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FORM OF
  ULTIMATE ELECTRONICS, INC.
  INDEMNIFICATION AGREEMENT    
  

        This Indemnification Agreement ("Agreement") is effective as of this            day
of                        ,            , by and between Ultimate
Electronics, Inc., a Delaware corporation (the "Company"), and                        ("Indemnitee"). 

        WHEREAS,
the Company and Indemnitee recognize the continued difficulty in obtaining liability insurance for its directors, officers, employees, agents and fiduciaries, the significant
increases in the cost of such insurance and the general reductions in the coverage of such insurance; 

        WHEREAS,
the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors, officers, employees, agents and fiduciaries to
expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely limited; 

        WHEREAS,
Indemnitee does not regard the current protection available as adequate under the present circumstances, and the Indemnitee and other directors, officers, employees, agents and
fiduciaries of the Company may not be willing to continue to serve in such capacities without additional protection; 

        WHEREAS,
the Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company and, in part, in order to induce Indemnitee to
continue to provide services to the Company, and the Company wishes to provide for the indemnification and advancing of expenses to Indemnitee to the maximum extent permitted by law; and 

        WHEREAS,
in view of the considerations set forth above, the Company desires that Indemnitee shall be indemnified by the Company as set forth herein. 

        NOW,
THEREFORE, the Company and Indemnitee hereby agree as follows: 

        1.    Indemnification.

        (a)  Indemnification of Expenses. The Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee
was or is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, any threatened, pending or completed action, suit,
proceeding or alternative dispute resolution mechanism, or any hearing, inquiry or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit,
proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, investigative or other (hereinafter a "Claim") by reason of (or arising in part out of) any event or
occurrence related to the fact that Indemnitee is or was a director, officer, employee, agent or fiduciary of the Company, or any subsidiary of the Company, or is or was serving at the request of the
Company as a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other enterprise, or by reason of any action or inaction on the part of
Indemnitee while serving in such capacity (hereinafter an "Indemnifiable Event") against any and all expenses (including attorneys' fees and all other costs, expenses and obligations incurred in
connection with investigating, defending, being a witness in or participant in, any such action, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry or investigation),
judgments, fines, penalties and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) of such Claim and any federal,
state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement (collectively, hereinafter "Expenses"), including all interest,
assessments and other charges paid or payable in connection with or in respect of such Expenses. Such payment of Expenses shall be made by the Company as soon as practicable but in any event no later
than five (5) days after written demand by Indemnitee therefor is presented to the Company. 

 

        (b)  Reviewing Party. Notwithstanding the foregoing, (i) the obligations of the Company under Section 1(a) shall
be subject to the condition that the Reviewing Party (as described in Section 10(e) hereof) shall not have determined (in a written opinion, in any case in which the Independent Legal Counsel
referred to in Section 1(c) hereof is involved) that Indemnitee would not be permitted to be indemnified under applicable law, and (ii) the obligation of the Company to make an advance
payment of Expenses to Indemnitee pursuant to Section 2(a) (an "Expense Advance") shall be subject to the condition that, if, when and to the extent that the Reviewing Party determines that
Indemnitee would not be permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such
amounts theretofore paid; provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee
should be indemnified under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have
been exhausted or lapsed). Indemnitee's obligation to reimburse the Company for any Expense Advance shall be unsecured and no interest shall be charged thereon. If there has not been a Change in
Control
(as defined in Section 10(c) hereof), the Reviewing Party shall be selected by the Board of Directors, and if there has been such a Change in Control (other than a Change in Control which has
been approved by a majority of the Company's Board of Directors who were directors immediately prior to such Change in Control), the Reviewing Party shall be the Independent Legal Counsel referred to
in Section 1(c) hereof. If there has been no determination by the Reviewing Party or if the Reviewing Party determines that Indemnitee substantively would not be permitted to be indemnified in
whole or in part under applicable law, Indemnitee shall have the right to commence litigation seeking an initial determination by the court or challenging any such determination by the Reviewing Party
or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to service of process and to appear in any such proceeding. Any determination by the Reviewing
Party otherwise shall be conclusive and binding on the Company and Indemnitee. 

