Document:

form6k041808ex10-1.htm

    The
securities to which this agreement relate have not been registered under the
United States Securities Act of 1933, as amended, any U.S. state securities
laws, any applicable Canadian securities laws, or any securities laws of any
other jurisdiction and may not be offered or resold in the United States or in
Canada without registration under such applicable U.S. or Canadian securities
laws, unless an exemption from registration is available and only upon the
holder thereof first having obtained the written opinion of counsel to the
Company, or other counsel acceptable to the Company, that the proposed
disposition is consistent with all applicable provisions of such Act as well as
any other applicable securities law.

     

    PRIVATE
PLACEMENT SUBSCRIPTION AGREEMENT

     

    TO:           GIANT
OIL & GAS INC. (the “Company”)

     

    Re:           Purchase
of securities of the Company

    

    Details of
Subscription:                                                      The undersigned (the “Subscriber”)
hereby irrevocably subscribes for and agrees to purchase from the Company, on
the terms and conditions set forth herein and in the attached schedules, that
number of shares of the Company set out below at a price of USD$0.89 per
share.

     

    
      	
              Number
      of Shares to be purchased:

            	 
      	 
      	
              Shares

            
	
              Total
      Subscription Price:

                      (USD$0.89
      per Share)

            	
              USD$

            	 
      	 
      

    

    

    
      	
              Name
      of Subscriber:

            	 
      	 
      
	
              Address:

            	 
      	 
      
	 
      	 
      	
              (Street
      Address)

               

            
	 
      	 
      	
              (City
      and Province)

               

            
	 
      	 
      	
              (Country
      and Postal or Zip Code)

               

            
	 
      	 
      	
              (Contact
      Name)

               

            
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF the Subscriber has executed, or caused its duly authorized
representative to execute, this agreement as of the 18th day of April,
2008.

     

    
      	 
      	 
      	 
      
	
              Signature
      of Subscriber (if an individual)

               

               

               

               

            	
              Per:

            	
              Name
      of Subscriber (if not an individual)

            
	
              Name
      of Subscriber (if an individual)

            	 
      	
              (signature
      of authorized representative)

            
	 
      	 
      	
              Name
      and Title of Authorized
Representative

            

    

     

    ACCEPTANCE

     

    The
foregoing is accepted and agreed to as of the 18th day of April,
2008.

     

    GIANT
OIL & GAS INC.

     

    By:   ________________________

    Name: Rob
Sandhu

    Title:  President

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Subscribers
must complete and attach:

     

    Schedule I  if the
Subscriber is a director, senior officer or control person of the Company or a
close personal friend, close business associate, spouse, parent, grandparent,
sibling or child of a director, senior officer of control person of the
Company.

     

    Schedule
II                                if
the Subscriber is not a US Person or if a US Person, of their status as an
accredited investor

     

    All Subscribers must
sign:

    

    Schedule
III                                 (Details and Conditions
of the Agreement)

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    SCHEDULE
I

     

    CONFIRMATION
OF RELATIONSHIP

    (For
Directors, Senior Officers and Control Persons and

    Their
Close Personal Friends, Close Business Associates and Relatives)

     

    The
Subscriber represents and warrants to the Company that the Subscriber has read
the following definitions from Multilateral Instrument 45-103 Capital Raising Exemptions
and certifies that the Subscriber has the relationship(s) to the Company or its
directors, senior officers or control persons by virtue of the Subscriber
being:

     

    (initial one or more as
appropriate)

     

    
      	
              _____

            	
              (a)

            	
              a
      director, senior officer or control person of the Company, or of an
      affiliate of the Company;

            

    

     

    
      	
              _____

            	
              (b)

            	
              a
      spouse, parent, grandparent, brother, sister or child of a director,
      senior officer or control person of the Company, or of an affiliate of the
      company;

            

    

     

    
      	
              _____

            	
              (c)

            	
              a
      close personal friend of a director, senior officer or control person of
      the Company, or of an affiliate of the
Company;

            

    

     

    
      	
              _____

            	
              (d)

            	
              a
      close business associate of a director, senior officer or control person
      of the Company, or of an affiliate of the
  Company;

            

    

     

    
      	
              _____

            	
              (e)

            	
              a
      person or company that is wholly-owned by any combination of persons or
      companies described in paragraphs (a) to
(d),

            

    

     

    
      	
               
      

            	
              and
      if (b), (c), (d) or (e) is initialed the director, senior officer or
      control person is:

            

    

     

    
      	
               
      

            	
              ________________________________________

            

    

    
      	
               
      

            	
              (Print name of director, senior
      officer or control person)

            

    

     

    The
foregoing representations and warranties are true and accurate as of the date of
this certificate and will be true and accurate as of Closing.  If any
such representations and warranties shall not be true and accurate prior to
Closing, the Subscriber shall give immediate written notice of such fact to the
Company.

     

    For the
purposes hereof, the following definitions are included for
convenience:

     

    
      	
               
      

            	
              a.

            	
              “close
      business associate” means an individual who has had sufficient prior
      business dealings with the director, senior officer or control person to
      be in a position to assess the capabilities and trustworthiness of the
      director, senior officer or control
person.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    A casual
business associate or a person introduced or solicited for the purpose of
purchasing securities is not a close business associate.  An
individual is not a close business associate solely because the individual is a
client or former client.  For example, an individual is not a close
business associate of a registrant or former registrant solely because the
individual is a client or former client of that registrant or former
registrant.

     

    The
relationship between the purchaser and the director, senior officer or control
person must be direct.  For example, the exemption is not available
for a close business associate of a close business associate or a director,
senior officer or control person.

     

    
      	
               
      

            	
              b.

            	
              “close
      personal friend” means an individual who has known the director, senior
      officer or control person for a sufficient period of time to be in a
      position to assess the capabilities and trustworthiness of the director,
      senior officer or control person.

            

    

     

    An
individual is not a close personal friend solely because

     

    
      	
               
      

            	
              ·

            	
              the
      individual is a member of the same organization, association or religious
      group, or

            

    

     

    
      	
               
      

            	
              ·

            	
              the
      individual is a client or former
client.

            

    

     

    The
relationship between the purchaser and the director, senior officer or control
person must be direct.  For example, the exemption is not available
for a close personal friend or a close personal friend of the director, senior
officer or control person.

     

    
      	
               
      

            	
              c.

            	
              “company”
      means any corporation, incorporated association, incorporated syndicate or
      other incorporated organization.

            

    

     

    
      	
               
      

            	
              d.

            	
              “person”
      means and individual, partnership, unincorporated association,
      unincorporated syndicate, unincorporated organization, trust, trustee,
      executor, administrator or other legal
  representative.

            

    

     

    
      	
               
      

            	
              e.

            	
              “spouse” means, in relation to an
      individual, another individual to whom that individual is married, or
      another individual of the opposite sex or the same sex with whom that
      individual is living in a conjugal relationship outside
      marriage.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     SCHEDULE
II

     

    CONFIRMATION
BY NON-U.S. PERSONS or U.S. ACCREDITED INVESTORS

     

    The
Subscriber hereby represents and warrants to the Company that the
Subscriber:

     

    (initial as
appropriate)

     

    _____                 is
not a U.S. Person (as defined below) and is not an affiliate (as defined in Rule
501(b) under the Securities Act) of the Company; was not offered the
Shares in the United States and did not execute this Agreement in the United
States (a “Reg S Subscriber”) and the Subscriber is not acquiring the
Shares for the account of or benefit of any U.S. Person.  A U.S.
Person means any one of the following:

     

     

    any
natural person resident in the United States of America;

     

    any
partnership or corporation organized or incorporated under the laws of the
United States of America;

     

    any
estate of which any executor or administrator is a U.S. person;

     

    any trust
of which any trustee is a U.S. person;

     

    any
agency or branch of a foreign entity located in the United States of
America;

     

    any
non-discretionary account or similar account (other than an estate or trust)
held by a dealer or other fiduciary for the benefit or account of a U.S.
person;

     

    any
discretionary account or similar account (other than an estate or trust) held by
a dealer or other fiduciary organized, incorporated or (if an individual)
resident in the United States of America; and

     

    any
partnership or corporation if:

     

    organized
or incorporated under the laws of any foreign jurisdiction; and

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    

     

    formed by
a U.S. person principally for the purpose of investing in securities not
registered under the Securities Act, unless it is organized or incorporated, and
owned, by accredited investors (as defined in Rule
501(a) under the Securities Act) who are not natural persons, estates or
trusts.

     

    The Subscriber will not, during the
period commencing on the date of issuance of the Shares and ending on the first
anniversary of such date, or such shorter period as may be permitted by
Regulation S or other applicable securities law (the “Restricted Period”),
offer, sell, pledge or otherwise transfer the Shares in the United States, or to
a U.S. Person for the account or for the benefit of a U.S. Person, or otherwise
in a manner that is not in compliance with Regulation S.

     

     

    The Subscriber will, after expiration
of the Restricted Period, offer, sell, pledge or otherwise transfer the Shares
only pursuant to registration under the Securities Act or an available exemption
therefrom, and in accordance with all applicable state and foreign securities
laws.

     

     

    The Subscriber has not in the United
States engaged in, and prior to the expiration of the Restricted Period will not
engage in, any short selling of or any hedging transaction with respect to the
Shares including without limitation, any put, call or other option transaction,
option writing, equity swap or other derivative transaction.

     

     

    Neither the Subscriber nor any person
acting on its behalf has engaged, nor will engage, in any directed selling
efforts to a U.S. Person with respect to the Shares and the Subscriber and any
person acting on its behalf have complied and will comply with the “offering
restrictions” requirements of Regulation S under the Securities
Act.

     

     

    The transactions contemplated by this
Agreement have not been pre-arranged with a buyer located in the United States
or with a U.S. Person, and are not part of a plan or scheme to evade the
registration requirements of the Securities Act.

     

     

    Neither the Subscriber nor any person
acting on its behalf has undertaken or carried out any activity for the purpose
of, or that could reasonably be expected to have the effect of, conditioning the
market in the United States, its territories or possessions, for any of the
Shares.  The Subscriber agrees not to cause any advertisement of the
Shares or the securities comprising the Shares to be published in any newspaper
or periodical or posted in any public place and not to issue any circular
relating to the Shares, except such advertisements that include the statements
required by Regulation S under the Securities Act, and only offshore and not in
the U.S. or its territories, and only in compliance with any local applicable
securities laws.

     

     

    Each certificate representing the
Shares shall be endorsed with the following legends, or substantially similar
legends, in addition to any other legend required to be placed thereon by
applicable federal or state corporate or securities laws:

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    

     

     

    “THE
SHARES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES
ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED
UNDER THE SECURITIES ACT.”

     

    “TRANSFER
OF THESE SHARES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
REGULATION S, PURSUANT TO REGISTRATION UNDER THE SUCURITIES ACT, OR PURSUANT TO
AVAILABLE EXEMPTION FROM REGISTRATION.  HEDGING TRANSACTIONS MAY NOT
BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

     

    The Subscriber consents to the Company
making a notation on its records or giving instructions to any transfer agent of
the Company in order to implement the restrictions on transfer of the Shares set
forth in this Agreement.

     

     

    All purchases, sales and resales of the
Shares and the transfer of funds in payment therefore shall at all times be in
compliance with Title III of the USA Patriot Act (Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism) of 2001.

     

     

    - or -

     

    
      	
              _____

            	
              is
      an Accredited Investor, as defined in Rule 501 (a) of Regulation D of the
      Securities Act of
      1933 (United States), (a “Rule 506 Subscriber”) by virtue of
      satisfying one or more of the categories indicated
  below:

            

    

     

    
      	
               
      

            	
              (initial as
      appropriate)

            

    

     

    
      	
               
      

            	
              _____

            	
              (a)

            	
              An
      organization described in section 501(c)(3) of the United States Internal
      Revenue Code, a corporation, a Massachusetts or similar business trust or
      partnership, not formed for the specific purpose of acquiring the Shares,
      with total assets in excess of
US$5,000,000

            

    

     

    
      	
               
      

            	
              _____

            	
              (b)

            	
              a
      natural person whose individual net worth, or joint net worth with that
      person’s spouse, at the date hereof exceeds
  US$1,000,000

            

    

     

    
      	
               
      

            	
              _____

            	
              (c)

            	
              A
      natural person who had an individual income in excess of US$200,000 in
      each of the two most recent years or joint income with that person’s
      spouse in excess of US$300,000 in each of those years and has a reasonable
      expectation of reaching the same income level in the current
      year

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              _____

            	
              (d)

            	
              A
      trust that (a) has total assets in excess of US$ 5,000,000, (b) was not
      formed for the specific purpose of acquiring the Offered Securities, and
      (c) is directed in its purchase of securities by a person who has such
      knowledge and experience in financial and business matters that they are
      capable of evaluating the merits and risks of an investment in the
      Shares

            

    

     

    
      	
               
      

            	
              _____

            	
              (e)

            	
              An
      investment company registered under the Investment Corporation Act of
      1940 (United States) or a business development company as defined
      in section 2(a)(48) of that Act

            

    

     

    
      	
               
      

            	
              _____

            	
              (f)

            	
              Small
      Business Investment Corporation licensed by the U.S. Small Business
      Administration under section 301(c) or (d) of the Small Business Investment Act
      of 1958 (United States)

            

    

     

    
      	
               
      

            	
              _____

            	
              (g)

            	
              A
      private business development company as defined in section 202(a)(22) of
      the Investment Advisors
      Acts of 1940 (United States)

            

    

     

    
      	
               
      

            	
              _____

            	
              (h)

            	
              An
      entity in which all of the equity owners satisfy the requirements of one
      or more of the foregoing
categories

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    SCHEDULE
III

     

    DETAILS
AND CONDITIONS OF THE SUBSCRIPTION

     

    1.           Description of
Securities

     

    The
securities subscribed for hereunder shall be Common Shares (the
“Shares”).

