Document:

EX-10.2

 

Exhibit 10.2

FIRST HORIZON NATIONAL CORPORATION

2000 EMPLOYEE STOCK OPTION PLAN

(Adopted October 20, 1999; Amended and Restated April 14, 2008)

1. Purpose. The 2000 Employee Stock Option Plan (the “Plan”) of First Horizon National Corporation
and any successor thereto (the “Company”), is designed to enable employees of the Company and its
subsidiaries to obtain a proprietary interest in the Company, and thus to share in the future
success of the Company’s business. Accordingly, the Plan is intended as a further means not only
of attracting and retaining outstanding personnel, but also of promoting a closer identity of
interest between employees and shareholders.

2. Definitions. As used in the Plan, the following terms shall have the respective meanings set
forth below:

(a) “Cause” shall mean (i) a grantee’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 grantee in any conduct which constitutes an employment
disqualification under applicable law (including statutory disqualification as
defined under the Exchange Act); (iii) a grantee’s failure to perform his or her
duties to the Company or its Subsidiaries; (iv) a grantee’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 grantee’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 grantee 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 grantee 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.

	 	(b)	 	“Change in Control” means the occurrence of any one 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” (as defined under Section 3(a)(9) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and 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 entity in
which the Company directly or indirectly beneficially owns more than 50% of the
voting securities or interests (a “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));

     (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 occur solely because any person acquires beneficial ownership of more than
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.

	 	(c)	 	“Committee” means the Stock Option Committee or any successor committee
designated by the Board of Directors to administer this Plan, as provided in Section
5(a) hereof.

(d) “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
this Plan is adopted or amended.

(e) “Disability” shall mean, unless otherwise defined in the applicable option
agreement or grant notice, 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 grantee at the onset of such total and permanent disability.

 

 

	 	(f)	 	“Early Retirement” means termination of employment after an employee has
fulfilled all service requirements for an early pension, and before his or her Normal
Retirement Date, under the terms of the First Horizon National Corporation Pension
Plan, as amended from time to time.

(g) “Employer” shall mean the Company or any Subsidiary that employs a grantee of an
option under this Plan.

(h) “Good Reason” shall mean, following notice given by the grantee of an option to
the Company:

7. an adverse change in the grantee’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 grantee’s status, title or position as a result of a
diminution in the grantee’s duties or responsibilities, or the assignment to the
grantee 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 grantee from, or any failure to reappoint or reelect the grantee to,
such position (except in connection with the termination of the grantee’s employment
for Cause, Disability or Retirement or as a result of the grantee’s death and except
by the grantee other than for Good Reason);

8. a reduction by the Company in the grantee’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;

9. the failure by the Company to provide the grantee with Compensation Plans that
provide the grantee 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

10. the Company’s requiring the grantee to be based at an office that is greater
than 25 miles from where the grantee’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 grantee shall not constitute Good Reason, and (b) no action
shall constitute a Good Reason if the grantee has acknowledged to the Company in
writing that a Good Reason will not arise from that action.

(i) “Qualifying Termination” shall mean a termination of the employment of a grantee
with the Company resulting from any of the following:

11. a termination of the employment or engagement of a grantee 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
grantee’s death; or

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

	 	(j)	 	“Quota” means the portion of the total number of shares subject to an option
which the grantee of the option may purchase during the several periods of the term of
the option (if the option is subject to quotas), as provided in Section 8(b) hereof.
	 
	 	(k)	 	“Retirement” means termination of employment after an employee has fulfilled
all service requirements for a pension under the terms of the First Horizon National
Corporation Pension Plan, as amended from time to time.
	 
	 	(l)	 	“Subsidiary” means a subsidiary corporation as defined in Section 425 of the
Internal Revenue Code.
	 
	 	(m)	 	“Successor” means the legal representative of the estate of a deceased grantee
or the person or persons who shall acquire the right to exercise an option or related
SAR by bequest or inheritance or by reason of the death of the grantee, as provided in
Section 10 hereof.

 

 

	 	(n)	 	“Term of the Option” means the period during which a particular option may be
exercised, as provided in Section 8(a) hereof.
	 
	 	(o)	 	“Three months after cessation of employment” means 5:00 p.m Memphis time on the
date corresponding numerically with the date reflected in the Company=s records
as the effective date of termination of employment in the third month following the
month in which the effective date of termination of employment occurs (or in the event
that such third following month does not have a date so corresponding, then the last
day of the third following month). Also, if the last day of such period is not a
business day, then the period will end at 5:00 p.m. Memphis time on the last business
day of such period.
	 
	 	(p)	 	“Five years after (an event occurring on day x)” and “five years from (an event
occurring on day x)” means 5:00 p.m. on the date in the fifth year following the year
in which day x occurred corresponding numerically with day x (or in the event that day
x is February 29, then February 28 in the fifth following year). Also, if the last day
of such period is not a business day, then the period will end at 5:00 p.m. Memphis
time on the last business day of such period.
	 
	 	(q)	 	“Voluntary Resignation” means any termination of employment that is not
involuntary and that is not the result of the employee’s death, Disability, Early
Retirement or Retirement.
	 
	 	(r)	 	“Workforce Reduction” means any termination of employment of one or more
employees of the Company or one or more of its subsidiaries 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, however,
in the case of any such event (whether the termination of employment was a result of a
discontinuation, a realignment, or another event), that the Committee or the Board of
Directors has designated the event as a “workforce reduction” for purposes of this
Plan.

3. Effective Date of Plan. The Plan shall become effective upon approval at a shareholder meeting
by the holders of a majority of the shares of Company common stock present, or represented, at such
meeting and entitled to vote on the Plan. No options may be granted under the Plan after the month
and day in the year 2010 corresponding to the day before the month and day on which the Plan
becomes effective. The term of options granted on or before such date may, however, extend beyond
that date, but no incentive stock options may be granted which are exercisable after the expiration
of ten (10) years after the date of the grant.

