Document:

Exhibit 4.1

 

 

AMENDED AND RESTATED BYLAWS (Estatutos) OF BANCO BILBAO VIZCAYA 

ARGENTARIA, S.A. (English translation)

 

 

 

  

  

  

 

Banco Bilbao Vizcaya Argentaria, S.A.

Company Bylaws

  

  

  

 

	
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TITLE I

GENERAL CHARACTERISTICS

Name, registered office, corporate purpose and duration of the Company

Article 1.                      Name.

The Company is called BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (the "Bank" or the "Company") and will be governed by the law, these Company Bylaws and other provisions that are applicable.

Article 2.                      Registered office.

The Bank has its registered office in the city of Bilbao (Vizcaya), Plaza de San Nicolas no. 4, and may set up branch, agency, regional and representative offices anywhere in Spain or abroad, pursuant to prevailing legal provisions.

The registered office address may be changed within the same municipal district by a Board of Directors’ resolution.

Article 3.                      Corporate purpose

The Bank's corporate purpose is to engage in all kinds of activities, operations, acts, contracts and services within the banking business or directly or indirectly related to it, that are permitted or not prohibited by prevailing provisions and ancillary activities.

Its corporate purpose also includes the acquisition, holding, utilisation and divestment of securities, public offerings to buy and sell securities, and any kind of holdings in any company or enterprise.

Article 4.                      Duration and commencement of operations

The duration of the Company will be for an indefinite period of time. It may commence its operations on the date on which the public deed of foundation is formalised.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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TITLE II

SHARE CAPITAL. SHARES. SHAREHOLDERS.

Chapter One

On Share Capital

Article 5.                      Share capital.

The Bank's share capital stands at TWO BILLION, FOUR HUNDRED AND TWO MILLION, FIVE HUNDRED AND SEVENTY ONE THOUSAND, FOUR HUNDRED AND THIRTY ONE EUROS, FORTY SEVEN EURO CENTS (€2,402,571,431.47), represented by FOUR BILLION, NINE HUNDRED AND THREE MILLION, TWO HUNDRED AND SEVEN THOUSAND AND THREE (4,903,207,003) shares each with a nominal value of FORTY-NINE EURO CENTS (€0.49), all of the same class and series, fully subscribed and paid up.

Article 6.                      Capital increase or reduction.

The Bank's capital may be increased or decreased by resolution of the General Meeting. Notwithstanding the provisions of article 30 in section c) and d) of these Company Bylaws.

The share capital may be increased by issuing new shares or by increasing the nominal value of pre-existing shares. In both cases, the exchange value of the increase in capital may consist both of new cash or non-cash contributions to the Company's net assets, including the set-off of credits against the Company, or a charge against earnings or reserves that already appeared on the latest balance sheet approved.

When share capital is increased by issuance of new ordinary or preference shares payable in cash, shareholders will be entitled to subscribe a number of shares proportional to the nominal value of the shares they own, within the period granted to them for this purpose by the Company’s Board of Directors. This period will be not less than fifteen days from the publication of the announcement of the offering for subscription of the new shares in the Official Gazette of the Companies Registry (BORME).

The pre-emptive subscription rights will be transferable under the same conditions as the shares from which they derive. When share capital is increased by a charge 

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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against reserves, the same rule will apply to the rights of free allocation of the new shares

Pre-emptive subscription rights will not apply when the increase of capital is due to the take-over of another company or of all or part of the split-off assets of another company or the conversion of debentures into shares.

When the interests of the Company so require, the General Meeting deciding on a capital increase to totally or partially eliminate pre-emptive subscription rights, pursuant to legally established requirements.

Chapter Two

On Shares

Article 7.                      Representation of shares

Shares will be represented by book entries governed by the provisions of the Securities Exchange Act and any other applicable provisions.

Article 8.                      Registration of shares

Shares, and their transfer and the constitution of collateral rights or any other kind of encumbrances on them, will be registered in the appropriate accounting record pursuant to the Securities Exchange Act and concordant provisions.

However, as the Bank's shares are nominative, the company will keep its own record of shareholders with the effects and efficacy attributed to it in each case by prevailing regulations. For this purpose, if the shareholders' formal status is that of persons or entities that, pursuant to their own legislation, hold the shares under a fiduciary relationship, trust or any other equivalent title, the Company may require said persons or entities to notify it of the final owners of the shares and any acts of transfer of and encumbrance on them.

Article 9.                       Capital at call

Where any shares are not paid up in full, shareholders must pay the undisbursed part at the time that the Board of Directors may determine, within a maximum period of five years from the date of the resolution to increase the capital. The form and other circumstances of the disbursement will be subject to the provisions in the resolution to increase the capital.

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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The capital calls will be notified to the shareholders affected or will be announced in the Official Gazette of the Companies Registry (BORME). There must be at least one month between the date of sending the notification or the publication of the announcement and the payment date.

Shareholders in default of capital calls may not vote. The amount of their shares will be subtracted from the share capital for calculating quorum. Shareholders in default will not be entitled to collect dividends or to pre-emptive subscription of new shares or convertible debentures.

Should the payment term indicated elapse without payment having been made, depending on each case and taking into account the nature of the disbursement not made, the Bank may either demand compliance with the obligation to disburse the capital and the legal interest payment plus the damages caused by the delay or else proceed to the transfer of the shares on behalf of the defaulting shareholder. In that case, the transfer of the shares will be verified by a member of the official secondary market on which the shares were listed, or otherwise by a notary public. Where appropriate, the original share certificate may then be replaced with a duplicate.

Were the sale to take place, the proceeds (minus expenses) will become the Bank's and be applied to covering the amount of the capital call against the cancelled shares. If there is a surplus, it will be delivered to the holder.

If the sale cannot take place, the shares will be redeemed, and the share capital reduced accordingly. The amounts already paid up will remain on the Company's books.

Should partially paid-up shares be transferred, the acquiring shareholder, together with all the preceding transferors, at the choice of the Board of Directors, will be jointly and severally liable for paying the capital call. The transferor’s' liability will persist for three years after the transfer date.

The prescriptions of this article will not prevent the Bank from using any remedies against the defaulting shareholders that are available under applicable law.

Article 10.                      Multiple ownership

All the shares are indivisible. When, as a result of inheritance, legacy or other title, the ownership of a share was vested in two or more persons, the co-owners, albeit subject to article 24 of these Company Bylaws will have to appoint just one person to exercise the shareholder’s rights. The co-owners will be jointly and severally liable to the Company for any obligations stemming from their status as shareholders. If no agreement is reached on such 

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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appointment, or in the event of silence, the representation will be deemed to be attributed to the holder of the largest number of shares.  Should the holders own the same number of shares, the Bank will make the appointment by drawing lots.

The same rule will apply to other cases of joint ownership of rights over shares.

Article 11.                      Transfer of shares

Company shares will be freely transferable. Transfer will be performed by changes to book entries. Registering the transfer in the accounting record to the name of the purchaser will produce the same effects as exchange of traditional share certificates.

The legitimacy of the transfer necessary to enforce the rights stemming from the shares can be accredited by exhibiting the certificate issued by the Bank or authority in charge of the accounting record on which the shares are registered.

Article 12.                      Robbery, theft, misplacement or destruction of certificates issued from the accounting

  record

If certificates of shareholder status are mislaid, stolen or destroyed, issuance of new certificates to replace the original copies will be subject to the regulations applicable to the system of representing shares by book entries.

