Document:

Exhibit 10.4(e2)

TEXT OF NOTICE ANNOUNCING MODIFICATION OF
PERFORMANCE GOAL

CALCULATION METHOD RELATED TO 2008 EXECUTIVE AWARDS OF

PERFORMANCE RESTRICTED STOCK

	
 

	
 

	
Note:

	
The Corporation issued two types of
 performance-based awards in 2008, one (performance restricted stock)
 primarily for executives and one (LTI Units) which executives did not
 receive. Both types used the same performance goal. The following notice was
 written for and sent to LTI recipients, but also applied to the executives’
 performance goal and was sent to them.

	
 

	
 

	

Changes
to the Earnings Per Share (EPS) Targets for the Long-Term Incentive Cash Unit
and Performance Restricted Stock

In April of this year, you received a cash-based long-term incentive
units award (LTIs), with vesting subject to achieving an annual EPS of $2 per
share by the end of 2012. 

The issuance of approximately 70 million additional shares in May
diluted this performance target and further dilution will occur as dividends
are paid in stock. 

To address this issue, the Company recently approved a change in the
performance target for the LTI program. A straight formula will be used to
adjust the $2 earnings target as follows:

	
 

	
 

	
 

	
 

	
●

	
Multiply $2 by a fraction, of which the numerator is 126 million
 shares (outstanding shares when the target was set) and the denominator is
 the number of actual shares outstanding at the end of the performance year
 (Example: if 200 million shares are outstanding at the end of the year, the
 EPS target for that performance year would be 126/200 × $2 = $1.26)
 

What does this mean? At the time when the awards are scheduled to vest,
the revised formula will be applied and award vesting will be determined based
on this adjusted performance criteria.EXHIBIT 10.5(k)

 

SECTIONS OF DIRECTOR POLICY

PERTAINING TO COMPENSATION AND RETIREMENT

 

(As amended February 17, 2009)

 

This exhibit sets forth excerpts from the Director Policy of First Horizon National Corporation of all sections in that Policy pertaining to compensation and retirement of directors.  Other sections of the Policy have been omitted.

 

 

 

I. STATEMENT OF POLICY

* * * * *

Compensation

     

	
             
 	
            Annual Retainer
 	
            Daily Board Attendance Fee
 	
            Daily Audit Committee Attendance Fee
 	
            Daily Attendance Fee—All Other Committees
 
	
          FHNC and FTB (jointly)

 
 	
      $45,000
 	
      $2,000
 	
      $2,000
 	
  $1,500
 
	
            Chairman, Audit Committee

 
 	
             
 	
             
 	
            $5,000 (inclusive of attendance fees)
 	
             
 
	
          Chairman, Compensation Committee

 
 	
       
 	
       
 	
       
 	
  $4,000 (inclusive of attendance fees)
 
	
            Chairman, Nominating and Corporate Governance Committee

 
 	
             
 	
             
 	
             
 	
            $4,000 (inclusive of attendance fees)
 
	
      Chairman, Trust Committee
 	
       
 	
       
 	
       
 	
  $4,000 (inclusive of attendance fees)
 

 

Unless payment is deferred under a duly adopted Company plan or agreement, the annual retainer will be paid quarterly in advance, and the attendance fees will be paid following the meeting.  Directors are permitted to elect to defer into an interest-accruing account or the First 

 

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Horizon National Corporation Non-Qualified Deferred Compensation Plan or any other duly adopted deferral plan, now existing or hereafter approved.

 

To improve the directors’ knowledge and understanding of FHNC and FTB and their markets, customers and officers and to enhance each director’s service as a director of FHNC, FHNC’s non-employee directors are encouraged to become, where practicable, members of one of FTB’s Regional Boards.  A director who becomes a member of a Regional Board shall not be compensated as a member of the Regional Board but shall receive attendance fees for attendance at Regional Board meetings (at the same rate as is paid for other Regional Board members, not to exceed $500 per meeting) as part of his or her FHNC director compensation.  Such director shall report back to the FHNC Board regarding his or her attendance at Regional Board meetings.  Membership by an FHNC director on a Regional Board is deemed by FHNC’s Board of Directors to be part of the FHNC director’s service as a
director of FHNC.

