Document:

Ex-10.2

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”), effective this 10th day of October, 2006
(“Effective Date”), is entered into by and between Anthony Slater (“Executive”) and Pike Electric,
Inc., a North Carolina corporation (the “Company”) and, solely with respect to Section 4(b), Pike
Electric Corporation, a Delaware corporation.

     WHEREAS, Executive desires to provide the Company and certain of its subsidiaries with his
services, and the Company desires to employ Executive on the terms and subject to the conditions
set forth herein;

     NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and
agreements set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound,
agree as follows:

	 	1.	 	Employment. Subject to the terms and conditions of this Agreement,
the Company agrees to employ the Executive, and Executive agrees to be employed by the
Company in the position of Vice President and Chief Financial Officer of the Company
with his salary and benefits to be retroactive to his date of promotion to that
position on August 18, 2006.
	 
	 	2.	 	Position. During the period of his employment hereunder, Executive
agrees to serve the Company, and the Company shall employ Executive, as Chief
Financial Officer, or in such other executive capacity or capacities, at the same
level of seniority, as may be determined from time to time by the CEO of Pike
Electric, Inc.
	 
	 	3.	 	At-Will Employment and Duties.

	 	(a)	 	Executive and the Company agree that Executive’s
employment hereunder will be at-will (as defined under applicable law), and
may be terminated at any time, for any reason, at the option of either
party, subject to the provisions of Section 5 below.
	 
	 	(b)	 	Duties. During the period of his employment
hereunder and except for illness, reasonable vacation periods, and
reasonable leaves of absence, Executive shall in good faith (i) devote all
of his business time, attention, skill and efforts to the business and
affairs of the Company and its affiliated companies and (ii) report to the
Chief Executive Officer of Pike Electric, Inc. (the “CEO”).

	 	4.	 	Salary; Incentive Bonus; Reimbursement of Expenses; Other Benefits.

	 	(a)	 	Salary. During the period of employment under
this Agreement, Executive shall be paid a salary at the rate of $325,000
(“Base Salary”) retroactive to his date of promotion to Vice President and
Chief Financial Officer of the Company. The Base Salary

 

 

	 	 	 	shall be reviewed annually and may be adjusted as determined by the
Board of Directors of Pike Electric Corporation (the “Board”) (or any
authorized committee thereof) in consultation with the CEO.
	 
	 	(b)	 	Stock Options. Subject to approval by the Board,
Executive will be granted options to purchase up to 30,000 shares of common
stock of Pike Electric Corporation and be granted 5,000 shares of restricted
Pike Electric Corporation stock. Stock Options vest 20% per year for 5
years and restricted stock cliff vests at 5 years. He will also be eligible
for future grant(s) in accordance with any future Pike Incentive Plan and
form of stock option agreement as the Board of Directors of Pike Electric
Corporation or any authorized Committee thereof in its sole discretion may
determine from time to time in consultation with the CEO. All awards will
be in accordance with the plan documents.
	 
	 	(c)	 	Reimbursement of Expenses. The Company shall pay
or reimburse Executive, in accordance with its normal policies and
practices, for all reasonable travel and other expenses incurred by
Executive in performing his obligations under this Agreement.
	 
	 	(d)	 	Other Benefits. During the period of employment
under this Agreement, Executive shall be entitled to participate in all
other benefits of employment generally available to other executives of the
Company and those benefits for which such persons are or shall become
eligible, when and as he becomes eligible therefore (including but not
limited to any deferred compensation plan and 401(k) plan).

	 	5.	 	Termination of Employment.

	 	(a)	 	Termination by the Company for Cause. The
Company may terminate Executive’s employment under this Agreement for
“Cause” (as hereinafter defined) or otherwise at will at any time
immediately upon written notice, or where applicable, upon Executive’s
failure to cure the breach as provided below, whereupon the Company shall
have no further obligation hereunder to Executive, except for payment of
amounts of Base Salary accrued through the termination date. For purposes
of this agreement, “Cause” shall mean: (i) the continued willful failure by
Executive to substantially perform his duties with the Company, (ii) the
willful engaging by Executive in gross misconduct materially and
demonstrably injurious to the Company or (iii) Executive’s material breach
of Sections 3, 6 or 7 of this Agreement; provided, that with respect to any
breach that is curable by Executive, as determined by the Board in good
faith, the Company has provided Executive written notice of the material
breach and Executive has not cured such breach, as determined by the Board
in good faith, within fifteen (15) days following the date the Company
provides such notice.

 

 

	 	(b)	 	Termination as a Result of Executive’s Death or
Disability. If Executive’s employment hereunder is terminated by reason
of Executive’s Disability (as hereinafter defined) or death, Executive’s (or
Executive’s estate’s) right to benefits under this Agreement will terminate
as of the date of such termination and all of the Company’s obligations
hereunder shall immediately cease and terminate, except that Executive or
Executive’s estate, as the case may be, will be entitled to receive accrued
Base Salary and benefits through the date of termination. As used herein,
Executive’s Disability shall have the meaning set forth in any long-term
disability plan in which Executive participates, and in the absence thereof
shall mean that, due to physical or mental illness, Executive shall have
failed to perform his duties on a full-time basis hereunder for one hundred
eighty (180) consecutive days and shall not have returned to the performance
of his duties hereunder on a full-time basis before the end of such period,
and if Disability has occurred termination shall occur within thirty (30)
days after written notice of termination is given (which notice may be given
before the end of the one hundred eighty (180) day period described above so
as to cause termination of employment to occur as early as the last day of
such period).
	 
	 	(c)	 	Termination by Executive for Good Reason or by the
Company other than as a Result of Executive’s Death or Disability or other
than for Cause.

	 	(i)	 	If Executive’s employment is terminated by Executive for
“Good Reason” (as hereinafter defined) or by the
Company for any reason other than Executive’s death
or Disability or other than for Cause, subject to
Executive entering into and not revoking a release of
claims in favor of the Company and abiding by the
non-competition provision set forth in Section 6(b),
Executive shall be entitled to the following
benefits:

	 	1)	 	Cash severance payments equal in the aggregate to twelve
(12) months of Executive’s annual Base Salary at the
time of termination, payable in twelve (12) equal
monthly installments beginning at the end of the
first full month following termination of employment.
	 
