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Exhibit 10.4

INDEMNIFICATION AGREEMENT

 

AGREEMENT, dated as of September 7, 2011, by and between GreenBank, a Tennessee state-chartered banking corporation and a banking subsidiary of Green Bankshares, Inc. (the “Bank”), and [   ] (the “Indemnitee”). 

WHEREAS, it is essential to the Bank to retain and attract as directors and officers the most capable persons available;

WHEREAS, the Indemnitee is a director and/or officer of the Bank;

WHEREAS, the Bank and the Indemnitee recognize the increased risk of litigation and other claims being asserted against directors and officers of companies in today’s environment;

WHEREAS, Section 45-2-211 of the Tennessee Code authorizes the Bank to indemnify and advance expenses to its directors and officers to the extent provided therein, and the Indemnitee serves as a director and/or officer of the Bank, in part, in reliance on such provisions;

WHEREAS, the Bank has determined that its inability to retain and attract as directors and officers the most capable persons would be detrimental to the interests of the Bank, and that Bank therefore should seek to assure such persons that indemnification and insurance coverage will be available in the future; and

WHEREAS, in recognition of the Indemnitee’s need for substantial protection against personal liability in order to enhance the Indemnitee’s continued service to the Bank in an effective manner, the Bank wishes to provide in this Agreement for the indemnification of and the advancing of expenses to the Indemnitee to the fullest extent (whether partial or complete) permitted by law and as set forth in this Agreement, and, to the extent insurance is maintained, for the continued coverage of the Indemnitee under the directors’ and officers’ liability insurance policy of the Bank.

NOW, THEREFORE, in consideration of the premises and of the Indemnitee’s service to the Bank, the mutual agreements herein set forth below, and other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

1.                  Certain Definitions.  In addition to terms defined elsewhere herein, the following terms have the following meanings when used in this Agreement:

(a)                Agreement:  means this Indemnification Agreement, as amended from time to time hereafter.

(b)               Board of Directors:  means the Board of Directors of the Bank.

                                                                                                                                                                                                                                                          

 

 

 

(c)               
Claim:  means any threatened, asserted, pending or completed
civil, criminal, administrative, investigative or other action, suit or
proceeding of any kind whatsoever, including any arbitration or other
alternative dispute resolution mechanism, or any appeal of any kind thereof, or
any inquiry or investigation, whether instituted by or in the right of the
Bank, any governmental agency or any other party, that the Indemnitee in good
faith believes might lead to the institution of any such action, suit or
proceeding, whether civil, criminal, administrative, investigative or other,
including any arbitration or other alternative dispute resolution mechanism.

(d)              
Indemnifiable Expenses:  means (i) all expenses and liabilities,
including judgments, fines, penalties, interest, amounts paid in settlement
with the approval of the Bank (which approval shall not be unreasonably
withheld, conditioned or delayed), counsel fees and disbursements (including,
without limitation, experts’ fees, court costs, retainers, transcript fees,
duplicating, printing and binding costs, as well as telecommunications, postage
and courier charges), and any federal, state, local or foreign taxes imposed on
the Indemnitee as a result of the actual or deemed receipt of any payments
under this Agreement (including any taxes that may be imposed upon the actual
or deemed receipt of payments under this Agreement with respect to the
imposition of federal, state, local or foreign taxes) paid or incurred in
connection with investigating, defending, being a witness in or participating
in (including on appeal, and including therewith any principal, premium,
security for, and other costs relating to any cost bond, supersedeas bond, or
other appeal bond or its equivalent), or preparing to investigate, defend, be a
witness in or participate in, any Claim relating to any Indemnifiable Event by
reason of the fact that Indemnitee is, was or has agreed to serve as a director,
officer, employee or agent of the Bank, or while serving as a director or
officer of the Bank, is or was serving or has agreed to serve on behalf of or
at the request of the Bank as a director, officer, manager, member, partner,
fiduciary, agent, trustee or in a similar capacity of another Person, or by
reason of any action alleged to have been taken or omitted in any such
capacity, whether occurring before, on or after the date of this Agreement (any
such event, an “Indemnifiable Event”), (ii) any liability pursuant to a
loan guaranty (other than a loan guaranty given in a personal capacity) or
otherwise, for any indebtedness of the Bank or any subsidiary of the Bank,
including, without limitation, any indebtedness which the Bank or any
subsidiary of the Bank has assumed or taken subject to, and (iii) any
liabilities which an Indemnitee incurs as a result of acting on behalf of the
Bank (whether as a fiduciary or otherwise) in connection with the operation,
administration or maintenance of an employee benefit plan or any related trust
or funding mechanism (whether such liabilities are in
the form of excise taxes assessed by the United States Internal Revenue
Service, penalties assessed by the United States Department of Labor,
restitutions to such a plan or trust or other funding mechanism or to a
participant or beneficiary of such plan, trust or other funding mechanism, or
otherwise).

