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EXHIBIT 10.1

GREENE COUNTY BANCSHARES, INC.

2004 LONG-TERM INCENTIVE PLAN

1. Establishment, Purpose, and Types of Awards

Greene County Bancshares, Inc., a Tennessee corporation (the “Company”), hereby
establishes an incentive compensation plan to be known as the “Greene County
Bancshares, Inc. 2004 Long-Term Incentive Plan” (hereinafter referred to as the
“Plan”), for the purpose of attracting, retaining and motivating employees,
officers and directors for the Company and its Affiliates and to provide
incentives and awards for superior performance.

The Plan permits the granting of the following types of awards (“Awards”),
according to the Sections of the Plan listed here:

	 	 	 
	Section 6

	 	Options
	Section 7

	 	Share Appreciation Rights
	Section 8

	 	Restricted Shares and Restricted Share Units
	Section 9

	 	Deferred Share Units
	Section 10

	 	Performance Awards

The Plan is not intended to affect and shall not affect any stock options,
equity-based compensation, or other benefits that the Company or its Affiliates
may have provided, or may separately provide in the future pursuant to any
agreement, plan, or program that is independent of this Plan.

	2.	 	Defined Terms

Terms in the Plan that begin with an initial capital letter have the defined
meaning set forth in Exhibit A, unless defined elsewhere in this Plan or the
context of their use clearly indicates a different meaning.

	3.	 	Shares Subject to the Plan

Subject to the provisions of Section 13 of the Plan, the maximum number of
Shares that the Company may issue pursuant to Awards is 500,000. These Shares
shall be authorized but unissued Shares.

Shares that are subject to an Award that for any reason expires, is forfeited,
is cancelled, or becomes unexercisable, and Shares that are for any other
reason not paid or delivered under the Plan shall again, except to the extent
prohibited by Applicable Law, be available for subsequent Awards under the
Plan. In addition, the Committee may make future Awards with respect to Shares
that the Company retains from otherwise delivering pursuant to an Award either
(i) as payment of the exercise price of an Award, or (ii) in order to satisfy
the withholding or employment taxes due upon the grant, exercise, vesting, or
distribution of an Award. Notwithstanding the foregoing, but subject to
adjustments pursuant to Section 13 below, the number of Shares that are
available for ISO Awards shall be determined, to the extent required under
applicable tax laws, by reducing the number of Shares designated in the
preceding paragraph by the number of Shares granted pursuant to Awards (whether
or not Shares are issued pursuant to such Awards); provided that any Shares
that are either purchased under the Plan and forfeited back to the Plan, or
surrendered in payment of the Exercise Price for an Award shall be available
for issuance pursuant to ISO Awards.

	4.	 	Administration

     (a) General. The Committee shall administer the Plan in accordance with
its terms, provided that the Board may act in lieu of the Committee on any
matter. The Committee shall hold meetings at such times and places as it may
determine and make such rules and regulations for the conduct of its business
as it deems advisable. In the absence of a duly appointed Committee or if the
Board otherwise chooses to act in lieu of a Committee, the Board shall function
as the Committee for all purposes of the Plan.

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EXHIBIT 10.1

     (b) Committee Composition. The Board shall appoint the members of the
Committee. If and to the extent permitted by Applicable Law, the Committee may
authorize one or more Reporting Persons (or other officers) to make Awards to
Eligible Persons who are not Reporting Persons (or other officers whom the
Committee has specifically authorized to make Awards). The Board may at any
time appoint additional members to the Committee, remove and replace members of
the Committee with or without Cause, and fill vacancies on the Committee
however caused.

     (c) Powers of the Committee. Subject to the provisions of the Plan, the
Committee shall have the authority, in its sole discretion:

     (i) to determine Eligible Persons to whom Awards shall be granted
from time to time and the number of Shares, units, or SARs to be covered
by each Award;

     (ii) to determine, from time to time, the Fair Market Value of
Shares;

     (iii) to determine, and to set forth in Award Agreements, the terms
and conditions of all Awards, including any applicable exercise or
purchase price, the installments and conditions under which an Award
shall become vested (which may be based on performance), terminated,
expired, cancelled, or replaced, and the circumstances for vesting
acceleration or waiver of forfeiture restrictions, and other restrictions
and limitations;

     (iv) to approve the forms of Award Agreements and all other
documents, notices and certificates in connection therewith which need
not be identical either as to type of Award or among Participants;

     (v) to construe and interpret the terms of the Plan and any Award
Agreement, to determine the meaning of their terms, and to prescribe,
amend, and rescind rules and procedures relating to the Plan and its
administration; and

     (vi) in order to fulfill the purposes of the Plan and without
amending the Plan, modify, cancel, or waive the Company’s rights with
respect to any Awards, to adjust or to modify Award Agreements for
changes in Applicable Law, and to recognize differences in foreign law,
tax policies, or customs; and

     (vii) to make all other interpretations and to take all other
actions that the Committee may consider necessary or advisable to
administer the Plan or to effectuate its purposes.

Subject to Applicable Law and the restrictions set forth in the Plan, the
Committee may delegate administrative functions to individuals who are
Reporting Persons, officers, or Employees of the Company or its Affiliates.

     (d) Deference to Committee Determinations. The Committee shall have the
discretion to interpret or construe ambiguous, unclear, or implied (but
omitted) terms in any fashion it deems to be appropriate in its sole
discretion, and to make any findings of fact needed in the administration of
the Plan or Award Agreements. The Committee’s prior exercise of its
discretionary authority shall not obligate it to exercise its authority in a
like fashion thereafter. The Committee’s interpretation and construction of
any provision of the Plan, or of any Award or Award Agreement, shall be final,
binding, and conclusive. The validity of any such interpretation,
construction, decision or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld
unless clearly arbitrary or capricious.

     (e) No Liability; Indemnification. Neither the Board nor any Committee
member, nor any Person acting at the direction of the Board or the Committee,
shall be liable for any act, omission, interpretation, construction or
determination made in good faith with respect to the Plan, any Award or any
Award Agreement. The Company and its Affiliates shall pay or reimburse any
member of the Committee, as well as any Director, Employee, or Consultant who
takes action in connection with the Plan, for all expenses incurred with
respect to the Plan, and to

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EXHIBIT 10.1

the full extent allowable under Applicable Law shall indemnify each and
every one of them for any claims, liabilities, and costs (including reasonable
attorney’s fees) arising out of their good faith performance of duties under
the Plan. The Company and its Affiliates may obtain liability insurance for
this purpose.

5. Eligibility

     (a) General Rule. The Committee may grant ISOs only to Employees
(including officers who are Employees), and may grant all other Awards to any
Eligible Person. A Participant who has been granted an Award may be granted an
additional Award or Awards if the Committee shall so determine, if such person
is otherwise an Eligible Person and if otherwise in accordance with the terms
of the Plan.

     (b) Grant of Awards. Subject to the express provisions of the Plan, the
Committee shall determine from the class of Eligible Persons those individuals
to whom Awards under the Plan may be granted, the number of Shares subject to
each Award, the price (if any) to be paid for the Shares or the Award and, in
the case of Performance Awards, in addition to the matters addressed in Section
10 below, the specific objectives, goals and performance criteria that further
define the Performance Award. Each Award shall be evidenced by an Award
Agreement signed by the Company and, if required by the Committee, by the
Participant. The Award Agreement shall set forth the material terms and
conditions of the Award established by the Committee.

     (c) Limits on Awards. No Participant may receive Options and SARs that
relate to more than 125,000 Shares. The Committee will adjust these
limitations subject to adjustment pursuant to Section 13 below.

     (d) Replacement Awards. The Committee may, in its sole discretion and
upon such terms as it deems appropriate, require as a condition of the grant of
an Award to a Participant that the Participant surrender for cancellation some
or all of the Awards that have previously been granted to the Participant under
this Plan or otherwise. An Award that is conditioned upon such surrender may
or may not be the same type of Award, may cover the same (or a lesser or
greater) number of Shares as such surrendered Award, may have other terms that
are determined without regard to the terms or conditions of such surrendered
Award, and may contain any other terms that the Committee deems appropriate.
In the case of Options, these other terms may not involve an Exercise Price
that is lower than the Exercise Price of the surrendered Option unless either
the new grant will not create any material financial expense for the Company or
the Company’s shareholders approve the grant itself or the program under which
it is made pursuant to the Plan.

6. Option Awards

     (a) Types; Documentation. The Committee may in its discretion grant ISOs
to any Employee and Non-ISOs to any Eligible Person, and shall evidence any
such grants in an Award Agreement that is delivered to the Participant. Each
Option shall be designated in the Award Agreement as an ISO or a Non-ISO. At
the sole discretion of the Committee, any Option may be exercisable, in whole
or in part, immediately upon the grant thereof, or only after the occurrence of
a specified event, or only in installments, which installments may vary.
Options granted under the Plan may contain such terms and provisions not
inconsistent with the Plan that the Committee shall deem advisable in its sole
and absolute discretion.

     (b) ISO $100,000 Limitation. To the extent that the aggregate Fair Market
Value of Shares with respect to which Options designated as ISOs first become
exercisable by a Participant in any calendar year (under this Plan and any
other plan of the Company or any Affiliate) exceeds $100,000, such excess
Options shall be treated as Non-ISOs. For purposes of determining whether the
$100,000 limit is exceeded, the Fair Market Value of the Shares subject to an
ISO shall be determined as of the Grant Date. In reducing the number of
Options treated as ISOs to meet the $100,000 limit, the most recently granted
Options shall be reduced first. In the event that Section 422 of the Code is
amended to alter the limitation set forth therein, the limitation of this
Section 6(b) shall be automatically adjusted accordingly.

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EXHIBIT 10.1

     (c) Term of Options. Each Award Agreement shall specify a term at the end
of which the Option automatically expires, subject to earlier termination
provisions contained in Section 6(h) hereof; provided, that, the term of any
Option may not exceed ten years from the Grant Date. In the case of an ISO
granted to an Employee who is a Ten Percent Holder on the Grant Date, the term
of the ISO shall not exceed five years from the Grant Date.

     (d) Exercise Price. The exercise price of an Option shall be determined
by the Committee in its discretion and shall be set forth in the Award
Agreement, subject to the following special rules:

     (i) ISOs. If an ISO is granted to an Employee who on the Grant Date
is a Ten Percent Holder, the per Share exercise price shall not be less
than 110% of the Fair Market Value per Share on such Grant Date. If an
ISO is granted to any other Employee, the per Share exercise price shall
not be less than 100% of the Fair Market Value per Share on the Grant
Date.

     (ii) Non-ISOs. The per Share exercise price for the Shares to be
issued pursuant to the exercise of a Non-ISO shall not be less than 50%
of the Fair Market Value per Share on the Grant Date, and may be offered
pursuant to a deferred compensation program on terms the Committee in its
discretion determines. Non-ISOs issued pursuant to a deferred
compensation program involving elective deferrals by participants will be
immediately exercisable.