     

    The
Shares will be subject to statutory hold periods during which they may not be
transferred or resold.  Subscribers are advised to consult their own
legal advisers in connection with any applicable resale
restrictions.

     

    2.           Payment of Subscription
Price

     

    The total
Subscription Price set out on the first page of this Agreement must be paid by
money order, certified cheque or bank draft payable to the Company prior to the
Closing Date.

     

    3.           Documents
Required

     

    The
Subscriber must complete, sign and deliver to the company and executed copy of
this Agreement together with the following Schedules to the
Agreement:

     

    

     

    
      	
               
      

            	
              a.

            	
              Schedule
      I, a Confirmation of Relationship, if the Subscriber is a director, senior
      officers or control person of the Company or a close personal friend,
      close business associate, spouse, parent, grandparent, sibling or child of
      a director, senior officer or control person of the
    Company.

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              b.

            	
              Schedule
      II, a Confirmation by US Subscribers of their status as accredited
      investors or confirmation by non-US persons that this offering was made
      pursuant to Regulation S.

            

    

     

    The
Subscriber shall complete, sign and deliver to the Company as soon as possible
such further documents, questionnaires, notices and undertakings as may be
required by regulatory authorities, stock exchanges and applicable
law.

     

    4.           Closing

     

    Delivery
and payment for the Shares (the “Closing) will be completed at the offices
of:

     

    Giant Oil
& Gas Inc.

    Suite #
4010 – 246 Stewart Green S.W.

    Calgary,
Alberta, T3H 3C8

     

    upon
receipt by the Company of executed Agreements and payment for the subscribed-for
shares (the “Closing Date”).

     

    5.           Acknowledgements by All
Subscribers

     

    The
Subscriber, irrespective of their jurisdiction of residency, acknowledges
that:

     

    
      	
               
      

            	
              a.

            	
              The
      Shares have not been registered under the United States Securities Act of
      1933, as amended (the “1933 Act”) or under any state securities or “blue
      sky” laws, and the Company has no obligation or present intention of
      filing a registration statement under the 1933 Act or any state securities
      laws in respect of the Shares and therefore the Shares cannot be offered
      or sold in the United States of America without registration under the
      1933 Act and the securities laws of all applicable states of the United
      States of America, unless an exemption from registration is
      available;

            

    

     

    
      	
               
      

            	
              b.

            	
              The
      Subscriber’s decision to execute this Agreement and acquire the Shares has
      not been based upon any oral or written representation made by or on
      behalf of the Company or any affiliate or agent thereof but is based
      entirely upon the Subscriber’s discussion with the officers and directors
      of the Company. The Company has not provided any offering memorandum,
      prospectus, business plan, disclosure statement or registration statement
      to the Subscriber or made any representations, warranties, covenants,
      promises or agreements to the Subscriber other than as expressly contained
      in this Agreement;

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              c.

            	
              The
      Company is entitled to rely on the statements and answers of the
      Subscriber contained in the Agreement and in the Schedules to this
      Agreement and the Subscriber will indemnify and hold harmless the Company,
      its officers, directors, employees, agents and representatives and its
      affiliates and their respective successors and assigns and each other
      person, if any, who controls any thereof, against any loss, liability,
      claim, damage and expense whatsoever (including, but not limited to, any
      and all expenses whatsoever reasonably incurred in investigating,
      preparing or defending against any litigation commenced or threatened or
      any claim whatsoever) arising out of or based upon any false
      representation or warranty or breach or failure by the Subscriber to
      comply with any covenant or agreement made by the Subscriber herein or in
      any other document furnished by the Subscriber to any of the foregoing in
      connection with this transaction;

            

    

     

    
      	
               
      

            	
              d.

            	
              The
      Subscriber has (or others for whom it is contracting hereunder have)
      consulted with its own counsel with respect to applicable resale
      restrictions and it is (or others for whom it is contracting hereunder
      are) solely responsible (and the Company is not in any way responsible)
      for compliance with applicable resale
  restrictions;

            

    

     

    
      	
               
      

            	
              e.

            	
              This
      Agreement is not enforceable by the Subscriber unless it has been accepted
      by the Company, it has been entered into by the Subscriber for valuable
      consideration and may not be revoked or withdrawn by the Subscriber and it
      is not assignable by the Subscriber without the written consent of the
      Company;

            

    

     

    
      	
               
      

            	
              f.

            	
              No
      securities commission or similar regulatory authority has reviewed or
      passed on the merits of the securities or this
  Agreement;

            

    

     

    
      	
               
      

            	
              g.

            	
              There
      is no government or other insurance covering the securities being offered
      hereby;

            

    

     

    
      	
               
      

            	
              h.

            	
              There
      are substantial risks associated with the purchase of the Shares and the
      securities comprising the Shares;

            

    

     

    
      	
               
      

            	
              i.

            	
              There
      are restrictions on the Subscriber’s ability to transfer the Shares and it
      is the responsibility of the Subscriber to find out what those
      restrictions are and to comply with them before transferring any of said
      securities;

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              j.

            	
              The
      Company has advised the Subscriber that the Company is relying on
      exemptions from the requirements to provide the Subscriber with a
      prospectus and to sell securities through a person registered to sell
      securities under the Securities Act (British
      Columbia) (together with the rules, policies, instruments and orders
      thereunder, the “BC Act”), and regulations of the 1933 Act (together with
      the rules, policies, instruments and orders thereunder, the “US Securities
      Act”), as the case may be, and, as a consequence of acquiring securities
      pursuant to these exemptions, certain protections, rights and remedies
      provided by the BC Act and US Securities Act, including statutory rights
      of rescission or damages, will not be available to the
      Subscriber;

            

    

     

    
      	
               
      

            	
              k.

            	
              The
      Shares will be non-transferable and are subject to notice and other
      requirements under applicable securities laws and
    regulations;

            

    

     

    
      	
               
      

            	
              l.

            	
              The
      Subscriber has the legal capacity and competence to enter into and execute
      this Agreement and to take all actions required pursuant hereto and, if
      the Subscriber is a corporation, it is duly incorporated and validly
      subsisting under the laws of its jurisdiction of incorporation and all
      necessary approvals by its directors, shareholders and others have been
      obtained to authorize execution of this Agreement on behalf of the
      Subscriber;

            

    

     

    
      	
              m.

            	
              The
      Subscriber has duly executed and delivered this Agreement and it
      constitutes a valid and binding agreement of the Subscriber enforceable
      against the Subscriber.

            

    

     

    6.           Representations, Warranties
and Covenants by All Subscribers

     

    The
Subscriber hereby represents, warrants and covenants to the Company (which
representations, warranties and covenants shall survive Closing)
that:

     

    
      	
               
      

            	
              a.

            	
              If
      the Subscriber is purchasing the Shares as principal for its own account,
      the subscriber is resident in the jurisdiction indicated on the first page
      hereof and if a resident of British Columbia,
  is:

            

    

     

    
      	
               
      

            	
              i.

            	
              Purchasing
      a sufficient number of Shares, not for the benefit of any other person or
      company and not with a view to the resale or
  distribution;

            

    

     

    
      	
               
      

            	
              ii.

            	
              A
      senior officer, director or employee of the Company or an affiliate of the
      Company, and has not been induced to purchase the Shares by expectation of
      employment or continued employment, or an issuer, all of the voting
      securities of which are owned by one or more of such
    persons;

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              iii.

            	
              A
      director, senior officer or control person of the Company, or of an
      affiliate of the Company;

            

    

     

    
      	
               
      

            	
              iv.

            	
              A
      spouse, parent, grandparent, brother, sister or child of a director,
      senior officer or control person of the Company, or of an affiliate of the
      Company;

            

    

     

    
      	
               
      

            	
              v.

            	
              A
      close personal friend of a director, senior officer or control person of
      the Company, or of an affiliate of the
Company;

            

    

     

    
      	
               
      

            	
              vi.

            	
              A
      close business associate of a director, senior officer or control person
      of the Company, or of an affiliate of the
  Company;

            

    

     

    
      	
               
      

            	
              vii.

            	
              A
      person or corporation that is wholly-owned by any combination of persons
      or corporations described in paragraphs (iii) to (vi);
  or

            

    

     

    
      	
               
      

            	
              viii.

            	
              An
      accredited investor under the BC
Act.

            

    

     

    b.           Each
Subscriber understands the Shares have not and may not be registered under the
1933 Act or the securities laws of any state of the United States of America and
the sale contemplated hereby is being made in reliance on exemptions from the
registration requirements thereof;

     

    c.           Each
Subscriber is an investor in securities of corporations in the development stage
and acknowledges that it is able to fend for itself, can bear the economic risk
of its investment and it has such knowledge and experience in financial or
business matters such that it is capable of evaluating the merits and risks of
the investment in the Shares;

     

    d.           Each
Subscriber has had access to such information, if any, concerning the Company as
the Subscriber considered necessary in connection with their investment decision
to invest in the Shares, including receiving satisfactory answers to any
questions the Subscriber has asked any of the officers or agents of the
Company;

     

    e.           Has
no contract, undertaking, agreement or arrangement with any person to sell,
transfer or pledge to such person, or anyone else, the Shares, or any part
thereof, or any interest therein and the Subscriber has no present plans to
enter into any such contract, undertaking, agreement or
arrangement;

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    

     

    f.           If
the Subscriber decides to offer, sell or otherwise transfer any of the Shares it
will not offer, sell or otherwise transfer any of the Shares, directly or
indirectly, unless the sale is:

     

    
      	
               
      

            	
              -

            	
              To
      the Company;

            

    

     

    
      	
               
      

            	
              -

            	
              Made
      outside the United States in a transaction meeting the requirements of
      Rule 904 of Regulation S under the 1933 Act (or such rule or regulation
      promulgated by the Securities and Exchange Commission of the United States
      of America as is then in effect) and in compliance with applicable local
      laws and regulations; or

            

    

     

    
      	
               
      

            	
              -

            	
              Made
      in a transaction that does not require registration under the 1933 Act or
      any applicable United States state securities laws and regulations
      governing the offer and sale of securities and the Subscriber has
      furnished to the Company, prior to such sale, an opinion of counsel of
      recognized standing reasonably satisfactory to the Company confirming the
      compliance of such sale with the 1933 Act and applicable United States
      state securities laws;

            

    

     

    g.           Acknowledges
and agrees the Shares will be “restricted securities” under the 1933
Act;

     

    h.               Understands
and acknowledges that, unless the Subscriber is a Reg S Subscriber, upon the
issuance thereof, and unless and until such time as the same is no longer
required under the applicable requirements of the 1933 Act or applicable United
States state securities laws and regulations, the certificates representing any
of the Shares (and all certificates issued in exchange therefore or in
substitution thereof) shall bear, on the face of such certificates, the
following legend:

     

    “THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED, (THE “1933 ACT”) AND ANY APPLICABLE STATE SECURITIES
LAW.  NO INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED OFFERED,
PLEDGED OR OTHERWISE TRANSFERRED OR DISPOSED OF WITHOUT (A) AND EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE UNITED STATES STATE
SECURITIES LAW COVERING ANY SUCH TRANSACTION, OR (B) AN AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.”

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              i.

            	
              Consents
      to the Company making a notation on its records or giving instructions to
      any transfer agent of the Company in order to implement the restrictions
      on transfer set forth herein;

            

    

     

    
      	
               
      

            	
              j.

