Document:

Ex-10.126

 

EXHIBIT 10.126

AMENDMENT TO

EMPLOYMENT AGREEMENT

     THIS AMENDMENT TO EMPLOYMENT AGREEMENT (“Amendment”) is entered into as of this
21st day of February, 2005, by and between TIMCO AVIATION SERVICES, INC., a Delaware
corporation (“Company”), and KEVIN CARTER (“Employee”)

Preliminary Statements

     A. The parties have previously entered into that certain Employment Agreement dated June 8,
2004 (“Agreement”). Unless otherwise defined, capitalized terms used herein shall have the
meanings given to them in the Agreement.

     B. The parties wish to amend the Agreement to reflect the terms set forth below.

Agreement

     NOW, THEREFORE, in consideration of the premises, the mutual covenants set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

1. Section 2(a) of the Agreement is hereby amended by deleting all of its text and replacing it
with the following text:

     (a) Base Salary. In consideration for the Employee’s services
hereunder and the restrictive covenants contained herein, effective as of November
1, 2004, the Employee’s base salary shall be $175,000 per annum (the “Salary”),
payable in accordance with TIMCO’s customary payroll practices. Notwithstanding the
foregoing, Employee’s annual Salary may be increased at any time and from time to
time to levels greater than the level set forth in the preceding sentence at the
sole discretion of the Compensation Committee of the Board of Directors of TIMCO
(“Committee”) to reflect merit or other increases.

2. Section 3(c) of the Agreement is hereby amended to change the period during which the Company
must continue to make all Severance Payments after a termination Without Cause from six months (as
currently provided in the Agreement) to one year.

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

[Signatures on next page]

 

 

     IN WITNESS WHEREOF, the parties have executed this Amendment, effective as of the date set
forth above.

	 	 	 	 	 
	

	 	TIMCO AVIATION SERVICES, INC., a

Delaware corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Roy T. Rimmer, Jr.
	

	 	 	 	 
	

	 	 	 	Roy T. Rimmer, Jr.

Chairman and Chief Executive Officer
	 
	 	 	 	 
	

	 	EMPLOYEE:
	 
	 	 	 	 
	

	 	/s/ Kevin Carter
	

	 	 
	

	 	Kevin Carter

 

 

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (“Agreement”), dated this 8th day of June, 2004, by and between
TIMCO AVIATION SERVICES, INC., a Delaware corporation (the “Company”), and KEVIN CARTER (the
“Employee”).

     In consideration of the mutual representations, warranties, covenants and agreements contained
in this Agreement and other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

     1. Employment.

          (a) Retention. The Company agrees to employ Employee as its Vice President,
Treasurer/Planning, and Employee agrees to accept such employment, subject to the terms and
conditions of this Agreement.

          (b) Employment Period. The period during which the Employee shall serve as an
employee of the Company under this Agreement shall commence as of May 1, 2004 (the “Effective
Date”), and unless earlier terminated pursuant to this Agreement or extended through agreement of
the parties, shall expire on December 31, 2007 (the period for which the Employee is an employee of
the Company is hereinafter referred to as the “Employment Period”).

          (c) Duties and Responsibilities. During the Employment Period, the Employee shall
serve as Vice President, Treasurer/Planning of the Company and its subsidiaries. In such role,
Employee shall have such authority and responsibility and perform such duties as may be assigned to
him from time to time by the Chief Financial Officer, and in the absence of such assignment, such
duties as are customary to Employee’s office and as are necessary or appropriate to the business
and operations of the Company and its subsidiaries. During the Employment Period, the Employee’s
employment shall be full time. Employee shall perform his duties honestly, diligently, in good
faith and in the best interests of the Company and its subsidiaries, and Employee shall use his
best efforts to promote the interests of the Company and its subsidiaries.

          (d) Other Activities. Except upon the prior written consent of the Company, the
Employee, during the Employment Period, will not accept any other employment. The Employee shall
be permitted to serve in ventures such as passive real estate investments, serving on charitable
and civic boards and organizations, and similar activities, so long as such activities do not
materially interfere with or detract from the performance of Employee’s duties or constitute a
breach of any of the provisions contained in this Agreement.

     2. Compensation.

          (a) Base Salary. In consideration for the Employee’s services hereunder and the
restrictive covenants contained herein, the Employee shall be paid an annual base salary
(“Salary”), as follows:

               (i) $130,000 from the Effective Date until December 31, 2004;

 

 

               (ii) $140,000 from January 1, 2005 until April 30, 2005; and

               (iii) $150,000 from May 1, 2005 until the end of the Employment Period.

Payments hereunder shall be made in accordance with the Company’s customary payroll practices.
Notwithstanding the foregoing, Employee’s annual Salary may be increased at anytime and from time
to time to levels greater than the level set forth in the preceding sentence at the discretion of
the Compensation Committee (the “Committee”) of the Board of Directors (“Board”) of the Company to
reflect merit or other increases.

          (b) Bonus. In addition to the Salary, the Employee shall be eligible to receive an
annual bonus (“Bonus”) equal to 50% of the Employee’s Salary. The Bonus shall be based on the
achievement of corporate goals and objectives as established by the Committee or the Board. The
achievement of said goals and objectives shall be determined by the Committee or the Board.
Notwithstanding the foregoing, Employee’s Bonus for fiscal 2004 shall not be less than $15,000 and,
notwithstanding the payment provision below, such minimum Bonus amount shall be paid to Employee on
or before January 15, 2005. With respect to any Fiscal Year during which the Employee is employed
by the Company for less than the entire Fiscal Year, the Bonus shall be prorated for the period
during which the Employee was so employed. Except as set forth above, all amounts of Bonus earned
by Employee shall be payable within thirty (30) days after completion of the audited financial
statements for the previous Fiscal Year. The term “Fiscal Year” as used herein shall mean each
period of twelve (12) calendar months commencing on January 1st of each calendar year during the
Employment Period and expiring on December 31st of such year.

