Document:

EX-4.29

	 	 	 	 	 

Executive Service Agreement

Protherics Plc

And

Rolf Soderstrom

 

CONTENTS

	 	 	 	 	 	 	 
	CLAUSE	 	 	 	PAGE
	 
	 	 	 	 	 	 
	1.

	 	DEFINITIONS
	 	 	1	 
	2.

	 	TERM OF APPOINTMENT
	 	 	1	 
	3.

	 	DUTIES
	 	 	2	 
	4.

	 	HOLIDAY
	 	 	4	 
	5.

	 	OUTSIDE INTERESTS
	 	 	5	 
	6.

	 	SALARY AND BENEFITS
	 	 	5	 
	7.

	 	EXPENSES
	 	 	7	 
	8.

	 	CONFIDENTIAL INFORMATION
	 	 	7	 
	9.

	 	INVENTIONS AND CREATIVE WORKS
	 	 	9	 
	10.

	 	GARDEN LEAVE
	 	 	10	 
	11.

	 	RESTRICTIONS AFTER TERMINATION
	 	 	10	 
	12.

	 	TERMINATION BY EVENTS OF DEFAULT
	 	 	12	 
	13.

	 	INCAPACITY AND MEDICAL EXAMINATION
	 	 	13	 
	14.

	 	OBLIGATIONS UPON TERMINATION
	 	 	14	 
	15.

	 	RECONSTRUCTION AND AMALGAMATION
	 	 	15	 
	16.

	 	DISCIPLINARY AND GRIEVANCE PROCEDURES
	 	 	15	 
	17.

	 	NOTICES
	 	 	15	 
	18.

	 	ENTIRE AGREEMENT AND PREVIOUS CONTRACTS
	 	 	15	 
	19.

	 	PROPER LAW
	 	 	16	 
	20.

	 	CONSTRUCTION
	 	 	16	 
	21.

	 	THIRD PARTY RIGHTS
	 	 	16	 
	22.

	 	COUNTERPARTS
	 	 	16	 

 

 

THIS
AGREEMENT is made on                      2007

BETWEEN:

	(1)	 	PROTHERICS PLC (No. 2459087) whose registered office is at The Heath Business and Technical
Park, Runcorn, Cheshire WA7 4QF (the “Company”);
	 
	(2)	 	ROLF SODERSTROM of 6 Home Farm Close, East Hendred, Oxfordshire, OX1 8LR (the “Executive”).

THE PARTIES AGREE AS FOLLOWS:

	1.	 	DEFINITIONS
	 
	 	 	In this agreement (unless the context requires otherwise):
	 
	 	 	“Board” means the board of directors from time to time of the Company (including any
committee of the board duly appointed by it);
	 
	 	 	“Group Company” means the Company or any subsidiary undertaking (as defined in section 258
of the Companies Act 1985) or associated company (as defined in sections 416 et seq. of the
Income and Corporation Taxes Act 1988) of the Company;
	 
	 	 	“HMRC” means Her Majesty’s Revenue & Customs and, where relevant, any predecessor body
which carried out its (or part of its) functions; and
	 
	 	 	“UK Listing Authority” means the Financial Services Authority in its capacity as the
competent authority for the purposes of part VI of the Financial Services and Markets Act
2000.

	2.	 	TERM OF APPOINTMENT
	 
	2.1	 	The Company shall employ the Executive and the Executive shall serve the Company on the
terms of this agreement (the “Appointment”). The Appointment shall commence on 2 October 2007
and shall continue until terminated:

	 	(a)	 	as provided for elsewhere in this agreement;
	 
	 	(b)	 	by either party giving to the other not less than 12 months’ prior written notice; or
	 
	 	(c)	 	unless otherwise agreed, automatically on the Executive’s 65th
birthday being the contractual retirement date.

	2.2	 	Your period of continuous employment will begin on 2 October 2007.
	 
	2.3	 	The Executive represents and warrants to the Company that by entering into this agreement or
performing any of his obligations under it he will not breach any court order or any
obligations to any third party (whether express or implied) and undertakes to indemnify the
Company against any claims, costs, damages, liabilities or expenses which the Company may
incur as a result of any claim that he is in breach of any such obligations.
	 
	2.4	 	The Executive will be provided with a copy of the Company’s staff handbook and details of any
other rules and procedures. These do not form part of the Executive’s contract of employment
with the Company. To the extent that there is a conflict between the terms

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	 	 	of this agreement and any handbook, policies or procedures, then the terms of this
agreement shall prevail.

	2.5	 	Notwithstanding clause 2.1(b) above where notice is served to terminate the Appointment
(whether by the Company or the Executive) the Company may (at its sole and absolute
discretion) terminate the Appointment at any time and with immediate effect by:

	 	(a)	 	making the Executive a payment in lieu of the notice period (or, if
applicable, the remainder of the notice period) equivalent to the proportion of Salary
(at the date of termination) for the notice period (or remainder of the notice
period); and
	 
	 	(b)	 	(at the Company’s option) either:

	 	(i)	 	making the Executive a payment equivalent to the cost to the
Company of providing the Executive with his contractual benefits (which, for
the avoidance of doubt, does not include any benefits under the Pension Scheme)
for the notice period (or remainder of the notice period); or
	 
	 	(ii)	 	continuing to provide the Executive with his contractual
benefits until the date on which notice, if it had been served, would have
expired or (at the Company’s option) paying him compensation in respect of any
of those benefits equivalent to the cost to the Company of providing the
benefit over the relevant period; and

	 	(c)	 	making a payment (at the Company’s option) either to the Executive or (subject
to HMRC limits) to the trustees of the Pension Scheme of a sum equivalent to the
contributions that the Company would have made to the Pension Scheme in respect of the
Executive for the notice period (or, if applicable, the remainder of the notice
period).

	2.6	 	The Company may pay any sums due under clauses 2.5(a) and (b)(i) and (where the
payment is being made direct to the Executive) under clause 2.5(c) as one lump sum or in
instalments over the period until the date on which notice, if it had been served, would
have expired. Such payments will be subject to income tax and national insurance
contributions. The Executive will also be liable for any income tax and national insurance
contributions on any benefits continued under clause 2.5(b)(ii).
	 
	2.7	 	For the avoidance of doubt:

	 	(a)	 	if the Company terminates the Executive’s employment other than in accordance
with its rights under this agreement any entitlement to damages for breach of contract
will be assessed on the normal common law principles (including the Executive’s
obligation to mitigate his loss); and
	 
	 	(b)	 	the right of the Company to make a payment in lieu of notice does not give
rise to any right for the Executive to receive such a payment.

	3.	 	DUTIES

	3.1	 	The Executive shall perform the duties of Chief Financial Officer.

	 
	3.2	 	The Executive shall:

	 	(a)	 	devote the whole of his working time and attention to the duties assigned to him;
	 
	 	(b)	 	faithfully and diligently serve the Company (and all Group Companies);

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	 	(c)	 	use his best endeavours to promote and protect the interests of the Company (and all Group
Companies);
	 
	 	(d)	 	obey all reasonable and lawful directions given to him by or under the authority of the
Board;
	 
	 	(e)	 	perform services for and (if the Company so requests) hold offices in such Group Companies
as the Board may from time to time require without additional remuneration (except as
otherwise agreed) provided always that the Executive shall (in the event that he holds any
such office).

	 	(i)	 	hold any such office subject to the articles of association of the relevant
Group Company as amended from time to time;
	 
	 	(ii)	 	do such things as are necessary to ensure that he and the relevant Group Company
comply with the Combined Code on Corporate Governance of the UK Listing Authority (as
amended from time to time) including without limitation retiring by rotation from his
office and seeking re-election when requested to do so by the Company or in accordance
with the articles of the relevant Group Company;
	 
	 	(iii)	 	comply with all requirements, recommendations or regulations, as amended from
time to time, of the UK Listing Authority (including the Model Code for transactions in
securities by directors and certain senior executives of listed companies, a copy of
which is available from the Company Secretary), the FSA and all regulatory authorities
relevant to the any Group Company and any code of practice issued by the Company (as
amended from time to time) relating to dealing in the securities of any Group Company;
	 
	 	(iv)	 	comply with the requirements under both legislation and regulation as to the
disclosure of inside information;
	 
	 	(v)	 	abide by his fiduciary duties to any Group Company of which he is a director;
	 
	 	(vi)	 	(if the Board so requests) immediately resign (without any claim for
compensation) from any office held in any Group Company and the Executive hereby
irrevocably appoints the Company to be his attorney to execute and do any such
instrument or thing and generally to use his name for the purpose of giving the Company
or its nominee the full benefit of this clause;
	 
	 	(vii)	 	shall not do anything that would cause him to be disqualified from holding
any such office;
	 
	 	(viii)	 	shall not (without the prior written approval of the Board) resign
from any office which he holds in the Company or any Group Company; and
	 
	 	(ix)	 	acknowledges that the termination of any such office which he holds in the
Company or any Group Company (including failure to be re-elected to the office
following retirement by rotation) shall not terminate the Appointment which shall
continue on the basis that the Executive is an employee only and, for the avoidance of
doubt, the Executive shall have no claims in respect of such cessation of office;

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	 	(f)	 	work at such places in the United Kingdom as the Company may require, it being
envisaged that the Executive’s normal place of work shall be the Company’s London
office;
	 
	 	(g)	 	travel to such places (whether in or outside the United Kingdom) by such means
and on such occasions as the Company may from time to time require;
	 
	 	(h)	 	make such reports to the Board or to anyone nominated by the Chief Executive
of the Company on any matters concerning the affairs of the Company or any Group
Company as are reasonably required;
	 
	 	(i)	 	comply with any code of practice issued by the Company (as amended from time
to time) relating to transactions in securities and with all requirements of the UK
Listing Authority and of all regulatory authorities relevant to the Company and any
Group Companies with which the Executive is concerned;
	 
	 	(j)	 	consent to the Company monitoring and/or recording any use that he makes of
its telecommunication or computer systems and will comply with any policies that it
may issue from time to time concerning the use of such systems;
	 
	 	(k)	 	not enter into, on behalf of any Group Company, any arrangement which is
outside its normal course of business, is outside his normal duties or contains
unusual or onerous terms; and
	 
	 	(l)	 	report the wrongdoing (including acts of misconduct, dishonesty, breaches of
contract, fiduciary duty, company rules or the rules of the relevant regulatory
bodies) whether committed, contemplated or discussed by any other director or member
of staff of the Company and any Group Company of which you were aware to the Board
immediately.

