Document:

EXHIBIT
10.1

 

 

GREENE
COUNTY BANCSHARES, INC.

 

 

DEFERRED
COMPENSATION PLAN FOR

NONEMPLOYEE
DIRECTORS

 

 

 

Effective
July 1, 2004

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  ELIGIBILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Requirements for
  Participation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Deferral Election
  Procedure

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  PARTICIPANTS’ DEFERRALS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Deferral of
  Qualified Bonus

  	
   

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Changing Deferral
  Elections

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  DEFERRED COMPENSATION ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Deferred Compensation
  Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Election of Investment
  Funds

  	
   

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Crediting of
  Deferred Compensation

  	
   

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Crediting of Earnings

  	
   

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  Applicability of
  Account Values

  	
   

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  Vesting of
  Deferred Compensation Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  4.7

  	
  Assignments, Etc.
  Prohibited

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  SPECIAL DEFERRALS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  DISTRIBUTIONS OF DEFERRED COMPENSATION
  ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Distributions
  upon a Participant’s Separation from Service

  	
   

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Distributions
  upon a Participant’s Death

  	
   

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Election of
  Manner and Time of Distribution

  	
   

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Applicable Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  WITHDRAWALS FROM DEFERRED COMPENSATION
  ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Hardship
  Distributions from Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Accelerated Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Payment of
  Withdrawals and Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Effect of Withdrawals

  	
   

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Applicable Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  ADMINISTRATIVE PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Administrator’s
  Duties and Powers

  	
   

  

 

 

	
  8.2

  	
  Limitations Upon Powers

  	
   

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Final Effect of
  Administrator Action

  	
   

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Delegation by Administrator

  	
   

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  Indemnification
  by the Company; Liability Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  8.6

  	
  Recordkeeping

  	
   

  
	
   

  	
   

  	
   

  
	
  8.7

  	
  Statement to Participants

  	
   

  
	
   

  	
   

  	
   

  
	
  8.8

  	
  Inspection of Records

  	
   

  
	
   

  	
   

  	
   

  
	
  8.9

  	
  Identification of
  Fiduciaries

  	
   

  
	
   

  	
   

  	
   

  
	
  8.10

  	
  Procedure
  for Allocation of Fiduciary Responsibilities

  	
   

  
	
   

  	
   

  	
   

  
	
  8.11

  	
  Claims Procedure

  	
   

  
	
   

  	
   

  	
   

  
	
  8.12

  	
  Conflicting Claims

  	
   

  
	
   

  	
   

  	
   

  
	
  8.13

  	
  Service of Process

  	
   

  
	
   

  	
   

  	
   

  
	
  8.14

  	
  Fees

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Termination of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Limitation on
  Rights of Participants

  	
   

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  Consolidation
  or Merger; Adoption of Plan by Other Companies

  	
   

  
	
   

  	
   

  	
   

  
	
  9.4

  	
  Errors and Misstatements

  	
   

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  Payment on Behalf of
  Minor, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  Amendment of Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  9.7

  	
  Funding

  	
   

  
	
   

  	
   

  	
   

  
	
  9.8

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  9.9

  	
  Pronouns and Plurality

  	
   

  
	
   

  	
   

  	
   

  
	
  9.10

  	
  Titles

  	
   

  
	
   

  	
   

  	
   

  
	
  9.11

  	
  References

  	
   

  

 

 

GREENE
COUNTY BANCSHARES, INC.

DEFERRED COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS

 

Effective
July 1, 2004

 

Greene County Bancshares, Inc., a Tennessee corporation,
by resolution of its Board of Directors dated September 20, 2004, has adopted
this Greene County Bancshares, Inc. Deferred Compensation Plan for Nonemployee
Directors (the “Plan”), effective as of July 1, 2004, for the benefit of the
nonemployee members of the Board, as defined below.

 

The Plan is a nonqualified deferred compensation plan
which is unfunded and is maintained primarily for the purpose of providing
deferred compensation for nonemployee members of its Board.

 

 

GREENE
COUNTY BANCSHARES, INC.

DEFERRED COMPENSATION PLAN FOR

NONEMPLOYEE DIRECTORS

 

ARTICLE I.

Definitions

 

Whenever the following terms are used in the
Plan with the first letter capitalized, they shall have the meaning specified
below unless the context clearly indicates to the contrary.

 

1.1                                 “Account” of a Participant shall mean the Participant’s individual
deferred compensation account established for his or her benefit under Article
IV hereof.

 

1.2                                 “Administrator” shall mean Greene County Bancshares, Inc., acting through the
Committee, except that if the Committee has appointed a Delegate under Section
8.4, the term “Administrator” shall mean the Delegate as to those duties,
powers and responsibilities specifically conferred upon the Delegate.

 

1.3                                 “Board” shall mean the Board of Directors
of Greene County Bancshares, Inc.  The
Board may delegate any power or duty otherwise allocated to the Administrator
to any other person or persons, including a subcommittee or sub-committees
appointed under Section 8.4. 
Notwithstanding any delegation of authority, the Board shall, with
respect to any matter arising under this Plan, have the authority to act in
lieu of the Administrator, the Committee, any Delegate, or any other person.

 

1.4                                 “Change in Control”  shall mean the occurrence of any of the following:

 

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

 

(b)                                 approval
by the stockholders of the Company of an agreement to merge or consolidate, or
otherwise reorganize, with or into one or more entities that are not
Affiliates, as a result of which less than 50% of the outstanding voting
securities of the surviving or resulting entity immediately after the
reorganization are, or will be, owned, directly or indirectly, by stockholders
of the Company immediately before such reorganization (assuming for purposes of
such determination that there is no change in the record ownership of the
Company’s securities from the record date for such approval until such
reorganization and that such record owners hold no securities of the other
parties to such reorganization), but including in such determination any
securities of the other parties to such reorganization held by Affiliates of
the Company);

 

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

 

(d)                                 any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act
but excluding any person described in and satisfying the conditions of Rule
13d-1(b)(1)

 

 

thereunder), other than a person that is a stockholder of the Company
on the effective date of the Plan, becomes the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing more than 20% of the combined voting power of the
Company’s then outstanding securities entitled to then vote generally in the
election of directors of the Company; or

 

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

 

1.5                                 “Code” shall mean the Internal Revenue Code of 1986, as amended from
time to time, together with regulations thereunder.

 

1.6                                 “Committee” shall mean the
administrative committee of the Plan, as the Board may appoint by resolution.

 

1.7                                 “Company” shall mean Greene County Bancshares, Inc. and all of its
affiliates, any entity which is a successor in interest to Greene County
Bancshares, Inc.

 

1.8                                 “Deferral Election Form” shall mean the form of election
provided by the Administrator to each Nonemployee Director pursuant to Section
3.1.

 

1.9                                 “Deferred Compensation” of a Participant shall mean the
amounts deferred by such Participant under Article III of the Plan.

 

1.10                           “Delegate” shall mean each Delegate appointed in accordance with Section
8.4.

 

1.11                           “Distribution Election Form” shall mean the form of election provided by the Administrator to
each Nonemployee Director pursuant to Section 6.3.

 

1.12                           “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

1.13                           “Hardship” of a Participant, shall mean an unforeseeable emergency which
constitutes a severe financial hardship resulting from any one or more of the
following:

 

(a)                                  sudden
and unexpected illness or accident of the Participant or of a dependent (as
defined in Code Section 152(a)) of the Participant;

 

(b)                                 loss
of the Participant’s property due to casualty; or

 

(c)                                  any
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the Participant’s control.

 

2

 

Notwithstanding the foregoing, a financial need shall
not constitute a Hardship unless it is for at least $5,000 (or the entire
vested principal amount of the Participant’s Accounts, if less).  Whether a Participant has incurred a Hardship
shall be determined by the Administrator in its discretion on the basis of all
relevant facts and circumstances and in accordance with nondiscriminatory and
objective standards, uniformly interpreted and consistently applied.

 

1.14                           “Investment Election Form” shall mean the form of election provided by the Administrator to
each Nonemployee Director pursuant to Section 4.2.

 

1.15                           “Investment Fund” shall mean any of the investment funds the Administrator so
designates as available investment vehicles under the Plan.

 

1.16                           “Nonemployee Director” shall mean any member of the Board who
is not an employee of the Company.

 

1.17                           “Participant” shall mean each Nonemployee Director who elects to participate
in the Plan as provided in Article II and who defers Qualified Director
Compensation under the Plan.  Each of
such persons shall continue to be a “Participant” until they have received all
benefits due under the Plan.

 

1.18                           ““Plan” shall mean the
Greene County Bancshares, Inc. Deferred Compensation Plan for Nonemployee
Directors.

 

1.19                           “Qualified Director Compensation” shall mean that portion of a
Participant’s retainer, consulting fees, committee fees, and meeting fees paid
after July 1, 2004 that (i) are in excess of any compensation a Participant
defers pursuant to a written agreement entered into with the  Company prior to July 1, 2004 and (ii) which
are payable in cash to the Nonemployee Director by the Company.

 

1.20                           “Separation from Service” shall mean a Participant’s
termination of service with the Company as a Nonemployee Director for any
reason, including resignation, death, or retirement.