4. Shares Subject to the Plan.

	 	(a)	 	The Company may grant options under the Plan authorizing the issuance of no
more than 1,500,000 shares of its $0.625 par value (adjusted for any stock splits)
common stock, which will be provided from shares purchased in the open market or
privately or by the issuance of previously authorized but unissued shares. For
purposes of computing the maximum number of shares that may be issued under the Plan,
if shares are tendered in payment of all or a portion of the exercise price, then the
number of shares issued in connection with such exercise is the number of shares
subject to option that was exercised, net of the number tendered in payment.
	 
	 	(b)	 	Shares as to which options previously granted under this Plan shall for any
reason lapse shall be restored to the total number available for grant of options.

5. Plan Administration.

	 	(a)	 	The Plan shall be administered by a Stock Option Committee (the “Committee”)
whose members shall be appointed from time to time by, and shall serve at the pleasure
of, the Board of Directors of the Company. In addition, all members shall be directors
and shall meet the definitional requirements for “non-employee director” (with any
exceptions therein permitted) contained in the then current SEC Rule 16b-3 or any
successor provision.
	 
	 	(b)	 	The Committee shall adopt such rules of procedure as it may deem proper.
	 
	 	(c)	 	The powers of the Committee shall include plenary authority to interpret the
Plan, and subject to the provisions hereof, to determine the persons to whom options
shall be granted, the number of shares subject to each option, the terms and term of
the option, and the date on which options shall be granted.

 

 

6. Eligibility.

	 	(a)	 	Options may be granted under the Plan to employees of the Company or any
subsidiary selected by the Committee. Determination by the Committee of the employees
to whom options shall be granted shall be conclusive.
	 
	 	(b)	 	An individual may receive more than one option, subject, however, to the
following limitations: (i) in the case of an incentive stock option (as described in
Section 422A of the Internal Revenue Code of 1986), the aggregate fair market value
(determined at the time the options are granted) of the Company=s common stock
with respect to which incentive stock options are exercisable for the first time during
any calendar year by any individual employee (under this Plan and all other similar
plans of the Company and its subsidiaries) shall not exceed $100,000, and (ii) the
maximum number of shares with respect to which options are granted to an individual
during the term of the Plan, as defined in Section 3 hereof, shall not exceed 1,000,000
shares. Incentive stock options granted hereunder shall be clearly identified as such
at the time of grant.

7. Option Price. The option price per share to be paid by the grantee to the Company upon exercise
of the option shall be determined by the Committee, but shall not be less than 100% of the fair
market value of the share at the time the option is granted, nor shall the price per share be less
than the par value of the share. Notwithstanding the prior sentence, the option price per share
may be less than 100% of the fair market value of the share at the time the option is granted if:

	 	(a)	 	The grantee of the option has entered into an agreement with the Company
pursuant to which the grant of the option (which must be a non-qualified option and not
an incentive stock option) is in lieu of the payment of compensation; and
	 
	 	(b)	 	The amount of such compensation when added to the cash exercise price of the
option equals at least 100% of the fair market value (at the time the option is
granted) of the shares subject to option.

“Fair market value” for purposes of the Plan shall be the mean between the high and low sales
prices at which shares of the Company were sold on the New York Stock Exchange on the valuation day
or, if there were no sales on that day, then on the last day prior to the valuation day during
which there were sales. In the event that this method of valuation is not practicable, then the
Committee, in its discretion, shall establish the method by which fair market value shall be
determined.

8. Terms or Quotas of Options:

	 	(a)	 	Term. Each option granted under the Plan shall be exercisable only during a
term (the “Term of the Option”) commencing one year, or such other period of time
(which may be less than or more than one year) as is determined to be appropriate by
the Committee, after the date when the option was granted and ending (unless the option
shall have terminated earlier under other provisions of the Plan) on a date to be fixed
by the Committee. Notwithstanding the foregoing, each option granted under the Plan
prior to April 14, 2008 shall become exercisable in full immediately upon a Change in
Control. Upon a Qualifying Termination following a Change in Control, all outstanding
options granted on and following April 14, 2008 shall vest, become immediately
exercisable or payable or have all restrictions lifted, as the case may be. In
addition, an option agreement or grant notice, or an individual agreement between the
Participant and the Company, may provide for additional benefits to the Participant
upon a Change in Control.
	 
	 	(b)	 	Quotas. The Committee shall have authority to grant options exercisable in
full at any time during their term, or exercisable in quotas. Quotas or portions
thereof not purchased in earlier periods shall be cumulated and be available for
purchase in later periods. In exercising an option, the grantee may purchase less than
the full quota available to him or her.
	 
	 	(c)	 	Exercise of Stock Options. Stock options shall be exercised by delivering,
mailing, or transmitting to the Committee or its designee (for all purposes under the
Plan, in the absence of an express designation by the Committee, the Company=s
Executive Vice President-Employee Services is deemed to be the Committee=s
designee) the following items:

 

 

     (i) A notice, in the form and by the method (which may include use of a
telephone or other means of electronic communication) and at times prescribed by the
Committee, specifying the number of shares to be purchased; and

     (ii) A check or money order payable to the Company for the full option price.

