Document:

Exhibit 10.40

EXHIBIT No. 10.40

December 23, 2008

Via Hand Delivery

William C. Adams

100 North Main Street

Greeneville, Tennessee 37743

Dear Mr. Adams,

Green Bankshares, Inc. (the “Company”) anticipates entering into a Securities Purchase Agreement
(the “Participation Agreement”), with the United States Department of Treasury (“Treasury”) that
provides for the Company’s participation in the Treasury’s TARP Capital Purchase Program (the
"CPP”). If the Company does not participate or ceases at any time to participate in the CPP, this
letter shall be of no further force and effect.

For the Company to participate in the CPP and as a condition to the closing of the investment
contemplated by the Participation Agreement, the Company is required to establish specified
standards for incentive compensation to its senior executive officers and to make changes to its
compensation arrangements. To comply with these requirements, and in consideration of the benefits
that you will receive as a result of the Company’s participation in the CPP, you agree as follows:

	 	(1)	 	No Golden Parachute Payments. The Company is prohibiting any golden parachute
payment to you during any “CPP Covered Period”. A “CPP Covered Period” is any period
during which (A) you are a senior executive officer and (B) Treasury holds an equity or
debt position acquired from the Company in the CPP.

	 	(2)	 	Recovery of Bonus and Incentive Compensation. Any bonus and incentive
compensation paid to you during a CPP Covered Period is subject to recovery or
“clawback” by the Company if the payments were based on materially inaccurate financial
statements or any other materially inaccurate performance metric criteria.

	 	(3)	 	Compensation Program Amendments. Each of the Company’s compensation, bonus,
incentive and other benefit plans, arrangements and agreements (including golden
parachute, severance and employment agreements) (collectively, “Benefit Plans”) with
respect to you is hereby amended to the extent necessary to give effect to provisions
(1) and (2). For reference, certain affected Benefit Plans are set forth in Appendix A
to this letter.

	 
	 	 	 	In addition, the Company is required to review its Benefit Plans to ensure that they
do not encourage senior executive officers to take unnecessary and excessive risks
that threaten the value of the Company. To the extent any such review requires
revisions to any Benefit Plan with respect to you, you and the Company agree to
negotiate such changes promptly and in good faith.

	 	(4)	 	Definitions and Interpretation. This letter shall be interpreted as follows:

	 	•	 	“Senior executive officer” means the Company’s “senior executive officers”
as defined in subsection 111(b)(3) of EESA.

	 	•	 	“Golden parachute payment” is used with same meaning as in Section
111(b)(2)(C) of EESA.

 

 

 

William C. Adams

December 23, 2008

Page 2

	 	•	 	“EESA” means the Emergency Economic Stabilization Act of 2008 as implemented
by guidance or regulation issued by the Department of the Treasury and as
published in the Federal Register on October 20, 2008.

	 	•	 	The term “Company” includes any entities treated as a single employer with
the Company under 31 C.F.R. § 30.1(b) (as in effect on the Closing Date). You
are also delivering a waiver pursuant to the Participation Agreement, and, as
between the Company and you, the term “employer” in that waiver will be deemed
to mean the Company as used in this letter.

	 	•	 	The term “CPP Covered Period” shall be limited by, and interpreted in a
manner consistent with, 31 C.F.R. § 30.11 (as in effect on the Closing Date).

	 	•	 	Provisions (1) and (2) of this letter are intended to, and will be
interpreted, administered and construed to, comply with Section 111 of EESA
(and, to the maximum extent consistent with the preceding, to permit operation
of the Benefit Plans in accordance with their terms before giving effect to
this letter).

	 	(5)	 	Miscellaneous. To the extent not subject to federal law, this letter will be
governed by and construed in accordance with the laws of Tennessee. This letter may be
executed in two or more counterparts, each of which will be deemed to be an original. A
signature transmitted by facsimile will be deemed an original signature.

 

 

 

William C. Adams

December 23, 2008

Page 3

The Board appreciates the concessions you are making and looks forward to your continued leadership
during these financially turbulent times.

Yours sincerely,

Green Bankshares, Inc.

	 	 	 	 	 
	By: 

	 	/s/ Steve D. Ottinger
 

Name: Steve D. Ottinger
	 	 
	 

	 	Title:   Senior Vice President and	 	 
	 

	 	Chief Human Resources Officer
	 	 

 

 

 

William C. Adams

December 23, 2008

Page 4

Intending to be legally bound, I agree with and accept the foregoing terms on the date set forth
below.