	3.3	 	The Executive shall work such hours as are necessary for the proper performance of his
duties.
	 
	3.4	 	Regulation 4(1) of the Working Time Regulations 1998 (the “Regulations”) limits the
average working week (calculated in accordance with the Regulations) of each worker to a
maximum of 48 hours. The Executive agrees to opt out of this part of the Regulations.
Should the Executive wish to terminate this opt-out then he may do so by giving the Company
not less than three months’ written notice. The Executive will comply with any policy of
the Company in force from time to time concerning the maintenance of records of the hours
that he works.

	4.	 	HOLIDAY

	4.1	 	The Executive shall be entitled to 25 working days’ holiday (in addition to the usual
English public holidays) in each complete holiday year worked (which is the period of 12
months commencing on 1 January each year) at full salary (provided always that the holiday
entitlement shall accrue on a pro rata basis whereby the Executive shall be entitled to
1/260th of the holiday entitlement in any holiday year for each full working day
of the Appointment). Holiday will be taken at such time or times as may be approved in
advance by the Company. Holidays not taken in any holiday year cannot be carried over to a
subsequent holiday year, without the consent of the Head of Human Resources and Training.
	 
	4.2	 	Upon termination of the Appointment:

	 	(a)	 	the Executive shall be entitled to receive payment in lieu of any holiday
entitlement which has accrued prior to the date of termination but is unused

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	 	 	 	(provided that such termination is not pursuant to clause 12 of this agreement nor
follows the Executive’s resignation where the Executive fails to serve his requisite
period of notice pursuant to clause 2.1(b)); or
	 
	 	(b)	 	the Company shall be entitled to make a deduction from the Executive’s
remuneration in respect of holidays taken in excess of the entitlement accrued prior
to the date of termination.

	4.3	 	If either party serves notice to terminate the Appointment the Company may require the
Executive to take any accrued but unused holiday entitlement during the notice period
(whether or not the Executive is on Garden Leave as defined in clause 10 of this agreement)
and the Executive’s holiday entitlement shall not accrue for any period during which the
Executive is on Garden Leave.

	5.	 	OUTSIDE INTERESTS
	 
	5.1	 	The Executive shall not (save as a representative of the Company or with the prior written
approval of the Chief Executive or the Chairman of the Company) whether directly or
indirectly, paid or unpaid, be engaged or concerned in the conduct of, be or become an
employee, agent, partner, consultant or director of or assist or have any financial interest
in any other actual or prospective business or profession without the written approval of the
Company.
	 
	5.2	 	The Executive shall be permitted to hold shares or securities of a company any of whose
 shares or securities are quoted or dealt in on any recognised investment exchange provided
that:

	 	(a)	 	any such holding shall not exceed five per cent. of the issued share capital
of the company concerned and is held by way of bona fide investment only
(“Investment”) and
	 
	 	(b)	 	he complies with all applicable rules, laws and regulations relating to
dealings in shares, debentures and other securities (including but not limited to the
Criminal Justice Act 1993, the regulations of the UK Listing Authority, the Model Code
for transactions in securities by directors of listed companies and certain others and
any requirement or code of practice issued by the Company including but not limited to
the Company’s Share Dealing Code) as amended from time to time. The Executive must
make himself aware of these rules, laws and regulations.

	5.3	 	The Executive shall disclose to the Board any matters relating to his spouse (or anyone
living as such), their children, stepchildren, parents or any trust or firm whose affairs or
actions he controls which, if they applied to the Executive, would contravene clauses 5.1 or
5.2 to the extent that he has actual knowledge of such matters.

	6.	 	SALARY AND BENEFITS
	 
	6.1	 	The Executive shall be paid a basic salary of £220,000 per annum or such other rate as may
be agreed from time to time (the “Salary”) subject to such deductions are required by law.
The Executive shall not be entitled to any other remuneration by reason of his holding any
office in any Group Company. The Salary shall be payable by bank credit transfer in equal
monthly instalments in arrears on or about the last working day of each calendar month to
such bank account as the Executive may nominate.
	 
	6.2	 	The Salary shall be reviewed by the Board on or about 1 April each year. There is no
obligation to award an increase. There will be no review of the Salary after notice of
termination of employment has been given in accordance with clause 2.1(b) or in the

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	 	 	event that the Executive is in receipt of benefits under the Company’s permanent health
insurance policy.

	6.3	 	The Executive may participate in:

	 	(a)	 	such share-based and other incentive schemes as may be established by the
Company from time to time for its senior management, subject to the rules of the
schemes as amended from time to time provided, however, that the Executive hereby
agrees that following the termination of the Appointment for whatever reason he shall
not have any claim against the Company in respect of any rights he may have acquired
under the schemes save as provided solely by the terms of such schemes. Full details
of the current schemes are available from the Company Secretary;
	 
	 	(b)	 	such pension scheme as may be established or nominated by the Company from
time to time (the “Pension Scheme”) subject to the rules of the Pension Scheme and
HMRC limits, in both cases as amended from time to time, provided that if the
Executive should at any time during the Appointment cease to be a member of the
Pension Scheme for whatever reason he will not be entitled to rejoin the Pension
Scheme without the prior written consent of the Board. The Company will, subject to
the rules of the Pension Scheme and HMRC limits in both cases as amended from time to
time, contribute to the Pension Scheme an amount per annum equivalent to 20 per cent
of the Executive’s Salary provided that the Executive shall promptly pay all
contributions due from him in respect of the Pension Scheme. Full details of the
Company’s current pension scheme are available from the Head of Human Resources and
Training. A contracting-out certificate is in force in respect of the Executive’s
employment; and
	 
	 	(c)	 	the Company’s private medical insurance scheme and the Company’s life
assurance scheme subject to the Executive’s health not being such as to prevent
inclusion in such schemes on terms and at a premium which the Company considers
reasonable, the rules of the schemes and any relevant rules or insurance policy of the
private medical cover provider or the life assurance provider as amended from time to
time. Full details of the scheme are available from the Head of Human Resources and
Training. The Company may change the private medical cover provider or the life
assurance provider, the level of cover provided and/or terminate the schemes on
reasonable notice to the Executive.

	6.4	 	The Board may (at its absolute discretion) award the Executive bonus payments (and may
suspend or discontinue such payments at any time whether generally or in relation to the
Executive only) of such amounts as the Board may determine from time to time. If the Executive
receives any bonus payment then the Company is not obliged to make any further bonus payments
and any bonus payment will not be part of the contractual remuneration or fixed salary
hereunder. If the Executive’s employment terminates (or notice is served to terminate his
employment) (for whatever reason) he will not be entitled to receive any bonus payments in
respect of any period.
	 
	6.5	 	The Company may deduct from any sums owed to the Executive all sums which he from
time to time owes the Company or any Group Company
	 
	6.6	 	Subject to clauses 12 and 13.4, the Executive may participate in any permanent health
insurance scheme with a third party insurer provided by the Company subject to the terms
and conditions of the scheme as amended from time to time, the rules of the relevant
insurance policy as amended from time to time and his satisfying the requirements of the
scheme insurers. The Executive’s participation in such a scheme shall be on the basis
that:

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	 	(a)	 	the Company shall not be obliged to make any payment to the Executive unless it
has received payment from the scheme insurers for that purpose and, for the
avoidance of doubt, no other sums will be due to the Executive from the Company;
	 
	 	(b)	 	the Executive’s health is not such that the Company is unable to obtain cover
or to obtain cover on terms and at a premium which the Company considers reasonable;
	 
	 	(c)	 	the Company may change the provider of such insurance and/or the level of
cover provided and/or amend the scheme in any other way and/or terminate the benefit
of such insurance on reasonable notice to the Executive;
	 
	 	(d)	 	in the event that the Executive wishes to make a claim under the said policy
of insurance the Company will use reasonable endeavours to:

	 	(i)	 	obtain from its insurers any forms required to initiate the Executive’s claim;
	 
	 	(ii)	 	provide the Executive with such forms in order to enable him to
make a claim; and
	 
	 	(iii)	 	liaise between the Executive and its insurers in order to
assist with the processing of the Executive’s claim but the Company will
neither be liable to the Executive for any failure or refusal on the part of
the scheme insurer to provide any benefits under any such scheme nor be
required to attempt to persuade the insurers to provide any such benefits to
the Executive (whether by means of threatening or issuing proceedings against
the insurer or otherwise);

	 	(e)	 	without prejudice to the Executive’s rights under clause 13.1 of this
agreement, the Company may by notice and with immediate effect discontinue payment (in
whole or in part) of the Salary and the provision of any benefit in respect of any
period during which the Executive shall be in receipt of any benefits under the scheme
and, for the avoidance of doubt, where the Company has paid the Executive his full
Salary and provided any of his contractual benefits in respect of any period that is
subsequently covered by the provision of any benefit under the scheme (the “Waiting
Period”), the Company may deduct from any sums owed to the Executive the amount by
which the full Salary paid by the Company plus the value of any of the Executive’s
contractual benefits during the Waiting Period exceeds the amount of benefit received
from the scheme insurers in respect of the same period; and
	 
	 	(f)	 	If the Executive is receiving benefits under any such scheme then he will, if
requested by the Company, immediately resign from any office held in the Company or any
Group Company.

	7.	 	EXPENSES
	 
	 	 	The Company shall reimburse the Executive for all reasonable travel, accommodation and
other expenses properly authorised by the Company and wholly, exclusively and necessarily
incurred in or about the performance of his duties hereunder, which expenses shall be
evidenced in such manner as the Company may specify from time to time.