In addition, the Committee in its sole discretion may determine that it is an
appropriate method of payment for grantees to pay, or make partial payment of, the
option price with shares of Company common stock in lieu of cash. In addition, in
its sole discretion the Committee may determine that it is an appropriate method of
payment for grantees to pay for any shares subject to an option by delivering a
properly executed exercise notice together with irrevocable instructions (which may
be by the use of a telephone or other means of electronic communication) to a broker
to deliver promptly to the Company the amount of sale or loan proceeds to pay the
purchase price (a “cashless exercise”). To facilitate the foregoing, the Company
may enter into agreements for coordinated procedures with one or more brokerage
firms. The value of Company common stock surrendered in payment of the exercise
price shall be its fair market value, determined pursuant to Section 7, on the date
of exercise. Upon receipt of such notice of exercise of a stock option and upon
payment of the option price by a method other than a cashless exercise, the Company
shall promptly deliver to the grantee (or, in the event the grantee has executed a
deferral agreement, the Company shall deliver to the grantee at the time specified
in such deferral agreement) a certificate or certificates for the shares purchased,
without charge to him or her for issue or transfer tax.

	 	(d)	 	Postponements. The Committee may postpone any exercise of an option for such
period of time as the Committee in its discretion reasonably believes necessary to
prevent any acts or omissions that the Committee reasonably believes will be or will
result in the violation of any state or federal law; and the Company shall not be
obligated by virtue of any provision of the Plan or the terms of any prior grant of an
option to recognize the exercise of an option or to sell or issue shares during the
period of such postponement.

	 	(i)	 	For all options granted under this Plan prior to October 16,
2007, any such postponement shall automatically extend the time within which
the option may be exercised, as follows: the exercise period shall be extended
for a period of time equal to the number of days of the postponement, but in no
event shall the exercise period be extended beyond the last day of the
postponement for more days than there were remaining in the option exercise
period on the first day of the postponement.
	 
	 	(ii)	 	For all options granted under this Plan on or after October 16,
2007, the Committee shall promptly terminate the postponement as soon as, in
the reasonable belief of the Committee, the exercise of an option would no
longer result in a violation of state or federal law. The exercise period for
any option outstanding at the commencement of any postponement shall expire
upon the later of (x) thirty (30) days after the Committee terminates the
postponement or (y) the date that the option would otherwise expire in
accordance with its terms.

Neither the Company nor any subsidiary of the Company, nor any of their respective
directors or officers shall have any obligation or liability to the grantee of an
option or to a successor with respect to any shares as to which the option shall
lapse because of such postponement.

	 	(e)	 	Non-Transferability. All options granted under the Plan shall be
non-transferable other than by will or by the laws of descent and distribution, subject
to Section 10 hereof, and an option may be exercised during the lifetime of the grantee
only by him or her or by his/her guardian or legal representative.
	 
	 	(f)	 	Certificates. The stock certificate or certificates to be delivered under this
Plan may, at the request of the grantee, be issued in his or her name or, with the
consent of the Company, as specified by the grantee.
	 
	 	(g)	 	Restrictions. This subsection (g) shall be void and of no legal effect in the
event of a Change of Control. Notwithstanding anything in any other section or
subsection herein to the contrary, the following provisions shall apply to all options
(except options designated by the Committee as FirstShare options), exercises and
grantees. An amount equal to the spread realized in connection

 

 

	 	 	 	with the exercise of an option within six months prior to a grantee’s Voluntary
Resignation shall be paid to the Company by the grantee in the event that the
grantee, within six months following Voluntary Resignation, engages, directly or
indirectly, in any activity determined by the Committee to be competitive with any
activity of the Company or any of its subsidiaries.
	 
	 	(h)	 	Taxes. The Company shall be entitled to withhold the amount of any tax
attributable to amounts payable or shares deliverable under the Plan, and the Company
may defer making payment or delivery of any benefits under the Plan if any tax is
payable until indemnified to its satisfaction. The Committee may, in its discretion
and subject to such rules which it may adopt, permit a grantee to satisfy, in whole or
in part, any federal, state and local withholding tax obligation which may arise in
connection with the exercise of a stock option by electing either:

     (i) to have the Company withhold shares of Company common stock from the shares to be issued upon the exercise of the option;

     (ii) to permit a grantee to tender back shares of Company common stock issued
upon the exercise of an option; or

     (iii) to deliver to the Company previously owned shares of Company common
stock, having, in the case of (i), (ii), or (iii), a fair market value equal to the
amount of the federal, state, and local withholding tax associated with the exercise
of the option.

	 	(i)	 	Additional Provisions Applicable to Option Agreements in Lieu of Compensation.
If the Committee, in its discretion permits participants to enter into agreements as
contemplated by Section 7 herein, then such agreements must be irrevocable and cannot
be changed by the participant once made, and such agreements must be made at least
prior to the performance of any services with respect to which an option may be
granted. If any participant who enters into such an agreement terminates employment
prior to the grant of the option, then the option will not be granted and all
compensation which would have been covered by the option will be paid to the
participant in cash.