	 	2)	 	Continuation of Executive’s medical and health
insurance benefits for a period equal to the lesser
of (i) twelve (12) months, or (ii) the period ending
on the date Executive first

 

 

	 	 	 	becomes entitled to medical and health insurance
benefits under any plan maintained by any person
for whom Executive provides services as an
employee or otherwise.

	 	(ii)	 	For purposes of this Agreement, “Good
Reason” shall mean: (a) a material reduction (without Executive’s express written consent) in
Executive’s title or responsibilities; (b) the requirement that Executive relocate to an employment
location that is more than 50 miles from his employment location on the Effective Date; or (c) the
Company’s material breach (without Executive’s express written consent) of Sections 2 or 4 of this
Agreement; provided, that Executive has provided the Company written notice of the material breach
and the Company has not cured such breach within fifteen (15) days following the date Executive
provides such notice. If the Company thereafter intentionally repeats the breach it previously
cured, such breach shall no longer be deemed curable.

	 	(d)	 	Termination by Executive other than for Good
Reason. Executive may terminate his employment with the Company other than for Good Reason upon thirty (30)
days written notice to the Company, after which the Company shall have no further obligation
hereunder to Executive, except for payment of amounts of Base Salary and other benefits accrued
through the termination date,

     6. Confidential Information, Non Competition; Non-Solicitation.

          (a) Confidential Information. Executive acknowledges that in his
employment hereunder he will occupy a position of trust and confidence. Executive shall not,
except in the course of the good faith performance of his duties hereunder or as required by
applicable law, without limitation in time or until such information shall have become public other
than by Executive’s unauthorized disclosure, disclose to others or use, whether directly or
indirectly, any Confidential Information regarding the Company, its subsidiaries and affiliates.
“Confidential Information” shall mean information about the Company, its subsidiaries or
affiliates, or their respective clients or customers that was learned by Executive in the course of
his employment by the Company, its subsidiaries or affiliates, or their respective clients or
customers that was learned by Executive in the course of his employment by the Company, its
subsidiaries or affiliates, including (without limitation) any proprietary knowledge, trade
secrets, data, formulae, information and client and customer lists and all papers, resumes, and
records (including computer records) of the documents containing such Confidential Information,
but excludes information (i) which is in the public domain through no unauthorized act or omission
of Executive; or (ii) which becomes available to Executive on a non-confidential basis from a
source other than the Company or its affiliates without breach of such source’s confidentiality or
non-disclosure obligations to the Company or any affiliate. Executive agrees to deliver or return
to the Company, at the Company’s request at any time or upon termination or expiration of his
employment or as soon thereafter as possible, (A) all documents, computer tapes and disks, records,
lists, data, drawings, prints, notes and written information (and all copies thereof) furnished by
the Company, its subsidiaries or affiliates, or prepared by Executive during the term of his
employment

 

 

by the Company, its subsidiaries or affiliates, and (B) all notebooks and other data relating to
research or experiments or other work conducted by Executive in the scope of employment.

          (b) Non-Competition. During the period of Executive’s employment by the Company and
for a period of twelve (12) months after the date of termination of his employment or for the
period of one additional year thereafter if so elected by the Company pursuant to Section 6. (d)
below, Executive shall not, directly or indirectly, without the prior written consent of the
Company, provide consultative services or otherwise provide services to (whether as an employee or
a consultant, with or without pay) or, own, manage, operate, join, control, participate in, or be
connected with (as a stockholder, partner, or otherwise), any business, individual, partner, firm,
corporation, or other entity that is then a competitor of the Company, its subsidiaries or
affiliates (each such competitor a “Competitor of the Company”); provided, however,
that the “beneficial ownership” by Executive, either individually or as a member of a “group,” as
such terms are used in Rule 13d of the General Rules and Regulations under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), of not more than five percent (5%) of the voting
stock of any publicly held corporation shall not alone constitute a violation of this Agreement.
Executive and the Company acknowledge and agree that the business of the Company extends throughout
the United States, and that the terms of the non-competition agreement set forth herein shall apply
on a nationwide basis throughout the United States.

          (c) Non-Solicitation of Customer and Suppliers. During the period of Executive’s
employment by the Company and, if Executive’s employment is terminated under Sections 5 above (and
provided the Company fulfills its obligations there under) until the twelfth month of the date of
Executive’s employment termination or for the period of one additional year thereafter if so
elected by the Company pursuant to Section 6. (d) below, Executive shall not, directly or
indirectly, influence or attempt to influence customers or suppliers of the Company or any of its
subsidiaries or affiliates to divert any of their business to any Competitor of the Company.

          (d) Extension of Periods of Non-competition and Non-solicitation.
At the sole election of the Company, it may extend the periods of non-competition and
non-solicitation as set forth in Paragraphs (b), (c) and (d) of this Section for an additional
twelve (12) months (to two years in total) for the following consideration to the Executive: in the
case of termination under Section 5 (a) and (d) by providing severance as set forth in Section 5.
(c) (i), and in the case of termination under Section 5. (c) by providing severance as set forth
therein for an additional twelve (12) month period.

          (e) Non-Solicitation of Employees. Executive recognizes that he possesses and will
posses Confidential Information about other employees of the Company, its subsidiaries or
affiliates, relating to their education, experience, skills, abilities, compensation and benefits,
and inter-personal relationships with customers of the Company, its subsidiaries or affiliates.
Executive recognizes that the information he possesses and will possess about these other employees
is not generally known, is of substantial value to the Company, its subsidiaries or affiliates in
developing their business and in securing and retaining customers, and has been and will be
acquired by him because of his business position with the Company, its subsidiaries or affiliates.

 

 

Executive agrees that, during the period of Executive’s employment by the Company and for a period
of one (1) year thereafter, he will not, directly or indirectly, solicit, recruit, induce or
encourage or attempt to solicit, recruit, induce, or encourage any employee of the Company, its
subsidiaries or affiliates (i) for the purpose of being employed by him or by any Competitor of the
Company on whose behalf he is acting as an agent, representative or employee or (ii) to terminate
his or her employment or any other relationship with the Company, its subsidiaries, or affiliates.
Executive also agrees that Executive will not convey any such Confidential Information or trade
secrets about other employees of the Company, its subsidiaries, or affiliates to any other person.

