Document:

Warrant Plan and Specimen Warrant Certificate

 Exhibit 4.2 
 ALARION BANK 
 2004 Warrant Plan 
 ARTICLE I 
 PURPOSE OF THE PLAN 
 The Board of Directors of Alarion Bank (“Bank”) has determined that it is in the best interests of the Bank to issue Warrants to purchase the
Bank Common Stock in connection with the Bank’s initial offering of Common Stock. The Bank proposes to issue up to 1,500,000 shares of Common Stock and Warrants to purchase Common Stock in Units. Each Unit will contain one share of Common Stock
and one Warrant which will entitle the holder thereof to purchase one share of additional Common Stock. Therefore the Board of Directors, in order to provide for the above, has adopted this Warrant Plan (“Plan”) on the date set forth
herein. 
 ARTICLE II 
 SCOPE OF THE PLAN 
 Section 1. Definitions. Unless the context clearly indicates otherwise, the
following terms have the meanings set forth below: 
  

	 	a.	“Board” means the Board of Directors of the Bank. 

  

	 	b.	“Call Date” means the date established by the Board upon which some or all of the Warrants must be exchanged for shares and if not so exchanged upon which such Warrants
shall expire. 

  

	 	c.	“Common Stock” means the $5.00 par value common stock of the Bank. 

  

	 	d.	“Expiration Date” shall be 5:00 p.m. on the third anniversary of the Bank opening for business, or 5:00 p.m. on the Call Date, whichever comes sooner, unless extended.

  

	 	e.	“Plan” means this Warrant Plan as adopted by the Board as set forth herein and as amended from time to time. 

  

	 	f.	“Warrant” means the right to purchase additional shares of Common Stock. 

  

	 	g.	“Warrant Certificate” means the evidence of ownership of Warrants, as executed and issued by the Bank. 

 Section 2. Warrants. There is hereby authorized 1,500,000 Warrants, each of which shall be redeemable for one share of Common
Stock of the Bank. Warrants shall be included only in Units offered by the Bank in its initial stock offering. Any Warrants not issued in connection with the initial stock offering shall automatically expire. Warrants may be called by the Board upon
a formal capital call issued by the Bank’s primary federal regulator or the Florida Office of Financial Regulation or at anytime after their one year anniversary. 
 Section 3. Call and Extension Options. The Board may call some or all of the Warrants issued and outstanding upon a formal capital call issued by the Bank’s primary federal regulator or
the Florida Office of Financial Regulation or at anytime after the expiration of a one year period following the opening of the Bank. Warrants may be called on a pro-rata basis, or in their entirety, from all Warrant holders. If such action
is taken by the Board, each Warrant holder shall be given written notice thereof and shall have 30 days from the date of such notice to present to the Bank the Warrants so called, along with payment therefore as required in Section 10 herein.
Warrants not presented for exchange during this period shall expire at 5:00 p.m. on the 30th day following the date of such notice. 
 In
addition, prior to the Expiration Date, the Board may extend the term of the Warrants for up to six additional months. 

 Section 4. Form of Warrants. The certificates evidencing the Warrants (the
“Warrant Certificates”) shall be substantially in the form set forth in Exhibit A attached hereto, and may have such letters, numbers or other marks of identification or designation and such legends, summaries or endorsements
printed, lithographed or engraved thereon as the Bank may deem appropriate and as are not inconsistent with provisions of this Plan, or as may be required to comply with any law, or with any rule or regulation made pursuant thereto, or to conform to
usage. Each Warrant Certificate shall entitle the registered holder thereof, subject to the provisions of this Agreement and of such Warrant Certificate, to purchase, in whole share amounts only, one fully paid and non-assessable share of Common
Stock for each Warrant evidenced by such Warrant Certificate, at $10.00 per share. 
 Section 5. Issuance of Warrants.
The Warrant Certificates when issued shall be dated and signed on behalf of the Bank, manually or by facsimile signature, by any two of its Chairman of the Board, Chief Executive Officer, President, or Secretary under its corporate seal, if any.
The seal of the Bank, if any, may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Warrants. 
 Section 6. Registration of Warrant Certificates; Registered Owners. The Bank shall maintain or cause to be maintained books for registration of ownership and transfer of ownership of the
Warrant Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Warrant Certificates and the number of Warrants evidenced by each such Warrant Certificate. The Bank may deem and treat the
registered holder of a Warrant Certificate as the absolute owner thereof and of the Warrants evidenced thereby (notwithstanding any notation of ownership or other writing thereon made by anyone), for the purpose of any exercise of such Warrants and
for all other purposes, and the Bank shall not be affected by any notice to the contrary. 
 Section 7. Registration of Transfers
and Exchanges; Transfer Restriction. The Bank shall transfer from time to time, any outstanding Warrants upon the books to be maintained by the Bank for that purpose, upon surrender of the Warrant Certificate evidencing such Warrants,
with the Form of Assignment duly filled in and executed and accompanied by a Common Stock Certificate evidencing an equal number of shares to be transferred, to the Bank, at its office in Ocala, Florida at any time prior to the Expiration Date. Upon
receipt of a Warrant Certificate, with the Form of Assignment duly completed and executed, the Bank shall promptly deliver a Warrant Certificate or Certificates representing an equal aggregate full number of Warrants to the transferee;
provided, however, in case the registered holder of any Warrant Certificate shall elect to transfer fewer than all of the Warrants evidenced by such Warrant Certificate, the Bank in addition shall promptly deliver to such registered holder a
new Warrant Certificate or Certificates for the full number of Warrants not so transferred. 
 Subject to Section 9 hereof, any Warrant
Certificate or Certificates may be exchanged at the option of the holder thereof for Warrant Certificates of different denominations (subject to a minimum denomination of 100 warrants), of like tenor and representing in the aggregate the same number
of Warrants, upon surrender of such Warrant Certificate or Certificates, with the Form of Assignment duly completed and executed, on or prior to the Expiration Date. 
 Warrants may only be transferred to: (i) a parent, sibling, spouse, child, or grandchild of the holder; (ii) to a pension or profit sharing plan of which the holder or holder’s spouse is a beneficiary;
(iii) to a business entity or trust owned or controlled by the holder or holder’s spouse is a beneficiary; or (iv) by a court order. In addition, the Bank shall not effect any transfer or exchange which will result in the issuance of
a Warrant Certificate for a fraction of a Warrant. 
 Section 8. Mutilated, Destroyed, Lost or Stolen Warrant
Certificates. Upon receipt by the Bank of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of any Warrant Certificate, and, in the case of loss, theft or destruction, receipt by the Bank of
indemnity or security reasonably satisfactory to them, and reimbursement to them of all reasonable expenses incidental thereto, and, in the case of mutilation, upon surrender and cancellation of the Warrant Certificate, the Bank shall deliver a new
Warrant Certificate of like tenor representing in the aggregate the same number of Warrants. 
 Section 9. Payment of
Taxes. With respect to any Warrant, the Bank will pay all documentary stamp taxes attributable to the initial issuance of shares of Common Stock upon the exercise of the Warrant; provided, however, that the Bank shall not be
required to pay any tax or taxes which may be payable in respect of any transfer involved in the issue of any Warrant or any certificates for shares of Common Stock in a name other than that of the registered holder of the Warrant or Warrant
Certificate surrendered upon the exercise of a Warrant, and the Bank shall not be required to issue or deliver such Warrant or certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Bank the amount
of such tax if any, or shall have established to the satisfaction of the Bank that such tax if required, has been paid. 

