Document:

EX-10.(F) EMPLOYEE STOCK OWNERSHIP BENEFIT PLAN

 

Exhibit (10)(f)

COMPASS BANCSHARES, INC.

EMPLOYEE STOCK OWNERSHIP BENEFIT RESTORATION PLAN

AS AMENDED AND RESTATED AS OF JANUARY 1, 2005

ARTICLE
I

Purpose and Adoption of Plan

     1.1 Adoption: Compass Bancshares, Inc. (the “Company”) adopted and established the
Compass Bancshares, Inc. Employee Stock Ownership Benefit Restoration Plan (the “Plan”) effective
as of May 1, 1997. The Plan is an unfunded deferred compensation arrangement whose benefits shall
be paid solely from the general assets of the Employing Companies. The Plan as amended and restated
is adopted as of January 1, 2005.

     1.2 Purpose: The Plan is designed to permit a select group of management or highly
compensated employees to elect to defer a portion of their Compensation until their death or
termination of employment from their Employing Company and to provide benefits equal to the
employer matching contributions that would have been made for such employees under the Compass
Bancshares, Inc. Employee Stock Ownership Plan (the “Compass Bancshares ESOP”), but for
limitations imposed by the federal income tax laws.

     1.3 Purpose of the 2005 Amendment and Restatement: The purpose of the amendment and
restatement of the Plan is to comply fully with Section 409A of the Code and the Treasury
regulations and other guidance with respect to Post-2004 Deferrals and to preserve the terms of the
Plan prior to this amendment and restatement with respect to the Pre-2005 Deferrals.

ARTICLE II

Definitions

     For purposes of the Plan the following terms shall have the following meanings unless a
different meaning is plainly required by the context:

     2.1 “Account” shall mean the account or accounts established and maintained by the Company for
bookkeeping purposes to reflect the interest of a Participant in the Plan resulting from a
Participant’s deferred Compensation, Employer Contributions made on behalf of a Participant, and
adjustments thereto to reflect deemed income, gains, losses, and other credits or charges less any
distributions. This Account shall be a bookkeeping entry only and shall be utilized solely as a
device for the measurement and determination of the amounts to be paid to a Participant under the
Plan. The Account shall be maintained so that a Participant’s Pre-2005 Deferrals and Post-2004
Deferrals are separately accounted for including deemed investment earnings and losses attributable
thereto.

     2.2 “Administrative Committee” shall mean the Compensation Committee of the Board of
Directors.

     2.3 “Beneficiary” shall mean any person, estate, trust, or organization entitled to receive
any payment under the Plan upon the death of a Participant. The Participant shall designate his
Beneficiary on a form provided by the Administrative Committee.

 

 

     2.4 “Board of Directors” shall mean the Board of Directors of the Company or the
Compensation Committee thereof.

     2.5 “Change in Control for Pre-2005 Deferrals” shall mean, for this purpose, (i) the
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
more than 50% of either the then outstanding shares of common stock of the Company (the
“Outstanding Common Stock”) or the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Voting Securities”), or (ii) consummation by the Company of a reorganization, merger
or consolidation, or sale or other disposition of all or substantially all of the assets of the
Company, unless, following such acquisition of beneficial ownership or transaction, (a) more than
60% of the then outstanding shares of common stock of the Person resulting from such
reorganization, merger or consolidation, or (b) more than 60% of the then outstanding shares of
common stock of the Person acquiring such beneficial ownership or assets, and the combined voting
power of the then Outstanding Voting Securities of such Person entitled to vote generally in the
election of directors of such Person, is then beneficially owned, directly or indirectly, by all
or substantially all of the individuals and entities who were the beneficial owners,
respectively, of Outstanding Common Stock and Outstanding Voting Securities immediately prior to
such acquisition or transaction, in substantially the same proportions as their ownership of
Outstanding Common Stock and Outstanding Voting Securities prior to such event.

     “Change in Control for Post-2004 Deferrals” shall mean a change in the ownership of the
Company, a change in effective control of the Company or a change in the ownership of a .
substantial portion of the assets of the Company as provided under Code Section 409A and any
Internal Revenue Service guidance, including any Treasury regulations issued in connection with
Code Section 409A.

     2.6 “Closing Price” shall mean the closing price on any trading day of a share of the Common
Stock based on consolidated trading as defined by the Consolidated Tape Association and reported
as part of the consolidated trading prices of stock exchange on which the Common Stock is traded.

     2.7 “Code” shall mean the Internal Revenue Code of 1986, as amended, including any successor
statute.

     2.8 “Common Stock” shall mean the common stock of the Company.

     2.9 “Company” shall mean Compass Bancshares, Inc.

     2.10 “Compensation” shall mean an Employee’s base wages or salary paid by any Employing
Company to an Employee, including amounts contributed by an Employing Company to the Compass
Bancshares ESOP as salary deferral contributions pursuant to the Employee’s exercise of his
deferral option made in accordance with Section 401(k) of the Code, amounts contributed by an
Employing Company to the Compass Bancshares, Inc. Flexible Benefits Plan (“Superflex”) on behalf
of the Employee pursuant to his salary reduction election

 

 

under such plan and in accordance with Section 125 of the Code, amounts contributed to a qualified
parking plan under Section 132(f) of the Code, and any amounts contributed by the Employee on a
pre-tax basis to any other qualified or non-qualified deferred compensation plans of the Company;
but disregarding overtime, bonuses, other forms of incentive pay paid in cash and such amounts
which are reimbursements to an Employee paid by any Employing Company including, but not limited
to, reimbursement for such items as moving expenses, automobile expenses, tax preparation expenses,
travel and entertainment expenses, and health and life insurance premiums. Notwithstanding the
foregoing and solely in the case of Participants specified on Exhibit “A” hereto
the term “Compensation” shall also include bonuses and other forms of incentive pay paid in cash.

     2.11 “Deferral Election” shall mean the Participant’s written election to defer a portion of
his Compensation pursuant to Article VI.

     2.12 “Effective Date” shall mean the first day of the first payroll period the Administrative
Committee shall permit a Participant to defer Compensation under the Plan but in no event later
than thirty (30) days following the date the Employee is notified by the Administrative Committee,
or its designee, that the Employee is eligible to participate in the Plan for Compensation earned
after the date a Deferral Election form is filed with the Company.

     2.13 “Employee” shall mean any person who is currently employed by an Employing Company.

     2.14 “Employer Contributions” shall mean the amounts credited a Participant’s Account under
Article VII of the Plan.

     2.15 “Employer Matching Contributions” shall have the meaning ascribed to that term in the
Compass Bancshares ESOP.

     2.16 “Employing Company” shall mean the Company or any affiliate or subsidiary (direct or
indirect) of the Company.

     2.17 “Enrollment Date” shall mean the Effective Date, January 1 of each Plan Year and such
other dates as may be determined from time to time by the Administrative Committee.

     2.18 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

     2.19 “Investment Request” shall mean the Participant’s written request to have his Account
invested pursuant to Sections 8.1 or 8.2 and which is accepted by the Administrative Committee.

     2.20 “Key Employee” shall mean, for purposes of this Plan and in accordance with Section 409A
of the Code, a key employee as defined in Section 416(i) of the Code, without regard to paragraph
(5) thereof.

     2.21 “Participant” shall mean an Employee or former Employee of an Employing Company who is
eligible to receive benefits under the Plan.

 

 

     2.22 “Performance-Based Compensation” shall mean Compensation that meets the requirements of
performance-based compensation specified in Section 409A(a)(4)(B)(iii) of the Code and regulations
and other guidance promulgated thereunder. Performance-Based Compensation shall be designated as
such by the Company and must relate to services performed by the Participant during a designated
incentive period of at least twelve (12) months and must be variable and contingent on the
satisfaction of pre-established organizational or individual performance criteria and not readily
ascertainable at the time.

     2.23 “Plan” shall mean Compass Bancshares, Inc. Employee Stock Ownership Benefit Restoration
Plan, as amended from time to time.

     2.24 “Plan Year” shall mean the twelve (12) month period commencing January 1st and ending on
the last day of December.

     2.25 “Post-2004 Deferrals” shall mean the portion of the Participant’s Account other than
Pre-2005 Deferrals.

     2.26 “Pre-2005 Deferrals” shall mean the portion of the Participant’s Account determined as of
the end of December 31, 2004, the right to which was earned and vested as of the end of December
31, 2004, plus deemed investment earnings and losses attributable to such amounts.

     2.27 “Separation from Service” shall mean a Participant’s separation from service as an
Employee with the Company for purposes of Section 409A of the Code other than for death or leave of
absence. A transfer of employment within or among the Company and any member of a controlled group,
as provided in Code Section 409A(d)(6) shall not be deemed a Separation from Service.

     2.28 “Unforeseeable Emergency” for Pre-2005 Deferrals shall mean an event beyond the control
of the Participant and that would result in severe financial hardship if early withdrawal was not
permitted.

     “Unforeseeable Emergency” for Post-2004 Deferrals shall mean (a) a severe financial hardship
to the Participant resulting from an illness or accident of the Participant, the Participant’s
spouse or a dependent (as defined in Code Section 152(a)) of the Participant, (b) loss of the
Participant’s property due to casualty, or (c) other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the Participant, each as
determined to exist by the Administrative Committee, in its sole and absolute discretion as defined
by Section 409A of the Code and the Treasury regulations and other guidance thereunder.

     The words in the masculine gender shall include the feminine and neuter genders and words in
the singular shall include the plural and words in the plural shall include the singular.

 

 

ARTICLE III

Administration of Plan

     3.1 The Administrative Committee shall be responsible for the general administration of the
Plan. The Administrative Committee may select a chairman and may select a secretary (who may, but
need not, be a member of the Administrative Committee) to keep its records or to assist it in the
discharge of its duties. A majority of the members of the Administrative Committee shall
constitute a quorum for the transaction of business at any meeting. Any determination or action of
the Administrative Committee may be made or taken by a majority of the members present at any
meeting thereof, or without a meeting by resolution or written memorandum concurred in by a
majority of the members.

     3.2 No member of the Administrative Committee shall receive any compensation from the Plan
for his service.

     3.3 The Administrative Committee shall administer the Plan in accordance with its terms and
shall have all powers necessary to carry out the provisions of the Plan more particularly set
forth herein. It shall have the full discretion to interpret the Plan and determine all questions
arising in the administration, interpretation and application of the Plan. Any such determination
by it shall be conclusive and binding on all persons. It may adopt such regulations as it deems
desirable for the conduct of its affairs. It may appoint such accountants, counsel, actuaries,
specialists and other persons as it deems necessary or desirable in connection with the
administration of this Plan, and shall be the agent for the service of process.