	8.	 	CONFIDENTIAL INFORMATION
	 
	8.1	 	Subject to clause 8.2 below and without prejudice to his common law duties, the
Executive shall not (save in the proper course of his duties, as required by law or as

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	 	 	authorised by the Company) use or communicate to any person (and shall use his best
endeavours to prevent the use or communication of) any trade or business secrets or
confidential information of or relating to the Company or any Group Company (including but
not limited to details of clients or customers (including client or customer lists and
requirements), consultants, suppliers, designs, products, product applications, trade
arrangements, terms of business, operating systems, sales information, marketing
information or strategies, manufacturing processes, disputes, commission or bonus
arrangements, pricing and fee arrangements, know-how, formulae, inventions, dealings,
negotiations, transactions, employees or officers, and structures, business plans,
financial information, inventions, research and development activities, personal or
sensitive personal data and anything marked or treated as confidential in each case whether
actual or potential) which he creates, develops, receives or obtains while in the service
of the Company or any Group Company. This restriction shall continue to apply after the
termination of the Appointment howsoever arising without limit in time.

	8.2	 	Reference to confidential information in this clause 8 shall not include: information which
is in the public domain at the time of any disclosure of such information by the Executive
(other than information in the public domain for so long as the Executive is in a position to
use such information more readily than others who have not worked for the Company);
information which comes into the public domain after its disclosure otherwise than by reason
of a breach of this agreement; information which was already demonstrably known to the
receiving party at the date of disclosure and had not been received in confidence from any
Group Company; or information which is required to be disclosed as a matter of law.
	 
	8.3	 	During the Appointment the Executive shall not make (other than for the benefit of the
Company) any record (whether on paper, computer memory, disc or otherwise) relating to any
matter within the scope of the business of the Company or any Group Company or their clients
or customers and suppliers or concerning its or their dealings or affairs or (either during
the Appointment or afterwards) use such records (or allow them to be used) other than for the
benefit of the Company or the relevant Group Company. All such records (and any copies of
them) shall belong to the Company or the relevant Group Company and shall be handed over to
the Chief Executive Officer of the Company by the Executive on the termination of the
Appointment or at any time during the Appointment at the request of the Board.
	 
	8.4	 	Nothing in this clause shall prevent the Executive from disclosing information which he is
entitled to disclose under the Public Interest Disclosure Act 1998 provided that the
disclosure is made in the appropriate way to an appropriate person having regard to the
provisions of the Act and he has first fully complied with the Company’s procedures relating
to such disclosures.
	 
	8.5	 	By signing this contract the Executive agrees that the Company may use Information about his
which he or any referees may provide or which it may acquire during the course of his
employment and the Executive consents to the Company and other Group Companies holding and
processing the following data relating to him:

	 	(a)	 	personal data, for legal, administrative and management purposes; and
	 
	 	(b)	 	“sensitive personal data” (as defined in the Data Protection Act 1998) including:

	 	(i)	 	his health records and any medical reports given to or obtained
by the Company, for monitoring sick leave and taking decisions as to his fitness
to work;
	 
	 	(ii)	 	his racial or ethnic origin (in order to monitor compliance with
the Race Relations Act 1976);

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	 	(iii)	 	any information relating to criminal proceedings in which he has been
involved for compliance with the Company’s legal or regulatory requirements,
for insurance purposes/ and in relation to its obligations to third
parties.

	8.6	 	The Company may make such information available to Group Companies those who provide
products or services to the company and Group Companies (such as advisers and payroll
administrators), regulatory authorities, potential or future employers, governmental or
quasi-governmental organisations and potential purchasers of the Company or the business in
which the Executive works.
	 
	8.7	 	The Executive consents to the transfer of all or any part of the information that the
Company holds relating to him to locations outside the European Economic Area to any Group
Companies, clients and customers and other business contacts for the purpose of furthering
the Company’s business interests.

	9.	 	INVENTIONS AND CREATIVE WORKS
	 
	9.1	 	For the purposes of this clause “Intellectual Property Rights” means any and all patents,
trade marks, service marks, rights in designs, get-up, trade, business or domain names,
goodwill associated with the foregoing, copyright (including rights in computer software and
databases), topography rights (in each case whether registered or not and any applications to
register or rights to apply for the registration of any of the foregoing), rights in
inventions, knowhow, trade secrets and other confidential information, rights in databases
and all other intellectual property rights or forms of protection of a similar nature or
having equivalent or similar effect to any of these which may now or in the future subsist
anywhere in the world for the full period thereof and all extensions or removals thereof.
	 
	9.2	 	The Executive acknowledges that because of the nature of his duties, and the particular
responsibilities arising as a result of such duties which he owes to the Company and the
Group Companies, he has a special obligation to further the interests of the Company and the
Group Companies. In particular, the Executive’s duties will include reviewing the products
and services of the Company and Group Companies with a view to identifying and implementing
potential improvements.
	 
	9.3	 	The Executive shall promptly disclose to the Company any idea, invention or work which is
relevant to (or capable of use in) the business of the Company or any Group Company now or
in the future made by him in the course of his performance of his duties, whether alone or
with any other person. The Executive acknowledges that all Intellectual Property Rights
subsisting (or which may in the future subsist) in any such ideas, inventions or works or
which in any other way arise from his performance of his duties, whether alone or with any
other person, including without limitation such Intellectual Property Rights as subsist in
any record of the type referred to in clause 8.3 or the contents or subject matter thereof,
will, on creation, vest in and be the exclusive property of the Company and if they do not
do so he shall assign them to the Company (upon its request and at its cost) and, to the
extent permitted by law, does hereby so assign them. The Executive hereby irrevocably
waives any “Moral Rights” which he may have in any such ideas, inventions or works under
chapter IV of part I of the Copyright, Designs and Patents Act
1988.
	 
	9.4	 	The Executive hereby irrevocably appoints the Company to be his attorney in his name
and on his behalf to execute and do any such instrument or thing and generally to use his
name for the purpose of giving to the Company or its nominee the full benefit of this
clause and acknowledges in favour of any third party that a certificate in writing signed
by

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	 	 	any director or secretary of the Company that any instrument or act falls within the
authority hereby conferred shall be conclusive evidence that such is the case.

	10.	 	GARDEN LEAVE
	 
	10.1	 	Despite any other provision in this agreement the Company is under no obligation to provide
the Executive with work and may at any time require the Executive to perform no duties
whatsoever, or any such duties as it may reasonably require and may exclude the Executive
from any premises of any Group Company and, for the purposes of this agreement, “Garden
Leave” means any period during which the Company exercises its rights under this sub-clause
10.1.
	 
	10.2	 	During any period of Garden Leave the Executive shall:

	 	(a)	 	remain an employee of the Company and be bound by the terms of this agreement;
	 
	 	(b)	 	not (except as a representative of the Company or with the prior written
approval of the Board) whether directly or indirectly, paid or unpaid be engaged or
concerned in the conduct of any other actual or prospective business or profession or
be or become an employee, agent, partner, consultant or director of any other company
or firm or assist or have any financial interest in any other such business or
profession;
	 
	 	(c)	 	not have any contact or communication (save for any purely personal contact)
with any client or customer, employee, officer, director, agent or consultant of any
Group Company save for any member of the Board or save with the prior written consent
of the Board;
	 
	 	(d)	 	keep the Company informed of his whereabouts so that he can be called upon to
perform any appropriate duties as required by the Company except during any periods
taken as holiday;
	 
	 	(e)	 	(if the Company so requests) resign from any office in any Group Company;
	 
	 	(f)	 	continue to receive the Salary and contractual benefits in the usual way; and
	 
	 	(g)	 	(if the Company so requests) return to the Company any property belonging to
the Company.

	11.	 	RESTRICTIONS AFTER TERMINATION
	 
	11.1	 	The Executive acknowledges that because of the nature of his duties and the particular
responsibilities arising as a result of such duties owed to the Company and each Group
Company he has knowledge of trade secrets and confidential business information (including
details of customers) and is therefore in a position to harm their legitimate business
interests if he were to make use of such trade secrets or confidential business information
for his own purposes or the purposes of another. Accordingly, having regard to the above, the
Executive accepts that the restrictions in this clause are reasonable.
	 
	11.2	 	The Executive covenants to the Company (for itself and as trustee for each Group Company)
that in order to protect the confidential information, trade secrets and business connections
of the Company and each Group Company he shall not for the following periods (less any period
or periods spent on Garden Leave immediately prior to Termination) after Termination howsoever
arising (but excluding repudiatory breach of this agreement by the Company) save with the
prior written consent of the Board directly or indirectly, either alone or jointly with or on
behalf of any third party and whether on his

-10-

 

	 	 	own account or as principal, partner, shareholder, director, employee, consultant or in any
other capacity whatsoever:

	 	(a)	 	for six months following Termination in the Relevant Territory and in
competition with the Company or any Relevant Group Company engage, assist or be
interested in any undertaking which provides Services or Products;
	 
	 	(b)	 	for six months following Termination and in competition with the Company or
any Relevant Group Company solicit or interfere with or endeavour to entice away from
the Company or any Relevant Group Company any Client in relation to the supply of
Services or Products;
	 
	 	(c)	 	for six months following Termination solicit the employment or engagement of
any Key Employee in a business which is in competition with the Company or any
Relevant Group Company (whether or not such person would breach their contract of
employment or engagement by reason of leaving the service of the business in which
they work); and
	 
	 	(d)	 	at any time following Termination represent himself as being in any way
connected with or interested in the business of the Company or any Relevant Group
Company.

	11.3	 	Each of the obligations in this clause is an entire, separate and independent restriction on
the Executive, despite the fact that they may be contained in the same phrase and if any part
is found to be invalid or unenforceable the remainder will remain valid and enforceable.
	 
	11.4	 	While the restrictions are considered by the parties to be fair and reasonable in the
circumstances, it is agreed that if any of them should be judged to be void or ineffective
for any reason, but would be treated as valid and effective if part of the wording was
deleted, they shall apply with such modifications as necessary to make them valid and
effective.
	 