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(e)               
Indemnitee-Related Entities:  means any corporation, limited
liability company, partnership, joint venture, trust, employee benefit plan or
other enterprise (other than the Bank or any other corporation, limited
liability company, partnership, joint venture, trust, employee benefit plan or
other enterprise Indemnitee has agreed, on behalf of the Bank or at the Bank’s
request, to serve as a director, officer, employee or agent and which service
is covered by the indemnity described in this Agreement) from whom an
Indemnitee may be entitled to indemnification or advancement of expenses with
respect to which, in whole or in part, the Bank may also have an
indemnification or advancement obligation (other than as a result of
obligations under an insurance policy).

(f)               
“Independent Counsel” means a law firm, or a member of a law
firm, with significant experience in matters of corporation law as applicable
to Tennessee and neither presently is, nor in the past five years has been,
retained to represent: (i) the Bank or Indemnitee in any matter material to
either such party, or (ii) any other party to the Claim giving rise to a claim
for indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Bank or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement. 

(g)              
Jointly Indemnifiable Claim:  means any Claim for which the
Indemnitee shall be entitled to indemnification from both an Indemnitee-Related
Entity and the Bank pursuant to applicable law, any indemnification agreement
or the charter, bylaws, partnership agreement, operating agreement, certificate
of formation, certificate of limited partnership or comparable organizational
documents of the Bank and an Indemnitee-Related Entity.

(h)              
Loss:  means all losses, Claims, damages, fines, or penalties,
including, without limitation, any legal or other expenses (including, without
limitation, any legal fees, judgments, fines, appeal bonds or related expenses)
incurred in connection with defending, investigating or settling of any Claim,
fine, penalty or similar action.

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(i)                
Person:  means any individual, corporation, firm, partnership,
joint venture, limited liability company, estate, trust, business association,
organization, governmental entity or other entity.

2.                 
Basic Indemnification Arrangement; Advancement of
Indemnifiable Expenses. 

(a)               
In the event that the Indemnitee was, is or becomes a party to, or
witness or other participant in, or is threatened to be made, or otherwise
might be involved as, a party to, or witness or other participant in, a Claim
(including one pending on or before the date of this Agreement) by reason of
(or arising in part out of) an Indemnifiable Event, the Bank shall indemnify
the Indemnitee, or cause such Indemnitee to be indemnified, to the fullest
extent permitted by the laws of the State of Tennessee in effect on the date
hereof and as amended from time to time, and shall hold the Indemnitee harmless
from and against all Losses that arise by reason of (or arising in part out of)
an Indemnifiable Event; provided, however, that no change in the
laws of the State of Tennessee shall have the effect of reducing the benefits
available to the Indemnitee hereunder based on the laws of the State of
Tennessee as in effect on the date hereof or as such benefits may improve as a
result of amendments after the date hereof.  The rights of the Indemnitee
provided in this Section 2 shall include, without limitation, the rights set
forth in the other sections of this Agreement.  Payments of Indemnifiable
Expenses shall be made as soon as practicable but in any event no later than
twenty (20) calendar days after written demand is presented to the Bank,
against any and all Indemnifiable Expenses.

