EX-10.49






Exhibit 10.49




[PNFP Letterhead]




December 12, 2008




Via Hand Delivery




M. Terry Turner

211 Commerce Street, Suite 300

Nashville, Tennessee 37201




Dear Terry,



Pinnacle Financial Partners, Inc. (the “Company”) anticipates entering into a Securities Purchase
Agreement (the “Participation Agreement”), with the United States Department of Treasury
(“Treasury”) that provides for the Company’s participation in the Treasury’s TARP Capital Purchase
Program (the “CPP”). If the Company does not participate or ceases at any time to participate in
the CPP, this letter shall be of no further force and effect.



For the Company to participate in the CPP and as a condition to the closing of the investment
contemplated by the Participation Agreement, the Company is required to establish specified
standards for incentive compensation to its senior executive officers and to make changes to its
compensation arrangements. To comply with these requirements, and in consideration of the benefits
that you will receive as a result of the Company’s participation in the CPP, you agree as follows:





	 	(1)	 	No Golden Parachute Payments. The Company is prohibiting any golden parachute
payment to you during any “CPP Covered Period”. A “CPP Covered Period” is any period
during which (A) you are a senior executive officer and (B) Treasury holds an equity or
debt position acquired from the Company in the CPP.






	 	(2)	 	Recovery of Bonus and Incentive Compensation. Any bonus and incentive
compensation paid to you during a CPP Covered Period is subject to recovery or
“clawback” by the Company if the payments were based on materially inaccurate financial
statements or any other materially inaccurate performance metric criteria.






	 	(3)	 	Compensation Program Amendments. Each of the Company’s compensation, bonus,
incentive and other benefit plans, arrangements and agreements (including golden
parachute, severance and employment agreements) (collectively, “Benefit Plans”) with
respect to you is hereby amended to the extent necessary to give effect to provisions (1) and (2).
For reference, certain affected Benefit Plans are
set forth in Appendix A to this letter.




 









 










M. Terry Turner

December 12, 2008

Page 2






	 	 	 	In addition, the Company is required to review its Benefit Plans to ensure that they
do not encourage senior executive officers to take unnecessary and excessive risks
that threaten the value of the Company. To the extent any such review requires
revisions to any Benefit Plan with respect to you, you and the Company agree to
negotiate such changes promptly and in good faith.






	 	(4)	 	Definitions and Interpretation. This letter shall be interpreted as follows:






	 	•	 	“Senior executive officer” means the Company’s “senior executive officers”
as defined in subsection 111(b)(3) of EESA.
	 
	 	•	 	“Golden parachute payment” is used with same meaning as in Section
111(b)(2)(C) of EESA.
	 
	 	•	 	“EESA” means the Emergency Economic Stabilization Act of 2008 as implemented
by guidance or regulation issued by the Department of the Treasury and as
published in the Federal Register on October 20, 2008.
	 
	 	•	 	The term “Company” includes any entities treated as a single employer with
the Company under 31 C.F.R. § 30.1(b) (as in effect on the Closing Date). You
are also delivering a waiver pursuant to the Participation Agreement, and, as
between the Company and you, the term “employer” in that waiver will be deemed
to mean the Company as used in this letter.
	 
	 	•	 	The term “CPP Covered Period” shall be limited by, and interpreted in a
manner consistent with, 31 C.F.R. § 30.11 (as in effect on the Closing Date).
	 
	 	•	 	Provisions (1) and (2) of this letter are intended to, and will be
interpreted, administered and construed to, comply with Section 111 of EESA
(and, to the maximum extent consistent with the preceding, to permit operation
of the Benefit Plans in accordance with their terms before giving effect to
this letter).






	 	(5)	 	Miscellaneous. To the extent not subject to federal law, this letter will be
governed by and construed in accordance with the laws of Tennessee. This letter may be
executed in two or more counterparts, each of which will be deemed to be an original. A
signature transmitted by facsimile will be deemed an original signature.




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M. Terry Turner

December 12, 2008

Page 3



The Board appreciates the concessions you are making and looks forward to your continued leadership
during these financially turbulent times.




Yours sincerely,



Pinnacle Financial Partners, Inc.



By: /s/ Rachel M. West

Name: Rachel M. West

Title: Chief Human Resources Officer




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M. Terry Turner

December 12, 2008

Page 4



Intending to be legally bound, I agree with and accept the foregoing terms on the date set forth
below.




/s/ M. Terry Turner




Date: December 12, 2008




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Appendix A



Pinnacle Financial Partners 2004 Equity Incentive Plan, including cash awards thereunder under the
2008 Cash Incentive Plan, and subsequent cash incentive award plans, all stock option awards
thereunder, and all restricted share awards thereunder.



Employment Agreement with M. Terry Turner, as amended, dated January 1, 2008.



Employment Agreement with Robert McCabe, Jr., as amended, dated January 1, 2008.



Employment Agreement with Hugh M. Queener, as amended, dated January 1, 2008.



Employment Agreement with Harold R. Carpenter, as amended, dated January 1, 2008.