     3.4 The Administrative Committee shall be reimbursed by the Company for all reasonable
expenses incurred by it in the fulfillment of its duties. Such expenses shall include any expenses
incident to its functioning, including, but not limited to, fees of accountants, counsel,
actuaries, and other specialists, and other costs of administering the Plan.

     3.5 (a) The Administrative Committee is responsible for the daily administration of the Plan.
It may appoint other persons or entities to perform any of its fiduciary and/or administrative
functions. The Administrative Committee and any such appointee may employ advisors and other
persons necessary or convenient to help it carry out its duties, including its fiduciary duties.
The Administrative Committee shall have the right to review the work and performance of each such
appointee as it deems necessary or appropriate, and shall have the right to remove any such
appointee from his position. Any person, group of persons or entity may serve in more than one
fiduciary capacity.

          (b) The Administrative Committee shall maintain accurate and detailed records and accounts of
Participants and of their rights under the Plan and of all receipts, disbursements, transfers and
other transactions concerning the Plan. Such accounts, books and records relating thereto shall be
open at all reasonable times to inspection and audit by the Board of Directors and by persons
designated thereby.

          (c) The Administrative Committee shall take all steps necessary to ensure that the Plan
complies with the law at all times. These steps shall include such items as the preparation and
filing of all documents and forms required by any governmental agency;

 

 

maintaining of adequate Participants’ records; withholding of applicable taxes and filing of all
required tax forms and returns; recording and transmission of all notices required to be given to
Participants and their Beneficiaries; the receipt and dissemination, if required, of all reports
and information received from an Employing Company; and doing such other acts necessary for the
proper administration of the Plan. The Administrative Committee shall keep a record of all of its
proceedings and acts, and shall keep all such books of account, records and other data as may be
necessary for proper administration of the Plan. The Administrative Committee shall notify the
Company upon its request of any action taken by it, and when required, shall notify any other
interested person or persons.

     3.6 The procedures for filing claims for payments under the Plan are described below:

          (a) Submission of Claim. It is the intent of the Company to make payments under the Plan
without the Participant having to complete or submit any claim forms. However, any Participant or
Beneficiary or a duly authorized representative thereof (“claimant”) who believes he or she is
entitled to a payment under the Plan may submit a claim for payment to the Administrative
Committee. Any claim for payments under the Plan must be made by the claimant in writing and state
the claimant’s name and nature of benefits payable under the Plan. The claimant’s claim shall be
deemed to be filed when delivered to a member of the Administrative Committee which shall make all
determinations as to the right of any person to benefits hereunder.

          (b) Notice of Denial of Claim. If the claim is wholly or partially denied, the Administrative
Committee shall provide written or electronic notice thereof to the claimant within a reasonable
period of time, but not later than ninety (90) days after receipt of the claim. An extension of
time for processing the claim for benefits is allowable if special circumstances require an
extension, but such an extension shall not extend beyond one hundred eighty (180) days from the
date the claim for benefits is received by the Administrative Committee. Written notice of any
extension of time shall be delivered or mailed within ninety (90) days after receipt of the claim
and shall include an explanation of the special circumstances requiring the extension and the date
by which the Administrative Committee expects to render the final decision.

          The notice of adverse benefit determination shall (i) specify the reason for the denial; (ii)
reference the provisions of this Plan on which the denial is based; (iii) describe the additional
material or information, if any, necessary for the claimant to receive benefits and explain why
such information is necessary; (iv) indicate the steps to be taken by the claimant if a review of
the denial is desired, including the time limits applicable thereto; and (v) contain a statement of
the claimant’s right to bring a civil action under ERISA in the event of an adverse benefit
determination on review. If notice of the adverse benefit determination is not furnished in
accordance with the preceding provisions of this Section, the claim shall be deemed denied and the
claimant shall be permitted to exercise his right to review as set forth below.

          (c) Review of Denied Claim. If a claim is denied and a review is desired, the claimant shall
notify the Administrative Committee in writing within sixty (60) days after receipt of written
notice of a denial of a claim. In requesting a review, the claimant may submit any written
comments, documents, records, and other information relating to the claim, the claimant feels are
appropriate. The claimant shall, upon request and free of charge, be provided

 

 

reasonable access to, and copies of, all documents, records and other information
“relevant” to the claimant’s claim for benefits. The Administrative Committee shall
review the claim taking into account all comments, documents, records and other information
submitted by the claimant, without regard to whether such information was submitted or considered
in the initial benefit determination.

          (d) Decision on Review. The Administrative Committee shall provide the claimant with written
notice of its decision on review within a reasonable period of time, but not later than sixty (60)
days after receipt of a request for review. An extension of time for making the decision on the
request for review is allowable if special circumstances shall occur, but such an extension shall
not extend beyond one hundred twenty (120) days from the date the request for a review is received
by the Administrative Committee. Written notice of the extension of time shall be delivered or
mailed within sixty (60) days after receipt of the request for review, indicating the special
circumstances requiring an extension and the date by which the Administrative Committee expects to
render a determination.

          In the event of an adverse benefit determination on review, the notice thereof shall (i)
specify the reason or reasons for the adverse benefit determination; (ii) reference the specific
provisions of this Plan on which the benefit determination is based; (iii) contain a statement that
the claimant is entitled to receive, upon request and free of charge, reasonable access to, and
copies of all documents, records and other information “relevant” to the claimant’s claim for
benefits; and (iv) inform the claimant of the right to bring a civil action under the provisions of
ERISA.

          For purposes hereof, any document, record and item of information shall be considered
“relevant” to the claimant’s claim if it (i) was relied upon in making the benefit determination,
(ii) was submitted, considered, or generated in the course of making the benefit determination,
whether or not actually relied upon in making the determination; or (iii) demonstrates compliance
with the administrative processes and safeguards of this claims procedure.

          (e) Preservation of Remedies. After exhaustion of the claims procedure as provided herein,
nothing shall prevent the claimant from pursuing any other legal or equitable remedy otherwise
available, including the right to bring a civil action under Section 502(a) of ERISA, if
applicable. Notwithstanding the foregoing, no legal action may be commenced or maintained against
the Company, any Employing Company or the Administrative Committee more than ninety (90) days after
the claimant has exhausted the administrative remedies set forth in this Section 3.6.

ARTICLE IV

Arbitration

     4.1 Any controversy relating to a claim arising out of or relating to this Plan, including,
but not limited to claims for benefits due under this Plan, claims for the enforcement of ERISA,
claims based on the federal common law of ERISA, claims alleging discriminatory discharge under
ERISA, claims based on state law, and assigned claims relating to this Plan shall be settled by
arbitration in accordance with the then current Employee Benefit Claims

 

 

Arbitration Rules of the American Arbitration Association (AAA) or any successor rules which are
hereby incorporated into the Plan by this reference; provided, however, both the Company and the
Participant shall have the right at any time to seek equitable relief in court without submitting
the issue to arbitration.

     4.2 Neither the Participant (or his beneficiary) nor the Plan may be required to submit any
such claim or controversy to arbitration until the Participant (or his beneficiary) has first
exhausted the Plan’s internal appeals procedures set forth in Section 3.6. However, if the
Participant (or his beneficiary) and the Company agree to do so, they may submit the claim or
controversy to arbitration at any point during the processing of the dispute.

     4.3 The Company will bear all costs of arbitration, except that the Participant will pay the
filing fee set by the AAA and the arbitrator shall have the power to apportion among the parties
expenses such as pre-hearing discovery, travel, experts’ fees, accountants’ fees, and attorney’s
fees and except as otherwise provided herein. The decision of the arbitrator shall be final and
binding on all parties, and judgment on the arbitrator’s award may be entered in any court of
competent jurisdiction.

     4.4 If there is a dispute as to whether a claim is subject to arbitration, the arbitrator
shall decide that issue. The claim must be filed with the AAA within the applicable statute of
limitations period. The arbitrator shall issue a written determination sufficient to ensure
consistent application of the Plan in the future.

     4.5 Any arbitration will be conducted in accordance with the following provisions, not
withstanding the Rules of the AAA. The arbitration will take place in a neutral location within the
metropolitan area in which the Participant was or is employed by an Employing Company. The
arbitrator will be selected from the attorney members of the Commercial Panel of the AAA who reside
in the metropolitan area where the arbitration will take place and have at least 5 years of ERISA
experience. If an arbitrator meeting such qualifications is unavailable, the arbitrator will be
selected from the attorney members of the National Panel of Employee Benefit Claims Arbitrators
established by the AAA.

     4.6 In any such arbitration, each party shall be entitled to discovery of any other party as
provided by the Federal Rules of Civil Procedure then in effect; provided, however, that discovery
shall be limited to a period of 60 days. The arbitrator may make orders and issue subpoenas as
necessary. The arbitrator shall apply ERISA, as construed in the federal Circuit in which the
arbitration takes place, to the interpretation of the Plan and the Federal Arbitration Act to the
interpretation of this arbitration provision. To the extent that state law is not preempted by
ERISA, then the law of Alabama applies.

     4.7 Any party has the right to arrange for a stenographic record to be made of the
proceedings, which stenographic record shall be the official record. Either party may make an offer
of judgment at any time in accordance with the procedures of Rule 68 (or its successor) of the
Federal Rules of Civil Procedure. The existence of such an offer is not admissible in any
proceeding. If the monetary award of the arbitrator to a party is less than any monetary offer to
that party plus 20 percent of such offer, then that party receiving such award shall pay the other
party his reasonable attorneys’ fees, experts’ fees, accountants’ fees and other costs incurred
with

 

 

respect to the arbitration following the date of the offer of judgment. Such amount is to be
deducted from the award prior to payment. Arbitration is the exclusive remedy for any dispute
between the parties other than equitable relief which either party may seek through the court
system.

ARTICLE V

Eligibility

     5.1 Any Employee who is a member of a select group of management or highly compensated
Employees, is eligible to participate in the Compass Bancshares ESOP, and is selected for
participation in the Plan by the Administrative Committee in its sole discretion, shall be eligible
to participate in the Plan. An Employee who is selected to participate shall be designated on
Exhibit B hereto. An Employee shall become a Participant by agreeing to be bound by the terms of
this Plan, including the non-competition provisions of Article X.

