Document:

Colonial BancGroup 2007 Stock Plan for Directors

 Exhibit 10.1 
  
 THE COLONIAL BANCGROUP, INC. 
 2007 STOCK PLAN FOR DIRECTORS 
  

  
 1. Purposes of Plan. The purposes of the Plan are
to attract and retain well-qualified persons for service as Directors of the Company and its Subsidiaries and to provide incentives to such persons through the award of Shares of Common Stock of the Company by (i) payment of all or a portion of
Directors’ fees in Common Stock, and (ii) Restricted Stock Awards, as deemed appropriate by the Compensation Committee of the Company and as allowed by law. 
  
 2. Definitions. For purposes hereof, the following words and phrases shall have the meanings
indicated: 
  
 (a) “Award” means
a grant under this Plan of Restricted Stock. 
  
 (b) “Award Agreement” means an agreement entered into by the Company and a Director setting forth the terms and provisions applicable to Awards granted under this Plan. 
  
 (c) “BancGroup Director” means any director
of The Colonial BancGroup, Inc. 
  
 (d)
“Bank Director” means any director of Colonial Bank, N.A., a subsidiary of The Colonial BancGroup, Inc. 
  
 (e) “Board” means the board of directors of the Company or any Subsidiary. 
  
 (f) “Change in Control” means (i) the
occurrence of a transaction with respect to which either a notice or application must be filed with the Federal Reserve Board under the provisions of 12 C.F.R. § 225.41, Code of Federal Regulations, or any successor thereto (concerning the
acquisition of control of a bank or bank holding company), or approval must be obtained under 12 C.F.R. § 225.11, Code of Federal Regulations, or any successor thereto (concerning acquisition by a bank holding company of a bank or bank holding
company), and as a result of which more than 50% of the outstanding shares of the Company, or any successor thereof, are owned or controlled by any person or entity, or group acting in concert, which, prior to such transaction, owned or controlled
less than 50% of the shares of the Company, (ii) individuals who were directors of the Company immediately prior to a Control Transaction (as defined below) shall cease within one year of such Control Transaction, to constitute a majority of
the Board of Directors of the Company, or (iii) the Company is merged or consolidated with another corporation and the Company is not the surviving corporation or survives as a subsidiary of another corporation, or the Company sells or
otherwise disposes of substantially all its assets. “Control Transaction” shall be (i) any tender offer for or acquisition of shares of the Company, (ii) any merger, consolidation, or sale of substantially all the assets of the
Company, (iii) any contested election of directors of the Company, or (iv) any combination of the foregoing which results in a change in voting power sufficient to elect a majority of the Board of Directors of the Company. 
  
 (g) “Closing Price” means the closing price
of the Common Stock of the Company as reported by the New York Stock Exchange (“NYSE”) or such other market value as the Board of Directors of BancGroup shall determine if the Common Stock ceases to be quoted on the NYSE. 
  
 (h) “Committee” means the Compensation
Committee of the Company. 
  
 (i) “Common
Stock” means Shares of Common Stock, $2.50 par value per Share, of the Company. 
  
 (j) “Company” means The Colonial BancGroup, Inc. 
  
 (k) “Director” means a BancGroup Director, Bank Director, or Regional Director, as
applicable under the context. 
  
 (l)
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 
  

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 (m) “Fair Market Value,” for purposes of Section 3(b), shall be
determined on the basis of the closing sale price on the principal securities exchange on which the Shares are traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was reported. In determining the
value of shares for purposes of Section 3(a), value shall be determined as specifically provided in Section 3(a). 
  
 (n) “Grant Date” means the date the Compensation Committee approves a Restricted Stock Award. 
  
 (o) “Grant Price” means the closing price
of Colonial BancGroup Inc (CNB) stock on the date a Restricted Stock Award is granted. 
  
 (p) “Meeting” means a regular or special meeting of the Board. 
  
 (q) “Period of Restriction” means the
period during which the transfer of Shares of Restricted Stock is limited in some way (based on the passage of time or the occurrence of other events as determined by the Committee, at its discretion), and the Shares of Restricted Stock are subject
to a substantial risk of forfeiture. 
  
 (r)
“Plan” means The Colonial BancGroup, Inc. 2007 Stock Plan for Directors, as set forth herein and as the same may subsequently be amended or modified. 
  

