KEYCORP /NEW/
EX-10.22 DIRECTORS' DEFERRED SHARE PLAN
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<TYPE>EX-10.22
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<FILENAME>l05643aexv10w22.htm
<DESCRIPTION>EX-10.22 DIRECTORS' DEFERRED SHARE PLAN
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<TITLE>EX-10.22 Directors' Deferred Share Plan</TITLE>
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<P align="right"><FONT size="2"><B>Exhibit&nbsp;10.22</B></FONT>

<P align="center"><FONT size="2"><B>KEYCORP DIRECTORS&#146; DEFERRED SHARE PLAN</B>
</FONT>

<P align="center"><FONT size="2"><B>ARTICLE I</B>
</FONT>

<P align="center"><FONT size="2"><B>PURPOSE</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this KeyCorp Directors&#146; Deferred Share Plan (&#147;Plan&#148;) is to
attract, retain and compensate highly qualified individuals to serve as
Directors and to align the interests of Directors with the shareholders of the
Corporation further and thereby promote the long-term success and growth of the
Corporation.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE II</B>
</FONT>

<P align="center"><FONT size="2"><B>DEFINITIONS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Plan, the following words and phrases shall have the
meanings hereinafter set forth, unless a different meaning is clearly required
by the context:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Account&#148;: A bookkeeping account in which Deferred Shares
shall be recorded and to which dividends may be credited in
accordance with the Plan.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Beneficiary&#148; or &#147;Beneficiaries&#148;: The person or persons
designated by a Director in accordance with the Plan to receive
payment of the Director&#146;s Account in the event of the death of the
Director.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Beneficiary Designation&#148;: An agreement in substantially the
form adopted and modified from time to time by the Corporation
pursuant to which a Director may designate a Beneficiary or
Beneficiaries.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(d)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Board&#148;: The Board of Directors of the Corporation.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(e)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Change of Control&#148;: A Change of Control shall be deemed to
have occurred if, under any rabbi trust arrangement maintained by
the Corporation (the &#147;Trust&#148;), as such Trust may from time to time
be amended or substituted, the Corporation is required to fund the
Trust to secure the payment of any Deferred Shares because a &#147;Change
of Control,&#148; as defined in the Trust, has occurred on or after the
effective date of the Plan.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(f)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Change of Control Election&#148;: The meaning set forth in
Section&nbsp;4.6(a).</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(g)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Committee&#148;: The Nominating and Corporate Governance
Committee of the Board or any successor committee designated by the
Board.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(h)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Common Shares&#148;: The Corporation&#146;s common shares, $1.00 par
value per share. Common Shares may be shares of original issuance
or treasury shares or a combination of the foregoing.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(i)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Common Shares Account&#148;: The meaning of such term as set
forth in the Corporation&#146;s Director Deferred Compensation Plan.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(j)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Corporation&#148;: KeyCorp or any successor or successors
thereto.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(k)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Deferral Period&#148;: The meaning set forth in Section&nbsp;4.2.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(l)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Deferred Shares&#148;: A right to receive Common Shares or the
equivalent cash value thereof granted pursuant to Article&nbsp;III.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(m)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Director&#148;: An individual duly elected or chosen as a
Director of the Corporation who is not also an employee of the
Corporation or any of its subsidiaries.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(n)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Fair Market Value&#148;: The mean between the high and low sales
price of the Common Shares as reported on the New York Stock
Exchange for a day specified herein for which such fair market value
is to be calculated, or if there was no sale of Common Shares so
reported for such day, on the most recently preceding day on which
there was such a sale, or if the Common Shares are not listed or
admitted for trading on the New York Stock Exchange on the day as of
which the determination is being made, the amount determined by the
Board to be the Fair Market Value on that date.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(o)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Plan&#148;: The Plan set forth in this instrument as it may from
time to time be amended.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(p)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Plan Year&#148;: The fiscal year of the Corporation.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(q)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Retainer&#148;: The portion of a Director&#146;s annual cash
compensation that is payable on a current basis without regard to
the number of Board or committee meetings attended or committee
positions.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(r)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">&#147;Settlement Date&#148;: The date on which the three-year Deferral
Period ends, provided that the Director has not elected to transfer
his or her Deferred Shares to his or her Common Shares Account under
the Director Deferred Compensation Plan, as provided in Section
4.2(b).</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2"><B>ARTICLE III</B>
</FONT>