     (iii) Named Executives. The per Share exercise price shall not be
less than 100% of the Fair Market Value per Share on the Grant Date of an
Option if (A) on such Grant Date, the Participant is subject to the
limitations set forth in Section 162(m) of the Code, and (B) the grant is
intended to qualify as performance-based compensation under Section
162(m) of the Code.

     (iv) Repricing. The Committee may at any time unilaterally reduce
the exercise price for any Option, but only if (I) the reduction will not
cause material financial expense for the Company, and (II) the Committee
promptly provides a written notice to any Participant affected by the
reduction.

     (e) Exercise of Option. The times, circumstances and conditions under
which an Option shall be exercisable shall be determined by the Committee in
its sole discretion and set forth in the Award Agreement. The Committee shall
have the discretion to determine whether and to what extent the vesting of
Options shall be tolled during any unpaid leave of absence; provided, however,
that in the absence of such determination, vesting of Options shall be tolled
during any such leave approved by the Company.

     (f) Minimum Exercise Requirements. An Option may not be exercised for a
fraction of a Share. The Committee may require in an Award Agreement that an
Option be exercised as to a minimum number of Shares, provided that such
requirement shall not prevent a Participant from purchasing the full number of
Shares as to which the Option is then exercisable.

     (g) Methods of Exercise. Prior to its expiration pursuant to the terms of
the applicable Award Agreement, each Option may be exercised, in whole or in
part (provided that the Company shall not be required to issue fractional
shares), by delivery of written notice of exercise to the secretary of the
Company accompanied by the full exercise price of the Shares being purchased.
In the case of an ISO, the Committee shall determine the acceptable methods of
payment on the Grant Date and it shall be included in the applicable Award
Agreement. The methods of payment that the Committee may in its discretion
accept or commit to accept in an Award Agreement include:

     (i) cash or check payable to the Company (in U.S. dollars);

     (ii) other Shares that (A) are owned by the Participant who is
purchasing Shares pursuant to an Option, (B) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares
as to which the Option is being exercised, (C) were not acquired by such
Participant pursuant to the exercise of an Option, unless such Shares
have been owned by such Participant for at least six months or

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EXHIBIT 10.1

such other longer period as the Committee may determine, (D) are
all, at the time of such surrender, free and clear of any and all claims,
pledges, liens and encumbrances, or any restrictions which would in any
manner restrict the transfer of such shares to or by the Company (other
than such restrictions as may have existed prior to an issuance of such
Shares by the Company to such Participant), and (E) are duly endorsed for
transfer to the Company;

     (iii) a cashless exercise program that the Committee may approve,
from time to time in its discretion, pursuant to which a Participant may
concurrently provide irrevocable instructions (A) to such Participant’s
broker or dealer to effect the immediate sale of the purchased Shares and
remit to the Company, out of the sale proceeds available on the
settlement date, sufficient funds to cover the exercise price of the
Option plus all applicable taxes required to be withheld by the Company
by reason of such exercise and (B) to the Company to deliver the
certificates for the purchased Shares directly to such broker or dealer
in order to complete the sale; or

     (iv) any combination of the foregoing methods of payment.

The Company shall not be required to deliver Shares pursuant to the exercise of
an Option until payment of the full exercise price therefore is received by the
Company.

     (h) Termination of Continuous Service. The Committee may establish and
set forth in the applicable Award Agreement the terms and conditions on which
an Option shall remain exercisable, if at all, following termination of a
Participant’s Continuous Service. The Committee may waive or modify these
provisions at any time. To the extent that a Participant is not entitled to
exercise an Option at the date of his or her termination of Continuous Service,
or if the Participant (or other person entitled to exercise the Option) does
not exercise the Option to the extent so entitled within the time specified in
the Award Agreement or below (as applicable), the Option shall terminate and
the Shares underlying the unexercised portion of the Option shall revert to the
Plan and become available for future Awards. In no event may any Option be
exercised after the expiration of the Option term as set forth in the Award
Agreement.

The following provisions shall apply to the extent an Award Agreement does not
specify the terms and conditions upon which an Option shall terminate when
there is a termination of a Participant’s Continuous Service:

     (i) Termination other than Upon Disability or Death or for Cause.
In the event of termination of a Participant’s Continuous Service (other
than as a result of Participant’s death, disability, retirement or
termination for Cause), the Participant shall have the right to exercise
an Option at any time within three months following such termination to
the extent the Participant was entitled to exercise such Option at the
date of such termination.

     (ii) Disability. In the event of termination of a Participant’s
Continuous Service as a result of his or her “disability” within the
meaning of Section 22(e)(3) of the Code, the Participant shall have the
right to exercise an Option at any time within one year following such
termination to the extent the Participant was entitled to exercise such
Option at the date of such termination.

     (iii) Retirement. In the event of termination of a Participant’s
Continuous Service as a result of Participant’s retirement, the
Participant shall have the right to exercise the Option at any time
within one year following such termination to the extent the Participant
was entitled to exercise such Option at the date of such termination.

     (iv) Death. In the event of the death of a Participant during the
period of Continuous Service since the Grant Date of an Option, or within
thirty days following termination of the Participant’s Continuous
Service, the Option may be exercised, at any time within one year
following the date of the Participant’s death, by the Participant’s
estate or by a person who acquired the right to exercise the Option

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EXHIBIT 10.1

by bequest or inheritance, but only to the extent the right to
exercise the Option had vested at the date of death or, if earlier, the
date the Participant’s Continuous Service terminated.

     (v) Cause. If the Committee determines that a Participant’s
Continuous Service terminated due to Cause, the Participant shall
immediately forfeit the right to exercise any Option, and it shall be
considered immediately null and void.

     (i) Reverse Vesting. The Plan Administrator in its discretion may allow a
Participant to exercise unvested Options, in which case the Shares then issued
shall be Restricted Share Units having analogous vesting restrictions to the
unvested Options.

     (j) Buyout Provisions. The Committee may at any time offer to buy out an
Option, in exchange for a payment in cash or Shares, based on such terms and
conditions as the Committee shall establish and communicate to the Participant
at the time that such offer is made. In addition, if the Fair Market Value for
Shares subject to an Option is more than 33% below their exercise price for
more than 30 consecutive business days, the Committee may unilaterally
terminate and cancel the Option either (i) by paying the Participant, in cash
or Shares, an amount not less than the Black-Scholes value of the vested
portion of the Option, or (ii) by irrevocably committing to grant a new Option,
on a designated date more than six months after such termination and
cancellation of such Option (but only if the Participant’s Continuous Service
has not terminated prior to such designated date), on substantially the same
terms as the cancelled Option, provided that the per Share exercise price for
the new Option shall equal the per Share Fair Market Value of a Share on the
date the new grant occurs.

7. Share Appreciate Rights (SARs)

     (a) Grants. The Committee may in its discretion grant Share Appreciation
Rights to any Eligible Person, in any of the following forms:

     (i) SARs related to Options. The Committee may grant SARs either
concurrently with the grant of an Option or with respect to an
outstanding Option, in which case the SAR shall extend to all or a
portion of the Shares covered by the related Option. An SAR shall
entitle the Participant who holds the related Option, upon exercise of
the SAR and surrender of the related Option, or portion thereof, to the
extent the SAR and related Option each were previously unexercised, to
receive payment of an amount determined pursuant to Section 7(e) below.
Any SAR granted in connection with an ISO will contain such terms as may
be required to comply with the provisions of Section 422 of the Code and
the regulations promulgated thereunder.

     (ii) SARs Independent of Options. The Committee may grant SARs
which are independent of any Option subject to such conditions as the
Committee may in its discretion determine, which conditions will be set
forth in the applicable Award Agreement.

     (iii) Limited SARs. The Committee may grant SARs exercisable only
upon or in respect of a Change in Control or any other specified event,
and such limited SARs may relate to or operate in tandem or combination
with or substitution for Options or other SARs, or on a stand-alone
basis, and may be payable in cash or Shares based on the spread between
the exercise price of the SAR, and (A) a price based upon or equal to the
Fair Market Value of the Shares during a specified period, at a specified
time within a specified period before, after or including the date of
such event, or (B) a price related to consideration payable to Company’s
shareholders generally in connection with the event.

     (b) Exercise Price. The per Share exercise price of an SAR shall be
determined in the sole discretion of the Committee, shall be set forth in the
applicable Award Agreement, and shall be no less than 85% of the Fair Market
Value of one Share. The exercise price of an SAR related to an Option shall be
the same as the exercise price of the related Option. The exercise price of an
SAR shall be subject to the special rules on pricing contained in paragraphs
(iii) and (iv) of Section 6(d) hereof.

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EXHIBIT 10.1

     (c) Exercise of SARs. Unless the Award Agreement otherwise provides, an
SAR related to an Option will be exercisable at such time or times, and to the
extent, that the related Option will be exercisable. An SAR may not have a
term exceeding ten years from its Grant Date. An SAR granted independently of
any other Award will be exercisable pursuant to the terms of the Award
Agreement. Whether an SAR is related to an Option or is granted independently,
the SAR may only be exercised when the Fair Market Value of the Shares
underlying the SAR exceeds the exercise price of the SAR.

     (d) Effect on Available Shares. To the extent that an SAR is exercised,
only the actual number of delivered Shares (if any) will be charged against the
maximum number of Shares that may be delivered pursuant to Awards under this
Plan. The number of Shares subject to the SAR and the related Option of the
Participant will, however, be reduced by the number of underlying Shares as to
which the exercise relates, unless the Award Agreement otherwise provides.

     (e) Payment. Upon exercise of an SAR related to an Option and the
attendant surrender of an exercisable portion of any related Award, the
Participant will be entitled to receive payment of an amount determined by
multiplying –

     (i) the excess of the Fair Market Value of a Share on the date of
exercise of the SAR over the exercise price per Share of the SAR, by

     (ii) the number of Shares with respect to which the SAR has been
exercised.

Notwithstanding the foregoing, an SAR granted independently of an Option may
limit the amount payable to the Participant to a percentage, specified in the
Award Agreement but not exceeding one-hundred percent (100%), of the amount
determined pursuant to the preceding sentence.

     (f) Form and Terms of Payment. Subject to Applicable Law, the Committee
may, in its sole discretion, settle the amount determined under Section 7(e)
above solely in cash, solely in Shares (valued at their Fair Market Value on
the date of exercise of the SAR), or partly in cash and partly in Shares. In
any event, cash shall be paid in lieu of fractional Shares. Absent a contrary
determination by the Committee, all SARs shall be settled in cash as soon as
practicable after exercise. Notwithstanding the foregoing, the Committee may,
in an Award Agreement, determine the maximum amount of cash or Shares or
combination thereof that may be delivered upon exercise of an SAR.

