Document:

Exhibit 10.12

 

EMPLOYMENT
AGREEMENT

 

THIS
AGREEMENT is made as of the 30th day of March,
2010, by and among ATLANTIC SOUTHERN FINANCIAL GROUP, INC., a bank holding
company incorporated under the laws of the State of Georgia (the “Company”),
ATLANTIC SOUTHERN BANK, a bank chartered under the laws of the State of Georgia
(the “Bank”) (collectively, the Bank and the Company are referred to hereafter
as the “Employer”), and EDWARD P. LOOMIS, JR., a resident of the State of
Georgia (the “Employee”).

 

RECITALS:

 

WHEREAS, the Employer
desires to employ the Employee as Chief Executive Officer and President of the
Bank;

 

WHEREAS, the Employee
desires to accept employment as the Chief Executive Officer and President of
the Bank; and

 

WHEREAS, the parties
understand that this Agreement remains subject to the final decision of the
Federal Deposit Insurance Corporation (“FDIC”) not to disapprove the employment
of Employee as the Chief Executive Officer and/or President of the Bank.

 

NOW
THEREFORE, in consideration of the mutual agreements
hereinafter set forth, the parties hereby agree as follows:

 

1.             Definitions.  Whenever used in this
Agreement, the following terms and their variant forms shall have the meaning
set forth below:

 

1.1          “Affiliate” shall mean any
business entity which controls the Company, is controlled by or is under common
control with the Company.

 

1.2          “Agreement” shall mean
this Agreement and any exhibits incorporated herein together with any
amendments hereto made in the manner described in this Agreement.

 

1.3          “Area” shall mean the
geographic area within the boundaries of Bibb, Chatham, Crawford, Effingham,
Glynn, Houston, Lowndes, McIntosh and Peach Counties, Georgia.  It is the express intent of the Parties that
the Area as defined herein is the area where the Employee performs services on
behalf of the Employer under this Agreement.

 

1.4          “Business
of the Employer” shall mean the business conducted by the Employer,
which is commercial banking.

 

1.5          “Cause” shall mean:

 

1.5.1        With respect to termination by the Employer:

 

 

(a)           A material breach of the terms of this Agreement by
the Employee, including, without limitation, failure by the Employee to perform
his duties and responsibilities in the manner and to the extent required under
this Agreement, which remains uncured after the expiration of thirty (30) days
following the delivery of written notice of such breach to the Employee by the
Board of Directors of the Bank;

 

(b)           Conduct by the Employee that amounts to fraud,
dishonesty or willful misconduct in the performance of his duties and
responsibilities hereunder;

 

(c)           Arrest for, charged in relation to (by criminal
information, indictment or otherwise), or conviction of the Employee during the
Term of this Agreement of any felony or a crime involving breach of trust or
moral turpitude;

 

(d)           Conduct by the Employee that amounts to gross and
willful insubordination or inattention to his duties and responsibilities
hereunder; or

 

(e)           The receipt, after the effective date of this
Agreement, of any form of notice, written or otherwise, that any regulatory
agency having jurisdiction over the Employer intends to institute any form of
formal or informal regulatory action against the Employee or the Employer,
provided that the Board of Directors of the Bank determines in good faith that
such action involves acts or omissions by or under the supervision of the
Employee or that termination of the Employee could materially assist the
Employer in avoiding or reducing the restrictions or adverse effects to the
Employer related to the regulatory action.

 

1.5.2        With respect to termination by the Employee, a
material diminution in the powers, responsibilities or duties of the Employee
hereunder or a material breach of the terms of this Agreement by the Employer;
provided, however, that for a termination of employment by the Employee to be
for Cause, the Employee must notify the Employer in writing of the event giving
rise to Cause within thirty (30) days following the occurrence of the event (or
if later the Employee’s knowledge of occurrence of the event), the event must
remain uncured after the expiration of thirty (30) days following the delivery
of written notice of such event to the Employer by the Employee, and the
Employee must resign effective no later than sixty (60) days following the
Employer’s failure to cure the event.

 

1.6          “Competing
Business” shall mean any business, other than the Employer,
engaged in the Business of the Employer.

 

1.7          “Confidential
Information” means data and information relating to the Business
of the Employer (which does not rise to the status of a Trade Secret) which is
or has been disclosed to the Employee or of which the Employee became aware as
a consequence of or through the Employee’s relationship to the Employer and
which has value to the Employer and is not generally known to its
competitors.  Confidential Information
shall not include any data or information that has been voluntarily disclosed
to the public by the Employer (except where such 

 

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public
disclosure has been made by the Employee without authorization) or that has
been independently developed and disclosed by others, or that otherwise enters
the public domain through lawful means.

 

1.8          “Disability
Period” means a period, beginning
on the date the Employer determines that the Employee is subject to a Permanent
Disability and ending on the earlier of the date the Employee begins receiving
income replacement benefits under any long term disability plan or policy
maintained by the Employer or the date that is six (6) months after such
determination, during which the Employee remains subject to a Permanent
Disability.”

 

1.9          “Effective
Date” shall mean March 30, 2010.

 

1.10        “Employer
Information” means Confidential Information and Trade Secrets.

 

1.11        “Initial
Term” shall mean that period of time commencing on the
Effective Date and running until the earlier of the close of business on the
last business day immediately preceding the second anniversary of the Effective
Date or any termination of employment of the Employee under this Agreement as
provided for in Section 3.

