Document:

exhibit106grnb.htm

    
      

    

    

     

     

    
      

      

    

    Exhibit
      10.6

     

     

    GUARANTEE
      AGREEMENT

     

    between

     

    GREENE
      COUNTY BANCSHARES, INC.,

     

    As
      Guarantor,

     

    and

     

    WILMINGTON
      TRUST COMPANY,

    As
      Guarantee Trustee

     

    Dated
      as
      of May 16, 2007

     

    

     

    

     

    
 

     

    GREENBANK
      CAPITAL TRUST I

     

     

    
      

      

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    TABLE
      OF
      CONTENTS

     

     

    
      	ARTICLE
              I 	INTERPRETATION
              AND DEFINITIONS	
              2

            
	SECTION
              1.1  	Interpretation. 	
              2

            
	SECTION
              1.2  	Definitions.	
              2

            
	 	 	 
	ARTICLE
              II 	REPORTS	
              6

            
	SECTION
              2.1 	List
              of Holders. 	
              6

            
	SECTION
              2.2  	Periodic
              Reports to the Guarantee Trustee. 	
              6

            
	SECTION
              2.3  	Event
              of Default; Waiver.	
              6

            
	SECTION
              2.4   	Event
              of Default; Notice. 	
              6

            
	 	 	 
	ARTICLE
              III  	POWERS,
              DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE 	
               7

            
	SECTION
              3.1    	Powers
              and Duties of the Guarantee Trustee. 	
              7

            
	SECTION
              3.2   	Certain
              Rights of the Guarantee Trustee. 	
              8

            
	SECTION
              3.3   	Compensation.	
              10

            
	SECTION
              3.4  	Indemnity. 	
              10

            
	SECTION
              3.5  	Securities. 	
              11

            
	 	 	 
	ARTICLE
              IV 	GUARANTEE
              TRUSTEE 	
              11

            
	SECTION
              4.1   	Guarantee
              Trustee; Eligibility.	
              11

            
	SECTION
              4.2	Appointment,
              Removal and Resignation of the Guarantee Trustee.	
              11

            
	 	 	 
	ARTICLE
              V  	GUARANTEE 	
              12

            
	SECTION
              5.1  	Guarantee.	
              12

            
	SECTION
              5.2 	Waiver
              of Notice and Demand.	
              13

            
	SECTION
              5.3 	Obligations
              Not Affected.	
              13

            
	SECTION
              5.4  	Rights
              of Holders.	
              14

            
	SECTION
              5.5	Guarantee
              of Payment.	
              14

            
	SECTION
              5.6 	Subrogation. 	
              14

            
	SECTION
              5.7	Independent
              Obligations. 	
              14

            
	SECTION
              5.8 	Enforcement. 	
              14

            
	 	 	 
	ARTICLE
              VI   	COVENANTS
              AND SUBORDINATION 	
              15

            
	SECTION
              6.1 	Dividends,
              Distributions and Payments.	
              15

            
	SECTION
              6.2   	Subordination. 	
              15

            
	SECTION
              6.3   	Pari
              Passu Guarantees.	
              16

            
	 	 	 
	ARTICLE
              VII  	TERMINATION	
              16

            
	SECTION
              7.1 	Termination.	
              16

            
	 	 	 
	ARTICLE
              VIII  	MISCELLANEOUS	
              17

            
	SECTION
              8.1  	Successors
              and Assigns. 	
              17

            
	SECTION
              8.2 	Amendments.	
              17

            
	SECTION
              8.3  	Notices.	
              17

            

    

     

     

    i

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	SECTION
              8.4 	Benefit. 	
              18

            
	SECTION
              8.5	Governing
              Law. 	
              18

            
	SECTION
              8.6	Submission
              to Jurisdiction. 	
              18

            
	SECTION
              8.7 	Counterparts. 	
              19

            

    

                                                                                                 

     

     

     

     

     

    ii

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Guarantee
      Agreement, dated as of May 16, 2007, executed and delivered by Greene County
      Bancshares, Inc., a Tennessee corporation (the “Guarantor”) having its
      principal office at 100 North Main Street, Greeneville, Tennessee 37744, and
      Wilmington Trust Company, a Delaware banking corporation, as trustee (in such
      capacity, the “Guarantee Trustee”), for the benefit of the Holders (as
      defined herein) from time to time of the Preferred Securities (as defined
      herein) of GreenBank Capital Trust I, a Delaware statutory trust (the
“Issuer”).

     

    W
      i t n e
      s s e t h :

     

    Whereas,
      pursuant to an Amended and Restated Trust Agreement, dated as of the date hereof
      (the “Trust Agreement”), among the Guarantor, as Depositor, the
      Property Trustee, the Delaware Trustee and the Administrative Trustees named
      therein and the Holders from time to time of the Preferred Securities (as
      hereinafter defined), the Issuer is issuing $56,000,000 aggregate Liquidation
      Amount (as defined in the Trust Agreement) of its Floating Rate Preferred
      Securities (Liquidation Amount $1,000 per preferred security) (the
“Preferred Securities”) representing preferred undivided beneficial
      interests in the assets of the Issuer and having the terms set forth in the
      Trust Agreement;

     

    Whereas,
      the Preferred Securities will be issued by the Issuer and the proceeds thereof,
      together with the proceeds from the issuance of the Issuer’s Common Securities
      (as defined below), will be used to purchase the Notes (as defined in the Trust
      Agreement) of the Guarantor; and

     

    Whereas,
      as incentive for the Holders to purchase the Preferred Securities, the Guarantor
      desires irrevocably and unconditionally to agree, to the extent set forth
      herein, to pay to the Holders of the Preferred Securities the Guarantee Payments
      (as defined herein) and to make certain other payments on the terms and
      conditions set forth herein.

     

    Now,
      Therefore, in consideration of the purchase by each Holder of Preferred
      Securities, which purchase the Guarantor hereby agrees shall benefit the
      Guarantor, the Guarantor executes and delivers this Guarantee Agreement to
      provide as follows for the benefit of the Holders from time to time of the
      Preferred Securities:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

     

    Interpretation
      and Definitions

     

    SECTION
      1.1  Interpretation.

     

    In
      this
      Guarantee Agreement, unless the context otherwise requires:

     

    (a)  capitalized
      terms used in this Guarantee Agreement but not defined in the preamble hereof
      have the respective meanings assigned to them in Section
      1.2;

     

    (b)  the
      words
“include,” “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”;

     

    (c)  all
      references to “the Guarantee Agreement” or “this Guarantee Agreement” are to
      this Guarantee Agreement as modified, supplemented or amended from time to
      time;

     

    (d)  all
      references in this Guarantee Agreement to Articles and Sections are to Articles
      and Sections of this Guarantee Agreement unless otherwise
      specified;

     

    (e)  the
      words
“hereby,” “herein,” “hereof” and “hereunder” and other words of similar import
      refer to this Guarantee Agreement as a whole and not to any particular Article,
      Section or other subdivision;

     

    (f)  a
      reference to the singular includes the plural and vice versa; and

     

    (g)  a
      reference to the masculine, feminine or neuter gender herein shall include
      all
      of the masculine, feminine and neuter genders.

     

    SECTION
      1.2  Definitions.

     

    As
      used
      in this Guarantee Agreement, the terms set forth below shall, unless the context
      otherwise requires, have the following meanings:

     

    “Affiliate”
      of any specified Person means any other Person directly or indirectly
      controlling or controlled by or under direct or indirect common control with
      such specified Person; provided, that the Issuer shall not be deemed to
      be an Affiliate of the Guarantor.  For the purposes of this
      definition, “control” when used with respect to any specified Person
      means the power to direct the management and policies of such Person, directly
      or indirectly, whether through the ownership of voting securities, by contract
      or otherwise; and the terms “controlling” and “controlled”
      have meanings correlative to the foregoing.

     

    “Beneficiaries”
      means any Person to whom the Issuer is or hereafter becomes indebted or
      liable.

     

    
      
        
        

      

      
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    “Board
      of Directors” means either the board of directors of the Guarantor or any
      duly authorized committee of that board.

     

    “Common
      Securities” means the securities representing common undivided beneficial
      interests in the assets of the Issuer.

     

    “Debt”
      means with respect to any Person, whether recourse is to all or a portion of
      the
      assets of such Person, whether currently existing or hereafter incurred, and
      whether or not contingent and without duplication, (i) every obligation of
      such
      Person for money borrowed; (ii) every obligation of such Person evidenced by
      bonds, debentures, notes or other similar instruments, including obligations
      incurred in connection with the acquisition of property, assets or businesses;
      (iii) every reimbursement obligation of such Person with respect to letters
      of
      credit, bankers’ acceptances or similar facilities issued for the account of
      such Person; (iv) every obligation of such Person issued or assumed as the
      deferred purchase price of property or services (but excluding trade accounts
      payable arising in the ordinary course of business); (v) every capital lease
      obligation of such Person; (vi) all indebtedness of such Person, whether
      incurred on or prior to the date of this Guarantee Agreement or thereafter
      incurred, for claims in respect of derivative products, including interest
      rate,
      foreign exchange rate and commodity forward contracts, options, swaps and
      similar arrangements; (vii) every obligation of the type referred to in clauses
      (i) through (vi) of another Person and all dividends of another Person the
      payment of which, in either case, such Person has guaranteed or is responsible
      or liable for, directly or indirectly, as obligor or otherwise; and (viii)
      any
      renewals, extensions, refundings, amendments or modifications of any obligation
      of the type referred to in clauses (i) through (vii).

     

    “Event
      of Default” means a default by the Guarantor on any of its payment or other
      obligations under this Guarantee Agreement; provided, that except with respect
      to a default in payment of any Guarantee Payments, the Guarantor shall have
      received notice of default from the Guarantee Trustee and shall not have cured
      such default within thirty (30) days after receipt of such notice.

     

    “Guarantee
      Payments” means the following payments or distributions, without
      duplication, with respect to the Preferred Securities, to the extent not paid
      or
      made by or on behalf of the Issuer: (i) any accumulated and unpaid Distributions
      (as defined in the Trust Agreement) required to be paid on the Preferred
      Securities, to the extent the Issuer shall have funds on hand available therefor
      at such time, (ii) the Redemption Price (as defined in the Trust Agreement)
      with
      respect to any Preferred Securities to the extent the Issuer shall have funds
      on
      hand available therefor at such time, and (iii) upon a voluntary or involuntary
      termination, winding up or liquidation of the Issuer, unless Notes are
      distributed to the Holders, the lesser of (a) the aggregate of the Liquidation
      Amount of $1,000 per Preferred Security plus accumulated and unpaid
      Distributions on the Preferred Securities to the date of payment, to the extent
      that

     

    
      
        
        

      

      
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the
        Issuer shall have funds available therefor at such time and (b) the amount
        of
        assets of the Issuer remaining available for distribution to Holders in
        liquidation of the Issuer after satisfaction of liabilities to creditors
        of the
        Issuer in accordance with applicable law (in either case, the “Liquidation
        Distribution”).

    

     

    “Guarantee
      Trustee” means Wilmington Trust Company, until a Successor Guarantee
      Trustee, as defined below, has been appointed and has accepted such appointment
      pursuant to the terms of this Guarantee Agreement, and thereafter means each
      such Successor Guarantee Trustee.

     

    “Holder”
      means any holder, as registered on the books and records of the Issuer, of
      any
      Preferred Securities; provided, that, in determining whether the
      holders of the requisite percentage of Preferred Securities have given any
      request, notice, consent or waiver hereunder, “Holder” shall not include the
      Guarantor, the Guarantee Trustee or any Affiliate of the Guarantor or the
      Guarantee Trustee.