            	
              Acknowledges
      the Company has no obligation or present intention to file a registration
      statement under the 1933 Act in respect of the Shares and accordingly
      there are substantial restrictions on transferability of the securities
      and it will not be possible to liquidate the Subscriber’s investment
      readily and the Subscriber has not been supplied with any of the
      information that would be found in the applicable registration statement
      if any of said securities were registered under the 1933
    Act;

            

    

     

    
      	
               
      

            	
              k.

            	
              The
      Subscriber is acquiring the Shares as an investment for its own account as
      to which the Subscriber exercises sole investment discretion and not with
      a view to any resale, distribution or other disposition of the Shares in
      violation of the United States securities
laws;

            

    

     

    
      	
               
      

            	
              l.

            	
              If
      the Subscriber is a Reg S Subscriber, the Subscriber will not engage in
      any ‘direct selling efforts’ (as defined in Regulation S of the 1933 Act)
      in the United States of America in respect of the Shares, which includes
      any activities undertaken for the purpose of or that could reasonably be
      expected to have the effect of, conditioning the market in the United
      States for the resale of the Shares, but the Subscriber may sell or
      otherwise dispose of any of the Shares only pursuant to registration of
      the applicable Securities pursuant to the 1933 Act and any applicable
      United States state securities laws or under any exemption from such
      registration requirements and as otherwise provided
  herein;

            

    

     

    
      	
               
      

            	
              m.

            	
              The
      Subscriber is not subscribing for the Shares as a result of or subsequent
      to any advertisement, article, notice or other communication published in
      any newspaper, magazine or similar media or broadcast over television or
      radio, or presented at any seminar or meeting, or any solicitation of a
      subscription by person previously not known to the undersigned in
      connection with investment securities
generally;

            

    

     

    
      	
               
      

            	
              n.

            	
              The
      Subscriber’s overall commitment to investments which are not readily
      marketable is not disproportionate to the undersigned's net worth, and an
      investment in the Shares will not cause such overall commitment to become
      excessive;

            

    

     

    
      	
               
      

            	
              o.

            	
              The
      Subscriber understands that an investment in the Shares is a speculative
      investment which involves a high degree of risk and the potential loss of
      his entire investment;

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              p.

            	
              The
      Subscriber understands that the Shares are being offered and sold to it in
      reliance upon specific exemptions from the registration requirements of
      United States federal and state securities laws and that the Company is
      relying upon the truth and accuracy of, and the Subscriber’s compliance
      with, the representations, warranties, agreements, acknowledgments and
      understandings of the Subscriber set forth herein in order to determine
      the availability of such exemptions and the eligibility of the undersigned
      to acquire the Shares. The Subscriber further acknowledges that each of
      the representations and warranties made by the Subscriber in this
      Agreement shall be true, complete and accurate so long as the Subscriber
      is the legal or beneficial holder of the Shares. If any of the foregoing
      representations and warranties are not true at any time that the
      Subscriber holds any the foregoing securities, the Subscriber agrees to
      immediately notify the Company of the facts rendering the representation
      untrue.

            

    

     

    

     

    
      	
               
      

            	
              q.

            	
              If
      the Subscriber is not purchasing the Shares for its own
      account:

            

    

     

    
      	
               
      

            	
              a.

            	
              The
      Subscriber is:

            

    

     

    
      	
               
      

            	
              i.

            	
              A
      trust company or an insurer which has received a business authorization
      under the Financial Institutions Act (British Columbia) or is a trust
      company or an insurer authorized under the laws of another province or
      territory of Canada to carry on such business in such province or
      territory, and the Subscriber is purchasing such securities as an agent of
      trustee for accounts that are fully managed by the Subscriber;
      or

            

    

     

    
      	
               
      

            	
              ii.

            	
              An
      advisor who manages the investment portfolios of clients through
      discretionary authority granted by one or more clients and the Subscriber
      is registered as such an advisor under the BC Act or the laws of another
      province or territory of Canada or the Subscriber is exempt from such
      registration and the Subscriber is purchasing securities as an agent for
      accounts that are fully managed by the Subscriber;
  and

            

    

     

    
      	
               
      

            	
              r.

            	
              Neither
      the Subscriber nor any party on whose behalf it is acting has been
      created, established, formed or incorporated solely, or is used primarily,
      to acquire securities or to permit the purchase of the Shares without a
      prospectus in reliance on an exemption from the prospectus requirements of
      the applicable securities
legislation;

            

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              s.

            	
              The
      Subscriber and any beneficial purchaser for whom it is acting are resident
      in the jurisdiction set out on the first page of this
      Agreement;

            

    

     

    
      	
               
      

            	
              t.

            	
              The
      entering into of this Agreement and the transactions contemplated hereby
      do not result in the violation of any of the terms and provisions of any
      law applicable to, or the incorporation or formation documents of, the
      Subscriber or of any agreement, written or oral, to which the Subscriber
      may be a party or by which the Subscriber is or may be
    bound;

            

    

     

    
      	
               
      

            	
              u.

            	
              The
      Subscriber is aware that the Shares will be offered and sold pursuant to
      certain exemptions under the BC Act, U.S. Securities Act and other
      applicable securities legislation and the Subscriber is not acquiring the
      Shares as a result of any information about the affairs of the Company
      that is not generally known to the public save knowledge of this
      particular transaction;

            

    

     

    
      	
               
      

            	
              v.

            	
              This
      subscription by the Subscriber has not been induced by any representations
      or warranties by any person whatsoever with regard to the future value of
      the Shares.

            

    

     

    The
foregoing representations, warranties and covenants are made by the Subscriber
with the intent that they be relied upon by the Company in determining its
suitability as a purchaser of the Shares and the Subscriber hereby agrees to
indemnify the Company against all losses, claims, costs, expenses and damages or
liabilities which it may suffer or incur as a result of reliance
thereon.  The Subscriber undertakes to notify the Company immediately
of any change in any representation, warranty or other information relating to
the Subscriber set forth herein.

     

    7.           Representations and
Warranties of the Company

     

    The
Company represents and warrants to the Subscriber that, as of the date of this
Agreement and at the Closing:

     

    
      	
               
      

            	
              a.

            	
              The
      Company  is a valid and subsisting corporation duly
      incorporated, continued or amalgamated and in good standing under the laws
      of the jurisdictions in which it is incorporated, continued or amalgamated
      with respect to all acts necessary to maintain its corporate
      existence;

            

    

     

    
      	
               
      

            	
              b.

            	
              The
      Company has complied and will comply with all applicable corporate and
      securities laws and regulations in connection with the offer, sale and
      issuance of the Shares;

            

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    

     

    
      	
               
      

            	
              c.

            	
              The
      Public Record and the representations contained in this Agreement are
      accurate in all material respects and omit no fact, the omission of which
      would make such representations misleading in light of the circumstances
      in which such representation was
made;

            

    

     

    
      	
               
      

            	
              d.

            	
              The
      issuance and sale of the Shares by the Company does not and will not
      conflict with and does not and will not result in a breach of any of the
      terms, conditions or provisions of its constituent documents or any
      agreement or instrument to which the Company is a
  party;

            

    

     

    
      	
               
      

            	
              e.

            	
              The
      Agreement has been duly authorized by all necessary corporate action on
      the part of the Company and, subject to acceptance by the Company,
      constitutes a valid obligation of the Company legally binding upon it and
      enforceable in accordance with its
terms;

            

    

     

    
      	
               
      

            	
              f.

            	
              The
      issuance of the Shares, at the time of their issue, will have been
      approved by all requisite corporate action and, upon issue and delivery,
      will be validly issued, fully paid and
  non-assessable.

            

    

     

    
      	
               
      

            	
              g.

            	
              The
      Company is duly registered or licensed to carry on business in the
      jurisdiction in which it is required to be so registered or licensed to
      carry on business or own property or
assets;

            

    

     

    
      	
               
      

            	
              h.

            	
              The
      Company is not a party to any actions, suits or proceedings which could
      materially affect its business or financial condition, and, as at the date
      hereof, no such actions, suits or proceedings have been threatened or, to
      the best of the Company’s knowledge, are pending, except as disclosed in
      the Public Record; and

            

    

     

    
      	
               
      

            	
              i.

            	
              No
      other ceasing or suspending trading in the Shares nor prohibiting sale of
      the Shares has been issued to and is outstanding against the Company or
      its directors, officers or promoters and to the best of the Company’s
      knowledge no investigations of proceedings for such purposes are pending
      or threatened.

            

    

     

    8.           Legending of
Securities

     

    The
Subscriber hereby acknowledges that legends will be placed upon the certificates
representing the Shares to the effect that the securities represented thereby
are subject to hold periods and may not be traded until the expiry thereof
except as permitted under the Resale Instrument, the policies of the SEC and any
other applicable securities legislation.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    9.           Costs

     

    The
Subscriber acknowledges and agrees that all costs and expenses incurred by the
Subscriber (including any fees and disbursements of any special counsel retained
by the Subscriber) relating to the acquisition of the Shares shall be borne by
the Subscriber.

     

    10.           Governing
Law

     

    This
Agreement is governed by the laws of the province of British Columbia and the
federal laws of Canada applicable herein and applicable securities laws of the
United States.  The Subscriber, in its personal or corporate capacity
and, if applicable, on behalf of each beneficial purchaser for whom it is
acting, irrevocably attorn to the jurisdiction of the courts of the province of
British Columbia.

     

    11.           Survival

     

    This
Agreement including, without limitation, the representations, warranties and
covenants contained herein, shall survive and continue in full force and effect
and be binding upon the parties notwithstanding the completion of the purchase
of the Shares by the Subscriber and any subsequent disposition by the Subscriber
or the Securities.

     

    12.           Assignment

     

    This
Agreement is not transferable or assignable.

     

    13.           Execution

     

    The
Company shall be entitled to rely on delivery by facsimile machine of an
executed copy of this Agreement and acceptance by the Company of such facsimile
copy shall be equally effective to create a valid and binding agreement between
the Subscriber and the Company in accordance with the terms hereof. This
Agreement may be executed through the use of separate signature pages or in any
number of counterparts, and each of such counterparts shall, for all purposes,
constitute one agreement binding on all parties, notwithstanding that all
parties are not signatories to the same counterpart.

     

    14.           Severability

     

    The
invalidity or unenforceability of any particular provision of this Agreement
shall not affect or limit the validity or enforceability of the remaining
provisions of the Agreement.

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    15.           Entire
Agreement

     

    Except as
expressly provided in this Agreement and in the agreements, instruments and
other documents contemplated or provided for herein, this Agreement contains the
entire agreement between the parties with respect to the sale of the Shares and
there are no other terms, conditions, representations or warranties, whether
expressed, implied, oral or written, by statute, by common law, by the Company,
by the Subscriber, or by any third party.

     

    16.           Notice

     

    Unless
otherwise provided herein, any notice or other communication to a party under
this Agreement may be made, given or served by registered mail, postage
pre-paid, by telecopy or by delivery to the parties at the addresses as set out
in this Agreement.  Any notice or other communication:

     

    
      	
               
      

            	
              a.

            	
              Mailed
      shall be deemed to have been received on the fifth business day following
      its mailing;

            

    

     

    
      	
               
      

            	
              b.

            	
              Telecopied
      shall be deemed to have been received on the business day following the
      date of transmission; and

            

    

     

    
      	
               
      

            	
              c.

            	
              Delivered
      shall be deemed to have been received on the date of
    delivery.

            

    

     

    In the
event of a postal strike or delay affecting mail delivery, the date of receipt
of any notice by mail is deemed to be extended by the length of such strike or
delay.  Each party may change its address for service at any time by
providing notice in writing of such change to the other party.

     

    17.           Securities Regulatory
Approval

     

    This
Agreement shall be subject to the approval of all securities regulatory
authorities having jurisdiction.

     

    18.           Binding
Effect

    

    This
Agreement shall be binding upon and inure to the benefit of the parties and
their heirs, executors, administrators, successors, legal representatives and
assigns.  If the undersigned is more than one person, the obligation
of the undersigned shall be joint and several and the agreements,
representations, warranties and acknowledgments herein contained shall be deemed
to be made by and be binding upon each such person and his heirs, executors,
administrators and successors.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    

    19.           Further
Assurances

    

    The
Subscriber agrees that he shall, from time to time after the Closing, upon the
request of the Company, duly execute, acknowledge and deliver, or cause to be
executed, acknowledged and delivered, all such further documents and instruments
and take such other actions, as may be requested by the Company.

    

    20.           Pronouns.

    

    The use
herein of the masculine pronouns "him" or "his" or similar terms shall be deemed
to include the feminine and neuter genders as well and the use herein of the
singular pronoun shall be deemed to include the plural as well.