 

1.12        “Permanent
Disability” shall mean the total inability of the Employee to
perform his duties under this Agreement as certified by a physician chosen by
the Employer for the duration of the short-term disability period under the
Employer’s policy then in effect or, if no such policy is then in effect, under
the Employer’s policy most recently in effect.

 

1.13        “Separation
from Service” shall mean a termination of the Employee’s
employment with the Employer and all affiliated companies that, together with
the Employer, constitute the “service recipient” within the meaning of Code Section 409A
and the regulations thereunder that constitutes a “separation from service”
within the meaning of Code Section 409A and the regulations thereunder.

 

1.14        “Term” shall mean the
Initial Term and all subsequent renewal periods.

 

1.15        “Trade
Secrets” means Employer information including, but not
limited to, technical or nontechnical data, formulas, patterns, compilations,
programs, devices, methods, techniques, drawings, processes, financial data,
financial plans, product plans or lists of actual or potential customers or
suppliers which (a) derives economic value, actual or potential, from not
being generally known to, and not being readily ascertainable by proper means
by, other persons who can obtain economic value from its disclosure or use; and
(b) is the subject of efforts that are reasonable under the circumstances
to maintain its secrecy.

 

2.             Duties.

 

2.1          Position.  The Employee is employed as
the Chief Executive Officer and President of the Bank and, subject to the
direction of the Board of Directors of the Bank, shall perform and discharge
well and faithfully the duties which may be assigned to him from time to time.

 

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2.2          Full-Time
Status. 
In addition to the duties and responsibilities specifically assigned to
the Employee pursuant to Section 2.1 hereof, the Employee shall:  (a) devote substantially all of his
time, energy and skill during regular business hours to the performance of the
duties of his employment (reasonable vacations and reasonable absences due to
illness excepted) and faithfully and industriously perform such duties; (b) diligently
follow and implement all management policies and decisions communicated to him
by the Board of Directors of the Bank; and (c) timely prepare and forward
to the Board of Directors of the Bank all reports and accounting as may be requested
of the Employee.

 

2.3          Permitted
Activities.  The Employee shall devote his entire business
time, attention and energies to the Business of the Employer and shall not
during the Term be engaged (whether or not during normal business hours) in any
other business or professional activity, whether or not such activity is
pursued for gain, profit or other pecuniary advantage; but this shall not be
construed as preventing the Employee from (a) investing his personal
assets in businesses which (subject to clause (b) below) are not in
competition with the Business of the Employer and which will not require any
services on the part of the Employee in their operation or affairs and in which
his participation is solely that of an investor, (b) purchasing securities
in any corporation whose securities are regularly traded provided that such
purchase shall not result in him collectively owning beneficially at any time
five percent (5%) or more of the equity securities of any business in
competition with the Business of the Employer; and (c) participating in
civic and professional affairs and organizations and conferences, preparing or
publishing papers or books or teaching so long as the Board of Directors of the
Bank approves of such activities prior to the Employee’s engaging in them.

 

3.             Term and
Termination.

 

3.1          Term.  This Agreement shall remain in
effect for the Term.  If the Agreement is
in effect at the end of the Initial Term, the Term shall be renewed
automatically for successive twelve-month periods unless and until one party
gives written notice to the other of its or his intent not to extend this
Agreement with such written notice to be given not less than ninety (90) days
prior to the end of the Initial Term or any such twelve-month period.  In the event
such notice of non-extension is properly given, this Agreement shall terminate
at the end of the remaining Term then in effect, subject to earlier termination
in connection with the termination of the Employee’s employment pursuant
to Section 3.2 hereof.

 

3.2          Termination.  During the Term, the employment
of the Employee under this Agreement may be terminated only as follows:

 

3.2.1        By the Employer:

 

(a)           Upon the Employer’s receipt of notice, written or
otherwise, from the FDIC to the effect that it disapproves of the Employee’s
continuing employment as the President and/or Chief Executive Officer of the
Bank;

 

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(b)           For Cause upon written notice to the Employee
pursuant to Section 1.5.1 hereof; or

 

(c)           Upon the Permanent Disability of Employee at any
time.

 

3.2.2        By the Employee:

 

(a)           For Cause, upon written notice to the Employer
pursuant to Section 1.5.2 hereof; or

 

(b)           Without Cause, provided that the Employee shall give
the Employer sixty (60) days’ prior written notice of his intent to terminate.

 

3.2.3        At any time
upon mutual, written agreement of the parties.

 

3.2.4        Upon expiration of the Term.

 

3.2.5        Notwithstanding anything in this Agreement to the
contrary, the Term shall end automatically upon the Employee’s death.

 

3.3          Effect
of Termination.

 

3.3.1        Upon termination of the Employee’s employment
hereunder for any reason, the Employer shall have no further obligation to the
Employee or the Employee’s estate with respect to this Agreement, except for the
payment of any amounts earned and unpaid under Section 4 on the effective
date of termination of employment and any obligations reflected by the terms of
the retirement arrangement contemplated by Section 4.4.

 

3.3.2        Termination of
the employment of the Employee pursuant to Section 3 shall be without
prejudice to any right or claim which may have previously accrued to either the
Employer or the Employee hereunder and shall not terminate, alter, supersede or
otherwise affect the terms and covenants and the rights and duties prescribed
in this Agreement.