 (s) “Plan Year” means the first day of the calendar year through the last day of the same calendar year.

  
 (t) “Regional Director”
means any person who serves as a regional or local director with respect to Colonial Bank, N.A. 
  
 (u) “Regular Fees” means that amount of the fees payable to a Director in cash, and without regard to attendance at
Meetings, during a Plan Year. 
  
 (v)
“Restricted Stock” means Common Stock of the Company issued under this Plan to a Director with regard to which restrictions apply as provided herein. 
  

 (w) “Restricted Stock Award” means an award of Common Stock made under the Plan not received or vested,
but shall become free and clear from all restrictions and encumbrances upon the expiration of the Term or Tenure of such Director as set forth in the Award Agreement evidencing such Award. 
  
 (x) “Shares” means shares of Common Stock
of the Company as defined herein. 
  
 (y)
“Section 409A” means Internal Revenue Code Section 409A and the regulations thereunder. 
  
 (z) “Subsidiary” means a subsidiary of the Company, or any subsidiary of a Subsidiary. 
  
 (aa) “Supplemental Fees” means fees paid to
a Director for attendance at Board meetings, special Meetings of the Board, or otherwise, and which are paid only on an ad hoc basis. 
  
 (bb) “Term” means a term of one year, commencing on January of each year, in the case of Bank Directors and Regional
Directors, and one year of a BancGroup Director’s three year term commencing with the annual meeting of shareholders of the Company. 
  
 (cc) “1933 Act” means the Securities Act of 1933. 
  
 Whenever appropriate, words used herein in the singular may be read as the plural and the plural may be read as the
singular. Masculine pronouns used herein shall be deemed to refer both to women and men. 
  
 3. Election or Award of Restricted Shares of Common Stock In Lieu of Cash for Director Fees. 
  
 (a) Subject to the restrictions and risks of forfeiture contained in Section 6 below, each Director may elect to receive that number of whole Shares
of Common Stock, rounded to the nearest whole number, determined by dividing the Regular Fees the Director is to receive during the Plan Year by the average of the closing prices of Common Stock for the period as described in A, B or C below, as
applicable. A Director must make the election 

  

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to receive a percentage of his or her Director’s fees in stock prior to the beginning of the Plan Year. If the Director makes an election and does not
change or revoke the election prior to the beginning of a subsequent Plan Year, the election shall remain in effect. An election is irrevocable for the Plan Year. For the purposes of this Plan, “closing price” shall mean the closing price
of the Common Stock as reported by the New York Stock Exchange (“NYSE”) or such other market value as the Board of Directors of BancGroup shall determine if the Common Stock ceases to be quoted on the NYSE. 
  
 When any Director is elected for a Term commencing after the first day of the
Plan Year or ending prior to the last day of the Plan Year, the Regular Fees used in calculating the amount subject to this Section 3(a) shall be reduced to reflect the number of Meetings expected to be held during such Plan Year, or the number
of months remaining in such Plan Year, as may be appropriate, treating the Meeting on the day of his election as the first Meeting of the Term and the Meeting on the day Directors are elected for a succeeding Term as the last Meeting during the
Term. In the event the Regular Fees shall be increased, Directors then in office shall be awarded additional Shares of Common Stock based upon the average of the closing prices of the Common Stock for the applicable period described in A, B or C
below, treating only the amount of such increase as the Regular Fees used in the calculation of the additional amount under this Section 3(a). In the event the Regular Fees shall be decreased, the number of Shares of Common Stock subject to
this Section 3(a) for Directors then in office shall be decreased based upon such average of the closing prices of the Common Stock prior to their election, treating the amount of such decrease as the amount by which the number of Shares to be
awarded shall be decreased. 
  
 A Director may also elect to
receive Common Stock at the end of the Plan Year based upon the amount of Supplemental Fees such Director would have been entitled to receive during such Plan Year, subject to the restrictions and risks of forfeiture contained in Section 6
below, provided such Director has elected to receive Common Stock in lieu of cash payment prior to the beginning of the Plan Year. The number of Shares to which the Director is entitled shall be calculated at the end of the Plan Year and shall be
equal to that number of whole Shares of Common Stock, rounded to the nearest whole number, determined by dividing the Supplemental Fees the Director would have received during the Plan Year by the average of the closing prices of the Common Stock
for the period described in A, B or C below, as applicable. 
  