 Section 10. Exercise, Purchase Price and Duration of Warrants. Subject to the
provisions of this Warrant Plan, the holder of a Warrant shall have the right to purchase from the Bank (and the Bank shall issue and sell to that holder), one fully paid and non-assessable share of Common Stock for each Warrant at the initial
exercise price of $10.00 per share (subject to adjustment as provided in Section 12 hereof), upon the surrender of the Warrant Certificate evidencing such Warrant on any business day prior to 5:00 p.m. on the Expiration Date, with the Form of
Election to Exercise on the reverse thereof duly completed and executed, and payment of the Exercise Price in lawful money of the United States of America in cash or by cashiers’ or certified check payable to the Bank. The exercise price and
the shares of Common Stock issuable upon exercise of a Warrant shall be subject to adjustment from time to time in the manner specified in Section 12 and, as initially established or as so adjusted, are referred to herein as the “Exercise
Price” and the “Shares,” respectively. The Warrants shall be so exercisable either as an entirety or from time to time in part at the election of the registered holder thereof except that the Bank shall not be required to issue
certificates in denominations of less than 100 shares. In the event that fewer than all Warrants evidenced by a Warrant Certificate are exercised at any time prior to 5:00 p.m. Eastern Standard Time on the Expiration Date a new Warrant Certificate
will be issued for the Warrants not so exercised. 
 No payments or adjustments shall be made for any cash dividends, whether paid or
declared, on Shares issuable on the exercise of a Warrant. 
 No fractional shares of Common Stock shall be issued upon exercise of a
Warrant, but, in lieu thereof, there shall be paid to the registered holder of the Warrant Certificate evidencing such Warrant or other person designated on the Form of Election to Exercise as soon as practicable after date of surrender, an amount
in cash equal to the fraction of the current market value of a share of Common Stock equal to the fraction of a share to which such Warrant related. For such purpose, the current market value of a share of Common Stock shall be the book value of the
Common Stock as of the last day of the month immediately preceding the date of the Election to Exercise. 
 Subject to Section 9 hereof,
upon surrender of a Warrant Certificate, with the Form of Election to Exercise duly completed and executed, together with payment of the Exercise Price, the Bank shall issue and deliver the full number of Shares issuable upon exercise of the
Warrants tendered for exercise. Shares shall be deemed to have been issued, and any person so designated by the registered holder shall be deemed to have become the holder of record of a Share, as of the date of the surrender of the Warrant
Certificate to which the Share relates and payment of the appropriate Exercise Price; provided, however, if the date of surrender of a Warrant Certificate shall occur within any period during which the transfer books for the Bank’s
Common Stock are closed for any purpose, such person shall not be deemed to have become a holder of record of a Share until the opening of business on the day of reopening said transfer books, and certificates representing such Shares shall not be
issuable until such day. 
 Section 11. Reservation of Shares. The Bank will at all times reserve and keep
available, free from preemptive rights, out of the aggregate of its authorized but unissued Common Stock, for the purpose of enabling it to satisfy any obligation to issue Shares upon exercise of Warrants, through the close of business on the
Expiration Date, the number of Shares deliverable upon the exercise of all outstanding Warrants. 
 The Bank covenants that all Shares issued
upon exercise of the Warrants will, upon issuance in accordance with the terms of this Agreement, be fully paid and non-assessable. 
 Section 12. Adjustment of Exercise Price and Number of Shares Purchasable. The Exercise Price and the number of Shares which may be purchased upon the exercise of each Warrant are subject to adjustment from time to
time upon the occurrence, after the date hereof, if the Bank shall (i) declare a dividend on the Common Stock payable in shares of common stock, (ii) subdivide the outstanding Common Stock into a greater number of shares or
(iii) combine the outstanding Common Stock into a smaller number of shares, then the Exercise Price in effect on the record date for that dividend or on the effective date of that subdivision or combination, and/or the number and kind of
shares of capital stock issuable on that date, shall be proportionately adjusted so that the holder of any Warrant exercised after such time shall be entitled to receive solely the aggregate number and kind of shares of capital stock which, if the
Warrant had been exercised immediately prior to that date, such holder would have owned upon exercise and been entitled to receive by virtue of that dividend, subdivision, or combination. The foregoing adjustments shall be made by the Bank
successively whenever any event listed above shall occur. 