          (f) Injunctive Relief. It is expressly agreed that the Company will or would suffer
irreparable injury if Executive were to violate any of the provisions of this Section 6 and that
the Company would by reason of such violation be entitled to injunctive relief in a court of
appropriate jurisdiction, and Executive further consents and stipulates to the entry of such
injunctive relief in such a court prohibiting Executive from so violating Section 6 of this
Agreement.

          (g) Survival of Provisions. The obligations contained in this Section 6 shall survive
the termination or expiration of Executive’s employment with the Company and shall be fully
enforceable thereafter.

     7. No Conflict. Executive represents and warrants that Executive is not
subject to any agreement, instrument, order judgment or decree of any kind, or any other
restrictive agreement of any character, which would prevent Executive from entering into this
Agreement or would conflict with the performance of Executive’s duties pursuant to this Agreement.
Executive represents and warrants that Executive will not engage in any activity, which would
conflict with the performance of Executive’s duties pursuant to this Agreement.

     8. Notices. All notices and other communications under this Agreement
shall be in writing and shall be given by courier service or first-class mail, certified or
registered with return receipt requested, and shall be deemed to have been duly given on the date
receipt is recorded by the appropriate delivery service, or may be delivered personally by hand to
the respective persons named below:

	 	 	 
	If to Company:

	 	Pike Electric, Inc.

P.O. Box 868

100 Pike Way

Mount Airy, NC 27030

Attn: J. Eric Pike

Chairman and Chief Executive Officer
	 
	 	 
	With copies to:

	 	Pike Electric, Inc.

P.O. Box 868

100 Pike Way

Mount Airy, NC 27030

Attn: James R. Fox

Vice President and General Counsel

 

 

	 	 	 
	If to Executive:

	 	Anthony Slater

6440 Old US 421 Highway

East Bend, NC 27018
	 
	 	 
	With a copy to:

	 	N/A

Either party may change such party’s address for notices by notice duly given pursuant hereto.

     9. Dispute Resolution; Attorneys’ Fees. The Company and Executive agree that any
dispute arising as to the parties’ rights and obligations hereunder, other than with respect to
Section 6, shall, at the election and upon written demand of either party, be submitted to
arbitration before a single arbitrator in Delaware under the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association.

     10. Assignment; Successors. This Agreement is personal in its nature and neither of
the parties hereto shall, without the consent of the other, assign or transfer this Agreement or
any rights or obligations hereunder; provided that, in the event of the merger, consolidation,
transfer, or sale of all or substantially all of the assets of the Company with or to any other
individual or entity, this Agreement shall, subject to the provisions hereof, be binding upon and
inure to the benefit of such successor and such successor shall discharge and perform all the
promises, covenants, duties, and obligations of the Company hereunder.

     11. Governing Law. This Agreement and the legal relations thus created between the
parties hereto shall be governed by and construed under and in accordance with the laws of the
state of Delaware.

     12. Withholding. The Company shall make such deductions and withhold such amounts
from each payment made to Executive hereunder as may be required from time to time by law,
governmental regulation or order.

     13. Headings. Section headings in this Agreement are included herein for convenience
of reference only and shall not constitute a part of this Agreement for any other purpose.

     14. Waiver; Modification. Failure to insist upon strict compliance with any of the
terms, covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or
condition, nor shall any waiver or relinquishment of, or failure to insist upon strict compliance
with, any right or power hereunder at any one or more times be deemed a waiver or relinquishment of
such right or power at any other time or times. This

 

 

Agreement shall not be modified in any respect except by a writing executed by each party hereto.

     15. Severability. If for any reason any term or provision containing a restriction
set forth herein is held to be for a length of time which is unreasonable or in other way is
construed to be too broad or to any extent invalid, such term or provision shall not be determined
to be null, void and of no effect, but to the extent the same is or would be valid or enforceable
under applicable law, any court shall construe and reform this Agreement to provide for a
restriction having the maximum time period and other provisions as shall be valid and enforceable
under applicable law. If, notwithstanding the previous sentence, any term or provision of this
Agreement is held to be invalid or unenforceable, all other valid terms and provisions hereof shall
remain in full force and effect, and all of the terms and provisions of this Agreement shall be
deemed to be severable in nature.

     16. Entire Agreement; Effect on Certain Prior Agreements. This Agreement constitutes
the entire agreement between the parties with respect to the subject matter hereof and supersedes
any prior agreements between them with respect to the subject matter hereof, including all prior
employment, retention, severance or related agreements between Executive and the Company or any
successor, predecessor or affiliate. Without limiting the generality of the foregoing, the
obligations under this Agreement with respect to any termination of employment of Executive, for
whatever reason, supersede any severance or related obligations of the Company or any of its
successors, predecessors or affiliates in any plan of the Company or any of its successors,
predecessors or affiliates or any agreement between Executive and the Company or any of its
successors, predecessors or affiliates.

     17. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and Executive has hereunto signed this Agreement, as of the date first above
written.

	 	 	 	 	 
	PIKE ELECTRIC, INC.
	 
	 	 	 	 
	By:	 	/s/ J. Eric Pike
	 	 	 
	 
	 	 	 	 
	Its:	 	Chairman and CEO
	 	 	 
	 
	 	 	 	 
	Date:	 	10/10/06
	 	 	 
	 
	 	 	 	 
	EXECUTIVE
	 

	 
	 	/s/ Anthony K. Slater	 	 
	 	 	 
	 

	Date:
	 	10/10/06	 	 
	 	 	 

 

 

	 	 	 	 	 
	THE UNDERSIGNED has duly executed this Agreement, as of the date first above written, solely for
purposes of Section 4(b) hereof.
	 