9. Exercise of Option by Grantee on Cessation of Employment.

	 	(a)	 	If a person to whom an option has been granted shall cease, for a reason other
than his or her death, Disability, Early Retirement, Retirement, Workforce Reduction,
or Voluntary Resignation, to be employed by the Company or a subsidiary, the option
shall terminate three months after the cessation of employment, unless it terminates
earlier under other provisions of the Plan. Until the option terminates, it may be
exercised by the grantee for all or a portion of the shares as to which the right to
purchase had accrued under the Plan at the time of cessation of employment, subject to
all applicable conditions and restrictions provided in Section 8 hereof. If a person
to whom an option has been granted shall retire or become disabled, the option shall
terminate three years (unless the option was granted in lieu of compensation, in which
case it shall be five years) after the date of Early Retirement, Retirement or
Disability, unless it terminates earlier under other provisions of the Plan. Although
such exercise by a retiree or disabled grantee is not limited to the exercise rights
which had accrued at the date of Early Retirement, Retirement or Disability, such
exercise shall be subject to all applicable conditions and restrictions prescribed in
Section 8 hereof. If a person shall voluntarily resign, his option to the extent not
previously exercised shall terminate at once. If the grantee of one or more stock
options described in the second sentence of Section 7 of the Plan or as to which the
number of shares awarded was based on a formula which included a percentage of the
grantee=s annual bonus or target bonus or participation in a bonus plan shall
cease to be employed as a result of a Workforce Reduction, then each of such stock
options shall terminate on the date specified by the Committee, not to exceed five
years after the date of termination, unless it terminates earlier under other
provisions of the Plan. Although such exercise is not limited to the exercise rights
which had accrued at the date of termination, such exercise shall be subject to all
applicable conditions and restrictions prescribed in Section 8 hereof. If the grantee
of one or more stock options not described in the prior two sentences of this paragraph
shall cease to be employed as a result of a Workforce Reduction, then each of such
stock options shall terminate on the date specified by the Committee, not to exceed
three years after the date of termination, unless it terminates earlier under other
provisions of the Plan.

 

 

	 	 	 	Although such exercise is not limited to exercise rights which had accrued at the
date of termination, such exercise shall be subject to all applicable conditions and
restrictions prescribed in Section 8 hereof.
	 
	 	(b)	 	Notwithstanding the provisions of Sections 9(a) and 10, if an option holder’s
employment has terminated for any reason or if the option holder has died, the
Committee is authorized to extend the exercise period of any such holder’s outstanding
options so as to allow the option holder or his or her successor, as applicable, to
exercise the affected options at any time during the original full Term of the Option,
or at any time during any shorter period selected by the Committee. The discretion
afforded the Committee herein may be exercised on a case by case basis, or may be
exercised in connection with specific groups of options or option holders in specific
situations. No exercise of such discretion in one instance shall give rise to any right
or expectation of similar treatment by that option holder, or by any other option
holder, in any other similar situation.

10. Exercise of Option After Death of Grantee. If the grantee of an option shall die while in the
employ of the Company or within three months after ceasing to be an employee, and if the option
was in effect at the time of his or her death (whether or not its term had then commenced), the
option may, until the expiration of three years (unless the option was granted in lieu of
compensation, in which case it shall be five years) from the date of death of the grantee or until
the earlier expiration of the term of the option, be exercised by the successor of the deceased
grantee. Although such exercise is not limited to the exercise rights which had accrued at the
date of death of the grantee, such exercise shall be subject to all applicable conditions and
restrictions prescribed in Section 8 hereof. The provisions of this Section 10 shall be subject to
the Committee’s discretion exercised pursuant to Section 9(b) above.

11. Pyramiding of Options. The Committee in its sole discretion may from time to time permit the
method of exercising options known as pyramiding (the automatic application of shares received upon
the exercise of a portion of a stock option to satisfy the exercise price for additional portions
of the option).

12. Shareholder Rights. No person shall have any rights of a shareholder by virtue of a stock
option except with respect to shares actually issued to him or her, and issuance of shares shall
confer no retroactive right to dividends.

13. Adjustment for Changes in Capitalization. Any increase in the number of outstanding shares of
common stock of the Company occurring through stock splits or stock dividends after the adoption of
the Plan shall be reflected proportionately:

	 	(a)	 	in an increase in the aggregate number of shares then available for the grant
of options under the Plan, or becoming available through the termination or forfeiture
of options previously granted but unexercised;
	 
	 	(b)	 	in the number available to grant to any one person;
	 
	 	(c)	 	in the number subject to options then outstanding; and
	 
	 	(d)	 	in the quotas remaining available for exercise under outstanding options,

and a proportionate reduction shall be made in the per-share option price as to any outstanding
options or portions thereof not yet exercised. Any fractional shares resulting from such
adjustments shall be eliminated. If changes in capitalization other than those considered above
shall occur, the Board of Directors shall make such adjustments in the number and class of shares
for which options may thereafter be granted, and in the number and class of shares remaining
subject to options previously granted and in the per-share option price as the Board in its
discretion may consider appropriate, and all such adjustments shall be conclusive; provided,
however, that the Board shall not make any adjustments with respect to the number of shares subject
to previously granted incentive stock options or available for grant as options if such adjustment
would constitute the adoption of a new plan requiring shareholder approval before further incentive
stock options could be granted.

14. Termination, Suspension, or Modification of Plan. The Board of Directors may at any time
terminate, suspend, or modify the Plan, except that the Board of Directors shall not amend the Plan
in violation of law. No termination, suspension, or modification of the Plan shall adversely
affect any right acquired by any grantee, or by any successor of a grantee (as provided in Section
10 hereof), under the terms of an option granted before the date of such termination, suspension,
or modification, unless such grantee or successor shall consent, but it shall be

 

 

conclusively presumed that any adjustment for changes in capitalization as provided in Section 13
does not adversely affect any such right.

15. Application of Proceeds. The proceeds received by the Company from the sale of its shares
under the Plan will be used for general corporate purposes.

16. No Right to Employment. Neither the adoption of the Plan nor the granting of any stock option
shall confer upon the grantee any right to continue in the employ of the Company or any of its
subsidiaries or interfere in any way with the right of the Company or the subsidiary to terminate
such employment at any time.

17 Governing Law. The Plan and all determinations thereunder shall be governed by and construed in
accordance with the laws of the State of Tennessee.