 

In addition to retainer and attendance fees, non-employee directors will receive an annual award of restricted stock units (“RSUs”) under the Company’s 2003 Equity Compensation Plan, or any duly adopted successor plan.  Director RSUs: generally will be granted annually in April on the first trading day which begins after the first trading-day session that follows the release of quarterly earnings for the first quarter; will vest on the second Monday in February following the grant; will be paid at vesting in shares of the Company’s common stock only; will earn dividend equivalents that will cumulate and be paid in cash at vesting; and will carry no voting or other rights associated with actual stock.  When vesting occurs, shares will be delivered reasonably promptly thereafter but in no event later than March 14 following the vesting date.  If a director leaves the
Board before vesting, the RSUs will be forfeited unless the departure is due to death, disability, retirement, or change in control. The number of director RSUs to be granted for any full-year grant will be determined by dividing $45,000 by the fair market value of the Company’s common stock on the grant date. Beginning in 2007, RSU grants will be phased in for each director on a pro-rata basis as his or her outstanding restricted shares vest. As a result of the phase-in, each director will have one of the following occur each year: 800 restricted shares will vest; or, a full grant of RSUs will vest; or, a combination of restricted shares (less than 800) and RSUs (less than 100%) will vest. If a new non-employee director joins the Board other than at an annual meeting, he or she would be granted RSUs pro-rated for the number of quarters remaining until the next annual shareholder meeting, starting with that quarter in which the new director is appointed. For example, a new
non-employee director appointed in October would receive two-fourths of the usual annual number of RSUs, granted in October one full business day following the registrant’s earnings release and vesting the following year in February.

 

For purposes of non-employee director equity-based awards: “disability” means total and permanent disability; “retirement” means any termination, not caused by death or disability, after the attainment of age 65 or ten years of service as a director of the Company; and, “fair market value” and “change in control” have the meanings given in the plan under which the award was granted.

 

The foregoing equity-based awards are to be made automatically without further action by the Board. However, in a particular case or circumstance, the Board may change or make specific exceptions to any equity award otherwise called for above. Directors may receive such 

 

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other awards under the Company’s 2003 Equity Compensation Plan, or any duly adopted successor plan, as may be approved by the Board.  Perquisites and other benefits for non-employee directors are to be provided or paid as approved by the Board.

 

Inside directors will receive no compensation for board or committee membership, committee chairmanship or attendance.

 

 

* * * * *

 

Retirement

 

Directors of FHNC or FTB shall be retired from the Board of Directors in accordance with the applicable provisions of the Bylaws of FHNC or FTB as in effect on the date hereof and as they may be amended from time to time.

 

II. IMPLEMENTATION OF POLICY

This policy shall be implemented by the Chairman of the Board in cooperation with the Nominating and Corporate Governance Committee of the Board of Directors of FHNC and FTB.  The Chairman of the Board may adopt appropriate interpretations and procedures to assist in implementation of this Policy.

 

III. DELEGATION OF AUTHORITY

The Chairman of the Board is delegated the authority to make exceptions to any provision of this policy except the provisions dealing with compensation and retirement.  The Nominating and Corporate Governance Committee is delegated the authority to make exceptions to any provision of this policy except the provision dealing with retirement.  Any exception to this policy shall be reported to the Board at its next regularly scheduled meeting.  

 

 

3Exhibit 10.7(l)

	
 

	
 

	
Frank Gusmus

	
1/8/09

	
1134 St Vincent
 Place

	
 

	
Memphis, TN 38120

	
 

RETENTION AGREEMENT

          This
Agreement is made by and between Frank Gusmus, (“you”) and First Tennessee Bank
National Association and its predecessors, successors, assigns, subsidiaries,
parents, affiliates, and their respective directors, officers, employees and
agents, attorneys and representatives, both past, present, or future (“the
company”). 

          This
Agreement supersedes any previous agreement between you and the company related
to the term of your employment. 

          1. Agreement

          Your
signature at the conclusion of this document represents your voluntary
acceptance of this Agreement. This Agreement should be returned to Linda Bacon,
Mgr. Employee Relations after you have fully executed it.

          2. Consideration

          The Company
agrees to employ you unless a termination for cause occurs as described in
section 2(a) herein, and you agree to remain in the position of President of
FTN Financial until December 31, 2011 or later. The Company also agrees to vest
any unvested restricted stock upon your retirement. In return for the Company’s
agreements described in this section, you agree to the post-employment
restrictions contained in section 3 of this Agreement.

          Nothing in
this Agreement is intended to affect your Directors and Executives Deferred
Compensation Plan (“D & E plan”) benefits as previously approved by the
Compensation Committee of the Board of Directors. All of the terms and
conditions of that plan will continue as if you had remained an employee of the
Company until the age of sixty-five (65). You will be entitled to 

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all benefits including payments beginning at the age of sixty-five (65)
unless you are entitled to earlier payments as provided for by the plan, for
example, due to a change in control. 

          You
acknowledge that you are not otherwise entitled to the benefits described in
this section. Payments or benefits to which you are already entitled will be
paid in accordance with the applicable policies and plans.

          2(a). Your
employment will only be terminated by the Company prior to December 31, 2011
for cause, which shall mean a) your death; b) your disability, as such term is
defined pursuant to the provisions of the Company’s long-term disability plan;
c) your acting unlawfully or with gross negligence in a manner materially
detrimental to the Company or any of its affiliates; d) your failure
substantially to perform your duties or responsibilities or to follow any
reasonable direction of the Company; e) your willful breach or habitual neglect
of your duties hereunder; f) your conviction of a felony or commission of any
act involving dishonesty or fraud; or g) your violation of the published policy
or policies of the Company.