     (g) Termination of Employment Relationship. The Committee shall establish
and set forth in the applicable Award Agreement the terms and conditions on
which an SAR shall remain exercisable, if at all, following termination of a
Participant’s Continuous Service. The provisions of Section 6(h) above shall
apply to the extent an Award Agreement does not specify the terms and
conditions upon which an SAR shall terminate when there is a termination of a
Participant’s Continuous Service.

     (h) Repricing and Buy-out. The Committee has the same discretion to
reprice and to buy-out SARs as it has to take such actions with respect to
Options.

8. Restricted Shares and Restricted Share Units

     (a) Grants. The Committee may in its discretion grant restricted shares
(“Restricted Shares”) to any Eligible Person and shall evidence such grant in
an Award Agreement that is delivered to the Participant which sets forth the
number of Restricted Shares, the purchase price for such Restricted Shares (if
any) and the terms upon which the Restricted Shares may become vested. In
addition, the Company may in its discretion grant the right to receive Shares
after certain vesting requirements are met (“Restricted Share Units”) to any
Eligible Person and shall evidence such grant in an Award Agreement that is
delivered to the Participant which sets forth the number of Shares that the
Participant shall be entitled to receive upon vesting and the terms upon which
the Shares subject to a Restricted Share Unit may become vested. The Committee
may condition any Award of Restricted Shares or

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EXHIBIT 10.1

Restricted Share Units to a Participant on receiving from the Participant
such further assurances and documents as the Committee may require to enforce
the restrictions.

     (b) Vesting and Forfeiture. The Committee shall set forth in an Award
Agreement granting Restricted Shares or Restricted Share Units, the terms and
conditions under which the Participant’s interest in the Restricted Shares or
the Shares subject to Restricted Share Units will become vested. Except as set
forth in the applicable Award Agreement or the Committee otherwise determines,
upon termination of a Participant’s Continuous Service for any other reason,
the Participant shall forfeit his or her Restricted Shares and Restricted Share
Units; provided that if a Participant purchases the Restricted Shares and
forfeits them for any reason, the Company shall return the purchase price to
the Participant only if and to the extent set forth in an Award Agreement.

     (c) Issuance of Restricted Shares Prior to Vesting. The Company shall
issue stock certificates that evidence Restricted Shares pending the lapse of
applicable restrictions, and that bear a legend making appropriate reference to
such restrictions. Except as set forth in the applicable Award Agreement or
the Committee otherwise determines, the Company or a third party that the
Company designates shall hold such Restricted Shares and any dividends that
accrue with respect to Restricted Shares pursuant to Section 8(e) below.

     (d) Issuance of Shares upon Vesting. As soon as practicable after vesting
of a Participant’s Restricted Shares (or Shares underlying Restricted Share
Units) and the Participant’s satisfaction of applicable tax withholding
requirements, the Company shall release to the Participant, free from the
vesting restrictions, one Share for each vested Restricted Share (or issue one
Share free of the vesting restriction for each vested Restricted Share Unit),
unless an Award Agreement provides otherwise. No fractional shares shall be
distributed, and cash shall be paid in lieu thereof.

     (e) Dividends payable on Vesting. Whenever Shares are issued to a
Participant or duly-authorized transferee under Section 8(d) above pursuant to
the vesting of Restricted Shares or the Shares underlying Restricted Share
Units, such Participant or duly-authorized transferee shall also be entitled to
receive, with respect to each Share issued, an amount equal to any cash
dividends (plus simple interest at a rate of five percent per annum, or such
other reasonable rate as the Committee may determine) and a number of Shares
equal to any stock dividends, which were declared and paid to the holders of
Shares between the Grant Date and the date such Share is issued.

     (f) Section 83(b) Elections. If a Participant who has received Restricted
Share Units provides the Committee with written notice of his or her intention
to make an election under Section 83(b) of the Code with respect to the Shares
subject to such Restricted Share Units (the “Section 83(b) Election”), the
Committee may in its discretion convert the Participant’s Restricted Share
Units into Restricted Shares, on a one-for-one basis, in full satisfaction of
the Participant’s Restricted Share Unit Award.

     (g) Deferral Elections. At any time within the calendar year in which a
Participant who is a member of a select group of management or highly
compensated employees (within the meaning of the ERISA) receives an Award of
either Restricted Shares or Restricted Share Units, the Committee may permit
the Participant to irrevocably elect, on a form provided by and acceptable to
the Committee, to defer the receipt of all or a percentage of the Shares that
would otherwise be transferred to the Participant upon the vesting of such
Award. If the Participant makes this election, the Shares subject to the
election, and any associated dividends and interest, shall be credited to an
account established pursuant to Section 9 hereof on the date such Shares would
otherwise have been released or issued to the Participant pursuant to Section
8(d) above. Notwithstanding the foregoing, Shares with respect to which a
Participant makes a Section 83(b) Election shall not be eligible for deferral
pursuant to Section 9 below.

9. Deferred Share Units

     (a) Elections to Defer. The Committee may permit any Eligible Person who
is a Director or member of a select group of management or highly compensated
employees (within the meaning of the ERISA) to irrevocably elect, on a form
provided by and acceptable to the Committee (the “Election Form”), to forego
the receipt of cash or other compensation (including Restricted Shares for
which a Section 83(b) Election has not been

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EXHIBIT 10.1

made, and Shares subject to Restricted Share Units), and in lieu thereof
to have the Company credit to an internal Plan account (the “Account”) a number
of deferred share units (“Deferred Share Units”) having a Fair Market Value
equal to the Shares and other compensation deferred. These credits will be
made at the end of each calendar month during which compensation is deferred.
Each Election Form shall take effect five business days after its delivery to
the Company, unless during such five business day period the Company sends the
Participant a written notice explaining why the Election Form is invalid.
Notwithstanding the foregoing sentence, Election Forms shall be ineffective
with respect to any compensation that a Participant earns before the date on
which the Company receives the Election Form.

     (b) Vesting. Each Participant shall be 100% vested at all times in any
Shares subject to Deferred Share Units.

     (c) Issuances of Shares. The Company shall provide a Participant with one
Share for each Deferred Share Unit in five substantially equal annual
installments that are issued before the last day of each of the five calendar
years that end after the date on which the Participant’s Continuous Service
terminates, unless –

     (i) the Participant has properly elected a different form of
distribution, on a form approved by the Committee that permits the
Participant to select any combination of a lump sum and annual
installments that are completed within ten years following termination of
the Participant’s Continuous Service, and

     (ii) the Company has received the Participant’s distribution
election form either more than 90 days before a Change in Control, or
more than one year before the date on which the Participant’s Continuous
Service terminates for any reason other than death, or before the
Participant’s death.

Fractional shares shall not be issued, and instead shall be paid out in cash.

     (d) Crediting of Dividends. Whenever Shares are issued to a Participant
pursuant to Section 9(c) above, such Participant shall also be entitled to
receive, with respect to each Share issued, a cash amount equal to any cash
dividends (plus simple interest at a rate of five percent per annum, or such
other reasonable rate as the Committee may determine), and a number of Shares
equal to any stock dividends which were declared and paid to the holders of
Shares between the Grant Date and the date such Share is issued.

     (e) Hardship Withdrawals. In the event a Participant suffers an
unforeseeable hardship within the contemplation of this Section 9(e) , the
Participant may apply to the Company for an immediate distribution of all or a
portion of the Participant’s Deferred Share Units. The hardship must result
from a sudden and unexpected illness or accident of the Participant or a
dependent of the Participant, casualty loss of property, or other similar
conditions beyond the control of the Participant. Examples of purposes which
are not considered hardships include post-secondary school expenses or the
desire to purchase a residence. In no event will a distribution be made to the
extent the hardship could be relieved through reimbursement or compensation by
insurance or otherwise, or by liquidation of the Participant’s nonessential
assets to the extent such liquidation would not itself cause a severe financial
hardship. The amount of any distribution hereunder shall be limited to the
amount necessary to relieve the Participant’s financial hardship. The
Committee shall determine whether a Participant has a qualifying hardship and
the amount which qualifies for distribution, if any. The Committee may require
evidence of the purpose and amount of the need, and may establish such
application or other procedures as it deems appropriate.

     (f) Unsecured Rights to Deferred Compensation. A Participant’s right to
Deferred Share Units shall at all times constitute an unsecured promise of the
Company to pay benefits as they come due. The right of the Participant or the
Participant’s duly-authorized transferee to receive benefits hereunder shall be
solely an unsecured claim against the general assets of the Company. Neither
the Participant nor the Participant’s duly-authorized transferee shall have any
claim against or rights in any specific assets, shares, or other funds of the
Company.

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EXHIBIT 10.1

10. Performance Awards

     (a) Performance Units. The Committee may in its discretion grant
Performance Units to any Eligible Person and shall evidence such grant in an
Award Agreement that is delivered to the Participant which sets forth the terms
and conditions of the Award. A Performance Unit is an Award which is based on
the achievement of specific goals with respect to the Company or any Affiliate
or individual performance of the Participant, or a combination thereof, over a
specified period of time. The maximum Performance Unit compensation that may
be paid to any one Participant with respect to any one Performance Period
(hereinafter defined) shall be 125,000 Shares and $2,500,000 in cash.

     (b) Performance Compensation Awards. The Committee may, at the time of
grant of a Performance Unit, designate such Award as a “Performance
Compensation Award” in order that such Award constitutes “qualified
performance-based compensation” under Code Section 162(m), in which event the
Committee shall have the power to grant such Performance Compensation Award
upon terms and conditions that qualify it as “qualified performance-based
compensation” within the meaning of Code Section 162(m). With respect to each
such Performance Compensation Award, the Committee shall establish, in writing
within the time required under Code Section 162(m), a “Performance Period,”
“Performance Measure(s)”, and “Performance Formula(e)” (each such term being
hereinafter defined). Once established for a Performance Period, the
Performance Measure(s) and Performance Formula (e) shall not be amended or
otherwise modified to the extent such amendment or modification would cause the
compensation payable pursuant to the Award to fail to constitute qualified
performance-based compensation under Code Section 162(m).

A Participant shall be eligible to receive payment in respect of a Performance
Compensation Award only to the extent that the Performance Measure(s) for such
Award are achieved and the Performance Formula(e) as applied against such
Performance Measure(s) determines that all or some portion of such
Participant’s Award has been earned for the Performance Period. As soon as
practicable after the close of each Performance Period, the Committee shall
review and certify in writing whether, and to what extent, the Performance
Measure(s) for the Performance Period have been achieved and, if so, determine
and certify in writing the amount of the Performance Compensation Award to be
paid to the Participant and, in so doing, may use negative discretion to
decrease, but not increase, the amount of the Award otherwise payable to the
Participant based upon such performance. The maximum Performance Compensation
Award for any one Participant for any one Performance Period shall be 125,000
Shares and $2,500,000 in cash.

     (c) Definitions.

