HIBERNIA CORPORATION 2005 DEFERRED AWARD PLAN

 

                                                                  

                              HIBERNIA CORPORATION

 

                            2005 DEFERRED AWARD PLAN

 

 

 

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                              HIBERNIA CORPORATION

                            2005 DEFERRED AWARD PLAN

 

                                      INDEX

                                                                            PAGE

 

   ARTICLE I - PURPOSE.......................................................1

 

   ARTICLE II - DEFINITIONS..................................................1

 

   ARTICLE III - ELIGIBILITY AND PARTICIPATION...............................3

 

   ARTICLE IV - AWARDS AND ACCOUNTS..........................................3

      Establishment of Accounts..............................................3

      Status of Accounts.....................................................3

      Annual Awards..........................................................3

      Interim Award..........................................................4

      Vesting................................................................4

      Accounting.............................................................4

      Valuation Notice.......................................................5

 

   ARTICLE V - PAYMENT OF DEFERRED AWARDS....................................5

      Initial Payment Procedures.............................................5

      Forms of Distribution..................................................5

      Time of Payment........................................................5

      Amount of Deferred Award...............................................5

      Schedule A.............................................................6

      Status as a Key Employee...............................................6

      Small Payments.........................................................6

 

   ARTICLE VI - DEATH BENEFITS...............................................6

      Beneficiary Designation................................................6

      Participant's Death Before Benefit Eligibility Date....................6

      Participant's Death During Installment Period..........................7

      Death of Beneficiary...................................................7

      Small Payments.........................................................7

 

   ARTICLE VII - TERMINATION BENEFITS; HARDSHIP WITHDRAWALS..................7

      Termination Benefit....................................................7

      Hardship Withdrawals...................................................7

 

   ARTICLE VIII - PLAN ADMINISTRATION........................................8

      Powers.................................................................8

      Payments...............................................................8

      Delegation of Administrative Authority.................................8

      Claims.................................................................9

      Fees and Expenses.....................................................10

      Facility of Payment...................................................10

 

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   ARTICLE IX - PARTICIPANTS' RIGHTS........................................10

      Spendthrift Provision.................................................10

      No Continued Employment...............................................10

      Obligation for Benefit Payments.......................................10

      Taxes.................................................................10

 

   ARTICLE X - MISCELLANEOUS................................................11

      Termination of Plan...................................................11

      Code Section 409A.....................................................11

      Inurement.............................................................11

      No Effect on Other Benefits...........................................11

      Amendment and Modification............................................11

      Governing Law.........................................................12

      Merger or Consolidation...............................................12

      Entire Plan...........................................................12

 

   EXHIBIT A - Initial Participants.........................................13

 

   EXHIBIT B - Determination of Annual Award................................14

 

   EXHIBIT C - Change of Control............................................16

 

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                              HIBERNIA CORPORATION

                            2005 DEFERRED AWARD PLAN

 

      Hibernia Corporation,  a corporation organized and existing under the laws

of the State of Louisiana (the "COMPANY"), hereby adopts the 2005 Deferred Award

Plan,  to be effective  as of January 1, 2005 (the  "EFFECTIVE  DATE"),  as more

fully set forth herein (the "PLAN").

 

                                    ARTICLE I

                                     PURPOSE

 

      The Plan is intended to be an unfunded deferred  compensation  arrangement

for the  benefit of certain  officers,  managers or other key  employees  of the

Company  and its  Affiliates  (as  defined  below),  within  the  meaning of the

Employee Retirement Income Security Act of 1974, as amended ("ERISA").  As such,

this Plan is not intended to  constitute  an employee  benefit plan under ERISA,

which is subject to the  provisions of Parts 2, 3 and 4 of Title I of ERISA.  In

accordance with such intent,  any obligation of the Company or its Affiliates to

pay benefits hereunder shall be deemed to be an unsecured promise, and any right

of a Participant (as defined below) or Beneficiary (as defined below) to enforce

such obligation shall be solely as a general  creditor of the Company.  The Plan

is not  intended to  constitute  a qualified  employee  benefit  plan within the

meaning of Section 401(a) of the Internal  Revenue Code of 1986, as amended (the

"CODE").

 

                                   ARTICLE II

                                   DEFINITIONS

 

      2.1   ACCOUNT  means one or more  bookkeeping  entries  maintained  by the

Company with respect to each Participant hereunder.