          3. Non-Competition, Non-Solicitation and Non-Interference 

          For a
period of two (2) years following the termination of your employment with the
Company, whether on December 31, 2011 or any other date, you agree that:

          A. Non-Competition:
You will not directly or indirectly engage as an owner, employer, employee,
director principal agent or otherwise, with any company engaged in a similar
line of business in competition with the Company.

          B. Non-Solicitation:
You will not, without the express written approval of the Company, directly or
indirectly, on behalf of yourself or for others, solicit or contact in any
manner (with the intent of providing any service or product competitive with
any service or product which is provided at the time of such contact by the
Company) any customer of the Company with whom you had actual contact while
employed by the Company. 

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          C. Non-Interference:
You will not directly or indirectly induce or encourage:

	
 

	
 

	
 

	
(i) any employee
 or contractor of the Company to leave his/her position to seek employment or
 association with any person or entity other than the Company; or

	
 

	
 

	
 

	
(ii) any dealer,
 supplier or customer of the Company to modify or terminate any relationship,
 whether or not evidenced by a written contract, with the Company.

          You
acknowledge and agree that the restrictions set forth in paragraph 3 hereof are
reasonable and necessary for the protection of Company business and goodwill.
You further agree that if you breach or threaten to breach any of your
obligations in this Agreement, the Company in addition to any other remedies
available to it under the law may obtain specific performance and/or injunctive
relief against you to prevent such continued or threatened breach. You also
acknowledge and agree that the Company shall be reimbursed by you for all
attorneys’ fees and costs incurred by it in enforcing any of its right or
remedies under this section or any other provision of the Agreement. 

          4. Severability

          A finding
that any provision of this Agreement is void or unenforceable shall not affect
the validity or enforceability of any other provisions of this Agreement.

          5. Drafting

          This
Agreement is a product of negotiations between the parties and in construing
the provisions of this Agreement, no inference or presumption shall be drawn
against either party on the basis of which party or their attorneys drafted
this Agreement.

          6. Sole Agreement

          By your
signature, you also confirm that the only consideration for your signing this
Agreement are the terms set forth within it, and that, other than as 

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set forth herein, no other promise or agreement of any kind has been
made to you by the Company or anyone acting by, for, or on its behalf. 

          YOU ALSO
AFFIRM THAT YOU HAVE BEEN FREE TO DISCUSS THIS MATTER PRIVATELY AND THOROUGHLY
WITH AN ATTORNEY OF YOUR CHOICE AND THAT YOU FULLY UNDERSTAND THE MEANING AND
INTENT OF THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ITS FINAL AND BINDING
EFFECT.

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          This
Agreement may be enforced by the parties in any state or federal court of
competent jurisdiction.

          This
Agreement is signed in duplicate originals at First Tennessee in Memphis,
Tennessee.

I HAVE READ, UNDERSTOOD AND KNOWINGLY VOLUNTARILY SIGNED AND ACCEPTED
WITH FULL KNOWLEDGE OF MY RIGHTS ON THE DATE SET FORTH BELOW.

	
 

	
 

	
/s/ Frank Gusmus

	
          1/8/09

	

	

	
Frank Gusmus

	
             Date

	
 

	
 

	
Witnessed by:

	
 

	
 

	
 

	
/s/ Denise L.
 Mueller

	
          1/8/09

	

	

	
 

	
 

	
Notary of the State of Tennessee

	
               [Notary
 Seal]

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DESCRIPTION OF KEY COMPENSATION TERMS APPLICABLE TO 

EMPLOYMENT RELATIONSHIP OF FRANK GUSMUS AT 1/8/2009 

The following is a description of the key compensation terms in effect for Frank Gusmus at the time the Retention Agreement was entered into between Mr. Gusmus and First Tennessee Bank National Association. These are
the key terms that became effective in 2009 and are part of the employment relationship that is the subject of that Agreement. 

________________________________________________

Annual salary rate: 

$600,000 

Annual bonus opportunity: 

Mr. Gusmus’ annual bonus is 15% of the manager’s bonus pool established and measured in accordance with the Capital Markets Incentive Compensation Plan. Bonuses will be paid through, and will be subject to the
conditions of, the 2002 Management Incentive Plan. Therefore, each bonus is subject to Compensation Committee oversight and discretion. If a bonus amount exceeds $1,400,000, the excess will be paid in shares of restricted stock, granted under
the 2003 Equity Compensation Plan, with vesting to occur three years from the grant date or upon retirement approved by the Compensation Committee. Total bonus (cash and restricted stock) for any year may not exceed $4,400,000. 

Stock Awards other than as described above: 

After 2008, no new grants are expected. 

Retirement Benefits: 

In addition to special benefits specified in the Retention Agreement and to ordinary benefits under plans generally available to a wide range of employees, Mr. Gusmus participates in the Pension Restoration Plan.

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