	11.5	 	The Executive will (at the request and cost of the Company) enter into a direct agreement
with any Group Company under which he will accept restrictions corresponding to the
restrictions contained in this clause (or such as will be appropriate in the circumstances)
in relation to such Group Company
	 
	11.6	 	The provisions of this clause will not prevent the Executive from holding an Investment.
	 
	11.7	 	If the Executive is offered employment or a consultancy arrangement or a partnership or any
other engagement with a third party at any time during the Appointment or in the six months
following Termination (howsoever arising), he will supply that third party with details
concerning the restrictions in this clause 11 provided that he shall not be permitted to
provide that third party with a copy of this agreement without the prior written approval of
the Board
	 
	11.8	 	For the purposes of this clause

	 	(a)	 	“Client” means any person, firm, company or entity which was a client of the
Company or any Relevant Group Company at any time during the 12 months’ prior to
Termination and with which the Executive was materially concerned or had personal
contact at any time during the said period of 12 months,
	 
	 	(b)	 	“Key Employee” means any person who immediately prior to Termination was a
senior manager or a director of the Company or any Relevant Group Company

-11-

 

	 	 	 	with whom the Executive worked closely at any time during the period of 12 months
prior to Termination;

	 	(c)	 	“Relevant Group Company” means any Group Company (and, if applicable, its
predecessors in business) for which the Executive performed services to a material
degree or in which he held office at any time during the 12 months prior to
Termination;
	 
	 	(d)	 	“Relevant Territory” means the area constituting the market of the Company and
any Relevant Group Company for Services or Products in the period of 12 months prior
to Termination and with which area the Executive was materially concerned at any time
during the said period of 12 months;
	 
	 	(e)	 	“Services” and “Products” means services and/or products concerning the
research, development and/or production of:

	 	(i)	 	polyclonal antibody products;
	 
	 	(ii)	 	immunotherapeutic products similar to or the same as those
produced, created or conceived by any Relevant Group Company; and/or

	 	 	 	such other services and/or products which are the same or similar to those supplied
by any Relevant Group Company and with the supply of which the Executive was
materially concerned at any time in the 12-month period prior to Termination.
	 
	 	(f)	 	“Termination” means the date of termination of the Appointment.

	12.	 	TERMINATION BY EVENTS OF DEFAULT
	 
	12.1	 	The Company may terminate the Appointment by notice but with immediate effect if the
Executive:

	 	(a)	 	is guilty of gross misconduct or commits any serious or (after warning)
repeated or continued material breach of his obligations to the Company (other than by
reason of absence due to illness or injury);
	 
	 	(b)	 	becomes bankrupt or makes any arrangement or composition with or for the
benefit of his creditors;
	 
	 	(c)	 	is convicted of any criminal offence (other than an offence under any road
traffic legislation in the United Kingdom or elsewhere for which a fine or
non-custodial penalty is imposed) or any offence under any regulation or legislation
relating to insider dealing;
	 
	 	(d)	 	is disqualified from holding any office which he is required to hold in any
Group Company or resigns from such office without the prior written approval of the
Company;
	 
	 	(e)	 	becomes of unsound mind or a patient under any statute relating to mental
health;
	 
	 	(f)	 	becomes addicted to alcohol or drugs to an extent which in the reasonable
opinion of the Board is likely to affect the proper performance of his duties
hereunder;

-12-

 

	 	(g)	 	does anything (in the course of his duties or otherwise) which in the reasonable
opinion of the Board does actually or might reasonably be expected to bring himself
or any Group Company into disrepute or prejudice the interests of any Group Company;
	 
	 	(h)	 	acts in a way which is in the reasonable opinion of the Board materially
adverse to the interests of any Group Company;
	 
	 	(i)	 	is prevented by illness, injury or other incapacity from fully performing his
obligations to the Company for an aggregate of 180 days in any period of 12 months
provided that the Company shall not terminate the Appointment under this clause
12.1(i) solely on grounds of the Executive’s illness, injury or incapacity where to do
so would cause the Executive to forfeit existing or prospective benefits under clause
6.6; or
	 
	 	(j)	 	is guilty of a serious breach of the rules and regulations as amended from
time to time of the UK Listing Authority (including the Model Code for transactions in
securities by directors of listed companies), the Financial Services Authority or any
regulatory authority relevant to the business of any Group Company or any compliance
manual or code of practice issued by the Company (as amended from time to time).

	12.2	 	Any delay by the Company in exercising such right to terminate shall not constitute a waiver
thereof.

	13.	 	INCAPACITY AND MEDICAL EXAMINATION
	 
	13.1	 	Provided the Executive complies with the Company’s rules on notification and evidence of
absence due to illness or injury (as amended from time to time) he shall be paid the Salary
during any absence from work due to illness or injury for an aggregate of up to 180 working
days in any period of 12 months. Such payments shall be reduced by the amount of any social
security, insurance or other benefit to which he is entitled as a result of his incapacity (or
to which he would have been entitled if he had applied for such benefit). Thereafter, the
Company may by notice and with immediate effect (or from a future date specified in the
notice) discontinue payment (in whole or part) of the Salary and provision of any benefits
until such incapacity shall cease or (whether or not the Salary and benefits shall have been
discontinued as aforesaid) terminate the Appointment.
	 
	13.2	 	If the Executive is away from work due to illness or injury for a consecutive period of 45
working days or the Company reasonably envisages that he will be away for such a period the
Company may (without prejudice to the provisions of clause 12 of this agreement) appoint
another person or persons to perform the Executive’s duties until he returns to work.
	 
	13.3	 	The Company may require the Executive to undergo examinations by medical advisers appointed
or approved by the Company and the Executive authorises such advisers to disclose to the
Company the results of such examinations and to discuss with it any matter arising from such
examinations that may affect the Executive’s performance of his duties.
	 
	13.4	 	Subject to the provisions of clause 12.1(i) above, the Company may terminate the Appointment
by giving the notice specified in clause 2 or under clause 12.1 at any time, even if such
termination results in the Executive losing any existing or prospective benefits under clause
13.1 or clause 6.6 of this agreement.
	 
	13.5	 	If the Executive is unable to perform his duties under this agreement as a result of ill
health, accident or injury caused by actionable negligence, nuisance or breach of any

-13-

 

	 	 	statutory duty on the part of any third party in respect of which damages may be
recoverable the Executive will immediately inform the Company of this fact and all relevant
particulars. The Executive may (if requested to do so by the Company) pursue a claim
against the third party for damages and will notify the Company of the progress of the
claim and any settlement, award or judgment. The Executive will pay the Company that part
of any damages or compensation recovered by him which relates to loss of earnings for the
period during which he was paid by the Company but unable to perform his duties under this
agreement less any costs borne by him in connection with the recovery of the damages or
compensation provided, however, that the payment to the Company will not exceed the total
amount paid to him by the Company in respect of the relevant period.

	14.	 	OBLIGATIONS UPON TERMINATION
	 
	14.1	 	Upon whichever is the first to occur of termination of the Appointment howsoever arising or
the Company sending the Executive on Garden Leave the Executive shall (if the Board so
requests):

	 	(a)	 	immediately resign without claim for compensation from any offices held in the
Company or any Group Company and membership of any organisation and any Office in any
other company acquired by reason of or in connection with the Appointment and from any
position which he holds as a trustee in relation to the business of any Group Company
and the Executive hereby irrevocably appoints the Company to be his attorney in his
name and on his behalf to execute any documents and to do any things necessary or
requisite to give effect to this clause;
	 
	 	(b)	 	deliver to the Board all documents (including, but not limited to,
correspondence, lists of clients or customers, plans, drawings, accounts and other
documents of whatsoever nature and all copies thereof, whether on paper, computer
memory or otherwise) made, compiled or acquired by him during the Appointment and
relating to the business, finances or affairs of the Company or any Group Company or
its or their clients and any other property of any Group Company which is in his
possession, custody, care or control and, if so requested by the Company, he shall
send to the Company Secretary a signed statement confirming that he has complied with
his obligations under this sub-clause 14.1(b);
	 
	 	(c)	 	irretrievably delete any information relating to the business of the Company
or any Group Company stored on any magnetic or optical disc or memory and all matter
derived therefrom which is in his possession, custody, care or control outside the
premises of the Company and shall produce such evidence of compliance with this
sub-clause as the Company may require; and
	 
	 	(d)	 	transfer (without payment) to the Company (or as it may direct) any qualifying
or nominee shareholdings which he holds in connection with the Appointment and the
Executive hereby irrevocably appoints the Company to be his attorney to execute such
transfers on his behalf provided that, for the avoidance of doubt, “qualifying
shareholdings” and/or “nominee shareholdings” for these purposes shall not include any
shares or share options held by the Executive pursuant to any share option or other
share-based incentive scheme of the Company.

	14.2	 	Upon termination of the Appointment howsoever arising the Executive shall have no rights as
a result of this agreement (or any alleged breach of it) to any compensation under or in
respect of any share option, bonus or long-term incentive plans in which he may participate
or have received grants or allocations at or before the date the Appointment terminates. Any
rights which he may have under such schemes shall be exclusively governed by the rules of
such schemes.

-14-

 

	15.	 	RECONSTRUCTION AND AMALGAMATION
	 
	 	 	If the Executive’s employment is terminated at any time in connection with any
reconstruction or amalgamation of the Company or any Group Company whether by winding up or
otherwise and he receives an offer of employment on terms which (considered in their
entirety) are no less favourable to any material extent than the terms of this agreement
from an undertaking involved in or resulting from such reconstruction or amalgamation he
shall have no claim whatsoever against the Company or any such undertaking arising out of
or connected with such termination.

	16.	 	DISCIPLINARY AND GRIEVANCE PROCEDURES
	 
	16.1	 	The terms of any document containing the Company’s disciplinary rules and procedures and
grievance and appeals procedures published from time to time can be obtained from the Human
Resources Function.
	 
	16.2	 	The Company may at any time and upon notice from the Board suspend the Executive for a
period of up to four weeks for the purposes of investigating any allegation of misconduct or
neglect against him and during this period he will continue to receive his salary and all
contractual benefits but will not (except with the prior written approval of the Board)
attend any premises of or contact any employee (other than any director) or client or
customer of any Group Company.

	17.	 	NOTICES
	 
	 	 	Any notice to be given hereunder shall be in writing. Notices may be given by either party
by personal delivery or post or by fax addressed to the other party at (in the case of the
Company) its registered office for the time being and (in the case of the Executive) his
last known address. Any such notice given by letter or fax shall be deemed to have been
served at the time at which the notice was delivered personally or received or (if sent by
post) would be delivered in the ordinary course of post.