 Section 13. Notices to Warrant Holders. Upon any adjustment to the
Exercise Price pursuant to Section 10 hereof, the Bank within twenty calendar days thereafter shall cause to be given to the registered holders of outstanding Warrant Certificates at their respective addresses appearing on the Warrant
Certificate register written notice of the adjustments by first-class mail, postage prepaid. Where appropriate, the notice may be given in advance and included as a part of the notice required to be mailed under the other provisions of this
Section 12. 
 Section 14. Supplements and Amendments. The Bank may from time to time supplement or amend this
Agreement without the consent or concurrence of or notice to any holders of Warrant Certificates or Warrants in order to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein, to
correct any defective provision, clerical omission, mistake or manifest error herein contained, or to make any other provision with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of
the Warrant Certificates; provided that such action shall not adversely affect the interests of the holders of the Warrant Certificates or Warrants. Other amendments to this Agreement may be approved by a vote of at least 66 percent of the
Bank’s shares. 
 Section 15. Governing Law. This Plan and each Warrant Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of Florida and for all purposes shall be governed by, construed and enforced in accordance with the laws of said State. 
 Section 16. Benefits of This Plan. Nothing in this Plan shall be construed to give to any person or corporation other than the
Bank and the registered holders of the Warrant Certificates or Warrants any legal or equitable right, remedy or claim under this Plan; this Plan shall be for the sole and exclusive benefit of the Bank and the registered holders of the Warrant
Certificates. 

 EXHIBIT A 
 Warrant Certificate 

					
	 Certificate No.
  
 ____________________
	 	SUBJECT TO CALL	 	 Number of Warrants
  
 ____________________

 WARRANT CERTIFICATE FOR PURCHASE OF 
 COMMON STOCK OF ALARION BANK 
 (See Reverse Side
for Summary of Terms of Warrant Plan) 
 THIS CERTIFIES THAT, for value received,
                                        ,
or registered assigns, is the owner of the number of warrants set forth above, each of which entitles the owner to purchase, subject to the terms and conditions hereof and of the Warrant Plan referred to herein, at any time after the date hereof and
prior to the Expiration Date (as herein defined), one share of Common Stock, par value $5.00 per share (“Shares”) of Alarion Bank (“Bank”) at $10.00 per share (“Exercise Price”), payable in cash, or by cashiers check or
other official bank check, payable to the Bank. Warrants may be exercised by delivery and surrender of this Warrant Certificate, along with the Form of Election to Exercise on the reverse hereof duly completed and executed together with payment of
the Exercise Price at the office of the Bank or its duly appointed agent. 
 This Warrant Certificate and each Warrant represented hereby are issued pursuant
to and are subject to all of the terms, provisions and conditions of that certain Warrant Plan (“Warrant Plan”), adopted by the Bank, to all of which terms, provisions and conditions the registered holder of this Warrant Certificate
consents by acceptance hereof. The Warrant Plan and the summary of its terms set forth on the reverse side of this Warrant Certificate are hereby incorporated into this Warrant Certificate by reference and made a part hereof. The Warrant Plan sets
forth the terms and conditions under which the exercise price for a Warrant, the number of shares to be received upon exercise of a Warrant, or both, may be adjusted. Reference is hereby made to the Warrant Plan for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the Bank and the holders of the Warrant Certificates or Warrants. In the event of a conflict between the provisions of this Warrant Certificate and the Warrant Plan, the
provisions of the Warrant Plan shall control. 
 Copies of the Warrant Plan are available for inspection at the Bank’s office, or may be obtained upon
written request addressed to the Secretary, Alarion Bank, One Northeast First Avenue, Ocala, Florida 34470. The Bank shall not be required upon the exercise of the Warrants evidenced by this Warrant Certificate to issue fractions of Shares, but
shall make adjustments therefore in cash on the basis of the current market value of any fractional interest as provided in the Warrant Plan. 
 The Warrants
evidenced by this Warrant Certificate shall expire at 5:00 p.m. on the third anniversary of the date the Bank opens for business or sooner if called by the Board of Directors pursuant to the Warrant Plan. The day and time of expiration is referred
to herein as the “Expiration Date.” 
 IN WITNESS WHEREOF, Alarion Bank has caused this certificate to be executed by the signatures of its
duly authorized officers and has caused its corporate seal to be hereunto affixed. 
  

			
	Dated:	 	SEAL
		
	  
	 	  

