Exhibit 10.3
THE PNC FINANCIAL SERVICES GROUP, INC.
KEY EXECUTIVE EQUITY PROGRAM
AMENDED AND RESTATED
(GENERALLY EFFECTIVE AS OF JANUARY 1, 2002)
WHEREAS, The PNC Financial Services Group, Inc. (the "Corporation")
through its predecessor, PNC Bank Corp., previously adopted and presently
maintains the PNC Bank Corp. Supplemental Executive Life Insurance and Spouse's
Benefit Plan (the "Plan") originally effective as of January 1, 1987;
WHEREAS, the Corporation amended and restated the Plan in its entirety,
effective January 1, 1999, to incorporate all prior amendments into the Plan
document and make such other changes as deemed necessary or appropriate; and
WHEREAS, the Corporation desires to amend and restate the Plan in its
entirety, to be generally effective January 1, 2002, to embody changes in the
benefits provided under the Plan and to make such other changes as are deemed
necessary or appropriate; and
WHEREAS, Section 7 of the Plan authorizes the Corporation to amend the
Plan at any time.
NOW, THEREFORE, in consideration of the foregoing, the Plan is hereby
amended and restated in its entirety to read as follows:
SECTION 1
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DEFINITIONS
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1.1 "Annual Base Salary" means for the purpose of determining life
insurance benefits, the biweekly rate of pay that is in effect at the
time a Participant retires under the Pension Plan multiplied by 26.
1.2 "Beneficiary" means the person, persons, or entity designated as
Beneficiary by the Participant in the records maintained for this Plan
of the Prior Plans, or absent such designation, the Beneficiary
designated by the Participant under the Employer's group life insurance
plan, or, if no such designation exists, to the Participant's estate.
1.3 "Board" means the Board of Directors of the Corporation.
1.4 "Change in Control" has the meaning assigned such term in The PNC
Financial Services Group, Inc. Supplemental Executive Retirement Plan,
as amended from time to time.
1.5 "Committee" means the Personnel and Compensation Committee of the
Board.
1.6 "Corporation" means The PNC Financial Services Group, Inc. and any
successors thereto.
1.7 "Disability" means the Participant's eligibility to receive benefits
under the Employer's long-term disability plan.
1.8 "Employer" means the Corporation and any Subsidiary that has been
designated by the Plan Manager as an Employer hereunder.
1.9 "Executive Bonus Plan" means the incentive award plans designated by
the Plan Manager as participating hereunder.
1.10 "Participant" means all persons who were Participants in the Prior
Plans and, at the discretion of the Board, any other person employed by
the Corporation and its Subsidiaries who has been designated to
participate in the Plan.
1.11 "Pension Plan" means The PNC Financial Services Group, Inc. Pension
Plan, as amended from time to time.
1.12 "Plan" means this The PNC Financial Services Group, Inc. Key Executive
Equity Program.
1.13 "Plan Manager" means any individual designated by the Committee to
manage the operation of the Plan as herein provided or to whom the
Committee has duly delegated any of its duties and obligations
hereunder.
1.14 "Prior Plans" means the Executive Group Life Insurance Plan of
Pittsburgh National Bank, the Death Benefit Section of the Supplemental
Excess Retirement Plan of Provident National Bank, the Supplemental
Insurance Plan of Marine Bank and the Supplemental Insurance Plan of
Northeastern Bank.
1.15 "Retirement" means that the Participant has attained at least age 55
and completed five years of Vesting Service.
1.16 "Subsidiary" means any business entity the equity of which (directly or
indirectly) is owned 50% or more by the Corporation.
1.17 "Trust" means the grantor trust established by the Corporation to
assist in funding its obligations under the Plan.
1.18 "Vesting Service" has the meaning assigned to such term in the Pension
Plan.
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SECTION 2
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BENEFITS
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2.1 Pre-Retirement Life Insurance
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Except as provided in the following subparagraphs for Participants in
Prior Plans, the pre-retirement life insurance benefit shall be equal
to the amount of insurance elected by the Participant or assigned by
the Employer.
(a) Pittsburgh National Bank
------------------------
The benefit shall be an amount which is equal to the Annual
Base Salary multiple elected by the Participant under the
Executive Group Life Insurance Plan of Pittsburgh National
Bank.