 With regard to the election to receive Common Stock in lieu of cash compensation as provided in this Section 3(a): 
  
 A. For BancGroup Directors, a minimum of 25% of all fees (Regular Fees and Supplemental Fees) earned during each quarter must be paid in
stock. The Director must make an annual election prior to the beginning of the Plan Year to receive 25%, 40%, 50%, 60%, 75% 85% or 100% of his or her fees in stock. The value of stock issued will be the five day average of BancGroup stock closing
prices for a five day period with the last day being the last business day of the calendar quarter in which services were rendered. Stock earned during the Plan Year will be accrued and remain restricted through the end of the Plan Year and will be
paid on the last day of the month following the end of the Plan Year. 
  
 B. For Bank Directors, a minimum of 25% of all fees (Regular Fees and Supplemental Fees) earned during each quarter must be paid in stock. The Director must make an annual election prior to the beginning of the plan
year to receive 25%, 40%, 50%, 60%, 75%, 85% or 100% of his or her fees in stock. The value of stock issued will be the five day average of BancGroup stock closing prices for a five day period with the last day being the last business day of the
calendar year immediately preceding the Plan Year in which services were rendered. Stock earned during the Plan Year will be accrued and remain restricted through the end of the Plan Year and will be paid on the last day of the month following the
end of the Plan Year. 
  
 C. Regional Directors
will make an annual election to receive fees in cash or stock. The value of stock issued will be the five day average of BancGroup stock closing prices for a five day period with the last day being the last business day of the calendar year
immediately preceding the Plan Year in which services were rendered. Stock earned during the Plan Year will be accrued and will remain restricted through the end of the Plan Year and will be paid on the last day of the month following the end of the
Plan Year. 
  

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 (b) In addition to the elections of Directors to receive payment of fees in stock, the Company may, from
time to time, grant Shares of Restricted Stock to Directors in such amounts as the Committee shall determine. Each Restricted Stock grant shall be evidenced by a Restricted Stock Award Agreement that shall specify the Period(s) of Restriction, the
number of Shares of Restricted Stock granted, and such other provisions as the Committee shall determine. All Shares of Restricted Stock granted pursuant to this Section 3(b) shall be granted at Fair Market Value (non-discounted). Shares of
Restricted Stock granted pursuant to this paragraph may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated until the end of the applicable Period of Restriction established by the Committee and specified in the
Restricted Stock Award Agreement, or upon earlier satisfaction of any other conditions, as specified by the Committee in its sole discretion and set forth in the Restricted Stock Award Agreement. All rights with respect to the Restricted Stock
granted under this Plan shall be available during the Director’s lifetime only to such Director. 
  
 The Committee may impose such other conditions and/or restrictions on any Shares of Restricted Stock granted pursuant to the Plan as it may deem
advisable including, without limitation, a requirement that Directors pay a stipulated purchase price for each Share of Restricted Stock, and/or restrictions under applicable federal or state securities laws. At the discretion of the Committee, the
Company may retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied. Except as otherwise provided herein,
Shares of Restricted Stock granted under the Plan shall become freely transferable by the Director after the last day of the applicable Period of Restriction. During the Period of Restriction, Directors holding Shares of Restricted Stock granted
hereunder may exercise full voting rights with respect to those Shares. During the Period of Restriction, Directors holding Shares of Restricted Stock granted hereunder may be credited with regular cash dividends paid with respect to the underlying
Shares while they are so held. Such dividends may be paid currently, accrued as contingent cash obligations, or converted into additional Shares of Restricted Stock, upon such terms as the Committee may establish. The Committee may apply any
restrictions to the dividends that the Committee deems appropriate. Without limiting the generality of the preceding sentence, if the dividend constitutes a derivative security or an equity security pursuant to Rule 16(a) under the Exchange Act,
such dividend shall be subject to a vesting period equal to the remaining vesting period of the Shares of Restricted Stock with respect to which the dividend is paid. Each Restricted Stock Award Agreement shall set forth the extent to which the
Director shall have the right to retain unvested Restricted Shares following termination of his or her position as a Director with the Company in all other circumstances. Such provisions shall be determined in the sole discretion of the Committee,
shall be included in the Award Agreement entered into with each Director, need not be uniform among all Shares of Restricted Stock issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of service. 