     

    “Indenture”
      means the Junior Subordinated Indenture, dated as of the date hereof, as
      supplemented and amended, between the Guarantor and Wilmington Trust Company,
      as
      trustee.

     

    “List
      of Holders” has the meaning specified in Section 2.1.

     

    “Majority
      in Liquidation Amount of the Preferred Securities” means a vote by the
      Holder(s), voting separately as a class, of more than fifty percent (50%) of
      the
      aggregate Liquidation Amount of all then outstanding Preferred Securities issued
      by the Issuer.

     

    “Obligations”
      means any costs, expenses or liabilities (but not including liabilities related
      to taxes) of the Issuer, other than obligations of the Issuer to pay to holders
      of any Trust Securities the amounts due such holders pursuant to the terms
      of
      the Trust Securities.

     

    “Officers’
      Certificate” means, with respect to any Person, a certificate signed by the
      Chief Executive Officer, Chief Financial Officer or President of such Person,
      and by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
      Secretary of such Person, and delivered to the Guarantee Trustee.  Any
      Officers’ Certificate delivered with respect to compliance with a condition or
      covenant provided for in this Guarantee Agreement (other than the certificate
      provided pursuant to Section 2.4) shall include:

     

    (a)  a
      statement that each officer signing the Officers’ Certificate has read the
      covenant or condition and the definitions relating thereto;

     

    (b)  a
      brief
      statement of the nature and scope of the examination or investigation undertaken
      by each officer in rendering the Officers’ Certificate;

     

    (c)  a
      statement that each officer has made such examination or investigation as,
      in
      such officer’s opinion, is necessary to enable such officer to

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        
express
        an informed opinion as to whether or not such covenant or condition has been
        complied with; and

    

     

    (d)  a
      statement as to whether, in the opinion of each officer, such condition or
      covenant has been complied with.

     

    “Person”
      means a legal person, including any individual, corporation, estate,
      partnership, joint venture, association, joint stock company, limited liability
      company, trust, unincorporated association, government or any agency or
      political subdivision thereof or any other entity of whatever
      nature.

     

    “Responsible
      Officer” means, with respect to the Guarantee Trustee, any Senior Vice
      President, any Vice President, any Assistant Vice President, the Secretary,
      any
      Assistant Secretary, the Treasurer, any Assistant Treasurer, any Financial
      Services Officer or Assistant Financial Services Officer or any other officer
      of
      the Corporate Trust Department of the Guarantee Trustee and also means, with
      respect to a particular corporate trust matter, any other officer to whom such
      matter is referred because of that officer’s knowledge of and familiarity with
      the particular subject.

     

    “Senior
      Debt” means the principal of and any premium and interest on (including
      interest accruing on or after the filing of any petition in bankruptcy or for
      reorganization relating to the Guarantor whether or not such claim for
      post-petition interest is allowed in such proceeding) all Debt of the Guarantor,
      whether incurred on or prior to the date of the Indenture or thereafter
      incurred, unless it is provided in the instrument creating or evidencing the
      same or pursuant to which the same is outstanding, that such obligations are
      not
      superior in right of payment to the Preferred Securities; provided,
      however, that if the Guarantor is subject to the regulation and supervision
      of an “appropriate Federal banking agency” within the meaning of 12 U.S.C.
      1813(q),  the Guarantor shall have received the approval of such
      appropriate Federal banking agency prior to issuing any such obligation if
      not
      otherwise generally approved; provided further, that Senior Debt shall
      not include any other debt securities, and guarantees in respect of such debt
      securities, issued to any trust other than the Issuer (or a trustee of such
      trust), partnership or other entity affiliated with the Guarantor that is a
      financing vehicle of the Guarantor (a “financing entity”), in connection with
      the issuance by such financing entity of equity securities or other securities
      that are treated as equity capital for regulatory capital purposes guaranteed
      by
      the Guarantor pursuant to an instrument that ranks pari passu with or
      junior in right of payment to this Guarantee Agreement, including, without
      limitation, securities issued by Greene County Capital Trust I and Greene County
      Capital Trust II.

     

    “Successor
      Guarantee Trustee” means a successor Guarantee Trustee possessing the
      qualifications to act as Guarantee Trustee under Section 4.1.

     

    “Trust
      Indenture Act” means the Trust Indenture Act of 1939, as amended and as in
      effect on the date of this Guarantee Agreement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Capitalized
      or otherwise defined terms used but not otherwise defined herein shall have
      the
      meanings assigned to such terms in the Trust Agreement as in effect on the
      date
      hereof.

     

    ARTICLE
      II

     

    Reports

     

    SECTION
      2.1  List
      of Holders.

     

    The
      Guarantor shall furnish or cause to be furnished to the Guarantee Trustee at
      such times as the Guarantee Trustee may request in writing, within thirty (30)
      days after the receipt by the Guarantor of any such request, a list, in such
      form as the Guarantee Trustee may reasonably require, of the names and addresses
      of the Holders (the “List of Holders”) as of a date not more than
      fifteen (15) days prior to the time such list is furnished, in each case to
      the
      extent such information is in the possession or control of the Guarantor and
      is
      not identical to a previously supplied list of Holders or has not otherwise
      been
      received by the Guarantee Trustee in its capacity as such.  The
      Guarantee Trustee may destroy any List of Holders previously given to it on
      receipt of a new List of Holders.

     

    SECTION
      2.2  Periodic
      Reports to the Guarantee Trustee.

     

    The
      Guarantor shall deliver to the Guarantee Trustee, within one hundred and twenty
      (120) days after the end of each fiscal year of the Guarantor ending after
      the
      date of this Guarantee Agreement, an Officers’ Certificate covering the
      preceding fiscal year, stating whether or not to the knowledge of the signers
      thereof the Guarantor is in default in the performance or observance of any
      of
      the terms or provisions or any of the conditions of this Guarantee Agreement
      (without regard to any period of grace or requirement of notice provided
      hereunder) and, if the Guarantor shall be in default thereof, specifying all
      such defaults and the nature and status thereof of which they have
      knowledge.

     

    SECTION
      2.3  Event
      of Default; Waiver.

     

    The
      Holders of a Majority in Liquidation Amount of the Preferred Securities may,
      on
      behalf of the Holders, waive any past Event of Default and its
      consequences.  Upon such waiver, any such Event of Default shall cease
      to exist, and any Event of Default arising therefrom shall be deemed to have
      been cured, for every purpose of this Guarantee Agreement, but no such waiver
      shall extend to any subsequent or other default or Event of Default or impair
      any right consequent therefrom.

     

    SECTION
      2.4  Event
      of Default; Notice.

     

    (a)  The
      Guarantee Trustee shall, within ninety (90) days after the occurrence of a
      default, transmit to the Holders notices of all defaults actually known to
      the
      Guarantee Trustee, unless such defaults have been cured or waived before the
      giving of such notice, provided, that, except in the case of a default
      in

     

    
      
        
        

      

      
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the
        payment of a Guarantee Payment, the Guarantee Trustee shall be protected
        in
        withholding such notice if and so long as the Board of Directors, the executive
        committee or a trust committee of directors and/or Responsible Officers of
        the
        Guarantee Trustee in good faith determine that the withholding of such notice
        is
        in the interests of the Holders.  For the purpose of this Section
        2.4, the term “default” means any event that is, or after notice or
        lapse of time or both would become, an Event of Default.

    

     

    (b)  The
      Guarantee Trustee shall not be deemed to have knowledge of any Event of Default
      unless the Guarantee Trustee shall have received written notice, or a
      Responsible Officer charged with the administration of this Guarantee Agreement
      shall have obtained written notice, of such Event of Default from the Guarantor
      or a Holder.

     

    ARTICLE
      III

     

    Powers,
      Duties And Rights Of The Guarantee Trustee

     

    SECTION
      3.1  Powers
      and Duties of the Guarantee Trustee.

     

    (a)  This
      Guarantee Agreement shall be held by the Guarantee Trustee for the benefit
      of
      the Holders, and the Guarantee Trustee shall not transfer this Guarantee
      Agreement to any Person except a Holder exercising its rights pursuant to
Section 5.4(d) or to a Successor Guarantee Trustee upon acceptance by
      such Successor Guarantee Trustee of its appointment to act as Successor
      Guarantee Trustee.  The right, title and interest of the Guarantee
      Trustee shall automatically vest in any Successor Guarantee Trustee, upon
      acceptance by such Successor Guarantee Trustee of its appointment hereunder,
      and
      such vesting and cessation of title shall be effective whether or not
      conveyancing documents have been executed and delivered pursuant to the
      appointment of such Successor Guarantee Trustee.

     

    (b)  The
      rights, immunities, duties and responsibilities of the Guarantee Trustee shall
      be as provided by this Guarantee Agreement and there shall be no other duties
      or
      obligations, express or implied, of the Guarantee
      Trustee.  Notwithstanding the foregoing, no provisions of this
      Guarantee Agreement shall require the Guarantee Trustee to expend or risk its
      own funds or otherwise incur any financial liability in the performance of
      any
      of its duties hereunder, or in the exercise of any of its rights or powers,
      if
      it shall have reasonable grounds for believing that repayment of such funds
      or
      adequate indemnity against such risk or liability is not reasonably assured
      to
      it.  Whether or not herein expressly so provided, every provision of
      this Guarantee Agreement relating to the conduct or affecting the liability
      of
      or affording protection to the Guarantee Trustee shall be subject to the
      provisions of this Section 3.1.  To the extent that, at law or
      in equity, the Guarantee Trustee has duties and liabilities relating to the
      Guarantor or the Holders, the Guarantee Trustee shall not be liable to any
      Holder for the Guarantee Trustee’s good faith reliance on the provisions of this
      Guarantee

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        
Agreement.  The
        provisions of this Guarantee Agreement, to the extent that they restrict
        the
        duties and liabilities of the Guarantee Trustee otherwise existing at law
        or in
        equity, are agreed by the Guarantor and the Holders to replace such other
        duties
        and liabilities of the Guarantee Trustee.

    

     

    (c)  No
      provision of this Guarantee Agreement shall be construed to relieve the
      Guarantee Trustee from liability for its own negligent action, negligent failure
      to act or own willful misconduct, except that:

     

    (i)  the
      Guarantee Trustee shall not be liable for any error of judgment made in good
      faith by a Responsible Officer of the Guarantee Trustee, unless it shall be
      proved that the Guarantee Trustee was negligent in ascertaining the pertinent
      facts upon which such judgment was made; and

     

    (ii)  the
      Guarantee Trustee shall not be liable with respect to any action taken or
      omitted to be taken by it in good faith in accordance with the direction of
      the
      Holders of not less than a Majority in Liquidation Amount of the Preferred
      Securities relating to the time, method and place of conducting any proceeding
      for any remedy available to the Guarantee Trustee, or exercising any trust
      or
      power conferred upon the Guarantee Trustee under this Guarantee
      Agreement.

     

    SECTION
      3.2  Certain
      Rights of the Guarantee Trustee.

