EXHIBIT 10.44
CHANGE OF CONTROL EMPLOYMENT AGREEMENT
THIS AGREEMENT, which shall only become effective as an employment
agreement upon satisfaction of the conditions described in Section 1 hereof, is
made as of the 8th day of April, 1996 between and among Hibernia Corporation, a
Louisiana corporation (the "Company"), Hibernia National Bank, a national
banking association (the "Bank") (collectively, with their direct and indirect
subsidiaries, ("Hibernia") and _______________ ("Executive").
W I T N E S S E T H:
WHEREAS, Hibernia and/or the Bank employs Executive in a position of
significant authority and responsibility;
WHEREAS, Hibernia on behalf of itself and its shareholders, wishes to
attract and retain well-qualified executives and key personnel and to assure
itself of the continuity of its management;
WHEREAS, Hibernia recognizes that Executive is a valuable resource and,
in the event of a change of control of the Company or the Bank, Hibernia desires
to assure itself of Executive's continued loyalty and services or, in the event
Executive is terminated or adversely modified as a result thereof, to assure
Executive of adequate severance; and
WHEREAS, in the event of a change of control of Hibernia, Hibernia
desires to assure, as much as possible, that its management team remains intact
for a period of time after the change of control in order to assure a smooth
transition and to increase the value of its franchise to its shareholders.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
1. Employment.
In the event of a change of control of Hibernia or the Bank, as defined
herein below, Hibernia hereby agrees to continue Executive in its employ, and
Executive hereby agrees to remain in the employ of Hibernia, for the period
commencing on the Effective Date of the change in control, as defined herein
below, and ending on the last day of the month that is [two years/one year]
after the Effective Date (the "Employment Period"). It is hereby acknowledged
and agreed that this Agreement shall not operate to ensure employment, and shall
not constitute an employment agreement, until and unless a change of control, as
defined herein, occurs, and, in the event of a change of control, only for the
Employment Period, as defined above.
2. Position and Duties.
(a) During the Employment Period, Executive shall hold such position
and exercise such authority and perform such duties as are commensurate with the
position held and authority being exercised and duties being performed by
Executive immediately prior to the Effective Date, which services shall be
performed at the location where Executive was employed immediately prior to the
Effective Date or at such other location as Hibernia may reasonably require
within a 20-mile radius of the location at which Executive was employed
immediately prior to the Effective Date. The position, authority and duties of
Executive shall be deemed to be not commensurate with Executive's previous
position, authority or duties if (i) Hibernia becomes a direct or indirect
subsidiary of another corporation or corporations or becomes controlled,
directly or indirectly, by one or more unincorporated entities ("parent
company") or (ii) all or substantially all of the assets of Hibernia are
acquired by another corporation or unincorporated entity or group of
corporations or unincorporated entities owned or controlled, directly or
indirectly, by another corporation or unincorporated entity ("successor"),
unless, in either case, Executive's position, authority and duties with such
parent company or successor are at least commensurate in all material respects
with those held, exercised and assigned with Hibernia immediately prior to the
Effective Date.
(b) Excluding periods of vacation and sick leave to which Executive is
entitled, Executive agrees that during the Employment Period Executive shall
devote his or her full business time and attention to Executive's
responsibilities as described herein and shall perform such duties and
responsibilities faithfully and efficiently. Notwithstanding the foregoing,
Executive may engage in such outside professional, civic, charitable and
personal activities as are permitted by Hibernia's Code of Ethics and which do
not materially interfere with the performance of Executive's duties and
responsibilities.
3. Compensation and Benefits.
During the Employment Period, Executive shall receive the following
compensation and benefits:
(a) An annual base salary which is not less than his or her annual base
salary immediately prior to the Effective Date. During the Employment Period,
Executive's annual base salary shall be reviewed at least annually and shall be
increased from time to time consistent with increases in annual base salary
awarded in the ordinary course of business to other executives and key
employees. Any increase in annual base salary shall not limit or reduce any
other obligation to Executive under this Agreement. Hibernia shall not reduce
Executive's annual base salary during the Employment Period without Executive's
consent.
(b) A bonus (either pursuant to a bonus or incentive plan or program of
Hibernia or otherwise) in cash at least equal to the product of the average of
the bonus payout ratio1 for the three years (or such shorter period as Executive
has been employed by Hibernia) prior to the Effective Date (expressed as a
fraction) times the target bonus for the year in question (such bonus is
hereinafter sometimes referred to as the "Employment Period Bonus"). For
purposes of this paragraph (b), the parties acknowledge and agree that the bonus
payout ratio is the percentage of Executive's target bonus for the year(s) in
question which was actually awarded to Executive in the year(s) in question. The
annual bonus shall be payable within 60 days after the end of each fiscal year.