	President	 	Chairman of the Board of Directors

 Summary of Terms of Warrant Plan 
 The Warrant Plan provides that, upon the occurrence of certain events, the initial exercise price set forth on the face of this Warrant Certificate may, subject to specified conditions, be adjusted (such exercise
price, as initially established or as adjusted from time to time, is referred to herein as the “Exercise Price”). If the Exercise Price is adjusted, the Warrant Plan provides that the number of shares which can be purchased upon the
exercise of each Warrant represented by this Warrant Certificate are subject to adjustment. 
 The Warrants evidenced by this Warrant Certificate shall be
exercisable until 5:00 p.m. on the third anniversary of the date the Bank opens for business or sooner if called in accordance with the Warrant Plan. Warrants are callable upon a formal regulatory capital call or at any time after the expiration of
a one-year period following the opening of the Bank. 
 In the event that upon any exercise the number of Warrants exercised shall be fewer than the total
number of Warrants represented hereby, there shall be issued to the holder hereof or his assignee a new Warrant Certificate evidencing the Warrants not so exercised. The Bank shall not be required to issue fractions of shares or any certificates
which evidence fractional shares. In lieu of a fractional share, if any, there shall be paid to the registered holder of a Warrant with regard to which the fractional share would be issuable, an amount in cash equal to the same fraction of the
current market value (as determined pursuant to the Warrant Plan) of a share. 
 No payment or adjustment will be made for any cash dividends, whether paid
or declared, on any shares issuable upon exercise of a Warrant. Prior to the exercise of the Warrants represented hereby, the registered holder of this Warrant Certificate, shall not be entitled to vote on or be deemed the holder of Common Stock of
the Bank which may at any time be issuable on the exercise hereof for any purpose, and nothing contained in the Warrant Plan or herein shall be construed to confer upon the holder of this Warrant Certificate, any of the rights of a stockholder of
the Bank or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issue of stock,
reclassification of stock, change of par value or change of stock to no par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings or other actions affecting stockholders or to receive dividends or subscription
rights or otherwise. 
 The Bank may deem and treat the registered holder of this Warrant Certificate as the absolute owner hereof and of the Warrants
represented by this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone) for the purposes of any exercise of such Warrants and for all other purposes, and the Bank shall not be affected by any notice
to the contrary. 
 Upon surrender of this Warrant Certificate with the form of Assignment below duly completed and executed, a new Warrant Certificate
representing the Warrants represented by this Warrant Certificate will be issued to the transferee; provided, however, that if the registered holder of this Warrant Certificate elects to transfer fewer than all Warrants represented by this
Warrant Certificate, a new Warrant Certificate for the Warrants not so transferred will be issued to such registered holder. This Warrant Certificate, together with other Warrant Certificates, may be exchanged by the registered holder for another
Warrant Certificate or Certificates of different denominations, of like tenor and representing in the aggregate Warrants equal in number to the same full number of Warrants represented by this Warrant Certificate and any other Warrant Certificate so
exchanged. 
 Warrants may only be transferred to: (i) a parent, sibling, spouse, child, or grandchild of the holder; (ii) to a pension or profit
sharing plan of which the holder or holder’s spouse; (iii) to a business entity or trust owned or controlled by the holder or holder’s spouse; or (iv) by a court order. In addition, the Bank shall not effect any transfer or
exchange which will result in the issuance of a Warrant Certificate for a fraction of a Warrant. 
 [Form of
Assignment]                     
 For value received
                                        
hereby sells, assigns and transfers
unto                                       
  this Warrant Certificate and all right, title and interest therein, and to the Warrants represented thereby, and does hereby irrevocably constitute and appoint
                                        
attorney, to transfer said Warrant represented by Warrant Certificate number
                                 on the books of the Bank with full power of
substitution in the premises. 
 Dated:
                                 
 NOTE: The above signature must correspond with the name written upon the face of this Warrant Certificate in every particular, without alteration or enlargement or any
change whatever. 
 Signature Guaranteed: 

 [Form Of Election To
Exercise]                     
 The undersigned hereby
irrevocably elects to exercise              Warrants evidenced by this Warrant Certificate, to purchase
             full shares of the Common Stock of the Bank (“Shares”) and herewith tenders payment for such Shares in the amount of
$             in accordance with the terms hereof. The undersigned hereby acknowledges receipt of a Prospectus, including amendments and supplements thereto relating to the Offering
of the Common Stock to be acquired in connection with this transaction. 
 Dated:
                                 
 Social Security Number: 
 Name of Registered holder of Warrant (Please
Print):
                                        
               
 Address (Please Print):
                                        
                                        
                       
 Signature:
                                        
                                        
                                        
     
 NOTE: The above signature must correspond with the name as written upon the face of this Warrant Certificate in every
particular, without alteration or enlargement or any change whatever. If the holder hereof is hereby electing to exercise fewer than all Warrants represented by this Warrant Certificate and is requesting that a new Warrant Certificate evidencing the
Warrants not exercised be registered in a name other than that in which this Warrant Certificate is registered, the signature of the holder of this Warrant Certificate must be guaranteed. 
 Signature Guaranteed:Employment Agreement with Jon M. Kurtz

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 BY AND BETWEEN 
 ALARION BANK 
 AND 
 JON M. KURTZ 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is
entered into this 2nd day of June, 2005, by and between Alarion Bank (“Bank” or “Employer”) and
Jon M. Kurtz (“Employee”). Employer and Employee are collectively referred to herein as the “Parties.” 
 RECITALS

 WHEREAS, Employer wishes to retain Employee as its President and Chief Executive Officer to perform the duties and
responsibilities as are described in this Agreement and as the Employer’s Board of Directors (“Board”) may assign to Employee from time to time; and 
 WHEREAS, Employee desires to become employed by the Employer and to serve as the Employer’s President and Chief Executive Officer in accordance with the terms and provisions of this Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto represent, warrant, undertake, covenant and agree as follows: 
 OPERATIVE
TERMS 
 1. Employment and Term. Employer shall employ Employee pursuant to the terms of this Agreement to perform the
services specified in Section 2 herein. The initial term of employment shall be for a period of two years, commencing on February 28, 2005 (“Effective Date”). On the first, and each subsequent, anniversary, this Agreement shall
be automatically extended for one additional year until the end of the 10th year of this Agreement, at which time,
the Agreement shall terminate, unless the Bank and Employee agree in writing to further extend the Agreement. Either Party may, however, terminate such renewals of this Agreement by giving the other Party written notice of its intent not to renew 30
days prior to any renewal is to take effect. 
 The Board shall, on an annual basis, not later than 45 days before the end of each
year, review Employee’s performance and this Agreement to determine if the Agreement’s renewals should be continued. The Board’s decision shall be included in its meeting minutes and Employee shall not be present for this
annual review. 
 2. Position, Responsibilities and Duties. During the term of this Agreement, Employee shall devote all of his
working time, attention, skill and best efforts to accomplish and faithfully perform all of the duties assigned to Employee on a full-time basis. Employee shall, at all times, conduct himself in a manner that will reflect positively upon the
Employer. Employee shall obtain such licenses, certificates, accreditations and professional memberships and designations as the Employer may reasonably require. Employee shall join and maintain memberships in such social and civic organizations as
the Employer’s Board may deem appropriate to foster the Employer’s contacts and business network in the community. Employee shall notify Employer prior to any significant participation by him in any trade association or similar
organization. Employee shall also have the specific duties prescribed in Schedule A. 