     

    (a)  Subject
      to the provisions of Section 3.1:

     

    (i)  the
      Guarantee Trustee may conclusively rely and shall be fully protected in acting
      or refraining from acting in good faith and in accordance with the terms hereof
      upon any resolution, certificate, statement, instrument, opinion, report,
      notice, request, direction, consent, order, bond, debenture, note, other
      evidence of indebtedness or other paper or document reasonably believed by
      it to
      be genuine and to have been signed, sent or presented by the proper party or
      parties;

     

    (ii)  any
      direction or act of the Guarantor contemplated by this Guarantee Agreement
      shall
      be sufficiently evidenced by an Officers’ Certificate unless otherwise
      prescribed herein;

     

    (iii)  the
      Guarantee Trustee may consult with counsel, and the advice of such counsel
      shall
      be full and complete authorization and protection in respect of any action
      taken, suffered or omitted to be taken by it hereunder in good faith and in
      reliance thereon and in accordance with such advice.  Such counsel may
      be counsel to the Guarantee Trustee, the Guarantor or any of its Affiliates
      and
      may be one of its employees.  The Guarantee Trustee shall have the
      right at any time to seek instructions concerning the administration of this
      Guarantee Agreement from any court of competent jurisdiction;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (iv)  the
      Guarantee Trustee shall be under no obligation to exercise any of the rights
      or
      powers vested in it by this Guarantee Agreement at the request or direction
      of
      any Holder, unless such Holder shall have provided to the Guarantee Trustee
      reasonable security or indemnity against the costs, expenses (including
      reasonable attorneys’ fees and expenses) and liabilities that might be incurred
      by it in complying with such request or direction, including such reasonable
      advances as may be requested by the Guarantee Trustee; provided, that,
      nothing contained in this Section 3.2(a)(iv) shall be taken to relieve
      the Guarantee Trustee, upon the occurrence of an Event of Default, of its
      obligation to exercise the rights and powers vested in it by this Guarantee
      Agreement;

     

    (v)  the
      Guarantee Trustee shall not be bound to make any investigation into the facts
      or
      matters stated in any resolution, certificate, statement, instrument, opinion,
      report, notice, request, direction, consent, order, bond, debenture, note,
      other
      evidence of indebtedness or other paper or document, but the Guarantee Trustee,
      in its discretion, may make such further inquiry or investigation into such
      facts or matters as it may see fit, and if the Guarantee Trustee shall determine
      to make such inquiry or investigation, it shall be entitled to examine the
      books, records and premises of the Guarantor, personally or by agent or
      attorney;

     

    (vi)  the
      Guarantee Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through its agents, attorneys,
      custodians or nominees and the Guarantee Trustee shall not be responsible for
      any misconduct or negligence on the part of any such agent, attorney, custodian
      or nominee appointed with due care by it hereunder;

     

    (vii)  whenever
      in the administration of this Guarantee Agreement the Guarantee Trustee shall
      deem it desirable to receive instructions with respect to enforcing any remedy
      or right hereunder, the Guarantee Trustee (A) may request instructions from
      the
      Holders of a Majority in Liquidation Amount of the Preferred Securities, (B)
      may
      refrain from enforcing such remedy or right or taking such other action until
      such instructions are received and (C) shall be protected in acting in
      accordance with such instructions;

     

    (viii)  except
      as
      otherwise expressly provided by this Guarantee Agreement, the Guarantee Trustee
      shall not be under any obligation to take any action that is discretionary
      under
      the provisions of this Guarantee Agreement; and

     

    (ix)  whenever,
      in the administration of this Guarantee Agreement, the Guarantee Trustee shall
      deem it desirable that a matter be proved or established before taking,
      suffering or omitting to take any action hereunder, the Guarantee Trustee
      (unless other evidence is herein 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        
specifically
        prescribed) may, in the absence of bad faith on its part, request and rely
        upon
        an Officers’ Certificate which, upon receipt of such request from the Guarantee
        Trustee, shall be promptly delivered by the Guarantor.

    

     

    (b)  No
      provision of this Guarantee Agreement shall be deemed to impose any duty or
      obligation on the Guarantee Trustee to perform any act or acts or exercise
      any
      right, power, duty or obligation conferred or imposed on it in any jurisdiction
      in which it shall be illegal, or in which the Guarantee Trustee shall be
      unqualified or incompetent in accordance with applicable law, to perform any
      such act or acts or to exercise any such right, power, duty or
      obligation.  No permissive power or authority available to the
      Guarantee Trustee shall be construed to be a duty to act in accordance with
      such
      power and authority.

     

    SECTION
      3.3  Compensation.

     

    The
      Guarantor agrees to pay to the Guarantee Trustee from time to time reasonable
      compensation for all services rendered by it hereunder (which compensation
      shall
      not be limited by any provisions of law in regard to the compensation of a
      trustee of an express trust) and to reimburse the Guarantee Trustee upon request
      for all reasonable expenses, disbursements and advances (including the
      reasonable fees and expenses of its attorneys and agents) incurred or made
      by
      the Guarantee Trustee in accordance with any provisions of this Guarantee
      Agreement.

     

    SECTION
      3.4  Indemnity.

     

    The
      Guarantor agrees to indemnify and hold harmless the Guarantee Trustee and any
      of
      its Affiliates and any of their officers, directors, shareholders, employees,
      representatives or agents from and against any loss, damage, liability, tax
      (other than income, franchise or other taxes imposed on amounts paid pursuant
      to
Section 3.3), penalty, expense or claim of any kind or nature whatsoever
      incurred without negligence, bad faith or willful misconduct on its part,
      arising out of or in connection with the acceptance or administration of this
      Guarantee Agreement, including the costs and expenses of defending itself
      against any claim or liability in connection with the exercise or performance
      of
      any of its powers or duties hereunder.  The Guarantee Trustee will not
      claim or exact any lien or charge on any Guarantee Payments as a result of
      any
      amount due to it under this Guarantee Agreement.  This indemnity shall
      survive the termination of this Agreement or the resignation or removal of
      the
      Guarantee Trustee.

     

    In
      no
      event shall the Guarantee Trustee be liable for any indirect, special, punitive
      or consequential loss or damage of any kind whatsoever, including, but not
      limited to, lost profits, even if the Guarantee Trustee has been advised of
      the
      likelihood of such loss or damage and regardless of the form of
      action.

     

    In
      no
      event shall the Guarantee Trustee be liable for any failure or delay in the
      performance of its obligations hereunder because of circumstances beyond its
      control, including, but not limited to, acts of God, flood, war (declared or
      undeclared), terrorism, fire, riot, embargo or government action, including
      any
      laws, ordinances, regulations, 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        
governmental
        action or the like which delay, restrict or prohibit the providing of the
        services contemplated by this Guarantee Agreement.

    

     

    SECTION
      3.5  Securities.

     

    The
      Guarantee Trustee or any other agent of the Guarantee Trustee, in its individual
      or any other capacity, may become the owner or pledgee of Common or Preferred
      Securities.

     

    ARTICLE
      IV

     

    Guarantee
      Trustee

     

    SECTION
      4.1  Guarantee
      Trustee; Eligibility.

     

    (a)  There
      shall at all times be a Guarantee Trustee which shall:

     

    (i)  not
      be an
      Affiliate of the Guarantor; and

     

    (ii)  be
      a
      corporation organized and doing business under the laws of the United States
      or
      of any State thereof, authorized to exercise corporate trust powers, having
      a
      combined capital and surplus of at least fifty million dollars ($50,000,000),
      subject to supervision or examination by Federal or State authority and having
      an office within the United States. If such corporation publishes reports of
      condition at least annually, pursuant to law or to the requirements of such
      supervising or examining authority, then, for the purposes of this Section
      4.1, the combined capital and surplus of such corporation shall be deemed
      to
      be its combined capital and surplus as set forth in its most recent report
      of
      condition so published.

     

    (b)  If
      at any
      time the Guarantee Trustee shall cease to be eligible to so act under Section
      4.1(a), the Guarantee Trustee shall immediately resign in the manner and
      with the effect set out in Section 4.2(c).

     

    (c)  If
      the
      Guarantee Trustee has or shall acquire any “conflicting interest” within the
      meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee
      shall either eliminate such interest or resign in the manner and with the effect
      set out in Section 4.2(c).

     

    SECTION
      4.2  Appointment,
      Removal and Resignation of the Guarantee Trustee.

     

    (a)  Subject
      to Section 4.2(b), the Guarantee Trustee may be appointed or removed
      without cause at any time by the Guarantor, except during an Event of
      Default.

     

    (b)  The
      Guarantee Trustee shall not be removed until a Successor Guarantee Trustee
      has
      been appointed and has accepted such appointment by

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        
written
        instrument executed by such Successor Guarantee Trustee and delivered to
        the
        Guarantor.

    

     

    (c)  The
      Guarantee Trustee appointed hereunder shall hold office until a Successor
      Guarantee Trustee shall have been appointed or until its removal or
      resignation.  The Guarantee Trustee may resign from office (without
      need for prior or subsequent accounting) by an instrument in writing executed
      by
      the Guarantee Trustee and delivered to the Guarantor, which resignation shall
      not take effect until a Successor Guarantee Trustee has been appointed and has
      accepted such appointment by instrument in writing executed by such Successor
      Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee
      Trustee.

     

    (d)  If
      no
      Successor Guarantee Trustee shall have been appointed and accepted appointment
      as provided in this Section 4.2 within thirty (30) days after delivery to
      the Guarantor of an instrument of resignation, the resigning Guarantee Trustee
      may petition, at the expense of the Guarantor, any court of competent
      jurisdiction for appointment of a Successor Guarantee Trustee.  Such
      court may thereupon, after prescribing such notice, if any, as it may deem
      proper, appoint a Successor Guarantee Trustee.

     

    ARTICLE
      V

     

    Guarantee

     

    SECTION
      5.1  Guarantee.

     

    (a)  The
      Guarantor irrevocably and unconditionally agrees to pay in full to the Holders
      the Guarantee Payments (without duplication of amounts theretofore paid by
      or on
      behalf of the Issuer), as and when due, regardless of any defense (except for
      the defense of payment by the Issuer), right of set-off or counterclaim which
      the Issuer may have or assert.  The Guarantor’s obligation to make a
      Guarantee Payment may be satisfied by direct payment of the required amounts
      by
      the Guarantor to the Holders or by causing the Issuer to pay such amounts to
      the
      Holders.  The Guarantor shall give prompt written notice to the
      Guarantee Trustee in the event it makes any direct payment to the Holders
      hereunder.

     

    (b)  The
      Guarantor hereby also agrees to assume any and all Obligations of the Issuer,
      and, in the event any such Obligation is not so assumed, subject to the terms
      and conditions hereof, the Guarantor hereby irrevocably and unconditionally
      guarantees to each Beneficiary the full payment, when and as due, of any and
      all
      Obligations to such Beneficiaries.  This Guarantee is intended to be
      for the Beneficiaries who have received notice hereof.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    SECTION
      5.2  Waiver
      of Notice and Demand.

     

    The
      Guarantor hereby waives notice of acceptance of the Guarantee Agreement and
      of
      any liability to which it applies or may apply, presentment, demand for payment,
      any right to require a proceeding first against the Guarantee Trustee, Issuer
      or
      any other Person before proceeding against the Guarantor, protest, notice of
      nonpayment, notice of dishonor, notice of redemption and all other notices
      and
      demands.

     

    SECTION
      5.3  Obligations
      Not Affected.

     

    The
      obligations, covenants, agreements and duties of the Guarantor under this
      Guarantee Agreement shall in no way be affected or impaired by reason of the
      happening from time to time of any of the following:

     

    (a)  the
      release or waiver, by operation of law or otherwise, of the performance or
      observance by the Issuer of any express or implied agreement, covenant, term
      or
      condition relating to the Preferred Securities to be performed or observed
      by
      the Issuer;

     

    (b)  the
      extension of time for the payment by the Issuer of all or any portion of the
      Distributions (other than an extension of time for payment of Distributions
      that
      results from the extension of any interest payment period on the Notes as
      provided in the Indenture), Redemption Price, Liquidation Distribution or any
      other sums payable under the terms of the Preferred Securities or the extension
      of time for the performance of any other obligation under, arising out of,
      or in
      connection with, the Preferred Securities;

     

    (c)  any
      failure, omission, delay or lack of diligence on the part of the Holders to
      enforce, assert or exercise any right, privilege, power or remedy conferred
      on
      the Holders pursuant to the terms of the Preferred Securities, or any action
      on
      the part of the Issuer granting indulgence or extension of any
      kind;

     

    (d)  the
      voluntary or involuntary liquidation, dissolution, sale of any collateral,
      receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
      reorganization, arrangement, composition or readjustment of debt of, or other
      similar proceedings affecting, the Issuer or any of the assets of the
      Issuer;

     

    (e)  any
      invalidity of, or defect or deficiency in, the Preferred
      Securities;

     

    (f)  the
      settlement or compromise of any obligation guaranteed hereby or hereby incurred;
      or

     

    (g)  any
      other
      circumstance whatsoever that might otherwise constitute a legal or equitable
      discharge or defense of a guarantor, it being the intent of this Section
      5.3 that the obligations of the Guarantor hereunder shall be absolute and
      unconditional under any and all circumstances.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    There
      shall be no obligation of the Holders to give notice to, or obtain the consent
      of, the Guarantor with respect to the happening of any of the
      foregoing.

