Document:

EX-4.1 AMENDMENT #2, APRIL 23, 2004 RIGHTS AGREE

 

Exhibit 4.1

AMENDMENT NO. 2

     AMENDMENT NO. 2, dated as of April 23, 2004 (the “Amendment”), to the
Rights Agreement dated as of April 27, 1994, and as amended on March 31, 1999
(the “Rights Agreement”), between AGCO Corporation, a Delaware corporation (the
“Company”), and SunTrust Bank, a Georgia banking corporation, as successor to
Trust Company Bank, a Georgia banking corporation, and Chemical Bank, a New
York banking corporation (the “Rights Agent”).

W I T N E S S E T H

     WHEREAS, the Company and the Rights Agent have heretofore executed and
entered into the Rights Agreement; and

     WHEREAS, pursuant to Section 26 of the Rights Agreement, the Company and
the Rights Agent may from time to time supplement or amend any provision of the
Rights Agreement.

     NOW THEREFORE, in consideration of good and valuable consideration, the
receipt and sufficiency of which are herby acknowledged, the parties hereto
agree as follows:

1.     The Rights Agreement is hereby amended as follows:

     (a) Section 1(q) of the Rights Agreement is hereby amended by deleting the
text thereof in its entirety and substituting the following in lieu thereof:

     “(q) “Independent Director” shall mean a Person, while such Person
is a member of the Board, who shall be determined to be independent under
the listing standards of the New York Stock Exchange and who is not an
Acquiring Person, or an Affiliate or an Associate of an Acquiring Person,
or a representative of an Acquiring Person, or of any such Affiliate or
Associate; provided, however, that the fact that a Person is nominated
for election as a director by an Acquiring Person or any such Affiliate,
Associate or representative, or the fact that an Acquiring Person or any
such Affiliate, Associate or representative votes in favor of the
election of a Person as a director, shall not, in and of itself,
disqualify a Person from being an Independent Director provided that such
Person does not have any agreement or understanding with such Acquiring
Person, Affiliate, Associate or representative with respect to how such
Person will vote on any future transactions.”

     (b) Section 7 of the Rights Agreement is hereby amended as follows:

	 	 	 
	

	 	(i) The definition of “Final Expiration Date” in Section 7(a) is
hereby amended by deleting clause (i) of the first sentence thereof
in its entirety and substituting the following in lieu thereof:
	 
	 	 
	

	 	“(i) the Close of Business on April 26, 2014 (the “Final Expiration
Date”),”

 

 

	 	 	 
	

	 	(ii) The text of Section 7(b) is hereby amended by deleting the
text in its entirety and substituting the following in lieu
thereof:

     “The Purchase Price for each one one-hundredth of a share of
Preferred Stock pursuant to the exercise of a Right shall initially be
$110, and shall be subject to adjustment from time to time as provided in
Sections 11 and 13(a) hereof and shall be payable in accordance with
paragraph (c) below.”

     (c) Section 11 of the Rights Agreement is hereby amended by inserting the
following as a new second sentence in Section 11:

     “Notwithstanding the foregoing, no adjustments to the Purchase Price
pursuant to this Section 11 shall be made for the occurrence of any event
which occurred prior to April 23, 2004 that otherwise would have required
an adjustment to the Purchase Price pursuant to this Section 11.”

     (d) Section 25 of the Rights Agreement is hereby amended as follows:

	 	 	 
	 

	 	(i) The address of the Company contained in the notice provision of
Section 25 shall be amended by deleting the address in its entirety
and substituting the following in lieu thereof:

AGCO Corporation

4205 River Green Parkway

Duluth, Georgia 30096

Attention: Corporate Secretary

	 	 	 
	 

	 	(ii) The address of the Rights Agent contained in the notice
provision of Section 25 shall be amended by deleting the address in
its entirety and substituting the following in lieu thereof:

SunTrust Bank

P.O. Box 4625

Atlanta, Georgia 30302

Attention: Department Manager

     (e) Section 28 is hereby amended as follows:

	 	 	 
	 

	 	(i) Section 28 is subdivided into two paragraphs to accommodate the
new Section 28(b). The current text under Section 28 is now
contained in Section 28(a).
	 
	

	 	(ii) A new Section 28(b) is inserted and reads as follows:

2

 

	 	 	 
	

	 	“(b) It is understood that the TIDE Committee (as defined below) of
the Board of Directors shall review and evaluate this Agreement in order
to consider whether the maintenance of this Agreement continues to be in
the interests of the Company, its shareholders and any other relevant
constituencies of the Company, at least every three years, or sooner if
any Person shall have made a proposal to the Company, or taken any other
action, that, if effective, could cause such Person to become an
Acquiring Person hereunder, if a majority of the members of the TIDE
Committee shall deem such review and evaluation appropriate after giving
due regard to all relevant circumstances. Following each such review,
the TIDE Committee will communicate its conclusions to the full Board of
Directors, including any recommendation in light thereof as to whether
this Agreement should be modified or the Rights should be redeemed. “TIDE
Committee” shall mean a committee appointed by the Board of Directors of
the Company to fulfill the foregoing duties and shall be comprised of
members of the Board of Directors who are Independent Directors. The
Board of Directors may designate an existing committee of the Board of
Directors to serve as the TIDE Committee provided that the members of
such committee satisfy the foregoing requirements.”

	 	 	 
	(f)

	 	Attachment B to the Rights Agreement is hereby amended as follows:
	 
	 	 
	

	 	(i) All references in Attachment B to the date “April 26, 2004” are
deleted and shall be replaced with the date “April 26, 2014.”
	 
	 	 
	

	 	(ii) All references in Attachment B to the Purchase Price of “$200”
are deleted and shall be replaced with a Purchase Price of “$110.”
	 
	 	 
	(g)

	 	Attachment C to the Rights Agreement is hereby amended as follows:
	 
	 	 
	

	 	(i) All references in Attachment C to the date “April 26, 2004” are
deleted and shall be replaced with the date “April 26, 2014.”
	 
	 	 
	

	 	(ii) All references in Attachment C to the Purchase Price of “$200”
are deleted and shall be replaced with a Purchase Price of “$110.”
	 
	 	 
	

	 	(iii) The sixth paragraph in Attachment C is deleted in its
entirety and is replaced with the following:

	 	 	 
	

	 	      “For example, at an exercise price of $110 per Right, each Right not
owned by an Acquiring Person (or by certain related parties) following an
event set forth in the preceding paragraph would entitle its holder to
purchase $220 worth of Common Stock (or other consideration), as noted
above) for $110. Assuming that the Common Stock had a per share value of
$20 at such time, the holder of each valid Right would be entitled to
purchase 11 shares of Common Stock for $110.”
	 
	 	 
	2.

	 	Except as amended hereby, the Rights Agreement shall remain in full force and effect.
	 
	 	 
	3.

	 	This Amendment shall be governed by the terms of the Rights Agreement,
including without limitation Sections 29 through 33.

3

 

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the
date first written above.