     5.2 Notwithstanding the above, the Administrative Committee shall be authorized to modify the
eligibility requirements and rescind the eligibility of any Participant if necessary to insure that
the Plan is maintained primarily for the purpose of providing deferred compensation to a select
group of management or highly compensated employees under ERISA.

     5.3 If the Administrative Committee determines that a Participant is no longer eligible to
participate in the Plan, no additional Employer Contributions shall be made on such Participant’s
behalf, the Participant’s Deferral Election shall terminate and he shall make no more contributions
under the Plan until it is again determined he is eligible to participate. The Account of such a
Participant shall continue to be adjusted by the provisions of Article VIII until the Account is
distributed under Article IX.

ARTICLE VI

Election for Deferral of Payment

     6.1 A Participant may elect to defer payment of a portion of his Compensation, in excess of
the limitation set forth in Section 401(a)(17) of the Code with respect to the Plan Year, otherwise
payable to him during each payroll period after his Effective Date for services to be rendered
after the Effective Date by any percentage (whole or fractional) of his Compensation, such amount
to be credited to his Account under the Plan.

     6.2 An Account shall be established for each Participant by the Company as of the effective
date of such Participant’s initial Deferral Election.

     6.3 The Deferral Election shall be made in writing on a form prescribed by the Company and
said Deferral Election shall state:

          (a) That the Participant wishes to make an election to defer the receipt of a portion of his
Compensation, and

          (b) The percentage of such Compensation to be deferred.

 

 

     6.4 The initial Deferral Election of a new Participant shall be made by written notice signed
by the Participant and delivered to the Participant’s Employing Company not later than thirty (30)
days after the Employee first becomes eligible to participate in the Plan; provided however, such
initial Deferral Election shall not apply to Compensation earned prior to the date such election
form is filed with the Participant’s Employing Company. Any subsequent Deferral Elections shall be
made by written notice signed by the Participant and delivered to the Participant’s Employing
Company not later than the last day of the month prior to the next succeeding Plan Year and shall
be effective on the first day of such succeeding Plan Year with respect to Compensation to be
earned in such subsequent Plan Year; provided however, in the case of Performance-Based
Compensation and subject to the discretion of the Administrative Committee (which may vary for each
Participant), an election form may be submitted to the Company no later than six (6) months before
the end of the performance period if the Administrative Committee allows for a separate election
with respect to Performance-Based Compensation with respect to that Participant. A Deferral
Election with respect to the deferral of future Compensation shall be an irrevocable election for’
each Plan Year unless otherwise modified or revoked during the Plan Year as provided in Section 6.5
herein. The termination of participation in the Plan shall not affect amounts (and the deemed
investment earnings and losses thereon) previously deferred by a Participant under the Plan.

     At the time of the initial Deferral Election, a Participant shall elect the form of payment to
be received upon his death or termination from employment or whether to be paid upon a Change in
Control as provided in Section 9.5, such form to be either (a) a lump sum, or (b) monthly,
quarterly, or annual installments over a period not to exceed fifteen (15) years. The initial
Deferral Election with respect to the form of payment shall govern the distribution of such
Participant’s Pre-2005 Deferrals and Post-2004 Deferrals unless a Participant make a new election
with respect to Pre-2005 Deferrals and/or Post-2004 Deferrals in accordance with the requirements
set forth in Section 6.6. If a Participant fails to specify a form of payment, his Account shall be
distributed in a lump sum.

     6.5 Notwithstanding the provisions of Section 6.4 of the Plan, the Administrative Committee,
in its sole discretion upon written application by a Participant, may authorize the suspension of a
Participant’s Deferral Election in the event of an Unforeseeable Emergency upon receiving a written
request to the Administrative Committee accompanied by evidence to demonstrate that the
circumstances qualify as an Unforeseeable Emergency. Any suspension authorized by the
Administrative Committee shall become effective as of the first payroll period beginning thirty
(30) days after receipt by the Company of the suspension
application, or as soon as
practicable after the receipt of such application. Such suspension shall be effective for the
remainder of the Plan Year.

     6.6 With the approval of the Administrative Committee, a Participant may amend a prior
Deferral Election on a form provided by the Administrative Committee in order to change the form of
the distribution of his Account attributable to Pre-2005 Deferrals. Any such amendment to a prior
Deferral Election pertaining to such Pre-2005 Deferrals shall be contingent upon the Participant’s
completion of a one-year term of employment after the date the Participant executes a new payment
election form, except in the event of the Participant’s death or total and permanent disability as
determined by the Social Security Administration or by the Company’s insurance carrier under its
group long term disability benefit plan.

 

 

     With respect to Post-2004 Deferrals, a change in the form of payment shall be given effect by
the Administrative Committee only if the election to change the form of payment (i) does not take
effect until at least twelve (12) months after the date on which the Deferral Election form is
filed with the Administrative Committee and (ii) the first payment with respect to such change in
election is made is deferred for a period of not less than five (5) years after the date such
payment would otherwise have been made except in the event of death or Unforeseeable Emergency.

     Notwithstanding the foregoing, with respect to Post-2004 Deferrals, a Participant may elect to
make a new election with respect to such previously deferred amounts by filing a new election form
with the Administrative Committee on or before December 31, 2007; provided that any such election
applies only to amounts that would not otherwise be payable in the year such new election is made
and does not cause an amount to be paid in the year such new election is made that would not
otherwise be payable in such year.

ARTICLE VII

Employer Contributions

     7.1 Subject to compliance with the provisions of Article X, the Account of each Participant
shall be credited as follows:

          (a) At the time of each deferral of Compensation hereunder, the amount per Participant
resulting from the application of the percentage of the Employer Matching Contribution made as of
each payroll period (and at the time of a bonus or other incentive payment in the case of
Participants listed on Exhibit “A”) to the ratable portion of the Participant’s
Compensation, in excess of the limitation set forth in Section 401(a)(17) of the Code for the Plan
Year.

          (b) At the time any additional Employer Matching Contribution is made by the Company for a
Plan Year to the Compass Bancshares ESOP, an amount per Participant resulting from the application
of the additional percentage of Compensation contributed as an additional Employer Matching
Contribution to the portion of the Participant’s Compensation deferred hereunder for the Plan Year
provided the Participant qualifies for an additional Employer Matching Contribution for the Plan
Year as a participant in the Compass Bancshares ESOP.

     7.2 The amount determined under Section 7.1 above shall be calculated without regard to any
limitations under Section 415 of the Code, Section 402(g) of the Code, Section 401(a)(17) of the
Code, or other federal tax law provisions that would limit salary deferral contributions, employee
compensation amounts, and/or employer matching and discretionary contributions under the Compass
Bancshares ESOP.

     7.3 The amount credited under Section 7.1 shall be subject to vesting under the same vesting
schedule and subject to the same terms and conditions applicable to the vesting of Employer
Matching Contributions under the ESOP.

ARTICLE VIII

Investment of Accounts

 

 

     8.1 The Account of each Participant attributable to the Participant’s Deferral Election shall
be credited as of the last day of each calendar quarter with investment earnings and losses based
upon the assets in the Account or on such more frequent basis as shall be authorized by the
Administrative Committee. Upon becoming eligible to participate and before the beginning of each
Plan Year, Participants may request how their Account balances are deemed to be invested. The
investment preference shall be made in writing on a form prescribed by the Company and shall be
delivered to the Company prior to such Enrollment Date and shall be effective as of such Enrollment
Date. The Investment Request made in accordance with this Article VIII shall continue from Plan
Year to Plan Year unless the Participant changes the Investment Request by submitting a written
request to the Company on a form prescribed by the Company prior to the next succeeding Plan Year.
Any such change shall become effective as of the first day of the Plan Year next following the Plan
Year in which such request is submitted to the Company. The Administrative Committee shall be
authorized to permit more frequent changes in investment preferences to be effective on such dates
as it shall specify. The Administrative Committee shall consider the Investment Request but is not
obligated to follow such requests.

     8.2 Participants shall be permitted to request from among such investment options as the
Administrative Committee may permit and can allocate their deferred Compensation among such options
for the Plan Year. Dividends, interest and other distributions received with respect to any
Investment Request shall be deemed to be reinvested in the same investment option.

     8.3 The Account of each Participant attributable to Employer Contributions pursuant to Article
VII shall be deemed to be invested in Common Stock and shall be credited with dividends, and such
dividends shall be deemed to be reinvested in such Common Stock in the same manner and with the
same frequency as employer matching contributions are so invested in the Compass Bancshares ESOP.
No Participant shall be entitled to any voting rights with respect to any shares of Common Stock
credited to his Account.

     8.4 At the end of each Plan Year (or on a more frequent basis as determined by the
Administrative Committee), a report shall be issued to each Participant who has an Account and said
report will set forth the value in such Account.

     8.5 The Accounts under the Plan shall be hypothetical in nature and shall be maintained for
bookkeeping purposes only. Neither the Plan nor any Account shall be required to hold any actual
fund or asset.

ARTICLE IX

Distribution of Accounts

     9.1 Subject to compliance with the provisions of Article X and the provisions of Article VI,
when a Participant terminates his employment with an Employing Company, said Participant shall be
entitled to receive the vested balance of his Pre-2005 Deferrals and Post-2004 Deferrals in cash in
a lump sum or in equal monthly, quarterly or annual installments not to exceed a fifteen (15) year
period as specified on the Participant’s Deferral Election form applicable to such amounts. The
portion of a Participant’s Account which is not fully vested on the date of his termination of
employment with an Employing Company shall be forfeited and the Participant shall have no further
rights with respect thereto.

 

 

     In the event the value of a Participant’s Account at the time distribution is to commence is
$10,000 or less, the Account shall be distributed in a lump sum notwithstanding a Participant’s
election to have his Account distributed in installments under the Plan. All payments due under
this Section 9.1 shall be made or commence as soon as reasonably feasible following a Participant’s
termination of employment. Any amounts deemed to be invested in a Common Stock fund shall be equal
to the market value of any shares of Common Stock reported in a Participant’s Account, based on the
Closing Price of such Common Stock during the day on which the distribution is processed
immediately preceding the date of any lump sum or installment distribution. No portion of a
Participant’s Account shall be distributed in Common Stock. The portion of an Account attributable
to investments other than Common Stock shall be valued on the date a distribution is processed. The
transfer by a Participant between Employing Companies shall not be deemed to be a termination of
employment with an Employing Company.

     Notwithstanding the foregoing, distributions of Post-2004 Deferrals to a Key Employee as a
result of Separation from Service, whether the distribution is made in the form of a Imp sum or
installments, shall not be made or the payments may not begin before the date which is six (6)
months following the date of the Separation from Service, or, if earlier, the date of death of the
Key Employee.

