragraph 3 shall be limited as follows:

	 	a.	 	If the Deferral Election is filed before the
individual becomes a Non-Employee Director, the Deferral Election shall
apply to all Eligible Compensation earned after the Deferral Election
is filed and during the Deferral Year in which the Deferral Election is
filed, including Cash Compensation and Formula Stock Awards.
	 
	 	b.	 	If the Deferral Election is filed after the
individual first becomes a Non-Employee Director but not more than
thirty days after that event, the Deferral Election shall apply only to
Cash Compensation earned in calendar quarters during the Deferral Year
in which the Deferral Election is filed that begin after the calendar
quarter in which the Deferral Election is filed. (For example, if an
individual who becomes a new Non-Employee Director on May
22nd files a Deferral Election on June 17th, that
Deferral Election will apply only to Cash Compensation for service from
July 1st through December 31st of the year in
which the Deferral Election is filed. It will not apply to any Formula
Stock Award earned for that year.) Any Deferral Election subject to
this subparagraph b that is filed later than September 30th
of the year of filing will have no effect.

	 	C.	 	Deferral Accounts.

	 	1.	 	Maintenance of Accounts. A Deferral Account will be
maintained for each Deferral Participant. Within each Deferral Account,
separate Deferred Cash Accounts and Deferred Stock Accounts will be maintained
for each Deferral Year.
	 
	 	2.	 	Cash/Stock Election. A Deferral Participant must
elect, at the time of his or her Deferral Election, to allocate deferred Cash
Compensation (and any other Eligible Compensation that the Board deems
allocable) between the Deferred Cash Account and the Deferred Stock Account for
the Deferral Year. Formula Stock Awards will be credited only to the Deferred
Stock Account for the Deferral Year. Retirement Conversion Amounts were
required under the Prior Plan to be credited to a Deferred Stock Account. Any
Eligible Compensation other than Cash Compensation, Formula Stock Awards and
Retirement Conversion Amounts that the Board does not deem allocable shall be
credited as provided by the Board.

10

 

	 	3.	 	Deferred Cash Account. Eligible Compensation allocated
to a Deferred Cash Account will be credited to that account as of the date the
Eligible Compensation otherwise would have been paid.
	 
	 	4.	 	Deferred Stock Account. Eligible Compensation
allocated to a Deferred Stock Account will be credited to that account as of
the date the Eligible Compensation would have otherwise been paid or realized.
Cash amounts will be converted into share equivalents of Common Stock in the
Deferred Stock Account based on the Fair Market Value of the Common Stock as of
the day the compensation would have otherwise been paid or realized.
	 
	 	5.	 	Interest. Deferred Cash Accounts will earn Interest.
Interest will be compounded annually and will be credited on the last day of
each calendar quarter. Interest will continue until all funds in the Deferred
Cash Account have been distributed in accordance with Section D or E of this
Article VI.
	 
	 	6.	 	Dividend Equivalents. Each time a dividend is paid on
the Common Stock, a Deferral Participant shall receive a credit to his or her
Deferred Stock Account. The amount of the dividend credit shall be the number
of share equivalents (rounded to the nearest one-hundredth) determined by
multiplying the dividend amount per share by the number of share equivalents
credited to the Deferral Participant’s Deferred Stock Account as of the record
date for the dividend and dividing the product by the Fair Market Value of the
Common Stock on the dividend payment date.
	 
	 	7.	 	Vesting. Each Deferral Participant will, at all times,
have a fully vested and non-forfeitable right to all amounts properly credited
to his or her Deferral Account.

	 	D.	 	Distribution of Balances Attributable to Eligible Compensation Earned and
Vested Prior to January 1, 2005.
	 
	 	 	 	Payment of the portion of a Deferral Participant’s Deferral Account that is
attributable to Eligible Compensation earned and vested prior to January 1, 2005
shall be made as provided in this Section D.