	 	 	 	 	 
	 	 	AGCO CORPORATION
	 	 	 	 	 
	 	 	
By:	 	/s/ Stephen J. Lupton

Stephen J. Lupton

Senior Vice President - Corporate

Development and General Counsel
	 	 	 	 	 
	 	 	SUNTRUST BANK
	 	 	 	 	 
	 	 	By:	 	/s/ Letitia A. Radford

	 	 	Name:

Title:	 	Letitia A. Radford

Vice President

4EX-10.1 2004 EQUITY INCENTIVE PLAN

 

EXHIBIT 10.1

PINNACLE FINANCIAL PARTNERS, INC.

2004 EQUITY INCENTIVE PLAN

     Section 1. PURPOSE

     This plan shall be known as the “Pinnacle Financial Partners, Inc. 2004
Equity Incentive Plan” (the “Plan”). The purpose of the Plan is to promote the
interests of Pinnacle Financial Partners, Inc., a Tennessee corporation (the
“Company”), and its shareholders by (i) attracting and retaining Associates of
the Company and its Subsidiaries and Affiliates; (ii) motivating such
individuals by means of performance-related incentives to achieve long-range
performance goals, (iii) enabling such individuals to participate in the
long-term growth and financial success of the Company, (iv) encouraging
ownership of stock in the Company by such individuals, and (v) linking their
compensation to the long-term interests of the Company and its shareholders.
With respect to any awards granted under the Plan that are intended to comply
with the requirements of “performance-based compensation” under Section 162(m)
of the Code, the Plan shall be interpreted in a manner consistent with such
requirements.

     Section 2. DEFINITIONS

     As used in the Plan, the following terms shall have the meanings set forth
below:

	 	a)	 	“AFFILIATE” shall mean (i) any entity that, directly or
indirectly, is controlled by the Company, (ii) any entity in which
the Company has a significant equity interest, (iii) an affiliate of
the Company, as defined in Rule 12b-2 promulgated under Section 12 of
the Exchange Act, and (iv) any entity in which the Company has at
least twenty percent (20%) of the combined voting power of the
entity’s outstanding voting securities, in each case as designated by
the Board as being a participating employer in the Plan.
	 
	 	b)	 	“ASSOCIATE” shall mean a current or prospective officer or
employee of the Company or of any Subsidiary or Affiliate.
	 
	 	c)	 	“AWARD” shall mean any Option, Stock Appreciation Right,
Restricted Share Award, Restricted Share Unit, Performance Unit
Award, Performance Share Award, Performance Award, Other Stock-Based
Award or other award granted under the Plan, whether singly, in
combination or in tandem, to a Participant by the Committee (or the
Board) pursuant to such terms, conditions, restrictions and/or
limitations, if any, as the Committee (or the Board) may establish.
	 
	 	d)	 	“BANK” shall mean Pinnacle National Bank.
	 
	 	e)	 	“AWARD AGREEMENT” shall mean any written agreement, contract or
other instrument or document evidencing any Award, which may, but
need not, be executed or acknowledged by a Participant.
	 
	 	f)	 	“BOARD” shall mean the board of directors of the Company.
	 
	 	g)	 	“CAUSE” shall have the same meaning as provided in the
employment agreement between the Participant and the Company or any
Affiliate on the date of Termination of Service, or if no such
definition or employment agreement exists, “Cause” shall mean conduct
amounting to (1) fraud or dishonesty against the Company or any
Affiliate; (2) the Participant’s willful misconduct, repeated refusal
to follow the reasonable directions of the Board or knowing violation
of law in the course of performance of the duties of Participant’s
service with the Company or any Affiliate; (3) repeated absences from
work without a reasonable excuse; (4) repeated intoxication with
alcohol or drugs while on the Company’s or any Affiliate’s premises
during regular business hours; (5) a conviction or plea of guilty or
NOLO CONTENDERE to a felony or a crime involving dishonesty; or (6) a
breach or violation of the terms of any agreement to which
Participant and the Company or any Affiliate are party.
	 
	 	h)	 	“CHANGE IN CONTROL” shall mean any one of the following events
which may occur after the date the Award is granted:

	 	 	 	 	 
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	 	1.	 	the acquisition by any person or persons
acting in concert of the then outstanding voting securities
of either the Bank or the Company, if, after the
transaction, the acquiring person (or persons) owns,
controls or holds with power to vote forty percent (40%) or
more of any class of voting securities of either the Bank
or the Company, as the case may be;
	 
	 	2.	 	within any twelve-month period the persons
who were directors of either the Bank or the Company
immediately before the beginning of such twelve-month
period (the “Incumbent Directors”) shall cease to
constitute at least a majority of such board of directors;
provided that any director who was not a director as of the
beginning of such twelve-month period shall be deemed to be
an Incumbent Director if that director was elected to such
board of directors by, or on the recommendation of or with
the approval of, at least two-thirds of the directors who
then qualified as Incumbent Directors; and provided further
that no director whose initial assumption of office is in
connection with an actual or threatened election contest
relating to the election of directors shall be deemed to be
an Incumbent Director;
	 
	 	3.	 	a reorganization, merger or consolidation,
with respect to which persons who were the shareholders of
either the Bank or the Company, as the case may be,
immediately prior to such reorganization, merger or
consolidation do not, immediately thereafter, own more than
fifty percent (50%) of the combined voting power entitled
to vote in the election of directors of the reorganized,
merged or consolidated company’s then outstanding voting
securities; or
	 
	 	4.	 	the sale, transfer or assignment of all or
substantially all of the assets of the Company and its
subsidiaries to any third party.

	 	i)	 	“CODE” shall mean the Internal Revenue Code of 1986, as amended
from time to time.
	 
	 	j)	 	“COMMITTEE” shall mean a committee of the Board composed solely
of not less than two Non-Employee Directors, each of whom shall be a
“Non-Employee Director” for purposes of Exchange Act Section 16 and
Rule 16b-3 thereunder and an “outside director” for purposes of
Section 162(m) and the regulations promulgated under the Code.
	 
	 	k)	 	“COVERED OFFICER” shall mean at any date (i) any individual
who, with respect to the previous taxable year of the Company, was a
“covered employee” of the Company within the meaning of Section
162(m); provided, however, that the term “Covered Officer” shall not
include any such individual who is designated by the Committee, in
its discretion, at the time of any Award or at any subsequent time,
as reasonably expected not to be such a “covered employee” with
respect to the current taxable year of the Company and (ii) any
individual who is designated by the Committee, in its discretion, at
the time of any Award or at any subsequent time, as reasonably
expected to be such a “covered employee” with respect to the current
taxable year of the Company or with respect to the taxable year of
the Company in which any applicable Award will be paid.
	 
	 	l)	 	“DIRECTOR” shall mean a member of the Board.
	 
	 	m)	 	“DISABILITY” shall the same meaning as provided in the
long-term disability plan or policy maintained or, if applicable,
most recently maintained, by the Company or any Affiliate for the
Participant. If no long-term disability plan or policy was ever
maintained on behalf of the Participant, Disability shall mean that
condition described in Code Section 22(e)(3), as amended from time to
time. In the event of a dispute, the determination of Disability
shall be made by the Board and shall be supported by advice of a
physician competent in the area to which such Disability relates.
	 
	 	n)	 	“EXCHANGE ACT” shall mean the Securities Exchange Act of 1934,
as amended from time to time.
	 
	 	o)	 	“FAIR MARKET VALUE” with respect to the Shares, shall mean, for
purposes of a grant of an Award as of any date, (i) the closing sales
price of the Shares on the Nasdaq Stock Market’s National Market
System, or any other such exchange on which the Shares are traded, on
such date, or in the absence of reported sales on such date, the
closing sales price on the immediately preceding date on which sales
were reported or (ii) in the event there is no public market for the
Shares on such date, the fair market value as determined, in good
faith, by the Committee in its sole discretion, and for purposes of a
sale of a Share as of any date, the actual sales price on that date.