     9.2 Subject to compliance with the provisions of Article X and Article VI, upon the death of a
Participant prior to the payment of his Account, the balance of his Account shall be paid to the
Participant’s Beneficiary in a Imp sum or in equal monthly, quarterly or annual installments not to
exceed a fifteen (15) year period as specified on the Participant’s Deferral Election form with
such payment to be made or payments to commence in the case of installment distributions within
sixty (60) days following the close of the calendar quarter in which the Administrative Committee
is provided evidence of the Participant’s death (or as soon as reasonably practicable thereafter);
provided, however, if the value of a Participant’s Account at the time an installment distribution
is to commence is $10,000 or less, the Account shall be distributed
in a lump sum. In the
event a Beneficiary designation is not on file or the designated Beneficiary is deceased or cannot
be located, payment will be made to the estate of the Participant. If the Participant fails to
specify a form of payment, his vested Account balance shall be distributed in a Imp sum. The market
value of any shares of Common Stock credited to a Participant’s Account shall be based on the
Closing Price of such Common Stock during the day on which the distribution is processed
immediately preceding the date of any lump sum or installment distribution. No portion of a
Participant’s Account shall be distributed in Common Stock. The portion of an Account attributable
to investments other than Common Stock shall be valued on the date a distribution is processed. In
the event of the death of a Participant subsequent to the commencement of installment payments but
prior to the completion of the payments, the installments shall continue and shall be paid to the
Beneficiary as if the Participant had not died.

     9.3 The Beneficiary designation may be changed by the Participant or former Participant at any
time without the consent of the prior Beneficiary.

     9.4 A Participant may request a distribution due to an Unforeseeable Emergency by submitting a
written request to the Administrative Committee accompanied by evidence to

 

 

demonstrate that the circumstances being experienced qualify as an Unforeseeable Emergency. The
Administrative Committee shall have the authority to require such evidence as it deems necessary
to determine if a distribution is warranted. If an application for a hardship distribution due to
an Unforeseeable Emergency is approved, the distribution is limited to an amount sufficient to
meet the emergency. The allowed distribution shall be payable in a method determined by the
-Administrative Committee as soon as possible after approval of such distribution.

     9.5 Upon a Change in Control, and subject to compliance with the provisions of Article X, a
Participant shall be entitled to receive the balance of his Account in a lump sum within sixty
(60) days following the close of the calendar quarter in which such event occurs if the
Participant shall have previously elected on his election form to be paid in a lump sum in the
event of a Change in Control.

     9.6 Notwithstanding any provision of this Plan to the contrary, pursuant to Code Section
409A(a)(2), Post-2004 Deferrals may not be distributed earlier than: (a) a Participant’s
Separation from Service, (b) the Participant’s death, (c) a Change in Control or (d) the
occurrence of an Unforeseeable Emergency.

ARTICLE X

Covenant Not to Compete, Non-Solicitation,

Non-Disclosure and Forfeiture

     10.1 As a condition of participation in the Plan, Employee agrees with the Company and his
Employing Company as follows:

          (a) While Employee is employed by any Employing Company, Employee will devote his or her
entire time, energy and skills to the service of the Employing Company. Such employment shall be
at the will and at the pleasure of the board of directors of each Employing Company.

          (b) Employee will not, during the term of his or her employment with an Employing Company,
and after termination for any reason of his or her employment with an Employing Company, directly
or indirectly, either individually or as a stockholder, director, officer, consultant, independent
contractor, employee, agent, member or otherwise of or through any corporation, partnership,
association, joint venture, firm, individual or otherwise (hereinafter “Firm”), or in any other
capacity:

               (i) Carry on or engage in a business like or similar to any business engaged in by the
Employing Company in any territory in which the Employing Company has been or is conducting
business;

               (ii) Solicit or do business with any customer of the Employing Company; or

               (iii) Solicit, directly or indirectly, any employee of any Employing Company to leave their
employment with the Employing Company for any reason. For purposes of this Agreement, the
Employing Company and Employee agree that Employee shall be deemed

 

 

to have solicited an employee in violation of this Agreement if such employee is hired by Employee
or his or her Firm within six (6) months of Employee’s last employment date with any Employing
Company.

          (c) During the term of his or her employment with an Employing Company and thereafter,
Employee shall not divulge, or furnish or make accessible to any third party, company, corporation
or other organization (including, but not limited to, customers, competitors or governmental
agencies), without the Company’s prior written consent, any trade secrets, customer lists,
information regarding customers, or other confidential information concerning any Employing Company
or its business, including without limitation confidential methods of operation and organization,
trade secrets, confidential matters related to pricing, markups, commissions and customer lists.

     10.2 In the event of a breach by Employee of all or any part of the provisions of subdivisions
(b) or (c) of Section 10.1, the Employee shall immediately forfeit all rights to any benefits under
this Plan attributable to Employer Contributions and the Company shall be entitled to receive from
the Employee an amount equal to all benefits previously paid to Employee attributable to Employer
Contributions.

     10.3 In the event of a breach or threatened breach by Employee of all or any part of the
provisions of subdivisions (b) of Section 10.1 within the two-year period following his termination
of employment or (c) of this Section 10.1 at any time, the Company shall in addition to any
remedies that may be applicable under Section 10.2, be entitled to a preliminary and permanent
injunction restraining Employee from such breach without limiting any other rights or remedies
available to the Company for such breach or threatened breach. The two-year period during which the
Company shall be entitled to an injunction for a breach or threatened breach of subdivision (b) of
Section 10.1 shall be extended by any period of time during which Employee is in default of the
covenants contained in this Article X.

     10.4 Employee specifically recognizes and affirms that each of the covenants contained in
subdivisions (b) and (c) of this Section 10.1 is a material and important term of this Plan which
has induced the Company to permit Employee to participate in this Plan, and Employee further agrees
that should all or any part or application of subdivisions {b) or (c) of Section 10.1 of this Plan
be held or found invalid or unenforceable for any reason whatsoever by a court of competent
jurisdiction in an action between Employee and the Company, such invalidity or unenforceability
shall not affect any other provisions of the Plan, and the Company shall be entitled to rescind
(but not obligated to do so) all benefits attributable to Employer Contributions under Article VII
granted to Employee under this Plan. If Employee has been paid benefits under this Plan, the
Company shall be entitled to receive from Employee an amount equal to all benefits paid to Employee
attributable to Employer Contributions.

     10.5 Notwithstanding any provision to the contrary herein contained, Section 10.1(b) shall not
apply:

          (a) Upon the involuntary termination of the Employee’s employment by an Employing Company
other than for Cause within one (1) year following a Change in Control; or

 

 

          (b) Upon the voluntary termination of employment by the Employee for any reason within the
thirty (30) day period immediately after the one (1) year period following a Change in Control.

For purposes of this Article X, the term Change in Control shall mean a Change in Control as
defined with respect to Pre-2005 Deferrals.

For purposes of this Agreement, “Cause” shall mean (i) a willful and material violation of
applicable banking laws and regulations, (ii) dishonesty, (iii) theft, (iv) fraud, (v)
embezzlement, (vi) commission of a felony or a crime involving moral turpitude, (vii) substantial
dependence or addiction to alcohol or any drug, (viii) conduct disloyal to an Employing Company or
its affiliates, or (ix) willful dereliction of duties or disregard of lawful instructions or
directions of the officers of directors of an Employing company or its affiliates relating to a
material matter.

ARTICLE XI

Nature of Employer Obligation and Participant interest

     11.1 A Participant, his Beneficiary, and any other person or persons having or claiming a
right to payments under this Plan shall rely solely on the unsecured promise of the Company set
forth herein, and nothing in this Plan shall be construed to give a Participant, Beneficiary, or
any other person or persons any right, title, interest, or claim in or to any specific assets,
fund, reserve, account, or property of any kind whatsoever owned by the Company or in which it
may have any right, title, or interest now or in the future; but a Participant shall have the right
to enforce his or her claim against the Company in the same manner as any unsecured creditor.

     11.2 All amounts paid under this Plan shall be paid in cash from the general assets of the
Company. Benefits shall be reflected on the accounting records of the Company but shall not be
construed to create, or require the creation of, a trust, custodial or escrow account. Nothing
contained in this Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust or a fiduciary relationship of any kind between the Company and an
employee or any other person. Neither the employee nor a Beneficiary of an employee shall acquire
any interest greater than that of an unsecured creditor.

     11.3 Any Benefits payable under this Plan shall be independent of, and in addition to, any
other benefits or compensation of any sort, payable to or on behalf of the Participant under or
pursuant to any other arrangement sponsored by the Company or any other agreement between the
Company and the Participant.

ARTICLE XII

Miscellaneous Provisions

     12.1 Neither the Participant, his Beneficiary, nor his legal representative shall have any
rights to commute, sell, assign, transfer or otherwise convey the right to receive any payments
hereunder, which payments and the rights thereto are expressly declared to be nonassignable and
nontransferable. Any attempt to assign or transfer the right to payments of this Plan shall be void
and have no effect.

 

 

     12.2 The assets from which Participant’s benefits shall be paid shall at all times be subject
to the claims of the creditors of the Employing Companies and a Participant shall have no right,
claim or interest in any assets as to which account is deemed to be invested or credited under the
Plan.

     12.3 The Plan may be amended, modified, or terminated by the Board of Directors in its sole
discretion at any time and from time to time; provided, however, that no such amendment,
modification, or termination shall impair any rights to benefits under the Plan prior to such
amendment, modification, or termination. The Plan may also be amended or modified by the
Administrative Committee if such amendment or modification does not involve a substantial increase
in cost to the Employing Companies.

     12.4 It is expressly understood and agreed that the payments made in accordance with the Plan
are in addition to any other benefits or compensation to which a Participant may be entitled or for
which he may be eligible, whether funded or unfunded, by reason of his employment by an Employing
Company.

     12.5 The Company shall deduct from each payment under the Plan the amount of any tax (whether
federal, state or local income taxes, Social Security taxes or Medicare taxes) required by any
governmental authority to be withheld and paid over by the Employing Company to such governmental
authority for the account of the person entitled to such distribution.

     12.6 Any Compensation deferred by a Participant while employed by an Employing Company shall
not be considered compensation earned currently for purposes of any tax-qualified retirement plan
sponsored by the Company. Distributions from a Participant’s Account shall not be considered wages,
salaries or compensation under any other employee benefit plan.