<P align="center"><FONT size="2"><B>ANNUAL DEFERRED SHARE AWARDS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Director shall receive, after the date of approval of the Plan by the
Corporation&#146;s shareholders in 2003 and each Plan Year thereafter, an annual
award of Deferred Shares. The number of Deferred Shares to be awarded shall be
equal to a number of Common Shares having an aggregate Fair Market Value on the
trading day before the date of the award equal to 200% of the Director&#146;s
Retainer, unless a lesser number of Deferred Shares is determined by the
Committee. To the extent that the application of any formula in computing the
number of
Deferred Shares to be granted would result in fractional shares of stock, the
number of shares shall be rounded down to the nearest whole share. Unless the
Committee from time to time determines another date for the annual award, such
annual award shall be made on the third
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<P align="left"><FONT size="2">business day following the second
quarter earnings release. At the time of making the annual award, the
Committee shall determine, in its sole discretion, whether the Director&#146;s
Account shall be distributed pursuant to Section&nbsp;5.3 in the form of Common
Shares (with fractional shares being rounded down to the nearest whole share),
cash, or a combination of Common Shares and cash.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE IV</B>
</FONT>

<P align="center"><FONT size="2"><B>DIRECTORS&#146; ACCOUNTS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.1 Grant of Deferred Shares</B>. All of a Director&#146;s Deferred Shares granted
pursuant to Article&nbsp;III above shall be credited on a bookkeeping basis to the
Director&#146;s Account. The number of Deferred Shares, which shall be credited to
a Director&#146;s Account effective as of the day such Deferred Shares were awarded,
shall be equal to the number of Deferred Shares granted pursuant to such award.
Separate sub-accounts may be established to reflect on a bookkeeping basis all
earnings, gains, or losses attributable to the Deferred Shares.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.2 Deferral Period</B>.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Minimum Three-Year Deferral. Each grant of Deferred Shares
shall be subject to a deferral period (a &#147;Deferral Period&#148;)
beginning on the date of crediting to the Director&#146;s Account and
ending on the third anniversary of the date of grant of such
Deferred Shares; provided, however, that the Deferral Period will
end prior to the third anniversary of the date of grant (a)&nbsp;pursuant
to a Director&#146;s Change of Control Election as provided in Section
4.6(a)(i); (b)&nbsp;if the Director dies or (c)&nbsp;the Director&#146;s service as
a Director is terminated (unless the termination follows a Change of
Control and the Director has elected in a Change of Control Election
to receive his or her Account pursuant to Section&nbsp;4.6(a)(iii)).</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Directors&#146; Option to Transfer the Deferred Shares.
Notwithstanding Section&nbsp;4.2(a), a Director may elect (prior to the
Plan Year in which the three-year Deferral Period will end, but in
all events at least six months prior to the date when the three-year
Deferral Period will end) to transfer the Deferred Shares into the
Director&#146;s Common Shares Account maintained under the Director
Deferred Compensation Plan at the end of the three-year Deferral
Period.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Deferral Election. Once a Director elects to transfer
Deferred Shares into his or her Common Shares Account maintained
under the Director Deferred Compensation Plan, this election will
continue to be effective from Plan Year to Plan Year and Deferred
Shares for which the three-year Deferral Period lapses following
such election will also be transferred to his or her Common Shares
Account. In order to be effective to revoke or modify this election
with respect to Deferred Shares otherwise granted in a particular
Plan Year, a revocation or
modification must be delivered to the Corporation prior to the
beginning of the Plan Year in which the minimum three-year Deferral
Period will end, but in all events at least six months prior to the
date when the three-year Deferral Period will end.</FONT></TD>
</TR>
</TABLE>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(d)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">No Rights During Deferral Period. During the Deferral
Period, the Director shall have no right to transfer any rights
under his or her Deferred Shares and shall have no other rights of
ownership therein.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.3 Dividend Equivalents</B>. A Director&#146;s Account will be credited, on the
date of the Corporation&#146;s dividend payment, with that number of additional
Deferred Shares (including fractional shares) equal to the amount of cash
dividends paid by the Corporation on the number of Deferred Shares in the
Director&#146;s Account divided by the Fair Market Value of one Common Share on that
date. Such dividend equivalents, which shall likewise be credited with
dividend equivalents, shall be deferred until the end of the Deferral Period
for the Deferred Shares with respect to which the dividend equivalents were
credited and, if the Director has so elected, such dividend equivalents shall
be transferred, along with the Deferred Shares, into the Director&#146;s Common
Shares Account under the Director Deferred Compensation Plan.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4 Death of a Director</B>. Notwithstanding anything to the contrary
contained in this Plan, in the event of the death of a Director, the three-year
Deferral Period will be deemed to have ended, and the Settlement Date will be
deemed to have occurred, on the date of the Director&#146;s death. The Director&#146;s
Account shall be paid, as soon as practicable following the Settlement Date, to
the Beneficiary or Beneficiaries designated on the Director&#146;s Beneficiary
Designation or, if no such designation is in effect or no Beneficiary is then
living, then to the Director&#146;s estate.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.5 Small Payments</B>. Notwithstanding the foregoing, if the value of a
Director&#146;s Account is less than $500, the amount of such Director&#146;s Account, at
the discretion of the Corporation, may immediately be paid to the Director in
cash or Common Shares.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.6 Acceleration</B>.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Notwithstanding anything to the contrary contained in this
Plan, upon the occurrence of a Change of Control, a Director shall
be entitled to receive from the Corporation the payment of his or
her Account in the manner selected as follows: Not later than the
later of 30 calendar days after the effective date of this Plan, or
30 calendar days after the date a person first becomes a Director, a
Director shall be entitled to make an election which will be
applicable in the event of a Change of Control (the &#147;Change of
Control Election&#148;). The Change of Control Election will be provide
the following payment alternatives to a Director in the event of a
Change of Control:</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(i)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="89%"><FONT size="2">upon the occurrence of a Change of Control, the
entire amount of the Director&#146;s Account will be immediately
paid in full, regardless of whether the Director continues as
a Director after the Change of Control;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(ii)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">upon and after the occurrence of a Change of
Control and in accordance with Section&nbsp;4.2(a), the entire
amount of the Director&#146;s Account will be immediately paid in
full if and when the Director&#146;s service as a Director is
terminated; or</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">4</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(iii)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="89%"><FONT size="2">upon the occurrence of a Change of Control, the
payment elections specified by the Director prior to the
Change of Control shall govern irrespective of the Change of
Control.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Notwithstanding anything to the contrary contained in this
Plan, in the event of an unforeseeable emergency, as defined in
section 1.457-2(h)(4) and (5)&nbsp;of the Income Tax Regulations, that is
caused by an event beyond the control of the Director or Beneficiary
and that would result in severe financial hardship to the individual
if acceleration were not permitted, the Corporation may in its sole
discretion accelerate the payment to the Director of the amount of
his or her Account, but only up to the amount necessary to meet the
emergency.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2"><B>ARTICLE V</B>
</FONT>