     

    SECTION
      5.4  Rights
      of Holders.

     

    The
      Guarantor expressly acknowledges that:  (a) this Guarantee Agreement
      will be deposited with the Guarantee Trustee to be held for the benefit of
      the
      Holders; (b) the Guarantee Trustee has the right to enforce this Guarantee
      Agreement on behalf of the Holders; (c) the Holders of a Majority in Liquidation
      Amount of the Preferred Securities have the right to direct the time, method
      and
      place of conducting any proceeding for any remedy available to the Guarantee
      Trustee in respect of this Guarantee Agreement or exercising any trust or power
      conferred upon the Guarantee Trustee under this Guarantee Agreement; and (d)
      any
      Holder may institute a legal proceeding directly against the Guarantor to
      enforce its rights under this Guarantee Agreement, without first instituting
      a
      legal proceeding against the Guarantee Trustee, the Issuer or any other
      Person.

     

    SECTION
      5.5  Guarantee
      of Payment.

     

    This
      Guarantee Agreement creates a guarantee of payment and not of
      collection.  This Guarantee Agreement will not be discharged except by
      payment of the Guarantee Payments in full (without duplication of amounts
      theretofore paid by the Issuer) or upon distribution of Notes to Holders as
      provided in the Trust Agreement.

     

    SECTION
      5.6  Subrogation.

     

    The
      Guarantor shall be subrogated to all (if any) rights of the Holders against
      the
      Issuer in respect of any amounts paid to the Holders by the Guarantor under
      this
      Guarantee Agreement and shall have the right to waive payment by the Issuer
      pursuant to Section 5.1; provided, that, the Guarantor shall not
      (except to the extent required by mandatory provisions of law) be entitled
      to
      enforce or exercise any rights it may acquire by way of subrogation or any
      indemnity, reimbursement or other agreement, in all cases as a result of payment
      under this Guarantee Agreement, if, at the time of any such payment, any amounts
      are due and unpaid under this Guarantee Agreement.  If any amount
      shall be paid to the Guarantor in violation of the preceding sentence, the
      Guarantor agrees to hold such amount in trust for the Holders and to pay over
      such amount to the Holders.

     

    SECTION
      5.7  Independent
      Obligations.

     

    The
      Guarantor acknowledges that its obligations hereunder are independent of the
      obligations of the Issuer with respect to the Preferred Securities and that
      the
      Guarantor shall be liable as principal and as debtor hereunder to make Guarantee
      Payments pursuant to the terms of this Guarantee Agreement notwithstanding
      the
      occurrence of any event referred to in subsections (a) through (g), inclusive,
      of Section 5.3.

     

    SECTION
      5.8  Enforcement.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    A
      Beneficiary may enforce the Obligations of the Guarantor contained in Section
      5.1(b) directly against the Guarantor, and the Guarantor waives any right or
      remedy to require that any action be brought against the Issuer or any other
      person or entity before proceeding against the Guarantor.

     

    ARTICLE
      VI

     

    Covenants
      and Subordination

     

    SECTION
      6.1  Dividends,
      Distributions and Payments.

     

    So
      long
      as any Preferred Securities remain outstanding, if there shall have occurred
      and
      be continuing an Event of Default or the Guarantor shall have entered into
      an
      Extension Period as provided for in the Indenture and such period, or any
      extension thereof, shall have commenced and be continuing, then the Guarantor
      may not (a) declare or pay any dividends or distributions on, or redeem,
      purchase, acquire or make liquidation payment with respect to, any of the
      Guarantor’s capital stock or (b) make any payment of principal of or any
      interest or premium on or repay, repurchase or redeem any debt securities of
      the
      Guarantor that rank pari passu in all respects with or junior in
      interest to the Notes issued pursuant to the Indenture (other than (i)
      repurchases, redemptions or other acquisitions of shares of capital stock of
      the
      Guarantor in connection with any employment contract, benefit plan or other
      similar arrangement with or for the benefit of any one or more employees,
      officers, directors or consultants, in connection with a dividend reinvestment
      or stockholder stock purchase plan or in connection with the issuance of capital
      stock of the Guarantor (or securities convertible into or exercisable for such
      capital stock) as consideration in an acquisition transaction entered into
      prior
      to the occurrence of such Event of Default or the applicable Extension Period,
      (ii) as a result of a reclassification of the Guarantor’s capital stock or the
      exchange or conversion of any class or series of the Guarantor’s capital stock
      (or any capital stock of a subsidiary of the Guarantor) for any class or series
      of the Guarantor’s capital stock or any class or series of the Guarantor’s
      indebtedness for any class or series of the Guarantor’s capital stock, (iii) the
      purchase of fractional interests in shares of the Guarantor’s capital stock
      pursuant to the conversion or exchange provisions of such capital stock or
      the
      security being converted or exchanged, (iv) any declaration of a dividend in
      connection with any rights plan, the issuance of rights, stock or other property
      under any rights plan or the redemption or repurchase of rights pursuant
      thereto, or (v) any dividend or distribution in the form of stock, warrants,
      options or other rights where the dividend or distribution stock or the stock
      issuable upon exercise of such warrants, options or other rights is the same
      stock as that on which the dividend or distribution is being paid or ranks
      pari passu with or junior to such stock) or dividends or distributions
      in shares of, or options, warrants, rights to subscribe for or purchase shares
      of, common stock of the Guarantor.

     

    SECTION
      6.2  Subordination.

     

    The
      obligations of the Guarantor under this Guarantee Agreement will constitute
      unsecured obligations of the Guarantor and will rank subordinate and junior
      in
      right of 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        
payment
        to all Senior Debt of the Guarantor to the extent and in the same manner
        that
        the Notes are subordinated to Senior Debt pursuant to the Indenture, it being
        understood that the terms of Article XII of the Indenture shall apply to
        the
        obligations of the Guarantor under this Guarantee Agreement as if such
        provisions were set forth in full herein.

    

     

    SECTION
      6.3  Pari
      Passu Guarantees.

     

    (a)  The
      obligations of the Guarantor under this Guarantee Agreement shall rank pari
      passu with the obligations of the Guarantor under any similar guarantee
      agreements issued by the Guarantor with respect to preferred securities (if
      any)
      similar to the Preferred Securities, issued by trusts other than the Issuer
      established or to be established by the Guarantor (if any), in each case similar
      to the Issuer, including, without limitation, the Guarantee Agreements,
      dated September 23, 2003 and June 28, 2005, issued by the
      Guarantor with respect to the preferred securities issued by Greene County
      Capital Trust I and Greene County Capital Trust II, respectively.

     

    (b)  The
      right
      of the Guarantor to participate in any distribution of assets of any of its
      subsidiaries upon any such subsidiary’s liquidation or reorganization or
      otherwise is subject to the prior claims of creditors of that subsidiary, except
      to the extent the Guarantor may itself be recognized as a creditor of that
      subsidiary.  Accordingly, the Guarantor’s obligations under this
      Guarantee will be effectively subordinated to all existing and future
      liabilities of the Guarantor’s subsidiaries, and claimants should look only to
      the assets of the Guarantor for payments hereunder. This Guarantee does not
      limit the incurrence or issuance of other secured or unsecured debt of the
      Guarantor, including Senior Debt of the Guarantor, under any indenture or
      agreement that the Guarantor may enter into in the future or
      otherwise.

     

    ARTICLE
      VII

     

    Termination

     

    SECTION
      7.1  Termination.

     

    This
      Guarantee Agreement shall terminate and be of no further force and effect upon
      (a) full payment of the Redemption Price of all Preferred Securities, (b) the
      distribution of Notes to the Holders in exchange for all of the Preferred
      Securities or (c) full payment of the amounts payable in accordance with the
      Trust Agreement upon liquidation of the Issuer.  Notwithstanding the
      foregoing, this Guarantee Agreement will continue to be effective or will be
      reinstated, as the case may be, if at any time any Holder must restore payment
      of any sums paid with respect to Preferred Securities or this Guarantee
      Agreement.  The obligations of the Guarantor under Sections 3.3
      and 3.4 shall survive any such termination or the resignation and removal
      of the Guarantee Trustee.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    ARTICLE
      VIII

     

    Miscellaneous

     

    SECTION
      8.1  Successors
      and Assigns.

     

    All
      guarantees and agreements contained in this Guarantee Agreement shall bind
      the
      successors, assigns, receivers, trustees and representatives of the Guarantor
      and shall inure to the benefit of the Holders of the Preferred Securities then
      outstanding.  Except in connection with a consolidation, merger or
      sale involving the Guarantor that is permitted under Article VIII of the
      Indenture and pursuant to which the successor or assignee agrees in writing
      to
      perform the Guarantor’s obligations hereunder, the Guarantor shall not assign
      its rights or delegate its obligations hereunder without the prior approval
      of
      the Holders of a Majority in Liquidation Amount of the Preferred
      Securities.

     

    SECTION
      8.2  Amendments.

     

    Except
      with respect to any changes that do not adversely affect the rights of the
      Holders in any material respect (in which case no consent of the Holders will
      be
      required), this Guarantee Agreement may only be amended with the prior approval
      of the Guarantor, the Guarantee Trustee and the Holders of not less than a
      Majority in Liquidation Amount of the Preferred Securities.  The
      provisions of Article VI of the Trust Agreement concerning meetings or consents
      of the Holders shall apply to the giving of such approval.

     

    SECTION
      8.3  Notices.

     

    Any
      notice, request or other communication required or permitted to be given
      hereunder shall be in writing, duly signed by the party giving such notice,
      and
      delivered, telecopied or mailed by first class mail as follows:

     

    (a)  if
      given
      to the Guarantor, to the address or facsimile number set forth below or such
      other address, facsimile number or to the attention of such other Person as
      the
      Guarantor may give by notice to the Guarantee Trustee and the
      Holders:

     

    Greene
      County Bancshares, Inc.

    100
      North
      Main Street

    Greeneville,
      Tennessee

    Facsimile
      No.: (423) 278-3090

    Attention:
      Chief Financial Officer

     

    (b)  if
      given
      to the Issuer, at the Issuer’s address or facsimile number set forth below or
      such other address, facsimile number or to the attention of such other Person
      as
      the Issuer may give by notice to the Guarantee Trustee and the
      Holders:

     

    GreenBank
      Capital Trust I

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    c/o
      Greene County Bancshares, Inc.

    100
      North
      Main Street

    Greeneville,
      Tennessee

    Facsimile
      No.: (423) 278-3090

    Attention:
      Administrative Trustee

    

    (c)  if
      given
      to the Guarantee Trustee, at the address or facsimile number set forth below
      or
      such other address, facsimile number or to the attention of such other Person
      as
      the Guarantee Trustee may give by notice to the Guarantor and the
      Holders:

     

    Wilmington
      Trust Company

    Rodney
      Square North

    1100
      North Market St.

    Wilmington,
      Delaware 19890-1600

    Facsimile
      No.: (302) 636-4140

    Attention:
      Corporate Trust Administration

    

    (d)  if
      given
      to any Holder, at the address set forth on the books and records of the
      Issuer.