     (i) “Performance Formula” means, for a Performance Period, one or
more objective formulas or standards established by the Committee for
purposes of determining whether or the extent to which an Award has been
earned based on the level of performance attained or to be attained with
respect to one or more Performance Measure(s). Performance Formulae may
vary from Performance Period to Performance Period and from Participant
to Participant and may be established on a stand-alone basis, in tandem
or in the alternative.

     (ii) “Performance Measure” means one or more of the following
selected by the Committee to measure Company, Affiliate, and/or business
unit performance for a Performance Period, whether in absolute or
relative terms (including, without limitation, terms relative to a peer
group or index): basic, diluted, or adjusted earnings per share; sales
or revenue; earnings before interest, taxes, and other adjustments (in
total or on a per share basis); basic or adjusted net income; returns on
equity, assets, capital, revenue or similar measure; economic value
added; working capital; total shareholder return; and product
development, product market share, research, licensing, litigation, human
resources, information services, mergers, acquisitions, sales of assets
of Affiliates or business units. Each such measure shall be to the
extent applicable, determined in accordance with generally accepted
accounting principles as consistently applied by the Company (or such other standard applied by the Committee) and,
if so determined by the Committee, and in the case of a Performance
Compensation Award, to the extent permitted under Code Section 162(m),
adjusted to omit the effects of extraordinary items, gain or loss on the
disposal of a

10

 

EXHIBIT 10.1

business segment, unusual or infrequently occurring events and
transactions and cumulative effects of changes in accounting principles.
Performance Measures may vary from Performance Period to Performance
Period and from Participant to Participant, and may be established on a
stand-alone basis, in tandem or in the alternative.

     (iii) “Performance Period” means one or more periods of time (of not
less than one fiscal year of the Company), as the Committee may
designate, over which the attainment of one or more Performance
Measure(s) will be measured for the purpose of determining a
Participant’s rights in respect of an Award.

11. Taxes

     (a) General. As a condition to the issuance or distribution of Shares
pursuant to the Plan, the Participant (or in the case of the Participant’s
death, the person who succeeds to the Participant’s rights) shall make such
arrangements as the Company may require for the satisfaction of any applicable
federal, state, local or foreign withholding tax obligations that may arise in
connection with the Award and the issuance of Shares. The Company shall not be
required to issue any Shares until such obligations are satisfied. If the
Committee allows the withholding or surrender of Shares to satisfy a
Participant’s tax withholding obligations, the Committee shall not allow Shares
to be withheld in an amount that exceeds the minimum statutory withholding
rates for federal and state tax purposes, including payroll taxes.

     (b) Default Rule for Employees. In the absence of any other arrangement,
an Employee shall be deemed to have directed the Company to withhold or collect
from his or her cash compensation an amount sufficient to satisfy such tax
obligations from the next payroll payment otherwise payable after the date of
the exercise of an Award.

     (c) Special Rules. In the case of a Participant other than an Employee (or
in the case of an Employee where the next payroll payment is not sufficient to
satisfy such tax obligations, with respect to any remaining tax obligations),
in the absence of any other arrangement and to the extent permitted under the
Applicable Law, the Participant shall be deemed to have elected to have the
Company withhold from the Shares or cash to be issued pursuant to an Award that
number of Shares having a Fair Market Value determined as of the applicable Tax
Date (as defined below) equal to the amount required to be withheld. For
purposes of this Section 11, the Fair Market Value of the Shares to be withheld
shall be determined on the date that the amount of tax to be withheld is to be
determined under the Applicable Law (the “Tax Date”).

     (d) Surrender of Shares. If permitted by the Committee, in its discretion,
a Participant may satisfy the minimum applicable tax withholding and employment
tax obligations associated with an Award by surrendering Shares to the Company
(including Shares that would otherwise be issued pursuant to the Award) that
have a Fair Market Value determined as of the applicable Tax Date equal to the
amount required to be withheld. In the case of Shares previously acquired from
the Company that are surrendered under this Section 11, such Shares must have
been owned by the Participant for more than six months on the date of surrender
(or such longer period of time the Company may in its discretion require).

12. Non-Transferability of Awards

     (a) General. Except as set forth in this Section 12, or as otherwise
approved by the Committee for a select group of management or highly
compensated Employees, Awards may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or by the laws of
descent or distribution. The designation of a beneficiary by a Participant
will not constitute a transfer. An Award may be exercised, during the lifetime of the holder of an Award,
only by such holder, the duly-authorized legal representative of a disabled
Participant, or a transferee permitted by this Section 12.

     (b) Limited Transferability Rights. Notwithstanding anything else in this
Section 12, the Committee may in its discretion provide in an Award Agreement
that the Award may be transferred by instrument to an inter

11

 

EXHIBIT 10.1

vivos or testamentary trust (or other entity) in which the Award is to be
passed to beneficiaries upon the death of the trustor (settlor), or by gift to
charitable institutions, the Participant’s “Immediate Family” (as defined
below), on such terms and conditions as the Committee deems appropriate.
“Immediate Family” means 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,
and shall include adoptive relationships.

13. Adjustments Upon Changes in Capitalization, Merger or Certain Other Transactions

     (a) Changes in Capitalization. The Committee may equitably adjust the
number of Shares covered by each outstanding Award, and the number of Shares
that have been authorized for issuance under the Plan but as to which no Awards
have yet been granted or that have been returned to the Plan upon cancellation,
forfeiture, or expiration of an Award, as well as the price per Share covered
by each such outstanding Award, to reflect any increase or decrease in the
number of issued Shares resulting from a stock-split, reverse stock-split,
stock dividend, combination, recapitalization or reclassification of the
Shares, or any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company. In the event of any
such transaction or event, the Committee may provide in substitution for any or
all outstanding Options under the Plan such alternative consideration
(including securities of any surviving entity) as it may in good faith
determine to be equitable under the circumstances and may require in connection
therewith the surrender of all Options so replaced. In any case, such
substitution of securities shall not require the consent of any person who is
granted options pursuant to the Plan. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be required to be made with respect to, the number or
price of Shares subject to any Award.

     (b) Dissolution or Liquidation. In the event of the dissolution or
liquidation of the Company other than as part of a Change of Control, each
Award will terminate immediately prior to the consummation of such action,
subject to the discretion of the Committee to exercise any discretion
authorized in the case of a Change in Control.

     (c) Change in Control. In the event of a Change in Control, the vesting
of Awards shall accelerate so that Awards shall immediately fully vest (and,
with respect to Options and SARs, become fully exercisable) as to the Shares
subject to the Award, and any repurchase right applicable to such Shares shall
lapse in full. The acceleration of vesting and lapse of repurchase rights
provided for in the previous sentence shall occur immediately prior to the
effective date of the transaction giving rise to the Change in Control.

     (d) Certain Distributions. In the event of any distribution to the
Company’s shareholders of securities of any other entity or other assets (other
than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Committee may, in its discretion,
appropriately adjust the price per Share covered by each outstanding Award to
reflect the effect of such distribution.

14. Time of Granting Awards.

     The date of grant (“Grant Date”) of an Award shall be the date on which
the Committee makes the determination granting such Award or such other date as
is determined by the Committee, provided that in the case of an ISO, the Grant
Date shall be the later of the date on which the Committee makes the
determination granting such ISO or the date of commencement of the
Participant’s employment relationship with the Company.

15. Modification of Awards and Substitution of Options.

     (a) Modification, Extension, and Renewal of Awards. Within the
limitations of the Plan, the Committee may modify an Award, accelerate the rate
at which an Option or SAR may be exercised (including without limitation
permitting an Option or SAR to be exercised in full without regard to the
installment or vesting provisions of the applicable Award Agreement or whether
the Option or SAR is at the time exercisable, to the extent it has not
previously been exercised), accelerate the vesting of any Award, extend or
renew outstanding Awards, or

12

 

EXHIBIT 10.1

accept the cancellation of outstanding Awards to the extent not previously
exercised either for the granting of new Awards or for other consideration in
substitution or replacement thereof.

     (b) Substitution of Options. Notwithstanding any inconsistent provisions
or limits under the Plan, in the event the Company or an Affiliate acquires
(whether by purchase, merger or otherwise) all or substantially all of
outstanding capital stock or assets of another corporation or in the event of
any reorganization or other transaction qualifying under Section 424 of the
Code, the Committee may, in accordance with the provisions of that Section,
substitute Options for options under the plan of the acquired company provided
(i) the excess of the aggregate fair market value of the shares subject to an
option immediately after the substitution over the aggregate option price of
such shares is not more than the similar excess immediately before such
substitution and (ii) the new Option does not give persons additional benefits,
including any extension of the exercise period.

16. Term of Plan.

     The Plan shall continue in effect for a term of ten (10) years from its
effective date as determined under Section 20 below, unless the Plan is sooner
terminated under Section 17 below.

17. Amendment and Termination of the Plan.

     (a) Authority to Amend or Terminate. Subject to Applicable Laws, the
Board may from time to time amend, alter, suspend, discontinue, or terminate
the Plan.

     (b) Effect of Amendment or Termination. No amendment, suspension, or
termination of the Plan shall materially and adversely affect Awards already
granted unless either it relates to an adjustment pursuant to Section 13 above,
or it is otherwise mutually agreed between the Participant and the Committee,
which agreement must be in writing and signed by the Participant and the
Company. Notwithstanding the foregoing, the Committee may amend the Plan to
eliminate provisions which are no longer necessary as a result of changes in
tax or securities laws or regulations, or in the interpretation thereof.

18. Conditions Upon Issuance of Shares.

     Notwithstanding any other provision of the Plan or any agreement entered
into by the Company pursuant to the Plan, the Company shall not be obligated,
and shall have no liability for failure, to issue or deliver any Shares under
the Plan unless such issuance or delivery would comply with Applicable Law,
with such compliance determined by the Company in consultation with its legal
counsel.

19. Reservation of Shares.

     The Company, during the term of this Plan, will at all times reserve and
keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

20. Effective Date.

     This Plan shall become effective on the date of its approval by the Board;
provided that this Plan shall be submitted to the Company’s shareholders for
approval, and if not approved by the shareholders within one year from the date
of approval by the Board, this Plan and any Awards shall be null, void, and of
no force and effect. Awards granted under this Plan before approval of this
Plan by the shareholders shall be granted subject to such approval and no
Shares shall be distributed before such approval.

21. Controlling Law.

     All disputes relating to or arising from the Plan shall be governed by the
internal substantive laws (and not the laws of conflicts of laws) of the State
of Tennessee, to the extent not preempted by United States federal law. If

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EXHIBIT 10.1

any provision of this Plan is held by a court of competent jurisdiction to be
invalid and unenforceable, the remaining provisions shall continue to be fully
effective.

