Document:

EX-10.(U) FORM OF RESTRICTED STOCK AWARD AGREEMENT

 

Exhibit (10)(u)

NON-EMPLOYEE DIRECTOR

RESTRICTED STOCK AWARD AGREEMENT

     THIS NON-EMPLOYEE DIRECTOR RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is made and
entered into as of                     , 20                     by and between Compass Bancshares, Inc., a Delaware
corporation (the “Corporation”) and                      (the “Participant”).

     Pursuant to the terms of the Corporation’s 2006 Incentive Compensation Plan (the “Plan”), the
Participant has been awarded shares of Restricted Stock (hereinafter defined), conditioned upon the
execution and delivery by the Corporation and the Participant of this Agreement setting forth the
terms and conditions applicable to such award.

     In consideration of the mutual covenants and obligations of the parties contained herein and
in the Plan, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

     1. Definitions. The following definitions have the following meanings:

     “Award Date” shall mean                     , 20                    .

     “Board” shall mean the Board of Directors of the Corporation.

     “Committee” shall mean the Compensation Committee of the Board of Directors of the
Corporation.

     “Common Stock” shall mean shares of the Corporation’s common stock, par value $2.00 per share.

     “Disability” shall mean that a Participant: (i) has established to the satisfaction of the
Board that he or she is unable to perform his or her duties as a member of the Board by reason of
any medically determinable physical or mental impairment which can be expected to last for a
continuous period of not less than twelve (12) months and (ii) has satisfied any requirement
imposed by the Committee in regard to evidence of such disability.

     “Dividends” shall mean any dividends received by the Participant with respect to the
Restricted Stock whether in the form of cash, stock or other securities and whether obtained by
virtue of any distribution, recapitalization, merger, consolidation, split-up, combination,
exchange of shares or other transaction.

     “Retirement” shall mean a Participant’s mandatory retirement from service as a member of the
Board pursuant to the Corporation’s retirement policy for directors, as the same may be amended
from time to time.

     “Sale of the Corporation” shall mean: (i) acquisition by any individual, entity or group
(within the meaning of Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended) of beneficial ownership (within the meaning of Rule 13d-3) of more than fifty percent of
either the then outstanding shares of Common Stock or the combined voting power of the then

 

 

outstanding voting securities of the Corporation entitled to vot e generally in the election of
directors, or (ii) consummation by the Corporation of a reorganization, merger or consolidation,
or sale or other disposition of all or substantially all of the assets of the Corporation.

All other capitalized terms not defined herein shall have the meanings set forth in the Plan.

     2. Award of Restricted Stock. Pursuant to the terms of the Plan, the Corporation hereby awards
to the Participant, effective as of the Award Date, ___shares of Common Stock, subject to the
terms, conditions and restrictions described in this Agreement and in the Plan (the “Restricted
Stock”). Except as provided in this Agreement, the Participant shall have, with respect to the
Restricted Stock, all of the rights of a stockholder of the Corporation, including the right to
vote and to receive any Dividends. All Dividends shall be subject to the same restrictions as are
applicable to such Restricted Stock.

     3. Restrictions and Conditions. The following conditions and restrictions shall apply to the
Restricted Stock:

     (a) Prior to release pursuant to Section 4 hereof, the Participant shall not sell, transfer,
pledge or assign any portion of the Restricted Stock except as specifically permitted by the Plan
and this Agreement.

     (b) The shares of Restricted Stock issued hereunder in the name of the Participant shall be
held in an account for the benefit of the Participant maintained by the Corporation at its transfer
agent. Any certificate evidencing shares of Restricted Stock issued for such account prior to the
release date hereunder shall bear a legend or other appropriate restriction substantially of the
following substance:

“The transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) of the Compass
Bancshares, Inc., 2006 Incentive Compensation Plan and a Restricted Stock Award
Agreement, dated                     , 20                    , entered into between the registered owner and the
Corporation. Copies of such Plan and Agreement are on file in the offices of the
Corporation, 15 South 20th Street, Birmingham, Alabama 35233.”