	18.	 	ENTIRE AGREEMENT AND PREVIOUS CONTRACTS
	 
	 	 	Each party on behalf of itself and (in the case of the Company, as agent for the Group
Companies) acknowledges and agrees with the other party (the Company acting on behalf of
itself and as agent for each Group Company) that:

	 	(a)	 	this agreement constitutes the entire and only agreement between the
Executive and any Group Company relating to his employment with the Company;
	 
	 	(b)	 	neither the Executive nor the Company nor any Group Company has been induced
to enter into this agreement in reliance upon, nor has any such party been given, any
warranty, representation, statement, assurance, covenant, agreement, undertaking,
indemnity or commitment of any nature whatsoever other than as are expressly set out
in this agreement and, to the extent that any of them has been, it (in the case of
the Company, acting on behalf of all Group Companies) and he unconditionally and
irrevocably waives any claims, rights or remedies which any of them might otherwise
have had in relation thereto;

	 	 	provided that the provisions of this clause 18 shall not exclude any liability which any of
the parties or, where appropriate, the Group Companies would otherwise have to any other
party or, where appropriate, to the Group Companies or any right which any of them may have
in respect of any statements made fraudulently by any of them prior to

-15-

 

	 	 	the execution of this agreement or any rights which any of them may have in respect of
fraudulent concealment by any of them.

	18.2	 	Any previous agreement or arrangement between the Executive and the Company or any Group
Company concerning the Executive’s employment shall be deemed to have been terminated by
mutual consent as from the date of this agreement.

	19.	 	PROPER LAW
	 
	19.1	 	This agreement (and any dispute, controversy, proceedings or claim of whatever nature
arising out of or in any way relating to this agreement or its formation) shall be governed
by and construed in accordance with English law.
	 
	19.2	 	Each of the parties to this agreement irrevocably agrees that the courts of England shall
have exclusive jurisdiction to hear and decide any suit, action or proceedings, and/or to
settle any disputes, which may arise out of or in connection with this agreement and, for
these purposes, each party irrevocably submits to the jurisdiction of the courts of England.

	20.	 	CONSTRUCTION
	 
	20.1	 	The headings in this agreement are inserted for convenience only and shall not affect its
construction.
	 
	20.2	 	Any reference to a statutory provision shall be construed as a reference to any statutory
modification or re-enactment thereof (whether before or after the date hereof) for the time
being in force.
	 
	20.3	 	No modification, variation or amendment to this agreement shall be effective unless such modification, variation or amendment is in writing and has been signed by or on behalf of
both parties.

	21.	 	THIRD PARTY RIGHTS
	 
	21.1	 	The Contracts (Rights of Third Parties) Act 1999 shall only apply to this agreement in
relation to any Group Company. No person other than the parties to this agreement and any
Group Companies shall have any rights under it and it will not be enforceable by any person
other than those parties.

	22.	 	COUNTERPARTS
	 
	 	 	This agreement may be executed by counterparts which together shall constitute one
agreement. Either party may enter into this agreement by executing a counterpart and this
agreement shall not take effect until it has been executed by both parties. Delivery of
executed counterpart of this agreement by facsimile shall take effect as delivery of an
executed counterpart of this agreement provided that, the relevant party shall give the
other the original of such counterpart as soon as reasonably practicable thereafter.

IN WITNESS whereof this agreement has been executed as a deed on the date first above written.

-16-

 

	 	 	 
	Signed as a deed by

	)	 /s/ Rolf Soderstrom
	 

	 	 
	ROLF SODERSTROM
	 	 
	in the presence of:

	)	 
	 
	 	 
	Witness signature:

	 	/s/ Julie Ann Howard
	 

	 	 
	 
	 	 
	Witness name:

	 	Julie Ann Howard
	 
	 	 
	Witness address:

	 	19 Oakley Lane (Illegible)
	 
	 	 
	Witness occupation:

	 	(Illegible)
	 
	 	 
	Signed as a deed by PROTHERICS PLC

acting by

a director and

a director/secretary

	)

)

)

)	 
	 
	 	 
	Signature of director:

	 	/s/ Andrew Heath
	 

	 	 
	 
	 	 
	Name of director:

	 	Andrew Heath
	 
	 	 
	Signature of director/secretary:

	 	/s/ James Christie
	 

	 	 
	 
	 	 
	Name of director/secretary

	 	James Christie

-17-EX-10.1 PURCHASE AND LOAN AGREEMENT

Exhibit 10.1

SUBORDINATED CAPITAL NOTE

SERIES 2008-1

NOTE PURCHASE/LOAN AGREEMENT

dated as of August 5, 2008

between

PINNACLE NATIONAL BANK,

as Issuer/Borrower

and

SUNTRUST BANK

as Purchaser/Lender

 

 

     THIS SUBORDINATED CAPITAL NOTE PURCHASE/LOAN AGREEMENT (this “Agreement”) is made as
of August 5, 2008, by and between Pinnacle National Bank, a national banking association (the
“Company” or the “Borrower”), as the issuer of the Subordinated Capital Notes
Series 2008-1 (the “Notes”) and the borrower thereunder, and SUNTRUST BANK, a Georgia
banking corporation, as the purchaser of, and lender under, the Notes (“SunTrust” or the
“Lender”).

W I T N E S S E T H:

          The Company has requested SunTrust, and SunTrust has agreed, subject to the terms and
conditions of this Agreement, and in reliance upon the representations, warranties and covenants of
the Company herein, and in the Notes and the other Transaction Documents to purchase the Notes and
thereby lend the Company $15,000,000, which the Company will treat as Tier 2 capital for bank
regulatory purposes.

          In consideration of the premises, the mutual agreements contained in this Agreement and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by
each party, the parties, intending to be legally bound, agree as follows:

ARTICLE I

DEFINITIONS; CONSTRUCTION

          Section 1.1 Definitions. The following terms have the definitions shown below:

          “BHC Act” means the federal Bank Holding Company Act of 1956, as amended, and any successor
thereto.

          “Borrower Parent” means Pinnacle Financial Partners, Inc., a Tennessee corporation and any
successor thereto, and any other Person that is a “company” that “controls” the Issuer for purposes
of the BHC Act.

          “Call Report” means, with respect to the Borrower, the “Consolidated Reports of Condition and
Income” (FFIEC Form 031 or 041 or any successor form of the Federal Financial Institutions
Examination Council).

          “Closing” means the closing of the transactions contemplated herein and in the Notes.

          “Closing Date” means the date on which the conditions precedent set forth in Section
3.1 have been satisfied or waived in accordance with Section 9.2, and which, unless
otherwise indicated, shall be the date of this Agreement.

          “Federal Reserve Reports” shall mean the “Consolidated Financial Statements for Bank Holding
Companies-FR Y-9C”, the “Parent Company Only Financial Statements for Large Bank Holding
Companies-FR Y-9LP”, or any successors thereto, and other reports required to be filed with the
Federal Reserve by the Borrower Parent.

 

 

          “FDIC” means the Federal Deposit Insurance Corporation and any successor thereto.

          “Transaction
Documents” mean this Agreement, the Notes, and any and all other instruments, agreements, documents and writings delivered at Closing
in connection with any of the foregoing.

          “Material Adverse Effect” means any event, action, omission or condition that (i) has had or
is reasonably likely to have a material adverse effect on the condition (financial or otherwise),
earnings, cash flows, business or prospects of the Company and whether or not arising in the
ordinary course of business, (ii) has had or is reasonably likely to have a material adverse effect
on the Notes, the rights of Holders of the Notes or the consummation or performance of the
Transactions, (iii) would limit or prevent the Notes from being included and recognized by all
applicable Governmental Authorities as Tier 2 capital for all purposes to the fullest extent
provided by the last sentence of Section 2(b)(4) of Appendix A to 12 CFR Part 3, (iv) questions the
validity or enforceability of any Transaction Document, or (v) seeks to restrain, enjoin, limit or
prohibit the execution, delivery or performance of any of the Transactions Documents or any of the
Transactions.

          “Maturity Date” means September 30, 2015, unless the maturity of the Notes is accelerated in
accordance with the terms of the Notes to an earlier date.

          Section 1.2 Terms Generally. All capitalized terms used in the Notes, and the
Interpretative Provisions of Exhibit 1 to the Notes are incorporated herein by reference in
full and shall apply to this Agreement.

ARTICLE II

AMOUNT AND TERMS OF THE SUBORDINATED TERM LOAN

          Section 2.1 Subordinated Term Loan and Subordinated Notes. Subject to the terms and
conditions set forth herein, the Lender agrees to purchase the Subordinated Capital Notes from the
Borrower on the Closing Date and thereby extend to the Borrower a loan in the principal amount of
FIFTEEN MILLION DOLLARS AND NO/100 ($15,000,000.00).

          Section 2.2 Terms of Notes. The terms of the Notes are hereby incorporated by
reference into this Agreement in full.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          The Borrower and the Borrower Parent jointly and severally represents and warrants to the
SunTrust as follows:

          Section 3.1 Organization; Authority. The Company is a national banking association
duly organized, validly existing and in good standing under the laws of its

-3 -

 

jurisdiction of organization, and has the full corporate power and authority to own, lease and
operate its properties, to own its Subsidiaries, to issue the Notes, to conduct its business as
presently conducted and as described in the Borrower Parent’s latest SEC Reports on Forms 10-K and
10-Q, and to enter into and perform its obligations under this Agreement, the Notes and the other
Transaction Documents. The Borrower Parent is a bank holding company, and it has been duly
approved by and is registered with, the Federal Reserve as a bank holding company under the BHC
Act, and with all other federal or state regulatory authorities that require registration or
Approval of the Borrower Parent as a holding company (“Other Banking Approvals”) owning or
controlling its Subsidiaries. The Company has all necessary authorizations, approvals,
registrations, qualifications, orders, licenses, certificates, decrees, consents and permits
(collectively, “Approvals”) needed to conduct its business, to own its Subsidiaries, to
issue the Notes, to conduct its business as presently conducted to enter into and perform its
obligations under this Agreement and the other Transaction Documents, and to include the full
amount of such Notes as Tier 2 capital for all regulatory purposes to the fullest extent provided
by the last sentence of Section 2(b)(4) of Appendix A to 12 CFR Part 3, except to the extent that
the failure to obtain any such Approval has not had and is not reasonably likely to have a Material
Adverse Effect. The Company has duly authorized and outstanding capital stock as set forth in the
information provided to SunTrust, all of its outstanding shares of capital stock (“Company
Shares”) have been duly authorized and validly issued and are fully paid and non assessable
(except to the extent that shares may be assessable under applicable federal or state banking
Laws), and none of the outstanding Company Shares was issued in violation of any preemptive or
similar rights of any shareholder of the Company. The Company is duly qualified to transact
business as a foreign corporation and is in good standing in each jurisdiction where it owns or
leases property or transacts business, and where such qualification is necessary, except to the
extent that the failure to so qualify or to be in good standing has not had and is not reasonably
likely to have a Material Adverse Effect.