 

1.21                           “Trust” shall mean any trust established
in connection with the Plan, including the trust established by the Greene
County Bancshares, Inc. Grantor Trust Agreement.

 

1.22                           “Trustee”  shall mean the trustee of any Trust, and shall refer to the
successor of any trustee who resigns or is removed in accordance with the terms
of the Trust.

 

ARTICLE II.

Eligibility

 

2.1                                 Requirements
for Participation.  Any
person who is a Nonemployee Director at any time during a Plan Year shall be
eligible to be a Participant in the Plan for the Plan Year.

 

2.2                                 Deferral
Election Procedure.  For
each Plan Year, the Administrator shall provide each Nonemployee Director with
(i) a Deferral Election Form on which such person may elect to defer his or her
Qualified Director Compensation pursuant to Article III, (ii) an Investment
Election Form, and (iii) a Distribution Election Form.  Each such person who elects to defer
Qualified

 

3

 

Director Compensation under Article III must complete and sign the
Deferral Election Form and the Investment Election Form, and return them to the
Administrator in accordance with Article III.

 

ARTICLE III.

Participants’ Deferrals

 

3.1                                 Deferral of Qualified Director
Compensation.  Each
Nonemployee Director may elect to defer into his or her Account up to 100% of
the Qualified Director Compensation which would otherwise be payable to him or
her for any Plan Year, subject to any conditions or limitations that the Administrator
may implement for a Plan Year through a written notice delivered to Nonemployee
Directors at least thirty (30) days before the Plan Year begins.

 

Any election pursuant to this Section 3.1 shall
be made by the Participant by completing and delivering to the Administrator
his or her Deferral Election Form for such Plan Year no later than December
15th of the next preceding Plan Year. 
Notwithstanding the foregoing, with respect to the Plan Year beginning in
2004, those Nonemployee Directors listed on Schedule 1 may elect to defer
Qualified Director Compensation under this Section 3.1 effective for the
remainder of 2004, provided the Administrator receives their Deferral Election
Forms within thirty (30) days of the designation of such Nonemployee Directors
on Schedule 1.  Such deferral elections shall only apply to
Qualified Director Compensation which would otherwise be payable after such
deferral election is made.  With respect
to a Nonemployee Director who joins the Board after commencement of a Plan
Year, the Administrator must receive his or her Deferral Election Form within
thirty (30) days after the date on which the Nonemployee Director joins the
Board.  Such deferral elections shall
apply only to Qualified Director Compensation which would otherwise be payable
after such deferral election is made.

 

3.2                                 Changing
Deferral Elections.  Any
Participant who has elected to defer Qualified Director Compensation may change
such election once each Plan Year with respect to all Qualified Director Compensation
which has not yet been earned or deferred by the Participant, and shall do so
by completing and delivering to the Administrator a superseding Deferral
Election Form.  After the Participant has
changed his or her election once during a Plan Year, that election shall be
irrevocable and shall not be amendable by the Participant, except:

 

(a)                                  that
a Participant may terminate the Participant’s deferral election at any time
during the Plan Year with respect to all Qualified Director Compensation which
has not yet been earned or deferred.

 

ARTICLE IV.

Deferred Compensation Accounts

 

4.1                                 Deferred
Compensation Accounts.  The Administrator shall establish and
maintain for each Participant an Account to which shall be credited the amounts
allocated thereto under this Article IV and from which shall be debited the
Participant’s distributions and withdrawals under Articles VI and VII.  Such Account may be a simple account payable
in the Company’s financial records.

 

4.2                                 Election
of Investment Funds.  At the time of making the deferral elections
described in Section 3.1, the Participant must designate, on the Investment
Election Form provided

 

4

 

by the Administrator, the Investment Funds in which the Participant’s
Account will be deemed to be invested for purposes of determining the amount of
earnings to be credited to his or her Account. 
In making the designation pursuant to this Section 4.2, the Participant
may specify that all or any multiple of his or her Account be deemed to be
invested, in whole percentage increments, in one or more of the Investment
Funds provided under the Plan as communicated from time to time by the
Administrator.  Effective as of the end
of any calendar month, a Participant may change the designation made under this
Section 4.2 by filing a superseding Investment Election Form by the 25th day of
such month.

 

If a Participant fails to complete and deliver
to the Administrator an Investment Election Form by the December 15th preceding
the Plan Year to which an initial or superseding election under Section 3.1
relates, such deferral election shall be deemed invalid.  Notwithstanding the foregoing, with respect
to the Plan Year beginning in 2004, only Nonemployee Directors listed on Schedule 1 may elect to defer
Qualified Director Compensation under Article III, and the Administrator must
receive their Investment Election Forms within thirty (30) days of the
designation of such Nonemployee Director on Schedule
1.  With respect to a
Nonemployee Director who is hired in the middle of a Plan Year, the
Administrator must receive his or her Investment Election Form within thirty
(30) days of the designation of such person as eligible to participate in the
Plan by the Administrator’s addition of such person’s name to Schedule 1.

 

4.3                                 Crediting
of Deferred Compensation.  As
of the first day of each calendar quarter 
that begins after the Plan takes effect, each Participant’s Account
shall be credited with an amount which is equal to the amount of the Participant’s
Qualified Director Compensation which such Participant has elected to defer
under Article III, which such Qualified Director Compensation would otherwise
have been paid in cash to the Participant during the preceding month.

 

4.4                                 Crediting of Earnings.

 

(a)                                  Beginning
with the first day of the month after the Plan takes effect, and subject to
amendment by the Board, for each Plan Year earnings, if any, shall be credited
to each Participant’s Account at a rate equal to the earnings experience of the
Investment Fund(s) selected by the Participant on his or her Investment
Election Form for that percentage of the Participant’s Account that is invested
in each selected Investment Fund.

 

(b)                                 Earnings
shall be credited on such valuation dates as the Administrator shall determine,
but not less frequently than once per calendar year.

 

4.5                                 Applicability
of Account Values.  The
value of each Participant’s Account as determined as of a given date under this
Article IV, plus any amounts subsequently allocated thereto under this Article
IV, and less any amounts distributed or withdrawn under Articles VI or VII
shall remain the value thereof for all purposes of the Plan until the Account
is revalued hereunder.

 

4.6                                 Vesting
of Deferred Compensation Accounts.  Subject to the
reductions provided for in Section 7.2 with respect to certain Participant
withdrawals, each Participant’s interest in his or her Account shall be 100%
vested and non-forfeitable at all times.

 

4.7                                 Assignments,
Etc. Prohibited.  No part of any Participant’s Account
shall be liable for the debts, contracts or engagements of the Participant, or
the Participant’s beneficiaries or

 

5

 

successors in interest, or be taken in execution by levy, attachment or
garnishment or by any other legal or equitable proceeding, nor shall any such
person have any rights to alienate, anticipate, commute, pledge, encumber or
assign any benefits or payments hereunder in any manner whatsoever except to
designate a beneficiary as provided in Section 6.2.

 

ARTICLE V.

Special Deferrals

 

5.1                                 Any
director compensation that a Participant deferred pursuant to a written
deferred compensation agreement with the Company prior to July 1, 2004, and any
director compensation that is not Qualified Director Compensation but that is
deferred pursuant to any such agreement after July 1, 2004 shall constitute
part of the Participant’s Account solely for purposes of being eligible and
available for distribution in accordance with Article VI of the Plan
(regardless of the terms of the Participant’s deferred compensation agreement,
but only to the extent the Participant elects on his or her Distribution
Election Form to expressly apply the election to amounts deferred pursuant to
individual agreements (in contrast to deferral pursuant to Article III
hereof)).

 

ARTICLE VI.

Distributions Of Deferred Compensation Accounts

 

6.1                                 Distributions upon a
Participant’s Separation from Service.

 

(a)                                  The
Account of a Participant who incurs a Separation from Service other than on
account of death shall be paid to the Participant as elected in accordance with
Section 6.3.  The Participant may choose
from among the following forms of distribution:

 

(i)                                     A
lump-sum distribution to be paid within six (6) months following the
Participant’s Separation from Service.

 

(ii)                                  Approximately
equal annual installments (determined either as a percentage of the Participant’s
total Account balance or as by a specified dollar amount per installment) over
a period of any number of years up to 20 years from the date the payments
commence, which shall commence, based on the Participant’s election, either (I)
within thirty (30) days following the date of the Participant’s Separation from
Service, (II) on the January 1st that next follows a specified number of years
after the date of such Separation from Service; (III) on a specified
anniversary of the date of such Separation of Service, (IV) on a specified
number of years from the effective date of the Participant’s Distribution
Election Form, or (V) on the Participant attaining a specified age.

 

A Participant may elect a distribution pursuant to
this Section 6.1 in such other forms, or payable upon such other commencement
dates, as are specified by the Administrator on the Distribution Election Form;
provided, however, that no such election shall provide for payments to be made
more than 20 years after such Participant’s Separation from Service.

 

(b)                                 In
the case of a Participant who terminates Board service with the Company and who
has not completed and delivered to the Administrator a Distribution Election
Form pursuant to Section 6.3, such Participant’s entire Account balance shall
be paid to the

 

6

 

Participant in a lump sum distribution on or about the date one year
after the Participant’s Separation from Service.