(c) Notwithstanding anything in paragraph (b) above to the contrary,
however, Executive shall not be entitled to an Employment Period Bonus with
respect to any year for which no bonuses have been or will be paid to any
officer eligible to receive a bonus from Hibernia. It is expressly understood
and agreed by the parties hereto that any bonus, regardless when paid, that is
paid to any officer of Hibernia that relates to a year to which an Employment
Period Bonus is otherwise required to be paid, shall require the payment of an
Employment Period Bonus to Executive.
(d) Executive shall be eligible to participate and to continue existing
participation in any and all incentive compensation plans of Hibernia which
provide opportunities to receive compensation in addition to annual base salary
and cash bonus on the same terms and conditions as other executives and key
employees of Hibernia.
(e) Executive shall be entitled to participate in salaried employee
benefit plans of Hibernia and receive perquisites on the same terms and
conditions as other executives and key employees of Hibernia.
(f) Executive shall be entitled to continue to accrue credited service
for retirement benefits and receive retirement benefits under and pursuant to
the terms of any qualified retirement plan of Hibernia or supplemental executive
retirement plan of Hibernia in effect on the Effective Date, on the same terms
and conditions as other executives and key employees of Hibernia.
4. Termination.
(a) Executive acknowledges and agrees that his or her employment is at
the pleasure of the Board of Directors (or, to the extent so delegated by such
Board, the Chief Executive Officer) of the Bank and/or the Company and that he
or she may be removed at any time by the Board of Directors (or, to the extent
so delegated by such Board, the Chief Executive Officer). Hibernia acknowledges
and agrees that Executive may resign his or her employment with Hibernia at any
time with or without Good Reason as hereinafter defined. If, at any time after
the Effective Date of a change in control and prior to the expiration of the
Employment Period, Executive is removed from the position which Executive held
prior to the Effective Date of a change in control, as hereinafter defined,
other than for cause or as a result of Executive's disability, or if Executive
resigns his or her position for Good Reason, the Bank shall pay to Executive a
lump sum severance amount equal to the aggregate salary remaining unpaid during
the unexpired portion of the Employment Period, plus an amount equal to the
product of the bonus, if any, that would be payable to Executive pursuant to
Section 3 hereof times the fraction, the numerator of which is the number of
months remaining in the unexpired portion of the Employment Period and the
denominator of which is [twenty-four/twelve].
(b) In order to ensure a smooth transition of management in the event
of a change of control, Executive may also resign his or her employment
voluntarily, with or without Good Reason, during the thirty-day period following
the date that is six months after the Effective Date of a change of control,
and, if Executive so terminates his employment, Executive shall be entitled to a
lump sum severance amount equal to the aggregate salary remaining unpaid during
the unexpired portion of the Employment Period, plus an amount equal to one-half
of his or her Employment Period Bonus.
(c) In the event of termination pursuant to this Section 4(a) or
Section 4(b), the Company shall provide career counseling services for the
benefit of Executive for a period of [twelve/six] months following termination
of employment, including, but not limited to, the use of a telephone,
photocopying and fax equipment and counseling services relating to availability
of other job opportunities, all at no charge or cost to Executive.
(d) In the event Executive remains in the employ of the Bank for the
entire Employment Period (commencing on the Effective Date), and this Agreement
is not terminated by Employee and the Bank or by its terms, then this Agreement
shall terminate on the date that falls [two years/one year] after the Effective
Date.
(e) Notwithstanding anything in this Section 4 to the contrary,
Executive and Hibernia hereby acknowledge and agree that the parties hereto may,
upon the mutual consent of all parties hereto, modify or amend the provisions
hereof or terminate this Agreement at any time before or after the Effective
Date and that, upon such termination, the provisions hereof shall have no
further force or effect.
(f) If it shall be determined that any payment to Executive pursuant to
this Section 4 of this Agreement (a "Payment") would be subject to any Taxes (as
defined below), then Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by Executive
of all Taxes imposed upon the Gross-Up Payment, Executive retains an amount of
the Gross-Up Payment equal to the Taxes imposed on the Payment.
5. Confidential and Proprietary Information.
Executive acknowledges and agrees that any and all non public
information regarding Hibernia and its customers is confidential and the
unauthorized disclosure of such information will result in irreparable harm to
Hibernia. An Executive shall not, during his employment by Hibernia and for a
period of five years thereafter, disclose or permit the disclosure of any such
information to any person other than an employee of Hibernia or an individual
engaged by Hibernia to render professional services to Hibernia under
circumstances that require such person to maintain the confidentiality of such
information, except as such disclosure may be required by law. The provisions of
this Section 5 shall survive any termination of this Agreement. For purposes of
this Section 5, the term "confidential information" shall not include
information that (i) was or becomes generally available to the public other than
as a result of disclosure by Executive, (ii) was or becomes available to
Executive on a non confidential basis from a source other than Hibernia.
6. Definitions.
For purposes of this Agreement, the following terms shall have the
meanings given them in this Section 6.
(a) "Cause" shall mean a material breach by Executive of his
obligations under Section 2 of this Agreement or any failure or refusal to
perform the material duties associated with his position.