 

      2.2   AFFILIATE means any corporation or other form of entity of which the

Company owns,  directly or indirectly,  80% or more of the total combined voting

power of all  classes of stock or other  equity  interests,  provided  that such

entity is designated by the Committee as a participating entity hereunder.

 

      2.3   AWARD  means a credit made by the Company to an Account hereunder in

accordance with the provisions of Section 4.3 or 4.4 hereof, as the case may be.

 

      2.4   BENEFICIARY means the person, persons, entity or entities designated

by a Participant  in accordance  with Section 6.1 hereof.  If no  Beneficiary is

designated with respect to the Plan, a Participant's  designation made under the

Prior Plan shall control;  if there is no such  designation or such  designation

cannot  be  administered,   a  Participant's  designation  under  the  Company's

Retirement Security Plan (or the default provisions thereof) shall control.

 

      2.5   BENEFIT  ELIGIBILITY  DATE  means the date on which a  Participant's

Deferred Award is eligible for payment  hereunder,  which shall be designated on

Schedule  A  hereto;  provided,  however,  that in no event  shall  such date be

earlier  than the date on  which a  Participant  ceases  to be  employed  by the

Company  and  its  Affiliates.   INITIAL  BENEFIT  ELIGIBILITY  DATE  means  the

 

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Benefit Eligibility Date designated by a Participant in accordance with Section

5.1 hereof or, if no such date is designated,  the date on which the Participant

ceases to be employed by the Company and its Affiliates for any reason.

 

     2.6  BOARD  or BOARD OF  DIRECTORS  means  the  Board of  Directors  of the

Company.

 

      2.7  COMMITTEE  means the Executive  Compensation  Committee of the Board,

which shall act as the administrator of this Plan.

 

      2.8  DEFERRED  AWARD  means  the   benefit   payable   on   or   after   a

Participant's Eligibility Date in accordance with the provisions of Article V

hereof.

 

      2.9  ELIGIBILITY  DATE means the date on which a Participant  has attained

age 55 and completed 15 Years of Service.  For this  purpose,  a YEAR OF SERVICE

shall be a 12  consecutive  month  period of service  with the  Company  and its

Affiliates.  Such years shall be measured from a Participant's  most recent date

of hire; service prior to such date shall be disregarded.

 

      2.10  INTEREST CREDITING RATE means the rate  determined as of each Annual

Valuation Date for the immediately  succeeding Plan Year. Such rate shall be the

Corporate  Bond Survey  Average  Rate  published  by Moody's  during the October

immediately  preceding such date, plus 1%, compounded annually,  and credited as

of each  Valuation  Date in  accordance  with Section 4.5 hereof.  The Committee

shall  determine  such rate  annually and provide each  Participant  with notice

thereof.

 

      2.11  PARTICIPANT  means an officer,  manager or other key employee of the

Company or its Affiliates for whom an Account is maintained hereunder.

 

      2.12  PAYMENT  DATE means the first  business day that is at least 60 days

after  each June 30th or  December  31st or as soon as  practicable  thereafter,

subject to such limitations as may be imposed under Section 5.6 hereof.

 

      2.13  PLAN  means  this  2005  Deferred  Award  Plan,  as  the same may be

            amended, restated or replaced from time to time.

 

      2.14  PLAN YEAR means the 12-month period  beginning  each January 1st and

ending each December 31st.

 

      2.15  PRIOR PLAN means the Company's Deferred Award Plan,  which was first

approved on January 22, 1996, and with respect to which awards thereunder ceased

as of December 31, 2004.

 

      2.16  SCHEDULE A means one or more schedules or other writings  acceptable

to the  Committee  (or its  designee)  that  provide for the  distribution  of a

Participant's  Deferred  Award  and  include  (a) the  designation  of a Benefit

Eligibility  Date,  and/or (b) an election as to a form of benefit payment.  The

terms of any such Schedule A are incorporated in this Plan by this reference.

 

 

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      2.17  UNFORESEEABLE  EMERGENCY means the occurrence of a severe  financial

hardship. Such hardship shall be attributable to a sudden and unexpected illness

or accident of the  Participant or his or her spouse or dependents,  the loss of

property   due  to  casualty   or  similar   extraordinary   and   unforeseeable

circumstances beyond the control of a Participant.

 

      2.18  VALUATION DATE means each June 30th, December 31st and/or such other

dates  as may be  designated,  from  time  to  time,  by the  Committee.  ANNUAL

VALUATION DATE means December 31st.