 

(c)                                  Notwithstanding
Section 6.1(a) hereof, the Administrator may in its discretion make a lump sum
distribution of a Participant’s entire remaining Account Balance if the
Participant’s entire Account balance is less than $5,000 at the time of the
Participant’s Separation from Service. 
Such a lump sum distribution shall fully settle and extinguish the
Participant’s rights under the Plan.

 

6.2                                 Distributions
upon a Participant’s Death.  Notwithstanding anything to the contrary in
the Plan, the remaining balance of the Account of a Participant who dies (i)
shall be paid to the persons and entities designated by the Participant as his
or her beneficiaries for such purpose and (ii) shall be paid in the manner set
forth in this Section 6.2.  Upon a
Participant’s death, such balance shall be paid as specified by the Participant
in an election made pursuant to Section 6.3. 
Such election shall specify whether payment shall be made (I) in a
lump-sum distribution within six (6) months following the Participant’s death,
or (II) in accordance with the distribution election made pursuant to Section
6.1 hereof (in which case such Participant’s death shall be considered the date
of such Participant’s Separation from Service for purposes of determining the
date of commencement of distribution under such election).  If the Participant fails to make an election
pursuant to Section 6.3, his or her spouse shall be deemed to be the
beneficiary of his or her Account and shall receive a lump sum distribution as
soon as practicable after the Participant’s death, provided that if the
Participant does not have a spouse at the time of his or death, the Participant’s
estate shall be deemed to be the beneficiary of his or her Account.

 

6.3                                 Election
of Manner and Time of Distribution.  At the time a
Participant first elects to defer Qualified Director Compensation pursuant to
Section 3.1, he or she shall make elections on the Distribution Election Form
pursuant to this Article VI and deliver such form to the Administrator.  Such elections shall remain in effect and
shall apply to the Participant’s total Account, as the same may increase or
decrease from time to time.  Elections
pursuant to this Article VI may be superseded by completion of a subsequent
Distribution Election Form that the Participant delivers to the Administrator,
which subsequent elections shall then apply to the Participant’s total Account,
as the same may increase or decrease from time to time.  Notwithstanding the foregoing, no subsequent
election pursuant to Section 6.1 shall be effective unless it is made at least
12 months prior to the Participant’s Separation from Service.

 

6.4                                 Applicable Taxes.  All distributions under this Article
VI shall be subject to withholding for all amounts which the Company is
required to withhold under federal, state or local tax law.

 

ARTICLE VII.

Withdrawals From Deferred Compensation Accounts

 

7.1                                 Hardship
Distributions from Accounts.  By delivering a written
election to such effect to the Administrator, at any time a Participant may
elect to take a distribution from the Participant’s Account on account of the
Participant’s Hardship, but only to the extent that the Board determines (with
the Participant not present or voting) that the Participant has incurred a
Hardship that is not otherwise relievable:

 

7

 

(a)                                  through
reimbursement or compensation by insurance or otherwise,

 

(b)                                 by
liquidation of the Participant’s assets (to the extent that such liquidation
does not itself cause a Hardship), or

 

(c)                                  by
cessation of deferrals under the Plan.

 

7.2                                 Accelerated Distributions.  At any time, any Participant may elect to
take a distribution of all or any part of such Participant’s Account by
delivering a written election to such effect to the Administrator, provided,
however, that if such a Participant makes such an election (i) the Participant
shall forfeit, and the Participant’s Account shall be debited with, an amount
equal to 10% of the amount of the distribution, (ii) the Participant’s deferral
election for the Plan Year in which the distribution occurs shall be terminated
with respect to any Qualified Director Compensation which has not yet been
deferred; and (iii) the Participant shall not be permitted to defer Qualified
Director Compensation under the Plan for the two Plan Years immediately
following the Plan Year of the distribution. 
Notwithstanding the foregoing, the forfeiture required under clause (i)
of the preceding sentence shall not apply to elections that are both contingent
on a Change in Control and made more than 90 days before the Change in Control
occurs.

 

7.3                                 Payment
of Withdrawals and Distributions.  All withdrawals and
distributions under this Article VII shall be paid within thirty (30) days
after a valid election is delivered to the Administrator, except that amounts
payable under Section 7.2 as the result of a Change in Control shall be paid
within thirty (30) days after each payment date elected by the Participant.  The Administrator shall give prompt notice to
the Participant if an election is invalid and is therefore rejected,
identifying the reason(s) for the invalidity. 
If the Administrator has not paid but has not affirmatively rejected an
election within the applicable thirty (30) day deadline, then the election
shall be deemed rejected on that day.  If
a withdrawal election is rejected, the Participant may bring a claim for
benefits under Section 8.11.

 

7.4                                 Effect of
Withdrawals.  If
a Participant receives a withdrawal under this Article VII after payments have
commenced under Section 6.1, the remaining payments shall be recalculated, by
reamortizing the remaining payments over the remaining term and applying the
then-current rate used to credit earnings under Section 4.4.

 

7.5                                 Applicable Taxes.  All
withdrawals under this Article VII shall be subject to withholding for all
amounts which the Company is required to withhold under federal, state or local
tax law.

 

ARTICLE VIII.

Administrative Provisions

 

8.1                                 Administrator’s
Duties and Powers.  The Administrator shall conduct the
general administration of the Plan in accordance with the Plan and shall have
all the necessary power, authority and discretion to carry out that function.
Among its necessary powers and duties are the following:

 

(a)                                  To
delegate all or part of its function as Administrator to others and to revoke
any such delegation.

 

8

 

(b)                                 To
determine questions of eligibility of Participants and their entitlement to
benefits, subject to the provisions of Section 8.11.

 

(c)                                  To
select and engage attorneys, accountants, actuaries, trustees, appraisers,
brokers, consultants, administrators, physicians, or other persons to render
service or advice with regard to any responsibility the Administrator or the
Board has under the Plan, or otherwise, to designate such persons to carry out
fiduciary responsibilities under the Plan, and (together with the Committee,
the Company, the Board and the officers and Employees of the Company) to rely
upon the advice, opinions or valuations of any such persons, to the extent
permitted by law, being fully protected in acting or relying thereon in good
faith.

 

(d)                                 To
interpret the Plan and any relevant facts for purpose of the administration and
application of the Plan, in a manner not inconsistent with the Plan or
applicable law and to amend or revoke any such interpretation.

 

(e)                                  To
conduct claims procedures as provided in Section 8.11.

 

8.2                                 Limitations Upon
Powers.  The Plan shall be uniformly and
consistently administered, interpreted and applied with regard to all
Participants in similar circumstances. The Plan shall be administered,
interpreted and applied fairly and equitably and in accordance with the
specified purposes of the Plan. Notwithstanding the foregoing, the distribution
forms and commencement dates specified in Section 6.1(a) shall apply to such
Participants, and in such manner, as the Administrator determines in its sole
discretion.

 

8.3                                 Final
Effect of Administrator Action.  Except as provided in
Section 8.11, all actions taken and all determinations made by the
Administrator shall, unless arbitrary and capricious, be final and binding upon
all Participants, the Company, and any person interested in the Plan.

 

8.4                                 Delegation by
Administrator

 

(a)                                  The
Administrator may, but need not, appoint a Delegate, which may be a single
individual or a sub-committee or sub-committees consisting of two or more
members, to hold office during the pleasure of the Administrator. The Delegate
shall have such powers and duties as are delegated to it by the Administrator.
The Delegate and/or sub-committee members shall not receive payment for their
services as such.

 

(b)                                 Appointment
of the Delegate and/or sub-committee members shall be effective upon filing of
written acceptance of appointment with the Administrator.

 

(c)                                  The
Delegate and/or sub-committee member may resign at any time by delivering
written notice to the Administrator.

 

(d)                                 Vacancies
in the Delegate and/or sub-committee shall be filled by the Administrator.

 

(e)                                  If
there is a sub-committee, the sub-committee shall act by a majority of its
members in office; provided, however, that the sub-committee may appoint one of
its

 

9

 

members or a delegate to act on behalf of the sub-committee on matters
arising in the ordinary course of administration of the Plan or on specific
matters.

 

8.5                                 Indemnification
by the Company; Liability Insurance.  The Company shall pay
or reimburse any of the Company’s officers, directors, Committee members,
sub-committee members, Delegates, or Employees who are fiduciaries with respect
to the Plan for all expenses incurred by such persons in, and shall indemnify
and hold them harmless from, all claims, liability and costs (including
reasonable attorneys’ fees) arising out of the good faith performance of their
duties under the Plan. The Company may obtain and provide for any such person,
at the Company’s expense, liability insurance against liabilities imposed on
such person by law.

 

8.6                                 Recordkeeping

 

(a)                                  The
Administrator shall maintain suitable records of each Participant’s Account
which, among other things, shall show separately deferrals and the earnings
credited thereon, as well as distributions and withdrawals therefrom and
records of its deliberations and decisions.

 

(b)                                 The
Administrator shall appoint a secretary, and at its discretion, an assistant
secretary, to keep the record of proceedings, to transmit its decisions,
instructions, consents or directions to any interested party, to execute and
file, on behalf of the Administrator, such documents, reports or other matters
as may be necessary or appropriate and to perform ministerial acts.

 

(c)                                  The
Administrator shall not be required to maintain any records or accounts which
duplicate any records or accounts maintained by the Company.