	 	 	 
	/s/ William C. Adams
 

William C. Adams

	 	 
	Date: December 23, 2008
	 	 
	 
	 	 
	cc: William C. Adams, via Hand Delivery
	 	 

 

 

 

Appendix A

Green Bankshares, Inc. 2004 Long-Term Incentive Plan and all stock option, stock appreciation right
and restricted share awards thereunder.

Employment Agreement by and between Green Bankshares, Inc. and R. Stan Puckett dated December 31,
2007

Employment Agreement by and between Green Bankshares, Inc. and Kenneth R. Vaught dated December 31,
2007

Green County Bank (n/k/a GreenBank) Executive Deferred Compensation Agreement by and between
GreenBank and R. Stan Puckett dated March 11, 2005

Green County Bank (n/k/a GreenBank) Executive Deferred Compensation Agreement by and between
GreenBank and R. Stan Puckett dated March 11, 2005

Greene County Bancshares, Inc. (n/k/a Green Bankshares, Inc.) Change in Control Protection Plan

Greene County Bancshares, Inc. (n/k/a Green Bankshares, Inc.) Change in Control Protection Plan
Participation Agreement between Green Bankshares, Inc. and Steve Droke

Greene County Bancshares, Inc. (n/k/a Green Bankshares, Inc.) Change in Control Protection Plan
Participation Agreement between Green Bankshares, Inc. and James E. AdamsExhibit 10.41

EXHIBIT No. 10.41

GREENE COUNTY BANCSHARES, INC.

CHANGE IN CONTROL PROTECTION PLAN

Participation Agreement

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

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

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

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

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

NOW, THEREFORE, the parties hereby AGREE as follows:

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

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

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

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

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

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

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

ACCEPTED AND AGREED TO this 22nd day of October, 2004.

	 	 	 	 	 	 	 	 	 
	The “Employee”:	 	 	 	The “Company”:	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ William C. Adams
 

	 	 	 	By:
	 	/s/ R. Stan Puckett
 

A Duly Authorized OfficerExhibit 4.1

Exhibit 4.1

	COMMON STOCK COMMON STOCK

	NUMBER

	PAG Customer Services, Inc. CUSIP 000185e 10 6

	SEE REVERSE FOR CERTAIN DEFINITIONS INCORPORATED UNDER THE
LAWS OF THE STATE OF ILLINOIS

	THIS IS TO CERTIFY THAT

	FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, PAR VALUE $.01, OF

	APAC CUSTOMER SERVICES, tnc.

	transferable on the books of the corporation by the holder hereof in person or by duly authorized
attorney, upon surrendr of this Certificate properly endorsed. This Certificate is not valid
unlesscounter signed by the transfer Agent and registered by the registerar. WITNESS the facsimile
seal of the corporation and the facsmile signatures of its duly authorized officers.

	Dated:

 

 

 

	APAC CUSTOMER SERVICES, INC.

	Upon written request, the Corporation will furnish to the holder hereof, without charge, a
full statement of all the designations, preferences, qualifications, limitations, restrictions,
and special or relative rights of the shares of each class of authorized capital stock; and the
variations in the relative rights and preferences determined for each series; and the authority of
the Board of Directors to fix and determine the relative rights and preferences of a subsequent
series.

	ASSIGNMENT

	The following abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	TEN COM- as tenants in common
 _____ 
UNIF GIFT MIN ACT- ...... Custodian
TEN ENT- as tenants by the entireties (Cust) (Minor)
JT TEN- as joint tenants with
 _____ 
under Uniform Gifts to Minors
right of survivorship and
not as tenants in common
 _____ 
Act
(State)

	UNIF TRF MIN ACT- Custodian (until age .. ) .......
(Gust)

 _____ 
...... under Uniform Transfers

	(Minor)

	to Minors Act

	(State)
Additional abbreviations may also be used though not in the above list.
for value received, ................ hereby self assign and trnsfer unto

	PLEASE INSERT SOCIAL SECURITY OR OTHFR
IDENTIFYING NUMBER OF ASSIGNEE

	(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

	•Shares

	of the stock represented by the writhin certificate and do hereby unrevoably constituter

and appoint

	Attorney

	to transfer the said shares an the books of the within named companation with full howex of
substitution in the premises.

	Dated

	AFFIX MEDALLION SIGNATURE

	GUARANTEE IMPRINT BELOW

	ABOVE SIGNATURE(S) TO THE ASSIGNMENT MUST CORRESPOND WITH THE NAME
AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATEVER.

	THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION SUCH AS A SECURITIES BROKER/DEALER. COMMERCIAL BANK.
TRUST COMPANY, SAVINGS ASSOCIATION OR A CREDIT UNION PARTICIPATING
IN A MEDALLION PROGRAM APPROVED BY THE SECURITIES TRANSFER
ASSOCIATION INC.

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