        (c)  Change in Control. The Company agrees that if there is a Change in Control of the Company (other than a Change in Control
which has been approved by a majority of the Company's Board of Directors who were directors immediately prior to such Change in Control) then with respect to all matters thereafter arising concerning
the rights of Indemnitee to payments of Expenses and Expense Advances under this Agreement or any other agreement or under the Company's Certificate of Incorporation or Bylaws as now or hereafter in
effect, Independent Legal Counsel (as defined in Section 10(d) hereof) shall be selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld). Such
counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent Indemnitee would be permitted to be indemnified under applicable law and
the Company agrees to abide by such opinion. The Company agrees to pay the reasonable fees of the Independent Legal Counsel referred to above and to fully indemnify such counsel against any and all
expenses (including attorneys' fees), claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 

        (d)  Mandatory Payment of Expenses. Notwithstanding any other provision of this Agreement other than Section 9 hereof,
to the extent that Indemnitee has been successful on the merits or otherwise, including, without limitation, the dismissal of an action without prejudice, in defense of any action, suit, proceeding,
inquiry or investigation referred to in Section 1(a) hereof or in the defense of any claim, issue or matter therein, Indemnitee shall be indemnified against all Expenses incurred by Indemnitee
in connection therewith. 

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        2.    Expenses; Indemnification Procedure.

        (a)  Advancement of Expenses. The Company shall advance all Expenses incurred by Indemnitee. The advances to be made hereunder
shall be paid by the Company to Indemnitee as soon as practicable but in any event no later than five (5) days after written demand by Indemnitee therefor to the Company. 

        (b)  Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to Indemnitee's right to be indemnified
under this Agreement, give the Company notice in writing as soon as practicable of any Claim made against Indemnitee for which indemnification will or could be sought under this Agreement. Notice to
the Company shall be directed to the Chief Executive Officer of the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate in
writing to Indemnitee). In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee's power. 

        (c)  No Presumptions; Burden of Proof. For purposes of this Agreement, the termination of any Claim by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular
standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing Party to
have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual determination by the Reviewing Party that Indemnitee has not
met such standard of conduct or did not have such belief, prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be indemnified under
applicable law, shall be a defense to Indemnitee's claim or create a presumption that Indemnitee has not met any particular standard of conduct or did not have any particular belief. In connection
with any determination by the Reviewing Party or otherwise as to whether the Indemnitee is entitled to be indemnified hereunder, the burden of proof shall be on the Company to establish that
Indemnitee is not so entitled. 

        (d)  Notice to Insurers. If, at the time of the receipt by the Company of a notice of a Claim pursuant to Section 2(b)
hereof, the Company has liability insurance in effect which may cover such Claim, the Company shall give prompt notice of the commencement of such Claim to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as
a result of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies. The Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies. 

        (e)  Selection of Counsel. In the event the Company shall be obligated hereunder to pay the Expenses of any Claim, the
Company, if appropriate, shall be entitled to assume the defense of such Claim with counsel approved by Indemnitee, upon the delivery to Indemnitee of written notice of its election so to do. After
delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of
counsel subsequently incurred by Indemnitee with respect to the same Claim; provided that, (i) Indemnitee shall have the right to employ Indemnitee's counsel in any such Claim at Indemnitee's
expense and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and Indemnitee in the conduct of any such defense, or (C) the Company shall not continue to retain 

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such counsel to defend such Claim, then the fees and expenses of Indemnitee's counsel shall be at the expense of the Company. 