	 	 	 	 	 
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	 	p)	 	“INCENTIVE STOCK OPTION” shall mean an option to purchase
Shares from the Company that is granted under Section 6 of the Plan
and that is intended to meet the requirements of Section 422 of the
Code or any successor provision thereto.
	 
	 	q)	 	“NON-QUALIFIED STOCK OPTION” shall mean an option to purchase
Shares from the Company that is granted under Section 6 of the Plan
and is not intended to be an Incentive Stock Option.
	 
	 	r)	 	“NON-EMPLOYEE DIRECTOR” shall mean a member of the Board who is
not an Associate of the Company or any Subsidiary or Affiliate.
	 
	 	s)	 	“OPTION” shall mean an Incentive Stock Option or a
Non-Qualified Stock Option.
	 
	 	t)	 	“OPTION PRICE” shall mean the purchase price payable to
purchase one Share upon the exercise of an Option.
	 
	 	u)	 	“OTHER STOCK-BASED AWARD” shall mean any Award granted under
Section 9 of the Plan.
	 
	 	v)	 	“OUTSIDE DIRECTOR” means, with respect to the grant of an
Award, a member of the Board then serving on the Committee.
	 
	 	w)	 	“PARTICIPANT” shall mean any Associate or other person who
receives an Award under the Plan.
	 
	 	x)	 	“PERFORMANCE AWARD” shall mean any Award granted under Section
8 of the Plan.
	 
	 	y)	 	“PERFORMANCE SHARE” shall mean any Share granted under Section
8 of the Plan.
	 
	 	z)	 	“PERFORMANCE SHARE AWARD” shall mean any Award granted under
Section 8 of the Plan.
	 
	 	aa)	 	“PERFORMANCE UNIT” shall mean a right to receive a designated
dollar value which is contingent on the achievement of certain
performance goals during a specified performance period each as set
forth in an Award Agreement.
	 
	 	bb)	 	“PERFORMANCE UNIT AWARD” shall mean any Award granted under
Section 8 of the Plan.
	 
	 	cc)	 	“PERSON” shall mean any individual, corporation, partnership,
limited liability company, associate, joint-stock company, trust,
unincorporated organization, government or political subdivision
thereof or other entity.
	 
	 	dd)	 	“RESTRICTED SHARE” shall mean any Share granted under Section 7 of the Plan.
	 
	 	ee)	 	“RESTRICTED SHARE UNIT” shall mean any unit granted under Section 7 of the Plan.
	 
	 	ff)	 	“RETIREMENT” shall mean, unless otherwise defined in the
applicable Award Agreement, retirement of a Participant from the
employ or service of the Company or any of its Subsidiaries or
Affiliates in accordance with the terms of the applicable Company
retirement plan or, if a Participant is not covered by any such plan,
retirement on or after such Participant’s 65th birthday.
	 
	 	gg)	 	“SEC” shall mean the Securities and Exchange Commission or any
successor thereto.
	 
	 	hh)	 	“SECTION 16” shall mean Section 16 of the Exchange Act and the
rules promulgated thereunder and any successor provision thereto as
in effect from time to time.
	 
	 	ii)	 	“SECTION 162(M)” shall mean Section 162(m) of the Code and the
regulations promulgated thereunder and any successor or provision
thereto as in effect from time to time.
	 
	 	jj)	 	“SHARES” shall mean shares of the common stock, $0.01 par
value, of the Company.

	 	 	 	 	 
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	 	Page 3

 

	 	kk)	 	“STOCK APPRECIATION RIGHT OR SAR” shall mean a stock
appreciation right granted under Section 6 of the Plan that entitles
the holder to receive, with respect to each Share encompassed by the
exercise of such SAR, the amount, in cash or Shares, determined by
the Committee and specified in an Award Agreement. In the absence of
such a determination, the holder shall be entitled to receive, with
respect to each Share encompassed by the exercise of such SAR, the
excess of the Fair Market Value on the date of exercise over the Fair
Market Value on the date of grant.
	 
	 	ll)	 	“SUBSIDIARY” shall mean any Person (other than the Company) of
which a majority of its voting power or its equity securities or
equity interest is owned directly or indirectly by the Company.
	 
	 	mm)	 	“SUBSTITUTE AWARDS” shall mean Awards granted solely in
assumption of, or in substitution for, outstanding awards previously
granted by a company acquired by the Company or with which the
Company combines.
	 
	 	nn)	 	“TANDEM SAR” shall mean an SAR that is granted under Section 6
of the Plan in relation to a particular Option and that can be
exercised only upon the surrender to the Company, unexercised, of
that portion of the Option to which the SAR relates.
	 
	 	oo)	 	“TERMINATION OF SERVICE” shall mean the termination of the
service relationship, whether employment or otherwise, between a
Participant and the Company and any Affiliates, regardless of the
fact that severance or similar payments are made to the Participant
for any reason, including, but not by way of limitation, a
termination by resignation, discharge, death, Disability or
Retirement. The Committee shall, in its absolute discretion,
determine the effect of all matters and questions relating to a
Termination of Service, including, but not by way of limitation, the
question of whether a leave of absence constitutes a Termination of
Service, or whether a Termination of Service is for Cause.

Section 3. ADMINISTRATION

     3.1 Authority of Committee. The Plan shall be administered by the
Committee, which shall be appointed by and serve at the pleasure of the Board.
Subject to the terms of the Plan and applicable law, and in addition to other
express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority in its discretion to: (i)
designate Participants; (ii) determine the type or types of Awards to be
granted to a Participant; (iii) determine the number of Shares to be covered
by, or with respect to which payments, rights or other matters are to be
calculated in connection with Awards; (iv) determine the timing, terms and
conditions of any Award; (v) accelerate the time at which all or any part of an
Award may be settled or exercised; (vi) determine whether, to what extent, and
under what circumstances Awards may be settled or exercised in cash, Shares,
other securities, other Awards or other property, or canceled, forfeited or
suspended and the method or methods by which Awards may be settled, exercised,
canceled, forfeited or suspended; (vii) determine whether, to what extent and
under what circumstances cash, Shares, other securities, other Awards, other
property and other amounts payable with respect to an Award shall be deferred
either automatically or at the election of the holder thereof or of the
Committee; (viii) interpret and administer the Plan and any instrument or
agreement relating to, or Award made under, the Plan; (ix) except to the extent
prohibited by Section 6.2, amend or modify the terms of any Award at or after
grant with the consent of the holder of the Award; (x) establish, amend,
suspend or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; and (xi) make any
other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan, subject to the
exclusive authority of the Board under Section 13 hereunder to amend or
terminate the Plan. Notwithstanding the provisions of Section 6.2 hereof and
except as permitted by the provisions of Section 4.2 and Section 13 hereof, the
Committee shall not have the power to (i) amend the terms of previously granted
Options to reduce the Option Price of such Options, or (ii) cancel such Options
and grant substitute Options with a lower Option Price than the cancelled
Options.