 

3.3.3        Notwithstanding
any provision in the Agreement to the contrary, to the extent necessary to
avoid the imposition of tax on the Employee under Code Section 409A, any
payments that are otherwise payable to the Employee, whether under this
Agreement or otherwise, within the first six (6) months following the
effective date of the Employee’s Separation from Service, shall be suspended
and paid as soon as practicable following the end of the six-month period
following such effective date if, immediately prior to the Employee’s
Separation from Service, the Employee is determined to be a “specified employee”
(within the meaning of Code Section 409A(a)(2)(B)(i)) of the Employer (or
any related “service recipient” within the meaning of Code Section 409A
and the regulations thereunder).  Any
payments suspended by operation of the foregoing sentence shall be paid as a
lump sum in the seventh month following such effective date.  Payments (or portions thereof) that would be
paid latest in time during the six-month period will be suspended first.

 

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3.4          Regulatory
Actions and Limitations.

 

3.4.1        Notwithstanding anything contained in this Agreement
to the contrary, no payments shall be made pursuant to Section 3 or any
other provision herein in contravention of the golden parachute payment and
indemnification payment restrictions contained in regulations adopted pursuant
to Section 18(k) of the Federal Deposit Insurance Act (the “FDIA”)
(12 U.S.C. 1828(k)).

 

3.4.2        If the Employee is removed from office and/or
permanently prohibited from participating in the conduct of the affairs of any
depository institution by an order issued under Section 8(e) or 8(g) of
the FDIA (12 U.S.C. 1818(e) and (g)), the Employer shall have the right to
terminate all obligations of the Employer under this Agreement as of the
effective date of such order, except for the payment of Base Salary due and
owing under Section 4.1 on the effective date of said order, and
reimbursement under Section 4.6 of expenses incurred as of the effective
date of termination.

 

3.4.3        If the Employee is suspended from office and/or
temporarily prohibited from participating in the conduct of the affairs of any
depository institution by a notice served under Section 8(e) or 8(g) of
the FDIA (12 U.S.C. 1818(e) and (g)), the Employer shall have the right to
suspend all obligations of the Employer under this Agreement as of the date of
service, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed,
the Employer shall reinstate prospectively (in whole or in part) any of its
obligations which were suspended.

 

3.4.4        If the FDIC is appointed receiver or conservator
under Section 11(c) of the FDIA (12 U.S.C. 1821(c)) of the Employer
or any depository institution controlled by the Employer, the Employer shall
have the right to terminate all obligations of the Employer under this
Agreement as of the date of such receivership or conservatorship, other than
any rights of the Employee that vested prior to such appointment.  To the extent the Employer is or encompasses
a depository institution, any vested rights of the Employee may be subject to
such modifications that are consistent with the authority of the FDIC.

 

3.4.5        If the FDIC provides open bank assistance under Section 13(c) of
the FDIA (12 U.S.C. 1823(c)) to the Employer or any depository institution
controlled by the Employer, but excluding any such assistance provided to the
industry generally, the Employer shall have the right to terminate all
obligations of the Employer under this Agreement as of the date of such
assistance, other than any rights of the Employee that vested prior to the FDIC
action.  To the extent the Employer is or
encompasses a depository institution, any vested rights of the Employee may be
subject to such modifications that are consistent with the authority of the
FDIC.

 

3.4.6        If the FDIC requires a transaction under Section 13(f) or
13(k) of the FDIA (12 U.S.C. 1823(f) and (k)) by the Employer or any
depository institution controlled by the Employer, the Employer shall have the
right to terminate all obligations of the Employer under this Agreement as of
the date of such transaction, other than any rights of the Employee that vested
prior to the transaction.  To the extent
the Employer is or 

 

6

 

encompasses
a depository institution, any vested rights of the Employee may be subject to
such modifications that are consistent with the authority of the FDIC.

 

4.             Compensation.  The Employee shall receive the
following salary and benefits during the Term:

 

4.1          Base Salary.  Employee’s
annual base salary shall be Two Hundred Thousand Dollars ($200,000.00) (the “Base
Salary”).  The Employee’s Base Salary
shall be reviewed by the Board of Directors of the Bank or its designee
annually, and shall be adjusted annually thereafter by such amount, if any, as
may be determined by the Board of Directors of the Bank or its designee in
their sole discretion.  Base Salary shall
be payable in accordance with the Employer’s normal payroll practices.

 

4.2          Restricted
Stock.  As soon as practicable following the
execution of this Agreement, Employee shall be granted a restricted stock award
reflecting the right to earn up to Sixty-Eight Thousand Nine Hundred Sixty-Five
(68,965) shares of the common stock of the Company.  The restricted stock award shall be subject
to such other terms and conditions of a separate agreement between the Company
and the Employee.

 

4.3          Incentive
Compensation.  The Employee shall be
entitled to annual bonus compensation, if any, as determined by the Board of
Directors of the Bank pursuant to any incentive compensation program as may be
adopted from time to time (“Incentive Compensation”). 
Any Incentive Compensation earned shall be payable in
the year following the year in which the Incentive Compensation is earned in
accordance with the Employer’s normal practices for the payment of short-term
incentives.  To be entitled to any payment
of Incentive Compensation from the Employer, the Employee must be employed by
the Employer on the date such payment is made. 
The payment of any Incentive Compensation shall be subject to any
approvals required by any regulator of the Employer.