     

    All
      notices hereunder shall be deemed to have been given when received in person,
      telecopied with receipt confirmed, or mailed by first class mail, postage
      prepaid, except that if a notice or other document is refused delivery or cannot
      be delivered because of a changed address of which no notice was given, such
      notice or other document shall be deemed to have been delivered on the date
      of
      such refusal or inability to deliver.

     

    SECTION
      8.4  Benefit.

     

    This
      Guarantee Agreement is solely for the benefit of the Holders and is not
      separately transferable from the Preferred Securities.

     

    SECTION
      8.5  Governing
      Law.

     

    This
      Guarantee Agreement and the rights and obligations of each party hereto, shall
      be construed and enforced in accordance with and governed by the laws of the
      State of New York without reference to its conflict of laws provisions (other
      than Section 5-1401 of the General Obligations Law).

     

    SECTION
      8.6  Submission
      to Jurisdiction.

     

    ANY
      LEGAL
      ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR
      ARISING OUT OF THIS GUARANTEE AGREEMENT MAY BE BROUGHT IN OR REMOVED TO THE
      COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE
      UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE
      SITTING IN THE BOROUGH OF MANHATTAN). BY 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        
EXECUTION
        AND DELIVERY OF THIS GUARANTEE AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF
        AND IN
        RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION
        OF THE
        AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS
        ARISING
        OUT OF OR IN CONNECTION WITH THIS GUARANTEE AGREEMENT.

    

     

    SECTION
      8.7  Counterparts.

     

    This
      instrument may be executed in any number of counterparts, each of which so
      executed shall be deemed to be an original, but all such counterparts shall
      together constitute but one and the same instrument.

     

    [THE
      NEXT
      PAGE IS THE SIGNATURE PAGE]

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof, the undersigned have executed this Guarantee Agreement as
      of
      the date first above written.

     

     

    
      	GREENE
              COUNTY BANCSHARES, INC.
	 	 
	 	 
	By: 	/s/
              James E.
              Adams                  
	 	Name:
              James E. Adams
	 	Title:
              Chief Financial Officer
	 	 
	 	 
	WILMINGTON
              TRUST COMPANY, not in its individual capacity, but solely as Guarantee
              Trustee
	 	 
	 	 
	By: 	/s/
              W. Thomas Morris,
              II        
	 	Name:
              W. Thomas Morris, II
	 	Title:
              Assistant Vice
              Presidentex10-a.htm

    
      

      

    

     

    

    Exhibit
      10(A)

    

    FNB
      CORPORATION

    2000
      INCENTIVE STOCK PLAN

    

    ARTICLE
      1

    Establishment,
      Purpose, and Duration

    

    1.1           Establishment
      of the Plan.  FNB Corporation, a Virginia corporation (the
“Company”) hereby establishes an incentive compensation plan to be known as the
      “FNB Corporation 2000 Incentive Stock Plan”, as set forth in this
      document.  Unless otherwise defined herein, all capitalized terms
      shall have the meanings set forth in Section 2.1 herein.  The Plan
      permits the grant of Incentive Stock Options, Non-qualified Stock Options,
      Stock
      Appreciation Rights and Stock Awards.

    

    The
      Plan was adopted by the Board of
      Directors on, and shall become effective, as of February 15, 2000 (the
“Effective Date”), subject to the approval by vote of shareholders of the
      Company in accordance with applicable laws.  Awards may be granted
      prior to shareholder approval of the Plan, but each such Award shall be subject
      to the approval of the Plan by the shareholders.

    

    1.2           Purpose
      of the Plan.  The purpose of the Plan is to promote the success of
      the Company and its Subsidiaries by providing incentives to Key Employees that
      will promote the identification of their personal interest with the long-term
      financial success of the Company and with growth in shareholder
      value.  The Plan is designed to provide flexibility to the Company in
      its ability to motivate, attract, and retain the services of Key Employees
      upon
      whose judgment, interest, and special effort the successful conduct of its
      operation is largely dependent.  The Plan is also intended to promote
      a greater identity of interest between Non-Employee Directors and the Company’s
      shareholders by increasing the Non-Employee Director’s proprietary interest in
      the Company through receipt of Awards as additional compensation or in lieu
      of
      cash payments for a portion of each Non-Employee Director’s fees.

    

    1.3           Duration
      of the Plan.  The Plan shall commence on the Effective Date, as
      described in Section 1.1 herein, and shall remain in effect, subject to the
      right of the Board of Directors to terminate the Plan at any time pursuant
      to
      Article 12 herein, until February 14, 2010 (the “Term”), at which time it
      shall terminate except with respect to Awards made prior to, and outstanding
      on,
      that date which shall remain valid in accordance with their terms.

    

    ARTICLE
      2

    Definitions

    

    2.1           Definitions.  Except
      as otherwise defined in the Plan, the following terms shall have the meanings
      set forth below:

    

    (a)           “Agreement”
      means a written agreement implementing the grant of each Award signed by an
      authorized officer of the Company and by the Participant.

    

    (b)           “Automatic
      Grant Date” means the first business day after the first meeting of the Board of
      Directors of the Company following each annual meeting of stockholders of the
      Company during the Term.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
 

    (c)           “Award”
      means, individually or collectively, a grant under this Plan of Automatic
      Options, Automatic Stock Awards, Incentive Stock Options, Non-qualified Stock
      Options, Stock Appreciation Rights, Stock Awards, and Stock Payment
      Awards.  Automatic Options and Automatic Stock Awards are collectively
      referred to as “Automatic Awards.”

    

    (d)           “Award
      Date” or “Grant Date” means the date on which an Award is made by the Committee
      under this Plan.

    

    (e)           “Board”
      or “Board of Directors” means the Board of Directors of the Company, unless such
      term is used with respect to a Subsidiary (such as in determining Non-Employee
      Directors eligible for Automatic Awards), in which event it shall mean the
      present and any succeeding Board of Directors of that Subsidiary.

    

    (f)           “Change
      in Control” means the occurrence, after the Effective Date, of any of the
      following:

    

    (i)           the
      closing of a corporate reorganization in which First National Bank becomes
      a
      subsidiary of a holding company, the majority of the common stock of which
      is
      owned, in aggregate, by persons who did not own the majority of the common
      stock
      of the Company immediately prior to the reorganization;

    

    (ii)           individuals
      who constitute the Board of the Company on the Effective Date (the “Incumbent
      Board”) cease for any reason to constitute at least a majority thereof; provided
      that any person becoming a director subsequent to the Effective Date whose
      nomination for election was approved by a vote of at least three-quarters (3/4)
      of the directors comprising the Incumbent Board shall be considered as though
      such person were a member of the Incumbent Board for purposes
      hereof;

    

    (iii)           the
      closing of the merger of First National Bank with or into another person;
      or

    

    (iv)           the
      closing of the sale, conveyance or other transfer of substantially all of the
      assets of First National Bank to another person.

    

    For
      purposes hereof, the term “person” shall include any individual, corporation,
      partnership, group, association, or other “person”, as such term is used in
      Section 14(d) of the Exchange Act, other than the Company, any entity in which
      the Company owns a majority of the voting interest, or any employee benefit
      plan(s) sponsored by the Company.

    

    (g)           “Code”
      means the Internal Revenue Code of 1986, as amended from time to
      time.

    

    (h)           “Committee”
      means the committee of the Board appointed to administer the Plan pursuant
      to
      Article 3 herein, all of the members of which shall be “non-employee directors”
as defined in Rule 16b-3, as amended, under the Exchange Act, or any similar
      or
      successor rule, and “outside directors” within the meaning of Section
      162(m)(4)(C)(i) of the Code, as amended. Unless otherwise determined by the
      Board of Directors, the Committee shall consist of all members of the Board
      of
      Directors of the Company who are both non-employee directors and outside
      directors (as hereinbefore defined).

     

    
      
         

      

      
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    (i)           “Company”
      means FNB Corporation, or any successor thereto as provided in Article 14
      herein.

    

    (j)           “Exchange
      Act” means the Securities Exchange Act of 1934, as amended.

    

    (k)           “Fair
      Market Value” of a Share means (i) with respect to Awards other than Stock
      Payment Awards, the mean between the high and low sales price of the Stock
      on
      the relevant date if it is a trading date, or if not, on the most recent date
      on
      which the Stock was traded prior to such date, as reported by NASDAQ National
      Market System; or if, in the opinion of the Committee, this method is
      inapplicable or inappropriate for any reason, the fair market value as
      determined pursuant to a reasonable method adopted by the Committee in good
      faith for such purpose and (ii) with respect to Stock Payment Awards, the
      average closing sale price of the Stock based upon the closing sales price
      of
      the Stock, as reported by the NASDAQ National Market System, for all trading
      dates from the beginning of the relevant calendar quarter up through and
      including the Determination Date for that quarter (as defined in Section 9.3
      herein); or if, in the opinion of the Committee, this method is inapplicable
      or
      inappropriate for any reason, the fair market value as determined pursuant
      to a
      reasonable method adopted by the Committee in good faith for such
      purpose.

    

    (l)           “Incentive
      Stock Option” or “ISO” means an option to purchase Stock, granted under Article
      6 herein, which is designated as an incentive stock option and is intended
      to
      meet the requirements of Section 422 of the Code.

    

    (m)           “Key
      Employee” means an officer or other key employee of the Company or its
      Subsidiaries, who, in the opinion of the Committee, can contribute significantly
      to the growth and profitability of, or perform services of major importance
      to,
      the Company and its Subsidiaries.  “Key Employee” does not include
      Non-Employee Directors.

    

    (n)           “Non-Employee
      Director” means (i) with respect to Automatic Awards, an individual who is
      a member of the Board of the Company or a Subsidiary on the applicable Automatic
      Grant Date and who is not an employee of the Company or a Subsidiary and
      (ii) with respect to Stock Payment Awards, an individual who is a member of
      the Board of the Company or a Subsidiary at any time during the calendar year
      and who is not an employee of the Company or Subsidiary.

    

    (o)           “Non-qualified
      Stock Option” or “NQSO” means an option to purchase Stock, granted under Article
      6 or Article 9 herein, which is not intended to be an Incentive Stock
      Option.

    

    (p)           “Option”
      means an Incentive Stock Option or a Non-qualified Stock Option.

     

    
      
         

      

      
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    (q)           “Participant”
      means a Key Employee or Non-Employee Director who is granted or receives an
      Award under the Plan.

    

    (r)           “Performance
      Criteria” means one or more specified performance goals, which may be stated in
      terms of the value of the Common Stock, return on equity, earnings per share,
      total earnings, earnings growth, return on assets, or return on capital, with
      respect to awards of Restricted Stock pursuant to Article 8 herein.

    

    (s)           “Period
      of Restriction” means the period during which the transfer of Shares of
      Restricted Stock is restricted, pursuant to Article 8 herein.

    

    (t)           “Plan”
      means the FNB Corporation 2000 Incentive Stock Plan, as described herein and
      as
      hereafter from time to time amended.

    

    (u)           “Related
      Option” means an Option with respect to which a Stock Appreciation Right has
      been granted.

    

    (v)           “Restricted
      Stock” means a Stock Award which is subject to a Period of Restriction and/or
      satisfaction of Performance Criteria granted to a Participant pursuant to
      Article 8 herein.

    

    (w)           “Restrictions”
      means any applicable Period of Restriction and/or Performance Criteria with
      respect to Shares of Restricted Stock.