     

    

     

    

    

    

     

    [Remainder
of Page Intentionally Omitted; Signature Pages to Follow]

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    ACCEPTANCE
BY SUBSCRIBER

     

    IN
WITNESS WHEREOF the Subscriber has executed this Agreement as of the 18th day of
April, 2008.

     

    Execution
of this signature page confirms that the attached Schedules are correct and
complete as of the date hereof. Note that the Company is relying on these
representations in ensuring that its offering of the shares is exempt from the
registration requirements of all applicable securities laws. Accordingly, you
hereby agree to notify the Company immediately if any information contained
herein becomes untrue at any time. You further agree to provide such information
and execute and deliver such documents as the Company may reasonably request to
verify the accuracy of the information contained herein, to comply with any law
or regulation to which the Company may be subject or for any other reasonable
purpose.

     

    

     

    ___________________________________

    Name of Purchaser – please
print

     

    ___________________________________

    Signature

    

     

    
 

     

    23EX-10.1

 

Exhibit 10.1

FIRST HORIZON NATIONAL CORPORATION

2003 EQUITY COMPENSATION PLAN

(AS AMENDED AND RESTATED APRIL 14, 2008)

SECTION
1 — Purpose

This plan shall be known as the “First Horizon National Corporation 2003 Equity Compensation Plan”
(the “Plan”). The purpose of the Plan is to promote the interests of First Horizon National
Corporation, a Tennessee corporation (the “Company”), and its shareholders by (i) attracting and
retaining officers, employees, and non-employee directors of the Company and its Subsidiaries, (ii)
motivating such individuals by means of performance-related incentives to achieve long-range
performance goals, (iii) enabling such individuals to participate in the long-term growth and
financial success of the Company, (iv) encouraging ownership of stock in the Company by such
individuals, and (v) linking compensation to the long-term interests of shareholders. With respect
to any awards granted under the Plan that are intended to comply with the requirements of
“performance-based compensation” under Section 162(m) of the Code (as defined below), the Plan
shall be interpreted in a manner consistent with such requirements.

SECTION
2 — Definitions

As used in the Plan, the following terms shall have the meanings set forth below:

“Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit or
Performance Award granted under the Plan, whether singly or in combination, to a Participant
pursuant to such terms, conditions, restrictions and/or limitations, if any, as may be established
from time to time.

“Award Agreement” shall mean any written or electronic agreement, contract, notice or other
instrument or document evidencing any Award, which may, but need not, be executed or acknowledged
by a Participant.

“Board” shall mean the Board of Directors of the Company.

“Cause” shall mean (i) a Participant’s conviction of, or plea of guilty or nolo contendere (or
similar plea) to, (A) a misdemeanor charge involving fraud, false statements or misleading
omissions, wrongful taking, embezzlement, bribery, forgery, counterfeiting or extortion, (B) a
felony charge or (C) an equivalent charge to those in clauses (A) and (B) in jurisdictions which do
not use those designations; (ii) the engaging by a Participant in any conduct which constitutes an
employment disqualification under applicable law (including statutory disqualification as defined
under the Exchange Act); (iii) a Participant’s failure to perform his or her duties to the Company
or its Subsidiaries; (iv) a Participant’s violation of any securities or commodities laws, any
rules or regulations issued pursuant to such laws, or the rules and regulations of any securities
or commodities exchange or association of which the Company or any of its Subsidiaries or
affiliates is a member; (v) a Participant’s violation of any policy of the Company or its
Subsidiaries concerning hedging or confidential or proprietary information, or a Participant’s
material violation of any other policy of the Company or its Subsidiaries as in effect from time to
time; (vi) the engaging by a Participant in any act or making any statement which impairs, impugns,
denigrates, disparages or negatively reflects upon the name, reputation or business interests of
the Company or its Subsidiaries; or (vii) the engaging by the Participant in any conduct
detrimental to the Company or its Subsidiaries. The determination as to whether Cause has occurred
shall be made by the Committee in its sole discretion. The Committee shall also have the authority
in its sole discretion to

 

 

waive the consequences under the Plan or any Award Agreement of the existence or occurrence of any
of the events, acts or omissions constituting Cause.

“Change in Control” shall mean, unless otherwise defined in the applicable Award Agreement, the
occurrence of any one of (and shall be deemed to have occurred on the date of the earliest to occur
of) the following events:

	 	(i)	 	individuals who, on January 21, 1997, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the Board, provided that any
person becoming a director subsequent to January 21, 1997, whose election or nomination for
election was approved by a vote of at least three-fourths (3/4) of the Incumbent Directors
then on the Board (either by a specific vote or by approval of the proxy statement of the
Company in which such person is named as a nominee for director, without written objection
to such nomination) shall be an Incumbent Director; provided, however, that no individual
elected or nominated as a director of the Company initially as a result of an actual or
threatened election contest with respect to directors or as a result of any other actual or
threatened solicitation of proxies or consents by or on behalf of any person other than the
Board shall be deemed to be an Incumbent Director;
	 
	 	(ii)	 	any “Person” (for purposes of this definition only, as defined under Section 3(a)(9) of
the Exchange Act as used in Section 13(d) or Section 14(d) of the Exchange Act) is or
becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 20% or more of the combined voting
power of the Company’s then outstanding securities eligible to vote for the election of the
Board (the “Company Voting Securities”); provided, however, that the event described in
this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the
following acquisitions: (A) by the Company or any Subsidiary, (B) by an employee stock
ownership or employee benefit plan or trust sponsored or maintained by the Company or any
Subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering
of such securities, or (D) pursuant to a Non-Qualifying Transaction (as defined in
paragraph (iii) hereof);
	 
	 	(iii)	 	the shareholders of the Company approve a merger, consolidation, share exchange or
similar form of corporate transaction involving the Company or any of its Subsidiaries that
requires the approval of the Company’s shareholders, whether for such transaction or the
issuance of securities in the transaction (a “Business Combination”), unless immediately
following such Business Combination: (A) more than 50% of the total voting power of (x)
the corporation resulting from such Business Combination (the “Surviving Corporation”), or
(y) if applicable, the ultimate parent corporation that directly or indirectly has
beneficial ownership of 100% of the voting securities eligible to elect directors of the
Surviving Corporation (the “Parent Corporation”), is represented by Company Voting
Securities that were outstanding immediately prior to the consummation of such Business
Combination (or, if applicable, is represented by shares into which such Company Voting
Securities were converted pursuant to such Business Combination), and such voting power
among the holders thereof is in substantially the same proportion as the voting power of
such Company Voting Securities among the holders thereof immediately prior to the Business
Combination, (B) no Person (other than any employee benefit plan sponsored or maintained by
the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner,
directly or indirectly, of 20% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) and (C) at least a majority of the members of the
board of directors of the Parent Corporation (or, if there is no Parent Corporation, the
Surviving Corporation) were Incumbent Directors at the time of the Board’s approval of the
execution of the initial agreement providing for such

 

 

	 	 	 	Business Combination (any Business Combination which satisfies all of the criteria
specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying
Transaction”); or
	 
	 	(iv)	 	the shareholders of the Company approve a plan of complete liquidation or dissolution
of the Company or a sale of all or substantially all of the Company’s assets.

Computations required by paragraph (iii) shall be made on and as of the date of shareholder
approval and shall be based on reasonable assumptions that will result in the lowest percentage
obtainable. Notwithstanding the foregoing, a Change in Control of the Company shall not be deemed
to have occurred solely because any Person acquires beneficial ownership of more than twenty
percent (20%) of the Company Voting Securities as a result of the acquisition of Company Voting
Securities by the Company which reduces the number of Company Voting Securities outstanding;
provided, that if after such acquisition by the Company such Person becomes the beneficial owner of
additional Company Voting Securities that increases the percentage of outstanding Company Voting
Securities beneficially owned by such Person, a Change in Control of the Company shall then occur.

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

“Committee” shall mean a committee of the Board composed solely of not less than two Non-Employee
Directors, all of whom shall (i) satisfy the requirements of Rule 16b-3(b)(3) of the Exchange Act,
(ii) be “outside directors” within the meaning of Section 162(m) and (iii) otherwise meet any
“independence” requirements promulgated by any stock exchange on which the shares are listed. The
members of the Committee shall be appointed by and serve at the pleasure of the Board.

“Company” shall mean First Horizon National Corporation, a Tennessee corporation, and its
successors and assigns.

“Compensation Plans” shall mean any compensation plan such as an incentive, stock option,
restricted stock, pension restoration or deferred compensation plan or any employee benefit plan
such as a thrift, pension, profit sharing, medical, disability, accident, life insurance plan or a
relocation plan or policy or any other plan, program or policy of the Company intended to benefit
employees, including, without limitation, any Compensation Plans established after the date hereof.

“Covered Officer” shall mean at any date (i) any individual who, with respect to the previous
taxable year of the Company, was a “covered employee” of the Company within the meaning of Section
162(m); provided, however, that the term “Covered Officer” shall not include any such individual
who is designated by the Committee, in its discretion, at the time of any Award or at any
subsequent time, as reasonably expected not to be such a “covered employee” with respect to the
current taxable year of the Company, and (ii) any individual who is designated by the Committee, in
its discretion, at the time of any Award or at any subsequent time, as reasonably expected to be
such a “covered employee” with respect to the current taxable year of the Company or with respect
to the taxable year of the Company in which any applicable Award will be paid.

“Deferred Compensation Award” means any Award that is not an Exempt Award.

“Disability” shall mean, unless otherwise defined in the applicable Award Agreement, a
disability that would qualify as a total and permanent disability under the long-term disability
plan then in effect at the Employer employing the Participant at the onset of such total and
permanent disability.

“Employee” shall mean an employee of any Employer.

“Employer” shall mean the Company or any Subsidiary.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

 

“Exempt Award” means any Award that does not constitute deferred compensation subject to Section
409A of the Internal Revenue Code (the “Code”) under any relevant exception by statute, regulation
or rule, specifically including, but not limited to, Treas. Reg. §§1.409A-1(b)(4) (short-term
deferrals), 1.409A-1(b)(5) (certain stock options and stock appreciation rights) and 1.409A-1(b)(6)
(restricted stock).

“Fair Market Value” with respect to the Shares, shall mean, as of any date, (i) the mean
between the high and low sales prices at which Shares were sold on the New York Stock Exchange, or,
if the shares are not listed on the New York Stock Exchange, on any other such exchange on which
the Shares are traded, on such date, or, in the absence of reported sales on such date, the mean
between the high and low sales prices on the immediately preceding date on which sales were
reported, or (ii) in the event there is no public market for the Shares on such date, the fair
market value as determined in good faith by the Committee in its sole discretion.

“Good Reason” shall mean, following notice given by the Participant to the Company:

	 	(i)	 	an adverse change in the Participant’s status, title or position with the Company as in
effect immediately prior to the Change in Control, including, without limitation, any
adverse change in the Participant’s status, title or position as a result of a diminution
in the Participant’s duties or responsibilities, or the assignment to the Participant of
any duties or responsibilities which are inconsistent with such status, title, or position
as in effect immediately prior to the Change in Control, or any removal of the Participant
from, or any failure to reappoint or reelect the Participant to, such position (except in
connection with the termination of the Participant’s employment for Cause, Disability or
Retirement or as a result of the Participant’s death and except by the Participant other
than for Good Reason);
	 
	 	(ii)	 	a reduction by the Company in the Participant’s base salary or annual target bonus
opportunity (including any adverse change in the formula for such annual bonus target) as
in effect immediately prior to the Change in Control or as the same may be increased from
time to time thereafter;
	 
	 	(iii)	 	the failure by the Company to provide the Participant with Compensation Plans that
provide the Participant with substantially equivalent benefits in the aggregate to the
Compensation Plans as in effect immediately prior to the Change in Control (at
substantially equivalent cost with respect to welfare benefit plans); and
	 
	 	(iv)	 	the Company’s requiring the Participant to be based at an office that is greater than
25 miles from where the Participant’s office is located immediately prior to the Change in
Control;

provided, however, (a) that an isolated and inadvertent action taken in good faith and which is
remedied by the Company within ten (10) days after receipt of notice thereof given by the
Participant shall not constitute Good Reason, and (b) no action shall constitute a Good Reason if
the Participant has acknowledged to the Company in writing that a Good Reason will not arise from
that action.

“Non-Employee Director” shall mean a member of the Board who is not an Employee.

“Option” shall mean an option to purchase Shares from the Company that is granted under Section 6
or 9 of the Plan and is not intended to meet the requirements of Section 422 of the Code or any
successor provision thereto.

“Option Price” shall mean the purchase price payable to purchase one Share upon the exercise of an
Option.

“Participant” shall mean any Employee, Non-Employee Director or Regional Board Member who receives
an Award under the Plan.