          (c) Merit and Other Bonuses. Employee shall be entitled to such other bonuses,
payments and benefits may be determined by the Committee or the Board, in their sole discretion.

          (d) Equity Incentives. Employee shall be eligible to receive grants of stock options,
restricted stock or other equity incentives, all at the discretion of the Committee or the Board.

          (e) Other Compensation Programs. The Employee shall be entitled to participate in
Company’s incentive and deferred compensation programs and such other programs as are established
and maintained generally for the benefit of Company’s employees or executive officers, subject to
the provisions of such plans or programs.

          (f) Vacations. The Employee shall be entitled to three weeks of vacation on an annual
basis. Employee shall be entitled to be reimbursed for any accrued and unused vacation time as of
the date he is no longer an employee of Company.

          (g) Other Benefits. During the term of this Agreement, the Employee shall also be
entitled to participate in any other health insurance programs, life insurance programs, disability
programs, stock option plans, bonus plans, pension plans and other fringe benefit plans and
programs as are from time to time established and maintained for the benefit of Company’s employees
or executive officers, subject to the provisions of such plans and programs.

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          (h) Expenses. The Employee shall be reimbursed for all out-of-pocket expenses
reasonably incurred by him on behalf of or in connection with the business of the Company, pursuant
to the normal standards and guidelines followed from time to time by the Company.

          (i) Withholding. All payments made to the Employee hereunder shall be made net of any
applicable withholding for income taxes and the Employee’s share of FICA, FUTA or other taxes. The
Company shall withhold such amounts from such payments to the extent required by applicable law and
remit such amounts to the applicable governmental authorities in accordance with applicable law.

     3. Termination.

          (a) For Cause. The Company shall have the right to terminate this Agreement and to
discharge the Employee for Cause (as defined below), at any time during the term of this Agreement.
Termination for Cause shall mean, during the term of this Agreement, (i) Employee’s conduct that
would constitute under federal or state law either a felony or a misdemeanor involving moral
turpitude, or a determination by the Company’s Board of Directors, after consideration of all
available information and following the procedures set forth below, that Employee has willfully
violated Company policies or procedures involving discrimination, harassment, alcohol or substance
abuse, or work place violence causing material injury to the Company, (ii) Employee’s actions or
omissions that constitute fraud, dishonesty or gross misconduct, (iii) Employee’s knowing and
intentional breach of any fiduciary duty that causes material injury to the Company, and (iv)
Employee’s inability to perform his material duties, after reasonable notice and an opportunity to
resolve the issues, due to alcohol or other substance abuse. Any termination for Cause pursuant to
this Section shall be given to the Employee in writing and shall set forth in detail all acts or
omissions upon which the Company is relying to terminate the Employee for Cause.

     Upon any determination by the Company that Cause exists to terminate the Employee, the Company
shall cause a special meeting of the Board of Directors to be called and held at a time mutually
convenient to the Board of Directors and Employee, but in no event later than ten (10) business
days after Employee’s receipt of the notice that the Company intends to terminate the Employee for
Cause. Employee shall have the right to appear before such special meeting of the Board of
Directors with legal counsel of his choosing to refute such allegations and shall have a reasonable
period of time to cure any actions or omissions which provide the Company with a basis to terminate
the Employee for Cause (provided that such cure period shall not exceed 30 days). A majority of
the members of the Board of Directors must affirm that Cause exists to terminate the Employee. No
finding by the Board of Directors will prevent the Employee from contesting such determination
through appropriate legal proceedings provided that the Employee’s sole remedy shall be to sue for
damages, not reinstatement, and damages shall be limited to those that would be paid to the
Employee if he had been terminated without Cause. In the event the Company terminates the Employee
for Cause, the Company shall only be obligated to continue to pay in the ordinary and normal course
of its business to the Employee his Salary plus accrued but unused vacation time through the
termination date and the Company shall have no further obligations to Employee from and after the
date of termination.

          (b) Resignation by Employee. If the Employee shall resign or otherwise terminate his
employment with the Company at anytime during the term of this Agreement, the

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Employee shall only be entitled to receive his accrued and unpaid Salary and vacation pay
through the termination date, and the Company shall have no further obligations under this
Agreement from and after the date of resignation.

          (c) Termination by Company Without Cause. At any time during the term of this
Agreement the Company shall have the right to terminate this Agreement and to discharge the
Employee without Cause effective upon delivery of written notice to the Employee. Upon any such
termination by the Company without Cause, the Company shall pay to the Employee all of the
Employee’s accrued but unpaid Salary and vacation pay through the date of termination, and
thereafter, the Company: (i) shall continue to pay to the Employee his Salary payable in accordance
with Section 2(a) for six (6) months from the date of termination, when and as the same would have
been due and payable hereunder but for such termination, (ii) shall continue Employee’s health
benefits under the Company’s then health insurance program(s) for six months from the date of
termination (or until Employee’s death or the date on which Employee becomes covered by the health
plan of a subsequent employer, to the extent that either of these events occurs earlier).
Additionally, if Employee is terminated without Cause, all stock options and restricted stock
grants previously granted to him will immediately vest (to the extent not then already vested), and
all such stock options shall remain exercisable for the lesser of the unexpired term of such
options or six months from the date of Employee’s termination. All payments made to the Employee
pursuant to this Section 3(c) are collectively, referred to herein as the “Severance Payment.”
Other than the Severance Payment, the Company shall have no further obligation to the Employee
except for the obligations set forth in Section 12 of this Agreement after the date of such
termination; provided, however, that the Employee shall only be entitled to continuation of the
Severance Payments as long as he is in compliance with the provisions of Sections 6 and 7 of this
Agreement. Additionally, Employee shall be entitled to receive each month for six-months following
the termination of the Employment Period Employee’s monthly portion of the Salary, so long as
Employee is in compliance with Sections 6 and 7 of the Agreement and so long as Employee has not
been terminated for “Cause,” in which case the restrictive covenant shall apply notwithstanding the
payment of severance.