	 	 	 	 
	PIKE ELECTRIC CORPORATION
	 
	 	 	 	 
	By:	 	/s/ J. Eric Pike
	 	 	 
	 
	 	 	 	 
	Its:	 	Chairman and CEO
	 	 	 
	 
	 	 	 	 
	Date:	 	10/10/06Ex-10.1

 

EXHIBIT 10.1

FIRST COMMERCE BANK

2002 STOCK OPTION PLAN

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Article 1
	 	Purpose of the Plan	 	 	1	 
	 
	 	 	 	 	 	 
	Article 2
	 	Certain Definitions and Terms	 	 	1	 
	Section 2.1
	 	Award	 	 	1	 
	Section 2.2
	 	Board	 	 	1	 
	Section 2.3
	 	Change of Control	 	 	1	 
	Section 2.4
	 	Code	 	 	2	 
	Section 2.5
	 	Company	 	 	2	 
	Section 2.6
	 	Company Stock	 	 	2	 
	Section 2.7
	 	Date of Grant	 	 	3	 
	Section 2.8
	 	Disability	 	 	3	 
	Section 2.9
	 	Exchange Act	 	 	3	 
	Section 2.10
	 	Fair Market Value	 	 	3	 
	Section 2.11
	 	Incentive Stock Option	 	 	3	 
	Section 2.12
	 	Nonstatutory Stock Option	 	 	3	 
	Section 2.13
	 	Option	 	 	3	 
	Section 2.14
	 	Parent	 	 	3	 
	Section 2.15
	 	Participant	 	 	3	 
	Section 2.16
	 	Restricted Stock	 	 	3	 
	Section 2.17
	 	Stock Option Committee	 	 	3	 
	Section 2.18
	 	Subsidiary	 	 	4	 
	Section 2.19
	 	Ten Percent Holder	 	 	4	 
	 
	 	 	 	 	 	 
	Article 3
	 	General Terms of the Plan	 	 	4	 
	Section 3.1
	 	Incentive and Nonstatutory Stock Options	 	 	4	 
	Section 3.2
	 	Stock	 	 	4	 
	Section 3.3
	 	Eligibility.	 	 	4	 
	 
	 	 	 	 	 	 
	Article 4
	 	Grant and Exercise of Stock Options	 	 	5	 
	Section 4.1
	 	Stock Option Grants	 	 	5	 
	Section 4.2
	 	Exercise Price	 	 	5	 
	Section 4.3
	 	Full and Partial Exercise	 	 	5	 
	Section 4.4
	 	Vesting and Exercise on Change of Control	 	 	6	 
	Section 4.5
	 	Forfeiture	 	 	7	 
	 
	 	 	 	 	 	 
	Article 5
	 	Method of Exercise	 	 	7	 
	Section 5.1
	 	Method of Exercise of Options	 	 	7	 
	Section 5.2
	 	Restrictions, Taxes, and Other Limitations	 	 	7	 
	 
	 	 	 	 	 	 
	Article 6
	 	Administration of the Plan	 	 	8	 
	Section 6.1
	 	Administration of the Plan	 	 	8	 
	Section 6.2
	 	Committee Authority and Discretion	 	 	8	 
	Section 6.3
	 	Administrative Discretion, Etc	 	 	9	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 6.4
	 	Committee Rules: Binding Determination	 	 	9	 
	Section 6.5
	 	Actions by the Committee	 	 	9	 
	 
	 	 	 	 	 	 
	Article 7
	 	Transferability	 	 	9	 
	 
	 	 	 	 	 	 
	Article 8
	 	Effective Date of the Plan, Termination, and Related Matters	 	 	9	 
	Section 8.1
	 	Effective Date	 	 	9	 
	Section 8.2
	 	Termination. Modification, Change	 	 	9	 
	Section 8.3
	 	Change in Capital Structure.	 	 	10	 
	 
	 	 	 	 	 	 
	Article 9
	 	Effective Date of the Plan	 	 	11	 
	 
	 	 	 	 	 	 
	Article 10
	 	General Terms and Provisions of the Plan	 	 	11	 
	Section 10.1
	 	Notice	 	 	11	 
	Section 10.2
	 	Interpretation	 	 	11	 
	Section 10.3
	 	Shareholder Rights	 	 	11	 
	Section 10.4
	 	No Contract of Employment	 	 	11	 
	Section 10.5
	 	Withholding	 	 	12	 
	Section 10.6
	 	Construction	 	 	12	 
	 
	 	 	 	 	 	 
	Article 11
	 	Shareholder Approval.	 	 	12	 

ii

 

FIRST COMMERCE BANK

2002 STOCK OPTION PLAN

     The Board of Directors of First Commerce Bank hereby adopts the First Commerce Bank 2002
Stock Option Plan as follows:

Article 1

Purposes of the Plan

     The purpose of this First Commerce Bank 2002 Stock Option Plan (the “Plan”) is to further the
long term stability and financial success of First Commerce Bank (the “Company”) by attracting and
retaining key employees and directors of the Company through the use of stock incentives. It is
believed that ownership of Company Stock will stimulate the efforts of those employees and
directors of the Company upon whose judgment and interest the Company is and will be largely
dependent for the successful conduct of its business. It is also believed that awards granted to
such persons under this Plan will strengthen their desire to remain with the Company and will
further the identification of those individuals’ interests with those of the Company’s
shareholders.

Article 2

Certain Definitions and Terms

     As used in the Plan, the following terms have the meanings indicate:

     Section 2.1 Award. “Award” means the grant of an Option under the Plan.

     Section 2.2 Board. “Board” means the board of directors of the Company.

     Section 2.3 Change of Control. “Change of Control” means:

	 	2.3.1	 	The acquisition, other than from the Company, by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either the then
outstanding shares of Company Stock or the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors, but excluding for this purpose, any such acquisition by
the Company or any of its subsidiaries, or any employee benefit plan (or
related trust) of the Company or its subsidiaries, or any corporation with
respect to which, following such acquisition, more than 50% of, respectively,
the then outstanding shares of common stock of such corporation and the
combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by

 

 

	 	 	 	the individuals and entities who were the beneficial owners, respectively,
of the Common Stock and voting securities of the Company immediately prior
to such acquisition in substantially the same proportion as their ownership,
immediately prior to such acquisition, of the then outstanding shares of
Common Stock of the Company or the combined voting power of all of the then
outstanding voting securities of the Company entitled to vote generally in
the election of directors, as the case may be; or

	 	2.3.2	 	Individuals who, as of the date hereof, constitute the Board
(as of the date hereof the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board, provided that any individual
becoming a director subsequent to the date hereof whose election or nomination
for election by the Company’s shareholders was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office is in connection with an actual or threatened election contest relating
to the election of the Directors of the Company (as such terms are used in Rule
14a-11 of Regulation 14A promulgated under the Exchange Act); or
	 
	 	2.3.3	 	Approval by the shareholders of the Company of a
reorganization, merger or consolidation, in each case, with respect to which
the individuals and entities who were the respective beneficial owners of the
Common Stock and voting securities of the Company immediately prior to such
reorganization, merger or consolidation do not, following such reorganization,
merger or consolidation, beneficially own, directly or indirectly, more than
50% of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
corporation resulting from such reorganization, merger or consolidation, or a
complete liquidation or dissolution of the Company of its sale or other
disposition of all or substantially all of the assets of the Company.