18. Successors. This Plan shall bind any successor of the Company, its assets or its businesses
(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 under this
Plan, in the same manner and to the same extent that the Company would be required to perform if no
such succession had taken place. The term “Company,” as used in the Plan, shall mean the Company
as hereinbefore defined and any successor or assignee to the business or assets which by reason
hereof becomes bound by this Plan.EX-10.3

 

Exhibit 10.3

FIRST HORIZON NATIONAL CORPORATION

2002 MANAGEMENT INCENTIVE PLAN

(As Amended and Restated April 14, 2008)

Article I – Purpose

Section 1.1 The purpose of the Plan is to provide a financial incentive for key executives to
encourage and reward desired performance on key financial measures that will further the growth,
development and financial success of the Company and to enhance the Company’s ability to maintain a
competitive position in attracting and retaining qualified key personnel who contribute, and are
expected to contribute, materially to the success of the Company. The Plan is designed to replace
the existing First Tennessee National Corporation Management Incentive Plan, as amended and
restated, and to ensure that awards paid pursuant to this Plan to eligible employees of the Company
are tax deductible under Section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”). This Plan shall be submitted to the Company’s shareholders for approval pursuant to 26
C.F.R. § 1.162.27(e)(4)(vi) at the annual meeting to be held on April 16, 2002, and shall be
effective for the 2002 fiscal year commencing on January 1, 2002. If the shareholders do not
approve the Plan, the Plan shall not become effective.

Article II – Definitions

Section 2.1 Whenever the following terms are used in this Plan, they shall have the meaning
specified below unless the context clearly indicates to the contrary. The masculine pronoun shall
include the feminine and neuter and the singular shall include the plural, where the context so
indicates.

(a) “Award” shall mean an incentive compensation award made to a Participant pursuant to this Plan
that is subject to and dependent upon the attainment of one or more Performance Goals.

(b) “Board” shall mean the Board of Directors of the Company.

(c) “Change in Control” shall mean 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” (as defined under Section 3(a)(9) of the Securities Exchange Act
of 1934, as amended (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 entity in which the Company directly or indirectly beneficially owns
more than 50% of the voting securities or interests (a “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.

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

(e) “Committee” shall mean the Committee designated pursuant to Section 3.1 of this Plan and shall
consist solely of two or more members of the Board, appointed by and holding office at the pleasure
of the Board, each of whom is both a “non-employee director” as defined by Rule 16b-3 of the
Securities Exchange Act of 1934, as amended, and an “outside director” for purposes of Section
162(m) of the Code.

(f) “Common Stock” shall mean the common stock of the Company, par value $0.625 per share, as
adjusted from time to time for stock splits.

(g) “Company” shall mean First Horizon National Corporation, and its successors and assigns.

(h) “Compensation” shall mean the base salary earned by a Participant during any Performance
Period.

(i) “Covered Officer” shall mean at any date (i) any individual who, with respect to the previous
tax year of the Company, was a “covered employee” of the Company within the meaning of Code Section
162(m), excluding any such individual whom the Committee, in its discretion, reasonably expects not
to be a “covered employee” with

 

 

respect to the current tax year of the Company and (ii) any individual who was not a “covered
employee” under Code Section 162(m) for the previous tax year of the Company, but whom the
Committee, in its discretion, reasonably expects to be a “covered employee” with respect to the
current tax year of the Company or with respect to the tax year of the Company in which any
applicable Award will be paid.

(j) “Disability” shall mean a disability that would qualify as a total and permanent disability
under the long-term disability plan then in effect at the Company or Subsidiary employing the
Participant at the onset of such total and permanent disability.

(k) “Early Retirement” shall mean the Termination of Employment of a Participant from the employ or
service of the Company, or any of its Subsidiaries participating in the First Horizon National
Corporation Pension Plan, as amended from time to time, on or after the Participant has attained
the age of 55 and 15 years of employment or service with the Company or any of its participating
Subsidiaries.

(l) “Employee” shall mean any employee of the Company or a Subsidiary, whether such employee is so
employed at the time this Plan is adopted or becomes so employed subsequent to the adoption of this
Plan.

(m) “Employer” shall mean the Company or a Subsidiary, whichever at the time employs the Employee.

(n) “Fair Market Value” with respect to the Common Stock, shall mean, as of any date, (i) the mean
between the high and low sales prices at which shares of Common Stock were sold on the New York
Stock Exchange, or any other such exchange on which the Common Stock is 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 Common Stock on such date, the fair market value as determined in good faith
by the Committee in its sole discretion.

(o) “Maximum Award” shall mean the maximum Award payable under the Plan for the attainment of
Performance Goals in any Performance Period, which Award (i) shall be payable for Superior
Performance and (ii) shall not exceed the lesser of two and one-half (2 1/2) times the Target Award
or $4,000,000 for any Performance Period.

(p) “Participant” shall mean an Employee who is selected to participate in the Plan.

(q) “Performance Goals” shall mean the performance goals or targets for the Performance Measures
established by the Committee for each Performance Period, the attainment of which is necessary for
the payment of an Award to a Participant at the completion of the Performance Period. The level of
the attainment of the Performance Goals shall determine the amount of the Award payable hereunder.
Performance Goals may be expressed as an absolute amount or percent, as a ratio, or per share or
per Employee.

(r) “Performance Measures” shall mean one or more, or any combination, of the following Company,
Subsidiary, operating unit, division, line of business, department, team or business unit financial
performance measures: stock price, dividends, total shareholder return, earnings per share, market
capitalization, book value, revenues, expenses, loans, deposits, noninterest 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, including Personal Plan Goals.

(s) “Performance Period” shall mean the fiscal-year period to be used in measuring the degree to
which the Performance Goals relating to Awards have been met; provided, however, that for purposes
of the initial Performance Period of the Plan, Performance Period shall mean the period commencing
on January 1, 2002 and ending December 31, 2002.

 

 

(t) “Personal Plan Goals” shall mean the individual performance goals to be achieved by a
Participant in a Performance Period which are not based upon corporate performance, as recommended
by the Chief Executive Officer of the Company and approved by the Committee.