 

 

“Performance Award” shall mean any right granted under Section 8 of the Plan.

“Person” shall mean any individual, corporation, partnership, association, joint-stock company,
limited liability company, trust, unincorporated organization, government or political subdivision
thereof or other entity.

“Plan” shall mean this First Horizon National Corporation 2003 Equity Compensation Plan.

“Qualifying Termination” shall mean a termination of the employment of a Participant with the
Company resulting from any of the following:

	 	(i)	 	a termination of the employment or engagement of a Participant by the Company and its
Subsidiaries within thirty-six (36) months following a Change in Control, other than a
termination for Cause, Disability or Retirement or as a result of the Participant’s death;
or

	 	(ii)	 	a termination of employment by a Participant for Good Reason within thirty-six (36)
months following a Change in Control.

“Regional Board Member” shall mean any First Tennessee Bank National Association regional board
member and any member of the board of directors of any bank subsidiary of the Company, other than
First Tennessee Bank National Association, in each case excluding any Employee.

“Restricted Stock” shall mean any Share granted under Section 7 or 9 of the Plan.

“Restricted Stock Unit” shall mean any unit granted under Section 7 or 9 of the Plan.

“Retirement” shall mean, unless otherwise defined in the applicable Award Agreement, the
Termination of Employment of a Participant after the Participant has fulfilled all age and service
requirements for retirement under the terms of the First Horizon National Corporation Pension Plan,
as amended from time to time.

“SEC” shall mean the Securities and Exchange Commission or any successor thereto.

“Section 16” shall mean Section 16 of the Exchange Act and the rules promulgated thereunder and any
successor provision thereto as in effect from time to time.

“Section 162(m)” shall mean Section 162(m) of the Code and the rules promulgated thereunder or any
successor provision thereto as in effect from time to time.

“Shares” shall mean shares of the common stock, $0.625 par value, as adjusted from time to time for
stock splits or reverse stock splits, of the Company.

“Specified Employee” means a Participant who, as of the date of his separation from service, is a
“key employee” of the Company or any Affiliate, any stock of which is actively traded on an
established securities market or otherwise. A Participant is a key employee if he or she meets the
requirements of Section 416(i)(1)(A)(i), (ii) or (iii) of the Code, (applied in accordance with
applicable regulations thereunder and without regard to Section 416(i)(5)) at any time during the
12-month period ending on the Specified Employee Identification Date. Such Participant shall be
treated as a key employee for the entire 12-month period beginning on the Specified Employee
Effective Date.

For purposes of determining whether a Participant is a Specified Employee, the compensation of the
Participant shall be determined in accordance with the definition of compensation provided under
Treas. Reg. Section 1.415(c)-2(d)(3) (wages within the meaning of Section 3401(a) of the Code for
purposes of income tax withholding at the source, plus amounts excludible from gross income under
Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b), without regard to rules that
limit the remuneration

 

 

included in wages based on the nature or location of the employment or the services performed);
provided, however, that, with respect to a nonresident alien who is not a Participant in the Plan,
compensation shall not include compensation that is not includible in the gross income of such
person under Sections 872, 893, 894, 911, 931 and 933, provided such compensation is not
effectively connected with the conduct of a trade or business within the United States.

Notwithstanding anything in this paragraph to the contrary, (i) if a different definition of
compensation has been designated by the Company with respect to another nonqualified deferred
compensation plan in which a key employee participates, the definition of compensation shall be the
definition provided in Treas. Reg. Section 1.409A-1(i)(2), and (ii) the Company may through action
that is legally binding with respect to all nonqualified deferred compensation plans maintained by
the Company, elect to use a different definition of compensation.

In the event of corporate transactions described in Treas. Reg. Section 1.409A-1(i)(6), the
identification of Specified Employees shall be determined in accordance with the default rules
described therein, unless the Company elects to utilize the available alternative methodology
through designations made within the timeframes specified therein.

“Specified Employee Identification Date” means September 30, unless the Company has elected a
different date through action that is legally binding with respect to all nonqualified deferred
compensation plans maintained by the Company.

“Specified Employee Effective Date” means the first day of the fourth month following the Specified
Employee Identification Date, or such earlier date as is selected by the Committee.

“Stock Appreciation Right or SAR” shall mean a right granted under Section 6 or 9 of the Plan that
entitles the holder to receive, with respect to each Share encompassed by the exercise of such SAR,
the amount determined by the Committee, or in the case of an Award granted under Section 9 hereof,
by the Board, and specified in an Award Agreement. In the absence of such a determination, the
holder shall be entitled to receive, with respect to each Share encompassed by the exercise of such
SAR, the excess of the Fair Market Value on the date of exercise over the Fair Market Value on the
date of grant.

“Subsidiary” shall mean any Person of which a majority of its voting power or its equity securities
or equity interest is owned directly or indirectly by the Company.

“Substitute Awards” shall mean Awards granted solely in assumption of, or in substitution for,
outstanding awards previously granted by a Person acquired by the Company or with which the Company
or one of its Subsidiaries combines.

“Termination of Employment” shall mean the termination of the employee-employer relationship
between a Participant and the Employer for any reason, with or without Cause, including, but not by
way of limitation, a termination by resignation, discharge, death, Disability, Workforce Reduction
or Retirement, but excluding (i) terminations where there is a simultaneous reemployment or
continuing employment of the Participant by another Employer; (ii) at the discretion of the
Committee, terminations which result in a temporary severance of the employee-employer
relationship; and (iii) at the discretion of the Committee, terminations which are followed by the
simultaneous establishment of a consulting relationship by an Employer with the Participant. The
Committee, in its absolute discretion, shall determine the effect of all matters and questions
relating to Termination of Employment, including, but not by way of limitation, the question of
whether a Termination of Employment resulted from a discharge for Cause, and all questions of
whether particular leaves of absence constitute Terminations of Employment. However,
notwithstanding any provision of this Plan, an Employer has an absolute and unrestricted right to
terminate an Employee’s employment at any time for any reason whatsoever, with or without Cause.

 

 

“Workforce Reduction” shall mean any termination of the employee-employer relationship between a
Participant and the Employer as a result of the discontinuation by the Company of a business or
line of business or a realignment of the Company, or a part thereof, or any other similar type of
event, provided that the Committee or the Board has designated such discontinuation, realignment or
other event as a “Workforce Reduction” for purposes of this Plan.

SECTION
3 — Administration

	 	(A)	 	Authority of Committee. Except as provided by Section 9 hereof, the Plan shall be
administered by the Committee, it being understood that the Board retains the right to make Awards
under the Plan. Subject to the terms of the Plan and applicable law, and in addition to other
express powers and authorizations conferred on the Committee by the Plan, the Committee shall have
full power and authority in its discretion to: (i) designate Participants; (ii) determine the type
or types of Awards to be granted to a Participant; (iii) determine the number of Shares to be
covered by, or with respect to which payments, rights, or other matters are to be calculated in
connection with, Awards; (iv) determine the timing, terms, and conditions of any Award; (v)
accelerate the time at which all or any part of an Award may be settled or exercised; (vi)
determine whether, to what extent, and under what circumstances Awards may be settled or exercised
in cash, Shares, other securities, other Awards or other property, or canceled, forfeited, or
suspended, and the method or methods by which Awards may be settled, exercised, canceled,
forfeited, or suspended; (vii) determine whether, to what extent, and under what circumstances
cash, Shares, other securities, other Awards, other property, and other amounts payable with
respect to an Award shall be deferred either automatically or at the election of the holder thereof
or of the Committee; (viii) interpret and administer the Plan and any instrument or agreement
relating to, or Award made under, the Plan; (ix) amend or modify the terms of any Award after
grant; (x) establish, amend, suspend, or waive such rules and regulations and appoint such agents
as it shall deem appropriate for the proper administration of the Plan; and (xi) make any other
determination and take any other action that the Committee deems necessary or desirable for the
administration of the Plan subject to the exclusive authority of the Board under Section 14
hereunder to amend, suspend or terminate the Plan.

	 	(B)	 	Committee Discretion Binding. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and
shall be final, conclusive, and binding upon all Persons, including any Employer, any Participant,
any holder or beneficiary of any Award, any Employee, any Non-Employee Director and any Regional
Board Member.

	 	(C)	 	Action by the Committee. Except as otherwise provided by the Board, the provisions of this
Section 3(C) shall apply to the Committee. The Committee shall select one of its members as its
chairperson and shall hold its meetings at such times and places and in such manner as it may
determine. A majority of its members shall constitute a quorum. Any decision or determination
reduced to writing and signed by all of the members of the Committee shall be fully effective as if
it had been made by a majority vote at a meeting duly called and held. The Committee may appoint a
secretary and may make such rules and regulations for the conduct of its business, as it shall deem
advisable.

	 	(D)	 	Delegation. Subject to the terms of the Plan, the Board or the Committee may, to the
extent permitted by law, delegate to (i) a subcommittee of the Committee, (ii) one or more officers
or managers of an Employer or (iii) a committee of such officers or managers, the authority,
subject to such terms and limitations as the Board or the Committee shall determine, to grant
Awards to, or to cancel, modify or waive rights with respect to or to alter, discontinue, suspend,
or terminate Awards held by, Participants who are not officers or directors of the Company for
purposes of Section 16 or who are otherwise not subject to Section 16, and who are not Covered
Officers.

	 	(E)	 	Indemnification. No member of the Board or the Committee or any Employee (each such person
a “Covered Person”) shall have any liability to any person (including any grantee) for any action
taken or

 

 

omitted to be taken or any determination made in good faith with respect to the Plan or any Award.
Each Covered Person shall be indemnified and held harmless by the Company against and from any
loss, cost, liability, or expense (including attorneys’ fees) that may be imposed upon or incurred
by such Covered Person in connection with or resulting from any action, suit or proceeding to which
such Covered Person may be a party or in which such Covered Person may be involved by reason of any
action taken or omitted to be taken under the Plan or any Award Agreement and against and from any
and all amounts paid by such Covered Person, with the Company’s approval, in settlement thereof, or
paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding
against such Covered Person, provided that the Company shall have the right, at its own expense, to
assume and defend any such action, suit or proceeding and, once the Company gives notice of its
intent to assume the defense, the Company shall have sole control over such defense with counsel of
the Company’s choice. The foregoing right of indemnification shall not be available to a Covered
Person to the extent that a court of competent jurisdiction in a final judgment or other final
adjudication, in either case, not subject to further appeal, determines that the acts or omissions
of such Covered Person giving rise to the indemnification claim resulted from such Covered Person’s
bad faith, fraud or willful misconduct. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which Covered Persons may be entitled under the
Company’s Restated Charter or Bylaws, as a matter of law, or otherwise, or any other power that the
Company may have to indemnify such persons or hold them harmless.

SECTION
4 — Shares Available for Awards

	 	(A)	 	Shares Available. Subject to the provisions of Section 4(B) hereof, the stock to be
subject to Awards under the Plan shall be Shares and the maximum number of Shares which may be
issued with respect to Awards shall be 8,500,000, of which no more than 4,800,000 shall be issued
with respect to Awards other than Options. If, after the effective date of the Plan, any Shares
covered by an Award granted under this Plan, or to which such an Award relates, are forfeited, or
if such an Award is settled for cash or otherwise terminates, expires unexercised, or is canceled
without the delivery of Shares, then the Shares covered by such Award, or to which such Award
relates, or the number of Shares otherwise counted against the aggregate number of Shares which may
be issued with respect to Awards, to the extent of any such settlement, forfeiture, termination,
expiration, or cancellation, shall again become Shares which may be issued with respect to Awards.
In the event that any Option or other Award granted hereunder is exercised through the delivery of
Shares by the Participant or in the event that withholding tax liabilities arising from such Award
are satisfied by the withholding of Shares by the Company from the total number of Shares that
otherwise would have been delivered to the Participant, the number of Shares which may be issued
with respect to Awards shall be increased by the number of Shares so surrendered or withheld.
Notwithstanding the foregoing and subject to adjustment as provided in Section 4(B) hereof, the
number of Shares with respect to which Options and SARs may be granted to any one Participant in
any one calendar year shall be no more than 500,000 Shares.

	 	(B)	 	Adjustments. The number of Shares covered by each outstanding Award, the number of Shares
available for Awards, the number of Shares that may be subject to Awards to any one Participant,
and the price per Share covered by each such outstanding Award shall be proportionately adjusted
for any increase or decrease in the number of issued Shares resulting from a stock split, reverse
stock split, stock dividend, recapitalization, combination or reclassification of the Shares, and
may be proportionately adjusted, as determined in the sole discretion of the Board, for any other
increase or decrease in the number of issued Shares effected without receipt of consideration by
the Company or to reflect any distributions to holders of Shares other than regular cash dividends.
Except as expressly provided herein, no issuance by the Company of shares of stock of any class,
or securities convertible into shares of stock of any class, shall affect, and no adjustment by
reason thereof shall be made with respect to, the number or price of Shares subject to an Award.
After any adjustment made pursuant to this paragraph, the number of Shares subject to each
outstanding Award shall be rounded to the nearest whole number.