     Section 2.4 Code. “Code” means the Internal Revenue Code of 1986, as amended.

     Section 2.5 Company. “Company” means First Commerce Bank, a Tennessee banking
corporation, and any successor in interest thereto.

     Section 2.6 Company Stock. “Company Stock” means common stock, par value $1.00 per
share (“Common Stock”), of the Company. If the par value of the Company Stock is changed, or in the
event of a change in the capital structure of the Company (as provided in Section 8.3), the shares
resulting from such a change shall be deemed to be Company Stock within the meaning of the Plan.

2

 

     Section 2.7 Date of Grant. “Date of Grant” means the date on which an Award is
granted by the Board.

     Section 2.8 Disability. “Disability” or “Disabled” means, as to an Incentive Stock
Option, a Disability within the meaning of Code section 22(e)(3). As to all other Awards, the
Committee shall determine whether a Disability exists and such determination shall be conclusive.

     Section 2.9 Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934,
as amended.

     Section 2.10 Fair Market Value. “Fair Market Value” means, if the Company Stock is not
publicly traded, the value of a share of Common Stock determined in good faith by the Board. If
Company Stock is publicly traded, the term means, on any given date, the average of the high and
low price on such date, or if shares were not traded on that date, the last date on which shares
were traded, as reported in the Wall Street Journal for the stock exchange on which the
shares are traded.

     Section 2.11 Incentive Stock Option. “Incentive Stock Option” means an Option intended
to meet the requirements of, and qualify for favorable Federal income tax treatment under, Code
section 422.

     Section 2.12 Nonstatutory Stock Option. “Nonstatutory Stock Option” means an Option,
which does not meet the requirements of Code section 422, or even if meeting the requirements of
Code section 422, is not intended to be an Incentive Stock Option and is so designated.

     Section 2.13 Option. “Option” means a right to purchase Company Stock granted under
the Plan, at a price determined in accordance with the Plan.

     Section 2.14 Parent. ‘Parent” means, with respect to any corporation, a present or
future “parent corporation” of that corporation within the meaning of Code section 424(e).

     Section 2.15 Participant. ‘Participant” means any eligible employee or director of the
Company or any Parent or Subsidiary who receives an Award under the Plan.

     Section 2.16 Restricted Stock. “Restricted Stock means shares received pursuant to
any Award that are made subject to specific restrictions on voting, transferability or other
matters and set forth in a specific agreement. (“Restricted Stock Agreement”).

     Section 2.17 Stock Option Committee. “Stock Option Committee” or “Committee” means
the committee or committees appointed by the Board as described under Article 6 or, if no committee
has been appointed, the Board of Directors.

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     Section 2.18 Subsidiary. “Subsidiary” means, with respect to any corporation, a
present or future “subsidiary corporation” of that corporation within the meaning of Code section
424(f).

     Section 2.19 Ten Percent Holder. “10% Shareholder” means a person who owns, directly
or indirectly, stock possessing more than 10% of the total combined voting power of all classes of
stock of the Company or any Parent or Subsidiary of the Company. Indirect ownership of stock shall
be determined in accordance with Code section 424(d).

Article 3

General Terms of the Plan

     Section 3.1 Incentive and Nonstatutory Stock Options. Options granted under the Plan
may be Incentive Stock Options or Nonstatutory Stock Options.

     Section 3.2 Stock. Subject to Section 8.3 of the Plan, there shall be reserved for
issuance under the Plan an aggregate of Two Hundred Twenty Thousand (220,000) shares of Company
Stock, which shall be authorized, but unissued shares, including shares of the Company Stock that
have been reacquired by the Company. Shares allocable to Options or portions thereof granted under
the Plan that expire or otherwise terminate unexercised shall again be available for an Award under
the Plan.

     Section 3.3 Eligibility.

	 	3.3.1	 	Any employee of the Company (or Parent or Subsidiary of the
Company) who, in the judgment of the Committee has contributed or can be
expected to contribute to the profits or growth of the Company (or Parent or
Subsidiary) shall be eligible to receive Incentive Stock Options under the
Plan. Directors of the Company who are employees and are not members of the
Committee are eligible to participate in the Plan. The Committee shall have the
power and complete discretion, as provided in Article 6, to select eligible
employees to receive Awards and to determine for each employee the terms and
conditions, the nature of the award and the number of shares to be allocated to
each employee as part of each Award.
	 
	 	3.3.2	 	Any employee or director of the Company (or Parent or
Subsidiary of the Company), whether or not an employee of the Company or any
Parent or Subsidiary, who, in the judgment of the Committee has contributed or
can be expected to contribute to the profits or growth of the Company (or
Parent or Subsidiary) shall be eligible to receive Nonstatutory Stock Options
under the Plan. The Committee shall have the power and complete discretion, as
provided in Article 6, to select participants to receive Awards and to
determine for each Participant the terms and conditions, the nature of the
award and the number of shares to be allocated to each Participant as part of
each Award.

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	 	3.3.3	 	The grant of an Award shall not obligate the Company or any
Parent or Subsidiary of the Company to pay an employee any particular amount of
remuneration, to continue the employment of the employee after the grant or to
make further grants to the employee at any time thereafter.

Article 4

Grant and Exercise of Stock Options

     Section 4.1 Stock Option Grants. Whenever the Committee deems it appropriate to grant
Options, notice shall be given to the eligible Participant stating the number of shares for which
Options are granted, the Option price per share, whether the Options are Incentive Stock Options or
Nonstatutory Stock Options, and the conditions to which the grant and exercise of the Options are
subject. This notice, when duly accepted in writing by the Participant, shall become a stock option
agreement between the Company and the Participant. Any grant hereunder shall be subject to the
forfeiture provision set out in Section 4.5.