 

      2.19  VESTING  CHANGE OF CONTROL  shall have the meaning  ascribed to such

term in Exhibit C hereto.

 

      2.20  OTHER DEFINITIONS.  The terms  "CAUSE,"  "GOOD  REASON,"  "CHANGE OF

CONTROL," and "DISABILITY"  shall have the meanings  ascribed to them in Section

4.4  hereof;  the term  "INITIAL  FORM OF  DISTRIBUTION"  shall have the meaning

ascribed to it in Section 5.1 hereof;  the term "INSTALLMENT  PERIOD" shall have

the meaning ascribed to it in Section 5.2a hereof; the term "KEY EMPLOYEE" shall

have the meaning ascribed to it in Section 5.6 hereof.

 

                                   ARTICLE III

                          ELIGIBILITY AND PARTICIPATION

 

      Officers,  managers or other key  employees of the Company or an Affiliate

shall participate hereunder when designated by the Committee,  which designation

may be made  individually  or by groups or categories,  in the discretion of the

Committee.  The Committee  shall notify each such officer,  manager or other key

employee of his or her  eligibility  to  participate  in this Plan.  Without the

necessity  of  further  action,   Participants  hereunder  shall  include  those

individuals listed on Exhibit A hereto, which shall be deemed a part of the Plan

by this reference.

 

                                   ARTICLE IV

                               AWARDS AND ACCOUNTS

 

      4.1  ESTABLISHMENT  OF  ACCOUNTS. The Company shall establish and maintain

an Account with respect to each Participant  hereunder.  Each such Account shall

be  credited   with  such  Awards  as  may  be  made  for  the   benefit of each

Participant  hereunder  in  accordance  with  Section  4.3 hereof. The Committee

may direct the  establishment  and  maintenance  of such  additional  Account or

Accounts for such  purpose or purposes as the  Committee  may deem  necessary or

appropriate,  including, but not limited to, the designation of multiple Benefit

Eligibility Dates or methods of distribution.

 

      4.2  STATUS  OF  ACCOUNTS.   Accounts   established   hereunder  shall  be

bookkeeping  entries only. The  establishment  and  maintenance of such Accounts

shall not be deemed to create a trust or other  form of  fiduciary  relationship

between the Company (or an Affiliate)  and any  Participant  or  Beneficiary  or

otherwise  create,  for  the  benefit  of any  Participant  or  Beneficiary,  an

ownership interest in or expectation of any specific asset of the Company (or of

any Affiliate).

 

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      4.3  ANNUAL AWARDS.  As of each Annual Valuation Date, the Committee shall

credit to the Account of each  Participant  who is employed by the Company or an

Affiliate as of such date an Award in an amount  determined in  accordance  with

Exhibit B hereto.

 

      4.4  INTERIM  AWARD.  Notwithstanding  any  provision  of the  Plan to the

contrary and in lieu of an annual Award determined under Section 4.3 hereof, the

Account  of a  Participant  who ceases to be  employed  by the  Company  and its

Affiliates  on or before  September  30, 2006,  shall be credited with an amount

determined  in  accordance  with  Exhibit B hereof,  prorated  to  reflect  such

Participant's  period of service  between the first day of the Plan Year and the

date on which such cessation occurs,  provided that such Participant's cessation

of employment is on account of:

 

      a.    Involuntary  termination  of  employment,  other  than on account of

            Cause;

 

      b.    Voluntarily termination of employment on account of Good Reason;

 

      c.    Voluntary or involuntary termination of employment during the 30-day

            period  determined  under paragraph  1(a)(ii) of such  Participant's

            Change of Control Agreement; or

 

      d.    Death or Disability.

 

Such credits shall be made as of the Valuation  Date  immediately  following the

termination, death or Disability.

 

      For this purpose, the terms "CAUSE," "GOOD REASON," and "DISABILITY" shall

have the  meanings  ascribed  to them in each  Participant's  Change of  Control

Agreement.  The term  "CHANGE  OF  CONTROL  AGREEMENT"  shall mean the Change of

Control  Agreement by and between the Company and each Participant  hereunder in

effect as of August 1, 2005.

 

      4.5  VESTING.  Amounts  credited  to a  Participant's  Account or Accounts

hereunder  shall  be  vested  and  nonforfeitable  upon the  earlier  of (a) the

completion of five Years of Service,  or (b) the  occurrence of a Vesting Change

of Control.