(u) “Plan” shall mean the First Horizon National Corporation 2002 Management Incentive Plan, as
amended from time to time.

(v) “Retirement” shall mean the Termination of Employment of a Participant after the Participant
(i) has fulfilled all service requirements for a pension under the terms of the First Horizon
National Corporation Pension Plan, as amended from time to time, or (ii) has achieved a certain
number of years of service with the Company or any Subsidiary participating in the First Horizon
National Corporation Pension Plan, as amended from time to time, and attained a certain age, that
the sum of the Participant’s years of service and age equals or exceeds the number 75.

(w) “Subsidiary” shall mean any corporation or other person of which a majority of its voting power
or its equity securities or equity interest is owned directly or indirectly by the Company.

(x) “Superior Performance” shall mean the Performance Goals established for any Performance Period,
the attainment of which is necessary for the payment of the Maximum Award for that Performance
Period.

(y) “Target Award” shall mean the Award payable to a Participant under the terms of the Plan for
the achievement of 100% of the Performance Goal in any Performance Period, expressed as a
percentage of a Participant’s Compensation in accordance with Section 5.1 of the Plan.

(z) “Termination of Employment” shall mean the time when the employee-employer relationship between
a Participant and the Employer is terminated for any reason, with or without Cause, including, but
not by way of limitation, a termination by resignation, discharge, death, Disability, Early
Retirement or Retirement, but excluding (i) terminations where there is a simultaneous reemployment
or continuing employment of a Participant by the 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 the Employer with the former Employee. 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, the Employer has an absolute and unrestricted right to terminate an
Employee’s employment at any time for any reason whatsoever, with or without cause, except to the
extent expressly provided otherwise in writing.

(aa) “Threshold Performance” shall mean the level of attainment of the Performance Goal necessary
for the payment of any Award upon the completion of any Performance Period.

Article III – Plan Administration

Section 3.1 Subject to the authority and powers of the Board in relation to the Plan as hereinafter
provided, the Plan shall be administered by a Committee designated by the Board. The Committee
shall have full authority to interpret the Plan and from time to time to adopt such rules and
regulations not inconsistent with the terms of the Plan for carrying out the Plan as it may deem
best in its sole and absolute discretion; provided, however, that the Committee may not exercise
any authority otherwise granted to it hereunder if such action would have the effect of increasing
the amount of any Award payable hereunder to any Covered Officer. All determinations by the
Committee shall be made by the affirmative vote of a majority of those members present at a meeting
duly called and held at which a quorum exists, but any determination reduced to writing and signed
by all of the members of the Committee shall be fully as effective as if it had been made by a
majority vote at a meeting duly called and held. All designations, determinations, interpretations
and other decisions of the Committee under or with respect to the provisions of the Plan or any
Award and all orders or resolutions of the Board pursuant thereto shall be final,

 

 

conclusive and binding on all persons, including but not limited to the Participants, the Company
and its Subsidiaries and their respective equity holders, heirs, successors and personal
representatives.

Section 3.2 The Committee, on behalf of the Participants, shall enforce this Plan in accordance
with its terms and shall have all powers necessary for the accomplishment of that purpose,
including, but not by way of limitation, the following powers:

	 	(a)	 	To select the Participants;
	 
	 	(b)	 	To select the Performance Measures to be used for purposes of setting the
Performance Goals for a Performance Period;
	 
	 	(c)	 	To establish the Performance Goals for each Performance Period and the Target
Awards to be payable to Participants for the achievement thereof;
	 
	 	(d)	 	To interpret, construe, approve and adjust all terms, provisions, conditions
and limitations of this Plan;
	 
	 	(e)	 	To decide any questions arising as to the interpretation or application of any
provision of the Plan;
	 
	 	(f)	 	To prescribe forms to be used and procedures to be followed by Participants for
the administration of the Plan; and
	 
	 	(g)	 	To establish the terms and conditions of any agreement or instrument under
which an Award may be earned and paid.

Article IV – Participation

Section 4.1 Subject to the provisions of the Plan, the Committee may from time to time select any
Employee who is a senior officer of the Company or of any Subsidiary to be granted Awards under the
Plan. Eligible Employees hired by the Company after the commencement of a Performance Period may
receive an Award for the Performance Period which commenced in the fiscal year in which the
Employee became employed by the Company, if any is payable under the terms of the Plan, and the
Employee is selected by the Committee to participate in the Plan at the time the Employee is
employed by the Company. Such Award may be paid in full or may be prorated based on the number of
full months in the Performance Period the Participant was employed by the Company, at the sole and
absolute discretion of the Committee. No Employee shall at any time have the right (a) to be
selected as a Participant in the Plan for any Performance Period, (b) if selected as a Participant
in the Plan, to be entitled to an Award, or (c) if selected as a Participant in one Performance
Period, to be selected as a Participant in any subsequent Performance Period.

Article V – Awards

Section 5.1 The Committee may make Awards to Participants with respect to each Performance Period,
subject to the terms and conditions set forth in the Plan. Unless specified otherwise by the
Committee, the amount payable pursuant to an Award shall be based on a percentage of the
Participant’s Compensation, with the Target Award set for attaining 100% of the Performance Goal
for any Performance Period.

Section 5.2 The Committee shall establish in writing the Performance Goals for the selected
Performance Measures applicable to a Performance Period, including the Threshold Performance and
Superior Performance, within 90 days of the commencement of the Performance Period and an Award for
that Performance Period shall be earned, paid, vested or otherwise deliverable upon the completion
of the Performance Period only if such Performance Goals are attained and the applicable employment
requirement in Section 6.2(c) is satisfied.