     Section 4.2 Exercise Price. The exercise price of shares of Company Stock covered by
an Incentive Stock Option shall be not less than 100% of the Fair Market Value of such shares on
the Date of Grant. If the Participant is a 10% Shareholder and the Option is an Incentive Stock
Option, the exercise price shall be not less than 110% of the Fair Market Value of such shares on
the Date of Grant. The exercise price of Company Stock covered by a Nonstatutory Option shall be
set by the Committee or the Board on the Date of Grant.

     Section 4.3 Full and Partial Exercise. Options may be exercised in whole or in part
at such times as may be specified by the Committee in the Participant’s stock option agreement,
provided that the exercise provisions for Incentive Stock Options shall in all events not be more
liberal than the following provisions:

	 	4.3.1	 	No Incentive Stock Option may be exercised after the first to
occur of (x) ten years (or, in the case of an Incentive Stock Option granted to
a 10% Shareholder, five years) from the Date of Grant, (y) three months from
the employee’s retirement or termination of employment with the Company and its
Parent and Subsidiary corporations for reasons other than Disability or death,
or (z) one year from the employee’s termination of employment on account of
Disability or death.
	 
	 	4.3.2	 	Except as otherwise provided in this paragraph, no Incentive
Stock Option may be exercised unless the employee is employed by the Company or
a Parent or Subsidiary of the Company at the time of the exercise (or was so
employed not more than three months before the time of the exercise) and has
been employed by the Company or a Parent or Subsidiary of the Company at all
times since the Date of Grant. If an employee’s employment is terminated other
than by reason of his Disability or death at a time when the employee holds an
Incentive Stock Option that is exercisable (in whole or in part), the employee
may exercise any or all of

5

 

	 	 	 	the exercisable portion of the Incentive Stock Option (to the extent
exercisable on the date of termination) within three months after the
employee’s termination of employment. If an employee’s employment is
terminated by reason of his Disability at a time when the employee holds an
Incentive Stock Option that is exercisable (in whole or in part), the
employee may exercise any or all of the exercisable portion of the Incentive
Stock Option (to the extent exercisable on the date of Disability) within
one year after the employee’s termination of employment. If an employee’s
employment is terminated by reason of his death at a time when the employee
holds an Incentive Stock Option that is exercisable (in whole or in part),
the Incentive Stock Option may be exercised (to the extent exercisable on
the date of death) within one year after the employee’s death by the person
to whom the employee’s rights under the Incentive Stock Option shall have
passed by will or by the laws of descent and distribution.
	 
	 	4.3.3	 	An Incentive Stock Option by its terms, shall be exercisable
in any calendar year only to the extent that the aggregate Fair Market Value
(determined at the Date of Grant) of the Company Stock with respect to which
incentive stock options are exercisable for the first time during the calendar
year does not exceed $100,000 (the “Limitation Amount”). Incentive Stock
Options granted under the Plan and similar incentive options granted under all
other plans of the Company and any Parent or Subsidiary of the Company shall be
aggregated for purposes of determining whether the Limitation Amount has been
exceeded. The Board may impose such conditions as it deems appropriate on an
Incentive Stock Option to ensure that the foregoing requirement is met. If
Incentive Stock Options that first become exercisable in a calendar year exceed
the Limitation Amount, the excess Options will be treated as Nonstatutory Stock
Options to the extent permitted by law.
	 
	 	4.3.4	 	No Incentive or Nonstatutory Stock Option shall vest more
rapidly than pro rata over three years (that is, one-third for each full year),
nor shall any such option vest over more than ten years.

     Section 4.4 Vesting and Exercise on Change of Control. The Committee may, in its
discretion, grant Options which by their terms become fully exercisable upon a Change of Control,
notwithstanding other conditions on exercisability in the stock option agreement. Unless otherwise
specified by the terms of a specific grant, all Options granted under the Plan shall vest
immediately upon the consummation of a Change in Control and shall be deemed to have vested upon
the first execution of any agreement pursuant to which a Change of Control shall have occurred,
notwithstanding the subsequent amendment, restatement, modification or other change in such
agreement; provided that, exercise of Options deemed vested solely by virtue of any Change of
Control shall not be permitted unless and until such Change of Control shall have been consummated
and, further provided, in the event that a Change of Control shall not in fact occur as a result of
any such agreement, then the Options that would otherwise have vested

6

 

solely by reason of such agreement shall not, for that reason, be deemed to have vested.
Notwithstanding the foregoing, this Section 4.4 shall not be effective for a period of three years
from the date that the Company receives its Certificate of Authority to open for business. After
such three year period, the preceding sentence shall be void and of no further effect. If the
management of the Bank adopts a plan to create a one-bank holding company for the Bank with a view
to retaining the shareholders of the Bank as the shareholders of the holding company (except only
for dissenters’ and fractional shares), such transaction shall not, in and of itself, constitute a
change in control hereunder so long as the holding company agrees to exchange its options for
options of the Bank on an option-for-option basis, subject only to applicable tax laws, rules and
regulations.

     Section 4.5 Forfeiture. Any Option granted or Award made pursuant to this Plan shall
be exercised or, if not exercised, forfeited at the direction of the Company or the Company’s
primary federal regulator if so required by said primary federal regulator if the Company’s capital
falls below the minimum requirements as determined by the Company’s state or primary federal
regulator.

Article 5

Method of Exercise

     Section 5.1 Method of Exercise of Options. Options may be exercised by the
Participant giving written notice of the exercise to the Company, stating the number of shares the
Participant has elected to purchase under the Option. In the case of the purchase of shares under
an Option, such notice shall be effective only if accompanied by the exercise price in full in
cash; provided that if the terms of an Option so permit, the Participant (i) may deliver, or cause
to be withheld from the Option Shares, shares of Company Stock (valued at their Fair Market Value
on the date of exercise) in satisfaction of all or any part of the exercise price, or (ii) if then
permitted by law and by the Committee, on terms and conditions specified by the Committee from time
to time as to any Participant(s), individually or as a group, deliver an interest bearing
promissory note, payable to the Company, in payment of all or part of the exercise price, with such
payment terms (including down payment, if any) and maturity date, together with such collateral as
may be required by the Committee at the time of exercise. The interest rate under any such
promissory note shall be equal to the minimum interest rate required at the time to avoid imputed
interest to the Participant under the Code.