 3. Compensation. During the term of this Agreement, Employee shall be compensated as
described in Schedule B. 
 4. Payment of Business Expenses. Employee is authorized to incur reasonable expenses in
performing his duties hereunder. Employer will reimburse Employee for authorized expenses, according to the Employer’s established policies, promptly after Employee’s presentation of an itemized account of such expenditures. 
 5. Illness or Incapacity. 
 (a) Duration: Employee shall be paid his full Base Salary for any period of his illness or incapacity; provided that such illness or incapacity does not render Employee unable to perform his duties under
this Agreement for a period longer than three consecutive months. At the end of such three-month period, Employer may terminate Employee’s employment and this Agreement, as provided as provided by Section 6(b). 
 (b) Continuation of Coverages: Notwithstanding any contrary provision herein, following any termination of Employee’s
employment and this Agreement pursuant to Section 5(a), Employer will continue any other life, health and disability coverages for Employee substantially identical to the coverages maintained prior to Employee’s termination, until the
earlier of: 
  

	 	(i)	Employee’s full time employment by another Person; 

  

	 	(ii)	one year after the date of such termination (with the exception of any disability insurance coverage in place, which shall be governed by the terms of such policy); or

  

	 	(iii)	the date of Employee’s death. 

 6.
Termination. 
 (a) Death: This Agreement shall immediately terminate upon Employee’s death,
in which instance Employer shall pay to Employee’s estate any compensation accrued, but not yet paid. 
 (b)
Termination for Cause: The Employer shall have the right, at any time, upon written notice of termination satisfying the requirements of Section 8 herein, to terminate Employee’s employment hereunder, including termination
for Cause, as determined in the sole discretion of the Board of Directors. A termination for Cause shall be effective on the date of a notice of termination. For the purpose of this Agreement, termination for “Cause” shall mean termination
for personal dishonesty, incompetence, a pattern of unacceptable behavior, willful misconduct, insubordination, conduct which negatively reflects upon the Employer, breach of fiduciary duty, failure to substantially perform the duties stated in this
Agreement, violation of any law, rule or regulation (other than minor traffic violations or similar offenses), violation of a final cease-and-desist order, illness or incapacity for a period of longer than three months (as contemplated by
Section 5), or personal default on indebtedness which is not corrected within 30 

 
days from the date of default. In the event Employee is terminated for Cause, Employee shall have no right to compensation or other benefits for any period
after such date of termination, other than compensation which was accrued, but not yet paid, with the exception of any benefits received pursuant to Section 5(b). 
 (c) Other Termination by Employer: If Employee is terminated by Employer other than for Cause, Employee’s right to
severance benefits under this Agreement shall be as set forth in Section 6 (g) and (h) herein. 
 (d)
Change in Control: A “Change in Control” of the Employer shall mean the first to occur of any one or more of the following: 
  

	 	(i)	any transaction, whether by merger, consolidation, asset sale, recapitalization, reorganization, combination, stock purchase, tender offer, reverse stock split, or otherwise, which
results in the acquisition of, or beneficial ownership (as such term is defined under rules and regulations promulgated under the Securities Exchange Act of 1934, as amended) by any Person or any group of Persons acting in concert, of 50% or more of
the outstanding shares of common stock of the Employer, or 

  

	 	(ii)	the sale of all or substantially all of the assets of Employer; or 

  

	 	(iii)	the liquidation of Employer or a material amount of Employer’s assets; or 

  

	 	(iv)	the takeover or control of all or substantially all of the operations of Employer, through any of the means specified above. 

 In the event of a Change in Control, Employee shall have the right to terminate his employment by giving notice within six months of such
Change in Control. In such event, Employer, or its acquirer or successor, shall pay to Employee a sum equal to 24 months of Base Salary (as defined in Schedule B). At the option of Employer or its acquirer or successor, the sum may be paid in
one payment within 10 days of such termination or, at the option of Employer, or its acquirer or successor, by continuing to pay Employee as though he were still an employee for a total of 24 months in the same manner as all other employees of the
Bank, its acquirer or successor. Any such payments shall be made only upon Employee executing a full release in favor of Employer for any potential claims related to this Agreement and the employment of Employee by Employer. 
 (e) Termination for Good Reason: Employee may terminate his employment hereunder for Good Reason by delivering a notice of
termination (as defined in Section 8). For purposes of this Agreement, “Good Reason” shall mean a failure by the Bank to comply with any material provision of this Agreement, which failure has not been cured within 15 business days
after a notice of such noncompliance has been given by Employee to the Bank; reduction in Base Salary; the assignment to Employee of any duties inconsistent with Employee’s position, duties, responsibilities and status with the Bank; or the
transfer of Employee to any location outside of Alachua or Marion County, Florida. In the event Employee terminates his employment for Good Reason, he shall be entitled to severance benefits as set forth in Section 6(g) and (h). 
 (f) Termination by Employee: Employee may terminate his employment hereunder and this Agreement for any reason, by providing
a notice of termination (as defined in Section 8). In such event, Employee shall have no right to compensation or other benefits after the date of termination, except for accrued but unpaid compensation. 