 

8.7                                 Statement to
Participants.  By March 15 of each year, the
Administrator shall furnish to each Participant a statement setting forth the
value of the Participant’s Account as of the preceding December 31 and such
other information as the Administrator shall deem advisable to furnish.

 

8.8                                 Inspection of
Records.  Copies of the Plan and records of a
Participant’s Account shall be open to inspection by the Participant or the
Participant’s duly authorized representatives at the office of the
Administrator at any reasonable business hour.

 

8.9                                 Identification
of Fiduciaries.  The Administrator shall be the named
fiduciary of the Plan and, as permitted or required by law, shall have
exclusive authority and discretion to operate and administer the Plan.

 

8.10                           Procedure
for Allocation of Fiduciary Responsibilities.  Fiduciary responsibilities under the Plan are
allocated as follows:

 

(a)                                  The
sole duties, responsibilities and powers allocated to the Board, any Committee
and any fiduciary shall be those expressly provided in the relevant Sections of
the Plan.

 

10

 

(b)                                 All
fiduciary duties, responsibilities, and powers not allocated to the Board, any
Committee or any fiduciary, are hereby allocated to the Administrator, subject
to delegation.

 

Fiduciary duties,
responsibilities and powers under the Plan may be reallocated among fiduciaries
by amending the Plan in the manner prescribed in Section 8.4, followed by the
fiduciaries’ acceptance of, or operation under, such amended Plan.

 

8.11                           Claims Procedure

 

(a)                                  Any
Participant or beneficiary of a Participant has the right to make a written
claim for benefits under the Plan. If such a written claim is made, and the
Administrator wholly or partially denies the claim, the Administrator shall
provide the claimant with written notice of such denial, setting forth, in a
manner calculated to be understood by the claimant:

 

(i)                                     the
specific reason or reasons for such denial;

 

(ii)                                  specific
reference to pertinent Plan provisions on which the denial is based;

 

(iii)                               a
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or
information is necessary; and an

 

(iv)                              explanation
of the Plan’s claims review procedure and time limits applicable to those
procedures.

 

(b)                                 The
written notice of any claim denial pursuant to Section 8.11(a) shall be given
not later than thirty (30) days after receipt of the claim by the
Administrator, unless the Administrator determines that special circumstances
require an extension of time for processing the claim, in which event:

 

(i)                                     written
notice of the extension shall be given by the Administrator to the claimant
prior to thirty (30) days after receipt of the claim;

 

(ii)                                  the
extension shall not exceed a period of thirty (30) days from the end of the
initial thirty (30) day period for giving notice of a claim denial;

 

(iii)                               and
the extension notice shall indicate (A) the special circumstances requiring an
extension of time and (B) the date by which the Administrator expects to render
the benefit determination.

 

(c)                                  The
decision of the Administrator shall be final unless the claimant, within sixty
(60) days after receipt of notice of the claims denial from the Administrator,
submits a written request to the Board, or its delegate, for an appeal of the
denial. During that sixty (60) day period, the claimant shall be provided, upon
request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to the claim for benefits. The claimant
shall be provided the opportunity to submit written comments, documents,
records, and

 

11

 

other information relating to the claim for benefits as part of the
claimant’s appeal. The claimant may act in these matters individually, or
through his or her authorized representative.

 

(d)                                 After
receiving the written appeal, if the Board, or its delegate, shall issue a
written decision notifying the claimant of its decision on review, not later
than thirty (30) days after receipt of the written appeal, unless the Board or
its delegate determines that special circumstances require an extension of time
for reviewing the appeal, in which event:

 

(i)                                     written
notice of the extension shall be given by the Board or its delegate prior to
thirty (30) days after receipt of the written appeal;

 

(ii)                                  the
extension shall not exceed a period of thirty (30) days from the end of the
initial thirty (30) day review period; and

 

(iii)                               the
extension notice shall indicate (A) the special circumstances requiring an
extension of time and (B) the date by which the Board or its delegate expects to
render the appeal decision.

 

The period of time within which a benefit
determination on review is required to be made shall begin at the time an
appeal is received by the Board or its delegate, without regard to whether all
the information necessary to make a benefit determination on review accompanies
the filing of the appeal. If the period of time for reviewing the appeal is
extended as permitted above, due to a claimant’s failure to submit information
necessary to decide the claim on appeal, then the period for making the benefit
determination on review shall be tolled from the date on which the notification
of the extension is sent to the claimant until the date on which the claimant
responds to the request for additional information.

 

(e)                                  In
conducting the review on appeal, the Board or its delegate shall take into
account all comments, documents, records, and other information submitted by
the claimant relating to the claim, without regard to whether such information
was submitted or considered in the initial benefit determination. If the Board
or its delegate upholds the denial, the written notice of decision from the
Board or its delegate shall set forth, in a manner calculated to be understood
by the claimant:

 

(i)                                     the
specific reason or reasons for the denial;

 

(ii)                                  specific
reference to pertinent Plan provisions on which the denial is based; and

 

(iii)                               a
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant to the claim for benefits.

 

(f)                                    If
the Plan or any of its representatives fail to follow any of the above claims
procedures, the claimant shall be deemed to have duly exhausted the
administrative remedies available under the plan and shall be entitled to
pursue any available remedies under applicable law.

 

12

 

8.12                           Conflicting Claims.  If
the Administrator is confronted with conflicting claims concerning a
Participant’s Account, the Administrator may interplead the claimants in an
action at law, or in an arbitration conducted in accordance with the rules of
the American Arbitration Association, as the Administrator shall elect in its
sole discretion, and in either case, the attorneys’ fees, expenses and costs
reasonably incurred by the Administrator in such proceeding shall be paid from
the Participant’s Account.

 

8.13                           Service of Process.  The
Secretary of Greene County Bancshares, Inc. is hereby designated as agent of
the Plan for the service of legal process.

 

8.14                           Fees. 
Any fees associated with ongoing plan administration shall be paid by the Company.

 

ARTICLE IX.

Miscellaneous Provisions

 

9.1                                 Termination of the Plan

 

(a)                                  While
the Plan is intended as a permanent program, the Board shall have the right at
any time to declare the Plan terminated completely as to the Company or as to
any group, division or other operational unit thereof or as to any affiliate
thereof.

 

(b)                                 In
the event of any termination, the Board, in its sole and absolute discretion
may elect to:

 

(i)                                     maintain
Participants’ Accounts, payment of which shall be made in accordance with
Articles VI and VII; or

 

(ii)                                  before
a Change in Control, liquidate the portion of the Plan attributable to each
Participant as to whom the Plan is terminated and distribute each such
Participant’s Account in a lump sum or pursuant to any method which is at least
as rapid as the distribution method elected by the Participant under Section
6.3.

 

9.2                                 Limitation
on Rights of Participants.  The Plan is strictly a voluntary
undertaking on the part of the Company and shall not constitute a contract
between the Company and any Nonemployee Director, or consideration for, or an
inducement or condition of, the service of a Nonemployee Director.  Nothing contained in the Plan shall give any
Nonemployee Director the right to be retained in the service of a Company or to
interfere with or restrict the right of the Company, which is hereby expressly
reserved, to discharge or retire any Nonemployee Director, except as otherwise
provided by a written employment agreement between the Company and the
Nonemployee Director, at any time without notice and with or without cause.
Inclusion under the Plan will not give any Nonemployee Director any right or
claim to any benefit hereunder except to the extent such right has specifically
become fixed under the terms of the Plan. The doctrine of substantial
performance shall have no application to Nonemployee Directors, Participants or
any other persons entitled to payments under the Plan.

 

9.3                                 Consolidation or Merger;
Adoption of Plan by Other Companies.  There shall be no merger or consolidation
with, or transfer of the liabilities of the Plan to, any other plan unless each

 

13

 

Participant in the Plan would have, if the combined or successor plans
were terminated immediately after the merger, consolidation, or transfer, an
account which is equal to or greater than his or her corresponding Account
under the Plan had the Plan been terminated immediately before the merger,
consolidation or transfer.

 

9.4                                 Errors and
Misstatements.  In the event of any misstatement
or omission of fact by a Participant to the Administrator or any clerical error
resulting in payment of benefits in an incorrect amount, the Administrator
shall promptly cause the amount of future payments to be corrected upon
discovery of the facts and shall cause the Company to pay the Participant or
any other person entitled to payment under the Plan any underpayment in cash in
a lump sum, or to recoup any overpayment from future payments to the
Participant or any other person entitled to payment under the Plan in such
amounts as the Administrator shall direct, or to proceed against the
Participant or any other person entitled to payment under the Plan for recovery
of any such overpayment.

 

9.5                                 Payment on
Behalf of Minor, Etc.  In
the event any amount becomes payable under the Plan to a minor or a person who,
in the sole judgment of the Administrator, is considered by reason of physical
or mental condition to be unable to give a valid receipt therefor, the
Administrator may direct that such payment be made to any person found by the
Administrator in its sole judgment, to have assumed the care of such minor or
other person. Any payment made pursuant to such determination shall constitute
a full release and discharge of the Company, the Board, the Administrator, the
Committee and their officers, directors and employees.