     Section 5.2 Restrictions, Taxes, and Other Limitations. The Company may place on any
certificate representing Company Stock issued upon the exercise of an Option any legend deemed
desirable by the Company’s counsel to comply with Federal or state securities laws, and the Company
may require of the Participant a customary written indication of his investment intent. Until the
Participant has made any required payment, including any applicable withholding taxes, and has had
issued to him a certificate for the shares of Company Stock acquired, he shall possess no
shareholder rights with respect to the shares.

     As an alternative to making a cash payment to the Company to satisfy a Participant’s tax
withholding obligations, if the Option agreement so provides, the Participant may, subject to the

7

 

other provisions set forth in this Plan, elect to (i) deliver shares of already owned Company
Stock which the shareholder has owned for at least six months or (ii) have the Company retain that
number of shares of Company Stock that would satisfy applicable Federal, state and local tax
liabilities required to be withheld by the Company from the Participant arising in the year of its
exercise upon the exercise of a Nonstatutory Stock Option. The Committee shall have sole discretion
to approve or disapprove any such election. However, notwithstanding this provision permitting a
“cashless exercise,” such cashless exercise shall not be permitted so long as (1) such type of
exercise is not permitted by the Company’s primary federal regulator or (2) the securities covered
by this Plan consist of the stock of the First Commerce Bank (as opposed to, for example, a parent
holding company of the Company).

Article 6

Administration of the Plan

     Section 6.1 Administration of the Plan. The Plan shall be administered by the
Committee consisting of not less than two directors of the Company, who shall be appointed by the
Board. In the event the Company becomes a Public Company, then the Committee shall be so
constituted as to permit the plan to comply with Rule 16b-3 (as promulgated under the Exchange
Act). The Committee shall have general authority to impose any limitation or condition upon an
Award the Committee deems appropriate to achieve the objectives of the Award and the Plan and, in
addition, and without limitation and in addition to powers set forth elsewhere in the Plan, shall
have the following specific authority:

     Section 6.2 Committee Authority and Discretion. The Committee shall have the power
and complete discretion to determine (i) which eligible participants shall receive an Award, (ii)
the number of shares of Company Stock to be covered by each Award, (iii) whether Options shall be
Incentive Stock Options or Nonstatutory Stock Options, (iv) the fair market value of Company Stock,
(v) the time or times when an Award shall be granted, (vi) whether an Award shall become vested
over a period of time and when it shall be fully vested, (vii) when options may be exercised,
(viii) whether a Disability exists, (ix) the manner in which payment will be made upon the exercise
of Options, (x) conditions relating to the length of time before disposition of Company Stock
received upon the exercise of Options is permitted, (xi) whether to approve a Participant’s
election (x) to deliver shares of already owned Company Stock to satisfy tax liabilities arising
upon the exercise of a Nonstatutory Stock Option or (y) to have the Company withhold from the
shares to be issued upon the exercise of a Nonstatutory Stock Option that number of shares
necessary to satisfy tax liabilities arising from such exercise, (xii) notice provisions relating
to the sale of Company Stock acquired under the Plan, and (xiii) any additional requirements
relating to Awards that the Committee deems appropriate. Notwithstanding the foregoing, no “tandem
stock options” (where two stock options are issued together and the exercise of one option affects
the right to exercise the other option) may be issued in connection with Incentive Stock Options.
The Committee shall also have the power to amend the terms of previously granted Awards so long as
the terms as amended are consistent with the terms of the Plan and provided that the consent of the
Participant is obtained with respect to any amendment that would be detrimental to him.

8

 

     Section 6.3 Administrative Discretion, Etc. Administrative discretion regarding the
selection of any director the Corporation to whom options may be granted pursuant to this Plan, or
the determination of the number of shares of Common Stock which maybe allocated under such options,
will be exercised by a Committee of two or more directors having full authority to act in the
matter, all of whom must be, if the Corporation is a Public Company (that is, a company any of the
shares of which are registered under the Exchange Act), Disinterested (as that term is defined in
Rule 16b-3). Administrative discretion regarding the selection of any officer of the Corporation
(who is not a director) to whom options may be granted pursuant to this Plan once the Corporation
becomes a Public Company, or the determination of the number of shares of Common Stock which may be
allocated under such options, will be exercised by (a) the Board of Directors, if each of its
members is Disinterested, or (b) a committee of two or more directors, all of whom are
Disinterested.

     Section 6.4 Committee Rules: Binding Determination. The Committee may adopt rules and
regulations for carrying out the Plan. The interpretation and construction of any provision of the
Plan by the Committee shall be final and conclusive. The Committee may consult with counsel, who
may be counsel to the Company, and shall not incur any liability for any action taken in good faith
in reliance upon the advice of counsel.

     Section 6.5 Actions by the Committee. A majority of the members of the Committee
shall constitute a quorum, and all actions of the Committee shall be taken by a majority of the
members present. Any action may be taken by a written instrument signed by all of the members, and
any action so taken shall be fully effective as if it had been taken at a meeting.

Article 7

Transferability

     Incentive Stock Options by their terms, shall not be transferable or assignable by the
Participant except by will or by the laws of descent and distribution and shall be exercisable,
during the Participant’s lifetime, only by the Participant or by his guardian or legal
representative. Nonstatutory Stock Options by their terms, shall not be transferable or assignable
by the Participant except by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined by the Code, Title I of the Employee Retirement
Income Security Act, or the rules thereunder, and shall be exercisable, during the Participant’s
lifetime, only by the Participant or by his guardian or legal representative.

Article 8

Effective Date of the Plan, Termination, and Related Matters

     Section 8.1 Effective Date. This Plan shall be effective as provided in Article 9
hereof.