22. Laws And Regulations.

     (a) U.S. Securities Laws. This Plan, the grant of Awards, and the
exercise of Options and SARs under this Plan, and the obligation of the Company
to sell or deliver any of its securities (including, without limitation,
Options, Restricted Shares, Restricted Share Units, Deferred Share Units, and
Shares) under this Plan shall be subject to all Applicable Law. In the event
that the Shares are not registered under the Securities Act of 1933, as amended
(the “Act”), or any applicable state securities laws prior to the delivery of
such Shares, the Company may require, as a condition to the issuance thereof,
that the persons to whom Shares are to be issued represent and warrant in
writing to the Company that such Shares are being acquired by him or her for
investment for his or her own account and not with a view to, for resale in
connection with, or with an intent of participating directly or indirectly in,
any distribution of such Shares within the meaning of the Act, and a legend to
that effect may be placed on the certificates representing the Shares.

     (b) Other Jurisdictions. To facilitate the making of any grant of an
Award under this Plan, the Committee may provide for such special terms for
Awards to Participants who are foreign nationals or who are employed by the
Company or any Affiliate outside of the United States of America as the
Committee may consider necessary or appropriate to accommodate differences in
local law, tax policy or custom. The Company may adopt rules and procedures
relating to the operation and administration of this Plan to accommodate the
specific requirements of local laws and procedures of particular countries.
Without limiting the foregoing, the Company is specifically authorized to adopt
rules and procedures regarding the conversion of local currency, taxes,
withholding procedures and handling of stock certificates which vary with the
customs and requirements of particular countries. The Company may adopt
sub-plans applicable to particular locations and countries.

23. No Shareholder Rights. Neither a Participant nor any transferee of a
Participant shall have any rights as a shareholder of the Company with respect
to any Shares underlying any Award until the date of issuance of a share
certificate to a Participant or a transferee of a Participant for such Shares
in accordance with the Company’s governing instruments and Applicable Law.
Prior to the issuance of Shares pursuant to an Award, a Participant shall not
have the right to vote or to receive dividends or any other rights as a
shareholder with respect to the Shares underlying the Award, notwithstanding
its exercise in the case of Options and SARs. No adjustment will be made for a
dividend or other right that is determined based on a record date prior to the
date the stock certificate is issued, except as otherwise specifically provided
for in this Plan.

24. No Employment Rights. The Plan shall not confer upon any Participant any right
to continue an employment, service or consulting relationship with the Company,
nor shall it affect in any way a Participant’s right or the Company’s right to
terminate the Participant’s employment, service, or consulting relationship at
any time, with or without Cause.

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EXHIBIT 10.1

GREENE COUNTY BANCSHARES, INC.

2004 LONG-TERM INCENTIVE PLAN

Exhibit A: Definitions

As used in the Plan, the following definitions shall apply:

“Affiliate” means any entity, including any “parent corporation” or “subsidiary
corporation” within the meaning of Section 424 of the Code, which together with
the Company is under common control within the meaning of Section 414 of the
Code.

“Applicable Law” means the legal requirements relating to the administration of
options and share-based plans under applicable U.S. federal and state laws, the
Code, any applicable stock exchange or automated quotation system rules or
regulations, and the applicable laws of any other country or jurisdiction where
Awards are granted, as such laws, rules, regulations and requirements shall be
in place from time to time.

“Award” means any award made pursuant to the Plan, including awards made in the
form of an Option, an SAR, a Restricted Share, a Restricted Share Unit, a
Deferred Share Unit and a Performance Award, or any combination thereof,
whether alternative or cumulative, authorized by and granted under this Plan.

“Award Agreement” means any written document setting forth the terms of an
Award that has been authorized by the Committee. The Committee shall determine
the form or forms of documents to be used, and may change them from time to
time for any reason.

“Board” means the Board of Directors of the Company.

“Cause” for termination of a Participant’s Continuous Service will exist if the
Participant is terminated from employment or other service with the Company or
an Affiliate for any of the following reasons: (i) the Participant’s willful
and failure to substantially perform his or her duties and responsibilities to
the Company or deliberate violation of a material Company policy; (ii) the
Participant’s commission of any material act or acts of fraud, embezzlement,
dishonesty, or other willful misconduct; (iii) the Participant’s material
unauthorized use or disclosure of any proprietary information or trade secrets
of the Company or any other party to whom the Participant owes an obligation of
nondisclosure as a result of his or her relationship with the Company; or (iv)
Participant’s willful and material breach of any of his or her obligations
under any written agreement or covenant with the Company.

The Committee shall in its discretion determine whether or not a Participant is
being terminated for Cause. The Committee’s determination shall, unless
arbitrary and capricious, be final and binding on the Participant, the Company,
and all other affected persons. The foregoing definition does not in any way
limit the Company’s ability to terminate a Participant’s employment or
consulting relationship at any time, and the term “Company” will be interpreted
herein to include any Affiliate or successor thereto, if appropriate.

     “Change in Control” means any of the following:

     (a) Approval by the stockholders of the Company of the dissolution or
liquidation of the Company;

     (b) Approval by the stockholders of the Company of an agreement to merge
or consolidate, or otherwise reorganize, with or into one or more entities that
are not Affiliates, as a result of which less than 50% of

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EXHIBIT 10.1

the outstanding voting securities of the surviving or resulting entity
immediately after the reorganization are, or will be, owned, directly or
indirectly, by stockholders of the Company immediately before such
reorganization (assuming for purposes of such determination that there is no
change in the record ownership of the Company’s securities from the record date
for such approval until such reorganization and that such record owners hold no
securities of the other parties to such reorganization), but including in such
determination any securities of the other parties to such reorganization held
by Affiliates of the Company);

     (c) Approval by the stockholders of the Company of the sale of
substantially all of the Company’s business and/or assets to a person or entity
that is not an Affiliate of the Company;

     (d) Any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act but excluding any person described in and satisfying the
conditions of Rule 13d-1(b)(1) thereunder), other than a person that is a
stockholder of the Company on the Effective Date, becomes the beneficial owner
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing more than 20% of the combined voting
power of the Company’s then outstanding securities entitled to then vote
generally in the election of directors of the Company; or

     (e) During any period not longer than two consecutive years, individuals
who at the beginning of such period constituted the Board cease to constitute
at least a majority thereof, unless the election, or the nomination for
election by the Company’s stockholders, of each new Board member was approved
by a vote of at least three-fourths of the Board members then still in office
who were Board members at the beginning of such period (including for these
purposes, new members whose election or nomination was so approved).

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

“Committee” means one or more committees or subcommittees of the Board
appointed by the Board to administer the Plan in accordance with Section 4
above. With respect to any decision involving an Award intended to satisfy the
requirements of Section 162(m) of the Code, the Committee shall consist of two
or more Directors of the Company who are “outside directors” within the meaning
of Section 162(m) of the Code.

“Company” means Greene County Bancshares, Inc., a Tennessee corporation.

“Continuous Service” means the absence of any interruption or termination of
service as an Employee, Director, or Consultant. Continuous Service shall not
be considered interrupted in the case of: (i) sick leave; (ii) military leave;
(iii) any other leave of absence approved by the Committee, provided that such
leave is for a period of not more than 90 days, unless reemployment upon the
expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to Company policy adopted from time to time; (iv)
changes in status from Director to advisory director or emeritus status; or
(iv) in the case of transfers between locations of the Company or between the
Company, its Affiliates or their respective successors. Changes in status
between service as an Employee and Director will not constitute an interruption
of Continuous Service.

“Deferred Share Units” mean Awards pursuant to Section 9 of the Plan.

“Director” means a member of the Board, or a member of the board of directors
of an Affiliate.

“Eligible Person” means any Director or Employee and includes non-Employees to
whom an offer of employment has been extended.

“Employee” means any person whom the Company or any Affiliate classifies as an
employee (including an officer) for employment tax purposes. The payment by
the Company of a director’s fee to a Director shall not be sufficient to
constitute “employment” of such Director by the Company.

16

 

EXHIBIT 10.1

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Fair Market Value” means, as of any date (the “Determination Date”) means: (i)
the closing price of a Share on the New York Stock Exchange or the American
Stock Exchange (collectively, the “Exchange”), on the Determination Date, or,
if shares were not traded on the Determination Date, then on the nearest
preceding trading day during which a sale occurred; or (ii) if such stock is
not traded on the Exchange but is quoted on NASDAQ or a successor quotation
system, (A) the last sales price (if the stock is then listed as a National
Market Issue under The Nasdaq National Market System) or (B) the mean between
the closing representative bid and asked prices (in all other cases) for the
stock on the Determination Date as reported by NASDAQ or such successor
quotation system; or (iii) if such stock is not traded on the Exchange or
quoted on NASDAQ but is otherwise traded in the over-the-counter, the mean
between the representative bid and asked prices on the Determination Date; or
(iv) if subsections (i)-(iii) do not apply, the fair market value established
in good faith by the Board.

“Grant Date” has the meaning set forth in Section 14 of the Plan.

“Incentive Share Option or ISO” hereinafter means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code, as
designated in the applicable Award Agreement.

“Involuntary Termination” means termination of a Participant’s Continuous
Service under the following circumstances occurring on or after a Change in
Control: (i) termination without Cause by the Company or an Affiliate or
successor thereto, as appropriate; or (ii) voluntary termination by the
Participant within 60 days following (A) a material reduction in the
Participant’s job responsibilities, provided that neither a mere change in
title alone nor reassignment to a substantially similar position shall
constitute a material reduction in job responsibilities; (B) an involuntary
relocation of the Participant’s work site to a facility or location more than
50 miles from the Participant’s principal work site at the time of the Change
in Control; or (C) a material reduction in Participant’s total compensation
other than as part of an reduction by the same percentage amount in the
compensation of all other similarly-situated Employees and Directors.

“Non-ISO” means an Option not intended to qualify as an ISO, as designated in
the applicable Award Agreement.

“Option” means any stock option granted pursuant to Section 6 of the Plan.

“Participant” means any holder of one or more Awards, or the Shares issuable or
issued upon exercise of such Awards, under the Plan.

"Performance Awards” mean Performance Units and Performance Compensation Awards
granted pursuant to Section 10.

“Performance Compensation Awards” mean Awards granted pursuant to Section 10(b)
of the Plan.

“Performance Unit” means Awards granted pursuant to Section 10(a) of the Plan
which may be paid in cash, in Shares, or such combination of cash and Shares as
the Committee in its sole discretion shall determine.

“Plan” means this Greene County Bancshares, Inc. 2004 Long-term Incentive Plan.

“Reporting Person” means an officer, Director, or greater than ten percent
shareholder of the Company within the meaning of Rule 16a-2 under the Exchange
Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange
Act.

“Restricted Shares” mean Shares subject to restrictions imposed pursuant to
Section 8 of the Plan.

“Restricted Share Units” mean Awards pursuant to Section 8 of the Plan.

17

 

EXHIBIT 10.1

“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended
from time to time, or any successor provision.