     (c) If the Participant ceases to serve as a member of the Board prior to the third anniversary
of the Award Date (other than through the Participant’s Retirement, the Participant’s death, the
Participant’s Disability, or Sale of the Corporation), the Restricted Stock and any Dividends
shall be forfeited.

     4. Release of Restrictions.

 

 

     (a) The Restricted Stock and any Dividends shall be held by the Corporation until released to
the Participant in accordance with the terms of the Plan and this Agreement. Except as otherwise
provided in this Agreement, the Restricted Stock and any Dividends shall be released to
Participant as soon as administratively practicable following the third anniversary of the Award
Date.

     (b) If, prior to the third anniversary of the Award Date, the Participant ceases to be a
member of the Board as a result of (i) the Participant’s Retirement or (ii) the Participant’s death
or Disability, the Restricted Stock and any Dividends shall be released to the Participant (or the
Participant’s personal representative or estate in case of the Participant’s death).

     (c) In the event of a Sale of the Corporation prior to the third anniversary of the Award
Date while the Participant is a member of the Board, the Restricted Stock and any Dividends shall
be released as and when determined by the Committee.

     5. Waiver of Rights under the 2002 Incentive Compensation Plan. Effective as of the Award Date
and in consideration of the award of the Restricted Stock under this Agreement, the Participant hereby
waives and relinquishes any and all rights to receive options to acquire Common Stock pursuant to Section
12 of the Compass Bancshares, Inc. 2002 Incentive Compensation Plan.

     6. Adjustments. In the event of any change in the outstanding Common Stock of the Corporation
by reason of a stock dividend or distribution, recapitalization, merger, consolidation, split-up,
combination, exchange of shares or otherwise, the Committee shall adjust the number of shares of
Common Stock which may be issued under the Plan and the Committee shall provide for an equitable
adjustment of any shares issuable pursuant to awards outstanding under the Plan.

     7. Assignment and Transfer. Participant may assign or transfer his rights under this
Agreement under the following circumstances: (i) by will or the laws of descent and distribution,
in which case the Restricted Stock may be received in accordance with the provisions of this
Agreement or (ii) by gift or pursuant to a domestic relations order to a family member (or a trust
for their benefit), in which case the Participant shall promptly report the transfer to the
Secretary of the Corporation so that the Corporation may deliver to his transferee all requisite
documents concerning the Plan (including the prospectus meeting the requirements of Section 10(a)
of the Securities Act of 1933, as amended). For this purpose, “family member” includes any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece,
nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, a trust in which these persons have more than
fifty (50) percent of the beneficial interest, a foundation in which these persons (or the
Participant) control the management of assets, and any other entity in which these persons (or the
Participant) own more than fifty (50) percent of the voting interests. A transfer to an entity in
which more than fifty (50) percent of the voting interests are owned by family members, or the
Participant, in exchange for an interest in that entity is also permitted pursuant to this Section
7.

     8. Disposition of Shares. Participant agrees to notify the Corporation promptly of the sale,
gift or other disposition of any shares of Common Stock awarded pursuant to this Agreement.

 

 

     9. Compliance with Laws and Regulations. The obligation of the Corporation to deliver shares
of Restricted Stock hereunder shall be subject to all applicable federal and state laws, rules and
regulations and to such approvals by any government or regulatory agency as may be required.

     10. Participant Bound by Plan. Participant hereby acknowledges receipt of a copy of the Plan
and agrees to be bound by all the terms and provisions thereof, including the terms and provisions
adopted after the award of the Restricted Stock but prior to the vesting thereof. In the event of
any conflict between the provisions of the Plan and this Agreement, the Plan shall control.

     11. Notices. Any notice hereunder to the Corporation shall be in writing and addressed to
the Secretary of the Corporation, 15 South 20th Street, Birmingham, Alabama 35233,
subject to the right of the Corporation to designate at any time hereafter in writing some other
address.

     12. Miscellaneous. This Agreement shall be governed by the laws of the State of Alabama.
This Agreement together with the Plan contains the entire agreement and understanding of the
parties hereto with respect to the matters covered hereby and may not be amended except in
writing, signed by the parties hereto. This Agreement may be executed in one or more counterparts
each of which shall be considered one and the same instrument.