  
 (c) Notwithstanding any other provision of this Plan except
for adjustments for stock splits, stock dividends, and other events specified herein, no Director may elect to receive or be awarded more than 5,000 Shares of Common Stock for any Plan Year as defined in Section 2(bb). 
  
 4. Terms and Conditions of Award. A Restricted
Stock Award shall be evidenced by a written Award Agreement in appropriate form between the Company and the Director. Any Director who fails to enter into a valid Award Agreement with the Company shall be ineligible to receive a grant of Restricted
Stock as provided herein. Such Award Agreement shall be subject to the provisions of the Plan. The Award of any Common Stock to a Director under the Plan shall not entitle such Director to, or disqualify him from, a further Award of Common Stock
under the Plan at a later date. Directors who serve as Directors of the Company and of one or more Subsidiaries are eligible for Awards of Common Stock in all such capacities. 
  
 Shares of Common Stock awarded and not vested under the Plan shall be awarded in the name of the Director only. All
BancGroup Directors must execute a Special Power of Attorney allowing the Company to file Form 4 and Form 5’s on their behalf. No more than 5,000 Shares may be awarded to and/or elected by any Director in a particular Plan Year as determined on
a combined basis under Sections 3(a) and (b). 
  

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 5. Securities Laws and Securities Exchange Restrictions on Common Stock Elected or Awarded Under
the Plan. The Company shall have no obligation to issue Shares of Common Stock hereunder until such time as registration of such Shares has become effective with the Securities and Exchange Commission and with the securities authority of any
state or other jurisdiction in which such registration is required. In the case of all Shares of Common Stock elected or awarded under the Plan (unless such Shares have been registered under the 1933 Act), the election form and/or written Award
Agreement evidencing the Award of such Shares shall contain a representation that such Shares are being acquired not with a view to resale or distribution and will not be sold or otherwise transferred by the Director to whom the election is provided
or Award is made, except in compliance with the 1933 Act and rules and regulations thereunder. The election and/or Award Agreement may contain any other restrictions on the Shares of Common Stock that the Company deems advisable, including, without
limitation, any restrictions necessary to meet the requirements of the NYSE or quotation system of a national securities association (including the NYSE) under which Shares of Common Stock are then listed or traded, and any Blue Sky or state
securities laws applicable to the Shares of Common Stock. Share certificates issued in connection with elections or Awards of Common Stock under the Plan shall bear such legends and statements as the Company shall deem advisable to assure compliance
with federal and state securities laws and regulations. 
  
 6.
Deferred Vesting of Common Stock. A Director to whom a Restricted Stock Award has been made under the Plan shall not receive or be vested in the Common Stock awarded by reason of such Award, but shall receive and become
vested in such Common Stock only upon the expiration of the Term of such Director as set forth in the written Award Agreement evidencing such Award, or upon such Director’s earlier death or removal without cause. Upon the occurrence of such
event, payment shall be made to the Director in accordance with the Award on the last day of the month following the end of the Plan Year in which the event occurred. A Director who will receive all or a portion of his or her Director’s fees in
the form of Common Stock as provided in Section 3(a) shall become vested in such Common Stock as of the last day of the Plan Year or upon such Director’s earlier death or removal without cause. Upon the occurrence of such event, payment
shall be made to the Director on the last day of the month following the end of the Plan Year. 
  
 Any Shares of Common Stock awarded under the Plan pursuant to Section 3(b) or paid in lieu of cash compensation in accordance with Section 3(a) which are not vested (a) shall not be sold, transferred,
assigned, pledged, hypothecated, anticipated, alienated, encumbered or charged, whether voluntarily, involuntarily or by operation of law, and (b) shall be forfeited to the Company in the event the Director to whom such Shares were awarded
ceases to be a Director for any reason other than death or removal without cause. Certificates for all Shares of Common Stock awarded under the Plan shall remain in the custody of the Company or its designated agent until the Shares represented
thereby become vested. A Restricted Stock Award, if granted, will vest five years from the date of grant but will remain restricted until the Director resigns from service with BancGroup or due to death, failure to be nominated for another term by
the Corporate governance committee or if nominated for another term and not approved by shareholder vote. Notwithstanding the foregoing, any restricted Shares issued under this Plan shall immediately vest upon the occurrence of a (i) Change in
Control of the Company and (ii) upon dissolution of the Board of Directors of the Company. 
  