	 	1.	 	Distribution from the Deferred Cash Account. A
Deferral Participant’s Deferred Cash Account will be distributed in cash.
Distribution of the balance attributable to a Deferral Election will be made in
a lump sum or in up to 10 annual installments, as specified in that Deferral
Election, as of: i) March 1 of the first calendar year following termination of
the Deferral Participant’s service as a Non-Employee Director, or ii) March 1
of any other year elected by the Deferral Participant which begins at least 12
months following the year in which the deferred compensation would

11

 

	 	 	 	otherwise have been received, or iii) July 1 of the calendar year in which
the Deferral Participant’s service as a Non-Employee Director terminates if
such termination occurs on or before June 30; provided, however, that if
July 1 installments are elected, subsequent annual installments shall be
payable as of March 1 of each year thereafter. The amount of each
installment distribution will be equal to the total amount of the account
divided by the number of installments remaining to be made, including the
current installment. Notwithstanding the foregoing, a Deferral Participant,
while still a member of the Board, may elect one time to defer commencement
of distribution of the portion of a Deferred Cash Account attributable to a
Deferral Election until March 1 of any year so long as the new distribution
commencement date (i.e., March 1 of the year so elected) is at least 36
months beyond the original March 1 distribution commencement date or 44
months beyond the original July 1 distribution commencement date, as
applicable. To be effective, the election must be made by the Deferral
Participant at least 12 months prior to the original March 1 or July 1
distribution commencement date, as applicable. A new distribution
commencement election shall not change the form of distribution (lump sum or
installments) originally elected by the Deferral Participant.
	 
	 	2.	 	Distribution from the Deferred Stock Account. A
Deferral Participant’s Deferred Stock Account will be distributed in whole
shares of Common Stock. Distribution of the balance attributable to a Deferral
Election will be made in a lump sum or in up to 10 annual installments as
specified in that Deferral Election, as of: i) March 1 of the first calendar
year following termination of the Deferral Participant’s service as a
Non-Employee Director, or ii) March 1 of any other year elected by the Deferral
Participant which begins at least 12 months following the year in which the
deferred compensation would otherwise have been received, or iii) July 1 of the
calendar year in which the Deferral Participant’s service as a Non-Employee
Director terminates if such termination occurs on or before June 30; provided,
however, that if July 1 installments are elected, subsequent annual
installments shall be payable as of March 1 of each year thereafter. The
amount of each installment distribution will be equal to the total amount of
the account divided by the number of installments remaining to be made,
including the current installment, rounded up to the nearest whole share and
the whole number of shares so distributed shall be deducted from the total
amount of the account. The final distribution will be rounded up to the
nearest whole share. Notwithstanding the foregoing, a Deferral Participant,
while still a member of the Board, may elect one time to defer commencement of
distribution of the portion of a Deferred Stock Account attributable to a
Deferral Election until March 1 of any year so long as the new distribution
commencement date (i.e., March 1 of the year so elected) is at least 36 months
beyond the original March 1 distribution commencement date or 44 months beyond
the original July 1

12

 

	 	 	 	distribution commencement date, as applicable. To be effective, the
election must be made by the Deferral Participant at least 12 months prior
to the original March 1 or July 1 distribution commencement date, as
applicable. A new distribution commencement election shall not change the
form of distribution (lump sum or installments) originally elected by the
Deferral Participant.
	 
	 	3.	 	Death. If a Deferral Participant dies before receiving
all distributions to which he or she is entitled under this Article VI of the
Plan, all remaining distributions will be made in one lump sum. Such
distribution will be made to the Deferral Participant’s beneficiary as
determined pursuant to Section I of Article VI.
	 
	 	4.	 	Change of Control. At the time of a Deferral Election,
a Deferral Participant may also elect to have all amounts deferred pursuant to
this Plan become payable immediately if (i) a third person, including a “group”
as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes
the beneficial owner, directly or indirectly, of 25% or more of the combined
voting power of the Company’s outstanding voting securities ordinarily having
the right to vote for the election of the directors of the Company, or (ii)
individuals who constitute the Board of the Company as of January 1, 1999
(Incumbent Board) cease for any reason to constitute at least two-thirds
thereof, provided that any person becoming a director subsequent to said date
whose election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least three-quarters of the directors comprising the
Incumbent Board shall be, for purposes of this clause (ii), considered as
though such person were a member of the Incumbent Board. The value of a
Deferral Participant’s Deferred Stock Account for purposes of a distribution
under this paragraph 4 shall be the Fair Market Value of the Common Stock for a
day selected by the Plan Administrator which occurs not more than seven days
prior to the date payment is made to the Deferral Participant pursuant to this
paragraph 4.

	 	E.	 	Distribution of Balances Attributable to Eligible Compensation Not Earned
and Vested Prior to January 1, 2005.
	 
	 	 	 	Payment of the portion of a Deferral Participant’s Deferral Account that is
attributable to Eligible Compensation that was not earned and vested prior to
January 1, 2005 shall be made as provided in this Section E.