 (g) Severance Payment: If Employee is entitled to severance benefits under
Sections 6(c) or (e), Employee shall be paid, as severance, twenty-four months’ Base Salary (as defined in Schedule B). At the option of Employer or its acquirer or successor, the sum may be paid in one payment within 10 days of such
termination or, at the option of Employer, by continuing to pay Employee as though he were still an employee for a total of 24 months in the same manner as all other employees of the Bank. Any such payments shall be made only upon Employee executing
a full release in favor of Employer for any potential claims related to this Agreement and the employment of Employee by Employer. 
 (h) Additional Severance Benefits: If Employee is entitled to severance benefits under Section 6(c) or (e), Employer shall maintain in full force and effect, for the continued benefit of Employee any Employee benefit
plans and programs in which Employee was entitled to participate immediately prior to the date of termination for the shorter of: 
  

	 	(i)	twelve months; or 

  

	 	(ii)	the period of time ending on the date Employee becomes eligible for participation in a comparable plan provided by another employer; provided, however, that Employee’s
continued participation is possible under the general terms and provisions of such plans and programs. 

 7. Regulatory
Provisions. Employer and Employee acknowledge that the laws and regulations governing the Parties require that the employment of Employee be governed by certain standards contained in those laws and regulations. To that end, the Parties
agree to be bound by the following provisions: 
 (a) Suspension/Temporary Prohibition: If Employee is suspended
and/or temporarily prohibited from participating in the conduct and affairs of the Bank as a result of a notice served under Section 8(e) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. §1818[e][3] and [g][1]) the Bank’s
obligations under this Agreement shall be suspended as of the date of such service unless stayed by appropriate proceedings. If the charges and the notice are dismissed, the Bank may in its discretion: 
  

	 	(i)	pay Employee all or part of his compensation withheld while the obligations under this Agreement are suspended; and 

  

	 	(ii)	reinstate (in whole or part) any of the Bank’s obligations which were suspended. 

 (b) Permanent Prohibition: If Employee is removed and/or permanently prohibited from participating in the conduct and
affairs of the Bank as a result of an Order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. §1818[e][4] or [g][1]), all of the Bank’s obligations under this Agreement shall terminate as of the
effective date of the order, but Employee’s vested rights, if any shall not be affected. 

 (c) Default Under FDIA: If the Bank is in default (as defined in
Section 3[x][1] of the Federal Deposit Insurance Act), all obligations under this Agreement shall terminate as of the date of default, but this subsection of this Agreement shall not affect Employee’s vested rights if any. 
 (d) Regulatory Termination: All obligations under this Agreement shall be terminated, except to the extent that a
determination has been made that continuation of this Agreement is necessary for continued operation of the Bank: 
  

	 	(i)	by the Director or his or her designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Bank’s under
the authority contained in Section 13(c) of the Federal Deposit Insurance Act; or 

  

	 	(ii)	by the Director or his or her designee, at the time the Director or his or her designee approves a supervisory merger to resolve problems related to operation of the Bank, or when
the Bank’s determined by the Director to be in unsafe or unsound condition. 

 Any of Employee’s
rights that have already vested, however, shall not be affected by the provisions of this Section 7. For purposes of this Subsection of the Agreement, the term “Director” shall mean the Director of the Federal Deposit Insurance
Corporation. 
 8. Notice of Termination. 
 (a) Specificity: Any termination of Employee’s employment by Employer or by Employee shall be communicated by written
notice of termination to the other Party. For purposes of this Agreement, a “notice of termination” shall mean a dated notice, which shall: (i) indicate the specific relevant termination provision in the Agreement; (ii) set forth
in reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee’s employment under the provision; and (iii) set forth the date of termination, which shall be not less than 30 days nor more than 45
days after such notice of termination is given, unless another Section of the Agreement requires or permits a different effective date. 
 (b) Delivery of Notices: All notices or resignations given or required to be given herein shall be in writing, sent by United States first-class certified or registered mail, postage prepaid, by way of
overnight carrier, or by hand delivery. If to Employee (or to Employee’s spouse or estate upon Employee’s death) notice shall be sent to Employee’s last-known address, and if to Employer, notice shall be sent to the Employer’s
corporate headquarters. All such notices shall be effective five days after having been deposited in the mail if sent via first-class certified or registered mail, or upon delivery if by hand delivery or if sent via overnight carrier. Either Party,
by notice in writing, may change or designate the place for receipt of all such notices. 
 9. Post-Termination Obligations.
Employer shall pay to Employee such payments and benefits as are required pursuant to this Agreement; provided, however, any such payments shall be subject to Employee’s post-termination cooperation. Such cooperation shall include the
following: 

 (a) Employee shall furnish such information and assistance as may be reasonably required
by Employer in connection with any litigation or settlement of any dispute between Employer and a customer or other third parties (including without limitation serving as a witness in court or other proceedings); 
 (b) Employee shall provide such information or assistance to Employer in connection with any regulatory examination by any state or
federal regulatory agency; 
 (c) Employee shall keep Employer’s trade secrets and other proprietary or confidential
information secret to the fullest extent practicable, subject to compliance with all applicable laws; 
 (d) Employee shall
return all Employer’s property, including, but not limited to, keys, credit cards, manuals and other written materials. 
 (e) Employee shall execute a full release of all potential claims related to this Agreement or to Employee’s employment with the Employer in favor of the Employer. 
 Upon submission of proper receipts, Employer shall promptly reimburse Employee for any reasonable expenses incurred by Employee in complying with the
provisions of this Section. 
 10. Indebtedness. If during the term of this Agreement, Employee becomes indebted to Employer
for any reason, Employer may, at its election, set off and collect any sums due Employee out of any amounts which Employer may owe Employee pursuant to the terms of this Agreement. Furthermore, upon the termination of this Agreement, all sums owed
to Employer by Employee shall become immediately due and payable. Employee shall pay all expenses and Attorneys’ Fees actually or necessarily incurred by Employer in connection with any collection proceeding for Employee’s indebtedness.
Notwithstanding any of the foregoing, any indebtedness to Employer secured by a mortgage on Employee’s residence shall not be subject to the foregoing provisions, but shall be governed by the loan documents evidencing such indebtedness.