        3.    Additional Indemnification Rights; Nonexclusivity.

        (a)  Scope. The Company hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that
such indemnification is not specifically authorized by the other provisions of this Agreement, the Company's Certificate of Incorporation, the Company's Bylaws or by statute. In the event of any
change after the date of this Agreement in any applicable law, statute or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer,
employee, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits afforded by such change. In the event of any change in any
applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, employee, agent or fiduciary, such change, to the
extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties' rights and obligations hereunder except as set forth
in Section 8(a) hereof. 

        (b)  Nonexclusivity. This indemnification provided by this Agreement shall be in addition to any rights to which Indemnitee
may be entitled under the Company's Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested directors, the General Corporation Law of the State of Delaware
or otherwise. The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though Indemnitee may
have ceased to serve in such capacity. 

        4.    No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with
any Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy, Certificate of Incorporation, Bylaw or otherwise) of the amounts
otherwise indemnifiable hereunder. 

        5.    Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company
for some or a portion of the expenses incurred in connection with any Claim, but not, however, for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
of such Expenses to which Indemnitee is entitled. 

        6.    Mutual Acknowledgement. Both the Company and Indemnitee acknowledge that in certain instances, Federal law or applicable
public policy may prohibit the Company from indemnifying its directors, officers, employees, agents or fiduciaries under this Agreement or otherwise. Indemnitee understands and acknowledges that the
Company has undertaken or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a
determination of the Company's right under public policy to indemnify Indemnitee. 

        7.    Liability Insurance. To the extent the Company maintains liability insurance applicable to directors, officers, employees,
agents or fiduciaries, Indemnitee shall be covered by such policies in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the
Company's directors, if Indemnitee is a director; or of the Company's officers, if Indemnitee is not a director of the Company but is an officer; or of the Company's key employees, agents or
fiduciaries, if Indemnitee is not an officer or director but is a key employee, agent or fiduciary. 

        8.    Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the
terms of this Agreement: 

        (a)  Excluded Action or Omissions. To indemnify Indemnitee for acts, omissions or transactions from which Indemnitee may not
be relieved of liability under applicable law. 

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        (b)  Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to Claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except (i) with respect to actions or proceedings brought to establish or enforce a right to indemnification under this Agreement or
any other agreement or insurance policy or under the Company's Certificate of Incorporation or Bylaws now or hereafter in effect relating to Claims for Indemnifiable Events, (ii) in specific
cases if the Board of directors has approved the initiation or bringing of such Claim, or (iii) as otherwise as required under Section 145 of the Delaware General Corporation law,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance expense payment or insurance recovery, as the case may be. 

        (c)  Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by the Indemnitee with respect to any proceeding
instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by the Indemnitee in such proceeding was not
made in good faith or was frivolous; or 

        (d)  Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment of profits arising from the
purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute. 

        9.    Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in the right of the
Company against Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such
cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year
period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall
govern. 

        10.  Construction of Certain Phrases.

        (a)  For
purposes of this Agreement, references to the "Company" shall include, in addition to the resulting corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees,
agents or fiduciaries, so that if Indemnitee is or was a director, officer, employee, agent or fiduciary of such constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, Indemnitee shall stand in the
same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate
existence had continued. 

        (b)  For
purposes of this Agreement, references to "other enterprises" shall include employee benefit plans; references to "fines" shall include any excise taxes assessed on
Indemnitee with respect to an employee benefit plan; and references to "serving at the request of the Company" shall include any service as a director, officer, employee, agent or fiduciary of the
Company which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to an employee benefit plan, its participants or its beneficiaries; and if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to
have acted in a manner "not opposed to the best interests of the Company" as referred to in this Agreement. 

        (c)  For
purposes of this Agreement a "Change in Control" shall be deemed to have occurred if (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended), other than any member of the Pearse family, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of 

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the Company representing more than 35% of the total voting power represented by the Company's then outstanding Voting Securities, (ii) during any period of two consecutive years, individuals
who at the beginning of such period constitute the Board of Directors of the Company and any new director whose election by the Board of Directors or nomination for election by the Company's
stockholders was approved by a vote of at least two thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to constitute a majority thereof, or (iii) the stockholders of the Company approve a merger or consolidation of the
Company with any other corporation other than a merger or consolidation which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least 51% of the total voting power represented by the
Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of (in one transaction or a series of transactions) all of substantially all of the Company's assets. 