(b)              
Upon request by the Indemnitee, the Bank shall advance, or cause to be
advanced, any and all Indemnifiable Expenses incurred by the Indemnitee (an “Expense
Advance”) on the terms and subject to the conditions of this Agreement, as
soon as practicable but in any event no later than twenty (20) calendar days
after written demand, together with supporting documentation, is presented to
the Bank.  The Bank shall, in accordance with such request (but without
duplication), either (i) pay, or cause to be paid, such Indemnifiable Expenses
on behalf of the Indemnitee, or (ii) reimburse, or cause the reimbursement
of, the Indemnitee for such Indemnifiable Expenses.  The Indemnitee’s right to
an Expense Advance is absolute and shall not be subject to any condition that
the Board of Directors shall not have determined that the Indemnitee is not
entitled to be indemnified under applicable law.  However, the obligation of
the Bank to make an Expense Advance pursuant to this Section 2(b) shall be
subject to the condition that, if, when and to the extent that a final judicial
determination is made (as to which all rights of appeal therefrom have been
exhausted or lapsed) that the Indemnitee is not entitled to be so indemnified
under applicable law or this Agreement, the Bank shall be entitled to be
reimbursed by the Indemnitee (who hereby agrees to reimburse the Bank) for all
such amounts theretofore paid (it being understood and agreed that the
foregoing agreement by the Indemnitee shall be deemed to satisfy any
requirement that the Indemnitee provide the Bank with an undertaking to repay
any Expense Advance if it is ultimately determined that the Indemnitee is not
entitled to indemnification under applicable law).  Any undertaking delivered
by the Indemnitee hereunder, if any, to repay any Expense Advance shall be unsecured
and interest-free.  

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(c)               
Notwithstanding anything in this Agreement to the contrary, the
Indemnitee shall not be entitled to indemnification or advancement of
Indemnifiable Expenses pursuant to this Agreement in connection with any Claim
initiated by the Indemnitee unless (i) the Bank has joined in or the Board of
Directors of the Bank has authorized or consented to the initiation of any part
of such Claim; or (ii) the Claim is one to enforce the Indemnitee’s rights
under this Agreement (including an action pursued by the Indemnitee to secure a
determination that the Indemnitee should be indemnified under applicable law).

(d)              
The indemnification obligations of the Bank under Section 2(a) shall be
subject to the condition that Independent Counsel shall not have determined
that the indemnification of the Indemnitee is not proper in the circumstances
because the Indemnitee is not entitled to be indemnified under applicable law. 
If Independent Counsel determines that the Indemnitee is not entitled to be
indemnified in whole or in part under applicable law, the Indemnitee shall have
the right to commence litigation in any court in the State of Tennessee having
subject matter jurisdiction thereof and in which venue is proper, seeking an
initial determination by the court or challenging any such determination by
Independent Counsel or any aspect thereof, including the legal or factual bases
therefor, and the Bank hereby consents to service of process and to appear in
any such proceeding.  If the Indemnitee commences legal proceedings in a court
of competent jurisdiction to secure a determination that the Indemnitee should
be indemnified under applicable law, any determination made by Independent
Counsel that the Indemnitee is not entitled to be indemnified under applicable
law shall not be binding, the Indemnitee shall continue to be entitled to
receive Expense Advances, and the Indemnitee shall not be required to reimburse
the Bank for any Expense Advance, until a final judicial determination is made
in the Claim (as to which all rights of appeal therefrom have been exhausted or
lapsed) that the Indemnitee is not entitled to be so indemnified under
applicable law.  Any determination by Independent Counsel otherwise shall be
conclusive and binding on the Bank and the Indemnitee.

(e)               
The Independent Counsel making any determination under this Agreement
shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board of Directors), and Indemnitee shall give written
notice to the Bank advising it of the identity of the Independent Counsel so
selected and certifying that the Independent Counsel so selected meets the
requirements of “Independent Counsel” as defined in Section 1(d) of this
Agreement.  The Bank may, within ten (10) days after such written notice of
selection shall have been received, deliver to the Indemnitee a written
objection to such selection; provided, however, that such objection may be
asserted only on the ground that the Independent Counsel so selected does not
meet the requirements of “Independent Counsel” as defined in Section 1(d) of
this Agreement, and the objection shall set forth with particularity the
factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Independent Counsel.  If a written objection is
made and substantiated, the Independent Counsel selected may not serve as
Independent Counsel unless and until such objection is withdrawn or a court has
determined that such objection is without merit.  The Bank shall pay any and
all reasonable fees and expenses of Independent Counsel incurred by such
Independent Counsel in connection with acting pursuant to Section 2(d) hereof,
and the Bank shall pay all reasonable fees and expenses
incident to the procedures of this Section 2(e).