<P align="center"><FONT size="2"><B>DISTRIBUTION OF ACCOUNTS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.1 Settlement Date</B>. A Director, or in the event of such Director&#146;s
death, his or her Beneficiary, shall be entitled to a distribution of such
Director&#146;s Account, as provided in this Article&nbsp;V, following such Director&#146;s
Settlement Date.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.2 Amount to be Distributed</B>. The amount to which a Director, or in the
event of such Director&#146;s death, his or her Beneficiary, is entitled in
accordance with the following provisions of this Article&nbsp;V, shall be based on
the Director&#146;s balance in his or her Account determined as of the Settlement
Date.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.3 Form of Distribution</B>. As soon as practicable following the Settlement
Date, the Corporation shall distribute or cause to be distributed, to the
Director or, in the case of the death of the Director, his or her Beneficiary,
the balance of the Director&#146;s Account. Distribution of a Director&#146;s Account
shall be made in a lump sum in the form determined pursuant to Article&nbsp;III. If
distribution of an Account is made in the form of Common Shares, the
Corporation will provide procedures to facilitate the sale of such Common
Shares following distribution upon the request of the Director. If
distribution of an Account is made in cash, the amount distributed shall be
equal to the Fair Market Value on the Settlement Date.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.4 Fractional Shares</B>. The Corporation will not be required to issue any
fractional Common Share pursuant to this Plan.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.5 Transfer of Deferred Shares</B>. If a Director has elected to transfer
his or her Deferred Shares to his or her Common Shares Account under the
Director Deferred Compensation Plan following the three-year Deferral Period,
as provided in Section&nbsp;4.2(b) above, such Deferred Shares shall be governed by,
and distributed to the Director under, the terms of the Director Deferred
Compensation Plan.
</FONT>
<P align="center"><FONT size="2">5</FONT>
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<P align="center"><FONT size="2"><B>ARTICLE VI</B>
</FONT>