    

    (x)           “Stock”
      or “Shares” means the Common Stock of the Company.

    

    (y)           “Stock
      Appreciation Right” or “SAR” means an Award, designated as a stock appreciation
      right, granted to a Participant pursuant to Article 7 herein.

    

    (z)           “Stock
      Awards” means an award of Stock granted to a Participant pursuant to Article 8
      or Article 9 herein.

    

    (aa)           “Stock
      Payment Awards” means an award of Stock made to a Non-Employee Director in
      payment of director fees (retainer and meeting attendance fees) in accordance
      with the formula and other provisions established in Section 9.3
      herein.

    

    (bb)           “Subsidiary”
      shall mean a corporation at least 50% of the total combined voting power of
      all
      classes of stock of which is owned by the Company, either directly or through
      one or more of its Subsidiaries.

    

    ARTICLE
      3

    Administration

    

    3.1           The
      Committee.  The Plan shall be administered by the Committee which
      shall have all powers necessary or desirable for such
      administration.  The express grant in this Plan of any specific power
      to the Committee shall not be construed as limiting any power or authority
      of
      the Committee.  In addition to any other powers and subject to the
      provisions of the Plan, the Committee shall have the following specific
      powers:  (i) to determine the terms and conditions upon which the
      Awards may be made and exercised; (ii) to determine all terms and
      provisions of each Agreement, which need not be identical; (iii) to
      construe and interpret the Agreements and the Plan; (iv) to establish,
      amend, or waive rules or regulations for the Plan’s administration; (v) to
      accelerate the exercisability of any Award or the termination of any Period
      of
      Restriction; and (vi) to make all other determinations and take all other
      actions necessary or advisable for the administration of the Plan.

     

    
      
         

      

      
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    3.2           Delegation
      of Certain Duties.  The Committee may in its sole discretion
      delegate all or part of its duties and obligations to designated officer(s)
      to
      administer the Plan with respect to Awards to Key Employees who are not subject
      to Section 16 of the Exchange Act.

    

    3.3           Selection
      of Key Employees.  The Committee shall have the authority to grant
      Awards under the Plan, from time to time, to such Key Employees as may be
      selected by it.  Each Award shall be evidenced by an
      Agreement.

    

    3.4           Decisions
      Binding.  All determinations and decisions made by the Board or
      the Committee pursuant to the provisions of the Plan shall be final, conclusive,
      and binding.

    

    3.5           Requirements
      of Rule 16b-3 and Code Section 162(m).  Notwithstanding any other
      provision of the Plan, the Board or the Committee may impose such conditions
      on
      any Award, and amend the Plan in any such respects, as may be required to
      satisfy the requirements of Rule 16b-3, as amended (or any successor or similar
      rule), under the Exchange Act.

    

    Any
      provision of the Plan to the
      contrary notwithstanding, and except to the extent that the Committee determines
      otherwise:  (i) transactions by and with respect to officers and
      directors of the Company who are subject to Section 16(b) of the Exchange Act
      (hereafter, “Section 16 Persons”) shall comply with any applicable conditions of
      SEC Rule 16b-3; (ii) transactions with respect to persons whose
      remuneration is subject to the provisions of Section 162(m) of
      the  Code shall conform to the requirements of Section 162(m)(4)(C) of
      the Code; and (iii) every provision of the Plan shall be administered,
      interpreted, and construed to carry out the foregoing provisions of this
      sentence.

    

    Notwithstanding
      any provision of the
      Plan to the contrary, the Plan is intended to give the Committee the authority
      to grant Awards that qualify as performance-based compensation under Code
      Section 162(m)(4)(C) as well as Awards that do not so qualify.  Every
      provision of the Plan shall be administered, interpreted, and construed to
      carry
      out such intention, and any provision that cannot be so administered,
      interpreted, and construed shall to that extent be disregarded; and any
      provision of the Plan that would prevent an Award that the Committee intends
      to
      qualify as performance-based compensation under Code Section 162(m)(4)(C) from
      so qualifying shall be administered, interpreted, and construed to carry out
      such intention, and any provision that cannot be so administered, interpreted,
      and construed shall to that extent be disregarded.

    

    3.6           Indemnification.  In
      addition to such other rights of indemnification as they may have as directors
      or as members of the Committee, the members of the Committee or their delegates
      shall be indemnified by the Company against reasonable expenses, including
      attorneys’ fees, actually and reasonably incurred in connection with the defense
      of any action, suit, or proceeding, or in connection with any appeal therein,
      to
      which they or any of them may be a party by reason of any action taken or
      failure to act under or in connection with the Plan or any Award granted or
      made
      hereunder, and against all amounts reasonably paid by them in settlement thereof
      or paid by them in satisfaction of a judgment in any such action, suit, or
      proceeding, if such members acted in good faith and in a manner which they
      believed to be in, and not opposed to, the best interests of the Company and
      its
      Subsidiaries.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    ARTICLE
      4

    Stock
      Subject to the Plan

    

    4.1           Number
      of Shares.  Subject to adjustment as provided in Section 4.3
      herein, the maximum aggregate number of Shares that may be issued pursuant
      to
      Awards made under the Plan shall not exceed 400,000.  No more than
      one-quarter of the aggregate number of such Shares shall be issued in connection
      with Stock Awards.  Except as provided in Section 4.2 herein, the
      issuance of Shares in connection with the exercise of, or as other payment
      for
      Awards, under the Plan shall reduce the number of Shares available for future
      Awards under the Plan.

    

    4.2           Lapsed
      Awards, Forfeited Shares and Delivery of Shares as Payment .  If
      any Award granted under this Plan (for which no material benefits of ownership
      have been received, including dividends) terminates, expires, or lapses for
      any
      reason other than by virtue of exercise of the Award, or if Shares issued
      pursuant to Awards (for which no material benefits of ownership have been
      received, including dividends) are forfeited, any Stock subject to such Award
      again shall be available for the grant of an Award under the Plan, subject
      to
      Section 7.2 herein.  Shares that are tendered, whether by physical
      delivery or by attestation, to the Company by a Participant as full or partial
      payment of the exercise price of any Award or in payment of any applicable
      withholding for federal, state, city, local or other taxes incurred in
      connection with the exercise of any Award shall become available for future
      grant or sale under the Plan; provided, however, that the total number of Shares
      so tendered from which ISOs may be granted shall not exceed
      400,000.

    

    4.3           Capital
      Adjustments.  The number and class of Shares subject to each
      outstanding Award and each Automatic Award and the Option Price (as defined
      in
      Section 6.3 herein) shall be proportionately, equitably, and appropriately
      adjusted in such manner as the Committee shall determine in order to retain
      the
      economic value or opportunity to reflect any stock dividend, stock split,
      recapitalization, merger, consolidation, reorganization, reclassification,
      combination, exchange of shares or similar event in which the number or class
      of
      Shares is changed without the receipt or payment of consideration by the
      Company. Where an Award being adjusted is an ISO or is subject to Section 409A
      of the Code, the adjustment shall also be effected so as to comply with Section
      424(a) of the Code and not to constitute a modification within the meaning
      of
      Section 424(h) or 409A, as applicable, of the Code.

    

    ARTICLE
      5

    Eligibility

    

    Persons
      eligible to participate in the
      Plan and receive Awards (other than Automatic Awards) include all employees
      of
      the Company and its Subsidiaries who, in the opinion of the Committee, are
      Key
      Employees.

    

    Non-Employee
      Directors shall receive
      Automatic Awards, and may elect to receive Stock Payment Awards, under the
      Plan
      pursuant to Article 9.

    

    ARTICLE
      6

    Stock
      Options to Key Employees

    

    6.1           Grant
      of Options.  Subject to the terms and provisions of the Plan,
      Options may be granted to Key Employees at any time and from time to time as
      shall be determined by the Committee.  The Committee shall have
      complete discretion in determining the number of Shares subject to Options
      granted to each Key Employee; provided, however, (i) no Key Employee may be
      granted Options in any calendar year for more than 40,000 shares of Common
      Stock
      and (ii) that the aggregate Fair Market Value (determined at the time the
      Award is made) of Shares with respect to which any Key Employee may first
      exercise ISOs granted under the Plan during any calendar year may not exceed
      $100,000 or such amount as shall be specified in Section 422 of the Code and
      rules and regulations thereunder.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
 

    6.2           Option
      Agreement.  Each Option grant shall be evidenced by an Agreement
      that shall specify the type of Option granted, the Option Price (as defined
      in
      Section 6.3 herein), the duration of the Option, the number of Shares to which
      the Option pertains, any conditions imposed upon the exercisability of Options
      in the event of retirement, death, disability, or other termination of
      employment, and such other provisions as the Committee shall
      determine.  The Agreement shall specify whether the Option is intended
      to be an Incentive Stock Option within the meaning of Section 422 of the Code,
      or Nonqualified Stock Option not intended to be within the provisions of Section
      422 of the Code.

    

    6.3           Option
      Price.  The exercise price per share of Stock covered by an Option
      (“Option Price”) shall be determined by the Committee subject to the following
      limitations.  The Option Price shall not be less than 100% of the Fair
      Market Value of such Stock on the Grant Date.  In addition, an ISO
      granted to an employee who, at the time of grant, owns (within the meaning
      of
      Section 425(d) of the Code) Stock possessing more than 10% of the total combined
      voting power of all classes of Stock of the Company, shall have an Option Price
      which is at least equal to 110% of the Fair Market Value of the
      Stock.

    

    6.4           Duration
      of Options.  Each Option shall expire at such time as the
      Committee shall determine at the time of grant; provided, however, no ISO shall
      be exercisable later than the tenth (10th) anniversary date of its Award
      Date.  In addition, an ISO granted to an employee who, at the time of
      grant, owns (within the meaning of Section 425(d) of the Code) Stock possessing
      more than 10% of the total combined voting power of all classes of Stock of
      the
      Company, shall not be exercisable later than the fifth (5th) anniversary date
      of
      its Award Date.

    

    6.5           Exercisability.  Options
      granted under the Plan shall be exercisable at such times and be subject to
      such
      restrictions and conditions as the Committee shall determine, which need not
      be
      the same for all Key Employees.

    

    6.6           Method
      of Exercise.  Options shall be exercised by the delivery of a
      written notice to the Company in the form prescribed by the Committee setting
      forth the number of Shares with respect to which the Option is to be exercised,
      accompanied by full payment for the Shares which shall be deemed to include
      arrangements, if any, approved by the Committee for the delivery to the Company
      of the proceeds of a sale or margin loan in the case of a “cashless”
exercise.  The Option Price shall be payable to the Company in full
      either in cash (including the proceeds of a cashless exercise in the Committee’s
      discretion), by delivery of Shares of Stock valued at Fair Market Value at
      the
      time of exercise, by delivery of a promissory note (in the Committee’s
      discretion) or by a combination of the foregoing.  As soon as
      practicable after receipt of written notice and payment, the Company shall
      deliver to the Participant stock certificates in an appropriate amount based
      upon the number of Options exercised, issued in the Participant’s
      name.  No Participant who is awarded Options shall have rights as a
      shareholder until the date of exercise of the Options.

    

    6.7           Restrictions
      on Stock Transferability.  The Committee shall impose such
      restrictions on any Shares acquired pursuant to the exercise of an Option under
      the Plan as it may deem advisable, including, without limitation, restrictions
      under the applicable Federal securities law, under the requirements of the
      National Association of Securities Dealers, Inc. or any stock exchange upon
      which such Shares are then listed, and under any blue sky or state securities
      laws applicable to such Shares.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
 

    6.8           Nontransferability
      of Options.  No Option granted under the Plan may be sold,
      transferred, pledged, assigned, or otherwise alienated or hypothecated, other
      than by will or by the laws of descent and distribution.  Further, all
      Options granted to a Participant under the Plan shall be exercisable during
      his
      lifetime only by such Participant or his guardian or legal
      representative.