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(f)               
To the extent that the Indemnitee has been successful on the merits or
otherwise in defense of any or all Claims relating in whole or in part to an
Indemnifiable Event or in defense of any issue or matter therein, including
dismissal without prejudice, the Indemnitee shall be indemnified against all
Indemnifiable Expenses actually and reasonably incurred in connection
therewith, notwithstanding an earlier determination by Independent Counsel that
the Indemnitee is not entitled to indemnification under applicable law.  For
purposes of this Agreement, and without limitation, the termination of any
Claim other than by adverse judgment against Indemnitee (including, without
limitation, by settlement or dismissal, with or without prejudice), shall be
deemed to be a successful result as to such Claim.

(g)              
Notwithstanding anything to the contrary herein, the Bank shall not be
obligated pursuant to the terms of this Agreement to indemnify Indemnitee for
any acts or omissions or transactions from which a director, officer, employee
or agent may not be relieved of liability under applicable law.

(h)              
Notwithstanding any other provisions contained herein, this Agreement
and the rights and obligations of the parties hereto are subject to the
requirements, limitations and prohibitions set forth in state and federal laws,
rules, regulations, and orders regarding indemnification and prepayment of
expenses, legal or otherwise, and liabilities, including, without limitation
Section 45-2-211 of the Tennessee Code, Section 18(k) of the Federal Deposit
Insurance Act and Part 359 of the Federal Deposit Insurance Corporation’s Rules
and Regulations and any successor regulations thereto.

3.                 
Indemnification for Additional Expenses.  The Bank shall
indemnify, or cause the indemnification of, the Indemnitee against any and all
Indemnifiable Expenses and, if requested by the Indemnitee, shall advance such
Indemnifiable Expenses to the Indemnitee subject to and in accordance with
Section 2, which are incurred by the Indemnitee in connection with any action
brought by the Indemnitee, the Bank or any other Person with respect to the
Indemnitee’s right to: (i) indemnification, contribution or an Expense
Advance by the Bank under this Agreement or any provision of the Bank’s
Charter, as amended (the “Charter”) and/or the Bank’s bylaws, as amended
(the “Bylaws”) and/or (ii) recovery under any directors’ and
officers’ liability insurance policies maintained by the Bank, regardless of
whether the Indemnitee ultimately is determined to be entitled to such
indemnification, Expense Advance or insurance recovery, as the case may be;
provided that the Indemnitee shall be required to reimburse such Indemnifiable
Expenses in the event that a final judicial determination is made in the Claim
(as to which all rights of appeal therefrom have been exhausted or lapsed) that
such action brought by the Indemnitee, or the defense by the Indemnitee of an
action brought by the Bank or any other Person, as applicable,  was frivolous
or in bad faith.

4.                 
Partial Indemnity, Etc.  If the Indemnitee is entitled
under any provision of this Agreement to indemnification by the Bank for some
or a portion of the Indemnifiable Expenses in respect
of a Claim but not, however, for all of the total amount thereof, the Bank
shall nevertheless indemnify the Indemnitee for the portion thereof to which
the Indemnitee is entitled.

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5.                 
Burden of Proof.  In connection with any determination by
Independent Counsel, any court or otherwise as to whether the Indemnitee is
entitled to be indemnified hereunder, Independent Counsel or the court shall
presume that the Indemnitee has satisfied the applicable standard of conduct
and is entitled to indemnification, and the burden of proof shall be on the
Bank or its representative to establish, by clear and convincing evidence, that
the Indemnitee is not so entitled.

6.                 
Reliance as Safe Harbor.  The Indemnitee shall be entitled
to indemnification for any action or omission to act undertaken (a) in
good faith reliance upon the records of the Bank, including its financial
statements, or upon information, opinions, reports or statements furnished to
the Indemnitee by the officers or employees of the Bank or any of its
subsidiaries in the course of their duties, or by committees of the Board of
Directors, or by any other Person as to matters the Indemnitee reasonably
believes are within such other Person’s professional or expert competence, or
(b) on behalf of the Bank in furtherance of the interests of the Bank in
good faith in reliance upon, and in accordance with, the advice of legal
counsel or accountants, provided such legal counsel or accountants were
selected with reasonable care by or on behalf of the Bank.  In addition, the
knowledge and/or actions, or failures to act, of any other director, officer,
agent or employee of the Bank shall not be imputed to the Indemnitee for
purposes of determining the right to indemnity hereunder.