     13. Headings. The section headings used herein are solely for reference only and shall not
affect in any way the meaning and interpretation of the terms and conditions set forth herein.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	COMPASS BANCSHARES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 

	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Printed NameEX-10.(CC) SUMMARY OF COMPENSATION ARRANGEMENTS

 

Exhibit (10)(cc)

SUMMARY OF COMPENSATION ARRANGEMENTS

FOR NAMED EXECUTIVE OFFICERS AND DIRECTORS

Named Executive Officers

     Following is a description of compensation arrangements that have been approved by the
Compensation Committee (the “Compensation Committee”) of the Board of Directors of Compass
Bancshares, Inc. (“Compass”) for the Company’s Chief Executive Officer, Chief Financial Officer and
the other three most highly compensated executive officers as of the end of the 2006 fiscal year
(the “Named Executive Officers”). This description is intended to be a summary of existing oral,
at-will arrangements, and in no way is intended to provide any additional rights to any of the
Named Executive Officers.

     2007 Annual Base Salaries and 2006 Bonus Payouts. The Compensation Committee has approved the
following annual base salaries, calculated from January 1, 2007, and cash bonus payments for
performance in fiscal year 2006 under the 2006 Management and Executive Incentive Plan (“2006
MEIP”) for the Named Executive Officers: D. Paul Jones, Jr. – Chairman and Chief Executive Officer,
annual base salary of $1,075,000 and 2006 cash bonus payment of $1,535,625; Garrett R. Hegel –
Chief Financial Officer, annual base salary of $495,000 and 2006 cash bonus payment of $392,634;
George M. Boltwood – Senior Executive Vice President, annual base salary of $430,000 and 2006 cash
bonus payment of $228,085; James D. Barri – Executive Vice President, annual base salary of
$455,000 and 2006 cash bonus payment of $212,967; and William C. Helms – Executive Vice President,
annual base salary of $370,000 and 2006 cash bonus payment of $321,942. These 2006 MEIP payouts
were determined based on the level of attainment of previously-disclosed company-wide performance
criteria (earnings per share growth and return on common equity) as well as, for all of the Named
Executive Officers other than Mr. Jones, individual performance goals related to the departments or
divisions for which they have supervisory responsibility (including such measures as pretax income
after charge-offs, deposit balances, loan balances, targeted revenue growth, net charge-offs,
non-performing asset levels, non-interest expense, production loan spreads, and asset management
fee revenue). The Compensation Committee also approved an additional discretionary 2006 bonus
amount of $53,280 for Mr. Barri.

     Performance Criteria for 2007 Bonus Awards. The Compensation Committee has approved the 2007
Management and Executive Incentive Plan (“2007 MEIP”), as well as maximum bonus opportunities and
certain performance measures for determination of Named Executive Officer cash bonus awards for the
2007 fiscal year. Under the 2007 MEIP, the bonus awards payable for the 2007 fiscal year, if any,
will vary depending on the extent to which actual performance meets, exceeds or falls short of
specified performance criteria. The company-wide performance criteria applicable to all 2007 MEIP
awards are earnings per share growth (85% weight) and return on common equity (15% weight). The
2007 MEIP payout for Mr. Jones will depend solely on these company-wide measures. The 2007 MEIP
payouts to the other Named Executive Officers may also depend in part on achievement of other goals
related to their individual performance or the performance of the departments or divisions for
which they have

 

 

supervisory responsibility (which may include similar measures as those used in 2006 MEIP awards),
to be determined by Mr. Jones. The maximum 2007 bonus opportunity established by the Committee for
Mr. Jones is 200 percent of his 2007 base salary, and the maximum bonus opportunity for the other
Named Executive Officers is 100 percent of their respective 2007 base salaries. Mr. Jones’s 2007
MEIP award (like his 2006 MEIP award) will be evidenced by dollar-denominated performance units
pursuant to a Performance Unit Award Agreement.