 With regard to a Director’s receipt of Shares of Common Stock in lieu of cash payment of Director’s fees pursuant to Section 3(a) above,
delivery of such Shares shall be made on the last day of the month following the end of the Plan Year. As a result, the Company intends that the arrangement described in Section 3(a) shall be exempt from coverage of Internal Revenue Code
Section 409A as a short-term deferral. Further, with regard to the Award of Restricted Stock pursuant to Section 3(b), the Company intends the arrangement to be exempt from coverage of Internal Revenue Code Section 409A as an exempted
restricted stock program. 
  
 7. Amendment and
Termination of the Plan. The Plan may be amended at any time by the Board of Directors of the Company; provided, however, that approval of the Company’s shareholders shall be obtained for any amendment which (a) materially
increases the benefits accruing to Directors under the Plan; (b) materially increases the number of Shares that may be awarded under the Plan, or (c) materially modifies the requirements 

  

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as to eligibility for participation in the Plan. The Plan will continue until discontinued or terminated by the Board. Notwithstanding the foregoing,
however, no amendment, discontinuance, or termination of the Plan shall, without the consent of any persons affected thereby, alter or impair any rights or obligations created prior to such amendment, discontinuance, or termination. 
  
 8. Shareholder Rights. Directors to whom Shares
of Common Stock have been awarded in lieu of Regular Fees under Section 3(a) of the Plan shall have all rights of shareholders to vote such Shares and to receive dividends thereon with respect to Shares of Common Stock so awarded, even though
the Director’s interest in such Shares has not vested under Section 6 hereof, provided that dividends shall be paid and voting rights granted only on a quarterly basis as to that number of Shares a Director would be entitled to receive for
the quarter calculated by dividing the number of Shares awarded for the Plan Year and divided by the number of quarters in the Plan Year. If Shares of Common Stock, as a result of a stock split or stock dividend or combination of Shares or any other
change, or exchange for other securities, by reclassification, reorganization, redesignation, merger, consolidation, recapitalization or otherwise, shall be increased or decreased or changed into or exchanged for a different number or kind of Shares
or other securities of the Company or of another corporation, the number of Shares of Common Stock shall be appropriately adjusted to reflect such action. If any such adjustment shall result in a fractional Share, such fractions shall be
disregarded. 
  
 9. No Enlargement of
Rights. An Award under the Plan or right to receive payment in Common Stock in lieu of cash compensation shall not confer upon any Director any right to continue in office and shall not restrict or interfere with any rights to effect
his removal from office at any time in accordance with law and the regulations of the Company. 
  
 10. Withholding of Taxes. The Company may require, as a condition to the election to receive or Award of Common Stock under the Plan or to the delivery of the certificates for Shares when such Shares
become vested, that the recipient pay to the Company or to the appropriate Subsidiary, in cash, any federal, state or local taxes of any kind required by law to be withheld with respect to the award or delivery to the Director of Shares of Common
Stock. The Company, or the appropriate Subsidiary, to the extent permitted or required by law, shall have the right to deduct from any payment of any kind otherwise due to such Director any federal, state or local taxes of any kind required by law
to be withheld with respect to the Award or delivery of Common Stock under the Plan. 
  
 11. Authorization of Shares. Subject to adjustment as provided herein, the number of Shares available for grants under this Plan is 500,000. Neither (a) Shares that are issued in respect of awards
that the Company or a Subsidiary either assumes in, or substitutes for awards that were issued by another party (or its predecessor) in a merger consolidation or acquisition or other transaction involving the Company or a subsidiary nor
(b) Awards that are settled in the form of cash, shall be counted against the forgoing number of Shares reserved for issuance under the Plan. Any Shares authorized for use under this Plan which are not used during the existence of the Plan
shall be deregistered. In the event of any change in corporate capitalization, such as a stock split, or a corporate transaction, such as a merger, consolidation, separation, split-off or other distribution of stock or property of the Company, any
reorganization or partial or complete liquidation of the Company, such adjustment shall be made in the number and class of Shares which may be delivered under this Section as may be determined to be appropriate and equitable by the Committee to
prevent dilution or enlargement of rights; provided, however, that the number of Shares subject to any Award shall always be a whole number. If any Award granted under this Plan is cancelled, rescinded, terminates, expires, or lapses for any reason,
any Shares subject to such Award again shall be available for the grant of an Award under the Plan. 
  