Article 13.                      Non-voting shares

The Company may issue shares with no voting rights within the legally established limits. Their holders will be entitled to receive a minimum fixed or variable annual dividend as resolved by the General Meeting and/or the Board of Directors at the time of deciding to issue the shares. Once the minimum dividend has been agreed upon, holders of non-voting shares will be entitled to the same dividend as holders of ordinary shares. If there are distributable earnings, the Company is obliged to agree to distribute the minimum divided mentioned above. If there are no distributable earnings or they are insufficient, the unpaid part of the minimum dividend will accumulate or not, pursuant to the terms agreed by the General Meeting at the time of deciding to issue the shares.

Holders of non-voting shares may exercise their pre-emptive subscription right should the General Meeting and/or the Board of Directors so resolve at the time of issuing shares or share-convertible debentures. Recovery of voting rights must be resolved at the same time.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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Article 13.bis Redeemable shares

The Company may issue shares that are redeemable at the request of the issuing company or of the holders of such shares or of both, for a nominal amount not greater than one quarter of the share capital. The issue resolution will set the conditions for enforcing the redemption right. If the redemption right was attributed exclusively to the issuer, it  may not be enforced until three years have elapsed since the issue.

Redeemable shares must be fully paid up at the time of subscription.

Redemption of redeemable shares must be charged to earnings or to free reserves or be made with the proceeds of a new share issue made under a resolution from the General Meeting or, as the case may be, from the Board of Directors, for the purpose of financing the redemption transaction.  If the redemption of these shares is charged to earnings or to free reserves, the Company must set up a reserve for the amount of the nominal value of the shares redeemed. If the redemption is not charged to earnings or free reserves or made with the issuance of new shares, it may only be carried out under the requirements established for the reduction of share capital by refunding contributions.

Article 13.ter Privileged shares

The Company may issue shares that confer some privilege over ordinary shares under the legally established terms and conditions, complying with the formalities prescribed for amending  the Company Bylaws.

Chapter Three

On Shareholders

Article 14.                      General principles

Shareholders' rights and obligations, their content and scope, limits and conditions, will be governed by the provisions of these Company Bylaws and, where applicable, by current regulations.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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Holding one or more shares will imply that the shareholder accepts these Company Bylaws and the resolutions of the General Meeting and of the Board of Directors. This does not undermine their right to challenge established by law.

Shareholders, and the Company, waiving their own jurisdiction, are expressly subject to the court jurisdiction pertaining to the Company's registered office for any matters that arise between them.

Article 15.                      Rights of shareholders

The following are rights of the Bank's shareholders. They may be exercised within the terms and conditions and with the limitations set out in these Company Bylaws:

	
a)  

	
The right to participate in the distribution of corporate earnings and any net assets resulting from liquidation proportionally to the capital paid up.

	
b)  

	
The right of pre-emptive subscription over issues of new shares or debentures convertible into shares.

	
c)  

	
The right to attend General Meetings, in accordance with article 23 of these Company Bylaws, and to vote at them, except for holders of non-voting shares, and also to challenge corporate resolutions.

	
d)  

	
The right to call for annual or extraordinary General Meetings, under the terms and conditions laid down by law and these Company Bylaws.

	
e)  

	
The right to examine the annual financial statements, the management report, the proposed allocation of profit or losses and the auditors' report, and also, where applicable, the consolidated financial statement and management report, in the manner and within the time limit set out in article 29 of these Company Bylaws.

	
f)  

	
The right to information, pursuant to applicable legislation and these Company Bylaws.

	
g)  

	
The right to obtain certification of the resolutions and the minutes of the General Meetings for shareholders and shareholder proxies who have attended the General Meeting.

	
h)  

	
In general, all rights that may be recognised by legal provisions or by these Company Bylaws.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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Article 16.                      Obligations of shareholders

The obligations of the shareholders are:

	
a)  

	
To submit to the Company Bylaws and to the resolutions of General Meetings, of the Board of Directors and other bodies of governance and administration.

	
b)  

	
To put up the percentage of capital pending disbursement, when so required.

	
c)  

	
To accept the Bank's registered office as determining jurisdiction for the resolution of any differences between the shareholder, as such, and the Company, waiving any right to seek remedy in courts elsewhere.

	
d)  

	
Other obligations laid down by legal provision or by these Company Bylaws.

 

TITLE III

ON CORPORATE BODIES

Article 17.                      Number

The supreme bodies responsible for decision-making, representation, administration, supervision and management of the Company are the General Meeting and the Board of Directors, and within the Board's scope of powers, the Executive Committee and other Board Committees.

Chapter One

On the Shareholders’ General Meeting

Article 18.                      The General Meeting as sovereign body

The General Meeting, legally constituted, is the Company's sovereign body. Its resolutions, when validly adopted, are binding on all shareholders, including shareholders not 

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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attending the General Meeting and those shareholders who voted against resolutions, did not have a vote or abstained from voting.

Article 19.                      Categories of General Meetings

General Meetings of Shareholders may be annual or extraordinary. The annual General Meeting, convened as such, will necessarily meet within the first six months of each year. It will approve, where approval is forthcoming, to the corporate management and the financial statements for the previous year and resolve as to the allocation of profits or losses. It will also be able to resolve on any other matters on the agenda or allowed by law, within the scope of its powers, provided that the General Meeting is attended by the number of shareholders and the percentage of capital required by law or the Company Bylaws in each case.

Any General Meeting other than the one provided for in the previous paragraph will be considered an extraordinary General Meeting.

Article 20.                      Notice of meeting

General Meetings will be called at the initiative of the Company’s Board of Directors whenever it deems this necessary or advisable for the Company's interests, and in any case on the dates or within the periods determined by law and these Bylaws.

If requisitioned by one or several shareholders representing at least five per cent of the share capital, the Board of Directors must call the General Meeting. The requisition must expressly state the matters to be dealt with. In such event, the Board of Directors must call  the General Meeting so that it is held within the legally established period as of the date on which the Board of Directors is served duly attested notice to call it   . The agenda must without fail include the matters to which the request for a Meeting referred.

Article 21.                      Form and content of the notice of meeting

Annual and extraordinary General Meetings must be convened by means of an announcement published in the Official Gazette of the Companies Registry (BORME) and on the Company website, within the notice period required by law, except when legal provisions establish other media for disseminating the announcement.

The announcement will indicate the date, time and place of the meeting at first summons and an agenda, which will contain all the matters that the meeting will cover, and any

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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other mentions that may be required by law. The date on which the General Meeting will be held at second summons may also be stated in the announcement.

At least twenty-four hours must be allowed to elapse between the General Meetings held at first and second summons.

The Board of Directors may consider the technical media and legal bases that enable and guarantee remote attendance at the General Meeting. When convening each General Meeting, it may evaluate the possibility of organising attendance over remote media.

Article 22.                       Place

Notwithstanding what is laid down by law for Universal General Meetings, General Meetings will be held in the municipal district where the Company has its registered office on the date indicated in the notice of meeting, and their sessions may be extended for one or more consecutive days at the proposal of the Board of Directors or at the request of a number of shareholders representing at least one quarter of the capital present at the Meeting. General Meetings may also be transferred to a place other than that indicated in the notice of meeting, within the same municipal district, with the knowledge of those present, in the event of force majeure.

Article 23.                      Right of attendance

Holders of 500 or more shares whose ownership is registered in the respective accounting record at least five days before the day on which the Meeting is scheduled, pursuant to the Securities Exchange Act and other applicable provisions, and who conserveat least that number of shares until the Meeting is held, may attend annual and extraordinary General Meetings.