(b) Provident National Bank
-----------------------
The benefit shall be an amount equal to three times the
Participant's Annual Base Salary rate in effect on January 30,
1985.
(c) Marine Bank
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The benefit shall be an amount equal to three times the
Participant's Annual Base Salary rate in effect on January 30,
1985.
2.2 Post-Retirement Life Insurance Benefit
--------------------------------------
Except as provided in the following subparagraphs for Participants in
the Prior Plans, the post-retirement life insurance benefit shall be
equal to an amount which is equal to the Participant's Annual Base
Salary rate in effect immediately preceding the Participant's
Retirement.
(a) Pittsburgh National Bank
------------------------
The benefit shall be an amount which is equal to the multiple
of the Annual Base Salary elected by the Participant under the
Executive Group Life Insurance Plan of Pittsburgh National
Bank.
(b) Marine Bank
-----------
The benefit shall be equal to three times the Annual Base
Salary rate in effect on January 30, 1985.
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(c) Northeastern Bank
-----------------
The benefit shall be equal to the face amount of the
individually owned policy less amounts due Northeastern Bank
to satisfy the insurance obligation.
2.3 Termination of Future Coverage For Designated Participants
-----------------------------------------------------------
Effective April 1, 2002, coverage under, and future participation in,
the Plan, will cease for certain Participants who are identified and
designated by the Corporation and who are given notice of the
termination of future coverage prior to April 1, 2002. The accumulated
cash surrender value, if any, on individual policies of insurance
covering such designated Participants shall be calculated as of April
1, 2002. The accumulated cash surrender value determined as of April 1,
2002 shall be the sole benefit payable to such designated Participants
in accordance with the terms of the Plan and policies, provided other
conditions for payment as set forth in the Plan and policies have been
satisfied by any such designated Participant
SECTION 3
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RIGHTS OF PARTICIPANTS
----------------------
No Beneficiary shall have any rights to any payment under this Plan except at
the death of the Participant, and in no event shall the interests of
Participants or Beneficiaries under this Plan be in any way subject to their
debts or other obligations and may not be voluntarily or involuntarily sold,
transferred or assigned without the express written consent of the Corporation.
SECTION 4
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TERMINATION OF EMPLOYMENT
-------------------------
If a Participant's employment with the Employer is terminated for any reason
other than Retirement, Disability or death, all benefits provided by this Plan
shall cease.
SECTION 5
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TRUST FUND
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No assets of the Corporation or any Employer shall be segregated or earmarked in
respect to any benefits, and all such benefits shall constitute unsecured
contractual obligations of the Employer. If the Corporation chooses to
contribute to the Trust to offset its oblation under this Plan, all assets or
property held by the Trust shall at all times remain subject to claims of the
general creditors of the Corporation or any Employer.
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SECTION 6
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CLAIMS PROCEDURE
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6.1 Initial Claim
-------------
Claims for benefits under the Plan shall be filed with the Plan
Manager. If any Participant or Beneficiary claims to be entitled to a
benefit under the Plan and the Plan Manager determines that such claim
should be denied in whole or in part, the Plan Manager shall notify
such person of its decision in writing. Such notification will be
written in a manner calculated to be understood by such person and will
contain (i) specific reasons for the denial, (ii) specific reference to
pertinent Plan provisions, (iii) a description of any additional
material or information necessary for such person to perfect such claim
and an explanation of why such material or information is necessary and
(iv) information as to the steps to be taken if the person wishes to
submit a request for review. Such notification will be given within 60
days after the claim is received by the Plan Manager. If such
notification is not given within such period, the claim will be
considered denied as of the last day of such period and such person may
request a review of his or her claim.
6.2 Review Procedure
----------------
Within 60 days after the date on which a Participant or Beneficiary
receives a written notice of a denied claim (or, if applicable, within
60 days after the date on which such denial is considered to have
occurred) such person (or his or her duly authorized representative)
may (i) file a written request with the Committee for a review of his
or her denied claim and of pertinent documents and (ii) submit written
issues and comments to the Committee. The Committee will notify such
person of its decision in writing. Such notification will be written in
a manner calculated to be understood by such person and will contain
specific reasons for the decision as well as specific references to
pertinent Plan provisions. The decision on review will be made within
60 days after the request for review is received by the Committee. If
the decision on review is not made within such period, the claim will
be considered denied.