“SAR” or “Share Appreciation Right” means Awards granted pursuant to Section 7
of the Plan.

“Share” means an ordinary voting share of the Company, as adjusted in
accordance with Section 13 of the Plan.

“Ten Percent Holder” means a person who owns stock representing more than ten
percent (10%) of the combined voting power of all classes of stock of the
Company or any Affiliate.

18<PAGE>

                                                                     EXHIBIT 4.2

                         REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of the 15th day of October, 1998, by and among CTL
ImmunoTherapies Corp., an Ontario corporation (the "Company"), Medical Research
Group, LLC, a limited liability company, McLean Watson Advisory Inc., an Ontario
corporation, and Alfred E. Mann (said parties other than the Company being
referred to collectively as the "Purchasers").

                                    RECITALS

         A.       The Company and the Purchasers have entered into a Line of
Credit Agreement concurrently with the execution and delivery of this Agreement
(the "Credit Agreement") pursuant to which the Purchasers have agreed to make
available to the Company a line of credit aggregating $3 million. The
indebtedness under the Credit Agreement is convertible into Series A Preferred
Shares ("Preferred Shares") and, under certain circumstances, into Class A
Voting Common Shares of the Company ("Common Shares"). The Preferred Shares are
themselves convertible into Common Shares.

         B.       The parties now desire to enter into this Agreement to
provide, with respect to the Common Shares issuable upon conversion of the
indebtedness under the Credit Agreement and/or upon conversion of the Preferred
Shares, certain rights with respect to registration under the U. S. Securities
Act of 1933 or qualification under the analogous provisions of Canadian Law, all
on the terms and subject to the conditions set forth in this Agreement.

                                       1.
<PAGE>

                                    AGREEMENT

         NOW, THEREFORE, based on the preceding facts, and in consideration of
the mutual covenants set forth below, the parties to this Agreement agree as
follows:

         1.       DEFINITIONS. For the purposes of this Agreement, the following
words shall have the meanings set forth below:

                  "Canadian Law" means the statutes, regulations and policy
statements relating to the public distribution of securities in each of the
provinces of Canada in force from time to time;

                  "Commission" means the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act.

                  "Common Shares" shall have the meaning set forth in Paragraph
A of the Recitals.

                  "Company's Notice" shall have the meaning set forth in Section
2 hereof.

                  "Control Block" shall have the meaning specified under
Canadian Law.

                  "Credit Agreement" shall have the meaning set forth in
Paragraph A of the Recitals.

                  "Initial Public Offering" means the first sale of Common
Shares to the public which is effected pursuant to a registration statement
filed with and declared effective by the U.S. Securities and Exchange Commission
under the Securities Act of 1933 or pursuant to the qualifications of the Common
Shares under the analogous procedures under Canadian Law.

                  "Initiating Holders" means the holders of Registrable
Securities initially requesting registration of Registrable Securities pursuant
to Section 2 of this Agreement or, if Exhibit A is applicable, Section 1
thereof.

                  "Prospective Sellers" shall have the meaning set forth in
Section 7(a)(ii) hereof.

                  "Credit Agreement" shall have the meaning set forth in
Paragraph A of the Recitals.

                  "Piggyback Notice" shall have the meaning set forth in Section
4 hereof.

                  "Preferred Shares" shall have the meaning set forth in
Paragraph A of the Recitals and shall include shares issued with respect to any
such shares.

                  "Qualified Shares" shall have the meaning set forth in Section
1 of Exhibit A.

                  The terms "register," "registered" and "registration" refer to
a registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of the

                                       2.
<PAGE>

effectiveness of such registration statement.

                  "Registrable Securities" means (i) any Common Shares issued or
issuable upon conversion of the Preferred Shares, (ii) any Common Shares issued
or issuable with respect to the Common Shares referred in clause (i) of this
paragraph by reason of a stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other
reorganization. The number of shares of "Registrable Securities then
outstanding" shall be determined by the number of Common Shares outstanding
which are Registrable Securities and the number of Common Shares issuable
pursuant to then exercisable or convertible securities (including without
limitation the Promissory Notes delivered pursuant to the Credit Agreement and
the Preferred Shares) which are exercisable for or convertible into Registrable
Securities.

                  "Requesting Holders" shall have the meaning set forth in
Section 2 of this Agreement.

                  "Securities Act" means the Securities Act of 1933, as amended.

         Other Terms. Unless the context otherwise requires, all capitalized
terms not defined in this Agreement shall have the respective meanings accorded
to them in the Credit Agreement.

         2.       REQUIRED REGISTRATIONS.

                  (a)      DEMAND REGISTRATION. If, at any time after the
Company has completed an Initial Public Offering, Initiating Holders holding at
least a majority of the Registrable Securities then outstanding propose to
dispose of Common Shares having an aggregate price to the public (net of any
underwriters' discounts and commissions) of at least U.S.$5,000,000, then such
holders may request the Company in writing to effect such registration, stating
the form of registration statement under the Securities Act to be used, the
number of shares of Registrable Securities to be disposed of and the intended
method of disposition of such shares. If the Company's Initial Public Offering
occurred primarily in Canada under Canadian Law, then, in lieu of registration
under the U. S. Securities Act, the Common Shares shall be qualified under the
analogous provisions of Canadian Law in accordance with Exhibit A hereto. In
such event, all references herein to "register", "registered" and "registration"
shall refer to the qualification of securities for sale to the public in all
provinces of Canada by filing a prospectus in accordance with Canadian Law
mutatis mutandis.

                  (b)      Upon receipt of the request of the Initiating Holders
pursuant to Section 2(a) above, the Company shall give prompt written notice
thereof to all other holders of Registrable Securities. Subject to the
provisions of this Subsection (b) and Section 3 below, the Company shall use its
best efforts promptly to effect the registration under the Securities Act of all
shares of Registrable Securities specified in the requests of the Initiating
Holders and the requests (stating the number of shares of Registrable Securities
to be disposed of and the intended method of disposition of such shares) of
other holders of shares of Registrable Securities ("Requesting Holders") given
within 30 days after receipt of such notice from the Company.

         3.       LIMITATIONS ON REQUIRED REGISTRATIONS.

                                       3.
<PAGE>

                  (a)      The Company shall not be required to prepare and file
more than two (2) registration statements, which actually become or are declared
effective at the request of holders of Registrable Securities pursuant to
Section 2(a) hereof.

                  (b)      Only Common Shares may be included in a registration,
and, whenever a registration requested by the holders of Registrable Securities
is for a firmly underwritten offering, if the underwriters determine, in their
sole discretion, that the number of Common Shares so included which are to be
sold by the holders of Registrable Securities is limited due to market
conditions, the holders (including both the Initiating Holders and the
Requesting Holders) of Registrable Securities proposing to sell their shares in
such underwriting and registration shall share pro rata in the available portion
of the registration in question, such sharing to be based upon the number of
shares of Registrable Securities then held by such holders, respectively. If any
holder of Registrable Securities disapproves of the terms of the underwriting,
such holder may elect to withdraw therefrom by written notice to the Company,
the underwriter and the Initiating Holders. The Registrable Securities so
withdrawn shall also be withdrawn from registration; provided, however, that, if
by the withdrawal of such Registrable Securities a greater number of shares of
Registrable Securities held by other holders of Registrable Securities may be
included in such registration (up to the maximum of any limitation imposed by
the underwriters), then the Company shall offer to all holders of Registrable
Securities who have included Registrable Securities in the registration the
right to include additional Registrable Securities in the same proportion used
in determining the limitation imposed by the provisions of this Section 3(b).

                  (c)      The Company shall not be required to prepare and file
a registration statement pursuant to Section 2 hereof which would become
effective within 180 days following the effective date of a registration
statement filed by the Company with the Commission pertaining to an underwritten
public offering of securities for cash for the account of the Company or if the
Initiating Holders' request for registration is received by the Company
subsequent to such time as the Company in good faith gives written notice to the
holders of Registrable Securities that the Company is commencing to prepare a
Company-initiated registration statement and the Company is actively employing
in good faith all reasonable efforts to cause such registration statement to
become effective.

                  (d)      The Company shall be entitled to postpone for a
reasonable period of time (but not exceeding 60 days) the filing of any
registration statement (or prospectus, as the case may be) otherwise required to
be prepared and filed by it hereunder if the Company determines, in its
reasonable judgment, that such registration and offering would have a material
and adverse impact on any financing, acquisition, reorganization or other
material transaction involving the Company or would require premature
disclosures thereof and the Company promptly gives the Initiating Holders and
Requesting Holders written notice of such determination, containing a general
statement of the reasons for such postponement and an approximation of the
anticipated delay.

         4.       COMPANY REGISTRATION. If (but without any obligation to do so)
the Company at any time proposes to register any of its securities for sale for
its own account or for the account of any other person (other than a
registration relating either to the sale of securities to employees of the
Company pursuant to a stock option, stock purchase or similar plan or a Rule 145

                                       4.
<PAGE>

transaction, or a registration on any form which does not include substantially
the same information as would be required to be included in a registration
statement covering the sale of Registrable Securities), it shall each such time
give written notice (the "Company's Notice"), at its expense, to all holders of
Registrable Securities of its intention to do so at least 15 days prior to the
filing of a registration statement with respect to such registration with the
Commission. If any holder of Registrable Securities desires to dispose of all or
part of such stock, it may request registration thereof in connection with the
Company's registration by delivering to the Company, within ten (10) days after
receipt of the Company's Notice, written notice of such request (the "Piggyback
Notice") stating the number of shares of Registrable Securities to be disposed
of and the intended method of disposition of such shares by such holder or
holders. The Company shall use its best efforts to cause all shares of
Registrable Securities specified in the Piggyback Notice to be registered under
the Securities Act so as to permit the sale or other disposition (in accordance
with the intended methods thereof as aforesaid) by such holder or holders of the
shares so registered, subject, however, to the limitations set forth in Section
5 hereof.

         5.       LIMITATIONS ON COMPANY REGISTRATION.

                  (a)      If the registration of which the Company gives notice
pursuant to Section 4 above is for the purpose of permitting a disposition of
securities by the Company pursuant to a firm commitment underwritten offering,
the notice shall so state, and the Company shall have the right to limit the
aggregate size of the offering or the number of shares to be included therein by
stockholders of the Company if requested to do so in good faith by the Board of
Directors of the Company and only securities which are to be included in the
underwriting may be included in the registration.

                  (b)      Whenever the number of shares which may be registered
pursuant to Section 4 is limited by the provisions of Section 5(a) above, the
Company shall have priority as to sales over the holders of Registrable
Securities and each holder hereby agrees that it shall withdraw its securities
from such registration to the extent necessary to allow the Company to include
all the shares which the Company desires to sell for its own account to be
included within such registration. The holders of Registrable Securities given
rights by Section 4 above shall share pro rata (as a single class) in the
available portion of the registration in question, such sharing to be based upon
the number of shares of such stock then held by each of such holders,
respectively.