 

4.4          SERP.  The Bank shall establish a
supplemental retirement arrangement for the Employee the terms of which shall
be governed by the terms of a separate agreement between the parties.

 

4.5          Automobile.  The Bank will provide the
Employee with an automobile allowance to be used by the Employee for business
and personal purposes.

 

4.6          Business
Expenses:  Memberships.  The Bank specifically agrees
to reimburse the Employee for (a) reasonable business (including travel)
expenses incurred by him in the performance of his duties hereunder, as
approved from time to time by the Board of Directors of the Bank, and (b) the
reasonable dues and business related expenditures, including initiation fees,
associated with membership in a single country club and a single civic association
both as selected by the Employee and in professional associations which are
commensurate with his position; provided, however, that the Employee shall, as
a condition of reimbursement, submit verification of the nature and amount of
such expenses in accordance with reimbursement policies from time to time
adopted by the Bank and in sufficient detail to comply with rules and
regulations promulgated by the Internal Revenue Service.

 

7

 

4.7          Vacation.  On a non-cumulative basis,
the Employee shall be entitled to three (3) weeks of vacation in each
successive twelve-month period during the Term, during which his compensation
shall be paid in full.  Employee will
endeavor to take at least two consecutive weeks each year for vacation, the
other vacation to be taken at the time the Employee determines appropriate,
taking into account the requirements of the Bank.

 

4.9          Disability.  In the event the Bank determines that the
Employee is subject to a condition that constitutes a Permanent Disability, the
Bank shall pay the Employee pursuant to any short-term disability policy
maintained by the Bank or, if no such short term disability policy is
maintained by the Bank, shall continue paying the Employee the compensation and
benefits provided under Section 4 for the Disability Period without regard
to his continuing ability to discharge his duties pursuant to Section 2.

 

4.10        Reimbursement
of Expenses.  All
expenses eligible for reimbursement under this Agreement must be incurred by
the Employee during the Term of this Agreement to be eligible for
reimbursement.  Any in-kind benefits
provided for by this Agreement must be provided by the Bank during the Term of
this Agreement.  The amount of taxable
reimbursable expenses incurred, and the amount of in-kind benefits provided, in
one taxable year shall not affect the expenses eligible for reimbursement, or
in-kind benefits provided, in any other taxable year.  All taxable reimbursements shall be paid as
soon as administratively practicable, but in no event shall any taxable
reimbursement be paid after the last day of the calendar year following the
calendar year in which the expense was incurred.  Neither the right to reimbursement nor the
in-kind benefits provided are subject to liquidation or exchanges for other
benefits.

 

4.11        Benefits.  In addition to the benefits
specifically described herein, the Employee shall be entitled to such benefits
as may be available from time to time for executives of the Bank similarly
situated to the Employee.  All such
benefits shall be awarded and administered in accordance with the Bank’s
standard policies and practices.  Such
benefits may include, by way of example only, profit sharing plans, retirement
or investment funds, dental, health, life and disability insurance benefits and
such other benefits as the Bank deems appropriate.  The Bank makes no representation to the
Employee regarding the taxability or nontaxability of any benefits provided under
Section 4.

 

4.12        Withholding.  The Bank may deduct from each
payment of compensation hereunder all amounts required to be deducted and
withheld in accordance with applicable federal and state income, FICA and other
withholding requirements.

 

5.             Employer
Information.

 

5.1          Ownership
of Information.  All Employer Information
received or developed by the Employee while employed by the Employer will
remain the sole and exclusive property of the Employer.

 

5.2          Obligation
of the Employee.   The Employee agrees (a) to hold Employer
Information in strictest confidence, and (b) not to use, duplicate,
reproduce, distribute, disclose

 

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or
otherwise disseminate Employer Information or any physical embodiments thereof
and may in no event take any action causing or fail to take any action
necessary in order to prevent any Employer Information from losing its
character or ceasing to qualify as Confidential Information or a Trade
Secret.  In the event that the Employee
is required by law to disclose any Employer Information, the Employee will not
make such disclosure unless (and then only to the extent that) the Employee has
been advised by independent legal counsel that such disclosure is required by
law and then only after prior written notice is given to the Employer when the
Employee becomes aware that such disclosure has been requested and is required
by law.  This Section 5 shall
survive for a period of twenty-four (24) months following termination of this
Agreement for any reason with respect to Confidential Information, and shall
survive termination of this Agreement for any reason for so long as is
permitted by the then-current Georgia Trade Secrets Act of 1990, O.C.G.A. §§
10-1-760 — 10-1-767, with respect to Trade Secrets.

 

5.3          Delivery
upon Request or Termination.  Upon request by the Employer, and in any
event upon termination of his employment with the Employer, the Employee will
promptly deliver to the Employer all property belonging to the Employer,
including, without limitation, all Employer Information then in his possession
or control.