     Performance Contingent Restricted Stock (“PCRS”) Awards. The Compensation Committee granted
each Named Executive Officer a 2007 PCRS award under the 2002 Incentive Compensation Plan covering
the following maximum number of shares of restricted stock that vest based on pre-established
performance goals measured over the 2007-2009 performance period: D. Paul Jones, Jr.—43,143;
Garrett R. Hegel—9,933; George M. Boltwood—8,628; James D. Barri—9,130; and William C. Helms—7,424.
As with the 2006 PCRS awards, vesting of the 2007 PCRS awards is based on three different
performance criteria: (1) Compass’ performance on earnings per share growth and return on average
tangible equity benchmarks; (2) Compass’ relative performance against banks represented in the
Standard & Poor’s 500 Stock Index on the same two goals; and (3) Compass’ performance on the return
on average tangible equity benchmark only. At the conclusion of the performance period, the
approach yielding the largest payout is used to determine award levels. The first two measures have
the potential to yield maximum awards at 100% of the grant amount. The third performance measure
will result in maximum awards at 50% of the grant amount. If Compass’ performance is below
threshold levels on all three measures, no shares will be earned. The other terms of the 2007 PCRS
awards, which are the same as the 2006 PCRS awards, are set forth in the forms of Performance
Contingent Restricted Stock Award Agreements exhibited to Compass’ periodic reports.

     In addition, on January 31, 2007, the Named Executive Officers’ PCRS awards relating to the
2004-2006 measurement period vested. In 2005, the original 2004 PCRS awards were truncated such
that one-third of the covered shares would be eligible to vest based on the originally established
criteria, with the remainder cancelled. A number of shares equal to the remaining two-thirds of
each Named Executive Officer’s original award was added to his PCRS award for the 2005-2007
performance period. The vesting of the truncated 2004 awards resulted in the release of the
following shares: Jones—10,865; Hegel—2,824; Boltwood—2,488; Barri—2,488 and Helms—2,078; with the
following shares withheld for taxes: Hegel—764; Boltwood—541; Barri—673 and Helms—452.

     Stock Option Awards. The Compensation Committee granted each Named Executive Officer a 2007
stock option award covering the following number of shares: D. Paul Jones, Jr.—187,681; Garrett R.
Hegel—43,210; George M. Boltwood—37,536; James D. Barri—39,718; and William C. Helms—32,298. The
options (which are incentive stock options to the extent permitted) have a ten-year term and vest
in equal annual installments over a three-year period. The remaining terms of the stock option
awards are set forth in the forms of Stock Option Agreements exhibited to Compass’ periodic
reports.

     Other. The Named Executive Officers also participate in Compass’ executive and regular benefit
plans and programs, including retirement plans, deferred compensation plans and equity

 

 

incentive plans, as disclosed in Compass’ 2006 Proxy Statement and in other exhibits to Compass’
filings with the Securities and Exchange Commission.

Directors

     The Board of Directors has approved the following cash compensation schedule for non-employee
directors: (1) a monthly retainer of $2,083.33; (2) an additional monthly retainer of $666.66 for
the Audit Committee Chairman and $333.33 for the other committee chairmen; (3) meeting fees of
$1,750 for each Board meeting attended and $1,300 for each committee meeting attended; and (4)
reimbursement of reasonable out-of-pocket expenses incurred for attendance at Board, committee and
shareholder meetings and other business related expenses (including the travel expenses of spouses
if they are specifically invited to attend the meeting for appropriate business purposes).
Directors may use Compass’ aircraft for travel to such meetings if available and approved in
advance by the Chief Executive Officer.

     In addition, for 2007, each non-employee director received an award of 690 shares of
restricted stock under Compass’ 2006 Incentive Compensation Plan, which vests in full after a
three-year period. This award was granted in lieu of the regular annual stock option award covering
2,000 shares of common stock, and in connection with this restricted stock grant, each non-employee
director agreed to waive his right to receive automatic stock option grants under the 2002
Incentive Compensation Plan.

     In order to encourage share ownership in Compass and the long-term retention of those shares,
each non-employee director has the option to receive monthly retainers and attendance fees in cash
or to have all or a portion of those fees paid into an account for the purchase of Compass common
stock under the Director & Executive Stock Purchase Plan, which provides for an additional matching
contribution from Compass of 45 percent and a “gross-up” to reimburse the directors for all federal
and state income tax obligations attributable to the matching contributions.

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