         6.       DESIGNATION OF UNDERWRITER. In the case of any registration
initiated by the holders of Registrable Securities pursuant to the provisions of
Section 2 hereof which is proposed to be effected pursuant to a firm commitment
underwriting, the Company shall have the right to designate the managing
underwriter (which underwriter shall be reasonably acceptable to the holders of
a majority of the Registrable Securities participating in the transaction), and
all holders of Registrable Securities participating in the registration shall
sell their shares only pursuant to such underwriting.

         7.       REGISTRATION PROCEDURES.

                  (a)      Subject to Section 7(b), if and when the Company is
required by the provisions of this Agreement to use its best efforts to effect
the registration of shares of

                                       5.
<PAGE>

Registrable Securities, the Company shall:

                           (i)      prepare and file with the Commission a
registration statement with respect to such shares and use its best efforts to
cause such registration statement to become and remain effective for up to 120
days as provided herein;

                           (ii)     prepare and file with the Commission such
amendments and supplements to such registration statement and the prospectuses
used in connection therewith as may be necessary to keep such registration
statement effective and current and to comply with the provisions of the
Securities Act with respect to the sale or other disposition of all shares
covered by such registration statement, including such amendments and
supplements as may be necessary to reflect the intended method of disposition
from time to time of the holder or holders of such shares who have requested
that any of their shares be sold or otherwise disposed of in connection with the
registration (the "Prospective Sellers");

                           (iii)    furnish to each Prospective Seller such
number of copies of each prospectus, including preliminary prospectuses, in
conformity with the requirements of the Securities Act, and such other
documents, as the Prospective Seller may reasonably request in order to
facilitate the public sale or other disposition of the shares owned by it;

                           (iv)     use its best efforts to register or qualify
the shares covered by such registration statement under such other securities or
blue sky or other applicable laws of such jurisdictions as each Prospective
Seller shall reasonably request to enable such seller to consummate the public
sale or other disposition of the shares owned by such seller; provided that, the
Company shall not be required in connection therewith to qualify to do business
or to file a general consent to service of process in any such jurisdiction;

                           (v)      cause all such shares to be listed on each
securities exchange on which similar securities issued by the Company are then
listed;

                           (vi)     provide a transfer agent and registrar for
all such shares not later than the effective date of such registration
statement;

                           (vii)    enter into such customary agreements
(including an underwriting agreement) and take all such other customary actions
as the holders of a majority of the shares being sold reasonably request in
order to expedite or facilitate the disposition of such shares; and

                           (viii)   make available for inspection by any
Prospective Seller, any underwriter participating in any disposition pursuant to
such registration statement, and any attorney, accountant or other agent
retained by any such seller or underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the
Company's officers, directors and employees to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in
connection with the preparation of such registration statement; and

                           (ix)     furnish to the Initiating and Requesting
Holders and the underwriters, if any, (i) an opinion of counsel for the Company
and (ii) a "comfort" letter signed by the auditors who have certified the
Company's financial statements included in such

                                       6.
<PAGE>

registration statement, each covering substantially the same matters with
respect to such registration statement as are customarily covered in opinions of
issuer's counsel and in accountants comfort letters delivered to the
underwriters in underwritten public offerings of Securities A.

                  (b)      If any registration is required by the provisions of
this Agreement to be made under Canadian Law, the Company shall comply with the
provisions of Exhibit A.

                  (c)      Each Prospective Seller of such shares shall furnish
to the Company such information as the Company may reasonably require from the
Prospective Seller for inclusion in the registration statement (and the
prospectus included therein).

                  (d)      The Prospective Sellers shall not (until further
notice) effect sales of the shares covered by the registration statement after
receipt of written notice from the Company to suspend sales to permit the
Company to correct or update a registration statement or prospectus.

         8.       EXPENSES OF REGISTRATION.

                  (a)      All registration and filing fees, printing expenses,
expenses of compliance with blue sky laws, fees and disbursements of counsel for
the Company and expenses of any audits other professional opinions incidental to
or required by any registration pursuant to Sections 2 or 4 hereof
("Registration Expenses") shall be borne by the Company; provided, however, that
the Company shall be required to bear the Registration Expenses for a maximum of
three (3), or, if the Initial Public Offering was completed under Canadian Law,
the Company shall be required to bear the Registration Expenses for a maximum of
three prospectuses filed under Canadian Law.

                  (b)      Notwithstanding the foregoing, the Company shall not
be required to pay for any expenses of any registration proceeding begun
pursuant to Section 2(a) if the registration request is subsequently withdrawn
at the request of the holders of a majority of the Registrable Securities to be
registered (in which case all participating holders shall bear such expenses);
provided, however, that if at the time of such withdrawal the holders have
learned of a material adverse change in the condition, business or prospects of
the Company from that known to the Initiating Holders at the time of their
request, then the holders shall not be required to pay any of such expenses.

         9.       INDEMNIFICATION.

                  (a)      To the extent permitted by law, in the event of any
registration or qualification of any of its securities under the Securities Act
or Canadian Law, as applicable, pursuant to this Agreement, the Company shall
indemnify and hold harmless each holder requesting or joining in a registration
or qualification of such securities, each underwriter (as defined in the
Securities Act or Canadian Law, as applicable) and each controlling person of
any holder or underwriter, if any, (within the meaning of the Securities Act) or
Canadian Law, as applicable, and each person or company who signs any prospectus
or amendment thereto in accordance with Canadian Law against any losses, claims,
damages or liabilities, joint or several (or actions in respect thereof), to
which such holder, underwriter, controlling person or signatory may be subject
under the Securities Act or Canadian Law, as applicable, under any other statute

                                       7.
<PAGE>

or at common law, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon (i) any untrue
statement (or alleged untrue statement) of any material fact contained in any
registration statement under which such securities were registered under the
Securities Act, any preliminary prospectus or final prospectus filed under
Canadian Law or contained in any filed registration statement, or any summary
prospectus issued in connection with any securities being registered, or any
amendment or supplement thereto, or any other document, or (ii) any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading or (iii) any
violation by the Company of the Securities Act, Canadian Law or any Blue Sky
law, or any rule or regulation promulgated under the Securities Act, Canadian
Law or any Blue Sky law, or any other law, applicable to the Company in
connection with any such registration, qualification or compliance ((i), (ii)
and (iii) are each referred to hereafter as a "Violation"), and shall reimburse
each such holder, underwriter, controlling person or signatory for any legal or
other expenses reasonably incurred by such holder, underwriter, controlling
person or signatory in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company shall
not be liable to any holder, underwriter, controlling person or signatory in any
such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon any such untrue statement or omission made in such
registration statement, preliminary prospectus, summary prospectus, prospectus,
or amendment or supplement thereto, or any other document, in reliance upon and
in conformity with written information furnished to the Company by such holder,
underwriter, controlling person or signatory, respectively, specifically for use
therein.

                  (b)      To the extent permitted by law, in the event of any
registration of any of its securities under the Securities Act or Canadian Law,
as applicable, pursuant to this Agreement, each holder requesting or joining in
a registration of such securities shall indemnify and hold harmless the Company,
each underwriter (as defined in the Securities Act or Canadian Law, as
applicable) and each controlling person of the Company or underwriter, if any,
(within the meaning of the Securities Act) or Canadian Law, as applicable, and
each person or company who signs any prospectus or amendment thereto in
accordance with Canadian Law against any losses, claims, damages or liabilities,
joint or several (or actions in respect thereof), to which the Company,
underwriter, controlling person or signatory may be subject under the Securities
Act or Canadian Law, under any other statute or at common law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon written information
furnished by the holder expressly for use in connection with such registration,
and shall reimburse the Company, underwriter, controlling person or signatory
for any legal or other expenses reasonably incurred by the Company, underwriter,
controlling person or signatory in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the
holder shall not be liable to the Company, underwriter, controlling person or
signatory in any such case to the extent that any such loss, claim, damage or
liability exceeds the gross proceeds from the offering received by such holder
from the underwriters. The indemnity provided for herein shall remain in full
force and effect regardless of any investigation made by or on behalf of the
Company, underwriter, controlling person or signatory.

                  (c)      If the indemnification provided for in Section 9(a)
or 9(b) above is

                                       8.
<PAGE>

unavailable to an indemnified party in respect of any losses, claims, damages or
liabilities referred to therein, then the indemnifying party in lieu of
indemnifying such indemnified party thereunder shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities, in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the statements or omissions which resulted
in such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party, or by the indemnified party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

                           The parties agree that it would not be just and
equitable if contribution pursuant to this Section 9(c) were determined by pro
rata allocation or by any other method of allocation which does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages and liabilities or actions in respect thereof referred
to in the immediately preceding paragraph shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 9(c), no holder
shall be required to contribute any amount in excess of the amount by which the
total price at which the Registrable Securities sold by it exceeds the amount of
any damages which such holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentations (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

                  (d)      Promptly after receipt by an indemnified party under
Section 9(a) or 9(b) above of notice of the commencement of any action, such
indemnified party shall notify the indemnifying party in writing of the
commencement thereof; but the omission so to notify the indemnifying party shall
not relieve it from any liability which it may have to any indemnified party
otherwise than under such Sections or to the extent that it has not been
prejudiced as a proximate result of such failure. In case any such action shall
be brought against any indemnified party, and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, to assume the defense
thereof, with counsel satisfactory to such indemnified party; provided, however,
that if the defendants in any such action include both the indemnified party and
the indemnifying party and the indemnified party shall have reasonably concluded
that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to
select separate counsel to assert such legal defenses (in which case the
indemnifying party shall not have the right to direct the defense of such action
on behalf of the indemnified party or parties). Upon the permitted assumption by
the indemnifying party of the defense of such action, and approval by the
indemnified party of counsel, the indemnifying party shall not be liable to such
indemnified party under this Section 9 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof unless

                                       9.
<PAGE>

(i) the indemnified party shall have employed separate counsel in connection
with the assertion of legal defenses in accordance with the proviso to the next
preceding sentence, (ii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time, (iii) the indemnifying party and its counsel do not actively
and vigorously pursue the defense of such action or (iv) the indemnifying party
has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party.

         10.      RIGHTS WHICH MAY BE GRANTED TO OTHER PERSONS. The Company
shall not grant any person registration rights which shall in any way whatsoever
impair the priority of the registration rights granted to the Purchasers in this
Agreement.

         11.      RULE 144 REQUIREMENTS. Immediately after the date on which a
registration statement filed by the Company under the Securities Act becomes
effective, the Company shall undertake to make and keep publicly available, and
available to the holders of Registrable Securities, such information as is
necessary to enable the holders of Registrable Securities to make sales of such
stock pursuant to Rule 144 of the Commission under the Securities Act. The
Company shall furnish to any such holder, upon request, a written statement
executed by the Company as to the steps it has taken to comply with the current
public information requirements of Rule 144.