 

9.6                                 Amendment of Plan.  The
Plan may be wholly or partially amended by the Board from time to time, in its
sole and absolute discretion, including prospective amendments which apply to
amounts held in a Participant’s Account as of the effective date of such
amendment and including retroactive amendments necessary to conform to the
provisions and requirements of the Code; provided, however, that no amendment
shall decrease the amount of any Participant’s Account as of the effective date
of such amendment. Notwithstanding the foregoing, Section 9.7 shall not be
amended in any respect on or after a Change in Control and no amendment to this
Plan shall reduce, limit or eliminate any rights of a Participant to
distributions pursuant to Article VII for deferrals for which elections under
Article III occurred prior to the effective date of the amendment, without the
Participant’s prior written consent, except for amendments necessary to conform
to the provisions and requirements of the Code.

 

9.7                                 Funding.

 

(a)                                  The
Company may at any time create a Trust with the Trustee.  The Company shall cause the Trust to be
funded as soon as practicable after the end of each calendar month.  The Company shall contribute liquid assets to
any Trust an amount equal to (1) the amount deferred by each Participant
pursuant to Article III; and (2) net of any distributions paid pursuant to
Article VII.

 

(b)                                 Although
the principal of the Trust and any earnings thereon shall be held separate and
apart from other funds of Company and shall be used exclusively for the uses
and purposes of Plan Participants and their beneficiaries as set forth therein,
neither the Participants nor their beneficiaries shall have any preferred claim
on, or any beneficial ownership in, any assets of the Trust prior to the time
such assets are paid to the Participants or their beneficiaries as benefits and

 

14

 

all rights created under this Plan shall be unsecured contractual
rights of Plan Participants and their beneficiaries against the Company.  Any assets held in the Trust will be subject
to the claims of Company’s general creditors under federal and state law in the
event of insolvency as defined in the Trust.

 

9.8                                 Governing Law.  All
disputes relating to or arising from the Plan shall be governed by the internal
substantive laws (and not the laws of conflicts of laws) of the State of
Tennessee, to the extent not preempted by United States federal law.  If any provision of this Plan is held by a
court of competent jurisdiction to be invalid and unenforceable, the remaining
provisions shall continue to be fully effective.

 

9.9                                 Pronouns and
Plurality.  The masculine pronoun shall
include the feminine pronoun, and the singular the plural where the context so
indicates.

 

9.10                           Titles.  Titles
are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of the Plan.

 

9.11                           References.  Unless
the context clearly indicates to the contrary, a reference to a statute,
regulation or document shall be construed as referring to any subsequently
enacted, adopted or executed statute, regulation or document.

 

15

 

Schedule
1

 

GREENE
COUNTY BANCSHARES, INC.

DEFERRED COMPENSATION PLAN FOR
NONEMPLOYEE DIRECTORS

 

Schedule
of Nonemployee Directors

 

The following directors shall be eligible to participate in the Greene
County Bancshares, Inc. Deferred Compensation Plan for Nonemployee Directors:

 

	
  Phil M. Bachman

  	
   

  	
  Terry Leonard

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Charles S. Brooks

  	
   

  	
  Jerald Jaynes

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bruce Campbell

  	
   

  	
  John Tolsma

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  W.T. Daniels

  	
   

  	
  Charles H. Whitfield, Jr.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Robin Haynes

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Effective
  Date: July 1, 2004

  	
   

  

 

 

Exhibit
A

 

GREENE
COUNTY BANCSHARES, INC.

DEFERRED
COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS

 

Deferral
Election Form

 

AGREEMENT,
made this       day of                     ,
       , by and between the undersigned
participant (the “Participant”) in the Greene County Bancshares, Inc. Deferred
Compensation Plan for Nonemployee Directors (the “Plan”) and Greene County
Bancshares, Inc. (the “Company”).  The
parties agree that any term that begins herein with initial capital letters
shall have the special meaning defined in the Plan, unless the context clearly
requires otherwise.

 

WHEREAS,
the Company has established the Plan, and the Participant is eligible to
participate in said Plan.

 

NOW
THEREFORE, it is mutually agreed as follows:

 

1.                                       The
Participant, by the execution hereof, agrees to participate in the Plan upon
the terms and conditions set forth therein, and, in accordance therewith, elects
to defer the receipt of:

 

       %                of the Participant’s
Qualified Director Compensation (up to 100% of cash compensation that is not
otherwise being deferred pursuant to a written agreement with the Company
entered into prior to July 1, 2004).

 

2.                                       If
the Participant checks this space         ,
this election will supersede any prior election and will take effect as soon as
practicable hereafter (but only with respect to future compensation as to which
the Participant has no current legal right or claim through the rendering of
services).  Otherwise, this election’s
effective date will be the next January 1st. 
(NOTE: the Participant may change his or her deferral election
percentage once per Plan Year, except that a Participant may cease deferring
compensation pursuant to the Plan at any time.)

 

3.                                       This
election will continue in force until either the effective date of a
superseding election by the Participant, or until the Participant
terminates service with the Company, or until the Plan is terminated by
appropriate corporate action, whichever shall first occur.

 

IN
WITNESS WHEREOF, the parties hereto have hereunto set their
hands the day and year first above-written.

 

	
  Witnessed by:

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
				

 

 

	
  Witnessed by:

  	
  GREENE COUNTY BANCSHARES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  A
  member of the Board of Directors

  
					

 

2

 

Exhibit
B

 

GREENE
COUNTY BANCSHARES, INC.

DEFERRED
COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS

 

Distribution
Election Form

 

AGREEMENT,
made this       day of                  ,
         , by and between the
undersigned participant (the “Participant”) in the Greene County Bancshares,
Inc. Deferred Compensation Plan for Nonemployee Directors (the “Plan”), and
Greene County Bancshares, Inc. (the “Company”) with respect to distribution of
the Participant’s account (“Account”) under the Plan (including, only if this
space             
is checked, the Participant’s deferred compensation pursuant to the individual
agreements referred to in Article V of the Plan).  The parties agree that any term that begins
herein with initial capital letters shall have the special meaning defined in
the Plan, unless the context clearly requires otherwise.

 

NOW
THEREFORE, it is mutually agreed as follows:

 

1.                                       Form
of Payment Generally.  The
Participant, by the execution hereof, agrees to participate in the Plan upon
the terms and conditions set forth therein, and, in accordance therewith,
elects to have his or her Account, and amounts deferred as described in Article
V, distributed in cash as follows:

 

o                                    in a lump sum.

 

o                                    in substantially
equal annual payments over a period of         
years (not to exceed 20 years from the date that payments commence).  The amount of the annual payments shall be
determined as follows:

 

o                                                  
% of the Participant’s Account balance per year.

 

o                                    $
                 
of the Participant’s Account balance per year.

 

2.                                       Timing
of Payment.  The Participant directs
that his or her Account be distributed as follows:

 

o                                    within thirty (30)
days following the Participant’s Separation from Service with the Company.

 

o                                    on the January 1st
that next follows the date that is        
years after the Participant’s Separation from Service with the Company.

 

o                                    on the        
anniversary of the Participant’s Separation from Service with the Company.

 

 

o                                    on the        
anniversary of the effective date of this Distribution Election Form.

 

o                                    on the first date
of the month next following the Participant’s        
birthday.

 

o                                    upon a Change in
Control.

 

3.                                       Frequency
of Payment.  The Participant shall
receive installment payments, if elected as form of payment on a                              
quarterly,                   
semi-annual, or                    
annual basis.

 

4.                                       Form
of Payment to Beneficiary.  In the event
of the Participant’s death, his or her Account shall be distributed —

 

o                                    in one lump sum
payment within six (6) months following the Participant’s death.

 

o                                    in accordance with
the payment schedule selected in paragraphs 1, 2, and 3 hereof (with payments
made as though the Participant survived to collect all benefits, and as though
the Participant terminated service on the date of his or her death, if payments
had not already begun).

 

5.                                       Designation
of Beneficiary. In the event of the Participant’s death before he or she
has collected all of the benefits payable under the Plan, the Participant
hereby directs that any survivorship benefits payable under Article VI of the
Plan be distributed to the beneficiary or beneficiaries designated under
subparagraphs a and b of this paragraph 5 in the manner elected pursuant to
paragraph 4 above:

 

a.                                       Primary
Beneficiary.  The Participant hereby
designates the person(s) named below to be his or her primary beneficiary and
to receive the balance of any unpaid benefits under the Plan.

 

	
  Name
  of

  Primary Beneficiary

  	
   

  	
  Social Security

  Number

  	
   

  	
  Mailing Address

  	
   

  	
  Percentage of

  Death Benefit

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  %

  	
   

  

 

2

 

b.                                      Contingent
Beneficiary.  In the event that the
primary beneficiary or beneficiaries named above are not living at the time of
the Participant’s death, the Participant hereby designates the following
person(s) to be his or her contingent beneficiary for purposes of the Plan:

 

	
  Name of

  Contingent

  Beneficiary

  	
   

  	
  Social Security

  Number

  	
   

  	
  Mailing Address

  	
   

  	
  Percentage of

  Death Benefit

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  %

  	
   

  

 

6.                                       Effect
of Election.  The elections made in
paragraphs 1, 2, and 3 hereof shall become irrevocable on the earlier of (1)
the Participant’s death, (2) the date one year before the Participant first
becomes entitled to receive a distribution under Article III of the Plan, and
(3) the date 90 days before a Change in Control.  The Participant may, by submitting an
effective superseding Distribution Election Form at any time and from time to
time, prospectively change the beneficiary designation and the manner of
payment to a Beneficiary.  Such elections
shall, however, become irrevocable upon the Participant’s death.