     3.2 Committee Discretion Binding. Unless otherwise expressly provided in
the Plan, all designations, determinations, interpretations and other decisions
under or with respect to the Plan or any Award shall be within the sole
discretion of the Committee, may be made at any time and shall be final,
conclusive, and binding upon all Persons, including the Company, any Subsidiary
or Affiliate, any Participant and any holder or beneficiary of any Award.

     3.3 Action by the Committee. The Committee shall select one of its
members as its Chairperson and shall hold its meetings at such times and places
and in such manner as it may determine. A majority of its members shall
constitute a quorum. All determinations of the Committee shall be made by not
less than a majority of its members. Any decision or

	 	 	 	 	 
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	 	Page 4

 

determination reduced to writing and signed by all of the members of the
Committee shall be fully effective as if it had been made by a majority vote at
a meeting duly called and held. The exercise of an Option or receipt of an
Award shall be effective only if an Award Agreement shall have been duly
executed and delivered on behalf of the Company following the grant of the
Option or other Award. The Committee may appoint a Secretary and may make such
rules and regulations for the conduct of its business as it shall deem
advisable.

     3.4 Delegation. Subject to the terms of the Plan and applicable law, the
Committee may delegate to one or more officers or managers of the Company or of
any Subsidiary or Affiliate, or to a committee of such officers or managers,
the authority, subject to such terms and limitations as the Committee shall
determine, to grant Awards to, or to cancel, modify or waive rights with
respect to, or to alter, discontinue, suspend or terminate Awards held by
Participants who are not officers or directors of the Company for purposes of
Section 16 or who are otherwise not subject to such section.

     3.5 No Liability. No member of the Board or Committee shall be liable for
any action taken or determination made in good faith with respect to the Plan
or any Award granted hereunder.

Section 4. SHARES AVAILABLE FOR AWARDS

     4.1 Shares Available. Subject to the provisions of Section 4.2 hereof,
the stock to be subject to Awards under the Plan shall be the Shares of the
Company and the maximum number of Shares with respect to which Awards may be
granted under the Plan shall be 269,680 (which includes 19,680 shares with
respect to awards which were authorized but not granted under the Pinnacle
Financial Partners, Inc. 2000 Stock Incentive Plan (The “2000 Plan”).
Notwithstanding the foregoing and subject to adjustment as provided in Section
4.2, the maximum number of Shares with respect to which Awards may be granted
under the Plan shall be increased by the number of Shares with respect to which
Options or other Awards were granted under the 2000 Plan, as of the
effective date of this Plan but which terminate, expire unexercised or are
settled for cash, forfeited or cancelled without the delivery of Shares under
the terms of the 2000 Plan after the effective date of this Plan.

     If, after the effective date of the Plan, any Shares covered by an Award
granted under this Plan, or to which such an Award relates, are forfeited, or
if such an Award is settled for cash or otherwise terminates, expires
unexercised or is canceled without the delivery of Shares, then the Shares
covered by such Award, or to which such Award relates, or the number of Shares
otherwise counted against the aggregate number of Shares with respect to which
Awards may be granted, to the extent of any such settlement, forfeiture,
termination, expiration or cancellation, shall again become Shares with respect
to which Awards may be granted. In the event that any Option or other Award
granted hereunder is exercised through the delivery of Shares or in the event
that withholding tax liabilities arising from such Award are satisfied by the
withholding of Shares by the Company, the number of Shares available for Awards
under the Plan shall be increased by the number of Shares so surrendered or
withheld. Notwithstanding the foregoing and subject to adjustment as provided
in Section 4.2 hereof, no Participant may receive Options or SARs under the
Plan in any calendar year that relate to more than 50,000 Shares.

     4.2 Adjustments. In the event that the Committee determines that any
dividend or other distribution (whether in the form of cash, Shares, other
securities or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Shares or other securities of the Company, issuance
of warrants or other rights to purchase Shares or other securities of the
Company, or other similar corporate transaction or event affects the Shares
such that an adjustment is determined by the Committee, in its sole discretion,
to be appropriate, then the Committee shall, in such manner as it may deem
equitable (and, with respect to Incentive Stock Options, in such manner as is
consistent with Section 422 of the Code and the regulations thereunder): (i)
adjust any or all of (1) the aggregate number of Shares or other securities of
the Company (or number and kind of other securities or property) with respect
to which Awards may be granted under the Plan; (2) the number of Shares or
other securities of the Company (or number and kind of other securities or
property) subject to outstanding Awards under the Plan; and (3) the grant or
exercise price with respect to any Award under the Plan, provided that the
number of shares subject to any Award shall always be a whole number; (ii) if
deemed appropriate, provide for an equivalent award in respect of securities of
the surviving entity of any merger, consolidation or other transaction or event
having a similar effect; or (iii) if deemed appropriate, make provision for a
cash payment to the holder of an outstanding Award.

     4.3 Substitute Awards. Any Shares issued by the Company as Substitute
Awards in connection with the assumption or substitution of outstanding grants
from any acquired corporation shall not reduce the Shares available for Awards
under the Plan.

	 	 	 	 	 
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     4.4 Sources of Shares Deliverable Under Awards. Any Shares
delivered pursuant to an Award may consist, in whole or in part, of
authorized and unissued Shares or of issued Shares which have been
reacquired by the Company.

Section 5. ELIGIBILITY

     Any Associate shall be eligible to be designated a Participant.

Section 6. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

     6.1 Grant. Subject to the provisions of the Plan, the Committee shall
have sole and complete authority to determine the Participants to whom Options
and SARs shall be granted, the number of Shares, if any, subject to each Award,
the exercise price or price at which an SAR shall be granted (the “Grant
Price”) and the conditions and limitations applicable to the exercise of each
Option and SAR. An Option may be granted with or without a Tandem SAR. An SAR
may be granted with or without a related Option. The Committee shall have the
authority to grant Incentive Stock Options, or to grant Non-Qualified Stock
Options, or to grant both types of Options. In the case of Incentive Stock
Options or Tandem SARs related to such Options, the terms and conditions of
such grants shall be subject to and comply with such rules as may be prescribed
by Section 422 of the Code, as from time to time amended, and any regulations
implementing such statute. A person who has been granted an Option or SAR
under this Plan may be granted additional Options or SARs under the Plan if the
Committee shall so determine; provided, however, that to the extent the
aggregate Fair Market Value (determined at the time the Incentive Stock Option
or Tandem SAR related thereto is granted) of the Shares with respect to which
all Incentive Stock Options or Tandem SARs related to such Option are
exercisable for the first time by an Employee during any calendar year (under
all plans described in subsection (d) of Section 422 of the Code of the
Employee’s employer corporation and its parent and Subsidiaries) exceeds
$100,000, such Options shall be treated as Non-Qualified Stock Options.