          (d) Disability of the Employee. This Agreement may be terminated by the Company upon
the Disability of the Employee. “Disability” shall mean any mental or physical illness, condition,
disability or incapacity which prevents the Employee from reasonably discharging his duties and
responsibilities under this Agreement for a period of 180 consecutive days. In the event that any
disagreement or dispute shall arise between the Company and the Employee as to whether the Employee
suffers from any Disability, then, in such event, the Employee shall submit to the physical or
mental examination of a physician licensed under the laws of the State of North Carolina, who is
mutually agreeable to the Company and the Employee, and such physician shall determine whether the
Employee suffers from any Disability. In the absence of fraud or bad faith, the determination of
such physician shall be final and binding upon the Company and the Employee. The entire cost of
such examination shall be paid for solely by the Company. In the event the Company has purchased
Disability insurance for Employee, the Employee shall be deemed disabled if he is completely
(fully) disabled as defined by the terms of the Disability policy. In the event that at any time
during the term of this Agreement the Employee shall suffer a Disability and the Company terminates
the Employee’s employment for such Disability, the Company shall continue to pay to the Employee
his Salary, payable in accordance with Section 2(a) for three (3) months from the date of the
termination, when and as the same would have been due and payable hereunder but for such
termination,

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except that payment of the Salary in accordance with said paragraph shall be mitigated to the
extent payments are made to the Employee pursuant to disability insurance programs maintained by
the Company.

          (e) Death of the Employee. In the event of the death of Employee, the employment of
the Employee by the Company shall automatically terminate on the date of the Employee’s death and
the Company shall only be obligated to pay Employee’s estate Employee’s accrued and unpaid Salary
through the termination date plus accrued but unused vacation time through the termination date and
the Company shall have no further obligations to Employee from and after the date of termination.

     4. Termination of Employment by Employee for Change of Control.

          (a) Termination Rights. Notwithstanding the provisions of Section 2 and Section 3 of
this Agreement, in the event that there shall occur a Change of Control (as defined below) of the
Company and within two years after such Change of Control the Employee’s employment hereunder is
terminated by the Company without Cause, then the Company shall be required to pay to the Employee
all accrued but unpaid Salary and vacation pay through the date of termination, plus (i) the
product of two (2) multiplied by the Employee’s then current Salary, plus (ii) the product of two
(2) multiplied by the Bonus that Employee earned with respect to his services in the Fiscal Year
prior to the Fiscal Year in which such termination occurs, assuming that all performance objectives
are met (collectively, the foregoing consideration payable to the Employee shall be referred to
herein as the “Change in Control Payment”). The Change in Control Payment shall be made no later
than 10 days after the Employee’s termination pursuant to this Section 4. To the extent that
payments are owed by the Company to the Employee pursuant to this Section 4, they shall be made in
lieu of payments pursuant to Section 3, and in no event shall the Company be required to make
payments or provide benefits to the Employee under both Section 3 and Section 4. Additionally,
Employee shall be entitled to receive the Change of Control Payment set forth above in the event
that within six months after the term of this Agreement, a Change of Control shall occur.

          (b) Change of Control of the Company Defined. For purposes of this Section 4, a
“Change of Control of the Company” shall be deemed to have occurred if:

               (i) Any “person” (as such term is defined in Sections 13(d)(3) and Section 14(d)(3) of the
Exchange Act), other than the Company, any majority owned subsidiary of the Company, any
compensation plan of the Company, any majority owned subsidiary of the Company or Lacy J. Harber
and his affiliates and/or heirs, becomes the “beneficial owner” (as such term is defined in Rule
13d 3 of the Exchange Act), directly or indirectly, of securities of the Company representing more
than 50% of the combined voting power of the Company; or

               (ii) Any “person” (as such term is defined in Sections 13(d)(3) and Section 14(d)(3) of the
Exchange Act), other than the Company, any majority owned subsidiary of the Company, any
compensation plan of the Company, any majority owned subsidiary of the Company or Lacy J. Harber
and his affiliates and/or heirs), becomes the “beneficial owner” (as such term is defined in Rule
13d 3 of the Exchange Act), directly or indirectly, of securities of the Company representing more
than 35% of the combined voting power of the Company provided: (A) such person or person are not
acting as a “group” (as such term is defined in Rule 13(d) under the Exchange Act) with respect to
the Company’s voting securities with Lacy J.

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Harber and his affiliates and/or heirs and (B) such person or persons own Company securities
with more of the combined voting power of the Company than those held by Lacy J. Harber and his
affiliates and/or heirs; or

               (iii) The shareholders of the Company approve (1) a reorganization, merger, or consolidation
with respect to which persons who were the shareholders of the Company immediately prior to such
reorganization, merger, or consolidation do not immediately thereafter own more than 50% of the
combined voting power entitled to vote generally in the election of the directors of the
reorganized, merged or consolidated entity; (2) a liquidation or dissolution of the Company; or (3)
the sale of all or substantially all of the assets of the Company or of a subsidiary of the Company
that accounts for more than 66 2/3% of the consolidated revenues of the Company, but not including
a reorganization, merger or consolidation of the Company.