     Section 8.2 Termination. Modification, Change. If not sooner terminated by the

9

 

Board, this Plan shall terminate at the close of business on March 31, 2011. No Awards shall
be made under the Plan after its termination. The Board may terminate the Plan or may amend the
Plan in such respects as it shall deem advisable; provided, that in the event the Company registers
its stock under Section 12 of the Exchange Act and thereby becomes a “Public Company,” no change
shall be made that would result in the Plan no longer being in compliance with Rule 16b-3, as such
rule may be amended from time to time, or with any successor of the rule or other comparable
regulatory requirement. The company will use its best efforts to maintain the Plan and to assure
that options are granted and exercised under the Plan in accordance with Rule 16b-3, including,
without limitation, the seeking of any appropriate modifications or amendments to the Plan and all
requisite approvals and consents of the same. No changes to the Plan shall be made which increases
the total number of shares of Company Stock reserved for issuance pursuant to Awards granted under
the Plan (except pursuant to Section 8.3), expands the class of persons eligible to receive Awards,
or materially increases the benefits accruing to Participants under the Plan, unless such change is
authorized by the shareholders of the Company. A termination or amendment of the Plan shall not,
without the consent of the Participant, detrimentally affect a Participant’s rights under an Award
previously granted to him.

     Section 8.3 Change in Capital Structure.

	 	8.3.1	 	In the event of a stock dividend, stock split or combination
of shares, recapitalization or merger in which the Company is the surviving
corporation or other change in the Company’s capital stock (including, but not
limited to, the creation or issuance to shareholders generally of rights,
options or warrants for the purchase of Common Stock or preferred stock of the
Company), the number and kind of shares of stock or securities of the Company
to be subject to the Plan and to Options then outstanding or to be granted
thereunder, the maximum number of shares or securities which may be delivered
under the Plan, the exercise price and other relevant provisions shall be
appropriately adjusted by the Committee, whose determination shall be binding
on all persons. If the adjustment would produce fractional shares with respect
to any unexercised Option, the committee may adjust appropriately the number of
shares covered by the Option so as to eliminate the fractional shares.
	 
	 	8.3.2	 	If the Company is a party to a consolidation or a merger in
which the Company is not the surviving corporation, a transaction that results
in the acquisition of substantially all of the Company’s outstanding stock by a
single person or entity, or a sale or transfer of substantially all of the
Company’s assets, the Committee may take such actions with respect to
outstanding Awards as the Committee deems appropriate.

10

 

	 	8.3.3	 	Notwithstanding anything in the Plan to the contrary, the
Committee may take the foregoing actions without the consent of any
Participant, and the Committee’s determination shall be conclusive and binding
on all persons for all purposes.

Article 9

Effective Date of the Plan

     This Plan shall be effective on the date that the Company receives its Certificate of
Authority from the Tennessee Department of Financial Institutions and shall be submitted to the
shareholders of the Company for approval. Until (i) the Plan has been approved by the Company’s
shareholders, and (ii) the requirements of any applicable securities laws have been met, no Option
shall be exercisable. Until the foregoing conditions are met, the Company may revoke any Option
granted and/or terminate the Plan.

Article 10

General Terms and Provisions of the Plan

     Section 10.1 Notice. All notices and other communications required or permitted to be
given under this Plan shall be in writing and shall be deemed to have been duly given if delivered
personally or mailed first class, postage prepaid, as follows (a) if to the Company, at its
principal business address to the attention of the Treasurer; (b) if to any Participant, at the
last address of the Participant reflected in the Company’s records at the time the notice or other
communication is sent.

     Section 10.2 Interpretation. The terms of this Plan are subject to all present and
future regulations and rulings of the Secretary of the Treasury or his delegate relating to the
qualification of Incentive Stock Options under the Code. If any provision of the Plan conflicts
with any such regulation or ruling, then that provision of the Plan shall be, to the extent
practicable, deemed amended to the extent required to comply with such regulations and rulings or,
if it is impracticable or unlawful so to construe the provision, deemed to be void and of no
effect.

     Section 10.3 Shareholder Rights. No Participant shall have any rights as a
shareholder of the Company as a result of the grant of an Option under this Plan or his or her
exercise or surrender of such Option pending the actual delivery of the Stock subject to such
Option to such Participant. Subject to the other terms of the Plan, a Participant’s rights as a
shareholder in the shares of Stock underlying a Restricted Stock grant which is effective shall be
set forth in the related Restricted Stock Agreement.

     Section 10.4 No Contract of Employment. The grant of an Option or Restricted Stock to
a Participant under this Plan shall not constitute a contract of employment and shall not confer on
a Participant any rights upon his or her termination of employment in addition to those rights, if
any, expressly set forth in the Option Agreement which evidences his or her Option or the
Restricted Stock Agreement related to his or her Restricted Stock.

11

 

     Section 10.5 Withholding. The exercise or surrender of any Option granted under this
Plan and the acceptance of a Restricted Stock grant shall constitute a Participant’s full and
complete consent to whatever action the Committee deems necessary to satisfy the federal and state
tax withholding requirements, if any, which the Committee in its discretion deems applicable to
such exercise or surrender or such Restricted Stock. The Committee also shall have the right to
provide in an Option Agreement or Restricted Stock Agreement that a Participant may elect to
satisfy federal and state tax withholding requirements through a reduction in the number of shares
of Stock actually transferred to him or to her under this Plan, and any such election and any such
reduction shall be effected so as to satisfy the conditions to the exemption under Rule 16b-3.

     Section 10.6 Construction. This Plan shall be construed under the laws of the State
of Tennessee.

Article 11

Shareholder Approval

     The Plan is subject to approval by the shareholders of the Company at the Organizational
Meeting of the Shareholders to be held on or about November 26, 2002. If the Plan, as herein amended, is
not so approved by the shareholders, the Plan shall be deemed suspended until such time as the
Shareholders approve the Plan, to be effective on and as of the date of such approval.

     IN WITNESS WHEREOF, First Commerce Bank has caused its duly authorized officer to execute this
Plan this
12th day
of October, 2002, to evidence its adoption of this Plan.

	 	 	 	 	 
	 	FIRST COMMERCE BANK

 	 
	 	By:  	/s/ W. B. Marsh	 
	 	 	Bill Marsh, President 	 
	 	 	 	 
	 

Date Plan Adopted by Board of Directors: October 12, 2002

Date Plan Approved by Shareholders: November 26, 2002

12

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