     12.7 No provision of this Plan shall be construed to affect in any manner the existing rights
of an Employing Company to suspend, terminate, alter, modify, whether or not for cause, the
employment relationship of the Participant and an Employing Company.

     12.8 Except to the extent pre-empted by federal law, this Plan, and all its rights under it,
shall be governed by and construed in accordance with the laws of the State of Alabama.

     12.9 This Plan shall be binding upon the Company, its assigns, and any successor which shall
succeed to substantially all of its assets and business through merger, consolidation or
acquisition.

     12.10 Compliance with the AJCA. Code Section 409A, as added by the American Jobs Creation Act
of 2004 (AJCA), substantially revised the requirements applicable to certain deferred compensation
arrangements. With respect to Post-2004 Deferrals, this Plan is intended to comply, and to be
operated in all respects in compliance, with the requirements of Code Section 409A and all Internal
Revenue Service rulings, Treasury regulations or other pronouncements or guidance implementing or
interpreting its provisions. With respect to Post-2004 Deferrals, all provisions of this Plan shall
be interpreted or construed so as to meet the requirements of Code Section 409A and all
regulations, rulings and other pronouncements or

 

 

guidance thereunder and no action, amendment or termination of the Plan shall be effective to the
extent it would cause the Plan to violate the requirements of Code Section 409A.

     The Pre-2005 Deferrals are intended to qualify for grandfathered status pursuant to Internal
Revenue Service guidance, including any Treasury regulations so no provision hereof shall have the
effect of enhancing, adding or materially modifying a right or benefit of any Participant with
respect to such Pre-2005 Deferrals. To the extent that any provision hereof may be interpreted or
construed as so enhancing, adding or modifying a right or benefit, such provision shall be void and
of no effect.

     With respect to the Post-2004 Deferrals, in the event subsequent Treasury regulations,
Internal Revenue Service rulings or other pronouncements or guidance interpreting or implementing
the provisions of Code Section 409A affect any provisions of this Plan or any election or other
administrative form used for the Plan, this Plan and any election or other administrative form used
for the Plan shall be amended, as necessary, to comply with such regulation, ruling or other
pronouncement or guidance; and, until adoption of any such amendment, the provisions hereof shall
be construed and interpreted to comply with the applicable provisions of such regulation, ruling or
other pronouncement or guidance. No such amendment to the Plan or to any administrative form shall
be considered prejudicial to any interest of a Participant or Beneficiary hereunder.

     12.11 It is intended that Plan transactions and elections made by Participants who
are subject to Section 16 of the Exchange Act meet applicable requirements for exemption pursuant
to Rule 16b-3 under the Exchange Act and that this Plan be operated and interpreted in all respects
in compliance therewith. Accordingly, notwithstanding anything in
this Plan to the
contrary, all transactions, elections, amendments, applications or other actions or determinations
in connection with the Plan (including without limitation elections and amendments under Article
VI, hardship distribution applications under Section 9.4, and amendments to the Plan) with respect
to or affecting any Participant subject to Section 16 of the Exchange Act shall be subject to the
prior approval of the Board of Directors (or the Compensation Committee thereof). Notwithstanding
anything in this Plan to the contrary, the Administrative Committee may restrict, rescind or deem
void any Plan transaction or election, or impose other restrictions, rules or procedures with
respect to the Plan or participation therein, to the extent deemed necessary or appropriate by the
Administrative Committee in furtherance of this Section 12.11.

(Signature Page Follows)

 

 

     IN WITNESS WHEREOF, the Plan as amended and restated as of January 1. 2005, has been executed
pursuant to approval of the Board of Directors, this
18th day of
December, 2006.

	 	 	 	 	 	 	 
	ATTEST:	 	COMPASS BANCSHARES, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Joseph B. Cartee 

	 	By:
	 	/s/ Garrett R. Hegel 

	 
	 	Its:   Associate General Counsel
	 	 	 	Its:  Chief Financial Officer

 

 

EXHIBIT A

D. Paul Jones, Jr.

Charles E. McMahen

 

 

EXHIBIT B

James D. Barri

George M. Boltwood

E. Lee Harris, Jr.

Garrett R. Hegel

D. Paul Jones, Jr.

William Helms

Charles E. McMahen

Clayton D. Pledger

Gilbert R. StoneEX-10.(G) SMARTINVESTOR RETIREMENT BENEFIT PLAN

 

Exhibit (10)(g)

COMPASS BANCSHARES, INC.

SMARTINVESTOR RETIREMENT BENEFIT RESTORATION PLAN

AS AMENDED AND RESTATED AS OF JANUARY 1, 2005

ARTICLE I

Purpose and Adoption of Plan

     1.1 Adoption: Compass Bancshares, Inc. (the “Company”) adopted and established the
Compass Bancshares, Inc. Smartlnvestor Retirement Restoration Plan (the “Plan”) effective as of
January 1, 2003. The Plan is an unfunded deferred compensation arrangement whose benefits shall be
paid solely from the general assets of the Employing Companies. This Plan as amended and restated
is adopted as of January 1, 2005.

     1.2 Purpose: The Plan is designed to permit a select group of management or highly
compensated employees to receive benefits equal to the employer contributions that would have been
made for such employees under the Compass Bancshares, Inc. SmartInvestor Retirement Plan (the
“SmartInvestor Retirement Plan”), but for limitations imposed by the federal income tax laws.

     1.3 Purpose of the 2005 Amendment and Restatement: The purpose of the amendment and
restatement of the Plan is to comply fully with Section 409A of the Code and the Treasury
regulations and other guidance issued with respect thereto.

ARTICLE II

Definitions

     For purposes of the Plan the following terms shall have the following meanings unless a
different meaning is plainly required by the context:

     2.1 “Account” shall mean the hypothetical account or accounts established and maintained by
the Company for bookkeeping purposes to reflect the interest of a Participant in the Plan resulting
from Employer Contributions made on behalf of a Participant and adjustments thereto to reflect
deemed income, gains, losses, and other credits or charges less any distributions. This Account
shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and
determination of the amounts to be paid to a Participant under the Plan.

     2.2 “Administrative Committee” shall mean the Compensation Committee of the Board of
Directors.

     2.3 “Beneficiary” shall mean any person, estate, trust, or organization entitled to receive
any payment under the Plan upon the death of a Participant. The Participant shall designate his
Beneficiary on a form provided by the Administrative Committee.

     2.4 “Board of Directors” shall mean the Board of Directors of the Company or the Compensation
Committee thereof.

 

 

     2.5 “Change in Control” shall mean a change in the ownership of the Company, a change in
effective control of the Company or a change in the ownership of a substantial portion of the
assets of the Company as provided under Code Section 409A and any Internal Revenue Service
guidance, including any Treasury regulations issued in connection with Code Section 409A.

     2.6 “Closing Price” shall mean the closing price on any trading day of a share of the Common
Stock based on consolidated trading as defined by the Consolidated Tape Association and reported as
part of the consolidated trading prices of stock exchange on which the Common Stock is traded.

     2.7 “Code” shall mean the Internal Revenue Code of 1986, as amended, including any successor
statute.

     2.8 “Common Stock” shall mean the common stock of the Company.

     2.9 “Company” shall mean Compass Bancshares, Inc.

     2.10 “Compensation” shall mean the Employee’s base wages or salary paid by any Employing
Company to an Employee, including amounts contributed by an Employing Company to the Compass
Bancshares, Inc. Employee Stock Ownership Plan as salary deferral contributions pursuant to the
Employee’s exercise of his deferral option made in accordance with Section 401(k) of the Code,
amounts contributed by an Employing Company to the Compass Bancshares, Inc. Flexible Benefits Plan
(“Superflex”) on behalf of the Employee pursuant to his salary reduction election under such plan
and in accordance with Section 125 of the Code, amounts contributed to a qualified parking plan
under Section 132(1) of the Code, and any amounts contributed by the Employee on a pre-tax basis to
any other qualified or non-qualified deferred compensation plans of the Company; but disregarding
overtime, bonuses, other forms of incentive pay paid in cash and such amounts which are
reimbursements to an Employee paid by any Employing Company including, but not limited to,
reimbursement for such items as moving expenses, automobile expenses, tax preparation expenses,
travel and entertainment expenses, and health and life insurance premiums. Notwithstanding the
foregoing and solely in the case of Participants specified on Exhibit “A” hereto the term
“Compensation” shall also include bonuses and other forms of incentive pay paid in cash.

     2.11 “Effective Date” shall mean the first day of the first payroll period the Administrative
Committee shall select an Employee for participation under the Plan and the Employee has agreed to
the terms for participation in the Plan.

     2.12 “Employee” shall mean any person who is currently employed by an Employing Company.

     2.13 “Employer Contributions” shall mean the amounts credited a Participant’s Account under
Article VI of the Plan.

     2.14 “Employing Company” shall mean the Company or any affiliate or subsidiary (direct or
indirect) of the Company.

 

 

     2.15 “Enrollment Date” shall mean the Effective Date, January 1, of each Plan Year and such
other dates as may be determined from time to time by the Administrative Committee.

     2.16 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

     2.17 “Investment Request” shall mean the Participant’s written request to have his Account
invested pursuant to Section 7.1 or Section 7.2 and which is accepted by the Administrative
Committee.

     2.18 “Key Employee” shall mean, for purposes of this Plan and in accordance with Section 409A
of the Code, a key employee as defined in Section 416(i) of the Code, without regard to paragraph
(5) thereof.

     2.19 “Participant” shall mean an Employee or former Employee of an Employing Company who is
eligible to receive benefits under the Plan.

     2.20 “Plan” shall mean Compass Bancshares, Inc. Smartlnvestor Retirement Benefit Restoration
Plan as amended from time to time.

     2.21
“Plan Year” shall mean the twelve (12) month period
commencing January 1st and ending on
the last day of December.

     2.22 “Separation from Service” shall mean a Participant’s separation from service as an
Employee with the Company for purposes of Section 409A of the Code other than for death or leave of
absence. A transfer of employment within or among the Company and any member of a controlled group,
as provided in Code Section 409A(d)(6) shall not be deemed a Separation from Service.

     2.23 “Unforeseeable Emergency” shall mean (a) a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s spouse or a dependent
(as defined in Code Section 152(a)) of the Participant, (b) loss of the Participant’s property due
to casualty, or (c) other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant, each as determined to exist by the Administrative
Committee, in its sole and absolute discretion as defined by Section 409A of the Code and the
Treasury regulations and other guidance thereunder.