        (d)  For
purposes of this Agreement, "Independent Legal Counsel" shall mean an attorney or firm of attorneys, selected in accordance with the provisions of
Section 1(c) hereof, who shall not have otherwise performed services for the Company or Indemnitee within the last three years (other than with respect to matters concerning the rights of
Indemnitee under this Agreement, or of other indemnitees under similar indemnity agreements). 

        (e)  For
purposes of this Agreement, a "Reviewing Party" shall mean any appropriate person or body consisting of a member or members of the Company's Board of Directors or
any other person or body appointed by the Board of Directors who is not a party to the particular Claim for which Indemnitee is seeking indemnification, or Independent Legal Counsel. 

        (f)    For
purposes of this Agreement, "Voting Securities" shall mean any securities of the Company that vote generally in the election of directors. 

        11.  Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original. 

        12.  Binding Effect; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of
the business and/or assets of the Company, spouses, heirs, and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. This Agreement
shall continue in effect regardless of whether Indemnitee continues to serve as a director of the Company or of any other enterprise at the Company's request. 

        13.  Attorneys' Fees. In the event that any action is instituted by Indemnitee under this Agreement or under any liability
insurance policies maintained by the Company to enforce or interpret any of the terms hereof or thereof, Indemnitee shall be entitled to be paid all Expenses incurred by Indemnitee with respect to
such action, regardless of whether Indemnitee is ultimately successful in such action, and shall be entitled to the advancement of Expenses with respect to such action, unless as a part to such action
a court of competent jurisdiction over such action determined that each of the material assertions made by Indemnitee as a basis for such action were not made in good faith or were frivolous. In the
event of an action instituted by or in the name of the Company under this Agreement 

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to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all Expenses incurred by Indemnitee in defense of such action (including costs and expenses
incurred with respect to Indemnitee's counterclaims and cross-claims made in such action), and shall be entitled to the advancement of Expenses with respect to such action, unless as a part of such
action a court having jurisdiction over such action determines that each of Indemnitee's material defenses to such action were made in bad faith or were frivolous. 

        14.  Notice. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be
deemed duly given (i) if delivered by hand and signed for by the party addressed, on the date of such delivery, or (ii) if mailed by domestic certified or registered mail with postage
prepaid, on the third business day after the date postmarked. Addresses for notice to either party are as shown on the signature page of this Agreement, or as subsequently modified by written notice. 

        15.  Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of
the State of Colorado for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement. 

        16.  Severability. The provisions of this Agreement shall be severable in the event that any of the provisions hereof
(including any provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, and the remaining provisions
shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this
Agreement containing any provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, illegal or unenforceable. 

        17.  Choice of Law. This Agreement shall be governed by and its provisions construed and enforced in accordance with the laws
of the State of Colorado, as applied to contracts between Colorado residents, entered into and to be performed entirely within the State of Colorado, without regard to the conflict of laws principles
thereof. 

        18.  Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment
to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to
bring suit to enforce such rights. 

        19.  Amendment and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective
unless it is in writing signed by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 

        20.  Integration and Entire Agreement. This Agreement sets forth the entire understanding between the parties hereto and
supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto. 

        21.  No Construction as Employment Agreement. Nothing contained in this Agreement shall be construed as giving Indemnitee any
right to be retained in the employ of the Company or any of its subsidiaries. 

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        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 

	

 	
 	
ULTIMATE ELECTRONICS, INC.
	