Holders of fewer shares may group together until they make up at least that number, appointing their representative.

Each shareholder entitled to attend who so requests will be given a card with their name on it, indicating how many shares they hold.

Executives, managers and staff of the Company and its associated undertakings may attend, as may anyone authorised by the Chairman of the General Meeting. The General Meeting reserves the right to revoke that authorisation.

 

	
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	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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Article 24.                      Proxies for the General Meeting

Any shareholder who is entitled to attend maybe represented at the General Meeting by another person, who need not necessarily be a shareholder.

Proxy must be conferred specifically for each General Meeting, using the proxy form established by the Company, which will be recorded on the attendance card. A single shareholder may not be represented at the General Meeting by more than one proxy.

Likewise, authorisation may be conferred by means of remote communications that comply with the requirements laid down by law.

Proxies conferred by a fiduciary or merely apparent shareholder will be rejected.

Article 25.                      Quorum

Annual and extraordinary General Meetings will be validly constituted if the minimum quorum required by prevailing law is present for each of the various matters or  business included on the agenda.

The above notwithstanding, in order to adopt resolutions on replacing the corporate purpose, the transformation, total spin off, winding up the Company and amending this second paragraph of this article, two-thirds of the subscribed voting capital must attend the General Meeting at first summons, or 60% of that capital at second summons.

Article 26.                      Chairman and Secretary of the General Meeting

The Chairman of the General Meeting will be Chairman of the Board of Directors. When this is not possible, it will be the Deputy Chairman. Should there be several Deputy Chairmen, the order established by the Board of Directors itself when appointing them will be followed. Otherwise, age seniority will prevail. When none of the above are available, the General Meeting will be chaired by the director appointed by the Board of Directors for that purpose.  The Secretary of the Board will act as Secretary of the General Meeting, and when this is not possible, the Deputy Secretary. If this is not possible, the Secretary of the General Meeting will be the person the Board of Directors appoints in his/her stead.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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Article 27.                      Attendance list

Once the Panel, which will comprise the Chairman and the Secretary of the General Meeting, is constituted, the attendance list will be drawn up. This will report the number of shareholders in attendance with voting rights, the number attending personally or by proxy, and the percentage of share capital that they all represent. For this task, the Panel may use two scrutineers appointed by the Board of Directors prior to the General Meeting from amongst the shareholders. The attendance list will appear at the beginning of the minutes or will be attached to them as an appendix. It will be signed by the Secretary and countersigned by the Chairman. It may also be drawn up as a software application or hard file, and in either case the appropriate identification tag signed by the Secretary and countersigned by the Chairman will be placed across the sealed cover.

The Chairman of the General Meeting will declare whether or not the requirements for the valid constitution of the Meeting are met, deal with any queries, requests for clarification or complaints that arise regarding the attendance list, authorities conferred and proxies granted: examine, accept or reject new proposals regarding the matters on the agenda, pursuant to prevailing legal provisions, and direct deliberations, systematising, organising, curtailing and cutting off the interventions. In general, the Chairman is empowered to do everything necessary to optimise the way that the General Meeting is run and organised.

Article 28.                      Content of General Meetings

Only matters that are specifically indicated in the notice of meeting may be dealt with at annual and extraordinary General Meetings, except where otherwise laid down by law.

Article 29.                      Shareholders' right to information

Shareholders may request the Board of Directors for information or clarification that they deem necessary regarding the matters on the agenda or send in any written questions they deem pertinent, until the seventh day before the General Meeting is scheduled. Shareholders may also request information or clarification or send in any written questions that they deem pertinent about the publicly available information that the Company has filed with the CNMV (the securities exchange authority) since the previous General Meeting was held.

The directors are obliged to furnish the information requested pursuant to the previous paragraph, in writing, up until the day on which the General Meeting is held.

During the General Meeting, Company shareholders may verbally request any information or clarification that they deem advisable regarding the matters on the agenda. If it is 

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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not possible to satisfy the shareholder’s right to information there and then, the directors will be obliged to furnish the information requested, in writing and within seven days after the end of the General Meeting.

Directors will be obliged to furnish the information requested under the provisions of this article, except when the Chairman deems that making the information requested public may be detrimental to the Company’s interests, in the manner determined in the General Meeting Regulations.

Information may not be refused when the request is supported by shareholders representing at least one quarter of the capital.

Article 30.                      Powers of the General Meeting

The General Meeting has the following powers:

	
a.  

	
To amend the Company Bylaws and to confirm and/or rectify the Board of Directors' interpretation of them.

	
b.  

	
To determine the number of seats on the Board of Directors, appoint, re-elect and dismiss Board members, and ratify or revoke any provisional appointment made by the Board of Directors.

	
c.  

	
To increase or reduce the share capital, conferring authority, where appropriate, on the Board of Directors to indicate, within a maximum period, pursuant to law, the date or dates of such increase or reduction. The Board of Directors may enforce all or part of this authority or even refrain from enforcing it in consideration of market conditions, the situation of the Company itself or of any fact or event of social or economic importance that may make this advisable. It will report on its decision at the first General Meeting held when the period set for its enforcement has elapsed.

	
d.  

	
To confer authority on the Board of Directors to increase share capital as laid down by law. When the General Meeting confers such authority, it may also grant powers to exclude the right of pre-emptive subscription over the share issues referred to in the authority, pursuant to the terms and the requirements laid down by law.

	
e.  

	
To confer authority on the Board of Directors to amend the nominal value of shares representing the share capital, re-wording article 5 of the Company Bylaws.

	
f.  

	
To issue debentures, bonds or other securities recognising or creating debt, whether senior, mortgage-backed, exchangeable or convertible, with fixed or variable interest rates, that

 

	
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	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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may be subscribed in cash or in kind, or under any other condition regarding their yield, encumbrance, modality or characteristic. The General Meeting may also authorise the Board of Directors to make said issues. It may also confer authority on the Board of Directors to exclude or limit the right of pre-emptive subscription over convertible debenture issues pursuant to the terms and the requirements laid down by law. In the event of convertible debenture issues, the General Meeting will approve the conditions and modalities of the conversion and the increase of the share capital by the amount necessary for the conversion, as laid down by law.

	
g.  

	
To examine and approve the annual financial statements, the proposed allocation of profits or losses and the corporate management of each corresponding year, and the consolidated financial statements, where applicable.

	
h.  

	
To appoint, re-elect and dismiss the auditors.

	
i.  

	
To approve the transformation, merger, spin off, global assignment of assets and liabilities, dissolution and offshoring of the registered office.

	
j.  

	
To pronounce on any other matter reserved for the General Meeting by legal provision or by the Company Bylaws.

	
k.  

	
To approve its Regulations and any later amendments, pursuant to the Board of Director's proposals.

Article 31.                      Adoption of resolutions

At annual and/or extraordinary General Meetings, resolutions will be adopted with the majorities required by law and by these Company Bylaws.

Each voting share will confer the right to one vote on the holder present or represented at the General Meeting.

Shareholders who are not up to date in the payment of capital calls will not be entitled to vote, but only with regard to the shares whose  capital calls have not been paid. Nor will holders of shares without voting rights.

Shareholders may grant voting proxy or vote on proposals regarding the agenda items at any category of General Meeting by postal correspondence, e-mail or any other remote means of communication, provided that the voter's identity is duly guaranteed.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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The Board of Directors may draw up suitable rules, means and procedures to instrument the voting process and the granting of proxy over remote media, complying with the requirements laid down by law.