 

6.             Non-Solicitation
of Employees.  The
Employee agrees that during his employment by the Employer hereunder and, in
the event of his termination, regardless of the reason, for a period of twelve
(12) months thereafter, he will not, within the Area, on his own behalf or in
the service or on behalf of others, solicit, recruit or hire away or attempt to
solicit, recruit or hire away, any employee of the Bank or its Affiliates to a
Competing Business, whether or not:

 

·                  such employee is a full-time employee or a
temporary employee of the Employer,

·                  such employment is pursuant to written
agreement, or

·                  such employment is for a determined period or
is at will.

 

7.             Remedies.  The Employee agrees that the
covenants contained in Sections 5 and 6 of this Agreement are of the essence of
this Agreement; that each of the covenants is reasonable and necessary to
protect the business, interests and properties of the Employer; and that
irreparable loss and damage will be suffered by the Employer should he breach
any of the covenants.  Therefore, the
Employee agrees and consents that, in addition to all the remedies provided by
law or in equity, the Employer shall be entitled to a temporary restraining
order and temporary and permanent injunctions to prevent a breach or
contemplated breach of any of the covenants. 
The Employer and the Employee agree that all remedies available to the
Employer or the Employee, as applicable, shall be cumulative.

 

8.             Severability.  The parties agree that each
of the provisions included in this Agreement is separate, distinct and
severable from the other provisions of this Agreement and that the invalidity
or unenforceability of any Agreement provision shall not affect the validity or
enforceability of any other provision of this Agreement.  Further, if any provision of this Agreement
is ruled invalid or unenforceable by a court of competent jurisdiction because
of a conflict between the provision and any applicable law or public policy,
the provision shall be redrawn to make the provision consistent with and valid
and enforceable under the law or public policy.

 

9

 

9.             No Set-Off
by the Employee.  The existence of any claim, demand, action or
cause of action by the Employee against the Employer, or any Affiliate of the
Employer, whether predicated upon this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Employer of any of its rights
hereunder.

 

10.          Notice.  All notices and other
communications required or permitted under this Agreement shall be in writing
and, if mailed by prepaid first-class mail or certified mail, return receipt
requested, shall be deemed to have been received on the earlier of the date
shown on the receipt or three (3) business days after the postmarked date
thereof.  In addition, notices hereunder
may be delivered by hand, facsimile transmission or overnight courier, in which
event the notice shall be deemed effective when delivered or transmitted.  All notices and other communications under
this Agreement shall be given to the parties hereto at the following addresses:

 

(i)            If to the Employer, to it
at:

 

Atlantic
Southern Bank

1701
Bass Road

Macon,
GA  31210

Attn:  Chairman, Board of Directors

 

(ii)           If to the Employee, to him
at:

 

 

11.          Assignment.  This Agreement is generally not
assignable by the Employer except that the rights and obligations of the
Employer under this Agreement shall inure to the benefit of and shall be
binding upon the successors and assigns of the Employer.  The Agreement is a personal contract and the
rights and interests of the Employee may not be assigned by him.  This Agreement shall inure to the benefit of
and be enforceable by the Employee and his personal or legal representatives, executors,
administrators, successors, heirs, distributes, devisees and legatees.

 

12.          Waiver.  A waiver by the Employer of any
breach of this Agreement by the Employee shall not be effective unless in
writing, and no waiver shall operate or be construed as a waiver of the same or
another breach on a subsequent occasion.

 

13.          Arbitration.  Any controversy or claim
arising out of or relating to this contract, or the breach thereof, shall be
settled by binding arbitration in accordance with the Commercial Arbitration Rules of
the American Arbitration Association. 
Judgment upon the award rendered by the arbitrator may be entered only
in any state court located in Bibb County, Georgia or the United States
District Court for the Middle District of Georgia.  The Employer and the Employee agree to share
equally the fees and expenses associated with the arbitration proceedings.

 

Employee
must initial here:  

 

10

 

14.          Attorneys’
Fees.  In the event that the parties have complied
with this Agreement with respect to arbitration of disputes and litigation
ensues between the parties concerning the enforcement of an arbitration award,
the party prevailing in such litigation shall be entitled to receive from the
other party all reasonable costs and expenses, including without limitation
attorneys’ fees, incurred by the prevailing party in connection with such
litigation, and the other party shall pay such costs and expenses to the
prevailing party within sixty (60) days after a final determination (excluding
any appeals) is made with respect to the litigation.

 

15.          Applicable
Law and Choice of Forum.  This Agreement shall be
construed and enforced under and in accordance with the laws of the State of
Georgia.  The
parties agree that any appropriate state court located in Bibb County, Georgia  or federal court for the Middle District of Georgia  shall have exclusive jurisdiction of any case or
controversy arising under or in connection with Sections 5 through 7 of this
Agreement and shall be a proper forum in which to adjudicate such case or
controversy.  The parties consent and
waive any objection to the jurisdiction or venue of such courts.

 

16.          Interpretation.  Words importing any gender
include all genders.  Words importing the
singular form shall include the plural and vice versa.  The terms “herein”, “hereunder”, “hereby”, “hereto”,
“hereof” and any similar terms refer to this Agreement.  Any captions, titles or headings preceding
the text of any article, section or subsection herein are solely for
convenience of reference and shall not constitute part of this Agreement or
affect its meaning, construction or effect.

 

17.          Entire
Agreement.  This Agreement embodies the entire and final
agreement of the parties on the subject matter stated in the Agreement.  No amendment or modification of this
Agreement shall be valid or biding upon the Employer or the Employee unless
made in writing and signed by both parties. 
All prior understandings and agreements relating to the subject matter of
this Agreement are hereby expressly terminated.