7.                 
No Other Presumptions.  For purposes of this Agreement,
the termination of any Claim, action, suit or proceeding, by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a
plea of nolo  contendere or its equivalent, shall not create a
presumption that the Indemnitee did not meet any particular standard of conduct
or have any particular belief or that a court has determined that
indemnification is not permitted by applicable law.  In addition, neither the
failure of Independent Counsel to have made a determination as to whether the
Indemnitee has met any particular standard of conduct or had any particular
belief, nor an actual determination by Independent Counsel that the Indemnitee
has not met such standard of conduct or did not have such belief, prior to the
commencement of legal proceedings by the Indemnitee to secure a judicial
determination that the Indemnitee should be indemnified under applicable law
shall be a defense to the Indemnitee’s claim or create a presumption that the
Indemnitee has not met any particular standard of conduct or did not have any
particular belief.

8.                 
Nonexclusivity, Etc.  The rights of the Indemnitee
hereunder shall be in addition to any other rights the Indemnitee may have
under the Charter and Bylaws, the laws of the State of Tennessee, or
otherwise.  To the extent that a change in the laws of the State of Tennessee
or the interpretation thereof (whether by statute or judicial decision) permits
greater indemnification by agreement than would then otherwise be afforded
under the Charter and Bylaws, it is the intent of the parties hereto that the
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change.  To the extent that there is a conflict or
inconsistency between the terms of this Agreement and the Charter or Bylaws, it
is the intent of the parties hereto that the Indemnitee shall enjoy the greater
benefits regardless of whether contained herein, in the Charter or Bylaws.  No
amendment or alteration of the Charter or Bylaws or any other agreement shall
adversely affect the rights provided to Indemnitee under this Agreement.

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9.                 
Liability Insurance.  The Bank shall use its reasonable
best efforts to purchase and maintain a policy or policies of insurance with
reputable insurance companies with A.M. Best ratings of “A” or better,
providing Indemnitee with coverage for any liability asserted against, or
incurred by, Indemnitee or on Indemnitee’s behalf by reason of the fact that
Indemnitee is or was or has agreed to serve as a director, officer, employee or
agent of the Bank, or while serving as a director or officer of the Bank, is or
was serving or has agreed to serve on behalf of or at the request of the Bank
as a director, officer, employee or agent (which, for purposes hereof, shall
include a trustee, fiduciary, partner or manager or similar capacity) of
another corporation, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise, or arising out of
Indemnitee’s status as such, whether or not the Bank would have the power to
indemnify Indemnitee against such liability under the provisions of this Agreement. 
Such insurance policies shall have coverage terms and policy limits at least as
favorable to Indemnitee as the insurance coverage provided to any other
director or officer of the Bank.  If the Bank has such insurance in effect at
the time the Bank receives from Indemnitee any notice of the commencement of an
action, suit or proceeding, the Bank shall give prompt notice of the
commencement of such action, suit or proceeding to the insurers in accordance
with the procedures set forth in the policy.  The Bank shall thereafter take
all necessary or desirable action to cause such insurers to pay, on behalf of
Indemnitee, all amounts payable as a result of such proceeding in accordance
with the terms of such policy.

10.             
Period of Limitations.  No legal action shall be brought
and no cause of action shall be asserted by or in the right of the Bank against
the Indemnitee, the Indemnitee’s spouse, heirs, executors or personal or legal
representatives after the expiration of two years from the date of accrual of such
cause of action, and any claim or cause of action of the Bank shall be
extinguished and deemed released unless asserted by the timely filing of a
legal action within such two-year period; provided, however, that if any
shorter period of limitations is otherwise applicable to any such cause of
action such shorter period shall govern.

11.             
Amendments, Etc.  No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing by both of the
parties hereto.  No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provisions hereof (whether or
not similar) nor shall such waiver constitute a continuing waiver.  In the
event the Bank or any of its subsidiaries enters into an indemnification
agreement with another director, officer, agent, fiduciary or manager of the
Bank or any of its subsidiaries containing a term or terms more favorable to
the indemnitee than the terms contained herein (as determined by the
Indemnitee), the Indemnitee shall be afforded the benefit of such more
favorable term or terms and such more favorable term or terms shall be deemed
incorporated by reference herein as if set forth in
full herein.  As promptly as practicable following the execution by the Bank or
the relevant subsidiary of each indemnity agreement with any such other
director, officer or manager (i) the Bank shall send a copy of the indemnity
agreement to the Indemnitee, and (ii) if requested by the Indemnitee, the Bank
shall prepare, execute and deliver to the Indemnitee an amendment to this
Agreement containing such more favorable term or terms.