Article 32.                      Minutes of General Meetings

The Secretary of the General Meeting will take the minutes, which will be entered in the Minute Book. They may be approved by the General Meeting itself at the end of the session, and failing that, within fifteen days, by the Chairman of the General Meeting and two scrutineers among the shareholders, one representing the majority and the other the minority.

The resolutions may be implemented as of the date on which the minutes are approved in which they are recorded.

The minutes will be signed by the Secretary and countersigned by the Chairman.

Any certificates issued in connection with the minutes, once approved, will be signed by the Secretary and, failing that, by the Deputy Secretary of the Board of Directors, and countersigned by the Chairman or, as the case may be, by the Deputy Chairman of the Board of Directors.

The Board of Directors may request the presence of a Notary Public to take minutes of the proceedings.

Chapter Two

On the Board of Directors

Article 33.                      Nature

The Board of Directors will be the natural body for the Company's representation, administration, management and oversight.

Article 34.                       Number and election

The Board of Directors will comprise a minimum of five members, and a maximum of fifteen, elected by the General Meeting, except as provided under article 37 of these Company Bylaws.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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The General Meeting of Shareholders will determine the exact number of directors, within the stipulated limits.

Article 35.                       Requirements for directorship

Membership of the Board of Directors requires directors not to be in any of the circumstances of conflict of interest or prohibition laid down by law.

Article 36.                       Term of office and renewal

The term of office for members of the Board of Directors will be three years. Directors may be re-elected one or more times for periods of the same maximum length.

Article 37.                       Vacancies

If, during the term for which the directors were appointed, seats should fall vacant, the Board of Directors may nominate a shareholder people to fill them. Their appointment will be put to the first General Meeting held after the nomination.

Article 38.                       Chairman and Secretary of the Board

The Board of Directors will appoint, from amongst its members, a chairman to chair the Board of Directors, and one or several deputy chairmen of the Board of Directors. It will also appoint, from amongst its members, the chairman and deputy chairman for the committees referred to in chapter four below.

Should it be impossible for the Chairman to perform his/her duties, or in his/her absence, they will be performed by the Deputy Chairman. Should there be several Deputy Chairmen, the order established by the Board of Directors on appointment will be followed. Otherwise, age seniority will prevail.

In the absence of a Deputy Chairman, the meeting will be chaired on that occasion by the director appointed for such purpose by the Board of Directors.

The Board of Directors will appoint a secretary from amongst its members, unless it resolves to commend such tasks to a non-board-member. It may also appoint a deputy 

 

	
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	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
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secretary, who will stand in for the Secretary in the event of absence or impossibility. Otherwise, the Board of Directors will determine the substitute in each case.

Article 39.                       Powers of the Chairman

The Chairman will, in all events, be the Company's highest-ranking representative. In the performance of his/her office, he/she will have the following powers, in addition to those attributed by the law or these Company Bylaws:

	
a)  

	
To call General Meetings, following a Board of Directors resolution, and to chair them.

	
b)  

	
To direct the discussions and deliberations of the General Meeting, arranging the order of shareholders' interventions, and establishing the duration of each, in order to enable shareholders to take the floor and expedite proceedings.

	
c)  

	
To call and chair the Board of Directors, the Executive Committee and other Board Committees and Commissions of which he/she is a member.

	
d)  

	
To draft the meeting agendas for the Board of Directors, the Executive Committee and Board Committees and Commissions, and draw-up proposed resolutions to be submitted to them.

	
e)  

	
To direct the discussions and deliberations of the Board of Directors, the Executive Committee and Committees and Commissions.

	
f)  

	
To enforce the resolutions of the Board of Directors, the Executive Committee and the other Committees and Commissions. To such purpose, he/she will have the broadest powers of attorney, whatever authority is conferred on other directors by the corresponding corporate body to such effect.

 

Article 40.                       Board meetings and notice of meetings

The Board of Directors will meet whenever the Chairman or the Executive Committee deem fit, or at the request of at least one quarter of the directors.

The Board of Directors will be called by the Chairman and, where this is not possible, by the Deputy Chairman in his/her stead. Should these persons be absent or unable to perform their duties for any reason, the Board of Directors will be called by the eldest director.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

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Article 41.                       Quorum and adoption of resolutions

The Board of Directors will be validly constituted when half its members plus one are present or represented.

Resolutions will be adopted by an absolute majority of votes cast in person or by proxy, except as provided under articles 45 and 49 of these Company Bylaws.

Article 42.                       Proxy for Board meetings

Non-attending directors may grant proxy to another director without any limitation.

Article 43.                       Powers of the Board

The Board of Directors will have the broadest powers of attorney, administration, management and supervision. It is empowered to perform all manner of acts and enter into contracts relating to ownership and administration. In particular, its powers will include but are in no way limited to the following:

	
1.  

	
To carry out all transactions comprising the corporate purpose or help make its achievement possible, pursuant to article 3 of these Company Bylaws.

	
2.  

	
To resolve to call the General Meeting, notwithstanding the provisions of article 20 and 39.a) of these Company Bylaws.

	
3.  

	
To draft and propose the following for General Meeting approval: the annual financial statements, the management report and the proposed allocation of profits or losses and also, where applicable, the consolidated financial statements and management report for each financial year.

	
4.  

	
To implement the resolutions of the General Meeting and, where applicable and pursuant to legal provisions, appoint the persons who should grant the relevant public and private documents.

	
5.  

	
To interpret the Company Bylaws and fill any omissions, especially with regard to the article on corporate purpose, reporting the resolutions adopted to the General Meeting, where applicable.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

	20

 

 

	
6.  

	
To resolve on the creation, cancellation, relocation, transfer and other acts and transactions related to the Company's branch, regional and representation offices in and outside Spain.

	
7.  

	
To adopt the Company's internal regulations with powers to amend them.

	
8.  

	
To establish the administrative expenses and establish or agree on any ancillary services it deems necessary or advisable.

	
9.  

	
To resolve on the distribution of interim dividends to the shareholders, before the respective financial year has ended and before the annual financial statements are adopted, pursuant to prevailing legislation.

	
10.  

	
To appoint and dismiss Bank employees, establishing their salaries and perquisites.

	
11.  

	
To determine the general conditions for discount, lending and guarantee deposit, and to approve any risk transactions it deems advisable and deal with any issues that arise in the Bank's business.

	
12.  

	
To represent the Bank before the state, regional, provincial, municipal authorities and bodies, publicly-owned entities, syndicates, public-law corporations, companies and individuals, and before ordinary and special courts and tribunals. It may file and defend suits, enforce rights, lodge claims and appeals of any kind to which the Bank is entitled, and abandon them when it deems fit.

	
13.  

	
To acquire, possess, divest, mortgage and encumber all categories of real estate assets, property rights of any type and with respect to such assets and rights, perform any acts and enter into any civil, mercantile or administrative contracts without exception. These may even include constituting, amending and cancelling mortgages and other property rights, as well as assigning, trading and transferring the Company's assets and liabilities.

	
14.  

	
To acquire, divest, swap, transfer, encumber, subscribe, offer any categories of moveable goods, securities, shares, debentures, make public bids to sell or acquire securities, and holdings in all kinds of companies and enterprises.

	
15.  

	
To constitute companies, associations, foundations, subscribing shares and/or holdings, putting up all categories of goods, and entering into contracts for mergers and cooperation of enterprises and/or businesses.