(b) "Good Reason" shall mean (i) the assignment to Executive of duties
that are materially inconsistent with Executive's position, authority, duties or
responsibilities immediately prior to the change in control, or any other action
by Hibernia which results in a material diminution in such position, authority,
duties or responsibilities; or (ii) requiring Executive, without his consent, to
be based at any office or location other than the office or location at which
Executive was employed immediately prior to the change in control; provided,
however, that any such relocation requests shall not be grounds for resignation
with Good Reason if such relocation is within a twenty-mile radius of the
location at which Executive was based prior to the Effective Date of a change in
control.
(c) "Disability" shall mean circumstances that qualify Executive for
long-term disability benefits under Hibernia's Long-Term Disability Plan as in
effect immediately prior to the change in control.
(d) "Change of control" shall be deemed to occur if (i) a person,
including a "group" as defined in Section 13(d)(3) of the Securities and
Exchange Act of 1934 and the rules and regulations promulgated there under,
becomes the beneficial owner of shares of Hibernia having 50% or more of the
voting power of Hibernia, (ii) Hibernia shall have sold or disposed of all or
substantially all of its assets or substantially all of the assets of the Bank,
or (iii) during any period of two consecutive calendar years, the individuals
who, at the beginning of such period, constitute the Board of Directors of the
Company cease for any reason to constitute at least a majority thereof, unless
the election or the nomination for election by the Company shareholders of each
new director was approved by a vote of at least a majority of the directors then
still in office who were directors at the beginning of the period or persons
nominated or elected by such directors. The Effective Date of a change in
control for purposes of this Agreement shall be (A) the date on which Hibernia
receives a copy of a Schedule 13D disclosing beneficial ownership of shares in
accordance with (d)(i) above; (B) the closing date of a sale of assets by
Hibernia in accordance with (d)(ii) above; or (C) the date of the annual or
special meeting of shareholders at which the last director necessary to meet the
requirements of (d)(iii) above is elected.
(e) "Taxes" shall mean the incremental United States federal, state and
local income, excise and other taxes including, but without limitation, the
excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as
amended, payable to Executive with respect to any applicable item of income.
7. Liability of the Company; Regulatory Restrictions.
The parties recognize that the enforceability of employment contracts
with national banks are subject to some uncertainty and that national banks and
their bank holding companies are subject to regulatory restrictions that change
from time to time. As a result, Executive may be prevented from obtaining or
enforcing any or all of his rights here under from the Bank or the Company. The
Company agrees that if, for any reason, the Bank is prevented from performing
its obligations here under, the Company will perform each and every obligation
as if it were the sole party to the Agreement and without regard to whether the
Agreement specifies certain obligations to be those of the Bank rather than the
Company; provided, however, nothing herein shall require the Company to perform
any obligation if such performance is prohibited or limited by applicable law or
regulation, as determined in a proceeding or adjudication by a court, tribunal,
or regulatory agency having authority to so determine, which determination is
final and subject to no further appeals. The parties further acknowledge and
agree that it is the intent of this Agreement that it be enforced to the fullest
degree permitted by law and regulation.
8. Notices.
All notices and other communications provided for by this Agreement
shall be in writing and shall be deemed to have been duly given when delivered
in person or mailed by United States Certified Mail, return receipt requested,
postage prepaid, addressed as follows:
If to Executive:
If to Hibernia:
Hibernia Corporation (or Hibernia National Bank)
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxx, Xxxxxxxxx 00000
Attention: Director, Human Resources
or to such other addresses any party may have furnished to the other in writing
in accordance with this Agreement.
9. Governing Law.
The provisions of this Agreement shall be interpreted and construed in
accordance with, and enforcement may be made under, the law of the State of
Louisiana.
10. Successors and Assigns.
Except as otherwise provided herein, this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.
11. Severability.
If any provision or portion of this Agreement shall be determined to be
invalid or unenforceable for any reason, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and effect
to the fullest extent permitted by applicable law.
12. Entire Agreement; Amendment.
This Agreement sets forth the entire Agreement of the parties hereto
and supersedes all prior agreements, understandings and covenants with respect
to the subject matter hereof. This Agreement may be amended or terminated only
by mutual agreement of the parties in writing.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.
HIBERNIA NATIONAL BANK HIBERNIA CORPORATION
By: _______________________ By:_______________________
Title: ____________________ Title: ___________________
EXECUTIVE
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1 The bonus payout ratio shall be the percentage of the target bonus for
Executive, which target bonus is expressed as a percentage of annual base salary
and which is established in advance of each fiscal year by Hibernia, which is
actually awarded in that year. For example, if the target bonus is 50% of base
salary, and the award is 25% of the target, then the bonus payout ratio is 25%.
For purposes of this provision, the bonus payout ratios for the three years in
question would be aggregated and divided by three, and the resulting average
would be applied to the target bonus for the Executive in the year in which the
Employment Period Bonus would be paid.