     The words in the masculine gender shall include the feminine and neuter genders and words in
the singular shall include the plural and words in the plural shall include the singular.

ARTICLE III

Administration of Plan

     3.1 The Administrative Committee shall be responsible for the general administration of the
Plan. The Administrative Committee may select a chairman and may select a secretary (who may, but
need not, be a member of the Administrative Committee) to keep its records or to assist it in the
discharge of its duties. A majority of the members of the Administrative Committee shall constitute
a quorum for the transaction of business at any meeting. Any

 

 

determination or action of the Administrative Committee may be made or taken by a majority of the
members present at my meeting thereof, or without a meeting by resolution or written memorandum
concurred in by a majority of the members.

     3.2 No member of the Administrative Committee shall receive any compensation from the Plan for
his service.

     3.3 The Administrative Committee shall administer the Plan in accordance with its terms and
shall have all powers necessary to carry out the provisions of the Plan more particularly set forth
herein. It shall have the full discretion to interpret the Plan and determine all questions arising
in the administration, interpretation and application of the Plan. Any such determination by it
shall be conclusive and binding on all persons. It may adopt such regulations as it deems desirable
for the conduct of its affairs. It may appoint such accountants, counsel, actuaries, specialists
and other persons as it deems necessary or desirable in connection with the administration of this
Plan, and shall be the agent for the service of process.

     3.4 The Administrative Committee shall be reimbursed by the Company for all reasonable
expenses incurred by it in the fulfillment of its duties. Such expenses shall include any expenses
incident to its functioning, including, but not limited to, fees of accountants, counsel,
actuaries, and other specialists, and other costs of administering the Plan.

     3.5 (a) The Administrative Committee is responsible for the daily administration of the Plan.
It may appoint other persons or entities to perform any of its fiduciary and/or administrative
functions. The Administrative Committee and any such appointee may employ advisors and other
persons necessary or convenient to help it carry out its duties, including its fiduciary duties.
The Administrative Committee shall have the right to review the work and performance of each such
appointee as it deems necessary or appropriate, and shall have the right to remove any such
appointee from his position. Any person, group of persons or entity may serve in more than one
fiduciary capacity.

          (b) The Administrative Committee shall maintain accurate and detailed records and accounts of
Participants and of their rights under the Plan and of all receipts, disbursements, transfers and
other transactions concerning the Plan. Such accounts, books and records relating thereto shall be
open at all reasonable times to inspection and audit by the Board of Directors and by persons
designated thereby.

          (c) The Administrative Committee shall take all steps necessary to ensure that the Plan
complies with the law at all times. These steps shall include such items as the preparation and
filing of all documents and forms required by any governmental agency; maintaining of adequate
Participants’ records; withholding of applicable taxes and filing of all required tax forms and
returns; recording and transmission of all notices required to be given to Participants and their
Beneficiaries; the receipt and dissemination, if required, of all reports and information received
from an Employing Company; and doing such other acts necessary for the proper administration of the
Plan. The Administrative Committee shall keep a record of all of its proceedings and acts, and
shall keep all such books of account, records and other data as may be necessary for proper
administration of the Plan. The Administrative Committee shall notify the

 

 

Company upon its request of any action taken by it, and when required, shall notify any other
interested person or persons.

     3.6 The procedures for filing claims for payments under the Plan are described below:

          (a) Submission of Claim. It is the intent of the Company to make payments under the Plan
without the Participant having to complete or submit any claim forms. However, any Participant
or Beneficiary or a duly authorized representative thereof (“claimant”) who believes he or she
is entitled to a payment under the Plan may submit a claim for payment to the Administrative
Committee. Any claim for payments under the Plan must be made by the claimant in writing and
state the claimant’s name and nature of benefits payable under
the Plan. The claimant’s claim
shall be deemed to be filed when delivered to a member of the Administrative Committee which
shall make all determinations as to the right of any person to benefits hereunder.

          (b) Notice of Denial of Claim. If the claim is wholly or partially denied, the
Administrative Committee shall provide written or electronic notice thereof to the claimant
within a reasonable period of time, but not later than ninety (90) days after receipt of the
claim. An extension of time for processing the claim for benefits is allowable if special
circumstances require an extension, but such an extension shall not extend beyond one hundred
eighty (180) days from the date the claim for benefits is received by the Administrative
Committee. Written notice of any extension of time shall be delivered or mailed within ninety
(90) days after receipt of the claim and shall include an explanation of the special
circumstances requiring the extension and the date by which the Administrative Committee expects
to render the final decision.

          The notice of adverse benefit determination shall (i) specify the reason for the denial; (ii)
reference the provisions of this Plan on which the denial is based; (iii) describe the additional
material or information, if any, necessary for the claimant to receive benefits and explain why
such information is necessary; (iv) indicate the steps to be taken by the claimant if a review of
the denial is desired, including the time limits applicable thereto; and (v) contain a statement of
the claimant’s right to bring a chit action under ERISA in the event of an adverse benefit
determination on review. If notice of the adverse benefit determination is not furnished in
accordance with the preceding provisions of this Section, the claim shall be deemed denied and the
claimant shall be permitted to exercise his right to review as set forth below.

          (c) Review of Denied Claim. If a claim is denied and a review is desired, the claimant shall
notify the Administrative Committee in writing within sixty (60) days after receipt of written
notice of a denial of a claim. In requesting a review, the claimant may submit any written
comments, documents, records, and other information relating to the claim, the claimant feels are
appropriate. The claimant shall, upon request and free of charge, be provided reasonable access to,
and copies of, all documents, records and other information “relevant” to the claimant’s claim for
benefits. The Administrative Committee shall review the claim taking into account all comments,
documents, records and other information submitted by the claimant, without regard to whether such
information was submitted or considered in the initial benefit determination.

 

 

          (d) Decision on Review. The Administrative Committee shall provide the
claimant with written notice of its decision on review within a reasonable period
of time, but not later than sixty (60) days after receipt of request upon review.
An extension of time for making the decision on the request for review is allowable
if special circumstances shall occur, but such an extension shall not extend beyond
one hundred twenty (120) days from the date the request for review is received by
the Administrative Committee. Written notice of the extension of time shall be
delivered or mailed within sixty (60) days after receipt of the request for review,
indicating the special circumstances requiring an extension and the date by which
the Administrative Committee expects to render a determination.

          In the event of an adverse benefit determination on review, the notice thereof shall (i)
specify the reason or reasons for the adverse benefit determination; (ii) reference the specific
provisions of this Plan on which the benefit determination is based; (iii) contain a statement
that the claimant is entitled to receive, upon request and free of charge, reasonable access to,
and copies of all documents, records and other information “relevant” to the claimant’s claim for
benefits; and (iv) inform the claimant of the right to bring a civil action under the provisions
of ERISA.

          For purposes hereof, any document, record and item of information shall be considered
“relevant” to the claimant’s claim if it (i) was relied upon in making the benefit determination,
(ii) was submitted, considered, or generated in the course of making the benefit determination,
whether or not actually relied upon in making the determination; or (iii) demonstrates compliance
with the administrative processes and safeguards of this claims procedure.

          (e) Preservation of Remedies. After exhaustion of the claims procedure as
provided herein, nothing shall prevent the claimant from pursuing any other legal or
equitable remedy otherwise available, including the right to bring a civil action
under Section 502(a) of ERISA, if applicable. Notwithstanding the foregoing, no
legal action may be commenced or maintained against the Company, any Employing
Company or the Administrative Committee more than ninety (90) days after the
claimant has exhausted the administrative remedies set forth in this Section 3.6.

ARTICLE IV

Arbitration

     4A Any controversy relating to a claim arising out of or relating to this Plan, including,
but not limited to claims for benefits due under this Plan, claims for the enforcement of ERISA,
claims based on the federal common law of ERISA, claims alleging discriminatory discharge under
ERISA, claims based on state law, and assigned claims relating to this Plan shall be settled by
arbitration in accordance with the then current Employee Benefit Claims Arbitration Rules of the
American Arbitration Association (AAA) or any successor rules which are hereby incorporated into
the Plan by this reference; provided, however, both the Company and the Participant shall have the
right at any time to seek equitable relief in court without submitting the issue to arbitration.

 

 

     4.2 Neither the Participant (or his beneficiary) nor the Plan may be required to submit any
such claim or controversy to arbitration until the Participant (or his beneficiary) has first
exhausted the Plan’s internal appeals procedures set forth in Section 3.6. However, if the
Participant (or his beneficiary) and the Company agree to do so, they may submit the claim or
controversy to arbitration at any point during the processing of the dispute.

     4.3 The Company will bear all costs of arbitration, except that the Participant will pay the
filing fee set by the AAA and the arbitrator shall have the power to apportion among the parties
expenses such as pre-hearing discovery, travel, experts’ fees, accountants’ fees, and attorney’s
fees and except as otherwise provided herein. The decision of the arbitrator shall be final and
binding on all parties, and judgment on the arbitrator’s award may be entered in any court of
competent jurisdiction.

     4.4 If there is a dispute as to whether a claim is subject to arbitration, the arbitrator
shall decide that issue. The claim must be filed with the AAA within the applicable statute of
limitations period. The arbitrator shall issue a written determination sufficient to ensure
consistent application of the Plan in the future.

     4.5 Any arbitration will be conducted in accordance with the following provisions, not
withstanding the Rules of the AAA. The arbitration will take place in a neutral location within the
metropolitan area in which the Participant was or is employed by an Employing Company. The
arbitrator will be selected from the attorney members of the Commercial Panel of the AAA who reside
in the metropolitan area where the arbitration will take place and have at least 5 years of ERISA
experience. If an arbitrator meeting such qualifications is unavailable, the arbitrator will be
selected from the attorney members of the National Panel of Employee Benefit Claims Arbitrators established by the AAA.

     4.6 In any such arbitration, each party shall be entitled to discovery of any other party as
provided by the Federal Rules of Civil Procedure then in effect; provided, however, that discovery
shall be limited to a period of 60 days. The arbitrator may make orders and issue subpoenas as
necessary. The arbitrator shall apply ERISA, as construed in the federal Circuit in which the
arbitration takes place, to the interpretation of the Plan and the Federal Arbitration Act to the
interpretation of this arbitration provision. To the extent that state law is not preempted by
ERISA, then the law of Alabama applies.