     5. Successor To Company. The Company shall require any successor, whether direct or
indirect, to all or substantially all of the business, properties and assets of the Company whether
by purchase, merger, consolidation or otherwise, prior to or simultaneously with such purchase,
merger, consolidation or other acquisition to execute and to deliver to the Employee a written
instrument in form and in substance reasonably satisfactory to the Employee pursuant to which any
such successor shall agree to assume and to timely perform or to cause to be timely performed all
of the Company’s covenants, agreements and obligations set forth in this Agreement (a “Successor
Agreement”). The failure of the Company to cause any such successor to execute and deliver a
Successor Agreement to the Employee shall constitute a material breach of the provisions of this
Agreement by the Company.

     6. Restrictive Covenants. In consideration of his employment and the other benefits
arising under this Agreement, the Employee agrees that during the term of this Agreement, and for a
period of six months following the termination of this Agreement, the Employee shall not directly
or indirectly:

          (a) alone or as a partner, joint venturer, officer, director, member, employee, consultant,
agent, independent contractor or stockholder of, or lender to, any company or business, engage in
any business which competes, directly or indirectly, with any business of the Company; provided,
however, that the beneficial ownership of less than one percent (1%) of the shares of stock of any
corporation having a class of equity securities actively traded on a national securities exchange
or over-the-counter market shall not be deemed, in and of itself, to violate the prohibitions of
this Section; or

          (b) for any reason, (i) induce any customer of the Company or any of its subsidiaries or
affiliates to patronize any business directly or indirectly in competition with the businesses
conducted by the Company or any of its subsidiaries or affiliates in any market in which the
Company or any of its subsidiaries or affiliates does business; (ii) canvass, solicit or accept
from any customer of the Company or any of its subsidiaries or affiliates any such competitive
business; or (iii) request or advise any customer or vendor of the Company or any of its
subsidiaries or affiliates to withdraw, curtail or cancel any such customer’s or vendor’s business
with the Company or any of its subsidiaries or affiliates; or

          (c) for any reason, employ, or knowingly permit any company or business directly or indirectly
controlled by him, to employ, any person who was employed by the

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Company or any of its subsidiaries or affiliates at or within the prior six months, or in any
manner seek to induce any such person to leave his or her employment.

The provisions of this Section 6 shall apply to Employee whether or not Employee’s employment with
the Company has been terminated for Cause or without Cause and whether or not the Company is
required to pay Employee severance benefits under Section 3 of this Agreement. Notwithstanding the
foregoing, if this Agreement expires by its terms at the end of the Employment Period, then the
provisions of this Section 6 shall only apply to Employee if the Company provides Employee with all
of the severance benefits which it would be obligated to provide to him under Section 3(c) of this
Agreement as if the Employee had been terminated from his employment with the Company without
Cause.

     7. Confidentiality. The Employee agrees that at all times during the term of this
Agreement and after the termination of employment for as long as such information remains
non-public information, the Employee shall (i) hold in confidence and refrain from disclosing to
any other party all information, whether written or oral, tangible or intangible, of a private,
secret, proprietary or confidential nature, of or concerning the Company or any of its subsidiaries
or affiliates and their business and operations, and all files, letters, memoranda, reports,
records, computer disks or other computer storage medium, data, models or any photographic or other
tangible materials containing such information (“Confidential Information”), including without
limitation, any sales, promotional or marketing plans, programs, techniques, practices or
strategies, any expansion plans (including existing and entry into new geographic and/or product
markets), and any customer lists, (ii) use the Confidential Information solely in connection with
his employment with the Company or any of its subsidiaries or affiliates and for no other purpose,
(iii) take all precautions necessary to ensure that the Confidential Information shall not be, or
be permitted to be, shown, copied or disclosed to third parties, without the prior written consent
of the Company or any of its subsidiaries or affiliates, and (iv) observe all security policies
implemented by the Company or any of its subsidiaries or affiliates from time to time with respect
to the Confidential Information. In the event that the Employee is ordered to disclose any
Confidential Information, whether in a legal or regulatory proceeding or otherwise, the Employee
shall provide the Company or any of its subsidiaries or affiliates with prompt notice of such
request or order so that the Company or any of its subsidiaries or affiliates may seek to prevent
disclosure. In addition to the foregoing the Employee shall not at any time libel, defame, ridicule
or otherwise disparage the Company.

     8. Specific Performance; Injunction. The parties agree and acknowledge that the
restrictions contained in Sections 6 and 7 are reasonable in scope and duration and are necessary
to protect the Company or any of its subsidiaries or affiliates. If any provision of Section 6 or
7 as applied to any party or to any circumstance is adjudged by a court to be invalid or
unenforceable, the same shall in no way affect any other circumstance or the validity or
enforceability of any other provision of this Agreement. If any such provision, or any part
thereof, is held to be unenforceable because of the duration of such provision or the area covered
thereby, the parties agree that the court making such determination shall have the power to reduce
the duration and/or area of such provision, and/or to delete specific words or phrases, and in its
reduced form, such provision shall then be enforceable and shall be enforced. The Employee agrees
and acknowledges that the breach of Section 6 or 7 will cause irreparable injury to the Company or
any of its subsidiaries or affiliates and upon breach of any provision of such Sections, the
Company or any of its subsidiaries or affiliates shall be entitled to injunctive

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relief, specific performance or other equitable relief, without being required to post a bond;
provided, however, that, this shall in no way limit any other remedies which the Company or any of
its subsidiaries or affiliates may have (including, without limitation, the right to seek monetary
damages).

     9. Notices. All notices, requests, demands, claims and other communications hereunder
shall be in writing and shall be deemed given if delivered by hand delivery, by certified or
registered mail (first class postage pre-paid), guaranteed overnight delivery or facsimile
transmission if such transmission is confirmed by delivery by certified or registered mail (first
class postage pre-paid) or guaranteed overnight delivery to, the following addresses and telecopy
numbers (or to such other addresses or telecopy numbers which such party shall designate in writing
to the other parties): (a) if to the Company, at its principal executive offices, addressed to the
Chief Executive Officer, with a copy to Philip B. Schwartz, Esq., Akerman, Senterfitt & Eidson,
P.A., One Southeast Third Avenue, Miami, Florida 33156; and (b) if to the Employee, at the address
listed on the signature page hereto.