Section 5.3 Performance Goals may be described in terms of Company-wide objectives or objectives
that are related to the performance of the individual Participant or the Subsidiary, operating
unit, division, line of business, department, team, business unit or function within the Company or
Subsidiary in which the Participant is employed, and may be expressed on an absolute and/or
relative basis, based on or otherwise employ comparisons based on Company internal targets, the
past performance of the Company 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 Common Stock outstanding, or to assets or net assets.

Section 5.4 The degree to which the Company achieves the Performance Goals established by the
Committee for a Performance Period shall serve as the basis for the Committee’s determination of
the Award payable to a Participant upon the completion of the Performance Period. Awards will be
prorated for Company performance results occurring between stated performance levels. Company
performance below the Threshold Performance will result in no Award payments for that Performance
Period. The Award payable for the attainment of Superior Performance shall not exceed two and
one-half times the Target Award for any Performance Period.

Section 5.5 With respect to any Covered Officer during any Performance Period, the maximum amount
of any Award is $4,000,000.

Section 5.6 Except in the case of Performance Goals related to an Award intended to qualify under
Section 162(m) of the Code, if the Committee determines that a change in the business, operations,
corporate structure or capital structure of the Company, or the manner in which it conducts its
business, or other events or circumstances render the Performance Goals and/or Performance Measures
established for any Performance Period unsuitable, the Committee, after the commencement of a
Performance Period, may modify such Performance Measures and/or Performance Goals, in whole or in
part, as the Committee deems appropriate and equitable.

Article VI – Payment of Awards

Section 6.1 Upon completion of each Performance Period, the Committee shall review Company
performance results as compared to the established Performance Goals for that Performance Period,
and shall certify (either by written consent or as evidenced by the minutes of a meeting) the
specified Performance Goals achieved for the Performance Period (if any) and direct which Award
payments, if any, are payable under the Plan. No payment shall be made if the Threshold Performance
for the Performance Period is not met. The Committee may, in its sole and absolute discretion,
reduce or eliminate a Participant’s Award that would have been otherwise paid, including without
limitation by reference to a Participant’s failure to achieve his or her Personal Plan Goals.

Section 6.2 The Committee shall have the sole and absolute authority and discretion to determine
the time and manner in which Awards, if any, shall be paid under this Plan; provided, however, such
discretion may not be exercisable in any manner which would cause the payment of an Award not to
satisfy the requirements for a short-term deferral under Treasury Regulation §1.409A-1(b)(4).
Generally, however, the following provisions may apply:

     (a) Form of Payment: Payment of Awards may be made in a single-sum in cash.

     (b) Date of Payment: Payment of Awards shall be made as soon as practicable
(as determined by the Committee) following the close of the Performance Period (the
“Payment Date”), but except as expressly provided herein, payment of Awards shall
be made on or before the 15th day of the 3rd month following
the end of the fiscal year of the Company that coincides with the end of the
Performance Period. Notwithstanding the foregoing:

     (i) To the extent permissible under Treasury Regulation
§1.409A-1(b)(4)(ii), the Payment Date may be delayed within the
discretion of the Committee on the following grounds:

	 	(A)	 	It is administratively impracticable to
make the payment by the regular Payment Date due to
unforeseeable reasons;
	 
	 	(B)	 	The payment would jeopardize the
Company’s ability to continue as a going concern;

 

 

	 	(C)	 	The payment is reasonably anticipated
not to be deductible under Section 162(m) of the Code due
to circumstances that a reasonable person would not have
anticipated; or
	 
	 	(D)	 	Such other grounds as may be from time
to time permissible under the foregoing regulation;

Provided, however, any delayed payment shall be made within the
period required under the foregoing regulation.

     (ii) Section 6.2(c)(iii) shall control the date or dates of the Payment of Awards to
the extent applicable.

     (c) Employment Required: Except as provided below, Participants must be Employees on the
Payment Date in order to receive payment of an Award.

     (i) Early Retirement, Retirement, death or Disability during a Performance Period:
If, during a Performance Period, a Participant’s Termination of Employment by the Company
or its Subsidiaries is due to the Early Retirement, Retirement, death or Disability of
the Participant, the Participant (or his beneficiary, as the case may be) shall
nonetheless receive payment of an Award, if any, after the close of the Performance
Period based upon the Performance Goals actually attained by the Company for the
Performance Period. The Award, if any, may be paid in full or may be prorated based on
the number of full months which have elapsed in the Performance Period as of the date of
such Termination of Employment, at the sole and absolute discretion of the Committee.
Payments under this Section 6.2(c)(i) shall be made on the Payment Date.

     (ii) Early Retirement, Retirement, death or Disability after Last Day of the
Performance Period: If a Participant is an Employee on the last day of a Performance
Period, but is not an Employee on the Payment Date due to Early Retirement, Retirement,
death or Disability, then the Participant (or his beneficiary, as the case may be) may
receive on the Payment Date the full Award earned under the terms of the Plan for the
Performance Period, if any. The Award, if any, shall be made on the Payment Date. If a
Participant’s employment with the Company is terminated for any other reason other than
Early Retirement, Retirement, death or Disability after the last day of a Performance
Period, but before the Payment Date, the Participant (or his beneficiary, as the case may
be) will forfeit all rights to any earned but unpaid Awards for that Performance Period
under the Plan; provided, however, that the Committee may, at any time and in its sole
and absolute discretion, authorize a full or partial payment of any earned but unpaid
Awards under the Plan.