 

 

	 	(C)	 	Substitute Awards. Any Shares issued by the Company as Substitute Awards shall not reduce
the Shares available for Awards under the Plan.

	 	(D)	 	Sources of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award may
consist, in whole or in part, of authorized and unissued Shares or of issued Shares which have been
reacquired by the Company.

SECTION
5 — Eligibility

Any Employee (including any officer or employee-director of an Employer), Non-Employee Director or
Regional Board Member shall be eligible to be designated a Participant; provided, however, that
Non-Employee Directors shall only be eligible to receive Awards granted pursuant to Section 9
hereof.

SECTION
6 — Stock Options and Stock Appreciation Rights

	 	(A)	 	Grant. Except as provided by Sections 3 and 9 hereof, the Committee shall have sole and
complete authority to determine the Participants to whom Options and SARs shall be granted, the
number of Shares subject to each Award, the exercise price and the conditions and limitations
applicable to the exercise of Options and SARs. A person who has been granted an Option or SAR
under this Plan may be granted additional Options or SARs under the Plan if the Committee shall so
determine.

	 	(B)	 	Option Price. The Committee, in its sole discretion, shall establish the Option Price at
the time each Option is granted. Except in the case of Substitute Awards, the Option Price of an
Option may not be less than 100% of the Fair Market Value of the Shares with respect to which the
Option is granted on the date of grant of such Option. Notwithstanding the prior sentence, the
Option Price of an Option may be less than 100% of the Fair Market Value of the Shares with respect
to which the Option is granted on the date of grant of such Option if (i) the grantee of the Option
has entered into an agreement with the Company pursuant to which the grant of the Option is in lieu
of the payment of compensation and (ii) the amount of such compensation when added to the Option
Price of the Option equals at least 100% of the Fair Market Value of the Shares with respect to
which the Option is granted on the date of grant of such Option. Notwithstanding the foregoing and
except as provided by Sections 4(B) and 14(C) hereof, the Committee shall not have the power to (i)
amend the terms of previously granted Options to reduce the Option Price of such Options, or (ii)
cancel such Options and grant substitute Options with a lower Option Price than the cancelled
Options, without shareholder approval.

	 	(C)	 	Term. Subject to the Committee’s authority under Section 3(A) hereof, each Option and SAR
and all rights and obligations thereunder shall expire on the date determined by the Committee and
specified in the Award Agreement. The Committee shall be under no duty to provide terms of like
duration for Options or SARs granted under the Plan. Notwithstanding the foregoing, no Option
shall be exercisable after the expiration of ten (10) years from the date such Option was granted.

	 	(D)	 	Transfer Restrictions. Except as otherwise provided in this Section 6(D), no Option shall
be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered, hedged or disposed
of, in any manner, whether voluntarily or involuntarily, including by operation of law (other than
by will or the laws of descent and distribution). The Committee may in its discretion permit the
transfer of an Option by a Participant to or for the benefit of the Participant’s Immediate Family
(including, without limitation, to a trust for the benefit of the Participant’s Immediate Family or
to a partnership or limited liability company for one or more members of the Participant’s
Immediate Family), subject to such limits as the Committee may establish, and the transferee shall
remain subject to all the terms and conditions applicable to the Option prior to such transfer.
The foregoing right to transfer the Option shall apply to the right to consent to amendments to any
Award Agreement evidencing such Option and, in the discretion of the Committee, shall also apply to
the right to transfer ancillary rights associated with the Option. For purposes of this paragraph,
the term “Immediate Family” shall mean the Participant’s spouse, parents, children, stepchildren,
adopted relations, sisters, brothers, grandchildren and step-grandchildren.

 

 

	 	(F)	 	Exercise.

(i) 
Each Option and SAR shall be exercisable at such times and subject to such terms and
conditions as the Committee may, in its sole discretion, specify in the applicable Award
Agreement or thereafter. The Committee shall have full and complete authority to determine
whether an Option or SAR will be exercisable in full at any time or from time to time
during the term of the Option or SAR, or to provide for the exercise thereof in such
installments, upon the occurrence of such events and at such times during the term of the
Option or SAR as the Committee may determine.

(ii) The Committee may impose such conditions with respect to the exercise of Options, including
without limitation, any relating to the application of federal, state or foreign securities
laws or the Code, as it may deem necessary or advisable. The exercise of any Option
granted hereunder shall be effective only at such time as the sale of Shares pursuant to
such exercise will not violate any state or federal securities or other laws, as determined
by the Committee in its sole discretion.

(iii) An Option or SAR may be exercised in whole or in part at any time, with respect to whole
Shares only, within the period permitted thereunder for the exercise thereof, and shall be
exercised by written notice of intent to exercise the Option or SAR, delivered to the
Company at its principal office, and payment in full to the Company at said office of the
amount of the Option Price for the number of Shares with respect to which the Option is
then being exercised.

(iv) Payment of the Option Price shall be made in cash or cash equivalents, or, at the discretion of
the Committee, (i) by tendering, either by way of actual delivery of Shares or attestation,
whole Shares that have been owned by the Option holder for not less than six (6) months, if
acquired directly from the Company, or that have been owned for any period of time, if
acquired on the open market, prior to the date of exercise, valued at the Fair Market Value
of such Shares on the date of exercise, together with any applicable withholding taxes,
(ii) by a combination of such cash (or cash equivalents) and such Shares or (iii) by such
other method of exercise as may be permitted from time to time by the Committee; provided,
however, that the optionee shall not be entitled to tender Shares pursuant to successive,
substantially simultaneous exercises of an Option or any other stock option of the Company.
Subject to applicable securities laws and at the discretion of the Committee, an Option
may also be exercised by delivering a notice of exercise of the Option and simultaneously
selling the Shares thereby acquired, pursuant to a brokerage or similar agreement or
program approved in advance by the Committee. Until the optionee has been issued the
Shares subject to such exercise, he or she shall possess no rights as a shareholder with
respect to such Shares and shall not be entitled to any dividend or distribution the record
date of which is prior to the date of issuance of such Shares. At the Committee’s
discretion, the amount payable as a result of the exercise of an SAR may be settled in
cash, Shares, or a combination of cash and Shares. A fractional Share shall not be
deliverable upon the exercise of a SAR but a cash payment will be made in lieu thereof.

(v) Notwithstanding anything in this Plan to the contrary, a Participant shall be required to pay to
the Company an amount equal to the spread realized in connection with the Participant’s
exercise of an Option within six months prior to such Participant’s termination of
employment by resignation in the event that such Participant, within six months following
such Participant’s termination of employment by resignation, engages directly or indirectly
in any activity determined by the Committee, in its sole discretion, to be competitive with
any activity of the Company or any of its Subsidiaries. This subsection (v) shall be void
and of no legal effect upon a Change in Control.

 

 

SECTION
7 — Restricted Stock and Restricted Stock Units

	 	(A)	 	Grant.

(i) Except as provided by Sections 3 and 9 hereof, the Committee shall have sole and complete
authority to determine the Participants to whom Restricted Stock and Restricted Stock Units
shall be granted, the number of shares of Restricted Stock and/or the number of Restricted
Stock Units to be granted to each Participant, the duration of the period during which, and
the conditions under which, the Restricted Stock and Restricted Stock Units may be
forfeited to the Company, and the other terms and conditions of such Awards. The
Restricted Stock and Restricted Stock Unit Awards shall be evidenced by Award Agreements in
such form as the Committee shall from time to time approve, which agreements shall comply
with and be subject to the terms and conditions provided hereunder and any additional terms
and conditions established by the Committee that are consistent with the terms of the Plan.

(ii) Each Restricted Stock or Restricted Stock Unit Award made under the Plan shall be for such
number of Shares as shall be determined by the Committee and set forth in the agreement
containing the terms of such Restricted Stock or Restricted Stock Unit Award. Such
agreement shall set forth a period of time during which the grantee must remain in the
continuous employment of one or more Employers in order for the forfeiture and transfer
restrictions to lapse. If the Committee so determines, the restrictions may lapse during
such restricted period in installments with respect to specified portions of the Shares
covered by the Restricted Stock or Restricted Stock Unit Award. The agreement may also, in
the discretion of the Committee, set forth performance or other conditions that, if
satisfied, will result in the lapsing of any applicable forfeiture and transfer
restrictions. The Committee may, at its discretion, waive all or any part of the
restrictions applicable to any or all outstanding Restricted Stock and Restricted Stock
Unit Awards.

	 	(B)	 	Delivery of Shares and Transfer Restrictions. The Company may implement the grant of a
Restricted Stock Award by (i) book-entry issuance of Shares to the Participant in an account
maintained by the Company at its transfer agent or (ii) delivery of certificates for Shares to the
Participant who must execute appropriate stock powers in blank and return the certificates and
stock powers to the Company. Such certificates and stock powers shall be held by the Company or
any custodian appointed by the Company for the account of the grantee subject to the terms and
conditions of the Plan, and the certificate shall bear such a legend setting forth the restrictions
imposed thereon as the Committee, in its discretion, may determine. Unless otherwise determined by
the Committee, the grantee shall have all rights of a shareholder with respect to the shares of
Restricted Stock, including the right to receive dividends and the right to vote such Shares,
subject to the following restrictions: (i) in the case of certificated Shares, the grantee shall
not be entitled to delivery of the stock certificate until the expiration of the restricted period
and the fulfillment of any other restrictive conditions set forth in the Award Agreement with
respect to such Shares; (ii) none of the Shares may be sold, assigned, transferred, pledged,
hypothecated or otherwise encumbered, hedged or disposed of, in any manner, whether voluntarily or
involuntarily, including by operation of law (other than by will or the laws of descent and
distribution) until the expiration of the restricted period and the fulfillment of any other
restrictive conditions set forth in the Award Agreement with respect to such Shares; and (iii)
except as otherwise determined by the Committee, all of the Shares shall be forfeited and all
rights of the grantee to such Shares shall terminate, without further obligation on the part of the
Company, unless the grantee remains in the continuous employment of one or more Employers for the
entire restricted period in relation to which such Shares were granted and unless any other
restrictive conditions relating to the Restricted Stock Award are met. Any Shares, any other
securities of the Company and any other property (except for cash dividends) distributed with
respect to the Shares subject to Restricted Stock Awards shall be subject to the same restrictions,
terms and conditions as such Restricted Stock.

 

 

	 	(C)	 	Termination of Restrictions. At the end of the restricted period and provided that any
other restrictive conditions of the Restricted Stock Award are met, or at such earlier time as
otherwise determined by the Committee, all restrictions set forth in the Award Agreement relating
to the Restricted Stock Award or in the Plan shall lapse as to the restricted Shares subject
thereto, and, if certificated, a stock certificate for the appropriate number of Shares, free of
the restrictions and restricted stock legend imposed thereon by the Committee as described in the
second sentence of Subsection (B) of this Section 7, shall be delivered to the Participant or the
Participant’s beneficiary or estate, as the case may be.

	 	(D)	 	Payment of Restricted Stock Units. Each Restricted Stock Unit shall have a value equal to
the Fair Market Value of a Share. Restricted Stock Units shall be paid in cash, Shares, other
securities or other property, as determined in the sole discretion of the Committee, upon the lapse
of the restrictions applicable thereto, or otherwise in accordance with the applicable Award
Agreement. The Committee may, in its sole and absolute discretion, credit Participants with
dividend equivalents on any Restricted Stock Units credited to the Participant’s account at the
time of any payment of dividends to shareholders on Shares. The amount of any such dividend
equivalents shall equal the amount that would have been payable to the Participant as a shareholder
in respect of a number of Shares equal to the number of Restricted Stock Units then credited to
him. Any such dividend equivalents shall be credited to the Participant’s account as of the date
on which such dividend would have been payable and shall be converted into additional Restricted
Stock Units based upon the Fair Market Value of a Share on the date of such crediting. Restricted
Stock Units may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered,
hedged or disposed of, in any manner, whether voluntarily or involuntarily, including by operation
of law (other than by will or the laws of descent and distribution) until the expiration of the
applicable restricted period and the fulfillment of any other restrictive conditions relating to
the Restricted Stock Unit Award. Except as otherwise determined by the Committee, all Restricted
Stock Units and all rights of the grantee to such Restricted Stock Units shall terminate, without
further obligation on the part of the Company, unless the grantee remains in continuous employment
of one or more Employers for the entire restricted period in relation to which such Restricted
Stock Units were granted and unless any other restrictive conditions relating to the Restricted
Stock Unit Award are met.