     10. Amendment; Waiver. This Agreement may not be modified, amended, or supplemented,
except by written instrument executed by all parties. No failure to exercise, and no delay in
exercising, any right, power or privilege under this Agreement shall operate as a waiver, nor shall
any single or partial exercise of any right, power or privilege hereunder preclude the exercise of
any other right, power or privilege. No waiver of any breach of any provision shall be deemed to
be a waiver of any preceding or succeeding breach of the same or any other provision, nor shall any
waiver be implied from any course of dealing between the parties. No extension of time for
performance of any obligations or other acts hereunder or under any other agreement shall be deemed
to be an extension of the time for performance of any other obligations or any other acts. The
rights and remedies of the parties under this Agreement are in addition to all other rights and
remedies, at law or equity, that they may have against each other.

     11. Assignment; Third Party Beneficiary. This Agreement, and the Employee’s rights
and obligations hereunder, may not be assigned or delegated by him. The Company may assign its
rights, and delegate its obligations, hereunder to any affiliate of the Company, or any successor
to the Company or its aviation services business, specifically including the restrictive covenants
set forth in Section 6 hereof. The rights and obligations of the Company under this Agreement
shall inure to the benefit of and be binding upon its respective successors and assigns.

     12. Severability; Survival. In the event that any provision of this Agreement is
found to be void and unenforceable by a court of competent jurisdiction, then such unenforceable
provision shall be deemed modified so as to be enforceable (or if not subject to modification then
eliminated herefrom) to the extent necessary to permit the remaining provisions to be enforced in
accordance with the parties intention. The provisions of Sections 6 and 7 will survive the
termination for any reason of the Employee’s relationship with the Company.

     13. Indemnification. The Company agrees to indemnify the Employee during the term and
after termination of this Agreement in accordance with the provisions of the Company’s certificate
of incorporation and bylaws and the Delaware General Corporation Law.

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     14. Counterparts. This Agreement may be signed in any number of counterparts, each of
which shall be an original but all of which together shall constitute one and the same instrument.

     15. Governing Law. This Agreement shall be construed in accordance with and governed
for all purposes by the laws of the State of North Carolina applicable to contracts executed and to
be wholly performed within such State.

     16. Entire Agreement. This Agreement contains the entire understanding of the parties
in respect of its subject matter and supersedes all prior agreements and understandings (oral or
written) between or among the parties with respect to such subject matter.

     17. Headings. The headings of Paragraphs and Sections are for convenience of
reference and are not part of this Agreement and shall not affect the interpretation of any of its
terms.

     18. Construction. This Agreement shall be construed as a whole according to its fair
meaning and not strictly for or against any party. The parties acknowledge that each of them has
reviewed this Agreement and has had the opportunity to have it reviewed by their respective
attorneys and that any rule of construction to the effect that ambiguities are to be resolved
against the drafting party shall not apply in the interpretation of this Agreement.

     19. Resolution of Disputes. Any disputes arising under or in connection with this
Agreement shall be resolved by third party mediation of the dispute and, failing that, by binding
arbitration to be held in Greensboro, North Carolina in accordance with the rules and procedures of
the American Arbitration Association. Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof.

[Signatures on Next Page]

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

	 	 	 	 	 
	

	 	TIMCO AVIATION SERVICES, INC.,

a Delaware corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Roy T. Rimmer, Jr.
	

	 	 	 	 
	

	 	 	 	Roy T. Rimmer, Jr., Chairman and CEO
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	EMPLOYEE:
	 
	 	 	 	 
	

	 	/s/ Kevin Carter
	

	 	 
	

	 	KEVIN CARTER
	 
	 	 	 	 
	

	 	Address for Notices:
	

	 	_____________________
	

	 	_____________________
	

	 	_____________________

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                                                                    Exhibit 10.1

                                      BANK
                              EMPLOYMENT AGREEMENT

This agreement made and entered into this 11th day of December, 1997, between
the FIRST NATIONAL BANK OF MANATEE, Bradenton, Florida (the "Bank") and FRANCIS
I. duPONT III ("employee") which is effective as of January 1, 1998;

WHEREAS, the Bank is a national bank, regulated by the Office of the Comptroller
of the Currency, insured by the Federal Deposit Insurance Corporation and
located in Bradenton, Florida; and

WHEREAS, the Bank wants to employ the employee as Chairman and CEO of the Bank
under the terms of this Agreement which supersedes and supplants all prior
agreements; and

WHEREAS, the parties desire to enter into this Agreement setting forth the terms
and conditions of the employment relationship of the Bank and the employees.

NOW THEREFORE, it is agreed as follows:

I.  RELATIONSHIP ESTABLISHED AND DUTIES

      1.          The bank hereby will employ the employee as Chairman and CEO
            to hold the title of Chairman and CEO and to perform such services
            and duties as the Board of Directors may, from time to time,
            designate during the term hereof. Subject to the terms and
            conditions hereof, employee will perform such duties and exercise
            such authority as are customarily performed and exercised by person
            hold such office, subject to the general direction of the Board of
            Directors of the Bank, exercised in good faith in accordance with
            standards of reasonable business judgment.

      2.          Employee accepts such employment and shall devote his full
            time, attention, and efforts to the diligent performance of his
            duties herein specified and as an officer and director of the bank
            and will not accept employment with any other individual,
            corporation, partnership, governmental authority, or any other
            entity, or engage any other venture for profit which the Board of
            Directors of the Bank may consider to be in conflict with the Bank's
            best interest or to be in competition with the Bank's business, or
            which may interfere in any way with the employee's performance of
            his duties hereunder. Any exception to this must be made by
            notification and written approval of the Board of Directors.