 	
 	

By:	

	 	 	Title:	

	
AGREED TO AND ACCEPTED	
 	

 	

 
	

INDEMNITEE:	
 	

 	

 
	

 (signature)	
 	

 	

 
	

 (name of Indemnitee)	
 	

 	

 
	

 (address)	
 	

 	

 

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FORM OF ULTIMATE ELECTRONICS, INC. INDEMNIFICATION AGREEMENTEXHIBIT 10.11

 

Zions Bancorporation

Senior Management Value Sharing Plan

Award Period: 2001 - 2004

 

 

Objective:

 

To provide an ongoing multi-year incentive
for the senior managers of Zions Bancorporation and its subsidiaries which:

 

A. Focuses managers’ attention on the
creation of long-term shareholder value;

 

B. Creates an incentive that promotes
teamwork across departments and subsidiaries, and which encourages managers to
balance profit center accountability with Company-wide goals; and,

 

C. Complements the short-range annual bonuses
which reflect the achievement of annual objectives and the Company’s short-term
profitability.

 

 

Eligibility:

 

Participants in the Plan will consist of
specified members of the senior management group (and certain other key managers)
of the Company and its major subsidiaries. Participants for each Award Period
shall be specifically identified by the Company’s Board of Directors (the
“Board”) or its Executive Compensation Committee (the “Committee”).

 

 

Allocation of Awards:

 

It is anticipated that during the first
quarter of each year in which the Plan operates, the Board of Directors shall
approve the establishment of a pool of Award Funds to be generated during the
Award Period, according to the general formula outlined below. Participants
shall be designated by the Board or the Committee. Claims against the pool of
Award Funds for each Award Period shall be represented by Participation Units
(“Units”), and each participant shall be allocated a specific number of Units
by the Committee. The Units shall represent a pro-rata claim, in proportion to
the total Units designated for that Award Period, on any Award Funds generated
by the Plan during the Award Period.

 

 

Term:

 

Each Award Period shall consist of a
continuous four-calendar-year period. The Plan is intended to constitute a
“moving four-year-average” incentive plan, with the anticipation that a new
Award Period would be designated each year, with multiple Award Periods
overlapping one another.  Nevertheless,
the establishment of a new Award Period each year is subject to the Board’s
discretion.

 

 

Determination of Award Funds:

 

The amount of Award Funds in the pool for
each Award Period shall be a function of the Aggregate Cash Earnings Per Share
(“ACEPS”) during the Award Period, together with the mathematical Average
Tangible Return On Shareholders’ Equity (“TROE”) for each of the four years in
the Award Period,

 

Aggregate Cash Earnings Per Share (“ACEPS”)
shall be defined as the aggregate, over the four year Award Period, of each
year’s Net Cash Income divided by average diluted shares outstanding. Net Cash
Income shall be defined as net income before the cumulative effect of changes
in accounting principles, plus the after-tax cost of amortized  goodwill and core deposit intangible assets,
plus the after-tax cost of charges recognized to standardize accounting
practices of acquired entities, plus the after-tax cost of merger charges
realized during the period.

 

Tangible Return on Shareholders’ Equity
(“TROE”) shall be defined as the average, for each of the four years in the
Award Period, of the Company’s Net Cash Income divided by the average Modified
Tangible Equity. Modified Tangible Equity shall mean total common shareholders’
equity, less goodwill and core deposit intangible assets, except if such
intangible assets arise as a result of acquisitions of businesses, stock or
deposits for cash.  (If such
acquisitions are made with a combination of cash and stock, goodwill and core deposit
intangible assets shall be deducted from common shareholders’ equity only to
the extent that such items exceed the total value of Zions’ shares issued in
the transaction.)

 

Each year, the Committee shall establish
minimum targets for TROE and ACEPS for the Award Period. These minimum targets
would both be required to be reached in order for any Award Funds to be
earned. Additionally, the Committee may designate Award Fund allocation amounts
based upon the achievement of higher levels of TROE, with upward adjustments
possible if higher levels of ACEPS are achieved. The Committee may also
designate other conditions and adjustment factors to ensure the Plan’s
integrity and consistency with shareholder and depositor interests.

 

The 2001-2004 Award Period formula for the
determination of the value of Units is as indicated in the Appendix.