 

7.                                       Mutual
Commitments.  The Company agrees to
make payment of all amounts due the Participant in accordance with the terms of
the Plan and the elections made by the Participant herein.  The Participant agrees to be bound by the
terms of the Plan, as in effect on the date hereof or properly amended
hereafter.

 

IN
WITNESS WHEREOF, the parties hereto have hereunto set their
hands the day and year first above-written.

 

	
  Witnessed by:

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witnessed by:

  	
   

  	
  GREENE COUNTY BANCSHARES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  A
  duly authorized Committee Member

  
							

 

3

 

Exhibit
C

 

GREENE
COUNTY BANCSHARES, INC.

DEFERRED
COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS

 

Investment
Election Form

 

WHEREAS, Greene
County Bancshares, Inc. (the “Company”) has established the Greene County
Bancshares, Inc. Deferred Compensation Plan for Nonemployee Directors (the “Plan”),
and the undersigned participant therein is eligible to make an investment
election pursuant to Article IV of said Plan.

 

NOW
THEREFORE, the Participant hereby elects as follows:

 

1.                                       The
Participant directs that any amounts credited to his or her account under the
Plan will appreciate or depreciate from the effective date hereof, as though
they were invested as follows:

 

	
        

  	
  %

  	
  “Deemed” investment in
  Greene County Bancshares, Inc. common stock.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  American Funds-Capital
  World Growth and Income.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  American Funds-Growth
  Fund of America.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  American Funds-American
  Balanced.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  American
  Funds-Intermediate Bond Fund of America.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  Templeton Foreign Fund.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  PIMCO Total Return Bond
  Fund.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  American Funds-Small
  Cap World Fund

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  AIM Mid Cap Core Equity
  Fund.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
        

  	
  %

  	
  Schwab Money Market
  Fund.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  100

  	
  %

  	
   

  	
   

  

 

2.                                       The
investment election made in the prior paragraph shall be effective on the first
day of the month next following the effective date of this Investment Election
Form, and shall remain in effect until the last day of the month in which the
Committee’s receives a properly executed superseding investment election by the
Participant.

 

 

IN
WITNESS WHEREOF, the Participant has executed this form on
the        day of                                
20      .

 

	
  Witnessed by:

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
				

 

2EXHIBIT
10.2

 

GREENE COUNTY BANCSHARES, INC.

 

 

 

CHANGE IN CONTROL PROTECTION PLAN

(also functioning as a Summary Plan Description)

 

 

 

Effective  July 1, 2004

 

 

GREENE COUNTY
BANCSHARES, INC.

 

CHANGE IN CONTROL
PROTECTION PLAN

 

(also functioning as a Summary
Plan Description)

 

Table of Contents

 

	
  1.

  	
   

  	
  BENEFITS PAYABLE
  UNDER THE PLAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Change in
  Control Severance Benefit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Definition of
  Change in Control

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  PLAN ELIGIBILITY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  VESTING AND
  ELIGIBILITY RULES FOR BENEFITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Covered Terminations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Successor Employment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  ADDITIONAL BENEFITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  TAXES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  RELATION TO OTHER PLANS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  CLAIMS PROCEDURES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Claims Normally Not
  Required

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Disputes

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Time for Filing Claims

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Procedures

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  PLAN ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Discretion

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Finality of
  Determinations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Drafting Errors

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Scope

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  COSTS AND INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  PLAN
  AMENDMENT AND TERMINATION;

  LIMITATION ON EMPLOYEE RIGHTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  GOVERNING LAW

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  MISCELLANEOUS

  	
   

  

 

i

 

	
  13.

  	
   

  	
  OTHER INFORMATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Type of Plan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Addresses, etc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Agent for
  Service of Legal Process

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Funding

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Plan Amendment or
  Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Statement of ERISA Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  Whom to
  Call for Additional Information

  	
   

  

 

ii

 

GREENE COUNTY BANCSHARES, INC.

 

CHANGE IN CONTROL PROTECTION PLAN

 

Plan Document and Summary
Plan Description

 

Greene County Bancshares, Inc. and its
affiliates (together, the “Company”)
recognize that a corporate change in control may adversely affect certain
employees.  To treat these employees in a
fair and compassionate manner, Greene County Bancshares, Inc. has adopted this
Change in Control Protection Plan (the “Plan”).

 

This document is the Plan’s plan document, and
also functions as its summary plan description. 
This Plan will control in case of conflict with any other document.  Throughout this Plan, the term “Sponsor” is used when Greene County
Bancshares, Inc. is acting in its non-fiduciary capacity as Plan sponsor and settlor.  The term “Plan
Administrator” is used when Greene County Bancshares, Inc. is
acting in the limited capacity of interpreting the Plan and determining
eligibility for benefits (see Section 8 below for detailed information).

 

The Plan became effective on July 1, 2004.  Even if the Plan expires, the Sponsor will
thereafter honor any vested but unpaid benefits under the Plan (subject to
Section 10 below).  References to Sponsor,
the Company, and their affiliates also refer to any successor to their interests.

 

1.             Benefits Payable Under the Plan

 

(a)           Change in Control Severance Benefit

 

You will become entitled to severance benefits
pursuant to this Plan if, while this Plan is in effect and while you are
eligible under Section 2 for Plan participation, your employment terminates
under certain circumstances on or after a Change in Control.  The severance benefits (“Change in Control Benefits”) to be paid
to you after your termination date shall be determined pursuant to the
agreement (the “Participation Agreement”)
that you sign pursuant to Section 2 as a condition for becoming a Plan
participant.  You will be a “Participant”
for purposes of the Plan for as long as your Participation Agreement remains in effect.

 

(b)           Definition of Change in
Control

 

The term “Change in Control”
shall mean the occurrence of any of the following:

 

1

 

(i)                                     approval
by the stockholders of the Company of the dissolution or liquidation of the
Company;

 

(ii)                                  approval
by the stockholders of the Company of an agreement to merge or consolidate, or
otherwise reorganize, with or into one or more entities that are not
affiliates, as a result of which less than 50% of the outstanding voting
securities of the surviving or resulting entity immediately after the
reorganization are, or will be, owned, directly or indirectly, by stockholders
of the Company immediately before such reorganization (assuming for purposes of
such determination that there is no change in the record ownership of the Company’s
securities from the record date for such approval until such reorganization and
that such record owners hold no securities of the other parties to such
reorganization, but including in such determination any securities of the other
parties to such reorganization held by affiliates of the Company);

 

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

 

(iv)                              any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”),
but excluding any person described in and satisfying the conditions of Rule
13d-1(b)(1) thereunder), other than a person that is a stockholder of the
Company on the effective date of the Change in Control, becomes the beneficial
owner (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 20% of the
combined voting power of the Company’s then outstanding securities entitled to
then vote generally in the election of directors of the Company; or

 

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

 

2.                                      Plan
Eligibility

 

You are eligible for this Plan only if the
Sponsor has provided you with a Participation Agreement signed by a duly
authorized officer of the Company confirming your eligibility for the
Plan.  If you execute the Participation
Agreement and return it to the Company within 30 days after receiving it, you
will be a Participant.  If your
Participation Agreement expires for any reason before you become vested in the
right to collect Change in Control Benefits, you will immediately cease to be a
Participant.

 

2

 

3.                                      Vesting and Eligibility Rules for
Benefits

 

(a)                                 Covered
Terminations

 

If you are a Participant and incur a Covered
Termination (as defined herein), you will become vested in your right to
receive the Change in Control Benefit set forth in  your Participation Agreement.  If you terminate employment for any other
reason, you will not be eligible for any benefits under this Plan.  For example, you will not be eligible for
Benefits under the Plan if the Plan Administrator determines, in its sole
discretion, that your active employment was terminated either before a Change
in Control, for any reason whatsoever, or on or after a Change in Control by:

 

(i)                                     your
resignation without Good Reason (as defined herein);

 

(ii)                                  your
death; or

 

(iii)                               your discharge for Cause
(as defined herein), as determined by the Sponsor in its sole discretion.

 

(b)           Definitions

 

(i)            For purposes
of this Plan, a “Covered Termination”
shall mean either that on or after a Change in Control (A) you have resigned
from the Company for Good Reason (as defined below), or (B) your employment
with the Company is involuntarily terminated by the Company without Cause (as
defined below).

 

(ii)           For purposes
of this Plan, “Cause” shall mean (A) the refusal or
failure by you to substantially perform your duties with the Company or to
comply with the policies of the Company or any affiliate (other than any such
failure resulting from a condition or conditions establishing your Permanent
Disability (as defined below) or any such actual or anticipated failure after
the date a notice of termination for a bona fide Good Reason is given by you to
the Company, provided in the latter case that circumstances giving rise to Good
Reason in fact exist and are not cured by the Company within thirty (30) days
following such notice); (B) your engagement in conduct which is materially
injurious, monetarily or otherwise, to the Company or its affiliates; (C) your
commitment of one or more significant acts of dishonesty; (D) your failure to
follow a lawful and material directive from your direct or indirect supervisor;
or (E) your conviction, guilty plea or plea of nolo contendere either to any
felony, or to any misdemeanor involving dishonesty or moral turpitude, in each
case, after you have been given written notice of such and have failed to cure
such within thirty (30) days following such notice.