<PAGE>

II.  TERMS OF EMPLOYMENT

1.    The initial term of employment under this Agreement shall continue for
      three (3) years unless such is terminated pursuant to the terms hereof or
      by the first to occur of the conditions to be stated hereinafter. This
      Agreement will be automatically renewed each year for an additional
      three-year period unless either party gives written notice to the other to
      the contrary at least ninety (90) days prior to December 31st of any year
      in which this Agreement is in effect. The term previously stated,
      notwithstanding this Agreement, shall be terminated by the earlier to
      occur of any of the following:

                  a)    The death of the employee;

                  b)    The permanent disability of employee. "Permanent
                        disability" as used herein shall mean the inability of
                        employee, due to illness, accident or other physical or
                        mental incapacity to perform the services provided for
                        here in for the period as provided in our bank group
                        policy; provided, however, permanent disability shall
                        not constitute a basis for discharge for cause; in
                        addition, temporary disability shall not constitute a
                        basis for termination of the Agreement;

                  c)    The discharge of employee by the Bank for cause. "Cause"
                        as used herein shall mean:

                        1)    Such negligence or misconduct as shall constitute,
                              as a matter of law, a breach of the covenants and
                              obligations of employee hereunder;

                        2)    Failure or refusal of employee to comply with the
                              provisions of this Agreement;

                        3)    Conviction of a crime involving moral turpitude or
                              such other crime as shall, in the opinion of the
                              Board, result in a lack of confidence in the
                              honesty or moral character of employee;

                        4)    Required by regulatory authority having
                              jurisdiction over the bank.

2.    The employee may, at the discretion of the Board of Directors of the Bank,
      cease to be employed as Chairman and CEO at age 65, but may continue as a
      member of the Board of Directors even if he no longer holds that office
      until the mandatory age for retirement for directors then in effect.

3.    Termination by the bank of employee's employment for cause shall
      constitute a tender by employee of his resignation as an officer and
      director of the bank.

4.    In the event of termination for reasons other than death, disability or
      cause, the employee is entitled to the remaining compensation under this
      Agreement and severance pay equal to one month's pay for each year
      employed by the bank.

5.    In the event the employment is terminated by death or disability in the
      latter half of a calendar year, employee shall be entitled to any bonus to
      which he would have been entitled had he been employed on the last day of
      the year.

III.  COMPENSATION

            For all services which employee may render to the bank during the
term hereof, the Bank shall pay to employee, subject to such deductions as may
be required by law:

            1.          Base Salary. 1998 annual salary (but not less then the
                  1997 salary of $129,448), payable in equal bi-monthly
                  installments and subject to such deductions as may be required
                  by law, for the first twelve (12) months. Thereafter, annual
                  increase reviews will be done during the month of December for
                  a January 1 effective increase date during the term of this
                  Agreement so that for the twelve (12) months beginning on each
                  such anniversary date, the employee's salary increases will
                  take effect. The Board has sole discretion as to the amount of
                  the CEO's compensation, but not less than the prior calendar
                  year's salary.

            2.          Performance Bonuses. Each year a performance bonus will
                  be awarded in accordance with

<PAGE>

                  the bonus plan then in effect as adopted by the Board of
                  Directors of the Bank.

IV.  OTHER BENEFITS

1.    The employee shall be entitled to participate in any plan of the Bank
      relating to stock options, stock purchases, profit sharing, group life
      insurance, medical coverage, education, or other retirement or employee
      benefits that the Bank may adopt for the benefit of its employees.

2.    The employee shall be eligible to participate in other benefits which may
      be or become applicable to the Bank's executive employees, and shall be
      furnished a car with all expenses of maintenance to cover all automobile
      use, a reasonable expense account (including club dues and membership
      fees), the payment of reasonable expenses for attending annual and
      periodic meetings of trade associations and any other benefits which are
      commensurate with the responsibilities and functions to be performed by
      the employee under this Agreement. The Bank also agrees to pay all
      reasonable expenses in connection with the attendance and participation at
      said trade association meetings by employee's spouse.

3.    At such reasonable times as the Board of Directors shall in its discretion
      permit, the employee shall be entitled, without loss of pay, to absent
      himself voluntarily from the performance of his employment under this
      Agreement, all such voluntary absences to count as vacation time provided
      that:

                  a)    The employee shall be entitled to an annual vacation of
                        four (4) weeks per year. The employee shall schedule at
                        least two consecutive weeks of vacation each year.

                  b)    The timing of the vacations shall be scheduled in a
                        reasonable manner by the employee. The employee shall
                        not be entitled to receive any additional compensation
                        from the Bank on account of his failure to take a
                        vacation; not shall he be entitled to accumulate unused
                        vacation time from one calendar year to the next without
                        permission of the Board of Directors.

                  c)    In additional to the aforesaid paid vacation, the
                        employee shall be entitled without loss of pay, to
                        absent himself voluntarily from the performance of his
                        employment with the Bank for such additional period of
                        time and for such valid and legitimate reasons as the
                        Board of Directors in its discretion may determine.
                        Further, the Board of Directors shall been entitled to
                        grant to the employee a leave or leaves of absence with
                        or without pay at such time or times and upon such terms
                        and conditions as the Board, in its discretion, may
                        determine.

4.    Bank shall reimburse employee the medical bills and associated costs of an
      annual physical examination, up to $1,500.00 per year.