 

For the 2001-2004 Award Period, the following
parameters shall be established, and adjustments made to the Company’s earnings
calculations, for purposes of determining Award Funds available under the Plan:

 

1). The Plan is intended to create an
incentive for increasing shareholder value. However, this is not to be
accomplished by reducing capital levels or assuming extraordinary or
unwarranted risks. Accordingly, it is expected that total risk-based capital
levels shall be maintained at a level at least 125% of “well-capitalized”
regulatory requirements.

 

2). The Company’s reserve levels are to be
conservatively maintained. To the extent that the consolidated Allowance for
Loan and Lease Losses is less than 100% of the peer group level, as expressed
in terms of reserves/non-current loans as reported in the most current Uniform
Bank Performance Report available at December 
31, 2004, an appropriate adjustment shall be made to after-tax earnings
(for purposes of calculating Award Funds only) to compensate for any deficit
relative to the 100% minimum target level. Actual reserve levels are, of
course, subject to Board

 

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and/or regulatory decisions. No upward
adjustments shall be made in “pro forma” earnings in the event actual reserve
levels exceed 100% of the peer group target.

 

3). Unless determined otherwise by the Board,
in the event of any merger involving an acquisition by Zions for the exchange
of Zions’ shares in a pooling-of-interests transaction, earnings per share
prior to the acquisition date shall, for the purpose of calculating ACEPS
during the Award Period, be determined using Zions’ un-restated numbers.

 

Other Terms and Conditions:

 

The Plan is to be governed and interpreted by
the Committee, whose decisions shall be final. The terms of the Plan are
subject to change or termination at their sole discretion.

 

The Company shall retain the right to
withhold payment of Award Funds to participants in the event of a significant
deterioration in the Company’s financial condition, or if so required by
regulatory authorities, or for any other reason considered valid by the Board
in its sole discretion.

 

Participants shall not vest in any benefits
available under the Plan until the conclusion of each Award Period.
Nevertheless, upon death, permanent disability, or normal or early retirement
(unless upon early retirement the participant becomes employed by an entity
which competes with Zions Bancorporation), participants (or their estates)
shall be eligible to receive a proportionate share of Award Funds based upon
the number of Units granted, and the number of full calendar quarters the
participant was engaged as an officer of the Company or its subsidiaries prior
to death, disability, or retirement.

 

The Units shall not be transferable without
the express approval of the Committee.

 

In the event of the merger or acquisition of
the Company, the Plan may be terminated as of the end of the fiscal quarter
preceding the first full quarter before the transaction is consummated. The
Board may make any reasonable estimates or adjustments necessary in calculating
Award Funds for any Award Period. The Board may also, at its sole discretion,
alter the terms of the Plan at any time during an Award Period.

 

This document is intended to provide a
guideline for the creation and distribution of incentive compensation. Nothing
herein creates a contractual obligation binding on the Board, and no
Participant shall have any legal rights with respect to an Award until such
Award is distributed.

 

Earnings per share calculations shall be
adjusted to reflect any stock splits, stock dividends, or other such changes in
capitalization, at the discretion of the Committee.

 

The award of Units to any participant shall
not confer any right with respect to continuance of employment by the Company
or its subsidiaries, nor limit in any way the right of the Company to terminate
his or her employment at any time, with or without cause.

 

3

 

APPENDIX

 

ZIONS BANCORPORATION VALUE-SHARING PLAN: 2001 - 2004

 

Calculation
of Participation Unit Value

 

Aggregate Cash Earnings Per
Share (“ACEPS”)

 

If the ACEPS is:

 

	
   

  	
   

  	
   

  	
   

  	
  The basic
  value of a

  	
   

  
	
  Over -

  	
   

  	
  But not
  over -

  	
   

  	
  Participation
  Unit is -

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  13.89

  	
   

  	
  $

  	
  14.23

  	
   

  	
  $ .3383 plus $.0202 per
  each cent of the amount over $13.89

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  14.23

  	
   

