FORM OF FIRST AMENDMENT TO THE CHANGE OF CONTROL AGREEMENT BY AND BETWEEN KEYCORP AND
Exhibit 10.54
WHEREAS, (“[Key Employee]”) and KeyCorp entered into a Change of Control Agreement
dated January 1, 2008 (“ [Key Employee] Agreement”), which provides that KeyCorp shall provide [Key
Employee] with a severance payment and certain other employee benefits in the event of (i) a Change
of Control (as that term is defined in the [Key Employee] Agreement), and (ii) [Key Employee]’s
termination of employment from KeyCorp in conjunction with such Change of Control (as more fully
outlined in the [Key Employee] Agreement), and
WHEREAS, on November 14, 2008, the United States Department of Treasury (“Treasury”) purchased
$2.5 billion of Senior Preferred Stock and warrants to purchase common stock under the Troubled
Assets Relief Program (the “TARP”) Capital Purchase Program of the Emergency Economic Stabilization
Act of 2008 (“EESA”), which specifically prohibits KeyCorp from providing any “golden parachutes”
to its “senior executive officers” during the “CPP Covered Period” (as those terms are defined in
accordance with the requirements of EESA and its applicable regulations), and from entering into
any golden parachute arrangements with any of its senior executive officers during the TARP Period
(as that term is defined under TARP), and
WHEREAS, KeyCorp is obligated at all times to remain compliant with the EESA’s prohibition of
providing a golden parachute to its senior executive officer(s) during the CPP Covered Period and
from entering into any new arrangements that provide a golden parachute to its senior executive
officer(s) during the TARP Period, and in response to the Treasury’s requirements to ensure such
continued compliance, has determined it advisable to clarify certain of its agreements to clearly
reflect the agreements compliance with the requirements of the EESA.
NOW THEREFORE, and pursuant to the requirements of the EESA, the [Key Employee] Agreement is
hereby amended as follows:
| 1. | Section 7.9 of the [Key Employee] Agreement shall be deleted in its entirety and the following Section 7.9 shall be substituted therefore: |
“7.9. Statutory Limitations including those Limitations Mandated under the
Emergency Economic Stabilization Act of 2008.
(a) If any payments otherwise payable to the Executive under this
Agreement are prohibited by any statute or regulation in effect at the time
the payments would otherwise be payable, including, without limitation, the
compensation prohibitions specifically mandated under Section 111(b) and/or
Section 111(c) of the Emergency Economic Stabilization Act of 2008 (“EESA”) as
may be applicable to Key as of the time of the Executive’s Termination Date,
or by any regulation issued by the Federal Deposit Insurance Corporation (the
“FDIC”) that limits executive change of control payments that can be made by
an FDIC insured institution or its holding company if the institution is
financially troubled (any such limiting statute or regulation being a
“Limiting Rule”):
(i) Unless such payment is specifically limited under the
provisions of EESA, Key will use its best efforts to obtain the consent
of the appropriate
governmental agency (whether the FDIC or any other agency) to the
payment by Key to the Executive of the maximum amount that is permitted
(up to the amounts that would be due to the Executive absent the
Limiting Rule); and
(ii) The Executive will be entitled to receive a lump sum payment
equal to the greater of either (i) the aggregate amount payable under
this Agreement (as limited by the Limiting Rule) or (ii) the aggregate
payments that would be due under applicable Key severance, separation
pay, and/or salary continuation plans that may be in effect at the time
of the Executive’s termination (as if the Executive were not a party to
this Agreement) up to the amounts that would be due to the Executive
under this Agreement or otherwise absent the Limiting Rule; provided
that the timing of any payments shall be made in the manner set forth
in Section 1.5 (i.e., the first day of the seventh month
following the Termination Date) and provided further, that the payment
may not exceed the amount specified in Section 1.1(b) or
Section 1.2(b), as the case may be, and the payment will otherwise
comply with all requirements under Section 409A.
(b) In the event of an extension or renewal of this Agreement pursuant to Section 6
hereof during the period of time commencing on the date that Key, if ever, becomes
subject to Section 111(c) of EESA due to the U.S. Treasury’s auction purchases and
ending on the last day of the “TARP authorities period” (as that term is defined in
accordance with Section 111(c) of EESA), then notwithstanding any other provisions
in this Agreement to the contrary, the terms of such extension or renewal shall
incorporate the compensation prohibitions specifically mandated under Section 111(c)
of EESA such that the payments due under such extension or renewal will be limited,
in a manner similar to that described in Section 16(a)(ii) to an amount that would
not violate Section 111(c) of EESA.”
| 2. | The amendment set forth in Paragraph 1 shall be effective as of January 1, 2009. | |
| 3. | Except as amended herein, the [Key Employee] Agreement shall remain in full force and effect. |
IN WITNESS WHEREOF, the parties have caused this First Amendment to the [Key Employee] Agreement to
be executed as of this day of December, 2008, to be effective as of January 1, 2009.
| KeyCorp | ||||||
By: |
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