	 	1.	 	Lump Sum or Installment Distribution. At the time of
his or her Deferral Election, a Deferral Participant must elect in writing to
receive the balance attributable to the Deferral Election in either a lump sum
or in annual installments over a period of years up to ten. If the Deferral
Participant elects a lump sum, payment shall be made on the date elected in
accordance with paragraph 2 below. If the Deferral Participant elects

13

 

	 	 	 	installments, the first installment payment shall be made on the
commencement date elected in accordance with paragraph 2 below. Each
subsequent installment payment shall be made on March 1 of the installment
year. The amount of each installment distribution will equal the balance
attributable to the Deferral Election immediately preceding the distribution
divided by the number of installments remaining to be made, including the
current installment. In the case of distributions from a Deferred Stock
Account, installments will be rounded up to the nearest whole share. The
amount so distributed will be deducted from the balance attributable to the
Deferral Election immediately preceding the distribution.
	 
	 	2.	 	Timing of Distribution. A Deferral Participant must
elect to commence distribution of the balance attributable to a Deferral
Election at one of the following times:

	 	a.	 	July 1 immediately following Separation from Service;
	 
	 	b.	 	March 1 of the first calendar year following
Separation from Service; or
	 
	 	c.	 	March 1 of a calendar year designated by the
Deferral Participant which begins at least 12 months following the year
in which the Eligible Compensation otherwise would have been received.

	 	3.	 	Redeferral. A Deferral Participant who has not had a
Separation from Service may elect to delay the commencement of distribution of
the balance attributable to a Deferral Election until March 1 of any later year
so long as the new distribution commencement date (i.e., March 1 of the year so
elected) is at least 60 months beyond the original March 1 distribution
commencement date or 68 months beyond the original July 1 distribution
commencement date, as applicable. Any such redeferral election shall be made
by filing an election on a form and in the manner provided by the Plan
Administrator at least 12 months prior to the original March 1 or July 1
distribution commencement date, as applicable, and shall not take effect until
at least 12 months after the date on which it is filed. A redeferral election
made less than 12 months before the originally elected distribution
commencement date shall be void and have no effect. A redeferral election
shall not change the form of distribution (lump sum or installments) originally
elected by the Deferral Participant. Only one redeferral election shall be
permitted for amounts attributable to a Deferral Election.
	 
	 	4.	 	Death. If a Deferral Participant dies before receiving
all distributions to which he or she is entitled under this Article VI of the
Plan, the balance of the Deferral Participant’s Deferral Account will be
distributed in one lump

14

 

	 	 	 	sum 60 days after the Deferral Participant’s death. Such distribution will
be made to the Deferral Participant’s beneficiary as determined pursuant to
Section I of this Article VI.
	 
	 	5.	 	Form of Distributions. Distributions from a Deferral
Participant’s Deferred Cash Account shall be in cash. Except as provided in
paragraph 6 below, distributions from a Deferral Participant’s Deferred Stock
Account shall be in whole shares of Common Stock.
	 
	 	6.	 	Change of Control. At the time of his or her Deferral
Election, a Deferral Participant may elect in writing to commence distribution
of the outstanding balance attributable to that Deferral Election upon the
occurrence of a Change of Control, regardless of any other election made by the
Deferral Participant pursuant to paragraphs 1, 2 or 3 above. If a Deferral
Participant who makes an election pursuant to this paragraph elected to receive
the balance attributable to his or her Deferral Election in a lump sum, such
balance shall be paid 30 days after the date a Change of Control occurs. If a
Deferral Participant who makes an election pursuant to this paragraph elected
to receive the balance attributable to his or her Deferral Election in annual
installments, the first annual installment shall be paid 30 days after the date
a Change of Control occurs, and subsequent installments shall be paid on March
1 of each subsequent year, beginning with the year after the year in which the
first annual installment is due, until such balance is exhausted. For purposes
of this paragraph 6, a “Change of Control” shall be deemed to occur if there is
a change in the ownership of the Company, within the meaning of Treas. Reg.
§1.409A-3(i)(5)(v), or a change in the effective control of the Company, within
the meaning of Treas. Reg. §1.409A-3(i)(5)(vi). Subject to the preceding
sentence, a Change of Control will generally be deemed to occur:

	 	a.	 	on the date one person, or more than one person
acting as a group, acquires ownership of stock of the Company that,
together with stock held by the person or group, constitutes more than
50 percent of the total fair market value or total voting power of the
Company;
	 
	 	b.	 	on the date one person, or more than one person
acting as a group, acquires (or has acquired during the 12-month period
ending on the date of the person or group’s most recent acquisition)
ownership of stock of the Company possessing 30 percent or more of the
total voting power of the stock of the Company; or
	 
	 	c.	 	on the date a majority of members of the
Company’s Board are replaced during any 12-month period by directors
whose appointment or election is not endorsed by a majority of the

15

 

	 	 	 	members of the Board before the date of the appointment or election.