 

18.          Rights of
Third Parties. 
Nothing herein expressed is intended to or shall be construed to confer
upon or give to any person, firm or other entity, other than the parties hereto
and their permitted assigns, any rights or remedies under or by reason of this
Agreement.

 

19.          Survival.  The obligations of the Employee
pursuant to Sections 5 and 6 shall survive the termination of the employment of
the Employee hereunder for the period designated under each of those respective
sections.

 

20.          Representation Regarding
Restrictive Covenants.  The
Employee represents that he is not and will not become a party to any
noncompetition or nonsolicitation agreement or any other agreement which would
prohibit him from entering into this Agreement or providing the services for
the Employer contemplated by this Agreement on or after the Effective
Date.  In the event the Employee is
subject to any such agreement, this Agreement shall be rendered null and void
and the Bank shall have no obligations to the Employee under this Agreement.

 

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IN WITNESS WHEREOF, the Employer and the
Employee have executed and delivered this Agreement as of the date first shown
above.

 

	
   

  	
  THE
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  ATLANTIC SOUTHERN FINANCIAL GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William A. Fickling, III

  
	
   

  	
  Print
  Name:

  	
  William
  A. Fickling, III

  
	
   

  	
  Title:

  	
  Chairman
  

  
	
   

  	
   

  
	
   

  	
  THE
  BANK:

  
	
   

  	
   

  
	
   

  	
  ATLANTIC SOUTHERN BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William A. Fickling, III

  
	
   

  	
  Print
  Name:

  	
  William
  A. Fickling, III

  
	
   

  	
  Title:

  	
  Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  /s/
  Edward P. Loomis, Jr.

  
	
   

  	
  EDWARD
  P. LOOMIS, JR.

  

 

12Exhibit 10.13

 

SUPPLEMENTAL
EXECUTIVE

RETIREMENT AGREEMENT

 

 

This Supplemental
Executive Retirement Agreement (this “Agreement”) is made as of the 30th day of March,
2010, by and between Atlantic Southern Bank, a bank chartered under the laws of
the State of Georgia (the “Employer”), and Ed Loomis, a resident of the State
of Georgia (“Executive”).

 

R  E  C  I  T  A
L  S:

 

WHEREAS,
the Employer desires to provide Executive with an incentive to accept
employment with, and to continue in the employ of, the Employer;

 

WHEREAS,
to that end, Employer desires to make available to Executive the supplemental
retirement benefit opportunity set forth in this Agreement; and

 

WHEREAS,
the Executive desires to accept the arrangement described herein.

 

NOW,
THEREFORE, the parties hereto, for and in consideration of the mutual promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, intending to be legally bound
hereby, do agree as follows:

 

1.             Supplemental Retirement
Benefit Obligation.  Employer hereby
establishes an unfunded retirement arrangement, the obligations under which
shall be reflected on the general ledger of the Employer (the “Retirement
Account”).  The Retirement Account shall
be an unsecured liability of the Employer to Executive, payable only as
provided herein from the general funds of the Employer.  The Retirement Account is not a deposit or
insured by the Federal Deposit Insurance Corporation and does not constitute a
trust account or any other special obligation of the Employer and does not have
priority of payment over any other general obligations of the Employer.

 

2.             Payment of Benefits.

 

(a)           Normal Retirement.  If Executive remains in the continual
employment of the Employer (except for approved leaves of absence) until
attaining at least age sixty-five (65) (the “Normal Retirement Age”), then upon
the date on which Executive’s employment with the Employer terminates for any
reason (the “Retirement Date”), the Employer shall pay to Executive the Normal
Retirement Benefit (as hereinafter defined) for fifteen (15) years, payable in
monthly installments beginning on the first business day of the first calendar
month falling on or after the Retirement Date. 
For the purposes of this Agreement, the monthly amount of the “Normal
Retirement Benefit” shall be Nine Thousand One Hundred and Sixty-Seven Dollars
($9,167.00).

 

 

(b)           Termination Prior to
Normal Retirement Age.  If the
Employer involuntarily discharges Executive other than for Cause (as
hereinafter defined) prior to Normal Retirement Age or the Executive resigns
prior to Normal Retirement Age, the Employer shall pay to Executive an amount
equal to the Accrual Balance (as shown on Exhibit A attached hereto) for
the calendar month immediately preceding the calendar month in which the
involuntary discharge or resignation occurs. 
The Accrual Balance amount shall be payable monthly over a twenty-four
(24) month period, beginning on the first business day of the first calendar
month falling on or after Executive’s involuntary termination or resignation,
as the case may be.  For purposes of this
Agreement, the term “Cause” shall have the same meaning given to the same term
in the Employment Agreement between the parties as may be in effect from time
to time; provided, however, if any such Employment Agreement ceases to exist,
then the term shall have the same meaning given the same term the last time
such term was used in any such Employment Agreement.