     6.2 Price. The Committee in its sole discretion shall establish the
Option Price at the time each Option is granted which price shall be set forth
in an Award Agreement. Except in the case of Substitute Awards, the Option
Price of an Option may not be less than 100% of the Fair Market Value of the
Shares with respect to which the Option is granted on the date of grant of such
Option. The Committee in its sole discretion shall establish the Grant Price
at the time each SAR is granted, which price shall be set forth in an Award
Agreement and may, in the Committee’s sole discretion, be higher or lower than
the Fair Market Value of a Share on the date of grant.

     6.3 Term. Subject to the Committee’s authority under Section 3.1 and the
provisions of Section 6.5, each Option and SAR and all rights and obligations
thereunder shall expire on the date determined by the Committee and specified
in the Award Agreement. The Committee shall be under no duty to provide terms
of like duration for Options or SARs granted under the Plan. Notwithstanding
the foregoing, no Option or Tandem SAR that relates to such Option shall be
exercisable after the expiration of ten (10) years from the date such Option or
SAR was granted.

     6.4 Exercise.

     a) Each Option and SAR shall be exercisable at such times and subject to
such terms and conditions as the Committee may, in its sole discretion, specify
in the applicable Award Agreement or thereafter. The Committee shall have full
and complete authority to determine, subject to Section 6.5 herein, whether an
Option or SAR will be exercisable in full at any time or from time to time
during the term of the Option or SAR, or to provide for the exercise thereof in
such installments, upon the occurrence of such events and at such times during
the term of the Option or SAR as the Committee may determine.

     b) The Committee may impose such conditions with respect to the exercise
of Options or SARs, including without limitation, any relating to the
application of federal, state or foreign securities laws or the Code, as it may
deem necessary or advisable. The exercise of any Option granted hereunder
shall be effective only at such time as the sale of Shares pursuant to such
exercise will not violate any state or federal securities or other laws.

     c) An Option, or SAR exercisable for Shares, may be exercised in whole or
in part at any time, with respect to whole Shares only, within the period
permitted thereunder for the exercise thereof, and shall be exercised by
written notice of intent to exercise the Option or SAR, delivered to the
Company at its principal office, and payment in full to the Company at the
direction of the Committee of the amount of the Option Price, in the case of an
Option, for the number of Shares with respect to which the Option is then being
exercised. A Tandem SAR that is related to an Incentive Stock Option may be
exercised only to the extent that the related Option is exercisable and only
when the Fair Market Value exceeds the Option Price of the related

	 	 	 	 	 
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Option. The exercise of either an Option or Tandem SAR shall result in
the termination of the other to the extent of the number of Shares with respect
to which either the Option or Tandem SAR is exercised.

     d) Payment of the Option Price shall be made in cash or cash equivalents,
or, at the discretion of the Committee, (i) in whole Shares valued at the Fair
Market Value of such Shares on the date of exercise (or next succeeding trading
date, if the date of exercise is not a trading date), together with any
applicable withholding taxes, or (ii) by a combination of such cash (or cash
equivalents) and such Shares; provided, however, that the optionee shall not be
entitled to tender Shares pursuant to successive, substantially simultaneous
exercises of an Option or any other stock option of the Company. Subject to
applicable securities laws, an Option may also be exercised by delivering a
notice of exercise of the Option and simultaneously selling the Shares thereby
acquired, pursuant to a brokerage or similar agreement approved in advance by
proper officers of the Company, using the proceeds of such sale as payment of
the Option Price, together with any applicable withholding taxes. Until the
optionee has been issued the Shares subject to such exercise, he or she shall
possess no rights as a shareholder with respect to such Shares.

     e) An SAR may be exercised in whole or in part at any time after such SAR
has become exercisable in accordance with the terms of the applicable Award
Agreement; provided, however, that no partial exercise of an SAR exercisable
for cash shall result in the cash payment to the Participant of less than $250.
The partial exercise of an SAR shall not cause the expiration, termination or
cancellation of the remaining portion thereof. Upon the partial exercise of an
SAR, the Award Agreement evidencing such SAR, marked with such notations as the
Committee may deem appropriate to evidence such partial exercise, shall be
returned to the Participant exercising such SAR, together with the payment
described in Section 6.4(c) or 6.4(f) hereof, as the case may be.

     f) The exercise of an SAR exercisable for cash shall entitle a Participant
to a cash payment, for each such SAR exercised, equal to an amount determined
by the Committee and as set forth in an Award Agreement. Unless otherwise
determined by the Committee and set forth in an Award Agreement, the exercise
of an SAR exercisable for cash shall entitle a Participant to a cash payment,
for each such SAR exercised, equal to an amount equal to the excess of (i) the
Fair Market Value of a Share on the exercise date over (ii) the Grant Price of
the SAR as reflected in the applicable Award Agreement. All payments under
this Section 6.4(f) shall be made as soon as practicable, but in no event later
than ten (10) business days, after the effective date of the exercise of the
SAR.

     g) At the Committee’s discretion, and as set forth in an Award Agreement,
the amount payable as a result of the exercise of an SAR may be settled in
cash, Shares or a combination of cash and Shares. A fractional Share shall not
be deliverable upon the exercise of a SAR but a cash payment will be made in
lieu thereof.

     6.5 Ten Percent Stock Rule. Notwithstanding any other provisions in the
Plan, if at the time an Option or SAR is otherwise to be granted pursuant to
the Plan the optionee or rights holder owns directly or indirectly (within the
meaning of Section 424(d) of the Code) Shares of the Company possessing more
than ten percent (10%) of the total combined voting power of all classes of
Stock of the Company or its parent or Subsidiary or Affiliate corporations
(within the meaning of Section 422(b)(6) of the Code), then any Incentive Stock
Option or Tandem SAR to be granted to such optionee or rights holder pursuant
to the Plan shall satisfy the requirement of Section 422(c)(5) of the Code, and
the Option Price shall be not less than 110% of the Fair Market Value of the
Shares of the Company, and such Option by its terms shall not be exercisable
after the expiration of five (5) years from the date such Option is granted.

Section 7. RESTRICTED SHARES AND RESTRICTED SHARE UNITS

     7.1 Grant.

     a) Subject to the provisions of the Plan, the Committee shall have sole
and complete authority to determine the Participants to whom Restricted Shares
and Restricted Share Units shall be granted, the number of Restricted Shares
and/or the number of Restricted Share Units to be granted to each Participant,
the duration of the period during which, and the conditions under which, the
Restricted Shares and Restricted Share Units may be forfeited to the Company,
and the other terms and conditions of such Awards. The Restricted Share and
Restricted Share Unit Awards shall be evidenced by Award Agreements in such
form as the Committee shall from time to time approve, which agreements shall
comply with and be subject to the terms and conditions provided hereunder and
any additional terms and conditions established by the Committee that are
consistent with the terms of the Plan.

     b) Each Restricted Share and Restricted Share Unit Award made under the
Plan shall be for such number of Shares as shall be determined by the Committee
and set forth in the Award Agreement containing the terms of such Restricted
Share or

	 	 	 	 	 
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Restricted Share Unit Award. Such agreement shall set forth a period of
time during which the grantee must remain in the continuous employment of the
Company in order for the forfeiture and transfer restrictions to lapse. If the
Committee so determines, the restrictions may lapse during such restricted
period in installments with respect to specified portions of the Shares covered
by the Restricted Share or Restricted Share Unit Award. The Award Agreement
may also, in the discretion of the Committee, set forth performance or other
conditions, including any of those identified in Section 10, that will subject
the Shares to forfeiture and transfer restrictions. The Committee may, at its
discretion, waive all or any part of the restrictions applicable to any or all
outstanding Restricted Share and Restricted Share Unit Awards.