 

(iii)          For purposes
of this Plan, “Good Reason” shall mean (A) any
material reduction by the Company in your base salary; (B) the
requirement that you change your principal location of work to any location
that is in excess of fifty (50) miles from your location of work as of the
effective time of the Change in Control; (C) any material and unreasonable
change in your responsibilities from those you were performing before the
Change in Control; or (D) the liquidation, dissolution, merger, consolidation
or reorganization of the Company, or the transfer of all or substantially all
of the Company’s

 

3

 

assets, unless the successor (by liquidation, dissolution, merger,
consolidation, reorganization, transfer or otherwise) to which all or
substantially all of its assets have been transferred (directly or by operation
of law) assumes the duties and obligations of the Company under this Plan, in
each case, after the Company has been given written notice of such and failed
to cure such within thirty (30) days following such notice.

 

(c)                                  Successor
Employment

 

You will not be considered to have been
terminated, and will not be entitled to a Change in Control Benefit under this
Plan, if the Plan Administrator determines, in its sole discretion, that you
have been offered substantially comparable employment by a Successor Employer
to commence promptly following your termination by the Company, whether you
accept the position or not.  A “Successor Employer” is any affiliate of
the Company, or any entity that assumes operations or functions formerly
carried out by the Company, or any entity making the job offer at the request
of the Company (such as a joint venture of which the Company or an affiliate is
a member).

 

4.                                      Additional
Benefits

 

If you become entitled to a Change in Control
Benefit under this Plan, you will also be eligible to receive Company-paid
COBRA continuation coverage for yourself, your spouse, and your dependents for
the period, if any, set forth in your Participation Agreement.  For COBRA purposes, however, the date on
which you terminate employment will commence the period for which you are
entitled to continuation coverage under COBRA (meaning that the Company’s
payment of COBRA premiums will not extend the duration of your COBRA
eligibility).  The regular COBRA
procedures and rules will apply.

 

5.                                      Taxes

 

Taxes will be withheld from your Change in
Control Benefits to the extent the Plan Administrator determines that this is
required by law.

 

6.                                      Relation
to Other Plans

 

By signing your Participation Agreement, you
recognize and agree that any prior severance or similar plan of the Company
that might apply to you is hereby revoked and ineffective as to you.  No Change in Control Benefits that you
receive will be taken into account for purposes of determining benefits under
other benefit plans, retirement or pension plans, 401(k) plans, or similar
arrangements.  All such plans or similar
arrangements, to the extent inconsistent with this Plan, are hereby so amended.

 

7.                                      Claims
Procedures

 

(a)                                 Claims
Normally Not Required

 

Normally, you do not need to present a formal
claim to receive benefits payable under this Plan.

 

4

 

(b)                                 Disputes

 

If any person (claimant) believes that benefits
are being denied improperly, that the Plan is not being operated properly, that
fiduciaries of the Plan have breached their duties, or that the claimant’s
legal rights are being violated with respect to the Plan, the claimant must
file a formal claim with the Plan Administrator.  This requirement applies to all claims that
any claimant has with respect to the Plan, including claims against fiduciaries
and former fiduciaries, except to the extent the Plan Administrator determines,
in its sole discretion, that it does not have the power to grant all relief
reasonably being sought by the claimant.

 

(c)                                  Time
for Filing Claims

 

A formal claim must be filed within 90 days
after the date the claimant first knew or should have known of the facts on
which the claim is based, unless the Plan Administrator in writing consents
otherwise.  The Plan Administrator will provide
a claimant, on request, with a copy of the claims procedures established under
subsection 7(d).

 

(d)                                 Procedures

 

The Plan Administrator will adopt procedures for
considering claims, which it may amend from time to time, as it sees fit.  A claimant must file a claim for benefits on
a form prescribed by the Plan Administrator. 
If the claimant’s claim for a benefit is wholly or partially denied, the
Plan Administrator will furnish the claimant with a written notice of the
denial.  This written notice must be
provided to the claimant within a reasonable period of time (generally within
90 days, unless special circumstances require an extension of time for
processing the claim, in which case a period not to exceed 180 days) after the
receipt of the claimant’s claim by the Plan Administrator.  (If such an extension of time is required,
written notice of the extension will be furnished to the claimant prior to the
termination of the initial 90-day period, and will indicate the special
circumstances requiring the extension.) 
Written notice of denial of the claimant’s claim must contain the
following information:

 

(i)                                     the
specific reason or reasons for the denial;

 

(ii)                                  a
specific reference to those provisions of the Plan on which such denial is
based;

 

(iii)                               a
description of any additional information or material necessary to perfect the
claimant’s claim, and an explanation of why such material or information is
necessary; and

 

(iv)                              a
copy of the appeals procedures under the Plan and the time limits applicable to
such procedures, including a statement of the claimant’s right to bring a civil
action under Section 502(a) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”)
following an adverse determination of the claimant’s claim.

 

If the claimant’s claim has been denied, and the
claimant wishes to submit his or her

 

5

 

request for a review of his or her claim, the claimant must follow the
following Claims Review Procedure:

 

1.               Upon the denial of his or
her claim for benefits, the claimant may file his or her request for review of
his or her claim, in writing, with the Plan Administrator or claims processor;

 

2.               The claimant must file the
claim for review not later than 60 days after he or she has received written
notification of the denial of his or her claim for benefits;

 

3.               The claimant has the right
to review and obtain copies of all relevant documents relating to the denial of
his or her claim and to submit any issues and comments, in writing, to the Plan
Administrator;

 

4.               If the claimant’s claim is
denied, the Plan Administrator must provide the claimant with written notice of
this denial within 60 days after the Plan Administrator’s receipt of the
claimant’s written claim for review. 
There may be times when this 60-day period may be extended.  This extension may only be made, however,
where there are special circumstances which are communicated to the claimant in
writing within the 60-day period.  If
there is an extension, a decision will be made as soon as possible, but not later
than 120 days after receipt by the Plan Administrator of the claimant’s claim
for review; and

 

5.               The Plan Administrator’s
decision on the claimant’s claim for review will be communicated to the
claimant in writing, and if the claimant’s claim for review is denied in whole
or part, the decision will include:

 

(A)                              the
specific reason or reasons for the denial;

 

(B)                                specific
references to the pertinent provisions of the Plan on which the decision was
based;

 

(C)                                a
statement that the claimant may receive, upon request and free of charge,
reasonable access to and copies of, all documents, records and other
information relevant to the claimant’s claim for benefits; and

 

(D)                               a
statement of the claimant’s right to bring a civil action under Section 502(a)
of ERISA.

 

8.                                      Plan
Administration

 

(a)                                 Discretion

 

The Plan Administrator is responsible for the
general administration and management of the Plan and shall have all powers and
duties necessary to fulfill its responsibilities, including, but not limited
to, the discretion to interpret and apply the Plan and to determine all
questions relating to eligibility for benefits. 
The Plan Administrator and all Plan

 

6

 

fiduciaries shall have the discretion to interpret or construe
ambiguous, unclear, or implied (but omitted) terms in any fashion they deem to
be appropriate in their sole and absolute discretion, and to make any findings
of fact needed in the administration of the Plan.  The validity of any such interpretation,
construction, decision, or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld
unless clearly arbitrary or capricious.

 

(b)                                 Finality
of Determinations

 

Unless arbitrary and capricious, all actions
taken and all determinations by the Plan Administrator or by Plan fiduciaries
will be final and binding on all persons claiming any interest in or under the
Plan.  To the extent the Plan Administrator
or any Plan fiduciary has been granted discretionary authority under the Plan,
the Plan Administrator’s or Plan fiduciary’s prior exercise of such authority
shall not obligate it to exercise its authority in a like fashion thereafter.

 

(c)                                  Drafting
Errors

 

If, due to errors in drafting, any Plan
provision does not accurately reflect its intended meaning, as demonstrated by
consistent interpretations or other evidence of intent (by the Sponsor or the
Plan Administrator, as the case may be), or as determined by the Plan
Administrator in its sole and absolute discretion, the provision shall be
considered ambiguous and shall be interpreted by the Plan Administrator and all
Plan fiduciaries in a fashion consistent with its intent, as determined in the
sole and absolute discretion of the Plan Administrator (but with regard to the
intent of the Sponsor as settlor).

 

(d)                                 Scope

 

This Section may not be invoked by any person to
require the Plan to be interpreted in a manner inconsistent with its
interpretation by the Plan Administrator or other Plan fiduciaries.

 

7

 

9.                                      Costs
and Indemnification

 

(a)                                 All
costs of administering the Plan and providing Plan benefits will be paid by the
Sponsor.