    

    ARTICLE
      7

    Stock
      Appreciation Rights to Key Employees

    

    7.1           Grant
      of Stock Appreciation Rights.  Subject to the terms and conditions
      of the Plan, Stock Appreciation Rights may be granted to Key Employees at the
      discretion of the Committee (i) in connection with the grant, and
      exercisable in lieu of Options (“Tandem SARs”), (ii) independent of the
      grant of the Options (“Freestanding SARs”), or (iii) in any combination of
      the foregoing.  No Key Employee may be granted more than 40,000 SARs
      in any calendar year.

    

    7.2           Exercise
      of Tandem SARs.  Tandem SARs may be exercised with respect to all
      or part of the Shares subject to the Related Option.  The exercise of
      Tandem SARs shall cause a reduction in the number of Shares subject to the
      Related Option equal to the number of Shares with respect to which the Tandem
      SAR is exercised.  Conversely, the exercise, in whole or in part, of a
      Related Option shall cause a reduction in the number of Shares subject to the
      Tandem Option equal to the number of Shares with respect to which the Related
      Option is exercised.  Shares with respect to which the Tandem SAR
      shall have been exercised may not be subject again to an Award under the
      Plan.

    

    Notwithstanding
      any other provision of
      the Plan to the contrary, a Tandem SAR shall expire no later than the expiration
      of the Related Option, shall be transferable only when and under the same
      conditions as the Related Option and shall be exercisable only when the Related
      Option is eligible to be exercised.  In addition, if the Related
      Option is an ISO, a Tandem SAR shall be  exercised for no more than
      100% of the difference between the Option Price of the Related Option and the
      Fair Market Value of Shares subject to the Related Option at the time the Tandem
      SAR is exercised.

    

    7.3           Exercise
      of Freestanding SARs.  Freestanding SARs may be exercised upon
      whatever terms and conditions the Committee, in it sole discretion, imposes
      upon
      such SARs.

    

    7.4           Other
      Conditions Applicable to SARs.   In no event shall the term
      of any SAR granted under the Plan exceed ten years from the Grant
      Date.  A SAR may be exercised only when the Fair Market Value of a
      Share exceeds either (i) the Option Price of the Related Option in the case
      of a Tandem SAR or (ii) the Fair Market Value of a Share on the Grant Date
      in the case of a Freestanding SAR.  A SAR shall be exercised by
      delivery to the Committee of a notice of exercise in the form prescribed by
      the
      Committee.

    

    7.5           Payment
      Upon Exercise of SARs.  Subject to the provisions of the
      Agreement, upon the exercise of a SAR, the Participant is entitled to receive,
      without any payment to the Company (other than required tax withholding
      amounts), an amount equal to the product of multiplying (i) the number of
      Shares with respect to which the SAR is exercised by (ii) an amount equal
      to the excess of (A) the Fair Market Value per Share on the date of
      exercise of the SAR over (B) either (x) the Option Price of the
      Related Option in the case of a Tandem SAR or (y) the Fair Market Value per
      Share on the Award Date in the case of a Freestanding SAR.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
 

    Payment
      to the Key Employee shall be
      made in Shares, valued at the Fair Market Value on the date of exercise, in
      cash
      if the Key Employee has so elected in his written notice of exercise and the
      Committee has consented thereto, or a combination thereof.  To the
      extent required to satisfy the conditions of Rule 16b-3(e) under the Exchange
      Act, or any successor or similar rule, or as otherwise provided in the
      Agreement, the Committee shall have the sole discretion to consent to or
      disapprove the election of any Key Employee to receive cash in full or partial
      settlement of a SAR.  In cases where an election of settlement in cash
      must be consented to by the Committee, the Committee may consent to or
      disapprove such election at any time after such election, or within such period
      for taking action as is specified in the election, and failure to give consent
      shall be disapproval.  Consent may be given in whole or as to a
      portion of the SAR surrendered by the Key Employee.  If the election
      to receive cash is disapproved in whole or in part, the SAR shall be deemed
      to
      have been exercised for Shares, or, if so specified in the notice of exercise
      and election, not to have been exercised to the extent the election to receive
      cash is disapproved.

    

    7.6           Nontransferability
      of SARs.  No SAR granted under the Plan may be sold, transferred,
      pledged, assigned, or otherwise alienated or hypothecated, other than by will
      or
      by the laws of descent and distribution.  Further, all SARs granted to
      a Key Employee under the Plan shall be exercisable during his lifetime only
      by
      such Key Employee or his guardian or legal representative.

    

    ARTICLE
      8

    Stock
      Awards to Key Employees

    

    8.1           Grant
      of Stock Awards.  Subject to the terms and provisions of the Plan,
      the Committee, at any time and from time to time, may grant Stock Awards under
      the Plan to such Key Employees, which may but need not be Restricted Stock,
      and
      in such amounts as it shall determine; provided, however, that no Key Employee
      may be granted Stock Awards in any calendar year for more than 10,000 shares
      of
      Common Stock.  Key Employees receiving Stock Awards are not required
      to pay the Company therefor (except for applicable tax withholding) other than
      by the rendering of services.

    

    8.2           Stock
      Award Agreement.  Each Stock Award shall be evidenced by an
      Agreement that shall specify the number of shares of Stock covered by the Stock
      Award, any applicable Restrictions  and such other provisions as the
      Committee shall determine.  The Committee may impose such other
      restrictions to be set forth in the Agreement as it may deem advisable,
      including without limitation, restrictions under applicable Federal or state
      securities laws, and may legend the certificates representing Stock Awards
      to
      give appropriate notice of such restrictions.

    

    8.3           Transferability.  Except
      as otherwise provided in the Agreement pursuant to which Stock Awards are made
      and subject to the limitation in the next sentence, the Shares of Stock granted
      as Stock Awards may not be sold, transferred, pledged, assigned, or otherwise
      alienated or hypothecated until the termination of any applicable Restrictions
      or upon earlier satisfaction of other conditions as specified by the Committee
      in its sole discretion and set forth in the Agreement.  All rights
      with respect to the Stock Awards granted to a Participant under the Plan shall
      be exercisable during his lifetime only by such Participant or his guardian
      or
      legal representative.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
 

    8.4           Restrictions
      on Restricted Stock.  With respect to Shares of Restricted Stock
      granted pursuant to the Plan, the Committee shall either (i) impose a
      Period of Restriction  which  requires continuation of
      employment for a prescribed period, or (ii) require the satisfaction of one
      or more specified Performance Criteria to be achieved within a stated time
      period, in order for the Participant to be fully vested in the Shares of
      Restricted Stock.  Unless otherwise determined by the Committee,
      custody of Shares of Restricted Stock shall be retained by the Company until
      the
      termination of the Restrictions pertaining thereto.

    

    8.5           Certificate
      Legend.  In addition to any legends placed on certificates
      pursuant to Section 8.2 herein, each certificate representing shares of
      Restricted Stock granted pursuant to the Plan shall bear the following
      legend:

    

    The
      sale
      or other transfer of the Shares of Stock represented by this certificate,
      whether voluntary, involuntary, or by operation of law, is subject to certain
      restrictions on transfer set forth in the FNB Corporation 2000 Incentive Stock
      Plan, in the rules and administrative procedures adopted pursuant to such Plan,
      and in an Agreement dated February 15, 2000.  A copy of the Plan, such
      rules and procedures, and such Restricted Stock Agreement may be obtained from
      the Secretary of FNB Corporation.

    

    8.6           Removal
      of Restrictions.  Except as otherwise provided in this Article,
      Shares of Restricted Stock covered by each Restricted Stock Award made under
      the
      Plan shall become freely transferable by the Participant after the last day
      of
      the Period of Restriction or on the day immediately following the date on which
      the Performance Criteria have been timely satisfied.  Once the Shares
      are released from the restrictions, the Company shall deliver the certificate
      representing the Restricted Stock to the Participant and the Participant shall
      be entitled to have the legend required by Section 8.5 herein removed from
      his Stock certificate.

    

    8.7           Voting
      Rights.   Participants entitled to Shares of Restricted Stock
      still subject to Restrictions may exercise full voting rights with respect
      to
      those Shares.

    

    8.8           Dividends
      and Other Distributions.  Unless otherwise provided in the
      Agreement, Participants entitled to Shares of Restricted Stock still subject
      to
      Restrictions shall be entitled to receive all dividends and other distributions
      paid with respect to those shares while they are so held.  If any such
      dividends or distributions are paid in Shares, the Shares shall be subject
      to
      the same restrictions on transferability and subject to the same rules for
      custody as the Shares of Restricted Stock with respect to which they were
      distributed.

    

    8.9           Termination
      of Employment Due to Retirement.  Unless otherwise provided in the
      Agreement, in the event that a Key Employee terminates his employment with
      the
      Company or one of its Subsidiaries because of normal retirement (as defined
      in
      the plans and/or policies of the Company in effect at the time), any remaining
      Restrictions applicable to the Restricted Stock Shares pursuant to
      Section 8.4 herein shall automatically terminate and, except as otherwise
      provided in Section 8.2 herein, the Shares of Restricted Stock shall
      thereby be free of restrictions and freely transferable.  Unless
      otherwise provided in the Agreement, in the event that a Key Employee terminates
      his employment with the Company because of early retirement (as defined in
      the
      policies and/or plans of the Company in effect at the time), the Committee,
      in
      its sole discretion, may waive the restrictions remaining on any or all Shares
      of Restricted Stock pursuant to Section 8.2 herein and add such new
      restrictions to those Shares of Restricted Stock as it deems
      appropriate.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    8.10           Termination
      of Employment Due to Death or Disability.  Unless otherwise
      provided in the Agreement, in the event a Key Employee’s employment is
      terminated because of death or disability, any remaining Restriction applicable
      to the Restricted Stock pursuant to Section 8.4 herein shall automatically
      terminate and, except as otherwise provided in Section 8.2 herein, the
      shares of Restricted Stock shall thereby be free of restrictions and fully
      transferable.

    

    8.11           Termination
      of Employment for Other Reasons.  Unless otherwise provided in the
      Agreement, in the event that a Key Employee terminates his employment with
      the
      Company for any reason other than for death, disability, or retirement, as
      set
      forth in Sections 8.9 and 8.10 herein,  then any shares of Restricted
      Stock still subject to Restrictions as of the date of such termination shall
      automatically be forfeited and returned to the Company.

    

    8.12           Failure
      to Satisfy Performance Criteria.  In the event that the specified
      Performance Criteria are not satisfied within the time period established by
      the
      Committee, the Shares of Restricted Stock which were awarded subject to the
      satisfaction of such Performance Goals shall be automatically forfeited and
      returned to the Company.

    

    ARTICLE
      9

    Automatic
      Awards to Non-Employee Directors

    

    9.1.           Automatic
      Options.  On each Automatic Grant Date, each Non-Employee Director
      will automatically receive a Non-Qualified Stock Option (“Automatic Option”)
      covering 3,500 Shares for Non-Employee Directors of the Company and 3,000 Shares
      for Non-Employee Directors of any Subsidiary, or such lesser number as the
      Committee may determine from time to time for Non-Employee Directors as a whole
      or for any class of Non-Employees Directors, on each Automatic Grant Date after
      the Effective Date to be evidenced by an Agreement.  Notwithstanding
      the foregoing, a person serving as a Non-Employee Director on more than one
      Board shall only receive one Automatic Option Award per year.

    

    The
      Option Price of Automatic Options
      shall be 100% of the Fair Market Value on the Automatic Grant Date.