<P align="center"><FONT size="2"><B>BENEFICIARY DESIGNATION</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.1 Beneficiary Designation</B>. Each Director shall have the right, at any
time, to designate one or more persons or an entity as Beneficiary (both
primary as well as secondary) to whom benefits under this Plan shall be paid in
the event of the Director&#146;s death prior to distribution of the Director&#146;s
Account. Each Beneficiary Designation shall be in a written form prescribed by
the Corporation and shall be effective only when filed with the Corporation
during the Director&#146;s lifetime.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.2 Changing Beneficiary</B>. Any Beneficiary Designation may be changed by
the Director without the consent of the previously named Beneficiary by the
Director&#146;s filing of a new Beneficiary Designation with the Corporation. The
filing of a new Beneficiary Designation shall cancel all Beneficiary
Designations previously filed by the Director.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE VII</B>
</FONT>

<P align="center"><FONT size="2"><B>SHARES SUBJECT TO PLAN; ADJUSTMENTS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.1 Shares Subject to Plan</B>. Subject to adjustment as provided in this
Plan, the total number of Common Shares which may be delivered to Directors
upon distribution of their Accounts shall not in the aggregate exceed 500,000
Common Shares. Any Common Shares delivered to Directors by a trust that is
treated as a &#147;grantor trust&#148; within the meaning of Sections&nbsp;671-679 of the
Internal Revenue Code of 1986, as amended, shall be treated as delivered by the
Corporation under this Plan.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.2 Forfeitures; Etc.; Payment in Cash</B>. The number of Common Shares
available under Section&nbsp;7.1 shall be adjusted to account for shares credited to
the Accounts that are forfeited, surrendered or relinquished to the
Corporation, to provide for the payment of taxes or otherwise, paid or
distributed to Directors or their Beneficiaries in the form of cash, or
transferred to a Director&#146;s Common Shares Account pursuant to Section&nbsp;4.2(b).
Upon forfeiture, surrender or relinquishment, upon payment or distribution in
cash, or upon transfer to a Director&#146;s Common Shares Account, of Common Shares
credited to an Account, such Common Shares shall again be available for
delivery upon distribution of an Account under this Plan.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.3 Adjustments</B>.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Adjustments. The Committee may make or provide for such
adjustments in the (i)&nbsp;number of Common Shares covered by this Plan,
(ii)&nbsp;number of Deferred Shares granted or credited to Accounts
hereunder, and (ii)&nbsp;kind of shares covered thereby, as the Committee
in its sole discretion may in good faith determine to be equitably
required in order to prevent dilution or enlargement of the rights
of Directors that otherwise would result from (x)&nbsp;any stock
dividend, stock split, combination of shares, recapitalization or
other change in the capital structure of the Corporation, (y)&nbsp;any
merger, consolidation, spin-off, spin-out, split-off, split-up,
reorganization,</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">6</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">partial or complete liquidation of the Corporation or other
distribution of assets, issuance of rights or warrants to purchase
securities of the Corporation, or (z)&nbsp;any other corporate
transaction or event having an effect similar to any of the
foregoing. In the event of any such transaction or event, the
Committee may provide in substitution for any or all outstanding
grants or awards under this Plan such alternative consideration as
it may in good faith determine to be equitable under the
circumstances and may require in connection therewith the surrender
of all awards so replaced. Moreover, the Committee may on or after
the date of grant provide that the holder of the grant or award may
elect to receive an equivalent grant or award in respect of
securities of the surviving entity of any merger, consolidation or
other transaction or event having a similar effect, or the
Committee may provide that the holder will automatically be
entitled to receive such an equivalent grant or award.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Change of Control. Notwithstanding Section&nbsp;8.2 hereof, in
the event of a Change of Control as defined in accordance with
Section&nbsp;2.1(e) of the Plan, no amendment or modification of the Plan
may be made at any time on or after such Change of Control (1)&nbsp;to
reduce or modify a Director&#146;s Pre-Change of Control Account balance,
or (2)&nbsp;to reduce or modify the Accounts&#146; method of calculating
earnings, gains, and/or losses on the Director&#146;s Pre-Change of
Control Account balance. For purposes of this Section&nbsp;7.3(b), the
term &#147;Pre-Change of Control Account Balance&#148; shall mean, with regard
to any Director, the aggregate amount of the Director&#146;s Deferred
Shares with all earnings, gains, and losses thereon which are
credited to the Director&#146;s Account through the close of the calendar
year in which such Change of Control occurs.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2"><B>ARTICLE VIII</B>
</FONT>