 12. Expenses. All expenses and costs in connection with the adoption and administration of the Plan shall be borne by the
Company. 
  
 13. Notice. Any notice or
other communication required or permitted hereunder shall be in writing and shall be deemed given when personally delivered to the addressee or deposited in the United States mail, postage prepaid and properly addressed to the addressee’s last
known address. 
  

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 14. Internal Revenue Code Section 409A. This Plan is intended to be
exempt from Section 409A requirements due to (i) the exemption for “short term deferrals” with regard to the payment of Director’s fees provided in Section 3(a) above, and (ii) the exemption for certain restricted
stock plans with regard to the Restricted Stock provided in Section 3(b) above, pursuant to the terms of Section 409A. The Plan shall be amended as determined to be necessary by the Company to remain in compliance with the exemptions from
Section 409A or otherwise for legal compliance. 
  
 15.
Date. The effective date of this Plan is January 1, 2007. Notwithstanding the foregoing, with regard to individuals who are BancGroup Directors on January 1, 2007, any election pursuant to Section 3(a)
above shall be effective January 29, 2007. 
  

			
	THE COLONIAL BANCGROUP, INC.
		
	By:	 	 /s/    Robert E. Lowder        

	Its:	 	 Chairman, CEO and President

  

			
	ATTEST:
	
	 /s/    David B. Byrne, Jr.      

	Its:	 	 EVP, Secretary and General Counsel

  

 7Colonial BancGroup Management Incentive Plan

 
Exhibit 10.2 
  
 THE COLONIAL
BANCGROUP, INC. 
 MANAGEMENT INCENTIVE PLAN 
  
 1. DEFINITIONS 
  
 1.1. “BancGroup” means The Colonial BancGroup, Inc., a corporation organized and existing under the laws of the State of Delaware, with its
principal place of business in Montgomery, Alabama, and any successor thereto, whether by merger, consolidation, sale of assets, liquidation, or otherwise. 
  
 1.2. “Board” means the Board of Directors of BancGroup. 
  

1.3. “Code” means the Internal Revenue Code of 1986, as amended. 
  
 1.4. “Committee” means the Personnel and Compensation Committee of the Board. 
  
 1.5. “Compensation” means the base salary paid to Participants,
excluding overtime, commissions, awards from other incentive programs, BancGroup contributions to fringe benefit programs, and other “non-salary” income. 
  
 1.6. “Executive Officer” means those officers of BancGroup within the meaning of Rule 16a-1(f) under the
Securities and Exchange Act of 1934, as amended. 
  
 1.7.
“Participant” means an Executive Officer who has been designated for participation in the Plan by the Committee in accordance with Section 3 of the Plan and who has commenced participation in the Plan. 
  
 1.8. “Performance Agreement” means the written notice described in
Section 3.2 of the Plan, executed by an Executive Officer of BancGroup and transmitted on behalf of the Committee by BancGroup to each Participant, setting forth the terms and conditions of each Participant’s participation in the Plan.

  
 1.9. “Plan” means the Management Incentive Plan of
BancGroup established by this document, as amended from time to time, and any related Performance Agreements. 
  
 1.10. “Plan Year” means any performance period which begins on January 1 of a particular year and ends on December 31 of that same year.

  
 2. PURPOSE 
  
 The Plan is intended to promote and encourage excellence in the performance
of responsibilities by the Executive Officers, to maximize BancGroup’s soundness, profitability and growth, and to provide an incentive opportunity that will permit those members of management who are positioned to make significant
contributions to BancGroup’s success to receive appropriate total cash compensation. 
  
 3. PARTICIPATION 
  
 3.1.
Selection to Participate. The Committee, prior to the close of each Plan Year, may designate in writing one or more Executive Officers as persons eligible to participate in the Plan during the next succeeding Plan Year. The Committee shall
solicit the recommendation of the Chairman with respect to the participation of an Executive Officer, other than the Chairman, in the Plan. Participation in the Plan is conditional; participation in one Plan Year does not guarantee participation in
successive years. 
  

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	 	3.2.	 	Designation of Award and Performance Goals. 