	 	 	 	For purposes of a distribution under this paragraph 6, the value of a
Deferral Participant’s Deferred Stock Account shall be the Fair Market Value
of the Common Stock for a day selected by the Plan Administrator which
occurs not more than seven days prior to the date payment is made to the
Deferral Participant pursuant to this paragraph 6.
	 
	 	7.	 	Payment Treated as Made on Designated Date. Consistent
with the regulations under Code §409A, a payment shall be treated as made on
the date specified by this Section E if it is actually made not earlier than 30
days before the specified date and not later than the later of (i) December 31
of the year in which the specified date occurs or (ii) the fifteenth day of the
third month after the month in which the specified date occurs. If the period
described in the preceding sentence includes dates in more than one taxable
year, the Deferral Participant shall not be permitted, directly or indirectly,
to designate the taxable year of payment.

	 	F.	 	Unsecured Obligation.
	 
	 	 	 	All amounts deferred pursuant to this Plan and credited to a Deferral Account will
be unfunded and unsecured and subject to obligations of the Company. Each Deferral
Participant’s right will be as an unsecured general creditor of the Company. Except
as set forth in Section G of this Article VI, no assets shall be set aside in trust
or otherwise hereunder.
	 
	 	G.	 	Trust Fund.
	 
	 	 	 	Shares of Common Stock equal to all or a portion of the share equivalents credited
to Deferred Stock Accounts under this Plan may, in the sole discretion of the
Company, be held and administered in trust (“Trust Fund”) in accordance with the
terms of this Plan. The Trust Fund will be held under a trust agreement between the
Company and Wells Fargo Bank, N.A., as Trustee, or any duly appointed successor
trustee. All Common Stock in the Trust Fund will be held on a commingled basis and
will be subject to the claims of general creditors of the Company in accordance with
the requirements of Revenue Procedure 92-65 or its successor. The Trustee, in its
discretion, will vote shares of Common Stock held in any Trust Fund under this Plan.
	 
	 	H.	 	Transferability.
	 
	 	 	 	No right to receive a distribution hereunder shall be transferable or assignable
other than (i) by will or the laws of descent and distribution, (ii) to the extent
required pursuant to a domestic relations order that satisfies the requirements of

16

 

	 	 	 	Rule 16a-12 under the Securities Exchange Act of 1934, or any successor rule, or
(iii) by designation of a beneficiary under Section I of this Article VI.
	 
	 	I.	 	Beneficiary.
	 
	 	 	 	A Deferral Participant may designate a beneficiary on or after the date he or she
files a Deferral Election and may, from time to time, change or revoke his or her
beneficiary designation and file a new beneficiary designation with the Company.
The designation of beneficiary will apply to all of the Deferral Participant’s
Deferral Account balances. In the absence of a valid designation, or if the
designated beneficiary does not survive the Deferral Participant, the distribution
will be made to the Deferral Participant’s estate. If any beneficiary dies after
becoming entitled to receive Plan distributions, the remaining distribution will be
made to the beneficiary’s estate.

	VII.	 	ADJUSTMENTS FOR CERTAIN CHANGES IN CAPITALIZATION
	 
	 	 	If any change is made to the Common Stock subject to the Plan or subject to any outstanding
option granted under the Plan or Formula Stock Award (whether by reason of merger,
consolidation, reorganization, recapitalization, stock dividend, stock split, combination of
shares, exchange of shares, change in corporate structure or otherwise), then appropriate
adjustments shall be made, consistent with the requirements of Code §409A, to (i) the
maximum number of shares that may be granted under the Plan or subject to options granted
under the Plan, (ii) the number of shares and exercise price per share of Common Stock
subject to options then outstanding under the Plan, and (iii) the number of share
equivalents credited to any Deferred Stock Account. The grant of options or Formula Stock
Awards under the Plan shall not affect the right of the Company to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate or sell or transfer all or any part of its business or assets. Any
fractional shares or share equivalents resulting from adjustments will be rounded to the
nearest whole share or share equivalent.
	 
	VIII.	 	ADMINISTRATION
	 
	 	 	The Plan Administrator’s responsibilities include, but are not limited to, the following:

	 	•	 	To adopt rules for administration of the Plan.
	 