 

      4.6  ACCOUNTING.  As of each Valuation  Date, a  Participant's  Account or

Accounts shall be adjusted as follows:

 

      a.    Each such Account shall be credited with interest at the  applicable

            Interest  Crediting  Rate  for  the  period  since  the  immediately

            preceding  Valuation  Date,  which shall be determined in accordance

            with Section  2.10 hereof,  provided  that such credit  shall,  when

            compounded, equal the annual Interest Crediting Rate.

 

      b.    Each such  Account  shall be  credited  with the amount of any Award

            made for the benefit of such  Participant  since the prior Valuation

            Date.

 

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      c.    Each such  Account  shall be reduced by the amount of any payment or

            other form of  distribution or withdrawal made since the immediately

            preceding Valuation Date.

 

      4.7  VALUATION NOTICE. Not less  frequently  than  each  Annual  Valuation

Date, the Committee  (or its designee)  shall  furnish  each  Participant with a

valuation  notice  which  includes  the amounts  credited  to the  Participant's

Accounts  as of such date and the  adjustments  described  in Section 4.6 hereof

since the immediately preceding notice.

 

                                    ARTICLE V

                           PAYMENT OF DEFERRED AWARDS

 

      5.1  INITIAL PAYMENT  PROCEDURES.  No later than 30 days after the date on

which a  Participant  is first  designated  as such  hereunder or as of the date

designated by the Committee in connection  with the adoption and  implementation

of this  Plan,  each  Participant  hereunder  shall  furnish a Schedule A to the

Committee, which shall designate his or her Initial Benefit Eligibility Date and

the form in which his or her Deferred Award shall be  distributed  (the "INITIAL

FORM OF  DISTRIBUTION").  If a Participant fails to provide such election within

the time specified by the  Committee,  he or she shall be deemed to have elected

(a) a single-sum payment as his or her Initial Form of Distribution,  and (b) to

receive his or her Deferred Award as of his or her Initial  Benefit  Eligibility

Date.

 

      5.2  FORMS OF DISTRIBUTION.   A Participant shall be entitled to elect one

of the following forms of distribution on Schedule A hereto:

 

      a.    Substantially  equal  annual  installment   payments  for  a  period

            designated by such Participant,  but not in excess of 20 consecutive

            years  (such  designated  period  referred  to as  the  "INSTALLMENT

            PERIOD"); or

 

      b.    A single-sum payment.

 

Unless otherwise permitted by the Committee, any such designation shall apply to

the aggregate value of his or her Deferred Award.

 

      5.3  TIME OF  PAYMENT.  Subject to the provisions  of Section  5.6 hereof,

payment  of a  Deferred  Award  hereunder  shall be made or  commence  as of the

Payment  Date that  corresponds  with or  immediately  follows  a  Participant's

Benefit  Eligibility  Date and,  with  respect  to  installment  payments,  each

anniversary of such Payment Date during the Installment Period.

 

      5.4  AMOUNT  OF  DEFERRED  AWARD.  The  amount of a Participant's Deferred

Award hereunder shall be determined in accordance with the following rules:

 

      a.    If such  benefit  is paid in the form of a  single-sum,  such  award

            shall  equal  the   aggregate   vested   amount   credited  to  such

            Participant's  Account or  Accounts  as of the  Valuation  Date that

            coincides with or immediately precedes the applicable Payment Date.

 

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      b.    If  such  benefit  is paid in the form of  installments,  the amount

            of  each  annual  installment shall equal the vested amount credited

            to  such  Participant's   Account or  Accounts  as of the  Valuation

            Date  that  coincides  with or  immediately  precedes the applicable

            Payment  Date,  multiplied  by a fraction (i) the numerator of which

            is  one, and (ii) the  denominator  of which is the number of annual

            installments   then   remaining   to  be  paid    pursuant   to  the

            Participant's   Schedule  A.   During the  Installment  Period,  the

            Participant's  Account  or  Accounts shall be credited with interest

            in accordance with the provisions of Section 4.6b hereof.

 

      5.5  SCHEDULE A.  A  Participant  shall  be entitled to modify the Initial

Form  of  Distribution  and/or  Initial  Benefit  Eligibility Date applicable to

his or her  Deferred  Award by delivery of a Schedule A to the  Committee or its

designee, provided that:

 

      a.    Any such  modification  shall be effective no earlier than 12 months