SECTION
8 — Performance Awards

	 	(A)	 	Grant. The Committee shall have sole and complete authority to determine the Participants
who shall receive a Performance Award, which shall consist of a right that is (i) denominated in
cash and/or Shares, (ii) valued, as determined by the Committee, in accordance with the achievement
of such performance goals during such performance periods as the Committee shall establish, and
(iii) payable at such time and in such form as the Committee shall determine. The Committee may,
in its sole and absolute discretion, designate whether any Performance Award being granted to any
Participant is intended to be “performance-based compensation” as that term is used in Section
162(m). Any Performance Awards designated by the Committee as “performance-based compensation”
shall be subject to the terms and provisions of Section 10 hereof.

	 	(B)	 	Terms and Conditions. Subject to the terms of the Plan, the Committee shall determine the
performance goals to be achieved during any performance period, the length of any performance
period, the amount of any Performance Award and the amount and kind of any payment or transfer to
be made pursuant to any Performance Award, and may change specific provisions of the Performance
Award, provided, however, that such change may not adversely affect existing Performance Awards
made within a performance period commencing prior to implementation of the change.

	 	(C)	 	Payment of Performance Awards. Performance Awards may be paid in a lump sum or in
installments following the close of the performance period or, in accordance with the procedures
established by the Committee, on a deferred basis. If a Participant ceases to be employed by any
Employer during a performance period because of death, Disability, Retirement or other circumstance
in which the Committee in its discretion finds that a waiver would be appropriate, that
Participant, as determined by

 

 

	 		 	the Committee, may be entitled to a payment of a Performance Award, or a portion thereof, at the
end of the performance period; provided, however, that the Committee may provide for an earlier
payment in settlement of such Performance Award in such amount and under such terms and conditions
as the Committee deems appropriate or desirable. Unless otherwise determined by the Committee,
Termination of Employment prior to the end of any performance period will result in the forfeiture
of the Performance Award, and no payments will be made. A Participant’s rights to any Performance
Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered, hedged
or disposed of in any manner, whether voluntarily or involuntarily, including by operation of law
(other than by will or the laws of descent and distribution).

SECTION 9
— Non-Employee Director Awards

The Board may provide that all or a portion of a Non-Employee Director’s annual retainer and/or
meeting fees, or other forms of compensation, be payable (either automatically or at the election
of a Non-Employee Director) in the form of Options, SARs, Restricted Stock or Restricted Stock
Units. The Board shall determine the terms and conditions of any such Awards, including the terms
and conditions which shall apply upon a termination of the Non-Employee Director’s service as a
member of the Board, and shall have full power and authority in its discretion to administer such
Awards, subject to the terms of the Plan and applicable law.

SECTION 10
— Provisions Applicable to Covered Officers and Performance-Based Awards

Notwithstanding anything in the Plan to the contrary, unless the Committee determines otherwise,
all performance-based Restricted Stock Awards, Restricted Stock Unit Awards or Performance Awards
shall be subject to the terms and provisions of this Section 10.

	 	(A)	 	Restricted Stock Awards, Restricted Stock Unit Awards and Performance Awards to Covered Officers
shall vest or become exercisable upon the attainment of performance targets related to one or more
performance goals selected by the Committee from among the goals specified below. For the purposes
of this Section 10, performance goals shall be limited to one or a combination of the following
Employer, operating unit, division, line of business, department, team or business unit financial
performance measures: stock price; dividends; total shareholder return; earnings per share;
price/earnings ratio; market capitalization; book value; revenues; expenses; loans; deposits;
non-interest income; net interest income; fee income; operating income before or after taxes; net
income before or after taxes; net income before securities transactions; net or operating income
excluding non-recurring charges; return on assets; return on equity; return on capital; cash flow;
credit quality; service quality; market share; customer retention; efficiency ratio; strategic
business objectives, consisting of one or more objectives based on meeting specified cost targets,
business expansion goals and goals relating to acquisitions or divestitures; and, except in the
case of a Covered Officer, any other performance criteria established by the Committee. Each goal
may be expressed on an absolute and/or relative basis, may be based on or otherwise employ
comparisons based on internal targets, the past performance of the Company (consolidated or
unconsolidated) and/or the past or current performance of other companies, the performance of other
companies over one or more years or an index of the performance of other companies, markets or
economic metrics over one or more years, and in the case of earnings-based measures, may use or
employ comparisons relating to capital, shareholders’ equity and/or Shares outstanding, or to
assets or net assets.

	 	(B)	 	The maximum annual number of Shares in respect of which all performance-based Restricted Stock
Awards, Restricted Stock Unit Awards and Performance Awards may be granted to a Participant under
the Plan is 100,000 and the maximum annual amount of any Awards settled in cash to a Participant
under the Plan is $4,000,000.

	 	(C)	 	To the extent necessary to comply with Section 162(m), with respect to performance-based Restricted
Stock Awards, Restricted Stock Unit Awards and Performance Awards, no later than 90 days following

 

 

	 	 	 	the commencement of each performance period (or such other time as may be required or permitted by
Section 162(m)), the Committee shall, in writing, (1) select the performance goal or goals
applicable to the performance period, (2) establish the various targets and bonus amounts which may
be earned for such performance period, and (3) specify the relationship between performance goals
and targets and the amounts to be earned by each Covered Officer for such performance period.
Following the completion of each performance period, the Committee shall certify in writing whether
the applicable performance targets have been achieved and the amounts, if any, payable to Covered
Officers for such performance period. In determining the amount earned by a Covered Officer for a
given performance period, subject to any applicable Award Agreement, the Committee shall have the
right to reduce (but not increase) the amount payable at a given level of performance to take into
account additional factors that the Committee may deem relevant to the assessment of individual or
corporate performance for the performance period.

SECTION 11
— Termination of Employment

The Committee shall have the full power and authority to determine the terms and conditions that
shall apply to any Award upon a Termination of Employment and shall provide such terms in the Award
Agreement. Notwithstanding the foregoing and subject to the limitation contained in the last
sentence of Section 6(c) hereof, upon the Termination of Employment as a result of a Workforce
Reduction of an Employee who has received an Award of Options, such Options shall expire on the
date specified by the Committee at the time of the Termination of Employment, not to exceed five
(5) years after the date of such Termination of Employment.

SECTION 12
— Change in Control

Upon a Change in Control, all outstanding Awards granted prior to January 16, 2007 shall vest,
become immediately exercisable or payable or have all restrictions lifted, as the case may be. Upon
a Qualifying Termination following a Change in Control, all outstanding Awards granted on and
following January 16, 2007 shall vest, become immediately exercisable or payable or have all
restrictions lifted, as the case may be. In addition, an Award Agreement or an individual agreement
between the Participant and the Company may provide for additional benefits to the Participant upon
a Change in Control.

SECTION 13
— Compliance with Section 409A of the Code

	 	(A)	 	The foregoing definitions of “Change in Control” and “Qualifying Termination” shall not be changed
or modified by this Section 13 to the extent that such definitions apply to an Exempt Award, and
such definitions shall not be changed or modified by this Section 13 to the extent relevant to
vesting of a Deferred Compensation Award, rather than payment of a Deferred Compensation Award, and
compliance with Section 409A of such definitions is not otherwise required. In all other cases,
“Change in Control” shall have the meaning set forth in Section 13(B), and a Qualifying Termination
shall not constitute a Qualifying Termination unless such event also constitutes a separation from
service as provided in Section 13(C).

	 	(B)	 	“Change in Control” means the occurrence with respect to the Company of any of the following
events: (i) a change in the ownership of the Company; (ii) a change in the effective control of
the Company; (iii) a change in the ownership of a substantial portion of the assets of the Company.

For purposes of this Section, a change in the ownership of the Company occurs on the date on which
any one person, or more than one person acting as a group, acquires ownership of stock of the
Company that, together with stock held by such person or group constitutes more than 50% of the
total fair market value or total voting power of the stock of the Company. A change in the
effective control of the Company occurs on the date on which either (i) a person, or more than one
person acting as a group, acquires ownership of stock of the Company possessing 30% or more of the
total voting power of the stock of the Company, taking into account all such stock acquired during
the 12-month period ending on the date of the most recent acquisition, or (ii) a majority of the
members of the Company’s Board of Directors is

 

 

replaced during any 12-month period by directors whose appointment or election is not endorsed by a
majority of the members of such Board of Directors prior to the date of the appointment or
election. A change in the ownership of a substantial portion of assets occurs on the date on which
any one person, or more than one person acting as a group, other than a person or group of persons
that is related to the Company, acquires assets from the Company that have a total gross fair
market value equal to or more than 40% of the total gross fair market value of all of the assets of
the Company immediately prior to such acquisition or acquisitions, taking into account all such
assets acquired during the 12-month period ending on the date of the most recent acquisition.

An event constitutes a Change in Control with respect to a Participant only if the Participant
performs services for the Company, or the Participant’s relationship to the Company otherwise
satisfies the requirements of Treasury Regulation Section 1.409A-3(i)(5)(ii).

The determination as to the occurrence of a Change in Control shall be based on objective facts and
in accordance with the requirements of Section 409A of the Code.

	 	(C)	 	Whether a separation from service has occurred shall be determined in accordance with Section 409A
of the Code, and the following rules shall apply:

(i) Except in the case of a Participant on a bona fide leave of absence as provided below, a
Participant is deemed to have incurred a separation from service if the Company and the
Participant reasonably anticipate that the level of services to be performed by the
Participant after a date certain would be reduced to twenty percent (20%) or less of the
average services rendered by the Participant during the immediately preceding thirty-six
(36) month period disregarding periods during which the Participant was on a bona fide
leave of absence.

(ii) A Participant who is absent from work due to military leave, sick leave or other bona
fide leave of absence shall incur a separation from service on the first day immediately
following the later of (a) the six-month anniversary of the commencement of the leave or
(b) the expiration of the Participant’s right, if any, to reemployment or to return to work
under statute or contract.

(iii) For purposes of determine whether a separation from service has occurred, the Company and
its affiliates shall be treated as a single employer. For this purpose, an affiliate means
a corporation, trade or business that, together with the Company, is treated as a single
employer under Section 414(b) or (c) of the Code, except that for the foregoing purposes,
common ownership of at least fifty percent (50%) shall be determinative.

(iv) The Committee specifically reserves the right to determine whether a sale or other
disposition of substantial assets to an unrelated party constitutes a separation from
service with respect to a Participant providing services to the seller immediately prior to
the transaction and providing services to the buyer after the transaction. Such
determination shall be made in accordance with the requirements of Section 409A of the
Code.

	 	(D)	 	Notwithstanding any provision of the Plan to the contrary, with respect to a Deferred Compensation
Award to a Participant who is a Specified Employee as of the date such Participant incurs a
separation from service (as provided in Section 13(C)), payment shall be made no earlier than the
first day of the seventh month following the month in which such separation from service occurs.
On such date, the Participant shall receive all payments that would have been made on or before
such date but for the provisions of this section, and the terms of this section shall not affect
the timing or amount of any payment to be made after such date under other provisions of the Plan,
this Amendment or the Award.

	 	(E)	 	The provisions of this Section 13 shall apply only to Awards made after October 16, 2007.

 

 

SECTION 14
— Amendment, Suspension and Termination

	 	(A)	 	Termination, Suspension or Amendment of the Plan. The Board may amend, alter, modify,
suspend, discontinue, or terminate the Plan or any portion thereof at any time, except that the
Board shall not amend the Plan in violation of law. No such amendment, alteration, modification,
suspension, discontinuation or termination shall materially and adversely affect any right acquired
by any Participant or beneficiary of a Participant under the terms of an Award granted before the
date of such amendment, alteration, modification, suspension, discontinuation or termination,
unless such Participant or beneficiary shall consent.

	 	(B)	 	Termination, Suspension or Amendment of Awards. Subject to the restrictions of Section
6(B) hereof, the Committee may waive any conditions or rights under, amend any terms of, or modify,
alter, suspend, discontinue, cancel or terminate, any Award theretofore granted, prospectively or
retroactively; provided that any such waiver, amendment, modification, alteration, suspension,
discontinuance, cancellation or termination that would materially and adversely affect the rights
of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that
extent be effective without the consent of the affected Participant, holder, or beneficiary;
provided, however, that it shall be conclusively presumed that any adjustment for changes in
capitalization as provided in Section 4 hereof does not materially and adversely affect any such
rights.