 

(c)           Disability.  If Executive becomes Permanently Disabled (as
hereinafter defined) before Executive’s Normal Retirement Age and Executive is
involuntarily discharged or resigns thereafter, Executive shall be treated as
though Executive had been involuntarily discharged as of the effective date of
such termination or resignation.  The
amount and timing of benefit payments shall be determined in the same manner as
provided in Section 2(b) above. 
For purposes of this Section 2(c), the term “Permanently Disabled”
shall mean by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than twelve (12) months that results in
Executive (i) being unable to engage in any substantial gainful activity;
or (ii) receiving income replacement benefits for a period of not less
than three (3) months under the Employer’s long-term disability plan
covering Executive.  The determination of
whether Executive is Permanently Disabled shall be made by the Employer.

 

(d)           Death.  If Executive dies while in the employ of the
Employer but before any benefit payments are scheduled to commence under any
other provision of this Agreement, the Executive shall be treated as though
Executive had been involuntarily discharged as of the date of death.  The amount and timing of benefit payments to
the Executive’s beneficiary shall be determined in the same manner as provided
in Section 2(b) above.   If
Executive dies after any benefit payments are scheduled to commence under any
other provision of this Agreement, the beneficiary of Executive shall receive
the amounts that otherwise would have been paid to Executive.  For purposes of this Agreement, Executive
shall designate his beneficiary in writing to the Employer pursuant to
procedures as may be established from time to time; provided, however, if no
such designation has been made or if the beneficiary predeceases Executive, the
beneficiary of Executive under this Agreement shall be Executive’s spouse, if
any, then, if there is no surviving spouse, the beneficiary shall be Executive’s
estate.

 

(e)           Forfeiture of Benefits.  If the Executive experiences a termination of
employment with the Employer prior to Normal Retirement Age for any reason,
other 

 

2

 

than the
events described in Subsections (b), (c) and (d) above, no benefits
shall be paid under this Agreement.

 

(f)            Temporary
Suspension Applicable to a Specified Employee.  Notwithstanding the
foregoing provisions of this Section 2, if Executive is a “specified
employee,” within the meaning of Section 409A of the Internal Revenue Code
and the regulations thereunder (the “Code”), as of the date of Executive’s
termination of employment with the Employer other than by reason of death,
payment of benefit amounts otherwise due shall be delayed to the extent
necessary until the later of six (6) months after termination of
employment or the date the payments would otherwise be made under Section 2(a),
(b) or (c), as applicable.  Any
payments that are so delayed shall be paid in one lump sum in cash in the
seventh month following the termination of employment.

 

(g)           Separation
from Service.  For
purposes of this Section 2, the terms “terminates,” “discharged,” “resigns,”
and similar terminology all refer to the Executive’s separation from service
with the Employer as contemplated under Section 409A(a)(2)(A)(i) of
the Code.

 

3.             Amendment; Termination.  This Agreement may be
amended only by a written agreement signed by the Employer and the
Executive.  The Employer may unilaterally
amend the Agreement to conform with written directives to the Employer to
comply with legislative changes or tax law, including, without limitation, Section 409A
of the Code and any and all Treasury regulations and guidance promulgated
thereunder.  No amendment shall provide
for or otherwise permit any acceleration of the time or schedule of any payment
under the Agreement in a manner that would be prohibited under Section 409A(a)(3) of
the Code.  No waiver of any
provision contained in this Agreement shall be effective unless it is in
writing and signed by the party against whom such waiver is asserted.  The Employer may, at any time, terminate the
Agreement except that no Agreement termination may reduce the Executive’s
earned benefit.  Except as provided in
this Section 3, the termination of the Agreement shall not cause a
distribution of benefits.  Rather, after
such termination, benefit distributions will be made in accordance with Section 2.  Notwithstanding the preceding provisions of
this Section 3, the Employer may elect to terminate the Agreement under
any circumstances permitted by Treasury Regulations Section 1.409A-3(j)(4)(ix).  In any such event, the Employer shall
distribute the Executive’s benefits, determined as of the date of the
termination of the Agreement, to the Executive in a lump sum at the earliest
date permitted under such Treasury guidance.

 

4.             ERISA Provisions.

 

(a)           Plan Administrator Duties.  This Agreement shall be administered by the Board
of Directors of the Employer (“Board of Directors”), or such committee or
person(s) as the Board of Directors shall appoint.  The Board of Directors, in its capacity as
the “administrator” of the Agreement for purposes of the Employee Retirement Security
Act of 1974, as amended (“ERISA”), shall have the discretion
and authority to (i) make, amend, interpret and enforce all appropriate rules and
regulations for the 

 

3

 

administration
of this Agreement and (ii) decide or resolve any and all questions
including interpretations of this Agreement, as may arise in connection with
the Agreement. The decision or action of
the Board of Directors (or its delegatee) with respect to any question arising
out of or in connection with the administration, interpretation and application
of the Agreement and the rules and regulations promulgated hereunder shall
be final and conclusive and binding upon all persons having any interest in the
Agreement.  The “Named Fiduciary” under
the Agreement is the Employer.

 

(b)           Claims Procedures.