 11. Maintenance of Trade Secrets and Confidential Information. Employee shall use his best efforts and utmost diligence to
guard and protect all of the Employer’s trade secrets and confidential information. Employee shall not, either during the term, or after termination, of this Agreement, for whatever reason, use in any capacity, or divulge or disclose in any
manner, to any Person, the identity of Employer’s customers, methods of operation, marketing or promotional methods, processes, techniques, systems, formulas, programs, trade secrets or other confidential information relating to Employer’s
business. Upon termination of this Agreement or Employee’s employment, for any reason, Employee shall immediately return and deliver to Employer all records and papers and all materials which bear employment trade secrets or confidential
information. 
 12. Competitive Activities. 
 (a) Limitation on Outside Activities: Employee agrees that during the term of this Agreement, except with the express
consent of the Board, Employee will not, directly or indirectly, engage in, participate in, become a director of, render advisory or other services to, become employed by, or make any financial investment in any firm, corporation, business entity or
business enterprise competitive with or to any business of Employer. Notwithstanding the foregoing, Employee shall not be precluded or prohibited from owning passive investments, including investments in the securities of other financial
institutions. Employee, however, shall 

 
be prohibited from making any investments or commitments of time, accepting any positions or participating in any activities which cause Employee to devote
time to such investments, commitments, positions or activities which interfere with Employee’s position with, and obligations, to the Bank. 
 (b) Agreement Not to Compete: Employee acknowledges that by virtue of his employment with Employer, Employee will acquire an intimate knowledge of the activities and affairs of the Bank, including trade
secrets and other confidential matters. Employee, therefore, agrees that during the term of this Agreement, and for a period of one year following the termination of Employee’s employment hereunder, Employee shall not become employed,
directly or indirectly, whether as an employee, independent contractor, consultant, or otherwise, with any federally-insured financial institution, financial holding company, bank holding company, or other financial services provider operating, or
intending to operate, in Alachua or Marion Counties, Florida, or with any Person whose intent it is to organize another such company or entity to be operated in Alachua or Marion Counties, Florida. 
 Employee further agrees that for a period of one year following the termination of Employee’s employment hereunder for any reason,
Employee shall not directly or indirectly solicit the business of any then current customer of the Bank, regardless of whether or not Employee was responsible for generating such customer’s business for the Bank. This restriction shall apply to
both loan customers and depositors of the Bank. 
 Employee hereby agrees that the duration of the anti-competitive covenant
set forth herein is reasonable, and that its geographic scope is not unduly restrictive. 
 13. Remedies for Breach.

 (a) Arbitration: The Parties agree that, except for the specific remedies for Injunctive Relief as contained
in Section 13(b), herein, any controversy or claim arising out of or relating to this Agreement, or any breach thereof, including, without limitation, any claim that this Agreement or any portion thereof is invalid, illegal or otherwise
voidable, shall be submitted to binding arbitration before and in accordance with the Rules of the American Arbitration Association. Judgment upon the determination and/or award of such arbitrator may be entered in any court having jurisdiction
thereof; provided, however, that this clause shall not be construed to permit the award of punitive damages to either Party. The prevailing Party to said arbitration shall be entitled to an award of reasonable Attorneys’ Fees. The venue for
arbitration shall be in Alachua or Marion Counties, Florida. 
 (b) Injunctive Relief: The Parties
acknowledge and agree that the services to be performed by Employee are special and unique and that money damages cannot fully compensate Employer in the event of Employee’s violation of the provisions of Sections 11 and 12 of this Agreement.
Thus, in the event of a breach of any of the provisions of such Section(s), Employee agrees that Employer, upon application to a court of competent jurisdiction, shall be entitled to an injunction restraining Employee from any further breach of the
terms and provision of such Section(s). Should Employer prevail in an action seeking such an injunction, Employee shall pay all costs and Attorneys’ Fees incurred by Employer in and relating to obtaining such injunction. Employee’s sole
remedy, in the event of the wrongful entry of such injunction, shall be the dissolution of such injunction and recovery of Attorneys’ Fees. Employee hereby waives any and all claims for damages by reason of the wrongful issuance of any such
injunction. 

 (c) Cumulative Remedies: Notwithstanding any other provision of this
Agreement, the injunctive relief described in Section 13(b) herein and all other remedies provided for in this Agreement which are available to Employer as a result of Employee’s breach of this Agreement, are in addition to and shall not
limit any and all remedies existing at law or in equity which may also be available to Employer. 
 14. Attorneys’ Fees.
In the event that any claim or controversy hereunder is the subject of any litigation or arbitration between the Parties, the prevailing Party shall be entitled to an award of all reasonable costs, including Attorneys’ Fees. 
 15. Miscellaneous. 
 (a) Amendment of Agreement: Unless as otherwise provided herein, this Agreement may not be modified or amended except in writing signed by the Parties. 
 (b) Certain Definitions: For purposes of this Agreement, the following terms whenever capitalized herein shall have the
following meanings: 
  

	 	(i)	“Person” shall mean any natural person, corporation, partner-ship (general or limited), trust, association or any other business entity. 

  

	 	(ii)	“Attorneys’ Fees” shall include the reasonable legal fees and disbursements charged by attorneys and their related travel and lodging expenses, court costs, paralegal
fees, etc. incurred in arbitration, mediation, settlement negotiations, discovery, trial, appeal or bankruptcy proceedings. 