	 	(C)	 	Adjustments of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee is hereby authorized to make adjustments in the terms and conditions of, and the criteria
included in, Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in Section 4(B) hereof) affecting the Company, any Subsidiary, or
the financial statements of the Company or any Subsidiary, or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee is required to make such adjustments
pursuant to section 4(B) hereof or whenever the Board, in its sole discretion, determines that such
adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan; provided that, with respect to
Awards intended to comply with Section 162(m), no such adjustment shall be authorized to the extent
that such authority would be inconsistent with having either the Plan or any Awards granted
hereunder meeting the requirements of Section 162(m).

SECTION 15
— General Provisions

	 	(A)	 	Dividend Equivalents. In the sole and complete discretion of the Committee, an Award
(other than an Option) may provide the Participant with dividends or dividend equivalents, payable
in cash, Shares, other securities or other property on a current or deferred basis. All dividend
or dividend equivalents which are not paid currently may, at the Committee’s discretion, accrue
interest, be reinvested into additional Shares, or in the case of dividends or dividend equivalents
credited in connection with Performance Awards, be credited as additional Performance Awards and
paid to the Participant if and when, and to the extent that, payment is made pursuant to such
Award. The total number of Shares available for Awards under Section 4 hereof shall not be reduced
to reflect any dividends or dividend equivalents that are reinvested into additional Shares or
credited as Performance Awards.

	 	(B)	 	No Rights to Awards. No Person shall have any claim to be granted any Award, and there is
no obligation for uniformity of treatment of Employees, Non-Employee Directors, Regional Board
Members or holders or beneficiaries of Awards. The terms and conditions of Awards need not be the
same with respect to each recipient.

	 	(C)	 	Share Certificates. All certificates for Shares or other securities of the Company or any
Subsidiary delivered under the Plan pursuant to any Award or the exercise thereof shall be subject
to such stop transfer orders and other restrictions as the Committee may deem advisable under the
Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which
such Shares or other

 

 

	 	 	 	securities are then listed, and any applicable federal, state or foreign laws, and the Committee
may cause a legend or legends to be put on any such certificates to make appropriate reference to
such restrictions.

	 	(D)	 	Withholding. A Participant may be required to pay to an Employer, and each Employer shall
have the right and is hereby authorized to withhold from any Award, from any payment due or
transfer made under any Award or under the Plan or from any compensation or other amount owing to a
Participant, the amount (in cash, Shares, other securities, other Awards or other property) of any
applicable withholding or other taxes in respect of an Award, its exercise, or any payment or
transfer under an Award or under the Plan and to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such taxes.

	 	(E)	 	Award Agreements. Each Award hereunder shall be evidenced by an Award Agreement that shall
specify the terms and conditions of the Award and any rules applicable thereto. An Award shall be
effective only upon delivery to a Participant, either electronically or by paper means, of an Award
Agreement. In the event of a conflict between the terms of the Plan and any Award Agreement, the
terms of the Plan shall prevail.

	 	(F)	 	No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent
the Company or any Subsidiary from adopting or continuing in effect other compensation
arrangements, which may, but need not, provide for the grant of Options, Restricted Stock, Shares
and other types of Awards provided for hereunder.

	 	(G)	 	No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of any Employer. Further, an Employer may at
any time dismiss a Participant from employment, free from any liability or any claim under the
Plan, unless otherwise expressly provided in the Plan or in any Award Agreement.

	 	(H)	 	No Rights as Shareholder. Subject to the provisions of the applicable Award, no
Participant or holder or beneficiary of any Award shall have any rights as a shareholder with
respect to any Shares to be distributed under the Plan until such Shares are issued to such
Participant, holder or beneficiary and shall not be entitled to any dividend or distribution the
record date of which is prior to the date of such issuance.

	 	(I)	 	Governing Law. The validity, construction, and effect of the Plan and any rules and
regulations relating to the Plan and any Award Agreement shall be determined in accordance with the
laws of the State of Tennessee without giving effect to the conflict of law principles thereof.

	 	(J)	 	Severability. If any provision of the Plan or any Award is, or becomes, or is deemed to
be, invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would
disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to the applicable laws, or if it cannot be
construed or deemed amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person
or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

	 	(K)	 	Other Laws. The Committee may refuse to issue or transfer any Shares or other
consideration under an Award if, acting in its sole discretion, it determines that the issuance or
transfer of such Shares or such other consideration might violate any applicable law or regulation
(including applicable non-U.S. laws or regulations) or entitle the Company to recover the same
under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant,
other holder or beneficiary in connection with the exercise of such Award shall be promptly
refunded to the relevant Participant, holder, or beneficiary. Without limiting the generality of
the foregoing, no Award granted hereunder shall be construed as an offer to sell securities of the
Company, and no such offer shall be outstanding, unless and until the Committee in its sole
discretion has determined that any such offer, if made, would be in compliance with

 

 

	 	 	 	all applicable requirements of the U.S. federal or non-U.S. securities laws and any other laws to
which such offer, if made, would be subject.

	 	(L)	 	No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company or any
Subsidiary and a Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any Subsidiary pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any Subsidiary.

	 	(M)	 	No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

	 	(N)	 	Headings. Headings are given to the Sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

	 	(O)	 	Binding Effect. The terms of the Plan shall be binding upon the Company and its successors
and assigns and the Participants and their legal representatives, and shall bind any successor of
the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the
same manner and to the same extent that the Company would be obligated under this Plan if no
succession had taken place. In the case of any transaction in which a successor would not by the
foregoing provision or by operation of law be bound by this Plan, the Company shall require such
successor expressly and unconditionally to assume and agree to perform the Company’s obligations
hereunder, in the same manner and to the same extent that the Company would be required to perform
if no such succession had taken place.

	 	(P)	 	No Third Party Beneficiaries. Except as expressly provided herein or therein, neither the
Plan nor any Award Agreement shall confer on any person other than the Company and the grantee of
any Award any rights or remedies hereunder or thereunder. The exculpation and indemnification
provisions of Section 3(E) shall inure to the benefit of a Covered Person’s estate and
beneficiaries and legatees.

	 	(Q)	 	Additional Transfer Restrictions. No transfer or an Award by a grantee by will or by laws
of descent and distribution shall be effective to bind the Company unless the Company shall have
been furnished with written notice thereof and an authenticated copy of the will and/or such other
evidence as the Committee may deem necessary to establish the validity of the transfer.

	 	(R)	 	Notwithstanding any provision of the Plan to the contrary, specifically including, but not limited
to, Section 3(A)(v), (vii), (ix) and (x) and Section 14, with respect to any Deferred Compensation
Award:

(i) Neither the Company nor the Committee may accelerate the time or form of payment of any benefit
due to the Participant hereunder unless such acceleration is permitted under Treas. Reg.
§1.409A-3(j)(4); and

(ii) Neither the Company nor the Committee may delay the time for payment of any benefit due to the
Participant hereunder except to the extent permitted under Treas. Reg. §1.409A-2(b)(7).

The provisions of this Subsection (R) shall apply only to Awards made after October 16, 2007.

	 	(S)	 	All references herein to Treasury Regulation §1.409A-1(b)(4) shall be to such regulation as amended
from time to time or to any successor provision. The foregoing provisions of this Plan as amended
are intended to cause the Plan to conform with the requirements of a plan providing only for
short-term deferrals as provided in Treasury Regulation §1.409A-1(b)(4), and the provisions of this
Plan as amended shall be construed in accordance with that intention. If any provision of this
Plan shall be inconsistent or in conflict with any applicable requirements for a short-term
deferral plan, then such requirement shall be

 

 

	 	 	 	deemed to override and supersede the inconsistent or conflicting provision. Any required provision
of a short-term deferral plan that is omitted from this Plan shall be incorporated herein by
reference and shall apply retroactively, if necessary, and be deemed to be a part of this Plan to
the same extent as though expressly set forth herein. The Company will bear no responsibility for
any determination by any other person or persons that the terms, arrangements or administration of
the Plan has given rise to any tax liability under Section 409A of the Code. The provisions of this
Subsection (S) shall apply only to Awards made after October 16, 2007.

	 	(T)	 	Forfeiture and Reimbursement in the Context of a Restatement.

(i) In the event of a material restatement of the Company’s financial statements and to the
extent permitted by governing law, the Company reserves the right (and in certain cases may
have the legal duty) to cause or seek the forfeiture of all or any portion of any
Performance Award held by any Participant, and/or the reimbursement by any Participant to
the Company of all or any portion of any Performance Award paid (as defined in paragraph
(ii) below) to the Participant, for any Performance Award having any performance period
beginning on or after January 1, 2008 where:

	 	a)	 	the amount or payment of the Performance Award was predicated upon the
achievement of financial results of the Company (including any financial reporting
segment or unit) or any Subsidiary that were subsequently the subject of a material
restatement; and
	 
	 	b)	 	the Board or the Committee concludes in good faith that the Participant
engaged in fraud or intentional misconduct that was a material cause of the need for
the restatement; and
	 
	 	c)	 	a lower payment or no payment would have been made to the Participant
based directly or indirectly upon the restated financial results.

(ii) For the purposes of this Section a Performance Award is “paid” when, among other things,
any one or more of the following occur: the Award results in a cash payment to or for the
benefit of the Participant; the Award results in shares issued or delivered to the
Participant; or the Award results in an increase in a deferral account of the Participant
or otherwise results in any credit for the account or benefit of the Participant. “Payment”
may occur, among other things, in connection with an exercise of the Award, the vesting of
the Award, the delivery of share certificates to the Participant, or the crediting of
shares to a Participant’s deferral, brokerage, or other account. The amount “paid” is the
amount of dollars or shares or both that is so paid, issued, delivered, increased, or
credited. Shares and share units “paid” include all proceeds from those shares, including
any cash, stock, or stock unit dividends related to those shares or units, as well as shares or
share units from stock splits related to those shares or units. Any Performance
Award earned and deferred and any Performance Award payments that are earned and deferred
for any reason are subject to this Section as having been “paid,” along with all dividends,
dividend equivalents, interest, shares, and other amounts earned upon or that are proceeds
of the amount or shares deferred. However, if the Participant elects to invest deferred
amounts in a manner that results in a loss, the Participant nevertheless may be required to
reimburse to the Company the full amount of the Performance Award (measured in dollars or
shares, as applicable at the time originally earned) if the conditions of this Section are
met.

(iii) For the purposes of this Section, all amounts paid shall be calculated on a gross basis
regardless of the net amount remitted to the Participant. For example, if a Participant’s
Performance Award pays $1,000 gross and, after withholding for taxes and all other reasons,
$750 net is remitted directly to the Participant in cash, then under this Section the
Company may seek

 

 

reimbursement of all or any portion of the $1,000 gross amount, provided that the
conditions set forth above are met.

(iv) For purposes of this Section, examples of lowering or eliminating a payment based on
restated financial results include, among other things: (a) the payment would have been
lower or eliminated directly by application of a performance goal based in whole or part on
a performance measure that incorporates or is adversely affected by the restated financial
results; and (b) the payment would have been lower or eliminated through the exercise of
discretion by the Committee if the Committee had known the restated financial results at
the time the discretion was exercised.

(v) Any of the Board, the Committee, the Chairman of the Committee, the Chairman of the Board,
or the Chief Executive Officer, acting singly based on any good faith suspicion that the
conditions of this Section above might be met, may halt and suspend payment of any
Performance Award (including payment of any amount deferred in connection with any
Performance Award and any earnings thereon or proceeds thereof) until the Board or
Committee has investigated, considered, and acted upon the matter hereunder. Any such
suspension shall be without interest owed to the Participant if it is later determined that
any payment should be made to the Participant after all.

(vi) All Performance Awards under this Plan having any performance period beginning on or after
January 1, 2008 are granted and paid subject to the conditions, and the risk of later
reimbursement, imposed by this Section. No payment of any Performance Award, whether or not
following a suspension, shall operate to waive or diminish the Company’s right to seek
reimbursement under this Section.

(vii) If the Board acts under this Section, any member of the Board that is a Participant shall
recuse him- or herself from participating in the matter as a Board member.

SECTION 16
— Term of the Plan

	 	(A)	 	Effective Date. The Plan shall be effective as of the date it has been approved by the
Company’s shareholders (the “Effective Date”).

	 	(B)	 	Expiration Date. No new Awards shall be granted under the Plan after the tenth (10th)
anniversary of the Effective Date. Unless otherwise expressly provided in the Plan or in an
applicable Award Agreement, any Award granted hereunder may, and the authority of the Board or the
Committee to amend, alter, modify, adjust, suspend, discontinue, or terminate any such Award or to
waive any conditions or rights under any such Award shall, continue after the authority for grant
of new Awards hereunder has been exhausted.

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