  
         3.2.1. Not later than ninety (90) days after the commencement of each Plan Year, the Committee shall
approve and establish, and communicate in writing to each Participant in the Plan for such Plan Year, the terms and conditions of each such Participant’s participation in the Plan for such Plan Year, including the award that each such
Participant will be eligible to earn during such Plan Year (which shall be expressed as a percentage of each such Participant’s Compensation as of the first day of such Plan Year and which shall specify a minimum, maximum, and target award for
each such Participant) and the performance goals that must be achieved in order for each such Participant to earn such award; provided, however, that in no event shall the Committee grant any Participant under the Plan an award that could result in
such Participant earning an amount under the Plan greater than $3,000,000 with respect to any Plan Year. 
  
         3.2.2. The Committee shall establish corporate performance goals of one or more of the following business
criteria: (1) earnings per share, (2) net income, (3) asset quality, (4) shareholder return, (5) stock price, (6) return on assets, (7) return on equity, (8) return on revenue, (9) return on capital, (10) changes in working capital, (11) EBITDA
(earnings before interest, taxes, depreciation and amortization), (12) EBIT (earnings before interest and taxes), (13) cash flow, (14) net profit before tax, (15) gross profit, (16) operating profit, (17) book value, (18) market capitalization or
(19) price-earnings ratio. Performance goals established by the Committee shall be objective performance goals within the meaning of section 162(m) of the Code and Treasury Regulations promulgated thereunder. Furthermore, and notwithstanding any
other provision of the Plan to the contrary, once the Committee has established performance goals for a participant, the Committee shall have no discretion to (i) increase the amount of compensation that would otherwise be due upon the attainment of
the goals, or (ii) alter the goals for the Plan Year to which they relate. The Committee may, however, decrease the resulting payout in its discretion. 
  
         3.2.3. In establishing the award and performance goals of Participants in the Plan, the Committee shall
consider the Participant’s level of responsibility with BancGroup and the Participant’s potential contribution to the performance goals of BancGroup. In establishing the award and performance goals of any Participant other than the
Chairman of BancGroup, the Committee shall solicit the recommendation of BancGroup’s Chairman. 
  
         3.2.4. The Committee shall assign weightings to indicate the relative importance of each business criteria
in determining incentive awards earned under the Plan. The sum of weightings assigned to any Participant must equal 100%. These weightings may vary from Plan Year to Plan Year, and, except with respect to the Chairman, shall be based on
recommendations by the Chairman subject to approval by the Committee. The Committee shall assign such weightings not later than ninety (90) days after the commencement of each Plan Year, and such weightings shall remain in effect for the remainder
of the Plan Year. 
  
 4. PAYMENT OF AWARDS 
  
 4.1. Calculation of Award Payments. Within sixty (60) days following
the close of each Plan Year in which a Participant is participating in the Plan, the Committee shall compare the terms and conditions of the award of each Participant and the performance goals assigned to each such Participant. Following such
determination, and prior to the payment of awards pursuant to Section 4.2 below, the Committee shall certify in writing to each Participant and to the Board whether each Participant has met the terms and conditions of the award for the Plan Year in
question. 
  
 4.2. Payment of Award Amounts. All awards
determined to have been earned pursuant to Section 4.1 of the Plan shall be payable in cash, as soon as administratively possible following the certification described in Section 4.1 above, but in no event later than seventy-five (75) days following
the close of the Plan Year to which such award related. 
  

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 4.3. Effect of Termination of Employment on Payment of Award. 
  
         4.3.1. If a Participant
terminates employment during a Plan Year for any reason other than retirement, disability, or death, no award will be payable under the Plan. 
  
         4.3.2. If a Participant’s employment terminates during a Plan Year as a result of retirement,
disability, or death, the Participant, his beneficiary, or his estate will receive a pro-rata portion of the incentive award determined as of the end of the Plan Year. The proration will be based on the Participant’s year-to-date Compensation
for the Plan Year and the achieved levels of performance as of the end of the Plan Year. The pro-rated award will be paid at the same time as awards are paid to active Participants. 
  
         4.3.3. If a Participant’s employment is terminated during a Plan Year
for willful dishonesty or gross misconduct, no award will be payable. If a Participant’s employment is terminated other than for willful dishonesty or gross misconduct, the Participant will receive a pro-rata portion of the incentive award
determined as of the end of the Plan Year. The proration will be based on the Participant’s year-to-date Compensation for the Plan Year and the achieved levels of performance as of the end of the Plan Year. The pro-rated award will be paid at
the same time as awards are paid to active Participants. 
  