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12.             
Subrogation.  Subject to Section 13, in the event of
payment by the Bank under this Agreement, the Bank shall be subrogated to the
extent of such payment to all of the rights of recovery of the Indemnitee with
respect to any insurance policy.  Indemnitee shall execute all papers
reasonably required and shall do everything that may be reasonably necessary to
secure such rights, including the execution of such documents necessary to
enable the Bank effectively to bring suit to enforce such rights.  The Bank
shall pay or reimburse all expenses actually and reasonably incurred by
Indemnitee in connection with such subrogation.

13.             
Jointly Indemnifiable Claims.  Given that certain Jointly
Indemnifiable Claims may arise due to the relationship between the
Indemnitee-Related Entities and the Bank and the service of the Indemnitee as a
director and/or officer of the Bank at the request of the Indemnitee-Related
Entities, the Bank acknowledges and agrees that the Bank shall be fully and
primarily responsible for the payment to the Indemnitee in respect of
indemnification and advancement of Indemnifiable Expenses in connection with
any such Jointly Indemnifiable Claim, pursuant to and in accordance with the
terms of this Agreement, irrespective of any right of recovery the Indemnitee
may have from the Indemnitee-Related Entities.  Under no circumstance shall the
Bank be entitled to any right of subrogation or contribution by the
Indemnitee-Related Entities and no right of recovery the Indemnitee may have
from the Indemnitee-Related Entities shall reduce or otherwise alter the rights
of the Indemnitee or the obligations of the Bank hereunder.  In the event that
any of the Indemnitee-Related Entities shall make any payment to the Indemnitee
in respect of indemnification or advancement of expenses with respect to any
Jointly Indemnifiable Claim, the Indemnitee-Related Entity making such payment
shall be subrogated to the extent of such payment to all of the rights of
recovery of the Indemnitee against the Bank under the terms of this Agreement,
and the Indemnitee shall execute all papers reasonably required and shall do
all things that may be reasonably necessary to secure such rights, including
the execution of such documents as may be necessary to enable the
Indemnitee-Related Entities effectively to bring suit to enforce such rights. 
Each of the Indemnitee-Related Entities shall be third-party beneficiaries with
respect to this Section 13, entitled to enforce this Section 13 against the
Bank as though each such Indemnitee-Related Entity were a party to this
Agreement.

14.             
No Duplication of Payments.  Subject to Section 13 hereof,
the Bank shall not be liable under this Agreement to make any payment in
connection with any Claim made against the Indemnitee to the extent the
Indemnitee has otherwise actually received payment (under any insurance policy,
any provision of the Bank’s Charter and Bylaws, or otherwise) of the amounts otherwise
indemnifiable hereunder.

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15.             
Defense of Claims.  The Bank shall be entitled to
participate in the defense of any Claim relating to an Indemnifiable Event or
to assume the defense thereof, with counsel reasonably satisfactory to the
Indemnitee; provided  that if the Indemnitee reasonably believes, after
consultation with counsel selected by the Indemnitee, that (i) the use of
counsel chosen by the Bank to represent the Indemnitee would present such
counsel with an actual or potential conflict of interest or such a conflict is
likely to arise, (ii) the named parties in any such Claim (including any
impleaded parties) include both (A) the Bank or any subsidiary of the Bank and
(B) the Indemnitee, and the Indemnitee concludes that there may be one or more
legal defenses or counterclaims available to him that are different from or in
addition to those available to the Bank or any subsidiary of the Bank or (iii)
any such representation by such counsel would be precluded under the applicable
standards of professional conduct then prevailing or the Bank has failed to
timely assume such defense, then the Indemnitee shall be entitled to retain
separate counsel (but not more than one law firm plus, if applicable, local
counsel in respect of any particular Claim) at the Bank’s expense.  The Bank
shall not be entitled, without the consent of the Indemnitee, to assume the
defense of any claim brought by the Bank.  The Bank shall not be liable to the
Indemnitee under this Agreement for any amounts paid in settlement of any Claim
relating to an Indemnifiable Event effected without the Bank’s prior written
consent.  The Bank shall not, without the prior written consent of the
Indemnitee, effect any settlement of any Claim relating to an Indemnifiable
Event which the Indemnitee is or could have been a party unless such settlement
includes a complete and unconditional release of the Indemnitee from all
liability on all claims that are the subject matter of such Claim and does not
impose any expense, judgment, fine, penalty or limitation on the Indemnitee. 
Neither the Bank nor the Indemnitee shall unreasonably withhold its or his
consent to any proposed settlement; provided  that the Indemnitee may
withhold consent to any settlement that does not provide a complete and
unconditional release of the Indemnitee.  To the fullest extent permitted by Tennessee law, the Bank’s assumption of the defense of a Claim pursuant to this Section 15
will constitute an irrevocable acknowledgement by the Bank that any
Indemnifiable Expenses incurred by or for the account of Indemnitee incurred in
connection therewith are indemnifiable by the Bank under Section 2 of this
Agreement.