  	
  $

  	
  14.58

  	
   

  	
  $ 1.0281 plus $.0303 per
  each cent of the amount over $14.23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  14.58

  	
   

  	
  $

  	
  14.93

  	
   

  	
  $ 2.0831 plus $.0403 per
  each cent of the amount over $14.58

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  14.93

  	
   

  	
  $

  	
  15.30

  	
   

  	
  $ 3.5173 plus $.0504 per
  each cent of the amount over $14.93

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  15.30

  	
   

  	
  $

  	
  15.67

  	
   

  	
  $ 5.3447 plus $.0605 per
  each cent of the amount over $15.30

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  15.67

  	
   

  	
  $

  	
  16.04

  	
   

  	
  $ 7.5800 plus $.0706 per
  each cent of the amount over $15.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  16.04

  	
   

  	
  $

  	
  16.43

  	
   

  	
  $ 10.2379 plus $.0807 per
  each cent of the amount over $16.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  16.43

  	
   

  	
  $

  	
  16.82

  	
   

  	
  $ 13.3335 plus $.0908 per
  each cent of the amount over $16.43

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  16.82

  	
   

  	
  $

  	
  17.22

  	
   

  	
  $ 16.8824 plus $.1008 per
  each cent of the amount over $16.82

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  17.22

  	
   

  	
  $

  	
  17.62

  	
   

  	
  $ 20.9001 plus $.1109 per
  each cent of the amount over $17.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  17.62

  	
   

  	
  $

  	
  18.04

  	
   

  	
  $ 25.4027 plus $.1210 per
  each cent of the amount over $17.62

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  18.04

  	
   

  	
  $

  	
  18.46

  	
   

  	
  $ 30.4067 plus $.1209 per
  each cent of the amount over $18.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  18.46

  	
   

  	
  $

  	
  18.89

  	
   

  	
  $ 35.4984 plus $.1209 per
  each cent of the amount over $18.46

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  18.89

  	
   

  	
  $

  	
  19.32

  	
   

  	
  $ 40.6845 plus $.1209 per
  each cent of the amount over $18.89

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  19.32

  	
   

  	
  $

  	
  19.77

  	
   

  	
  $ 45.9662 plus $.1089 per
  each cent of the amount over $19.32

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  19.77

  	
   

  	
  $

  	
  20.22

  	
   

  	
  $ 50.8119 plus $.1089 per
  each cent of the amount over $19.77

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  20.22

  	
   

  	
  $

  	
  20.68

  	
   

  	
  $ 55.7461 plus $.0871 per
  each cent of the amount over $20.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  20.68

  	
   

  	
  $

  	
  21.15

  	
   

  	
  $ 59.7651 plus $.0653 per
  each cent of the amount over $20.68

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  21.15

  	
   

  	
  $

  	
  21.63

  	
   

  	
  $ 62.8339 plus $.0436 per
  each cent of the amount over $21.15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  21.63

  	
   

  	
   

  	
   

  	
  $ 64.9166

  	
   

  

 

4

 

Tangible Return on
Shareholders’ Equity (“TROE”) Modifier:

 

The basic Participation Unit value determined
above shall be adjusted as follows:

 

If TROE for 2001 - 2004 is
less than 15.00%, the Participation Units shall have no value.

 

If TROE is equal to or
greater than 15.00% but less than 19.00%, the basic value of a Participation
Unit shall be multiplied by a factor of 1.00.

 

If TROE is equal to or
greater than 19.00% but less than 26.00%, the basic value of a Participation
Unit shall be multiplied by the following factor:   1+(TROE - .19)5.7143.

 

If TROE is 26.00% or more,
the basic value of a Participation Unit shall be multiplied by 1.40.

 

******************************

Example: 
If ACEPS is $18.60 and TROE is 24.30%, each Participation Unit would be
worth  $48.45.

 

[$35.4984+100($18.60-$18.46)$.1209]
X [1+(.2430 - .19)5.7143] = $48.45

 

5

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