     (iii) Change in Control: In the event the terms of any agreement entered into by
and between the Company and a Participant governs the payment of any Award granted
hereunder following a Change in Control, then the payment of such Award shall be governed
by the terms and conditions of such agreement and not of this Plan. If the payment of
any Award granted hereunder following a Change in Control is not otherwise provided for
by the terms of an agreement by and between the Company and a Participant, then the
payment of such Award following a Change in Control shall be governed by this Section
6.2(c)(iii). Unless otherwise provided under the terms of an agreement between the
Participant and the Company, a Participant shall receive an Award equal to the Target
Award the Participant would have received for the Performance Period if the Participant’s
employment with the Company is terminated during a Performance Period in which there has
been a Change in Control, and the Target Award in such event shall be prorated based upon
the number of full months which have elapsed in the Performance Period as of the date of
such Termination of Employment. If a Participant’s employment is terminated following a
Performance Period in which there was a Change in Control, but before the Payment Date
for that Performance Period, the Participant shall receive the full amount of any Award
earned but not yet paid for that Performance Period. Notwithstanding the foregoing, no
payment of an Award shall be made later than the date required under Section 6.2(b).

 

 

Section 6.3 The Committee in its sole and absolute discretion may decrease the amount payable
pursuant to an Award, but in no event shall the Committee have discretion to increase the amount
payable to any Covered Officer pursuant to an Award in a manner inconsistent with the requirements
for qualified performance-based compensation under Code Section 162(m). In interpreting Plan
provisions applicable to Performance Goals and Awards, it is the intent of the Plan to conform with
the standards of Code Section 162(m) applicable to qualified performance-based compensation, and
the Committee in establishing such Performance Goals and interpreting the Plan shall be guided by
such provisions.

Article VII – Shares Available for Awards

Section 7.1 Shares of Common Stock shall not be issued or paid in respect of any Awards under the
Plan.

Article VIII – Amendment, Modification, Suspension or Termination of the Plan

Section 8.1 The Board may at any time terminate or suspend the Plan, in whole or in part, and from
time to time, subject to the shareholder approval requirements of Section 162(m), amend or modify
the Plan, provided that, except as otherwise provided in the Plan, no such amendment, modification,
suspension or termination shall adversely affect the rights of any Participant under any Award
previously earned but not yet paid to such Participant without the consent of such Participant. In
the event of such termination, in whole or in part, of the Plan, the Committee may in its sole
discretion direct the payment to Participants of any amount specified in Article VI and theretofore
not paid out, prior to the Payment Date, and in a lump sum on installments as the Committee shall
prescribe with respect to each such Participant; provided, however, such payments shall in all
events be made within the period permissible for short-term deferrals under Treasury Regulation
§1.409A-1(b)(4). Notwithstanding the foregoing, any such payment to a Covered Officer must be
discounted to reflect the present value of such payment using a rate equal to the discount rate in
effect under the First Horizon National Corporation Pension Plan, as amended from time to time, on
the date of such payment. The Board may at any time and from time to time delegate to the Committee
any or all of its authority under this Article VIII to the extent permitted by law.

Article IX – General Provisions

Section 9.1 Unless otherwise determined by the Committee and provided in the Agreement, no Award or
any other benefit under this Plan shall be assignable or otherwise transferable, except by will or
the laws of descent and distribution. Any attempted assignment of an Award or any other benefit
under this Plan in violation of this Section 9.1 shall be null and void. A Participant may
designate in writing a beneficiary (including the trustee or trustees of a trust) who shall upon
the death of such Participant be entitled to receive all amounts payable under the provisions of
Section 6.2(c) to such Participant. A Participant may rescind or change any such designation at any
time.

Section 9.2 The Company shall have the right to withhold applicable taxes from any Award payment
and to take such other action as may be necessary in the opinion of the Company to satisfy all
obligations for withholding of such taxes.

Section 9.3 No Employee or other person shall have any claim or right to be granted an Award under
this Plan. Neither the Plan nor any action taken thereunder shall be construed as giving an
Employee any right to be retained in the employ of the Company or an Employer and the right of the
Company or Employer to dismiss or discharge any such Participant is specifically reserved. The
benefits provided for Participants under the Plan shall be in addition to, and shall in no way
preclude, other forms of compensation to or in respect of such Participants. No Participant shall
have any lien on any assets of the Company or any Employer by reason of any Award made under this
Plan.

Section 9.4 The payment of all or any portion of the Awards payable to a Participant under this
Plan may be deferred by the Participant, subject to such terms and conditions as may be established
by the Committee in its sole and absolute discretion.

 

 

Section 9.5 This Plan and all determinations made and actions taken pursuant thereto, shall be
governed by and construed in accordance with, the laws of the State of Tennessee, without giving
effect to the conflicts of law principles thereof.

Section 9.6 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,
as well as its assets or its businesses (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.

Section 9.7 This Plan shall expire on December 31, 2012, and no new Awards shall be granted under
the Plan after that date.

Section 9.8 (a) 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 Award held by any
Participant, and/or the reimbursement by any Participant to the Company of all or any portion of
any Award paid (including any Award earned and deferred) to the Participant, for any Award having
any Performance Period beginning on or after January 1, 2008 where:

     (i) the amount or payment of the 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

     (ii) 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

     (iii) a lower payment or no payment would have been made to the Participant based
directly or indirectly upon the restated financial results.

     (b) Award payments that are earned and deferred for any reason are subject to this Section as
having been paid, along with all interest and other amounts earned upon the amount 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
Award if the conditions of this Section are met.

     (c) 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 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.

     (d) For purposes of this Section, examples of lowering or eliminating a payment based on
restated financial results include, among other things: (i) 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 (ii) 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.

     (e) 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 Award (including payment of
any amount deferred in connection with any Award and any earnings thereon) 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.

 

 

     (f) All 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 Award, whether or not following a suspension, shall operate to
waive or diminish the Company’s right to seek reimbursement under this Section.

     (g) 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 9.9 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.

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