16.             
Binding Effect, Etc.  This Agreement shall be binding upon
and inure to the benefit of and be enforceable by the parties hereto and their
respective successors, (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Bank), assigns, spouses, heirs, executors and personal and
legal representatives.  The Bank shall require and cause any successor(s)
(whether directly or indirectly, whether in one or a series of transactions,
and whether by purchase, merger, consolidation, or otherwise) to all or a
significant portion of the business and/or assets of the Bank and/or its
subsidiaries (on a consolidated basis), by written agreement in form and
substance reasonably satisfactory to the Indemnitee, expressly to assume and
agree to perform this Agreement in the same manner and to the same extent that
the Bank would be required to perform if no such succession had taken place;
provided that no such assumption shall relieve the Bank from its obligations
hereunder and any obligations shall thereafter be joint and several.  This
Agreement shall continue in effect regardless of whether the Indemnitee
continues to serve as a director or officer of the Bank and/or on behalf of or
at the request of the Bank as a director, officer,
manager, member, partner, fiduciary, trustee or in a similar capacity of
another Person.  Except as provided in this Section 16, neither party shall,
without the prior written consent of the other, assign or delegate this
Agreement or any rights or obligations hereunder.

10

 

 

 

 

17.             
Contribution.  In order to provide for just and equitable
contribution in circumstances in which the indemnification provided for herein
is held by a court of competent jurisdiction to be unavailable to Indemnitee in
whole or in part, it is agreed that, in such event, the Bank shall, to the
fullest extent permitted by law, contribute to the payment of Indemnitee’s
costs, charges and expenses (including attorneys’ fees), judgments, fines and
amounts paid in settlement with respect to any Claim, in an amount that is just
and equitable in the circumstances, taking into account, among other things,
contributions by other directors and officers of the Bank or others pursuant to
indemnification agreements or otherwise; provided, that, without limiting the
generality of the foregoing, such contribution shall not be required where such
holding by the court is due to (i) the failure of Indemnitee to meet any
required standard of conduct set forth in this Agreement, or (ii) any
limitation on indemnification set forth in Section 2(c) hereof.

18.             
Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever, (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, all portions of any
paragraph of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and (b) to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, all portions of any paragraph of this Agreement containing
any such provision held to be invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifested by the provision held
invalid, illegal or unenforceable and to give effect to the terms of this
Agreement.

19.             
Enforcement, Specific Performance, Etc.  The Bank shall be
precluded from asserting in any judicial proceeding that the procedures and
presumptions of this Agreement are not valid, binding and enforceable. The Bank
agrees that its execution of this Agreement shall constitute a stipulation by
which it shall be irrevocably bound in any court of competent jurisdiction in
which a proceeding by Indemnitee for enforcement of his rights hereunder shall
have been commenced, continued or appealed, that its obligations set forth in
this Agreement are unique and special, and that failure of the Bank to comply
with the provisions of this Agreement will cause irreparable and irremediable
injury to Indemnitee, for which a remedy at law will be inadequate. As a
result, in addition to any other right or remedy Indemnitee may have at law or
in equity with respect to breach of this Agreement, Indemnitee shall be entitled
to injunctive or mandatory relief directing specific performance by the Bank of
its obligations under this Agreement.