          Section 3.2 No Conflicts. The execution, delivery and performance of the Transaction
Documents to which each Issuer is a party, and the consummation of the Transactions

          (a) do not require any consent or Approval under, do not and will not conflict with,
constitute a breach of, or a default or an event, which with notice, lapse of time or both would be
a default under, an event or condition that gives any person the right to require the repurchase,
redemption or repayment of all or a portion of any note, debenture or other indebtedness of the
Issuer or the Company (each a “Repayment Event”)

          (b) will not result in the creation or imposition of any Lien upon any property or assets of
the Company or any of its Subsidiaries, under any contract, indenture, mortgage, loan agreement,
note, lease or other agreement or instrument (“Contract”) to which the Company or any of
its Subsidiaries is a party or by which it or any of them may be bound, or to which any of the
property or assets of any of them is subject, except for a conflict, breach, default or Lien which
does not have and is not reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect, nor will any such action result in any violation of any applicable Law or Approval,
except for those violations which, individually or in the aggregate are not reasonably expected to
have a Material Adverse Effect.

-4 -

 

          Section 3.3 Financial Statements.

          (a) The audited consolidated financial statements, including the notes and schedules thereto,
of the Borrower Parent, as of and for the last full three years (the “Annual Financial
Statements”) and the interim unaudited consolidated financial statements of the Borrower
Parent, as of and for the latest interim periods and the corresponding interim periods of the
immediately preceding year, (the “Interim Financial Statements”, and collectively with the
Annual Financial Statements, the “Financial Statements”) provided to SunTrust have been
prepared in accordance with GAAP. The Borrower Parent’s Financial Statements conform to the
requirements of the 1934 Act and all applicable United States Securities and Exchange Commission
(“Commission”) rules and regulations. All Financial Statements of the Company and the
Borrower Parent fairly present in all material respects the consolidated financial condition,
earnings, cash flows and changes in shareholders’ equity as of the dates and for the periods
therein specified, subject, in the case of Interim Financial Statements, only to normal recurring
year-end audit adjustments that are not material, and each has been certified as required by
applicable Law.

          (b) The Company’s most recent principal and quarterly Call Reports, and any subsequent reports
have been provided to the Lender, and the information therein fairly presents in all material
respects the financial position and results of operation of the Company and its Subsidiaries, and
the Borrower Parent and its Subsidiaries, respectively, as of such date and for such periods.

          (c) All of the Borrower Parent’s Federal Reserve Reports, including those on Federal Reserve
Forms FRY-9 C and FRY-9LP and the various schedules and subreports thereunder, for the last full
year and any subsequent interim periods, conform in all material respects to the Federal Reserve’s
requirements for such reports, and all of the Issuer’s Call Reports submitted to its primary
federal regulators conform in all material respects to the Federal Financial Institutions
Examination Council’s (“FFIEC”) requirements for Call Reports, and all such Federal Reserve
Reports and Call Reports are accurate and complete in all material respects and fairly present in
all material respects the reporting entity’s financial condition, earnings, cash flows (to the
extent a statement of cash flows is included pursuant to the requirements of such form) and changes
in shareholders’ equity as of the dates and for the periods shown are not inconsistent with the
Financial Statements and the Interim Financial Statements as of and for the corresponding dates and
periods.

          (d) Since the respective dates as of which information is included in the most recent
Financial Statements, Interim Financial Statements, Federal Reserve Reports and Call Reports, and
except as specifically disclosed in Schedule A attached hereto, there has not been (i) any
event, action, omission or condition that has had a Material Adverse Effect, (ii) any transactions
entered into by the Issuer, other than in the ordinary course of business, that are material to the
Issuer, (iii) except for regular quarterly cash dividends on the Company’s common stock in the
ordinary course of business and dividends paid by any Subsidiary to the Company, including
increases, consistent with past practice, any dividend or distribution of any kind declared, paid
or made by the Company on its capital stock, nor (iv) any other event, action, omission or
condition that is reasonably likely to have a Material Adverse Effect.

-5 -

 

          Section 3.4 Litigation Matters. There is no litigation, investigation or proceeding
of or before any arbitrators or Governmental Authorities pending, or, to the knowledge of the
Borrower, threatened against or affecting the Company or any of its Subsidiaries (i) as to which
there is a reasonable possibility of an adverse determination that could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

          Section 3.5 Compliance with Laws and Agreements. Each of the Company and each of its
Subsidiaries and the Borrower Parent is in compliance with all applicable Laws, and all commitments
to, all applicable Governmental Authorities, and all Approvals, except for those violations of
which, individually or in the aggregate, would not have a Material Adverse Effect.

          Section 3.6 Regulatory Enforcement Matters. None of the Company, the Borrower Parent
or any of their respective Subsidiaries, nor any of their respective officers, directors, employees
or representatives, is subject or is party to, or has received any written notice from any
Governmental Authority that any of them is or expected to be a subject of or party to any
investigation with respect to, any cease-and-desist order, agreement, civil monetary penalty, bar
or suspension from the securities investment or banking businesses, consent agreement, memorandum
of understanding or other regulatory enforcement action, proceeding or order with or by, or is a
party to any commitment letter or similar undertaking to, or is subject to any directive by, or has
been a recipient of any supervisory letter from, or has adopted any board resolutions at the
request or suggestion of, any Governmental Authority that, in any such case, currently restricts in
any material respect the conduct of their business or that in any material manner relates to their
capital adequacy, the payment of or any restriction upon, the payment of dividends, distributions
or payments (other than as imposed by Law, generally), their credit policies, their management or
their business (each, a “Regulatory Action”), nor has the Company or any of its
Subsidiaries or the Borrower Parent been advised by any Governmental Authority that it is
considering issuing or requesting any such Regulatory Action; and there is no unresolved violation,
criticism or exception by any Governmental Authority with respect to any report or statement
relating to any examinations of the Company or any of its Subsidiaries (including the Borrower),
except where such unresolved violation, criticism or exception would not, singly or in the
aggregate, have a Material Adverse Effect.

          Section 3.7 Investment Company Act. Neither the Borrower nor the Borrower Parent is
an “investment company”, as defined in, or subject to registration or regulation under, the
Investment Company Act of 1940, as amended.

          Section 3.8 Taxes. Each of the Company, the Borrower Parent and their respective
Subsidiaries has filed all federal, state, local and foreign tax returns that are required to be
filed or has duly requested extensions thereof and has paid all taxes required to be paid by any of
them and any related assessments, fines or penalties, except for any such tax, assessment, fine or
penalty that is being contested in good faith and by appropriate proceedings; and adequate charges,
accruals and reserves have been provided for in the Financial Statements or Interim Financial
Statements in respect of all federal, state, local and foreign taxes, including for all periods and
amounts as to which the tax liability of the Company, the Borrower Parent or their respective
Subsidiaries is being contested, has not been finally determined or remains open to

-6 -

 

examination by applicable taxing authorities and where such taxes have not become due and
payable.

          PNFP
Properties, Inc. (“PNFP”), an indirect subsidiary of the Company, is organized and
operated in conformance with the requirements for qualification as a real estate investment trust
(“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the
“Code”), and the current and proposed method of operation of the Company and its
subsidiaries will enable PNFP to meet the requirements for taxation as a REIT under the Code.
There is no dispute, assessment, investigation, claim, or proceeding pending, or to the Company’s
or the Borrower Parent’s knowledge, threatened, questioning the status, or tax returns, payment or
amounts of payments of taxes by PNFP, as a REIT for any federal, state or local tax purpose.

          Section 3.9 Disclosure. The Company has disclosed to the Lender all agreements,
instruments, and corporate or other restrictions to which the Company, the Borrower Parent or any
of the Borrower Parent’s Subsidiaries is subject or bound , and all other matters known to any of
them, that, individually or in the aggregate, could reasonably be expected to result in a Material
Adverse Effect. None of the Call Reports, Federal Reserve Reports or any reports that the Borrower
Parent is required to file with the Commission), financial statements, certificates or other
information furnished by or on behalf of the Borrower to the Lender in connection with the
negotiation of this Agreement or any other Transaction Document or delivered hereunder or
thereunder (as modified or supplemented by any other information so furnished or filed) contains
any material misstatement of fact or omits to state any material fact necessary to make the
statements therein, taken as a whole, in light of the circumstances under which they were made, not
misleading.

          Section 3.10 Capital. On the Closing Date, each of the Borrower and the Borrower
Parent, and each depository institution Subsidiary of the Borrower Parent, is “well-capitalized”
for all bank regulatory purposes.

          Section 3.11 FDIC Insurance. The deposits of the Borrower are insured by the FDIC to
the fullest extent permitted by Law, and no proceedings for the termination of such insurance are
pending or, to the knowledge of the Borrower, threatened.

          Section 3.12 OFAC. None of the Company or the Borrower Parent, nor any of their
respective Subsidiaries (i) is a person whose property or interest in property is blocked or
subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 “Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism” (66 Fed. Reg. 49079 (2001)), (ii) engages in any dealings or transactions prohibited by
Section 2 of such executive order, or is otherwise associated with any such person in any manner
violative of Section 2 or (iii) is a person on the list of Specially Designated Nationals and
Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of
Treasury’s Office of Foreign Assets Control regulation or executive order.