     7.2 Delivery of Shares and Transfer Restrictions. At the time of a
Restricted Share Award, a certificate representing the number of Shares awarded
thereunder shall be registered in the name of the grantee. Such certificate
shall be held by the Company or any custodian appointed by the Company for the
account of the grantee subject to the terms and conditions of the Plan, and
shall bear such a legend setting forth the restrictions imposed thereon as the
Committee, in its discretion, may determine. The grantee shall have all rights
of a shareholder with respect to the Restricted Shares, including the right to
receive dividends and the right to vote such Shares, subject to the following
restrictions: (i) the grantee shall not be entitled to delivery of the stock
certificate until the expiration of the restricted period and the fulfillment
of any other restrictive conditions set forth in the Award Agreement with
respect to such Shares; (ii) none of the Shares may be sold, assigned,
transferred, pledged, hypothecated or otherwise encumbered or disposed of
during such restricted period or until after the fulfillment of any such other
restrictive conditions; and (iii) except as otherwise determined by the
Committee at or after grant, all of the Shares shall be forfeited and all
rights of the grantee to such Shares shall terminate, without further
obligation on the part of the Company, upon a Termination of Service and unless
any other restrictive conditions relating to the Restricted Share Award are
met. Any Shares, any other securities of the Company and any other property
(except for cash dividends) distributed with respect to the Shares subject to
Restricted Share Awards shall be subject to the same restrictions, terms and
conditions as such restricted Shares.

     7.3 Termination of Restrictions. At the end of the restricted period and
provided that any other restrictive conditions of the Restricted Share Award
are met, or at such earlier time as otherwise determined by the Committee, all
restrictions set forth in the Award Agreement relating to the Restricted Share
Award or in the Plan shall lapse as to the restricted Shares subject thereto,
and a stock certificate for the appropriate number of Shares, free of the
restrictions and restricted stock legend, shall be delivered to the Participant
or the Participant’s beneficiary or estate, as the case may be.

     7.4 Payment of Restricted Share Units. Each Restricted Share Unit shall
have a value equal to the Fair Market Value of a Share. Restricted Share Units
shall be paid in cash, Shares, other securities or other property, as
determined in the sole discretion of the Committee, upon the lapse of the
restrictions applicable thereto, or otherwise in accordance with the applicable
Award Agreement. A Participant shall be credited with dividend equivalents on
any vested Restricted Share Units credited to the Participant’s account at the
time of any payment of dividends to shareholders on Shares. The amount of any
such dividend equivalents shall equal the amount that would have been payable
to the Participant as a shareholder in respect of a number of Shares equal to
the number of vested Restricted Share Units then credited to the Participant.
Any such dividend equivalents shall be credited to the Participant’s account as
of the date on which such dividend would have been payable and shall be
converted into additional Restricted Share Units (which shall be immediately
vested) based upon the Fair Market Value of a Share on the date of such
crediting. No dividend equivalents shall be paid in respect of Restricted
Share Units that are not yet vested. Except as otherwise determined by the
Committee at or after grant, Restricted Share Units may not be sold, assigned,
transferred, pledged, hypothecated or otherwise encumbered or disposed of, and
all Restricted Share Units and all rights of the grantee to such Restricted
Share Units shall terminate, without further obligation on the part of the
Company, upon a Termination of Service and unless any other restrictive
conditions relating to the Restricted Share Unit Award are met.

Section 8. PERFORMANCE AWARDS

     8.1 Grant. The Committee shall have sole and complete authority to
determine the Participants who shall receive a Performance Award, which shall
consist of a right that is (i) denominated in cash or Shares, (ii) valued, as
determined by the Committee, in accordance with the achievement of such
performance goals during such performance periods as the Committee shall
establish, and (iii) payable at such time and in such form as the Committee
shall determine. Performance Awards shall include, but are not limited to,
Performance Shares and Performance Units. All Performance Awards shall be
subject to the terms and provisions of Section 10 hereof.

     8.2 Terms and Conditions. Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine the performance goals
to be achieved during any performance period, the length of any performance
period, the amount of any Performance Award and the amount and kind of any
payment or transfer to be made pursuant to any Performance Award, and may amend
specific provisions of the Performance Award; provided, however, that such
amendment

	 	 	 	 	 
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may not adversely affect existing Performance Awards made within a
performance period commencing prior to implementation of the amendment.

     8.3 Payment of Performance Awards. Performance Awards may be paid in a
lump sum or in installments following the close of the performance period or,
in accordance with the procedures established by the Committee, on a deferred
basis. A Participant’s rights to any Performance Award may not be sold,
assigned, transferred, pledged, hypothecated or otherwise encumbered or
disposed of in any manner, except by will or the laws of descent and
distribution, and/or except as the Committee may determine at or after grant.

     8.4 Performance Shares.

     a) Associates who are in strategic leadership positions shall be eligible
to receive Performance Share Awards. Subject to the provisions of the Plan,
the Committee shall have sole and complete authority to determine the
Participants to whom Performance Share Awards shall be granted, the number of
Performance Shares to be granted to each Participant, the performance targets
and goals to be satisfied, the duration of the period during which, and the
conditions under which, the Performance Shares may be forfeited to the Company,
and the other terms and conditions of such Awards. The Performance Share
Awards shall be evidenced by Award Agreements in such form as the Committee
shall from time to time approve, which agreements shall comply with and be
subject to the terms and conditions provided hereunder and any additional terms
and conditions established by the Committee that are consistent with the terms
of the Plan.

     b) Each Performance Share Award made under the Plan shall be for such
number of Shares as shall be determined by the Committee and set forth in the
Award Agreement containing the terms of such Performance Share Award.

     c) The Committee shall grant Performance Share Awards based solely upon
the attainment of performance targets related to one or more performance goals
selected by the Committee from among the goals identified in Section 10.

     8.5 Performance Units.

     a) Associates who are in leadership positions shall be eligible to receive
Performance Unit Awards. Subject to the provisions of the Plan, the Committee
shall have sole and complete authority to determine the Participants to whom
Performance Units shall be granted. Performance Units shall consist of a right
that is (i) denominated in cash, (ii) valued, as determined by the Committee,
in accordance with the achievement of such performance goals during such
performance periods as the Committee shall establish, and (iii) payable at such
time and in such form as the Committee shall determine. Subject to the terms
of the Plan and any applicable Award Agreement, the Committee shall determine
the performance goals to be achieved during any performance period, the length
of any performance period, the amount of any Performance Unit Award and the
amount and kind of any payment or transfer to be made pursuant to any
Performance Unit Award. The Performance Unit Awards shall be evidenced by
Award Agreements in such form as the Committee shall from time to time approve,
which agreements shall comply with and be subject to the terms and conditions
provided hereunder and any additional terms and conditions established by the
Committee that are consistent with the terms of the Plan. The applicable Award
Agreement shall set forth (i) the dollar value of Performance Units granted to
the Participant; (ii) the performance period and performance goals with respect
to each such Award; and (iii) any other terms and conditions as the Committee
determines in its sole and absolute discretion.

     b) The Committee shall grant Performance Unit Awards based solely upon the
attainment of performance targets related to one or more performance goals
selected by the Committee from among the goals identified in Section 10.

