TERMINATION AND AMENDMENT AGREEMENT
Exhibit
10.1
TERMINATION
AND AMENDMENT AGREEMENT
This
Termination and amendment Agreement dated as of December 30, 2005, amends the
Amended and Restated Employment Agreement dated as of February 24, 2005
(“Employment Agreement”), by and between Xxxxxx X. Xxxxxx (“Executive”) and
Cavalry Bancorp, Inc. (the “Company”) and terminates the Executive Agreement
dated May 22, 2002, as amended by the First Amendment dated November 24, 2004,
between Executive and Cavalry Banking (the “Bank”), a wholly-owned subsidiary of
the Company (as amended, the “Executive Agreement”).
WHEREAS,
the Company is a party to an Agreement and Plan of Merger by and between the
Company and Pinnacle Financial Partners, Inc., dated as of September 30, 2005
(the “Merger Agreement”).
WHEREAS,
the parties desire to amend the Employment Agreement and terminate the Executive
Agreements in order to address certain federal income tax issues arising under
Section 280G of the Internal Revenue Code upon consummation of the Merger
Agreement and to provide certain protections to the Company in certain
events.
NOW,
THEREFORE, the parties agree as follows:
1. Except
as
specifically modified herein, the terms of the Employment Agreement remain
in
force and effect (the Employment Agreement, as amended hereby, is hereinafter
referred to as the “Agreement”).
2. The
parties agree in accordance with the regulations issued under Section 409A
of
the Internal Revenue Code, that concurrently with the execution hereof,
Executive shall receive a one-time payment of $787,249.00 and the Executive
Agreement shall be terminated and of no further force and effect.
3. In
the
event of a Change in Control, as defined in Section 5(a) of the Employment
Agreement, the amount of the payment made under Section 2 above shall be
excluded from the calculation of “base amount” under Section 5(c) of the
Employment Agreement.
4. Section
11(a) of the Employment Agreement shall be modified to add the following
sentence at the end of said Section 11(a):
“Notwithstanding
the foregoing, no payment by the Company shall be required for the first twelve
months of the non-competition period otherwise provided for
herein.”
IN
WITNESS WHEREOF, the parties have executed this Termination and Amendment
Agreement on December 30, 2005.
Executive:
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Xxxxxx
X. Xxxxxx
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CAVALRY
BANCORP, INC.
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by:
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Xxxxxxx
X. Xxxxx
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CAVALRY
BANKING
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by:
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Xxx
X. Xxxxx, Xx.
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