<P align="center"><FONT size="2"><B>ADMINISTRATION, AMENDMENT AND TERMINATION</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.1 Administration</B>. The Plan shall be administered by the Corporation.
The Corporation shall have such powers as may be necessary to discharge its
duties hereunder. The Corporation may, from time to time, employ, appoint or
delegate to an agent or agents (who may be an officer or officers of the
Corporation) and delegate to them such administrative duties as it sees fit,
and may from time to time consult with legal counsel who may be counsel to the
Corporation. No agent appointed by the Corporation to perform administrative
duties hereunder shall be liable for any action taken or determination made in
good faith. All elections, notices and directions under the Plan by a Director
shall be made on such forms as the Corporation shall prescribe.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.2 Amendment and Termination</B>. The Committee may alter or amend this Plan
from time to time or may terminate it in its entirety; provided, however, that
no such action, except for an acceleration of benefits, shall, without the
consent of a Director, impair the rights in any Deferred Shares issued or to be
issued to such Director under the Plan; and further provided, that any
amendment that must be approved by the shareholders of the Corporation in order
to comply with applicable law or the rules of the principal exchange upon which
the Common Shares are traded or quoted shall not be
effective unless and until such approval has been obtained in compliance
with such applicable law or rules. Presentation of this Plan or any
</FONT>
<P align="center"><FONT size="2">7</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P align="left"><FONT size="2">amendment
hereof for shareholder approval shall not be construed to limit the
Corporation&#146;s authority to offer similar or dissimilar benefits through plans
or other arrangements that are not subject to shareholder approval unless
otherwise limited by applicable law or stock exchange rules.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE IX</B>
</FONT>

<P align="center"><FONT size="2"><B>FINANCING OF BENEFITS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.1 Financing of Benefits</B>. The Deferred Shares payable under the Plan to
a Director or, in the event of his or her death, to his or her Beneficiary,
shall be paid by the Corporation from its general assets, including treasury
shares. The right to receive payment of the Deferred Shares represents an
unfunded, unsecured obligation of the Corporation.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.2 Security for Benefits</B>. Notwithstanding the provisions of Section&nbsp;9.1,
nothing in this Plan shall preclude the Corporation from setting aside Common
Shares or funds in a so-called &#147;grantor trust&#148; pursuant to one or more trust
agreements between a trustee and the Corporation. However, no Director or
Beneficiary shall have any secured interest or claim in any assets or property
of the Corporation or any such trust and all Common Shares or funds contained
in such trust shall remain subject to the claims of the Corporation&#146;s general
creditors.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE X</B>
</FONT>

<P align="center"><FONT size="2"><B>GENERAL PROVISIONS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.1 Governing Law</B>. The provisions of this Plan shall be governed by and
construed in accordance with the laws of the State of Ohio.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2 Shareholder Approval</B>. Notwithstanding the foregoing provisions of
the Plan, no Common Shares shall be issued or transferred pursuant to the Plan
before the date of the approval of this Plan by the Corporation&#146;s shareholders.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.3 Miscellaneous</B>. Headings are given to the sections of this Plan
solely as a convenience to facilitate reference. Such headings, numbering and
paragraphing shall not in any case be deemed in any way material or relevant to
the construction of this Plan or any provisions thereof.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.4 No Right to Continue as Director</B>. Neither the Plan, nor the granting
of Deferred Shares nor any other action taken pursuant to the Plan, shall
constitute or be evidence of any agreement or understanding, express or
implied, that a Director has a right to continue as a Director for any period
of time, or at any particular rate of compensation.
</FONT>

<P align="center"><FONT size="2">8</FONT>




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