Section 9. OTHER STOCK-BASED AWARDS

     The Committee shall have the authority to determine the Participants who
shall receive an Other Stock-Based Award, which shall consist of any right that
is (i) not an Award described in Sections 6, 7 and 8 above and (ii) an Award of
Shares or an Award denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, Shares (including, without
limitation, securities convertible into Shares), as deemed by the Committee to
be consistent with the purposes of the Plan. Subject to the terms of the Plan
and any applicable Award Agreement, the Committee shall determine the terms and
conditions of any such Other Stock-Based Award.

	 	 	 	 	 
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Section 10. PROVISIONS APPLICABLE TO COVERED OFFICERS AND PERFORMANCE AWARDS

     10.1 Notwithstanding anything in the Plan to the contrary, Performance
Awards shall be subject to the terms and provisions of this Section 10.

     10.2 The Committee may grant Performance Awards to Covered Officers based
solely upon the attainment of performance targets related to one or more
performance goals selected by the Committee from among the goals specified
below. For the purposes of this Section 10, performance goals shall be limited
to one or more of the following Company, Subsidiary, Affiliate, operating unit
or division financial performance measures:

	 	a)	 	earnings or book value per Share;
	 
	 	b)	 	net income;
	 
	 	c)	 	return on equity, assets, capital, capital employed or
investment;
	 
	 	d)	 	earnings before interest, taxes, depreciation and/or
amortization;
	 
	 	e)	 	operating income or profit;
	 
	 	f)	 	operating efficiencies;
	 
	 	g)	 	the ratio of criticized/classified loans to capital;
	 
	 	h)	 	allowance for loan losses;
	 
	 	i)	 	the ratio of non-performing loans to total loans;
	 
	 	j)	 	the ratio of past due loans greater than 90 days and
non-accruals to total loans;
	 
	 	k)	 	the ratio of net charge-offs to average loans;
	 
	 	l)	 	after tax operating income;
	 
	 	m)	 	cash flow(s);
	 
	 	n)	 	total revenues or revenues per employee;
	 
	 	o)	 	stock price or total shareholder return;
	 
	 	p)	 	growth in deposits;
	 
	 	q)	 	dividends; or
	 
	 	r)	 	strategic business objectives, consisting of one or more
objectives based on meeting specified cost targets, business
expansion goals and goals relating to acquisitions or divestitures;
	 
	 	 	 	or any combination thereof. Each goal may be expressed on an absolute
and/or relative basis, may be based on or otherwise employ comparisons
based on internal targets, the past performance of the Company or any
Subsidiary, Affiliates operating unit or division of the Company and/or
the past or current performance of other companies, and in the case of
earnings-based measures, may use or employ comparisons relating to
capital, shareholders’ equity and/or Shares outstanding, or to assets
or net assets. The Committee may, at its discretion, waive all or any
part of the restrictions applicable to any or all outstanding
Performance Awards, including Performance Share Awards and Performance
Unit Awards.

	 	 	 	 	 
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     10.3 With respect to any Covered Officer, the maximum number of Shares in
respect of which all Performance Awards may be granted under Section 8 of the
Plan in each year of the performance period is 50,000 Shares and the maximum
amount of any Award settled in cash shall not exceed $1,000,000 in each year of
the performance period.

     10.4 To the extent necessary to comply with Section 162(m), with respect
to grants of Performance Awards, including Performance Share Awards and
Performance Unit Awards, no later than 90 days following the commencement of
each performance period (or such other time as may be required or permitted by
Section 162(m) of the Code), the Committee shall, in writing, (1) select the
performance goal or goals applicable to the performance period, (2) establish
the various targets and bonus amounts which may be earned for such performance
period, and (3) specify the relationship between performance goals and targets
and the amounts to be earned by each Covered Officer for such performance
period. Following the completion of each performance period, the Committee
shall certify in writing whether the applicable performance targets have been
achieved and the amounts, if any, payable to Covered Officers for such
performance period. In determining the amount earned by a Covered Officer for
a given performance period, subject to any applicable Award Agreement, the
Committee shall have the right to reduce (but not increase) the amount payable
at a given level of performance to take into account additional factors that
the Committee may deem relevant to the assessment of individual or corporate
performance for the performance period.

Section 11. TERMINATION OF EMPLOYMENT

     The Committee shall have the full power and authority to determine the
terms and conditions that shall apply to any Award upon a Termination of
Service, and may provide such terms and conditions in the Award Agreement or in
such rules and regulations as it may prescribe.

Section 12. CHANGE IN CONTROL

     Upon a Change in Control (but only if and to the extent so determined by
the Committee at or after grant (subject to any right of approval expressly
reserved by the Committee at the time of such determination)), all outstanding
Awards shall vest, become immediately exercisable or payable or have all
restrictions lifted.

Section 13. AMENDMENT AND TERMINATION

     13.1 Amendments to the Plan. The Board may amend, alter, suspend,
discontinue or terminate the Plan or any portion thereof at any time; provided
that no such amendment, alteration, suspension, discontinuation or termination
shall be made without shareholder approval if such approval is necessary to
comply with any tax or regulatory requirement for which or with which the Board
deems it necessary or desirable to comply.

     13.2 Amendments to Awards. Subject to the restrictions of Sections 3.1
and 6.2, the Committee may waive any conditions or rights under, amend any
terms of or alter, suspend, discontinue, cancel or terminate, any Award
theretofore granted, prospectively or retroactively; provided that any such
waiver, amendment, alteration, suspension, discontinuance, cancellation or
termination that would adversely affect the rights of any Participant or any
holder or beneficiary of any Award theretofore granted shall not to that extent
be effective without the consent of the affected Participant, holder or
beneficiary.

     13.3 Adjustments of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee is hereby authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in
recognition of unusual or nonrecurring events (including, without limitation,
the events described in Section 4.2 hereof) affecting the Company, any
Subsidiary or Affiliate, or the financial statements of the Company or any
Subsidiary or Affiliate, or of changes in applicable laws, regulations or
accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

Section 14. GENERAL PROVISIONS

     14.1 Limited Transferability of Awards. Except as otherwise provided in
the Plan, no Award shall be assigned, alienated, pledged, attached, sold or
otherwise transferred or encumbered by a Participant, except (i) by will or the
laws of descent and distribution, (ii) to a Permitted Transferee and/or (iii)
as may be provided by the Committee in its discretion, at or after grant, in
the Award Agreement; provided, however, that an Incentive Stock Option shall
not be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by a Participant except by will or the laws of descent and
distribution. No transfer of an Award by will or by laws of descent and
distribution shall be effective to bind the Company unless the Company shall
have been furnished with written notice thereof and an authenticated copy of
the will and/or such

	 	 	 	 	 
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other evidence as the Committee may deem necessary or appropriate to
establish the validity of the transfer. A Permitted Transferee may not
transfer an Award other than by will or the laws of descent and distribution.
For purposes of this Plan, “Permitted Transferee” means the Participant’s
Immediate Family, a Permitted Trust or a partnership of which the only partners
are members of the Participant’s Immediate Family. For purposes of this Plan,
“Immediate Family” means the Participant’s children and grandchildren,
including adopted children and grandchildren, stepchildren, parents,
stepparents, grandparents, spouse, siblings (including half brothers and
sisters), father-in-law, mother-in-law, daughters-in-law and sons-in-law. For
purposes of this Plan, a “Permitted Trust” means a trust solely for the benefit
of the Participant or Participant’s Immediate Family.