	
16.  

	
To give and receive loans and/or credit. These may be senior or secured with any kind of collateral, including mortgage.

	
17.  

	
To guarantee and/or secure Company or third-party obligations of all kinds.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

	21

 

 

	
18.  

	
To reach a settlement regarding all kinds of goods and rights.

	
19.  

	
To delegate all or any powers that are delegable pursuant to prevailing law, and to grant and revoke all kinds of general and special powers of attorney, with or without powers of substitution.

Article 44.                       Minutes of Board meetings

Once the minutes of the Board proceedings are adopted, they will be signed by the Secretary and countersigned by whoever chaired the meeting.

Any certified copies of  the minutes, once approved, will be signed by the Secretary and, failing that, by the Deputy Secretary of the Board of Directors, and countersigned by the Chairman or, as the case may be, by the Deputy Chairman.

Chapter Three

On the Executive Committee

Article 45.                       Creation and composition

The Board of Directors may appoint an Executive Committee, with the favourable vote of two-thirds of its members and the corresponding entry in the Companies Registry. This will be composed of the directors that the Board nominates, whose positions will be renewed in the time, manner and number that the Board of Directors may decide.

The Executive Committee will be chaired by the Chairman, who will be a member of it by virtue of his/her office. Failing that,, it will be chaired by the Deputy Chairman or Deputy Chairmen of the Board of Directors who sit on the committee, following the order established under Article 38 of these Company Bylaws, and otherwise by the Executive Committee member that the Executive Committee determines. The Board of Directors will appoint a secretary, who may be a non-board member. In his/her absence, he/she will be replaced by the person appointed by those attending the respective meeting.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

	22

Article 46.                       Meeting and powers

The Executive Committee will meet as often as its Chairman or the person acting in his/her stead considers appropriate or at the request of a majority of its members. It will consider matters falling within the responsibility of the Board which the Board, pursuant to prevailing legislation or these Company Bylaws, resolves to entrust to it. These may include but are not limited to the following powers:

To formulate and propose general policy guidelines, the criteria for setting targets and preparing programmes, examining the proposals put to it in this regard, comparing and evaluating the actions and results of any direct or indirect activity carried out by the Entity; to determine the volume of investment in each individual activity;  to approve or reject transactions, determining methods and conditions; to arrange inspections and internal or external audits of all the Entity's areas of operation; and in general to exercise the authority conferred on it by the Board of Directors.

Article 47.                       Quorum and adoption of resolutions

The rules of article 41 of these Company Bylaws concerning the constitution of the Board of Directors and the adoption of its resolutions will be applicable to the Executive Committee.

Minutes and certified copies of the resolutions adopted will be subject to article 44 of these Bylaws.

 

Chapter Four

On Board Committees

 

To improve performance of its duties, the Board of Directors may set up the committees it deems necessary to assist it on matters within the scope of its powers.

Article 48.                      The Audit Committee

For the supervision both of the financial statements and of the manner in which the control function is exercised, the Board of Directors will have an Audit Committee, which will have the necessary powers and resources to perform its duties.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

	23

The Audit Committee will comprise a minimum of four non-executive directors appointed by the Board of Directors, who have the dedication, capacity and expertise required to pursue their duties. The Board will appoint one of them to chair the Committee, who must be replaced every four years and may be re-elected to the post when one year has elapsed since he/she stood down. At least one of the Audit Committee members must be an independent director and be appointed taking into account his/her knowledge and expertise in accounting, auditing or in both.

The maximum number of members on the Committee will be the number established in article 34 of these Company Bylaws. There will always be a majority of non-executive directors.

The Committee will have its own set of specific regulations, approved by the Board of Directors. These will determine its duties and establish the procedures to enable it to comply with its mission. In all cases, the arrangements for calling meetings, the quorum and the adoption and documentation of resolutions will be governed by the provisions of these Company Bylaws with respect to the Board of Directors.

The Audit Committee will have the powers established by law, by the Board Regulations and by its own regulations.

 

Chapter Five

On the Chief Operating Officer and General Management

 

Article 49.                       The Chief Operating Officer

The Board of Directors may, with the favourable vote of two-thirds of its members, appoint from amongst its members, one or more chief operating officers, with such powers as it considers appropriate and as may be delegated in accordance with the legal provisions and these Company Bylaws.

Article 50.                       General Management

The Board of Directors can set up one or several general management departments and nominate General Managers to operate them with the powers and functions that the Board of Directors may determine.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

	24

Article 50.bis

Directors who have executive functions in the Company attributed to them, whatever the nature of their legal relationship with it, will be entitled to receive remuneration for providing these services. This will consist of: a fixed amount, in keeping with the services and responsibilities of the post; a variable supplement and any reward schemes established in general for the senior management of the Bank. These may comprise delivery of shares or share options or remuneration indexed to the share price, subject to any requirements established by prevailing legislation. Their remuneration also includes benefits, such as the relevant retirement and insurance schemes and social security. In the event of severance not due to breach of duties, these directors will be entitled to compensation.

TITLE IV

ON THE FINANCIAL YEAR AND THE ALLOCATION OF PROFIT OR LOSSES

Article 51.                      Duration of the financial year

The accounting periods of the Company will be one year, coinciding with the calendar year, ending on 31st December.

Article 52.                      Annual financial statements

The annual financial statements and other accounting documents that must be submitted to the General Meeting for approval will be prepared in accordance with the chart of accounts established by prevailing provisions applicable to banking institutions.

The annual financial statements, the management report, the proposal for allocation of profit or losses, the auditors' report and, where applicable, the consolidated financial statements and management report, will be given the publicity that is determined at any time by prevailing provisions and these Company Bylaws.

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

	25

 

Article 53.                      Allocation of profit or losses

The General Meeting will resolve on the allocation of profit or losses from the year, in accordance with the balance sheet approved.

The Company's net earnings will be distributed in the following order:

	
a)  

	
Allocation to insurance-benefit reserves and funds required by prevailing legislation and, where applicable, to the minimum dividend mentioned under article 13 of these Company Bylaws.

	
b)  

	
A minimum of four per cent of the paid-up capital, allocated to shareholder dividends.

	
c)  

	
Four per cent allocated to remuneration for the services of the Board of Directors and of the Executive Committee, except where the Board resolves to reduce that percentage in years when it deems this appropriate. The resulting figure will be made available to the Board of Directors to distribute amongst its members at the time and in the form and proportion that the Board determines. It may be paid in cash or, if the General Meeting so resolves pursuant to the law, by delivery of shares, share options or remuneration indexed to the share price.

This amount may only be taken out after the shareholders' right to the minimum four per cent dividend mentioned above has been duly recognised.

Article 53.bis

The General Meeting may resolve to pay out dividends (either charged against the year's earnings or against unrestricted reserves) and/or a share premium, in kind, provided that the goods or securities being distributed are standardised and sufficiently liquid or liquidatable. This condition will be presumed to have been met when securities are listed or are going to be listed for trading on a regulated market.

The previous paragraph will also be applicable to the return of contributions in the event of a reduction in share capital.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.

  

  

  

	
Banco Bilbao Vizcaya Argentaria, S.A. Company Bylaws 

	26

 

TITLE V

DISSOLUTION AND LIQUIDATION OF THE COMPANY

Article 54.                      Grounds of dissolution

The Bank will be dissolved under the circumstances laid down by prevailing legislation.