 (c) Headings for Reference Only: The headings of the Sections and the Subsections herein are included solely for convenient reference and shall not control the meaning of the interpretation of any of the
provisions of this Agreement. 
 (d) Governing Law/Jurisdiction: This Agreement shall be construed in accordance
with and governed by the laws of the State of Florida. Any litigation involving the Parties and their rights and obligations hereunder shall be brought in the appropriate court in Alachua or Marion Counties, Florida. 
 (e) Severability: If any of the provisions of this Agreement shall be held invalid for any reason, the remainder of
this Agreement shall not be affected thereby and shall remain in full force and effect in accordance with the remainder of its terms. 
 (f) Entire Agreement: This Agreement and all other documents incorporated or referred to herein, contain the entire agreement of the Parties and there are no representations, inducements or other
provisions other than those expressed in writing herein. No modification, waiver or discharge of any provision or any breach of this Agreement shall be effective unless it is in writing signed by both Parties. A Party’s waiver of the other
Party’s breach of any provision of this Agreement, shall not operate, or be construed, as a waiver of any subsequent breach of that provision or of any other provision of this Agreement. 

 (g) Waiver: No course of conduct by Employer or Employee nor any delay or
omission of Employer or Employee to exercise any right or power given under this Agreement shall: (i) impair the subsequent exercise of any right or power; or (ii) be construed to be a waiver of any default or any acquiescence in, or
consent to, the curing of any default while any other default shall continue to exist, or be construed to be a waiver of such continuing default or of any other right or power that shall theretofore have arisen. Any power and/or remedy granted by
law or by this Agreement to any Party hereto may be exercised from time to time, and as often as may be deemed expedient. All such rights and powers shall be cumulative to the fullest extent permitted by law. 
 (h) Pronouns: As used herein, words in the singular include the plural, and the masculine include the feminine and
neuter gender, as appropriate. 
 (i) Recitals: The Recitals set forth at the beginning of this Agreement shall
be deemed to be incorporated into this Agreement by this reference as if fully set forth herein, and this Agreement shall be interpreted with reference to and in light of such Recitals. 
 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above. 
  

					
	EMPLOYEE	 	ALARION BANK
			
	 /s/ Jon M. Kurtz
	 	By:	 	 /s/ Loralee W. Miller

	Jon M. Kurtz	 		 	Chairman of the Board

 SCHEDULE A 
 Employee shall serve as the Bank’s President and Chief Executive Officer, through election by the Board. In such capacity, Employee shall have the same powers, duties and responsibilities of supervision and
management of the Bank usually accorded to the President and Chief Executive Officer of similar Florida financial institutions. In addition, Employee shall use his best efforts to perform the duties and responsibilities enumerated in this Agreement
and any other duties assigned to Employee by the Board and to utilize and develop contacts and customers to enhance the business of the Bank. Specifically, Employee shall devote his full business time and attention and use his best efforts to
accomplish and fulfill the following duties and responsibilities, as well as other duties assigned to Employee from time to time by the Board: 
  

	 	(i)	build and maintain a high quality management team; 

  

	 	(ii)	establish job descriptions for the Bank’s management team and employees; 

  

	 	(iii)	build and oversee the management of the Bank’s branch network; 

  

	 	(iv)	manage Bank personnel and ensure adequate management and employee training is provided; 

  

	 	(v)	establish a management succession plan and provide leadership that will result in management and employee stability; 

  

	 	(vi)	serve as a member of the Board of Directors, if and when elected to such a position; 

  

	 	(vii)	serve on such committees as appointed by the Board from time to time; 

  

	 	(viii)	keep the Board informed of important developments concerning the Bank, industry developments and regulatory initiatives affecting the Bank; 

  

	 	(ix)	supervise all lending and assist in proper underwriting, servicing and loan resolution; 

  

	 	(x)	establish and implement marketing efforts to increase the business of the Bank; 

  

	 	(xi)	coordinate with the Bank’s attorneys and accountants and other service providers to the extent necessary to further the business of the Bank, keeping in compliance with
government laws and regulations and otherwise keeping the Bank in as good a financial and legal posture as possible; 

  

	 	(xii)	maintain adequate expense records of Employee’s activities on the Bank’s behalf; and 

  

	 	(xiii)	conduct and undertake all other activities, responsibilities, and duties normally expected to be undertaken and accomplished by the President and Chief Executive Officer of a
financial institution similar in scope and operation to the Bank’s business. 

 The performance by Employee of all duties
outlined in this Schedule A shall be reviewed on an annual basis as provided in Section 1 of the Agreement. 

 SCHEDULE B 
 COMPENSATION 
  

	(1)	Base Salary: Employee shall receive an annual salary of $130,000 beginning at the time the Bank opens for business and an annual salary of $140,000 beginning on
the first anniversary thereof (the “Base Salary”). 

 Employer may adjust the Base Salary from time to time based upon
the Board’s evaluation of Employee’s performance. In no event, however, will the Base Salary be reduced without Employee’s written concurrence. 
  

	(2)	Performance Bonuses: Employee may receive an annual Performance Bonus at the discretion of the Board which shall not exceed 30% of the Base Salary.

  

	(3)	Vacation: Employee is entitled to four weeks paid vacation time per year on a non-cumulative basis. 

  

	(4)	Automobile: Employer shall provide Employee with the use of an automobile as approved by the Board. Employee shall be responsible for keeping appropriate
records reflecting the allocation of his usage of the automobile for federal income tax purposes. 

  

	(5)	Medical Benefits and Other Plans: Employee shall be permitted to participate in all medical and healthcare benefit plans provided by the Bank to its officers.
Employee shall also be permitted to participate in all other benefit plans offered to Bank officers. 

  

	(6)	Continuing Education: Employer will reimburse Employee for admission or attendance fees for pre-approved educational meetings or seminars offered by such
organizations as the Florida Bankers Association.

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