 

(b)                                 To
the extent permitted by applicable law and in addition to any other indemnities
or insurance provided by each Company, the Company shall indemnify and hold
harmless its (and its affiliates’) current and former officers, directors, and
employees against all expenses, liabilities, and claims (including legal fees
incurred to defend against such liabilities and claims) arising out of their
discharge in good faith of their administrative and fiduciary responsibilities
with respect to the Plan.  Expenses and
liabilities arising out of willful misconduct will not be covered under this
indemnity.

 

10.                               Plan
Amendment and Termination; Limitation on Employee Rights 

 

(a)                                 The
Sponsor, acting through its Board of Directors or its delegate, has the right
in its sole and absolute discretion to amend the Plan, to extend its term, or
to terminate the Plan prospectively after giving at least one year of advance
notice to all Participants.

 

(b)                                 Notwithstanding
the foregoing, any amendment or termination of the Plan that occurs in
contemplation of a Change in Control, in connection with a Change in Control,
or within two years after a Change in Control shall only apply to those
Participants:

 

(i)                                     who
consent individually and in writing to the amendment or termination; or

 

(ii)                                  whose
vested Change in Control Benefit, or rights under the Plan to become entitled
to the Change in Control Benefit set forth in his or her Participation
Agreement are not adversely affected by such amendment or termination.

 

Any decision or interpretation that is made
pursuant to this subparagraph (b) shall be subject to judicial review under a
de novo standard, and not under the arbitrary and capricious standard that is
generally intended to apply (and shall apply) to all other Plan determinations
and interpretations.

 

(c)                                  This
Plan shall not give any employee the right to be retained in the service of the
Company, and shall not interfere with or restrict the right of the Company to
discharge or retire the employee for any lawful reason.

 

11.                               Governing
Law

 

This Plan is a welfare plan subject to the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and it
shall be interpreted, administered, and enforced in accordance with that
law.  To the extent that state law is
applicable, the statutes and common law of the State of Tennessee (excluding
its choice of laws principles) shall apply.

 

8

 

12.                               Miscellaneous

 

Where the context so indicates, the singular
will include the plural and vice versa. 
Titles are provided herein for convenience only and are not to serve as
a basis for interpretation or construction of the Plan.  Unless the context clearly indicates to the
contrary, a reference to a statute or document shall be construed as referring
to any subsequently enacted, adopted, or executed counterpart.

 

13.                               Other
Information

 

(a)                                 Type
of Plan

 

This is a welfare plan.

 

(b)                                 Addresses,
etc.

 

The Company’s address, telephone number, and
employer identification number are as follows:

 

Greene County Bancshares, Inc. 

100 North Main Street

Greenville, TN 37743-4992

Attention:  R.
Stan Puckett, Chairman & CEO

Telephone:  (423) 639-5111

EIN:                         62-1222757

 

The Plan’s identification number and Plan Year are as follows:

 

Plan
I.D. Number:  502

Plan Year: Calendar

 

(c)                                  Agent
for Service of Legal Process

 

The Plan Administrator is the Plan’s agent for
service of legal process.

 

(d)                                 Funding

 

The Plan is funded out of the Sponsor’s general
assets.

 

(e)                                  Plan
Amendment or Termination

 

The Sponsor has reserved the right to amend the
Plan in any way at any time, and has reserved the right to terminate the Plan
at any time.

 

(f)                                    Statement
of ERISA Rights

 

As a participant in this Plan, you are entitled
to certain rights and protections under a federal law called the Employee
Retirement Income Security Act of 1974, as amended (as

 

9

 

noted above, ERISA).  ERISA
provides that you are entitled to examine all Plan documents, including the
official Plan document and the Plan’s annual report, at the Plan Administrator’s
office and other specified locations without charge.  Copies of these documents and other Plan
information also may be obtained on written request to the Plan
Administrator.  A reasonable charge may
be requested for copies.

 

In addition to creating rights for Plan participants,
ERISA imposes duties on the people who are responsible for the operation of
this Plan.  The people who operate this
Plan are called “fiduciaries.”  Plan
fiduciaries have a duty to operate this Plan prudently and in the interest of
you and other Plan participants.  No one,
including your employer or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining benefits or
exercising your rights under ERISA.  If
your claim for benefits is denied in whole or in part, you must receive a
written explanation of the reason for this denial.  You have the right to have the Plan
Administrator review and reconsider your claim, as described elsewhere in this
Summary Plan Description.  If you are
dissatisfied with this review, you may have your claim reconsidered by
arbitration.

 

Under ERISA, there are steps you may be able to
take to enforce your rights.  For
instance, if you request certain materials required to be furnished by the Plan
and do not receive them within 30 days, or if you have any other claim with
respect to the Plan, you must utilize the Plan’s claims procedure, including
its arbitration procedures.  You also may
file suit in federal court.  In such a
case, the court may require you to pursue your claim through the Plan’s claims
procedure or it may grant you the relief you are seeking, for example, by
ordering that you be provided with materials you have requested and that you be
paid up to $110 a day until you receive them, unless the materials were not
sent because of reasons beyond the Plan Administrator’s control.

 

If you are discriminated against for asserting
your rights, you should file a claim under the Plan’s claims procedure, or you
may seek assistance from the U.S. Department of Labor or file suit in a federal
court.  The court will decide whether you
should have pursued your claim through the Plan’s claims procedure and who
should pay the court costs and legal fees. 
If you are successful, the court may order the person you have sued to
pay these costs and fees.  If you lose
any court case involving the Plan, the court may order you to pay these costs
and fees.  It may do so, for example, if
it finds that you should have used the Plan’s claims procedure or that your
claim is frivolous.  If you have any
questions about this statement or about your rights under ERISA, you should
contact the nearest area office of the Employee Benefits Security
Administration, U.S. Department of Labor, listed in your telephone directory or
the Division of Technical Assistance and Inquires, Employee Benefits Security
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210.  You may also
obtain certain publications about your rights and responsibilities under ERISA
by calling the publications hotline of the Employee Benefits Security
Administration or by visiting its website (http://www.dol.gov/ebsa/).

 

(g)                                 Whom
to Call for Additional Information

 

If you have any questions, please contact the
Plan Administrator.

 

10

 

Exhibit
A

 

GREENE
COUNTY BANCSHARES, INC.

CHANGE
IN CONTROL PROTECTION PLAN

 

Participation
Agreement

 

WHEREAS, Greene County Bancshares, Inc. (the “Company”) sponsors and maintains the
Greene County Bancshares, Inc. Change in Control Protection Plan (the “Plan”), and has executed this agreement
(the “Participation Agreement”) in order
to offer                                                        
(the “Employee”) the
opportunity to participate in the Plan;

 

WHEREAS, the Employee has received a copy of the Plan
(which also serves as its summary plan description); and

 

WHEREAS, the parties acknowledge that capitalized
terms not defined in this Participation Agreement shall have the meaning
assigned to them in the Plan; and

 

WHEREAS, the Employee understands that participation
in the Plan requires that the Employee agree irrevocably to the terms of the
Plan and the terms set forth below; and

 

WHEREAS, the Employee has had the opportunity to
carefully evaluate this opportunity, and desires to become a “Participant” in
the Plan under the conditions set forth herein.

 

NOW, THEREFORE, the parties hereby AGREE as follows:

 

1.                                       If,
while the Plan is in effect, the Employee incurs a Covered Termination, the
Company shall pay the Employee a Change in Control Benefit equal to 1.99 times
the Employee’s “base amount” within the meaning of Section 280G(b)(3) of the
Code and associated regulations.

 

2.                                       In
consideration of becoming eligible to receive the benefits provided under the
terms and conditions of the Plan, the Employee hereby waives any and all
rights, benefits, and privileges to which the Employee is or would otherwise be
entitled to receive under –

 

(a)                                  any
employment agreement or severance agreement that the Employee has entered into
with the Company or any of its affiliates; and

 

(b)                                 any
plan, program, or arrangement under which the Company or any of its affiliates
provides severance benefits (excluding any retirement plan, stock-based plan,
or other plan that is not a “welfare plan” within the meaning of ERISA).

 

3.                                       The
Employee understands that the waiver set forth in Section 2 above is
irrevocable for so long as this Participation Agreement is in effect, and that
this agreement and the Plan set forth the entire agreement between the parties
with respect to any subject matter covered herein.

 

1

 

4.                                       This
Participation Agreement shall terminate, and the Employee’s status as a “Participant”
in the Plan shall end, on the first to occur of (i) if before a Change in
Control, the Employee’s termination of employment with the Company and its
affiliates, (ii) if after a Change in Control, the Employee’s termination of
employment for a reason other than a “Covered Termination” as defined in
Section 3(b)(i) of the Plan, (iii) the date two years after a Change in
Control, and (iv) if before a Change in Control, the date three months after
the Company provides the Employee with written notice that this Participation
Agreement is being terminated by the Company in its discretion as employer and
Sponsor.

 

5.                                       The
Employee recognizes and agrees that execution of this agreement results in
enrollment and participation in the Plan, agrees to be bound by the terms and
conditions of the Plan and this Participation Agreement, and understands that
this Participation Agreement may not be amended or modified except pursuant to
Section 10(iii) of the Plan.

 

ACCEPTED AND AGREED TO this                       
day of                                  ,
20      .

 

	
  The “Employee”:

  	
  The “Company”:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  A
  Duly Authorized Officer

  
					

 

2

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