         12.      STAND-STILL PERIOD. If the Company files a registration
statement in connection with any offering to which this Agreement applies, the
holders of the Preferred Shares and any in accordance with the Securities Act
(or prospectus under Canadian Law) Common Shares issued upon conversion of the
Preferred Shares and/or conversion of the indebtedness under the Credit
Agreement shall not effect any sale or distribution of any shares (except
pursuant to such registration statement) of the capital stock of the Company,
whether now owned or hereafter acquired, during the period requested by the
underwriters commencing with the effective date of such registration statement
or prospectus and ending on the close of business on a date which is not more
than one hundred and eighty (180) days thereafter or such time as the
registration statement or prospectus is withdrawn, whichever is earlier. In
order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to the Registrable Securities of such holders until
the end of such period.

         13.      ASSIGNMENT. The rights to cause the Company to register
Registrable Securities pursuant to this Agreement may be assigned (but only with
all related obligations) by the Purchasers to a transferee or assignee (other
than a competitor of the Company) of such securities who, after such assignment
or transfer, holds at least 100,000 Common Shares issued or issuable upon
conversion of Preferred Shares or conversion of the indebtedness under the
Credit Agreement (subject to appropriate adjustment for stock splits, stock
dividends, combinations and other recapitalizations), provided the Company is,
within a reasonable time after such transfer, furnished with written notice of
the name and address of such transferee or assignee and the securities with
respect to which such registration rights are being assigned.

         14.      MISCELLANEOUS.

                  (a)      SUCCESSORS AND ASSIGNS. Except as otherwise expressly
provided herein,

                                      10.
<PAGE>

the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors of the parties but neither party will
have the right to assign its rights under this Agreement to any other person or
entity without the prior written consent of the other party, which consent can
be withheld for any reason or without reason. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto
or their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

                  (b)      JOINT AND SEVERAL OBLIGATIONS OF PURCHASERS. The
obligations of the Purchasers under this Agreement are several and not joint.

                  (c)      GOVERNING LAW. This Agreement shall be governed by
and construed under the laws of the State of California as applied to agreements
among California residents entered into and to be performed entirely within
California.

                  (d)      COUNTERPARTS. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                  (e)      TITLES AND SUBTITLES. The titles and subtitles used
in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

                  (f)      NOTICES. Unless otherwise provided herein, any notice
required or permitted under this Agreement shall be given in writing and shall
be deemed effectively given upon personal delivery to the party to be notified
or three (3) days after deposit in the United States mail, by registered or
certified mail, postage prepaid and addressed to the party to be notified at the
address indicated for such party on the signature page hereof, or at such other
address as such party may designate by ten (10) days' advance written notice to
the other parties.

                  (g)      SEVERABILITY. If one or more provisions of this
Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

                  (h)      ENTIRE AGREEMENT. This Agreement and the other
agreements referred to herein constitute the entire understanding and agreement
between the parties with regard to the specific subject matter hereof and no
party shall be liable or bound by any representation, warranty, covenant or
agreement except as specifically set forth herein. Any previous agreement
(whether written, oral or implied) among the parties relative to the specific
subject matter hereof is superseded by this Agreement.

                  (i)      AMENDMENTS AND WAIVERS. Neither this Agreement nor
any term hereof may be changed, waived, discharged or terminated orally or in
writing, except that any term of this Agreement may be amended and the
observance of any such term may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written
consent of the Company and the holders of at least a majority of the Registrable
Securities then in existence; provided, however, that no such amendment or
waiver shall affect

                                      11.
<PAGE>

the provisions of this Section, no such waiver shall extend to or affect any
other obligation not expressly waived.

                  (j)      SPECIFIC PERFORMANCE. The parties hereto agree that
the capital stock of the Company cannot be purchased or sold in the open market
and that, for these reasons, among others, the parties will be irreparably
damaged in the event that this Agreement is not specifically enforceable.
Accordingly, in the event of any controversy concerning the capital stock which
is the subject of this Agreement, or any right or obligation to register such
securities, such right or obligation shall be enforceable in a court of equity
by specific performance. The rights granted in this Section shall be cumulative
and not exclusive, and shall be in addition to any and all other rights which
the parties hereto may have hereunder, at law or in equity.

                                      12.
<PAGE>

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

"COMPANY"                              CTL IMMUNOTHERAPIES CORP.,
                                       an Ontario corporation

                                       By: /s/ John Simard
                                           -------------------------------------
                                           John Simard,
                                           Chief Executive Officer

                                       By: /s/ Edwin Nordholm
                                           -------------------------------------
                                           Edwin Nordholm,
                                           President and Chief Operating Officer

                                       Address: One First Canadian Place
                                                Suite 5100
                                                One First Canadian Place
                                                Toronto, Ontario  M5X1A4

"PURCHASERS"

MEDICAL RESEARCH GROUP, LLC, a
Delaware limited liability company

By:  AEM MINIMED CORP., its Manager

By: /s/ Alfred E. Mann
    --------------------------------      By: /s/ Alfred E. Mann
    Alfred E. Mann,                           ----------------------------------
    President                                     ALFRED E. MANN

Address: 12744 San Fernando Road          Address: 12744 San Fernando Road
         Sylmar, CA  91342                         Sylmar, CA  91342

                                          MCLEAN WATSON ADVISORY, INC.,
                                          a Delaware limited partnership

                                          By: /s/ Edwin Nordholm
                                              ----------------------------------
                                              Edwin Nordholm,
                                              President

                                          By: /s/ London Owen
                                              ----------------------------------
                                              London Owen,
                                              Chairman

                          [SIGNATURE PAGE TO AGREEMENT]

<PAGE>

                                    EXHIBIT A

         This Exhibit A applies to the qualification for sale to the public of
Registrable Securities in accordance with Canadian Law pursuant to the
Registration Rights Agreement which is attached.

         1.       PROSPECTUS CLEARANCE.

                  In the event of a request made pursuant to Section 2(a) of the
Registration Rights Agreement to which this Exhibit A applies, the Company shall
promptly do all things necessary to qualify the Registrable Securities specified
in the notice of the Initiating Holders and the Requesting Holders (the
"Qualified Shares") for distribution or distribution to the public in all
provinces of Canada. In order to comply with its obligations under this Section
1, the Company shall as expeditiously as practicable:

                  (a)      prepare and file under the applicable laws of each of
the provinces of Canada, a preliminary prospectus (in English and French
languages, as appropriate) and such other documents as may be required pursuant
to all applicable laws and policy statements to qualify the Qualified Shares for
distribution or distribution to the public;

                  (b)      as soon as possible after any comments of appropriate
securities commissions and regulatory authorities on the preliminary prospectus
are satisfied and in any event, no later than sixty (60) days thereafter,
prepare and file under the applicable laws of each of the provinces of Canada a
final prospectus (in the English and French languages, as appropriate) and take
all other steps and proceedings as may be required in order to fully qualify the
Qualified Shares for distribution or distribution to the public, as those terms
are defined in applicable securities legislation, in each of the provinces of
Canada by persons qualified pursuant to the relevant provisions of applicable
securities legislation to distribute or distribute such Qualified Shares to the
public;

                  (c)      use its best efforts to obtain receipt and clearance
therefore without delay, keeping the Initiating Holders and the Requesting
Holders advised as to the initiation, progress and completion of the
qualification procedure;

                  (d)      prepare and file with the appropriate securities
commissions such information, reports and amendments and supplements to the
prospectus as may be necessary to keep it in good standing as a reporting issuer
under Canadian Law;

                  (e)      furnish to the Initiating and Requesting Holders such
number of copies of any prospectus, including a preliminary prospectus, prepared
in conformity with the requirements of the applicable securities legislation,
and such other documents as any such Holder may reasonably request, in order to
facilitate the public distribution or other disposition of the Qualified Shares;

                  (f)      furnish to the Initiating and Requesting Holders and
the underwriters, if any, (i) an opinion of counsel for the Company, and (ii) a
"comfort" letter signed by the auditors who have certified the Company's
financial statements included in such prospectus, each covering substantially
the same matters with respect to such prospectus as are customarily covered in

                                      A-1.
<PAGE>

opinions of issuer's counsel and in accountant's comfort letters delivered to
the underwriters in underwritten public offerings of securities;

                  (g)      provide and cause to be maintained a transfer agent
and registrar for its common shares from and after a date not later than the
effective date of the (final) prospectus;

                  (h)      use its best efforts to list its common shares on
either the Toronto or Montreal stock exchanges;

                  (i)      enter into customary agreements (including if the
method of distribution is by means of an underwriting, an underwriting agreement
in customary form) and take such other actions as are reasonably required in
order to expedite or facilitate the disposition of the Qualified Shares.

                                      A-2.
<PAGE>

                   AMENDMENT TO REGISTRATION RIGHTS AGREEMENT

         This Amendment to Registration Rights Agreement (this "Amendment")
amends the Registration Rights Agreement dated as of October 15, 1998 entered
into by the parties to this Amendment (the "Registration Rights Agreement").

         Since the date of the Registration Rights Agreement, Medical Research
Group, Inc. ("MRG"), successor to the business and assets of Medical Research
Group, LLC, has assigned to Alfred E. Mann ("Mann") all of its rights arising
under and pursuant to the Credit Agreement entered into as of October 15, 1998,
as amended by the Amendment and Supplement to Line of Credit Agreement also
dated as of October 15, 1998 (collectively the "Credit Agreement") and the
related Promissory Note and General Security Agreement entered into pursuant to
the Credit Agreement. The purpose of this Amendment is to amend the Registration
Rights Agreement to reflect the assignment of the rights of MRG to Mann and the
assumption of the obligations of MRG by Mann under the Registration Rights
Agreement.

         The Registration Rights Agreement is hereby amended as follows:

         (a)      All references to the "Purchasers" shall be deemed to refer to
Mann and McLean Watson and not to include MRG.

         (b)      All references to the Credit Agreement shall be deemed to
refer to the Credit Agreement as amended by the Amendment to Loan Documents
dated as of March ___, 2000 among the parties to this Amendment.

         (c)      MRG shall have no further rights or obligations under the
Registration Rights Agreement, and this Amendment shall serve as a novation of
the Registration Rights Agreement among CTL, Mann and McLean Watson.

         Except as amended by this Amendment the Registration Rights Agreement
shall remain in full force and effect.

CTL IMMUNOTHERAPIES CORP.                   MCLEAN WATSON ADVISORY, INC.

By:            /s/ John Simard              By:          /s/ Louden Owen
    ------------------------------------        --------------------------------
    John Simard, Chief Executive Officer             Louden Owen, Chairman

MEDICAL RESEARCH GROUP, INC.

By:          /s/ Ronald J. Lebel                         /s/ Alfred E. Mann
    ------------------------------------        --------------------------------
          Ronald J. Lebel, President                       Alfred E. Mann

                                       1.

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