V.  CHANGE OF CONTROL

1.    If during the term of this Agreement there is a change of control ("COC")
      of the bank, and the employee is terminated or resigns during the first
      120 days following the COC, the employee shall immediately be entitled to
      an amount equal to three times his then existing salary. If after 120 days
      the employee is terminated, he shall immediately be entitled to the
      remaining compensation due under the Agreement including severance pay.
      Either amount due under this paragraph shall be in addition to any amounts
      otherwise owed to the employee pursuant to this Agreement. The term
      "control" shall refer to the acquisition of twenty-five (25%) or more of
      the voting securities of the Bank by any person or persons acting as a
      group within the meaning of Section 13(d) of the Securities Exchange Act
      of 1934 or to such acquisition of a percentage between ten percent (10%)
      and twenty-five percent (25%) if the Board of Directors of the Bank or the
      Comptroller of the Currency, the FDIC of the Federal Reserve Bank have
      made a determination that such acquisition constitutes or will constitute
      control of the Bank. The term "person" refers to an individual,
      corporation, bank, bank holding company or other entity.

2.    The following items are automatically considered due and payable in the
      event that COC occurs:

<PAGE>

                  a)    Non-forfeitable deferred compensation shall be
                        distributed as directed by the employee.

                  b)    All performance bonus payments as described in Section
                        III.2 shall be declared accomplished and earned for the
                        full year based upon performance up to date for the year
                        in which the COC occurs.

                  c)    In the event that the employee is a participant in a
                        stock plan or share option plan and such plan is
                        terminated involuntarily as a result of the COC, all
                        stock and options shall be declared 100% vested and
                        distributed.

VI.  POST TERMINATION COVENANTS

1.    If during the term hereof employee shall be terminated for cause
      hereunder, then employee agrees that for six (6) months or if employee
      resigns from employment then for one (1) year, he will not be employed in
      the banking business or any related field thereto in Bradenton, Florida or
      Manatee County, Florida. Furthermore, following such termination, employee
      agrees that he will not, without the prior written consent of the Bank:

                  a)    Furnish anyone with the name of, or any list or lists
                        of, customers of the Bank or utilize such list or
                        information himself for banking purposes; or

                  b)    Furnish, use or divulge to anyone any information
                        acquired by him from the Bank relating to the Bank's
                        methods of doing business; or

                  c)    Contact directly or indirectly any customer of the Bank
                        for banking solicitation purposes, or

                  d)    Hire for any other Bank or employer (including himself)
                        any employee of the Bank or directly or indirectly cause
                        such employee to leave his or her employment to work for
                        another.

2.    It is understood and agreed by the parties hereto that the provisions of
      this section are independent of each other and the invalidity of any such
      provision or portion thereof shall not affect the validity or
      enforceability of another provisions of this Agreement.

VII.  WAIVER OF PROVISIONS

            Failure of any of the parties to insist, in one of more instances,
      on performance by the others in strict accordance with the terms and
      conditions of this Agreement shall not be deemed a waiver or
      relinquishment of any right granted hereunder of the future performance of
      any such term or condition or of any other term or condition of this
      Agreement, unless such waiver is contained in a writing signed by or on
      behalf of all the parties.

VIII.  GOVERNING LAW

            This agreement shall be governed by and construed and enforced in
      accordance with the laws of the State of Florida. If for any reason any
      provision of this Agreement shall be held by a court of competent
      jurisdiction to be void or unenforceable, the same shall not affect the
      remaining provisions thereof.

IX.  MODIFICATION AND AMENDMENT

<PAGE>

            The agreement contains the sole and entire agreement among the
      parties hereto and supersedes all prior discussions and agreements among
      the parties and any such prior agreements shall, from and after the date
      hereof, be null and void. This agreement shall not be modified or amended
      except by an instrument in writing signed by or on behalf of the parties
      hereto.

X.  COUNTERPARTS AND HEADINGS

            This agreement may be executed simultaneously in any number of
      counterparts, each of which shall be deemed an original but all of which
      shall constitute one and the same instrument. The headings set out herein
      are for convenience of reference and shall not be deemed a part of this
      Agreement.

XI.  AGREEMENT NONASSIGNABLE

            This agreement may not be assigned or transferred by any party
      hereto, in whole or in part, without the prior written consent of the
      other.

XII.  ATTORNEYS' FEES

            In the event of litigation, the non-prevailing party shall pay the
      legal fees, expenses and costs incurred by the prevailing party through
      appeal.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
month, day and year first above written.

                                           FIRST NATIONAL BANK OF MANATEE

/s/ Darcy Lawn                        By:  /s/ Glen W. Fausset
---------------------------               -------------------------------
Signature - Witness                             Its: President
                                               Representing the Full Board
                                               Dated: December 11, 1997

/s/ Darcy Lawn                             /s/ Francis I. duPont, III
---------------------------               -------------------------------
Signature - Witness                            FRANCIS I. duPONT III

                                               Dated: December 11, 1997

<PAGE>
FIRST AMENDMENT TO
                                      BANK
                              EMPLOYMENT AGREEMENT

      This First Amendment to Bank Employment Agreement made and entered into
this 17th day of March, 1999, between the FIRST NATIONAL BANK OF MANATEE,
Bradenton, Florida (the "Bank"), and FRANCIS I. duPONT, III ("Employee") which
is effective as of January 1, 1999;

      WHEREAS, the Bank is now a wholly owned subsidiary of First National
Bancshares, Inc. ("Holding Company");

      WHEREAS, the Bank and Employee entered into a Bank Employment Agreement on
December 11, 1997, which Agreement was effective January 1, 1998 ("Agreement");

      WHEREAS, the Bank and Employee have agreed to amend the Agreement and
Holding Company joins herein to acknowledge its obligations under paragraphs 2
and 3 below;

      NOW THEREFORE, the parties have agreed to amend the Agreement as follows:

      1.    Any language contained in the Agreement to the contrary
notwithstanding, Employee' employment by First National Bancshares, Inc. shall
not be deemed a violation of the Agreement.