Article 55.                       Appointment of liquidators

Once a resolution has been adopted to dissolve the Company, the General Meeting will appoint the liquidators to wind it up. In addition to the powers expressly vested in them by prevailing law, they shall have any other powers the General Meeting resolves to confer upon them. The General Meeting will determine the rules the liquidators must follow in apportioning the Company's assets and will approve the financial statements of the liquidation until final settlement is reached.

Article 56.                      Liquidation

Once a resolution has been adopted to dissolve the Company, the liquidation period will commence. Although the Company will retain its legal status, the directors and other proxies will cease to have powers of attorney to enter into new contracts and contract new obligations, and the liquidators will take over the functions attributed to them by law.

The liquidation of the Company will be done in compliance with prevailing legal provisions.

Article 57.                       Distribution of Company assets

Until all the obligations are discharged, the Company assets may not be delivered to the shareholders unless a sum equivalent to the amount of the outstanding obligations has been reserved and placed in escrow for the creditors.

 

	
WARNING:

	The English version is a translation of the original in Spanish for information purposes only. In the event of discrepancy, the Spanish original will prevail.Exhibit 4.3

 

 

AMENDED AND RESTATED

RESTRICTED SHARE AND UNIT PLAN OF BBVA COMPASS BANCSHARES, INC.

-------------------

As Adopted Effective November 15, 2011

PREAMBLE. This Amended and Restated Restricted Share and Unit Plan of BBVA Compass Bancshares, Inc., formerly known as 2007 Restricted Share and Unit Plan of Compass Bancshares, Inc. (the “Plan”), is amended and restated to remove certain historical provisions no longer applicable to the ongoing operation of the Plan, provide the flexibility of cash settlement of restricted share unit awards, and to enlarge the number of shares available under the Plan.

SECTION 1. Purpose of the Plan; Definitions. The purpose of this Plan is to provide incentives to certain officers and key employees of Banco Bilbao Vizcaya Argentaria, S.A., a bank organized and existing under the Laws of Spain (the “Company”), or its direct and indirect subsidiaries, including Compass (as defined herein), as may be operating in the United States (including its territories) from time to time, so that, among other things, such officers and employees are associated with the growth and success of the Company and its respective subsidiaries.

For purposes of the Plan, the following terms shall be defined as set forth below:

(a)           “ADS” means an American Depositary Share representing one Share (which ratio may be changed from time to time) as evidenced by one American Depositary Receipt.

(b)           “Award” means any Restricted Shares or Restricted Share Units granted under the Plan.

(c)           “Award Agreement” means any written agreement, contract or other instrument or document evidencing an Award granted under the Plan.

(d)           “Committee” means the Administrative Committee (formerly the Incentive Compensation Committee) for this Plan, which shall consist of three or more directors or officers of Compass or any affiliate of Compass or other individuals appointed by the board of directors, or an appropriate committee of the board of directors, of Compass.

(e)           “Compass” means BBVA Compass Bancshares, Inc., an Alabama corporation, and any successor entity thereto.

(f)           “Eligible Employee” means any officer or employee of the Company, or of any entity that is a direct or indirect subsidiary of the Company, operating in the United States (including its territories), who is in a position in which his or her decisions and/or actions impact the performance of the Company.

(g)           “Participant” means an Eligible Employee designated to be granted an Award.

 

  

  

  

 

(h)           “Restricted Shares” means an Award of ADSs granted to a Participant pursuant to and subject to the terms and conditions set forth in this Plan.

(i)           “Restricted Share Units” means an Award of a unit representing an obligation of Compass to deliver one ADS for each such unit granted to a Participant pursuant to and subject to the terms and conditions set forth in this Plan.

(j)           “Share” means one ordinary share of the Company with a nominal value of 49 Euro cents.

SECTION 2. Administration.

(a)           The Plan shall be administered by the Committee. The Committee shall have full and final authority in its discretion (i) to interpret the provisions of the Plan (and any Award Agreement) and to decide all questions of fact arising in its application, (ii) to designate Participants, (iii) to determine the Participants to whom Awards shall be made under the Plan, (iv) to determine the amount, size, terms and conditions of each such Award, (v) to determine and establish additional terms and conditions not inconsistent with the Plan for any Award granted to a Participant in connection with the Plan, (vi) to determine the time when Awards will be granted, (vii) to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall, from time to time, deem advisable and (viii) to make all other determinations necessary or advisable for the administration of the Plan.

(b)           A majority of the Committee shall constitute a quorum, and the action of a majority of members of the Committee present at any meeting at which a quorum is present shall be the act of the Committee. The Committee may also act by unanimous written consent. Any decision made, or action taken, by the Committee arising out of or in connection with the interpretation and administration of the Plan shall be final, conclusive and nonappeallable.

(c)           Neither the Committee nor any member thereof shall be liable for any act, omission, interpretation, construction or determination made in connection with the Plan in good faith, and the members of the Committee may be entitled to indemnification and reimbursement by Compass in respect of any claim, loss, damage or expense (including attorneys’ fees) arising therefrom to the fullest extent permitted by law and under any director’s and officers’ liability insurance that may be in effect from time to time. In addition, no member of the Committee and no director, officer or employee of Compass or its subsidiaries and affiliates shall be liable for any act, or failure to act hereunder, by any other member or other director, officer or employee of Compass or its subsidiaries and affiliates or by any agent to whom duties in connection with the administration of this Plan have been delegated or for any act or failure to act by such member or such director, officer or employee, in all events except in circumstances involving such member’s or such director’s, officer’s or employee’s bad faith, gross negligence, intentional fraud or violation of a statute.

(d)           The Committee may, in its sole discretion, delegate any of its powers to grant Awards under the Plan to any officer of Compass deemed appropriate by the Committee; provided, however, that no officer to whom the power to grant Awards under the Plan has been delegated shall have the power to grant Awards under the Plan to himself or herself.

SECTION 3. Eligibility; Participants. Any Eligible Employee shall be eligible to be designated a Participant.

 

  

  

  

 

SECTION 4. Awards Under the Plan. Awards by the Committee under the Plan may be in the form of Restricted Shares or Restricted Share Units only, provided that no Award shall be made under the Plan unless such Award shall comply with all applicable laws, including without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed.

SECTION 5. ADSs Subject to Plan. The total number of ADSs reserved and available for distribution under the Plan shall be 4,621,615.  Such ADSs shall consist of ADSs purchased or to be purchased from time to time in open-market or in private transactions by or on behalf of Compass.  Any ADSs subject to an Award which are forfeited by a Participant shall be added back to the total number of ADSs reserved and available for distribution under the Plan. In the event of any change in the outstanding number of Shares of the Company underlying the ADSs by reason of a dividend or distribution in Shares, a Share split, recapitalization, merger, consolidation, split-up, combination, exchange of shares or otherwise, or in the case of any change in the ratio of ADSs to Shares, the board of directors of Compass or the Committee shall adjust the number of ADSs which may be issued under the Plan and the board of directors of Compass or the Committee shall provide for an equitable adjustment of any ADSs issuable pursuant to Awards outstanding under the Plan.

SECTION 6. Effective Date.  The Plan initially became effective as of October 22, 2007.

SECTION 7. Restricted Share Awards.