     4.7 Any party has the right to arrange for a stenographic record to be made of the
proceedings, which stenographic record shall be the official record. Either party may make an offer
of judgment at any time in accordance with the procedures of Rule 68 (or its successor) of the
Federal Rules of Civil Procedure. The existence of such an offer is not admissible in any
proceeding. If the monetary award of the arbitrator to a party is less than any monetary offer to
that party plus 20 percent of such offer, then that party receiving such award shall pay the other
party his reasonable attorneys’ fees, experts’ fees, accountants’ fees and other costs incurred
with respect to the arbitration following the date of the offer of judgment. Such amount is to be
deducted from the award prior to payment. Arbitration is the exclusive remedy for any dispute
between the parties other than equitable relief which either party may seek through the court
system.

 

 

ARTICLE V

Eligibility

     5.1 Any Employee who is a member of a select group of management or highly compensated
Employees, is eligible to participate in the SmartInvestor Retirement Plan, and is selected for
participation in the Plan by the Administrative Committee in its sole discretion, shall be eligible
to participate in the Plan. An Employee who is selected to participate shall be designated on
Exhibit B hereto. An Employee shall become a Participant by agreeing to be bound by the terms of
this Plan, including the non-competition provisions of Article IX.

     5.2 Notwithstanding the above, the Administrative Committee shall be authorized to modify the
eligibility requirements and rescind the eligibility of any Participant if necessary to insure that
the Plan is maintained primarily for the purpose of providing deferred compensation to a select
group of management or highly compensated employees under ERISA.

     5.3 If the Administrative Committee determines that a Participant is no longer eligible to
participate in the Plan no additional Employer Contributions shall be made on such Participant’s
behalf until it is again determined he is eligible to participate. The Account of such a
Participant shall continue to be adjusted by the provisions of Article VII until the Account is
distributed under Article VIII.

ARTICLE VI

Employer Contributions

     6.1 Subject to compliance with the provisions of Article IX, the Account of each Participant
shall be credited, as soon as administratively possible but no later than as of the close of the
Plan Year, with an amount specified under 6.1(a) less the amount specified under 6.1(b) as follows:

          (a) An amount equal to the employer contribution the Company would have made to the
Smartlnvestor Retirement Plan on behalf of the Participant if the Compensation of the
Participant for the Plan Year were not subject to restrictions under Section 401(a)(17) of the
Code and if employer contributions to the Smartlnvestor Retirement Plan were not subject to
limitations under Section 415 of the Code.

          (b) The amount equal to the Company’s employer contribution on behalf of the Participant to
the Smartlnvestor Retirement Plan for the Plan Year.

     6.2 The amount credited under Section 6.1 shall be subject to vesting under the same vesting
schedule and subject to the same terms and conditions applicable to the vesting of employer
contributions under the Smartinvestor Retirement Plan.

ARTICLE VII

Investment of Accounts

     7.1 The Account of each Participant shall be credited as of the last day of each calendar
quarter with investment earnings and losses based upon the assets in the Account or on such more
frequent basis as shall be authorized by the Administrative Committee. Upon

 

 

becoming eligible to participate and before the beginning of each Plan Year, Participants may
request how the Employer Contributions are to be invested. The investment preference shall be made
in writing on a form prescribed by the Company and shall be delivered to the Company at least ten
(10) days prior to such Enrollment Date and shall be effective as of such Enrollment Date. The
Investment Request made in accordance with this Article VII shall continue from Plan Year to Plan
Year unless the Participant changes the Investment Request by submitting a written request to the
Company on a form prescribed by the Company not later than the tenth (10th) day prior to the next
succeeding Plan Year. Any such change shall become effective as of the first day of the Plan Year
next following the Plan Year in which such request is submitted to the Company. The Administrative
Committee shall be authorized to permit more frequent changes in investment preferences to be
effective on such dates as it shall specify. The Administrative Committee shall consider the
Investment Request but is not obligated to follow such requests.

     7.2 Participants shall be permitted to request from among such investment options as the
Administrative Committee may permit and can allocate their Accounts among such options for the Plan
Year. Dividends, interest and other distributions received with respect to any Investment Request
shall be deemed to be reinvested in the same investment option on such valuation system as shall be
approved by the Administrative Committee. No Participant shall be entitled to any voting rights
with respect to any shares of Common Stock credited to his Account.

     7.3 At the end of each Plan Year (or on a more frequent basis as determined by the
Administrative Committee), a report shall be issued to each Participant who has an Account and said
report will set forth the value in such Account.

     7.4 The Accounts under the Plan shall be hypothetical in nature and shall be maintained for
bookkeeping purposes only. Neither the Plan nor any Account shall be required to hold any actual
fund or asset.

ARTICLE VIII

Distribution of Accounts

     8.1 Subject to compliance with the provisions of Article IX, when a Participant has a
Separation from Service with an Employing Company, said Participant shall be entitled to receive
the vested balance of his Account in cash in a lump sum or in equal monthly, quarterly or annual
installments not to exceed a fifteen (15) year period as specified on the Participant’s election
form. The portion of a Participant’s Account which is not fully vested on the date of his
Separation from Service with an Employing Company shall be forfeited and the Participant shall have
no further rights with respect thereto.

          In the event the value of a Participant’s vested Account balance at the time distribution is
to commence is $10,000 or less, the Account shall be distributed in a lump sum notwithstanding a
Participant’s election to have his Account distributed in installments under the Plan. All payments
due under this Section 8.1 shall be made or commence as soon as reasonably feasible following a
Participant’s Separation from Service. Any amounts deemed to be invested in a Common Stock fund
shall be equal to the market value of any shares of Common Stock reported in a Participant’s
Account, based on the Closing Price of such Common Stock during

 

 

the day on which the distribution is processed immediately preceding the date of any lump sum or
installment distribution. No portion of a Participant’s Account shall be distributed in Common
Stock. The portion of an Account attributable to investments other than Common Stock shall be
valued on the date a distribution is processed. The transfer by a Participant between Employing
Companies shall not be deemed to be a Separation from Service with an Employing Company.

     Notwithstanding the foregoing, distributions to a Key Employee as a result of Separation from
Service, whether the distribution is made in the form of a lump sum or installments, shall not be
made or the payments may not begin before the date which is six (6) months following the date of
the Separation from Service, or, if earlier, the date of death of the Key Employee.

     8.2 On the Effective Date, a Participant shall elect the form of payment to be received upon
his death, Separation from Service or upon a Change in Control, such form to be either (a) a lump
sum, or (b) monthly, quarterly, or annual installments over a period not to exceed fifteen (15)
years. The initial payment election with respect to the form of payment shall govern the
distribution of such Participant’s Account, except as provided in Section 8.3. If a Participant
fails to specify a form of payment, his Account shall be distributed in a lump sum.

     8.3 With the approval of the Administrative Committee, a Participant may amend a prior payment
election on a form provided by the Administrative Committee in order to change the form of
distribution of his Account. Any such amendment to a prior payment election shall be given effect
by the Administrative Committee only if the election to change the form of payment (i) does not
take effect until at least twelve (12) months after the date on which the payment election form is
filed with the Administrative Committee and (ii) the first payment with respect to such change in
election is made is deferred for a period of not less than five (5) years after the date such
payment would otherwise have been made except in the event of death or Unforeseeable Emergency.

     Notwithstanding the foregoing, a Participant may elect to make a new payment election by
filing a new election form with the Administrative Committee on or before December 31, 2007;
provided that any such election applies only to amounts that would not otherwise be payable in the
year such new election is made and does not cause an amount to be paid in the year such new
election is made that would not otherwise be payable in such year.

     8.4 Subject to compliance with the provisions of Article IX, upon the death of a Participant
prior to the payment of his Account, the vested balance of his Account shall be paid to the
Participant’s Beneficiary in a lump sum or in equal monthly, quarterly or annual installments not
to exceed a fifteen (15) year period as specified on the Participant’s payment election form with
such payment to be made or payments to commence in the case of installment distributions within
sixty (60) days following the close of the calendar quarter in which the Administrative Committee
is provided evidence of the Participant’s death (or as soon as reasonably practicable thereafter);
provided, however, if the value of a Participant’s Account at the time an installment distribution
is to commence is $10,000 or less, the Account shall be distributed in a lump sum. In the event a
Beneficiary designation is not on file or the designated Beneficiary is deceased or cannot be
located, payment will be made to the estate of the Participant. The market value of any shares of
Common Stock credited to a Participant’s

 

 

Account shall be based on the Closing Price of such Common Stock during the day on which the
distribution is processed immediately preceding the date of any lump sum or installment
distribution. No portion of a Participant’s Account shall be distributed in Common Stock. The
portion of an Account attributable to investments other than Common Stock shall be valued on the
date a distribution is processed. In the event of the death of a Participant subsequent to the
commencement of installment payments but prior to the completion of the payments, the installments
shall continue and shall be paid to the Beneficiary as if the Participant had not died.

     8.5 The Beneficiary designation may be changed by the Participant or former Participant at any
time without the consent of the prior Beneficiary.

     8.6 A Participant may request a distribution due to an Unforeseeable Emergency by submitting a
written request to the Administrative Committee accompanied by evidence to demonstrate that the
circumstances being experienced qualify as an Unforeseeable Emergency. The Administrative Committee
shall have the authority to require such evidence as it deems necessary to determine if a
distribution is warranted. If an application for a hardship distribution due to an Unforeseeable
Emergency is approved, the distribution is limited to an amount sufficient to meet the emergency.
The allowed distribution shall be payable in a method determined by the Administrative Committee as
soon as possible after approval of such distribution.

     8.7 Upon a Change in Control, and subject to compliance with the provisions of Article IX, a
Participant shall be paid the vested balance of his Account in a lump sum within sixty (60) days
following the close of the calendar quarter in which such event occurs

     8.8 Notwithstanding any provision of this Plan to the contrary, pursuant to Code Section
409A(a)(2), a Participant’s Account may not be distributed earlier than: (a) a Participant’s
Separation from Service, (b) the Participant’s death, (c) a Change in Control or (d) the occurrence
of an Unforeseeable Emergency.

ARTICLE IX

Covenant Not to Compete, Non-Solicitation,

Non-Disclosure and Forfeiture

     9.1 As a condition of participation in the Plan, Employee agrees with the Company and his
Employing Company as follows:

          (a) While Employee is employed by any Employing Company, Employee will devote his or her
entire time, energy and skills to the service of the Employing Company. Such employment shall be at
the will and at the pleasure of the board of directors of each Employing Company.