20.             
Notices.  All notices, requests, consents and other
communications hereunder to any party shall be deemed to be sufficient if
contained in a written document delivered in person or sent by telecopy,
nationally recognized overnight courier or personal
delivery, addressed to such party at the address set forth below or such other
address as may hereafter be designated on the signature pages of this Agreement
or in writing by such party to the other parties:

11

 

 

 

 

(a)               
If to the Bank, to:  

Green Bankshares, Inc.

100 North Main Street

Greeneville, Tennessee 37743

Attn: Stephen M. Rownd

Telephone: (423) 278-3323

Fax: (866) 550-2336

with copies to (which copies alone shall not constitute
notice):

North American Financial Holdings, Inc.

4725 Piedmont Row Drive

Charlotte, North Carolina 28210

Attn: Christopher G. Marshall 

Telephone:  704-554-5901

Fax: 704-964-2442

and

Wachtell, Lipton, Rosen & Katz

  51 West 52nd Street

  New York, New York 10019

Attn: David E. Shapiro

Telephone:  (212) 403-1000    

Fax:  (212) 403-2000

 

(b)              
If to the Indemnitee, to the address set forth on Annex A hereto.

All such notices, requests, consents and other communications
shall be deemed to have been given or made if and when received (including by
overnight courier) by the parties at the above addresses or sent by electronic
transmission, with confirmation received, to the telecopy numbers specified
above (or at such other address or telecopy number for a party as shall be
specified by like notice).  Any notice delivered by any party hereto to any
other party hereto shall also be delivered to each other party hereto
simultaneously with delivery to the first party receiving such notice.

21.             
Counterparts.  This Agreement may be executed in
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same agreement.  Only
one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this
Agreement.

12

 

 

 

 

22.             
Headings.  The headings of the sections and paragraphs of
this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction or
interpretation thereof.

23.             
Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Tennessee applicable to contracts made and to be performed in such state without giving
effect to the principles of conflicts of laws.

 

[SIGNATURE PAGE
FOLLOWS] 

 

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

GREENBANK

By:  __________________________
Name:
Title:

INDEMNITEE:

                                                                      
[●] 

                                                                                                                                                                                                                                                          

 

 

 

Annex A

Name and Business Address.

                                                            
                                                            
                                                            
Attn:                                                     
Tel:                                                       
Fax:EXHIBIT 10.1

                   AMENDMENT NO. 1 TO SECURED PROMISSORY NOTE

      This Amendment No.1 (this "Amendment") dated as of September 6, 2011 to
that certain Secured Promissory Note dated May 9, 2011 (the "Note"), by and
between PASSUR Aerospace, Inc. (the "Company") and G.S. Beckwith Gilbert (the
"Lender").

                              W I T N E S S E T H

      WHEREAS, the Company and the Lender are parties to the Note; and

      WHEREAS, the Company and the Lender desire and consent to amend the Note
as described herein.

      NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the receipt and sufficiency of which is hereby acknowledged by
all of the parties, the parties hereto agree as follows:

      1. Effective as of the date hereof, the Note is hereby amended as follows:

        A.  The first paragraph of the Note shall be amended and restated in its
            entirety to read as follows:

            "(a) For value received, PASSUR Aerospace, Inc.(formerly MEGADATA
            CORPORATION), a New York corporation (hereinafter referred to as
            "Borrower"), hereby unconditionally PROMISES TO PAY to the order of
            G.S. Beckwith Gilbert ("Lender"), or his permitted assigns, to an
            account designated by Lender, in lawful money of the United States
            of America and in immediately available funds, the principal sum of
            Four million eight hundred fourteen thousand eight hundred eighty
            dollars ($4,814,880) together with interest on the unpaid principal
            amount of this Note. From and after September 6, 2011, interest on
            the Note shall accrue at the annual rate of six percent (6%),
            payable in cash. Interest payments shall be made annually on October
            31 of each year."

        2.  This Amendment shall be construed, performed and enforced in
            accordance with, and governed by, the internal laws of the State of
            New York, without giving effect to the principles of conflicts of
            law thereof.

        3.  Except as otherwise specifically set forth herein, all of the terms
            and provisions of the Note shall remain in full force and effect.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed the day and year first set forth above.

PASSUR AEROSPACE, INC.

By:    /s/ Jeffrey P. Devaney
       ----------------------
Name:  Jeffrey. P. Devaney
Title: Chief Financial Officer

LENDER:

By: /s/ G.S. Beckwith Gilbert
    -------------------------
    G.S. Beckwith Gilbert

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