(a)           Administration. The Committee shall determine the Eligible Employees to whom and the time or times at which grants of Restricted Shares will be made, the number of Restricted Shares to be awarded, the period of time during which the transfer of such Restricted Shares is restricted and all other terms and conditions of such Awards, which terms and conditions shall not be inconsistent with the terms and conditions of the Plan. The Committee may also condition the grant of Restricted Shares, and the terms and conditions applicable to such Restricted Shares, upon the attainment of specified performance goals or such other criteria as the Committee may determine, in its sole discretion. The terms and conditions made applicable to Restricted Shares need not be the same with respect to each Participant.

(b)           Awards and Certificates. Each Award of Restricted Shares shall be evidenced by an Award Agreement (a “Restricted Share Award Agreement”) in a form that is not inconsistent with the Plan and that the Committee may from time to time approve.

(i)           The Committee may, but need not, require as a condition of the effectiveness of an Award of Restricted Shares that the Award be affirmatively accepted by the Participant’s executing a Restricted Share Award Agreement within a designated period (not to exceed ninety (90) days) after the award date.

(ii)           Restricted Shares granted under the Plan may be evidenced in such manner as the Committee shall determine.  If certificates representing Restricted Shares are registered in the name of a Participant, such certificates shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Shares, and, unless otherwise determined by the Committee, Compass or its designee shall retain physical possession of the certificate and the Participant shall deliver a stock power to Compass, endorsed in blank, relating to the Restricted Shares covered by such Award.

 

  

  

  

 

(c)           Restrictions and Conditions. The Restricted Shares awarded pursuant to this Plan shall be subject to the following restrictions and conditions:

(i)           Subject to the provisions of this Plan and the Restricted Share Award Agreements, from the date of grant through such period as may be set by the Committee (the “Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge or assign Restricted Shares awarded under the Plan. Within these limits, the Committee may, in its sole discretion, provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions in whole or in part based on performance and/or such other factors as the Committee may determine, in its sole discretion.

(ii)           Except as provided in subsection (c)(i) of this Section 7, to the extent practicable, the Participant shall have, with respect to the Restricted Shares, all of the rights of a holder of ADSs as defined by that certain depository agreement between the ADS depository and the Company, including the right to vote and to receive any dividends. Dividends paid in Shares or Shares received in connection with a Share split with respect to Restricted Shares shall be subject to the same restrictions as on such Restricted Shares.

(iii)           Subject to the provisions of the Restricted Share Award Agreement and this Section 7, upon termination of employment for any reason during the Restriction Period, all Restricted Shares still subject to restriction shall be forfeited by the Participant.   Notwithstanding anything to the contrary herein, however:

(A) If the Participant dies while employed, then any unvested Awards made under this Plan (whether Restricted Shares and/or Restricted Share Units) shall vest and all restrictions shall lapse immediately.

(B) If the Participant’s employment terminates while he or she is Disabled, as defined hereafter, except for Cause, as defined hereafter, then any unvested Awards made under this Plan (whether Restricted Shares and/or Restricted Share Units)  shall vest and all restrictions shall lapse immediately.  As an express condition of the applicability of this subparagraph (B), Participant must agree to cooperate with Compass in determining whether Participant is Disabled, including without limitation providing documentation from health care providers and submitting to medical examinations upon request by Compass.  For purposes of this Plan, a Participant shall be considered “Disabled” if Compass determines that the Participant is disabled as defined in the Compass 401(k) Plan, or any successor plan, as such plan may be amended from time to time, or according to such other reasonable standard that Compass may apply, in its sole discretion. For purposes of this Plan, “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 Compass or its affiliates, (ix) willful dereliction of duties or disregard of lawful instructions or directions of the officers or directors of Compass or its affiliates relating to a material matter, or (x) willful violation of any applicable code of conduct maintained by Compass or its affiliates.

(C) If termination of the Participant’s employment is a Severance Plan Termination, as defined hereafter, then any unvested Awards made under this Plan (whether Restricted Shares and/or Restricted Share Units)  shall vest and all restrictions shall lapse immediately.  A “Severance Plan Termination” is a termination within the meaning of the Compass Severance Pay Plan (the “Severance Pay Plan”), as the Severance Pay Plan may exist from time to time (including any 

 

  

  

  

 

amendment to, modification of, addition to, deletion from, or replacement of the Severance Pay Plan), that results in eligibility for benefits under the Severance Pay Plan; provided that, if the termination occurs after a change in control, directly or indirectly, of Compass and if the Participant would have been entitled to benefits under the Severance Pay Plan as it last existed before such change in control, then, for purposes of this Plan only, the termination shall be deemed a Severance Plan Termination even though no benefits may be due under the Severance Pay Plan.  Notwithstanding anything to the contrary herein, this provision is not intended to, and does not, constitute a guarantee or promise that the Severance Pay Plan (in its current or any future form) will be continued.

(iv)           The Committee may, in its sole discretion, waive in whole or in part any or all restrictions with respect to such Participant’s Restricted Shares.

SECTION 8. Restricted Share Unit Awards.

(a)           Administration. The Committee shall determine the Eligible Employees to whom and the time or times at which grants of Restricted Share Units will be made, the number of Restricted Share Units to be awarded, the period of time during which the Restricted Share Units will become vested and all other terms and conditions of such Awards, which terms and conditions shall not be inconsistent with the terms and conditions of the Plan. The Committee may also condition the grant of Restricted Share Units, and the terms and conditions applicable to such Restricted Share Units, upon the attainment of specified performance goals or such other criteria as the Committee may determine, in its sole discretion. The terms and conditions made applicable to Restricted Share Units need not be the same with respect to each Participant.

(b)           Awards. Each Award of Restricted Share Units shall be evidenced by an Award Agreement (a “Restricted Share Unit Award Agreement”) in a form that is not inconsistent with the Plan and that the Committee may from time to time approve.  The Committee may, but need not, require as a condition of the effectiveness of an Award of Restricted Share Units that the Award be affirmatively accepted by the Participant’s executing a Restricted Share Unit Award Agreement within a designated period (not to exceed ninety (90) days) after the award date.

(c)           Restrictions and Conditions. The Restricted Share Units awarded pursuant to this Plan shall be subject to the following restrictions and conditions:

(i)           Subject to the provisions of this Plan and the Restricted Share Unit Award Agreements, from the date of grant through such vesting period as may be set by the Committee (the “Unit Restriction Period”), the Participant shall not have any legal ownership or any other rights relating to the ADSs that are the subject of the Restricted Share Units.  The participant shall not be entitled to any dividend or have any voting rights or any other rights as a shareholder of the Company until and unless the ADSs that are the subject of the Restricted Share Units become vested and are transferred to the Participant.

(ii)           Upon vesting of the Restricted Share Units, the ADSs (which may themselves be Restricted Shares) which are the subject of the vested Restricted Share Units shall be transferred to the Participant as soon as administratively practicable following the date that such Restricted Share Units vest but in no event later than March 15th of the year following the year in which such Restricted Share Units become vested; provided, however, a Restricted Share Unit Award Agreement may provide for a cash settlement of the Restricted Share Units, in which case, upon vesting of such Restricted Share Units, a 

 

  

  

  

 

cash amount equal to the number of vested Restricted Share Units times the closing price for the Company’s ADSs as listed on the New York Stock Exchange (NYSE) on the date in which the Restricted Share Units vest (or if the NYSE is not open for trading on such date, then the immediately preceding date on which the NYSE was last open for trading), less any required tax withholdings, shall be paid to the Participant as soon as administratively practicable following the date that such Restricted Share Units vest but in no event later than March 15th of the year following the year in which such Restricted Share Units become vested.