 5.
ADMINISTRATION 
  
 5.1. The Committee, as Plan administrator,
is authorized to administer the Plan, subject to and in accordance with the provisions set forth herein, and shall have all powers necessary and appropriate to enable it to properly administer the Plan, including but not limited to the power to:

  
         5.1.1.
approve the establishment and range of corporate goals, recommendations regarding participation, the amount of individual award payments, and all matters relating to the day-to-day operation of the Plan; 
  
         5.1.2. construe and interpret
the Plan, establish rules and regulations, delegate such administrative responsibilities as it deems proper, and to perform all other acts it deems necessary to carry out the intent and purpose of the Plan; 
  
         5.1.3. suspend or terminate,
in whole or in part, or amend the terms of the Plan, at any time, without the need for obtaining approval of the shareholders, by an instrument in writing; provided, however, that shareholder approval shall be required for any amendment that changes
the material terms of the Plan applicable to any Participant; 
  
         5.1.4. cancel the participation of any person who conducts himself in a manner which the Committee, in the exercise of reasonable discretion, determines to be inimical to the best interests of
BancGroup; and 
  
         5.1.5. correct any defect, supply any omission, or reconcile any inconsistency in the Plan, in the manner and to the extent it shall deem necessary. 
  
 5.2. The Committee’s determination under the Plan of the persons to
participate and receive awards and the terms and conditions of such awards need not be uniformly applicable to all Participants, but may be made by the Committee on a selective basis among persons who receive or are eligible to receive awards under
the Plan, whether or not such persons are similarly situated. The Committee shall have final approval authority over the payment of all awards under this Plan, whether individually or collectively. 
  

 3 

 6. PLAN FUNDING AND ACCRUALS OF AWARDS 
  
 The Plan is unfunded and awards hereunder shall be paid from general
corporate funds. 
  
 7. NEW PARTICIPANTS, PROMOTIONS, OR
TRANSFERS 
  
 All participation in the Plan is subject to
approval by the Committee. Newly hired or promoted employees who enter positions which are considered to be eligible for participation in the Plan normally will, upon approval by the Committee, enter the Plan on January 1 next following the date of
hire or promotion. The Chairman, however, subject to approval by the Committee, may authorize immediate participation upon hire or promotion. 
  
 8. MISCELLANEOUS 
  
 8.1. Construction of Plan. Except as provided under federal law, the provisions of the Plan shall be governed by and construed in accordance with
the laws of the State of Delaware, and shall be binding on and inure to the benefit of any successor or successors to BancGroup. 
  
 8.2. Right to Employment. Participation in this Plan shall not be construed as giving any Participant the right to be retained in the employ of
BancGroup. Further, BancGroup expressly reserves the right at any time to dismiss any Participant with or without cause, such dismissal to be free from any liability or any claim under the Plan, except as provided herein. 
  
 8.3. Nonalienation of Benefit. No benefit under the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void. 
  
 8.4. Withholding of Taxes. BancGroup shall have the right to deduct from any award payable under this Plan all applicable withholding and
employment taxes at such times as they are due. 
  
 8.5. Plan
Expenses. Any expenses incurred in the administration of this Plan shall be borne by BancGroup. 
  
 8.6. Entire Agreement. This Plan, as completed and executed by BancGroup, the Performance Agreements, and all amendments thereto, will constitute
the entire agreement between BancGroup and Participants regarding the Plan. 
  
 8.7. Captions. The captions or headings in this Plan are made for convenience and general reference only and shall not be construed to describe, define, or limit the scope or intent of the provisions of this
Plan. 
  
 8.8. Number and Gender. The masculine pronoun
used shall include the feminine pronoun and the singular number shall include the plural number unless the context of the Plan requires otherwise. 
  

 4 

 IN WITNESS WHEREOF, The Colonial BancGroup, Inc. has caused this Management Incentive Plan to be
executed as of the 19th day of March, 2007. 
  

			
	THE COLONIAL BANCGROUP, INC.
		
	By:	 	 /s/    Simuel Sippial, Jr.        

	Its:	 	 Compensation Committee Chairman

  

			
	ATTEST:
	
	 /s/    David B. Byrne, Jr.

	Its:	 	 EVP, Secretary and General Counsel

  

 5

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