Exhibit 10.1
EMPLOYMENT
AGREEMENT
AGREEMENT by and between First Security Group, Inc. a
Tennessee corporation having its principal offices in Chattanooga,
Tennessee (“First Security”) and Ralph E.
“Gene” Coffman, Jr. (the “Executive”),
dated as of the 20th day of September, 2010.
The parties desire to enter into an
agreement in the manner set forth with respect to the
Executive’s employment by First Security.
NOW THEREFORE
, in consideration of the mutual
covenants contained herein, First Security and the Executive agree
as follows:
Section 1
Employment.
First Security agrees to employ the
Executive and the Executive agrees to be in the employ of First
Security on the terms and conditions hereinafter set
forth.
Section 2 Position and
Duties.
The Executive’s position
including status, offices, title and reporting requirements,
authority, duties and responsibilities shall be that of President
and Chief Operating Officer.
Section 3 Effective
Date/At Will Employment Relationship.
The effective date (the
“Effective Date”) of this Agreement shall be
September 20, 2010. As of the Effective Date, Executive shall
be an employee at will of First Security and his employment shall
be terminable by him or First Security upon thirty day’s
written notice which may be given by either party for any reason or
for no reason.
Section 4 Compensation
and Benefits.
The regular compensation and
benefits payable to the Executive under this Agreement while the
Executive is employed at First Security shall be as
follows:
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(a)
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Base
Salary. For all services
rendered by the Executive under this Agreement, First Security
shall pay the Executive, effective as of September 15, 2010,
an annual base salary of Two Hundred Fifty Thousand ($250,000) per
year (“Annual Base Salary”). Thereafter, the
Executive’s base salary shall be subject to adjustment at
least annually by the Compensation Committee of the Board. The term
Annual Base Salary as used in this Agreement shall refer to the
Annual Base Salary as adjusted in accordance with this provision.
The Executive’s Annual Base Salary shall be payable in
periodic installments in accordance with First Security’s
usual practice for its senior executives.
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(b)
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Employee Benefit
Plans. The Executive
shall be eligible to participate in the standard employee benefit
plans, medical insurance plans, other benefit plans and perquisite
programs from time to time in effect for all employees of First
Security, in accordance with the terms of the applicable program
documents and generally
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applicable policies of First
Security and provided that there are no regulatory prohibitions on
such participation.
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(c)
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Business
Expenses. First Security
shall reimburse the Executive for all reasonable travel and other
business expenses incurred by him in the performance of his duties
and responsibilities, subject to such reasonable requirements with
respect to substantiation and documentation as may be specified by
First Security in accordance with its travel and business expense
reimbursement policy.
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(d)
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Vacation,
Holidays, Sick Leave, and Personal Days. The Executive shall be entitled to five weeks of
paid vacation, as well as holidays, sick leave, and personal days
in accordance with First Security’s policy applicable to
executive staff employees.
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(e)
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Club
Dues . The Executive
shall be entitled to a payment to be used as the initiation fee for
membership in the Mountain City Club in Chattanooga, Tennessee and
reimbursement for dues paid as a result of his membership in said
club, subject to such reasonable requirements with respect to
substantiation and documentation as may be specified by First
Security.
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(f)
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Automobile . The Executive shall be provided with $500 per
month for automobile expenses, in accordance with the terms of the
applicable First Security policy.
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(g)
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Travel
Benefits . The Executive
shall be reimbursed for reasonable air travel expenses incurred for
two trips by his wife to seek housing in Chattanooga,
Tennessee.
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(h)
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Rent
Reimbursement . First
Security shall reimburse the Executive for reasonable expenses
incurred in connection with renting hou
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