6.3 Claims and Review Procedure Not Mandatory After a Change in Control
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After the occurrence of a Change in Control, the claims procedure and
review procedure provided for in this section 6 shall be provided for
the use and benefit of Participants who may choose to use such
procedures, but compliance with the provisions of this section 6 shall
not be mandatory for any Participant claiming benefits after a Change
in Control. It shall not be necessary for any Participant to exhaust
these procedures and remedies after a Change in Control prior to
bringing any legal claim or action, or asserting any other demand, for
payments or other benefits to which such Employee claims entitlement.
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SECTION 7
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AMENDMENT AND TERMINATION
-------------------------
The Plan may be amended or terminated by the Board at any time, and any
Subsidiary that has adopted the Plan may withdraw from further participation in
the Plan at any time; provided, however, that no such amendment, termination or
withdrawal shall reduce or adversely affect any amounts due hereunder to the
Beneficiary of a Participant.
After a Change in Control, the Plan may not be amended in any manner that
adversely affects the administration or payment of a Participant's benefits
hereunder (including but not limited to the timing and form or payment of
benefits hereunder) without the consent of the Participant nor may the
provisions of this section 7, section 8 or section 9 be amended after a Change
in Control with respect to a Participant without the written consent of the
Participant; provided, however, that the failure of a Participant to consent to
any such amendment shall not impair the ability of the Committee to amend the
Plan with respect to any other Participant who has consented to such amendment.
SECTION 8
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CERTAIN REQUIRED POLICY TRANSFERS
---------------------------------
If, after a Change in Control, either (i) the Plan is terminated and is not
replaced by a plan that provides substantially equivalent benefits to
Participants in this Plan or (ii) the Corporation ceases making premium payments
on one or more of the split dollar life insurance policies (the "Split Dollar
Policies") that cover Participants hereunder, then (x) in the case of a
termination described in the precedent clause (i), all of the Split Dollar
Policies shall be promptly transferred to the respective Participants on whose
lives the policies were issued, and (y) in the case of a cessation of premium
payments described in the preceding clause (ii), the Split Dollar Policies on
which premiums have ceased shall be promptly transferred to the respective
Participants on whose lives the policies were issued. Such transfers shall be
made without the payment of any consideration by the affected Participants.
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SECTION 9
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SUCCESSORS
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In addition to any obligations imposed by law upon any successor(s) to the
Corporation and the Employers, the Corporation and the Employers shall be
obligated to require any successor(s) (whether direct or indirect, by purchase,
merger, consolidation, operation of law, or otherwise) to all or substantially
all of the business and/or assets of the Corporation and the Employers to
expressly assume and agree to perform this Plan in the same manner and to the
same extent that the Corporation and the Employers would be required to perform
it if no such succession had taken place; in the event of such a succession,
references to "Corporation" and "Employers" herein shall thereafter be deemed to
include such successor(s).
SECTION 10
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ADMINISTRATION
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This Plan shall be administered by the Committee, and it shall have the sole
authority to resolve any questions which arise hereunder.
SECTION 11
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GOVERNING LAW
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This Plan shall be governed according to the laws of the Commonwealth of
Pennsylvania to the extent not preempted by federal law.
SECTION 12
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FUNDING OF BENEFITS
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In the sole discretion of the Corporation, the Corporation may establish a
grantor trust and make contributions thereto for the purpose of providing a
source of funds to pay benefits as they become due and payable hereunder;
provided, however, that no such trust shall result in a Participant being
required to include in gross income for federal income tax purposes any benefits
payable hereunder prior to the date of actual payment. Notwithstanding the
establishment of any such trust, a Participant's rights hereunder shall be
solely those of a general unsecured creditor.
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* * * *
Executed and adopted by the Director of Human Resources of The PNC Financial
Services Group, Inc. this 10th day of July, 2002
/s/ William E. Rosner
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William E. Rosner, Senior Vice President and
Director of Human Resources
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