      2.    Paragraphs 1 and 2 of Section IV of the Agreement entitles the
Employee to certain benefits including participation in "any plan of the Bank
relating to stock options, stock purchases, profit sharing, group life
insurance, medical coverage, education or other retirement or employee
benefits". Said paragraphs are hereby amended to state that the Employee is
entitled to any such benefits from the Holding Company as well as the Bank.

      3.    Section V of the Agreement is amended to include on the same basis a
"change in control" of the Holding Company as well as control of the Bank and to
provide that in the event of a "change of control" as defined in that paragraph,
the Employee shall be entitled to the remedies and benefits provided.

      4.    The Agreement is amended to recognize the fact that at the present
time, the Bank has a "discretionary bonus" plan in effect, and further in the
event of "change of control" as defined in said Agreement, occurs other than at
the end of a year, such a bonus is declared earned for a full year based upon
performance up to the date upon which any such change of control is accomplished
and that such bonus shall in no event be less than the prior full year's bonus.

<PAGE>

      5.    Section IV, Paragraph 4, of the Agreement is amended to provide as
follows: Bank shall reimburse Employee the medical bills and associated costs of
an annual physical examination up to $1,500 per year; in the event the Employee
does not utilize all of the $1,500 in any one year, such benefits not utilized
shall be added to the amount which is to be reimbursed for such purposes in the
following year.

      IN WITNESS WHEREOF, the parties hereto have executed this First Amendment
to Bank Employment Agreement as of the month, day and year first above written.

                                                FIRST NATIONAL BANK OF MANATEE

/s/ Maryellen Brennan                      By:  /s/ Glen W. Fausset
-----------------------------                  -------------------------------
Signature - Witness                                 Glen W. Fausset
                                                Its: President
                                                Representing the Full Board

                                        DATED: MARCH 17, 1999

/s/ Maryellen Brennan                           /s/ Francis I. duPont, III
-----------------------------                  --------------------------------
Signature - Witness                             FRANCIS I. duPONT, III, Employee

                                        DATED: MARCH 17, 1999

                                     JOINDER

      FIRST NATIONAL BANCSHARES, INC., pursuant to authorization by its Board of
Directors, joins in this Agreement to acknowledge its obligations to Employee
under the provisions of Paragraphs 2 and 3 above and, to the extent necessary to
the enforcement of these obligations, under the Agreement as well.

                                           FIRST NATIONAL BANCSHARES, INC.

                                           By:  /s/ Glen W. Fausset
                                               --------------------------------
                                                Glen W. Fausset
                                           Its: President

<PAGE>
AMENDMENT TO EMPLOYMENT CONTRACT

      This amendment to the Employment Agreement by and between 1st National
Bank & Trust (the "Bank") and Francis I. duPont, III. (the "Executive") dated
March 17, 1999 (the "Employment Agreement") is made this 22nd day of December
2004.

      For good and valuable consideration, the sufficiency of which is
acknowledged by the parties hereto, the Bank and the Executive make hereby amend
the Employment Agreement as follows:

1.    Notwithstanding any other provision of this Agreement or of any other
agreement, contract or understanding heretofore or hereafter entered into by you
and the Company, you shall not have any right to receive any payment or other

<PAGE>

benefit under this Agreement if such payment or benefit, taking into account all
other payments to or benefits received by you, would cause any payment to you
under this Agreement to be considered a "parachute payment" within the meaning
of Section 280G(b)(2) of the Internal Revenue Code (a "Parachute Payment"). In
the event that the receipt of any such payment or benefit under this Agreement
would cause you to be considered to have received a Parachute Payment under this
Agreement, then you shall have the right, in your sole discretion, to designate
those payments or benefits under this Agreement which should be reduced or
eliminated so as to avoid having the payment to you under this Agreement be
deemed to be a Parachute Payment.

      Unless the Bank and the Executive otherwise agree in writing, any
determination of the value the severance and other benefits provided for
Executive under the terms of this Agreement or otherwise includable in the
calculation of the Parachute Payment, shall be made in writing by the Bank's
independent public accountants (the "Accountants"), whose determination shall be
conclusive and binding upon the Executive and the Bank for all purposes. For
purposes of making the calculations required by this Paragraph 1, the
Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Bank and
the Executive shall furnish to the Accountants such information and documents as
the Accountants may reasonably request in order to make a determination under
this Paragraph 1. The Bank shall bear all costs the Accountants may reasonably
incur in connection with any calculations contemplated by this Paragraph 1.

2.    The Bank is a wholly owned subsidiary of First National Bancshares, Inc.
(the "Company") and the Company has agreed to join in and be bound by the terms
of the Employment Agreement as amended hereby and to guarantee all amounts due
Executive under the terms of the Employment Agreement as amended hereby whether
the Employment Agreement is enforceable against the Bank or not as though the
Employment Agreement were entered into directly by the Company with Executive.
In every instance in which the term "Bank" appears in the Employment Agreement
or herein, such shall be read as, and shall mean "Bank" and/or "Company."

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the month, day and year first above written.

                                               1st NATIONAL BANK & TRUST

/s/ Angela O'Reilly                        By: /s/ Glen W. Fausset
----------------------------                   ------------------------------
Signature - Witness                            Its: President
                                                    Representing the Full Board

                                               Dated: November 23, 2004

/s/ Angela O'Reilly                            /s/ Francis I. duPont, III
----------------------------               -----------------------------------
Signature - Witness                        FRANCIS I. duPONT, III

                                               Dated: November 23, 2004

                                               FIRST NATIONAL BANCSHARES, INC.

/s/ Angela O'Reilly                        By: /s/ Glen W. Fausset
----------------------------               -----------------------------------
Signature - Witness                            Its: President
                                                    Representing the Full Board

                                                    Dated: November 23, 2004

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