	 	•	 	To interpret and implement the provisions of the Plan.
	 
	 	•	 	To resolve all questions regarding the administration, interpretation and
application of the Plan.

17

 

	 	•	 	To have all other powers as may be necessary to discharge responsibilities under the
Plan.

	 	 	The Plan Administrator’s determinations shall be conclusive and binding on all persons
claiming any benefit or right under the Plan.
	 
	IX.	 	TERM
	 
	 	 	The Plan will continue indefinitely, as it may be amended or modified from time to time,
until terminated. No options or Formula Stock Awards may be granted under the Plan after
the tenth anniversary of the Effective Date. Unless earlier terminated in accordance with
Article X, the Plan will terminate when there are no longer options outstanding hereunder
and all Deferral Account balances have been distributed.
	 
	X.	 	AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION
	 
	 	 	The Plan may be amended, modified, suspended or terminated at any time by action of the
Board of Directors or the Committee. No termination, suspension or modification of the Plan
will (i) adversely affect any right in any option outstanding hereunder to the extent the
same has not been exercised unless otherwise agreed to by the optionee or (ii) adversely
affect any benefits to which a Deferral Participant would have been entitled under Article
VI if termination of the Deferral Participant’s service as a Non-Employee Director had
occurred on the day prior to the date such action was taken, unless agreed to by the
Deferral Participant. It will be conclusively presumed that any adjustment for changes in
capitalization provided for in Article VII does not adversely affect any such right.
Notwithstanding the above, upon termination of the Plan, the Board or the Committee may
mandate the immediate distribution of all amounts held in Deferral Accounts; provided,
however, that accelerated distribution of the portions of Participants’ Deferral Accounts
that are subject to Section E of Article VI of this Plan (i.e., balances attributable to
eligible compensation not earned and vested prior to January 1, 2005) shall only be
permitted on account of Plan termination in accordance with Treas. Reg. §1.409A-3(j)(4)(ix),
which generally permits:

	 	a.	 	termination and liquidation of the Plan if that occurs within
12 months of a corporate dissolution or bankruptcy;
	 
	 	b.	 	termination and liquidation of the Plan pursuant to irrevocable
action taken during the period commencing 30 days before and ending 12 months
after a change in control event within the meaning of Treas. Reg.
§1.409A-3(i)(5), but only if all deferred compensation arrangements sponsored
by the Company and its Affiliates that are treated as a single plan under
Treas. Reg. §1.409A-1(c)(2) that includes this Plan are terminated and
liquidated with respect to every participant who experienced such change in
control event, and all amounts payable under such single plan for such
participants are paid within 12 months after the irrevocable action is taken;
or

18

 

	 	c.	 	termination and liquidation of the Plan, provided:

	 	(1)	 	the termination and liquidation is not
proximate to a downturn in the financial health of the Company and its
Affiliates,
	 
	 	(2)	 	the Company and its Affiliates also terminate
and liquidate all other deferral arrangements that would be aggregated
with the Plan under Treas. Reg. §1.409A-1(c)(2);
	 
	 	(3)	 	no accelerated payments are made within 12
months after irrevocable action is taken to terminate and liquidate the
Plan,
	 
	 	(4)	 	all payments are made within 24 months after
all necessary action is taken to irrevocably terminate and liquidate
the Plan, and
	 
	 	(5)	 	during the three years after such irrevocable
action is taken the Company and its Affiliates do not adopt a new plan
that would be aggregated with the Plan under Treas. Reg.
§1.409A-1(c)(2) if the Plan still existed.

	 	 	The foregoing provisions of this Article X shall not prohibit the earlier distribution of
any Deferral Account in accordance with the provisions of Article VI.
	 
	XI.	 	MISCELLANEOUS

	 	A.	 	No Guaranty of Service.
	 
	 	 	 	Neither participation in this Plan nor the grant of any award hereunder constitutes
a guarantee or contract of service as a Non-Employee Director.
	 
	 	B.	 	Governing Law.
	 
	 	 	 	The Plan and all determinations made and actions taken pursuant hereto shall be
governed by and construed in accordance with the law of the State of Delaware.
	 
	 	C.	 	Severability.
	 
	 	 	 	If any provision of the Plan is determined to be illegal or invalid (in whole or in
part) for any reason, or if the Plan Administrator cannot reasonably interpret any
provision so as to avoid violation of Code §409A or constructive receipt of
compensation under this Plan before the actual receipt of such compensation, this
Plan shall be construed and enforced as if the provision had not been included.

19

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