          Section 3.13 Patriot Act, Etc. Each of the Company, the Borrower Parent and their
respective Subsidiaries is in compliance, in all material respects, with (i) the Trading with

-7 -

 

the Enemy Act, as amended, and each of the foreign assets control regulations of the United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling
legislation or executive order relating thereto and (ii) the Uniting And Strengthening America By
Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001).
No part of the proceeds of the Notes will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended.

          Section 3.14 Certificates. No filing with, or Approval of, any Governmental
Authority, other than those that have been made or obtained and which remain in full force and
effect, is necessary or required for the execution delivery and performance of the Transaction
Documents by the Company in connection with the issuance and sale of the Notes or the consummation
of the Transactions. The Company has given any required written notice to the applicable
Governmental Authorities having jurisdiction over the Issuer and the Transactions of its intent to
engage in the Transactions, and no applicable Governmental Authority has expressed any objection to
the Offering or the qualification of the Notes as Tier 2 Capital under applicable capital adequacy
guidelines and rules. The Company has no reason to believe that the Notes will not be treated as
Tier 2 Capital. The Company shall confirm such matters in an officers’ certificate delivered to
SunTrust at the Closing.

ARTICLE IV

COVENANTS

     The Borrower covenants and agrees that so long as any amount is owed under the Notes:

          Section 4.1 Financial Statements and Other Information. The Company will deliver to
the Lender:

          (a) as soon as available and in any event within 90 days after the end of each fiscal year of
the Borrower Parent, a copy of the annual audited report for such fiscal year for the Borrower
Parent and its Subsidiaries, containing a consolidated balance sheet and the related consolidated
statements of income, of shareholders’ equity and comprehensive income, and of cash flows (together
with all footnotes thereto), setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail and reported on by independent public accountants of
nationally recognized standing (without a “going concern” or like qualification, exception or
explanation and without any qualification or exception as to scope of such audit) to the effect
that such financial statements present fairly in all material respects the financial condition and
the results of operations and cash flows on a consolidated basis of the Borrower Parent and its
Subsidiaries for such fiscal year in accordance with GAAP and that the examination by such
accountants in connection with such financial statements has been made in accordance with
generally accepted auditing standards; provided, that the requirements set forth in this
clause (a) may be fulfilled by providing to the Lender the report of the Company to the Commission
on Form 10-K for the applicable fiscal year;

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          (b) as soon as available and in any event within 45 days after the end of each of the first
three fiscal quarters of each fiscal year of the Borrower Parent, an unaudited balance sheet of the
Borrower Parent and its Subsidiaries on a consolidated basis as of the end of such fiscal quarter
and the related unaudited statements of income and cash flows of the Borrower Parent and its
Subsidiaries on a consolidated basis for such fiscal quarter and the then elapsed portion of such
fiscal year, setting forth in each case in comparative form the figures for the corresponding
quarter and the corresponding portion of Borrower Parent’s previous fiscal year, all certified by
the chief financial officer or treasurer of the Borrower Parent as presenting fairly in all
material respects the financial condition and results of operations of the Company and its
Subsidiaries on a consolidated basis in accordance with GAAP, subject to normal year-end audit
adjustments and the absence of footnotes; provided, that the requirements set forth in this
clause (b) may be fulfilled by providing to the Lender the report of the Company to the Commission
on Form 10-Q for the applicable fiscal quarter;

          (c) upon filing and not later than the respective due dates, copies of the Borrower Parent’s
Federal Reserve Reports, copies of the Borrower’s Call Report; and

          (d) deliver without charge to SunTrust or any Holder, promptly upon filing or becoming
available, copies of (i) all other reports or other publicly available information that the Company
or the Borrower Parent mails or otherwise makes available to their respective shareholders and
holders of securities, (ii) all reports, financial statements and proxy or information statements
filed by the Borrower Parent with the Commission, NASDAQ or any securities exchange, and (iii)
other nonconfidential information concerning the Company, the Borrower Parent or their respective
Subsidiaries as reasonably requested by SunTrust or any Holder, including press releases, analysts’
reports and communications with holders of Company or Subsidiary securities.

          (e) all amendments of the foregoing and all supplements and schedules to the foregoing.

Documents required to be delivered pursuant to Sections 5.1(a), 5.1(b), and
5.1(d) that are filed with, or furnished to, the Commission electronically shall be deemed
to have been delivered to the Lender on the date (i) on which the Borrower Parent posts such
documents or provides a link thereto on the Borrower Parent’s website on the internet at the
website address set forth in Section 9.1; provided, that (A) the Borrower shall
deliver paper copies of such documents to the Lender if the Lender so requests in writing until a
further written notice is received by the Borrower from the Lender to cease delivering paper copies
and (B) the Borrower shall notify the Lender of the posting of any such documents.

          Section 4.2 Notices of Material Events. The Borrower will furnish to the Lender
prompt written notice of the following:

          (a) the filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or, to the knowledge of the Company, affecting the Company, the
Borrower Party or any of their respective Subsidiaries which could reasonably be expected to result
in a Material Adverse Effect;

-9 -

 

          (b) any material investigation of the Company, the Borrower Parent, or any of their respective
Subsidiaries by any Governmental Agency having regulatory authority over the Company or any such
Subsidiaries (other than routine examinations of the Borrower and/or any such Subsidiary);

          (c) the issuance of any cease and desist order, written agreement, cancellation of insurance
or other public enforcement action by any Governmental Authority having regulatory authority over
the Company or any Subsidiary;

          (d) the issuance of any memorandum of understanding or enforcement or regulatory action
(formal or informal) by or from any Governmental Authority having regulatory authority over the
Company or any Subsidiary, to the extent that the Company or any such Subsidiary is permitted to
disclose such information (provided that the Borrower shall take all reasonable efforts to obtain
any necessary regulatory consents);

          (e) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.

          Each notice delivered under this Section shall be accompanied by a written statement of a
Responsible Officer setting forth the details of the event or development requiring such notice and
any action taken or proposed to be taken with respect thereto.

          Section 4.3 Use of Proceeds. The Borrower will use the proceeds from the sale of the
Notes for general working capital purposes and regulatory capital. No part of the proceeds of the
Subordinated Term Loan will be used, whether directly or indirectly, for any purpose that would
violate any rule or regulation of the Board of Governors of the Federal Reserve System, including
Regulation T, U or X.

          Section 4.4 OCC Notice. Promptly following the Closing, but in no event more than ten
days after the Closing Date, the Borrower shall provide notice to OCC of the Borrower’s issuance of
the Subordinated Capital Notes, which notice shall include the information required by, and
otherwise be made in compliance with, 12 C.F.R. §5.47(g).

ARTICLE V

CONDITIONS PRECEDENT TO NOTES PURCHASE

          Section 5.1 Conditions To Purchasing the Notes. The obligations of SunTrust to
purchase the Notes and extend credit to the Borrower thereunder is subject to the receipt by
SunTrust of the following documents in form and substance reasonably satisfactory to the SunTrust:

          (a) this Agreement duly executed and delivered by the Borrower;

          (b) a duly executed Note substantially in the form of Exhibit A hereto has been executed and
delivered to SunTrust;

-10 -

 

          (c) a certificate of the Secretary or Assistant Secretary of the Borrower, attaching and
certifying copies of its articles of association, bylaws and of the resolutions of its board of
directors, authorizing the execution, delivery and performance of the Transaction Documents and
certifying the name, title and true signature of each officer of the Borrower authorized to execute
the Transaction Documents;

          (d) a certificate of corporate existence issued by the Office of the Comptroller of the
Currency dated not more than 5 Business Days prior to the Closing Date;

          (e) a favorable written opinion of Bass Berry & Sims PLC, counsel to the Borrower, addressed
to the Lender, and covering such matters relating to the Borrower, the Transaction Documents and
the transactions contemplated therein as the Lender shall reasonably request;

          (f) a certificate of Borrower, signed by the Chief Executive Officer, President or an
Executive Vice President and by the Chief Financial Officer or Treasurer of the Borrower,
certifying that: (a) all representations and warranties of the Borrower herein shall be true and
correct in all material respects on and as of the Closing Date, both before and immediately after
giving effect to this Agreement, and (b) since December 31, 2007, there has been no material
adverse change in the condition (financial or other), earnings, business, prospects or assets of
the Borrower and its Subsidiaries; and

          (g) a certificate of Borrower Parent, signed by the Chief Executive Officer, President or an
Executive Vice President and by the Chief Financial Officer or Treasurer of the Borrower Parent,
certifying that all representations and warranties of the Borrower Parent and its Subsidiaries
herein shall be true and correct in all material respects on and as of the Closing Date, both
before and immediately after giving effect to this Agreement; and

          (h) the payment of the placement fee owed to SunTrust Robinson Humphrey, Inc. in the amount of
$225,000.

ARTICLE VI

MISCELLANEOUS

          Section 6.1 Notices.

          (a) Except in the case of notices and other communications expressly permitted to be given by
telephone, all notices and other communications to any party herein to be effective shall be in
writing and shall be delivered by hand or reliable overnight courier service, mailed by certified
or registered mail or sent by telecopy, as follows:

	 	 	 	 	 
	          To the Borrower:
	 	 	Pinnacle National Bank
	 
	 	 	211 Commerce Street
	 
	 	 	Suite 300
	 
	 	 	Nashville, Tennessee  37201

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	 	Attn:  Harold R. Carpenter
	 
	 	Telephone Number:  (615) 744-3742
	 
	 	Fax Number:  (615) 744-3842
	 
	 	Email:  harold.carpenter@pnfp.com
	 
	 	 	 	 
	To the Lender:
	 	SunTrust Bank
	 
	 	303 Peachtree Street, 3rd Floor
	 
	 	Atlanta, Georgia 30308
	 
	 	 	 	 
	 
	 	Attn:  Christopher M. Houck
	 
	 	Telephone Number:  (404) 588-7788
	 
	 	Fax Number:  (404) 581-1775
	 
	 	Email: chris.houck@suntrust.com

Notices sent by hand or reliable overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed
to have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient).

Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto. All such notices and other communications shall,
when transmitted by overnight delivery, or faxed, be effective when delivered for overnight
(next-day) delivery, or transmitted in legible form by facsimile machine, respectively, or if
mailed, upon the third Business Day after the date deposited into the mails or if delivered, upon
delivery; provided, that notices delivered to the Lender shall not be effective until
actually received by the Lender at its address specified in this Section 6.1. With respect
to any communications delivered or furnished by electronic communication under Section 5.1,
such communications sent to an e-mail address shall be deemed received upon the sender’s receipt of
an acknowledgement from the intended recipient (such as by the “return receipt requested” function,
as available, return e-mail or other written acknowledgement); provided, that if such
communications are not sent during the normal business hours of the recipient, such communications
shall be deemed to have been sent at the opening of business on the next Business Day for the
recipient, and (ii) communications posted to an internet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause
(i) of notification that such communication is available and identifying the website address
therefor.

          (b) Any agreement of the Lender herein to receive certain notices by telephone or facsimile is
solely for the convenience and at the request of the Borrower. The Lender shall be entitled to
rely on the authority of any Person purporting to be a Person authorized by the Borrower to give
such notice and the Lender shall not have any liability to the Borrower or other Person on account
of any action taken or not taken by the Lender in reliance upon such telephonic or facsimile
notice.

-12 -

 

          Section 6.2 Waiver; Amendments.

          (a) No failure or delay by the Lender in exercising any right or power hereunder under the
Notes or any other Transaction Document, and no course of dealing between the Borrower and the
Lender, shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right or power or any abandonment or discontinuance of steps to enforce such right or power,
preclude any other or further exercise thereof or the exercise of any other right or power
hereunder or thereunder. The rights and remedies of the Lender hereunder and under the other
Transaction Documents are cumulative and are not exclusive of any rights or remedies provided by
law.

          (b) No amendment or waiver of any provision of this Agreement or the other Transaction
Documents, nor consent to any departure by the Borrower therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Lender in the case of a waiver by the Lender
and the Borrower in the case of a waiver by the Borrower, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.

          Section 6.3 Expenses; Indemnification.

          (a) The Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the Lender
(including, without limitation, the reasonable fees, charges and disbursements of outside counsel
and the allocated cost of inside counsel) in connection with the preparation and administration of
the Notes, this Agreement and the Other Transaction Documents and any amendments, modifications or
waivers thereof (whether or not the Transactions contemplated in this Agreement, the Notes or any
other Transaction Document shall be consummated), and (ii) all out-of-pocket costs and expenses
(including, without limitation, the reasonable fees, charges and disbursements of outside counsel
and the allocated cost of inside counsel) incurred by the Lender in connection with the enforcement
or protection of its rights in connection with this Agreement, including its rights under this
Section, or in connection with the Notes or the other Transaction Documents, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the
Notes.

          (b) The Company agrees to indemnify and hold harmless SunTrust and its Affiliates and its
directors, officers, employees, agents, representatives, and each person or entity who controls
SunTrust and its Affiliates within the meaning of Section 15 of the Securities Act or Section 20 of
the 1934 Act, and their respective heirs, and personal and legal representatives of such
individuals, against any and all costs, losses, expenses, claims, damages or liabilities, joint,
several, or individual actions, investigations or proceedings of any nature (“Claims”),
including the reasonable fees, charges and disbursements of any counsel for any Indemnitee, all as
incurred which may be incurred by any Indemnitee, or asserted against any Indemnitee by the
Borrower, the Borrower Parent or their respective Subsidiaries or successors or any other Person,
arising out of, in connection with or as a result of (i) the authorization, issuance or sale of the
Notes the execution, delivery or performance of this Agreement, the Notes or any other Transaction
Document, the performance by the Parties hereto of their respective obligations hereunder or the
consummation of any of the transactions contemplated hereby or by the Notes or any other
Transaction Document, (ii) any actual or proposed use of the proceeds from the

-13 -

 

issuance and sale of the Notes, or (iii) any actual or prospective Claim or relating to any of
the foregoing, whether brought by the Borrower, the Borrower Parent or any of their respective
Affiliates or any third Person and whether based on contract, tort, or any other theory and
regardless of whether any Indemnitee is a party thereto, provided, that such indemnity shall not,
as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or
related expenses are determined by a court of competent jurisdiction in a final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

          (c) Promptly after receipt by an Indemnified Person of notice of the commencement of any
Claim, such Indemnified Person will, if a claim in respect thereof is to be made against the
Company under this Section 6.3, notify the Company in writing of the commencement thereof; but the
failure to so notify the Company shall not relieve the Company from any liability hereunder, except
and to the extent it is materially prejudiced as a result thereof, and in any event shall not
relieve it from any liability which it may have otherwise than on account of this Section 6.3,
except to the extent that the failure to so notify the other party is a defense to such other
liability.

          (d) The Borrower shall pay, and hold the Lender harmless from and against, any and all present
and future stamp, documentary, and other similar taxes with respect to the Notes, this Agreement
and any other Transaction Documents, any collateral described therein, or any payments due
thereunder, and save the Lender harmless from and against any and all liabilities with respect to
or resulting from any delay or omission to pay such taxes.

          (e) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to actual or direct damages) arising out of, in
connection with or as a result of, this Agreement, any other Transaction Document, the transactions
contemplated herein or therein, the Subordinated Term Loan or the use of proceeds thereof.

          (f) All amounts due under this Section shall be payable promptly after written demand
therefor.

          Section 6.4 Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, except that the Borrower may not assign
or transfer any of its rights or delegate any of its obligations hereunder without the prior
written consent of the Lender (and any attempted assignment, delegation or transfer by the Borrower
without such consent shall be null and void).

          (b) The Lender is purchasing the Notes without any view to “distribution” of such Notes within
the meaning of the Securities Act. The Lender may at any time sell some or all the Notes, or
participations or assignments in all or a portion of its rights and obligations under this
Agreement, the Notes and the other Transaction Documents, provided any such transfer shall be made
in a manner that does not require the Company to register the Notes under the Securities Act,
applicable OCC regulations, or any applicable state securities or blue sky

-14 -

 

laws. Any Holder of Notes shall be deemed to have all the same rights granted to SunTrust
hereunder and under the Notes and other Transaction Documents.

          Section 6.5 Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement and the other Transaction Documents shall be construed in accordance with
and be governed by the laws (without giving effect to the conflict of law principles thereof) of
the State of New York.

          (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the non-exclusive jurisdiction of any Federal and/or state court located in the State of Georgia
and any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or any other Transaction Document or the transactions contemplated hereby or
thereby, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in any such court. Each of the parties hereto agrees that a final
nonappealable judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by applicable Law.
Nothing in this Agreement or any other Transaction Document shall affect any right that the Lender
may otherwise have to bring any action or proceeding relating to this Agreement, then Notes or any
other Transaction Document against the Borrower or its properties in the courts of any
jurisdiction.

          (c) The Borrower irrevocably and unconditionally waives any objection which it may now or
hereafter have to the laying of venue of any such suit, action or proceeding described in paragraph
(b) of this Section and brought in any court referred to in paragraph (b) of this Section. Each of
the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, the
defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to the service of process in the manner
provided for notices in Section 6.1. Nothing in this Agreement or in any other Transaction
Document will affect the right of any party hereto to serve process in any other manner permitted
by law.

          Section 6.6 WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT, THE NOTES OR ANY OTHER TRANSACTION
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY).

          Section 6.7 Counterparts; Integration. This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts (including by telecopy),
and all of said counterparts taken together shall be deemed to constitute one and the same
instrument. This Agreement, the Notes the other Transaction Documents, and any separate

-15 -

 

letter agreement(s) relating to any fees payable to the Lender or any of its Affiliates
constitute the entire agreement among the parties hereto and thereto regarding the subject matters
hereof and thereof and supersede all prior agreements and understandings, oral or written,
regarding such subject matters.

          Section 6.8 Survival. All covenants, agreements, representations and warranties made
by the Borrower and the Borrower Parent herein and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery of this Agreement and
the purchase of the Notes, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Lender may have had notice or knowledge of any incorrect
representation or warranty at the time any credit is extended hereunder, and shall continue in full
force and effect as long as the principal of or any accrued interest on the Notes or any other
amount payable or obligation under this Agreement or the Notes is outstanding and unpaid. The
provisions of Section 6.3 shall survive and remain in full force and effect
regardless of the consummation of the transactions contemplated hereby, the repayment of all of
Borrower’s obligations, or the termination of this Agreement or any provision hereof. All
representations and warranties made herein, in the certificates, reports, notices, and other
documents delivered pursuant to this Agreement or the Notes shall survive the execution and
delivery of this Agreement, the Notes and the other Transaction Documents, and the issuance and
sale of the Notes.

          Section 6.9 Severability. Any provision of this Agreement or any other Transaction
Document held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such
jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability
without affecting the legality, validity or enforceability of the remaining provisions hereof or
thereof; and the illegality, invalidity or unenforceability of a particular provision in a
particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

          Section 6.10 Patriot Act. The Lender hereby notifies the Borrower that pursuant to
the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Patriot Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow the Lender to identify the Borrower in accordance with the Patriot
Act. The Borrower shall, and shall cause each of its Subsidiaries to, provide to the extent
commercially reasonable, such information and take such other actions as are reasonably requested
by the Lender in order to assist the Lender in maintaining compliance with the Patriot Act.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, under
seal in the case of the Borrower, by their respective authorized officers as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	PINNACLE NATIONAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ M. Terry Turner	 	 
	 

	 	 	 	 

Name: M. Terry Turner
	 	 
	 

	 	 	 	Title: President & Chief
Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	[SEAL]	 	 
	 
	 	 	 	 	 	 
	 	 	SUNTRUST BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ William Christensen	 	 
	 

	 		 	 

Name: William Christensen
	 	 
	 

	 	 	 	Title: Director	 	 

     Joined in by Pinnacle Financial Partners, Inc. solely as to the representations, warranties,
and covenants made by the Borrower Parent and executed under seal by its undersigned duly
authorized officer as of the day and year first above written.

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

	 	
	 	 

Name: M. Terry Turner
	 	 
	 

	 	 	 	Title: President & Chief
Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	[SEAL]	 	 

-17 -

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