     14.2 Dividend Equivalents. In the sole and complete discretion of the
Committee, an Award may provide the Participant with dividends or dividend
equivalents, payable in cash, Shares, other securities or other property on a
current or deferred basis. All dividend or dividend equivalents which are not
paid currently may, at the Committee’s discretion, accrue interest, be
reinvested into additional Shares, or in the case of dividends or dividend
equivalents credited in connection with Performance Awards, be credited as
additional Performance Awards and paid to the Participant if and when, and to
the extent that, payment is made pursuant to such Award. The total number of
Shares available for grant under Section 4 shall not be reduced to reflect any
dividends or dividend equivalents that are reinvested into additional Shares or
credited as Performance Awards.

     14.3 No Rights to Awards. No Person shall have any claim to be granted
any Award, and there is no obligation for uniformity of treatment of
Participants or holders or beneficiaries of Awards. The terms and conditions
of Awards need not be the same with respect to each Participant.

     14.4 Share Certificates. All certificates for Shares or other securities
of the Company or any Subsidiary or Affiliate delivered under the Plan pursuant
to any Award or the exercise thereof shall be subject to such stop transfer
orders and other restrictions as the Committee may deem advisable under the
Plan or the rules, regulations and other requirements of the SEC or any state
securities commission or regulatory authority, any stock exchange or other
market upon which such Shares or other securities are then listed, and any
applicable Federal or state laws, and the Committee may cause a legend or
legends to be put on any such certificates to make appropriate reference to
such restrictions.

     14.5 Withholding. A Participant may be required to pay to the Company or
any Subsidiary or Affiliate and the Company or any Subsidiary or Affiliate
shall have the right and is hereby authorized to withhold from any Award, from
any payment due or transfer made under any Award or under the Plan, or from any
compensation or other amount owing to a Participant the amount (in cash,
Shares, other securities, other Awards or other property) of any applicable
withholding or other taxes in respect of an Award, its exercise, or any payment
or transfer under an Award or under the Plan and to take such other action as
may be necessary in the opinion of the Company to satisfy all obligations for
the payment of such taxes. The Committee may provide for additional cash
payments to holders of Options to defray or offset any tax arising from the
grant, vesting, exercise or payment of any Award.

     14.6 Award Agreements. Each Award hereunder shall be evidenced by an
Award Agreement that shall be delivered to the Participant and may specify the
terms and conditions of the Award and any rules applicable thereto. In the
event of a conflict between the terms of the Plan and any Award Agreement, the
terms of the Plan shall prevail.

     14.7 No Limit on Other Compensation Arrangements. Nothing contained in
the Plan shall prevent the Company or any Subsidiary or Affiliate from adopting
or continuing in effect other compensation arrangements, which may, but need
not, provide for the grant of Options, SARs, Restricted Shares, Restricted
Share Units, Performance Shares, Performance Units, Other Stock-Based Awards or
other types of Awards provided for hereunder.

     14.8 No Right to Employment. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Subsidiary or Affiliate. Further, the Company or a Subsidiary
or Affiliate may at any time dismiss a Participant from employment, free from
any liability or any claim under the Plan, unless otherwise expressly provided
in an Award Agreement.

     14.9 No Rights as Shareholder. Subject to the provisions of the Plan and
the applicable Award Agreement, no Participant or holder or beneficiary of any
Award shall have any rights as a shareholder with respect to any Shares to be
distributed under the Plan until such person has become a holder of such
Shares. Notwithstanding the foregoing, in connection with each grant of
Restricted Shares hereunder, the applicable Award Agreement shall specify if
and to what extent the Participant shall not be entitled to the rights of a
shareholder in respect of such Restricted Shares.

	 	 	 	 	 
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     14.10 Governing Law. The validity, construction and effect of the Plan
and any rules and regulations relating to the Plan and any Award Agreement
shall be determined in accordance with the laws of the State of Tennessee
without giving effect to conflicts of laws principles.

     14.11 Severability. If any provision of the Plan or any Award is, or
becomes, or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction, Person or Award and the remainder of the
Plan and any such Award shall remain in full force and effect.

     14.12 Other Laws. The Committee may refuse to issue or transfer any
Shares or other consideration under an Award if, acting in its sole discretion,
it determines that the issuance or transfer of such Shares or such other
consideration might violate any applicable law or regulation (including
applicable non-U.S. laws or regulations) or entitle the Company to recover the
same under Exchange Act Section 16(b), and any payment tendered to the Company
by a Participant, other holder or beneficiary in connection with the exercise
of such Award shall be promptly refunded to the relevant Participant, holder or
beneficiary.

     14.13 No Trust or Fund Created. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Subsidiary or Affiliate and a
Participant or any other Person. To the extent that any Person acquires a
right to receive payments from the Company or any Subsidiary or Affiliate
pursuant to an Award, such right shall be no greater than the right of any
unsecured general creditor of the Company or any Subsidiary or Affiliate.

     14.14 No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities or other property shall be paid or transferred
in lieu of any fractional Shares or whether such fractional Shares or any
rights thereto shall be canceled, terminated or otherwise eliminated.

     14.15 Headings. Headings are given to the sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not
be deemed in any way material or relevant to the construction or interpretation
of the Plan or any provision thereof.

Section 15. TERM OF THE PLAN

     15.11 Effective Date. The Plan shall be effective as of April 20, 2004
provided it has been approved by the Board and by the Company’s shareholders.

     15.12 Expiration Date. No new Awards shall be granted under the Plan
after the tenth (10th) anniversary of the Effective Date. Unless otherwise
expressly provided in the Plan or in an applicable Award Agreement, any Award
granted hereunder may, and the authority of the Board or the Committee to
amend, alter, adjust, suspend, discontinue or terminate any such Award or to
waive any conditions or rights under any such Award shall, continue after the
tenth (10th) anniversary of the Effective Date.

	 	 	 	 	 
	 	 	PINNACLE FINANCIAL PARTNERS, INC.
	 	 	 	 	 
	 	 	By:
	 	/s/ M. Terry Turner
	 	 	 	 	

	 	 	
Name:
	 	M. Terry Turner
	 	 	 	 	

	 	 	
Title:
	 	April 20, 2004
	 	 	 	 	

	 	 	 	 	 
	Pinnacle Financial Partners, Inc.	 	
 
	 	Page 13

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