          (b} Employee will not, during the term of his or her employment with an Employing Company, and
after termination for any reason of his or her employment with an Employing Company, directly or
indirectly, either individually or as a stockholder, director, officer, consultant, independent
contractor, employee, agent, member or otherwise of or through any corporation, partnership,
association, joint venture, firm, individual or otherwise (hereinafter “Finn”), or in any other
capacity;

 

 

          (i) Carry on or engage in a business like or similar to any business engaged in
by the Employing Company in any territory in which the Employing Company has been or
is conducting business;

          (ii) Solicit or do business with any customer of the Employing Company; or

          (iii) Solicit, directly or indirectly, any employee of any Employing Company to
leave their employment with the Employing Company for any reason. For purposes of
this Agreement, the Employing Company and Employee agree that Employee shall be
deemed to have solicited an employee in violation of this Agreement if such employee
is hired by Employee or his or her Firm within six (6) months of Employee’s last
employment date with any Employing Company.

          (c) During the term of his or her employment with an Employing Company and thereafter,
Employee shall not divulge, or furnish or make accessible to any third party, company, corporation
or other organization (including, but not limited to, customers, competitors or governmental
agencies), without the Company’s prior written consent, any trade secrets, customer lists,
information regarding customers, or other confidential information concerning any Employing Company
or its business, including without limitation confidential methods of operation and organization,
trade secrets, confidential matters related to pricing, markups, commissions and customer lists.

     9.2 In the event of a breach by Employee of all or any part of the provisions of subdivisions
(b) or (c) of Section 9.1, the Employee shall immediately forfeit all rights to any benefits under
this Plan attributable to Employer Contributions and the Company shall be entitled to receive from
the Employee an amount equal to all benefits previously paid to Employee attributable to Employer
Contributions.

     9.3 In the event of a breach or threatened breach by Employee of all or any part of the
provisions of subdivisions (b) of Section 9.1 within the two-year period following his termination
of employment or (c) of this Section 9.1 at any time, the Company shall in addition to any remedies
that may be applicable under Section 9.2, be entitled to a preliminary and permanent injunction
restraining Employee from such breach without limiting any other rights or remedies available to
the Company for such breach or threatened breach. The two-year period during which the Company
shall be entitled to an injunction for a breach or threatened breach of subdivision (b) of Section
9.1 shall be extended by any period of time during which Employee is in default of the covenants
contained in this Article IX.

     9.4 Employee specifically recognizes and affirms that each of the covenants contained in
subdivisions (b) and (c) of this Section 9.1 is a material and important term of this Plan which
has induced the Company to permit Employee to participate in this Plan, and Employee further agrees
that should all or any part or application of subdivisions (b) or (c) of Section 9.1 of this Plan
be held or found invalid or unenforceable for any reason whatsoever by a court of competent
jurisdiction in an action between Employee and the Company, such invalidity or unenforceability
shall not affect any other provisions of the Plan, and the Company shall be entitled to rescind
(but not obligated to do so) all benefits attributable to Employer Contributions

 

 

under Article VII granted to Employee under this Plan. If Employee has been paid benefits under
this Plan, the Company shall be entitled to receive from Employee an amount equal to all benefits
paid to Employee attributable to Employer Contributions.

     9.5 Notwithstanding any provision to the contrary herein contained, Section 9.1(b) shall not
apply:

          (a) Upon the involuntary termination of the Employee’s employment by an Employing Company
other than for Cause within one (1) year following a Change in Control; or

          (b) Upon the voluntary termination of employment by the Employee for any reason within the
thirty (30) day period immediately after the one (1) year period following a Change in Control.

For purposes of this Agreement, “Cause” shall mean (i) a willful and material violation of
applicable banking laws and regulations, (ii) dishonesty, (iii) theft, (iv) fraud, (v)
embezzlement, (vi) commission of a felony or a crime involving moral turpitude, (vii) substantial
dependence or addiction to alcohol or any drug, (viii) conduct disloyal to an Employing Company or
its affiliates, or (ix) willful dereliction of duties or disregard of lawful instructions or
directions of the officers of directors of an Employing company or its affiliates relating to a
material matter.

For purposes of this Article, “Change in Control” shall have the meaning set forth in Section 2.5.

ARTICLE X

Nature of Employer Obligation and Participant Interest

     10.1 A Participant, his Beneficiary, and any other person or persons having or claiming a
right to payments under this Plan shall rely solely on the unsecured promise of the Company set
forth herein, and nothing in this Plan shall be construed to give a Participant, Beneficiary, or
any other person or persons any right, title, interest, or claim in or to any specific assets,
fund, reserve, account, or property of any kind whatsoever owned by the Company or in which it may
have any right, title, or interest now or in the future; but a Participant shall have the right to
enforce his or her claim against the Company in the same manner as any =secured creditor.

     10.2 All amounts paid under this Plan shall be paid in cash from the general assets of the
Company. Benefits shall be reflected on the accounting records of the Company but shall not be
construed to create, or require the creation of, a trust, custodial or escrow account. Nothing
contained in this Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust or a fiduciary relationship of any kind between the Company and an
employee or any other person. Neither the employee nor a Beneficiary of an employee shall acquire
any interest greater than that of an unsecured creditor.

     10.3 Any Benefits payable under this Plan shall be independent of, and in addition to, any
other benefits or compensation of any sort, payable to or on behalf of the Participant under or
pursuant to any other arrangement sponsored by the Company or any other agreement between the
Company and the Participant.

 

 

ARTICLE XI

Miscellaneous Provisions

     11.1 Neither the Participant, his Beneficiary, nor his legal representative shall have any
rights to commute, sell, assign, transfer or otherwise convey the right to receive any payments
hereunder, which payments and the rights thereto are expressly declared to be nonassignable and

     nontransferable.
Any attempt to assign or transfer the right to payments of this Plan shall be void and have no effect.

     11.2
The assets from which Participant’s benefits shall be paid shall at
all times be subject to the claims of the creditors of the Employing Companies and a Participant shall have no
right, claim or interest in any assets as to which account is deemed to be invested or credited
under the Plan.

     11.3 The Plan may be amended, modified, or terminated by the Board of Directors in its sole
discretion at any time and from time to time; provided, however, that no such amendment,
modification, or termination shall impair any rights to benefits under the Plan prior to such
amendment, modification, or termination. The Plan may also be amended or modified by the
Administrative Committee if such amendment or modification does not involve a substantial increase
in cost to the Employing Companies.

     11.4 It is expressly understood and agreed that the payments made in accordance with the Plan
are in addition to any other benefits or compensation to which a Participant may be entitled or for
which he may be eligible, whether funded or unfunded, by reason of his employment by an Employing
Company.

     11.5 The Company shall deduct from each payment under the Plan the amount of any tax (whether
federal, state or local income taxes, Social Security taxes or Medicare taxes) required by any
governmental authority to be withheld and paid over by the Employing
Company to such governmental
authority for the account of the person entitled to such distribution.

     11.6 Any Employer Contributions credited to a Participant’s Account while employed by an
Employing Company shall not be considered compensation earned currently for purposes of any
tax-qualified retirement plan sponsored by Compass. Distributions from a Participant’s Account
shall not be considered wages, salaries or compensation under any other employee benefit plan.

     11.7 No provision of this Plan shall be construed to affect in any manner the existing rights
of an Employing Company to suspend, terminate, alter, modify, whether or not for cause, the
employment relationship of the Participant and an Employing Company.

     11.8 Except to the extent pre-empted by federal law, this Plan, and all its rights under it,
shall be governed by and construed in accordance with the laws of the State of Alabama.

     11.9 This Plan shall be binding upon the Company, its assigns, and any successor which shall
succeed to substantially all of its assets and business through merger, consolidation or
acquisition.

 

 

     11.10 Compliance with the AJCA. Code Section 409A, as added by the American Jobs Creation Act
of 2004 (AJCA), substantially revised the requirements applicable to certain deferred compensation
arrangements. This Plan is intended to comply, and to be operated in all respects in compliance,
with the requirements of Code Section 409A and all Internal Revenue Service rulings, Treasury
regulations or other pronouncements or guidance implementing or interpreting its provisions. All
provisions of this Plan shall be interpreted or construed so as to meet the requirements of Code
Section 409A and all regulations, rulings and other pronouncements or guidance thereunder and no
action, amendment or termination of the Plan shall be effective to the extent it would cause the
Plan to violate the requirements of Code Section 409A.

     In the event subsequent Treasury regulations, Internal Revenue Service rulings or
other pronouncements or guidance interpreting or implementing the provisions of Code Section 409A
affect any provisions of this Plan or any election or other administrative form used for the Plan,
this Plan and any election or other administrative form used for the Plan shall be amended, as
necessary, to comply with such regulation, ruling or other pronouncement or guidance; and, until
adoption of any such amendment, the provisions hereof shall be construed and interpreted to comply
with the applicable provisions of such regulation, ruling or other pronouncement or guidance. No
such amendment to the Plan or to any administrative form shall be considered prejudicial to any
interest of a Participant or Beneficiary hereunder.

     11.11 It is intended that Plan transactions and elections made by Participants who are
subject to Section 16 of the Exchange Act meet applicable requirements for exemption pursuant to
Rule 16b-3 under the Exchange Act and that this Plan be operated and interpreted in all respects
in compliance therewith. Accordingly, notwithstanding anything in this Plan to the contrary, all
transactions, elections, amendments, applications or other actions or determinations in connection
with the Plan (including without limitation elections and amendments under Article VIII, hardship
distribution applications under Section 8.6, and amendments to the Plan) with respect to or
affecting any Participant subject to Section 16 of the Exchange Act shall be subject to the prior
approval of the Board of Directors (or the Compensation Committee thereof}. Notwithstanding
anything in this Plan to the contrary, the Administrative Committee may restrict, rescind or deem
void any Plan transaction or election, or impose other restrictions, rules or procedures with
respect to the Plan or participation therein, to the extent deemed necessary or appropriate by the
Administrative Committee in furtherance of this Section 11.11.

     IN WITNESS WHEREOF, the Plan as amended and restated as of January 1, 2005, has been executed
pursuant to approval of the Administrative Committee, this 18th  day of
December, 2006.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	COMPASS BANCSHARES, INC.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Joseph B. Cartee	 	 	 	By:	 	/s/ Garrett R. Hegel
	 	 	 	 	 	 	 	 	   
	 

	 	Its:
	 	Associate General Counsel
	 	 	 	 	 	Its:
	 	Chief Financial Officer

 

 

Exhibit A

Compass Bancshares, Inc.

Smartlnvestor Retirement Restoration Plan

Name

 

 

Exhibit B

Compass Bancshares, Inc.

SmartInvestor Retirement Restoration Plan

William C. Helms

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