(iii)           Subject to the provisions of the Restricted Share Unit Award Agreement and this Section 8, upon termination of employment for any reason during the Unit Restriction Period, all Restricted Share Units which remain unvested on the date of such termination of employment shall be forfeited by the Participant.  Notwithstanding anything to the contrary herein, however:

(A) If the Participant dies while employed, then any unvested Awards made under this Plan (whether Restricted Shares and/or Restricted Share Units) shall vest and all restrictions shall lapse immediately.

(B) If the Participant’s employment terminates while he or she is Disabled, as defined hereafter, except for Cause, as defined hereafter, then any unvested Awards made under this Plan (whether Restricted Shares and/or Restricted Share Units)  shall vest and all restrictions shall lapse immediately.  As an express condition of the applicability of this subparagraph (B), Participant must agree to cooperate with Compass in determining whether Participant is Disabled, including without limitation providing documentation from health care providers and submitting to medical examinations upon request by Compass.  For purposes of this Plan, a Participant shall be considered “Disabled” if Compass determines that the Participant is disabled as defined in the Compass 401(k) Plan, or any successor plan, as such plan may be amended from time to time, or according to such other reasonable standard that Compass may apply, in its sole discretion. For purposes of this Plan, “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 Compass or its affiliates, (ix) willful dereliction of duties or disregard of lawful instructions or directions of the officers or directors of Compass or its affiliates relating to a material matter, or (x) willful violation of any applicable code of conduct maintained by Compass or its affiliates.

(C) If termination of the Participant’s employment is a Severance Plan Termination, as defined hereafter, then any unvested Awards made under this Plan (whether Restricted Shares and/or Restricted Share Units)  shall vest and all restrictions shall lapse immediately.  A “Severance Plan Termination” is a termination within the meaning of the Compass Severance Pay Plan (the “Severance Pay Plan”), as the Severance Pay Plan may exist from time to time (including any amendment to, modification of, addition to, deletion from, or replacement of the Severance Pay Plan), that results in eligibility for benefits under the Severance Pay Plan; provided that, if the termination occurs after a change in control, directly or indirectly, of Compass and if the Participant would have been entitled to benefits under the Severance Pay Plan as it last existed before such change in control, then, for purposes of this Plan only, the termination shall be deemed a Severance Plan Termination even though no benefits may be due under the Severance Pay Plan.  Notwithstanding anything to the contrary herein, this provision is not intended to, and does not, constitute a guarantee or promise that the Severance Pay Plan (in its current or any future form) will be continued.

 

  

  

  

 

(iv)           The Committee may, in its sole discretion, accelerate in whole or in part any Unit Restriction Period and waive any and all restrictions or conditions, in whole or in part, with respect to such Participant’s Restricted Share Units.

SECTION 9. General Provisions.

(a)           Governmental or Other Regulations. Each Award under the Plan shall be subject to the requirement that if, at any time, the Committee shall determine that (i) the listing, registration or qualification of the ADSs subject or related thereto upon any securities exchange or under any state, federal or foreign law, (ii) the consent or approval of any government regulatory authority, or (iii) an agreement by the recipient of an Award with respect to the disposition of the ADSs, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the delivery of ADSs thereunder, such Award may not be consummated in whole or in part unless such listing, registration, qualification, consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Committee. As a condition to the grant of an Award under the Plan, the Participant shall agree, and each such Participant shall be deemed to have agreed by virtue of his or her acceptance of an Award or any benefit or value derived from an Award, to execute any documents, to make any representations, to effect any restrictions on transferability and to take any action which in the good faith belief of the Committee is required by any applicable law, ruling or regulation.

(b)           No Additional Rights. Nothing in the Plan, any Award, or in any agreement entered into pursuant to the Plan shall confer upon any Participant the right to continue in the employment of Compass or any of its subsidiaries or affect any right which Compass or any of its subsidiaries may have to terminate the employment of the Participant.

(c)           Withholding. Whenever Compass is required to transfer ADSs under the Plan, Compass or any subsidiary of Compass shall have the right to require the recipient to remit to Compass or such subsidiary, or provide indemnification satisfactory to Compass or such subsidiary for, an amount sufficient to satisfy any foreign, federal, state or local withholding tax requirements prior to the transfer of such ADSs. In the discretion of the Committee, Compass or any subsidiary may allow a Participant to cause any such withholding obligation to be satisfied by electing to (i) sell ADSs in the market having a fair market value equal to the amount of any required tax withholdings or (ii) have Compass withhold ADSs otherwise available for delivery to the Participant; provided that such ADSs shall have a fair market value (as determined by the Committee in its sole discretion) on the date the tax is to be determined in an amount equal to the minimum statutory total tax which could be imposed on the transaction.

(d)           Non-Assignability. Unless otherwise determined by the Committee and reflected in the applicable Award Agreement, no Award under the Plan shall be assignable or transferable by a Participant except by will or by the laws of descent and distribution. A transferee of an Award shall have only those rights that the Participant would have had had the Award not been transferred. In addition, if the Committee allows an Award to be transferable or assignable, such Award shall be subject to such additional terms and conditions as the Committee deems appropriate.

(e)           Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan for incentive compensation. Nothing set forth herein shall give any such Participant any rights that are greater than those of a general creditor of Compass. In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver ADSs 

 

  

  

  

 

with respect to Awards hereunder; provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan.

(f)           Non-Uniform Determination. The Committee’s determinations under the Plan (including, without limitation, determinations of the Eligible Employees to receive Awards, the form, amount and timing of such Awards, the terms and provisions of Awards and the Award Agreements) need not be uniform and may be made by it selectively among Eligible Employees who receive, or are eligible to receive, Awards under the Plan, whether or not such Eligible Employees are similarly situated.

(g)           Amendment or Termination. The Committee or the board of directors of Compass may amend, modify, suspend or terminate the Plan at any time. The termination or any modification, suspension or amendment of the Plan shall not adversely affect a Participant's rights under an Award previously granted without the consent of such Participant. The Committee or the board of directors of Compass may amend the terms of any Award theretofore granted, prospectively or retroactively, but no such amendment shall impair the rights of any Participant or permitted transferee without his or her consent.

(h)           No Restriction on Right of Company to Effect Corporate Changes. Nothing in the Plan shall affect the right or power of the Company or Compass or their shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s or Compass’ capital structure or its business, or any merger or consolidation of the Company or Compass, or the dissolution or liquidation of the Company or Compass, or any sale or transfer of all or any part of its assets or business of the Company or Compass, or any other act or proceeding, whether of a similar character or otherwise.

(i)           Award Agreement. The prospective recipient of an Award under the Plan shall execute an Award Agreement evidencing the Award and deliver a fully executed copy thereof to Compass if the Committee determines to impose such a requirement as a condition to the effectiveness of an Award.

(j)           Construction of Plan. The validity, interpretation, and administration of the Plan and of any rules, regulations, determinations, or decisions made thereunder, and the rights of any and all Eligible Employees or Participants having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with the laws of the State of Alabama.

(k)           Section 409A of the Internal Revenue Code. The Plan shall be administered, operated, and interpreted such that all Awards granted hereunder are not considered deferred compensation subject to Section 409A of the United States Internal Revenue Code of 1986, as amended (the “Code”) and the Committee shall have the discretion to modify or amend any Award granted hereunder and any Award Agreement (and may do so retroactively); provided that any such modification or amendment is necessary to cause such Award to be exempt from Section 409A of the Code and is not materially prejudicial to the Company, Compass and the affected Participant.

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