    

    Unless
      otherwise provided in the
      Agreement pursuant to which they are received, one-quarter of each Automatic
      Option Award shall become exercise on the first, second, third, and fourth
      anniversary of its Automatic Grant Date; provided, however, that an Automatic
      Option Award shall be immediately exercisable if the Non-Employee Director’s
      membership on the Board terminates as a result of the Non-Employee Director’s
      retirement from Board service in accordance with the Company’s policy, death, or
      permanent and total disability (as such term is defined in Section 22(e)(3)
      of
      the Code) or if a Change of Control occurs.

    

    An
      Automatic Option shall be forfeited
      if, as of the termination of the Non-Employee Director’s membership on the
      Board, the Automatic Option is not then exercisable and such termination occurs
      for any reason other than as a result of the Non-Employee Director’s retirement
      from Board service in accordance with the Company’s policy, death or permanent
      and total disability (as such term is defined in Section 22(e)(3) of the
      Code).

    

    Unless
      otherwise provided in the
      Agreement pursuant to which they are received, Automatic Options that are
      exercisable or that become exercisable upon the Non-Employee Director’s
      termination of membership on the Board will remain exercisable until the tenth
      anniversary of the Automatic Option’s Automatic Grant Date.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
 

    An
      Automatic Option may be exercised
      with respect to any number of whole shares less than the full number for which
      the Option could be exercised.  A partial exercise of an Automatic
      Option shall not affect the right to exercise the Automatic Option from time
      to
      time in accordance with this Plan and the applicable Agreement with respect
      to
      the shares remaining subject to the Automatic Option.

    

    The
      provisions of Sections 6.6, 6.7,
      and 6.8 herein shall be applicable to Automatic Options.

    

    9.2           Automatic
      Stock Awards.  On each Automatic Grant Date, each Non-Employee
      Director shall automatically receive a Stock Award (“Automatic Stock Award”) for
      300 Shares, or such lesser number as the Committee may determine from time
      to
      time for Non-Employee Directors as a whole or for any class of Non-Employees
      Directors, to be evidenced by an Agreement.  Notwithstanding the
      foregoing, a person serving as a Non-Employee Director on more than one Board
      shall only receive one Automatic Stock Award per year.

    

    9.3           Stock
      Payment Awards.  Non-Employee Directors may elect to receive
      payment of their retainer and meeting attendance fees (“Fees”) in the form of
      Stock Payment Awards in accordance with the provisions of this
      Section.  An election to receive Stock Payment Awards must be made on
      an annual basis by delivering written notice to the Secretary of the Company
      on
      the election form provided by the Company for that purpose (“Election
      Form”).

    

    With
      respect to elections for the
      balance of the calendar year containing the Effective Date, the election form
      must be delivered on or before May 31, 2000, and is effective only with
      respect to fees earned after the effective date of the election, and, with
      respect to elections for subsequent calendar years, on or before the date of
      the
      last Board meeting in the calendar year preceding the year to which the election
      relates.  In the event an individual becomes a Non-Employee Director
      after the deadline for delivery of the election notice for a particular calendar
      year, the Company may, but shall not be required to, permit such Non-Employee
      Director to make an election to receive Stock Payment Awards for such calendar
      year.  Once made, an election for a particular calendar year may not
      be revoked and will be effective for all Fees owing to an electing Non-Employee
      Director for services to be rendered as a director during that calendar
      year.

    

    Stock
      Payment Awards shall be made on a
      quarterly basis, beginning with the second quarter of the calendar year
      2000.  Stock Payment Awards shall be made as soon as possible but in
      no event later than 30 days after the last day of the quarter for which the
      Non-Employee Director’s Fees are earned.

    

    The
      number of Shares constituting a
      quarterly Stock Payment Award for each electing Non-Employee Director shall
      be
      that number of Shares, rounded to the nearest whole number, which results from
      dividing the respective Non-Employee Director’s Fees earned during that quarter
      by the Fair Market Value of the Shares as of the Determination Date (as
      hereinafter defined).  The Company shall send each electing
      Non-Employee Director a letter agreement setting forth the number of Shares
      constituting each Stock Payment Award and such other terms and conditions of
      the
      Award as are consistent with this Section 9.3.  The “Determination
      Date” shall mean the earlier of (i) the last day of the quarter for which
      the Non-Employee Director’s Fees are earned (March 31, June 30, September 30 and
      December 31, respectively) or (ii) the effective date of an electing
      Non-Employee Director’s termination as a member of the Board prior to the end of
      a calendar quarter.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
 

    A
      Non-Employee Director shall have no
      voting or dividend rights with respect to, and no right to transfer any interest
      in, any Stock Payment Awards prior to the Determination Date for such
      Award.  Following a Determination Date, a Non-Employee Director shall
      be entitled to vote Stock Payment Award Shares and to receive dividends
      thereafter declared and payable on such Shares.  Following a
      Determination Date, the Stock Payment Award Shares shall not be subject to
      any
      restrictions on transfer and the Company shall, in accordance with each
      Non-Employee Director’s written request made on an Election Form, either cause a
      stock certificate to be issued evidencing the Stock Payment Award Shares or
      maintain a book-entry record evidencing such Shares.  Stock Payment
      Award Shares for which no such written request is made shall be evidenced by
      a
      book-entry record.  Dividends on Stock Payment Award Shares evidenced
      by a stock certificate shall be paid in cash, and dividends on Stock Payment
      Award Shares evidenced by a book entry record shall be reinvested in Shares,
      in
      each case only as and when dividends are declared and paid to shareholders
      of
      record of Shares.

    

    Notwithstanding
      the foregoing, at any
      time and from time to time, the Committee may suspend the option for
      Non-Employee Directors as a whole or for any class of Non-Employees Directors
      to
      elect to receive Stock Payment Awards in lieu of Fees.

    

    ARTICLE
      10

    Change
      in Control

    

    The
      Committee, as constituted before a
      Change in Control, in its sole discretion may, as to any outstanding Award,
      either at the time the Award is made or any time thereafter, take any one or
      more of the following actions with respect to a Change in
      Control:  (i) provide for the acceleration of any time periods
      relating to the exercise or realization of any such Award so that such Award
      may
      be exercised or realized in full on or before a date initially fixed by the
      Committee; (ii) provide for the purchase or settlement of any such Award by
      the Company, upon a Participant’s request, for an amount of cash equal to the
      amount which could have been obtained upon the exercise of such Award or
      realization of such Participant’s rights had such Award been currently
      exercisable or payable; (iii) make such adjustment to any such Award then
      outstanding as the Committee deems appropriate to reflect such Change in
      Control; or (iv) cause any such Award then outstanding to be assumed, or
      new rights substituted therefor, by the acquiring or surviving corporation
      in
      such Change in Control.

    

    ARTICLE
      11

    Modification,
      Extension, and Renewals of Awards

    

    Subject
      to the terms and conditions and
      within the limitations of the Plan, the Committee may modify, extend or renew
      outstanding Awards, or, if authorized by the Board, accept the surrender of
      outstanding Awards (to the extent not yet exercised) granted under the Plan
      and
      authorize the granting of new Awards pursuant to the Plan in substitution
      therefor, and the substituted Awards may specify a longer term than the
      surrendered Awards or may contain any other provisions that are authorized
      by
      the Plan. Notwithstanding the foregoing, no modification, extension, renewal,
      or
      surrender and substitution may provide for a lower exercise price than that
      provided for prior to the modification, extension, renewal, or surrender and
      substitution.  Subject to the foregoing limitation, the Committee may
      also modify the terms of any outstanding Agreement.  Notwithstanding
      the foregoing, however, no modification of an Award, shall, without the consent
      of the Participant, adversely affect the rights or obligations of the
      Participant.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
 

    ARTICLE
      12

    Amendment,
      Modification, and Termination of the Plan

    

    12.1           Amendment,
      Modification, and Termination.  At any time and from time to time,
      the Board may terminate, amend, or modify the Plan.  Such amendment or
      modification may be without shareholder approval except to the extent that
      such
      approval is required by the Code, pursuant to the rules under Section 16 of
      the Exchange Act, by any national securities exchange or system on which the
      Stock is then listed or reported, by any regulatory body having jurisdiction
      with respect thereto, or under any other applicable laws, rules, or
      regulations.

    

    12.2           Awards
      Previously Granted.  No termination, amendment, or modification of
      the Plan other than pursuant to Section 4.3 herein shall in any manner
      adversely affect any Award theretofore granted under the Plan, without the
      written consent of the Participant.

    

    ARTICLE
      13

    Withholding

    

    13.1           Tax
      Withholding.  The Company shall have the power and the right to
      deduct or withhold, or require a Participant to remit to the Company, an amount
      sufficient to satisfy Federal, State, and local taxes (including a Participant’s
      FICA obligation, if any) required by law to be withheld with respect to any
      grant, exercise, or payment made under or as a result of this Plan.

    

    13.2           Stock
      Withholding.  With respect to withholding required upon the
      exercise of Nonqualified Stock Options, or upon the lapse of restrictions on
      Restricted Stock, or upon the occurrence of any other similar taxable event,
      Participants may elect, subject to the approval of the Committee, to satisfy
      the
      withholding requirement, in whole or in part, by having the Company withhold
      Shares of Stock having a Fair Market Value equal to the amount required to
      be
      withheld.  The value of the Shares to be withheld shall be based on
      Fair Market Value of the Shares on the date that the amount of tax to be
      withheld is to be determined.  All elections shall be irrevocable and
      be made in writing, signed by the Participant on forms approved by the Committee
      in advance of the day that the transaction becomes taxable.

    

    ARTICLE
      14

    Successors

    

    All
      obligations of the Company under
      the Plan, with respect to Awards granted hereunder, shall be binding on any
      successor to the Company, whether the existence of such successor is the result
      of a direct or indirect purchase, merger, consolidation or otherwise, of all
      or
      substantially all of the business and/or assets of the Company.

    

    ARTICLE
      15

    General

    

    15.1           Requirements
      of Law.  The granting of Awards and the issuance of Shares of
      Stock under this Plan shall be subject to all applicable laws, rules, and
      regulations, and to such approvals by any governmental agencies as may be
      required.

    

    15.2           Effect
      of Plan.  The establishment of the Plan shall not confer upon any
      Key Employee or any Non-Employee Director any legal or equitable right against
      the Company, a Subsidiary, the Board, or the Committee, except as expressly
      provided in the Plan.  The Plan does not constitute an inducement or
      consideration for the employment of any Key Employee, nor is it a contract
      between the Company or any of its Subsidiaries and any Key Employee or any
      Non-Employee Director.  Participation in the Plan shall not give any
      Key Employee any right to be retained in the service of the Company or any
      of
      its Subsidiaries.  Participation in the Plan shall not give any
      Non-Employee Director any right to be retained as a member of the Board of
      the
      Company or any of its Subsidiaries.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
 

    15.3           Creditors.  The
      interests of any Participant under the Plan or any Agreement are not subject
      to
      the claims of creditors and may not, in any way, be assigned, alienated, or
      encumbered.

    

    15.4           Governing
      Law.  The Plan, and all Agreements hereunder, shall be governed,
      construed ,and administered in accordance with the laws of the Commonwealth
      of
      Virginia and the intention of the Company is that ISOs granted under the Plan
      qualify as such under Section 422 of the Code.

    

    15.5           Severability.  In
      the event any provision of the Plan shall be held illegal or invalid for any
      reason, the illegality or invalidity shall not affect the remaining parts of
      the
      Plan, and the Plan shall be construed and enforced as if the illegal or invalid
      provision had not been included.

    

    

    Approved
      by the Board of Directors

    on
      February 15, 2000

    Amended
      by the Board of Directors

    on
      December 21, 2006

    
15

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