 

(i)            Notice of Denial.  If Executive or a beneficiary (a “claimant”)
is denied a claim for benefits under this Agreement, the Claims Administrator
shall provide to the claimant written notice of the denial within ninety (90)
days (forty-five (45) days with respect to a denial of any claim for benefits
due to Executive being Permanently Disabled) after the Claims Administrator
receives the claim, unless special circumstances require an extension of time
for processing the claim.  If such an
extension of time is required, written notice of the extension shall be
furnished to the claimant prior to the termination of the initial 90-day
period.  In no event shall the extension
exceed a period of ninety (90) days (thirty (30) days with respect to a claim
for benefits due to Executive being Permanently Disabled) from the end of such
initial period.  With respect to a claim
for benefits due to Executive being Permanently Disabled, an additional
extension of up to thirty (30) days beyond the initial 30-day extension period
may be required for processing the claim. 
In such event, written notice of the extension shall be furnished to the
claimant within the initial 30-day extension period.  Any extension notice shall indicate the
special circumstances requiring the extension of time, the date by which the
Claims Administrator expects to render the final decision, the standards on
which entitlement to benefits are based, the unresolved issues that prevent a
decision on the claim and the additional information needed to resolve those
issues.

 

(ii)           Contents of Notice of Denial.  If a claimant is denied a claim for benefits
under this Agreement, the Claims Administrator shall provide to such claimant
written notice of the denial which shall set forth:

 

(1)           the specific reasons for the denial;

 

(2)           specific references to the
pertinent provisions of this Agreement on which the denial is based;

 

(3)           a description of any
additional material or information necessary for the claimant to perfect the
claim and an explanation of why such material or information is necessary;

 

4

 

(4)           an explanation of this
Agreement’s claim review procedures, and the time limits applicable to such
procedures, including a statement of the claimant’s right to bring a civil
action under Section 502(a) of ERISA following an adverse benefit
determination on review;

 

(5)           in the case of a claim for benefits due to Executive
being Permanently Disabled, if an internal rule, guideline, protocol or other
similar criterion is relied upon in making the adverse determination, either
the specific rule, guideline, protocol or other similar criterion; or a
statement that such rule, guideline, protocol or other similar criterion was
relied upon in making the decision and that a copy of such rule, guideline,
protocol or other similar criterion will be provided free of charge upon
request; and

 

(6)           in the case of a claim for benefits due to Executive
being Permanently Disabled, if a denial of the claim is based on a medical
necessity or experimental treatment or similar exclusion or limit, an
explanation of the scientific or clinical judgment for the denial, an
explanation applying the terms of this Agreement to the claimant’s medical
circumstances or a statement that such explanation will be provided free of
charge upon request.

 

(iii)          Right to Review.  After receiving written notice of the denial
of a claim, a claimant or his representative shall be entitled to:

 

(1)           request a full and fair
review of the denial of the claim by written application to the Claims
Administrator (or Appeals Fiduciary in the case of a claim for benefits payable
due to Executive being Permanently Disabled);

 

(2)           request, free of charge,
reasonable access to, and copies of, all documents, records, and other
information relevant to the claim;

 

(3)           submit written comments,
documents, records, and other information relating to the denied claim to the
Claims Administrator or Appeals Fiduciary, as applicable; and

 

(4)           a review that takes into
account all comments, documents, records, and other information submitted by
the claimant relating to the claim, without regard to whether such information
was submitted or considered in the initial benefit determination.

 

5

 

(iv)          Application for Review.

 

(1)           If a claimant wishes a
review of the decision denying his claim to benefits under this Agreement,
other than a claim described in paragraph (2) of this Section 4(b)(iv),
he must submit the written application to the Claims Administrator within sixty
(60) days after receiving written notice of the denial.

 

(2)           If the claimant wishes a
review of the decision denying his claim to benefits under this Agreement due
to Executive being Permanently Disabled, he must submit the written application
to the Appeals Fiduciary within one hundred eighty (180) days after receiving
written notice of the denial.  With
respect to any such claim, in deciding an appeal of any denial based in whole
or in part on a medical judgment (including determinations with regard to
whether a particular treatment, drug, or other item is experimental,
investigational, or not medically necessary or appropriate), the Appeals
Fiduciary shall

 

(A)          consult with a health care professional who has
appropriate training and experience in the field of medicine involved in the
medical judgment; and

 

(B)           identify the medical and vocational experts whose
advice was obtained on behalf of this Agreement in connection with the denial
without regard to whether the advice was relied upon in making the
determination to deny the claim.

 

Notwithstanding
the foregoing, the health care professional consulted pursuant to this Section 4(b)(iv) shall
be an individual who was not consulted with respect to the initial denial of
the claim that is the subject of the appeal or a subordinate of such
individual.

 

(v)           Hearing.  Upon receiving such written application for
review, the Claims Administrator or Appeals Fiduciary, as applicable, may
schedule a hearing for purposes of reviewing the claimant’s claim, which
hearing shall take place not more than thirty (30) days from the date on which
the Claims Administrator or Appeals Fiduciary received such written application
for review.

 

(vi)          Notice of Hearing.  At least ten (10) days prior to the
scheduled hearing, the claimant and his representative designated in writing by
him, if any, shall receive written notice of the date, time, and place of such
scheduled hearing.  The claimant or his representative, if any, may
request that the hearing be rescheduled, for his convenience, on another
reasonable date or at another reasonable time or place.

 

6

 

(vii)         Counsel.  All claimants requesting a review of the
decision denying their claim for benefits may employ counsel for purposes of
the hearing.

 

(vii)         Decision on Review.  No later than sixty (60) days (forty-five
(45) days with respect to a claim for benefits due to Executive being
Permanently Disabled) following the receipt of the written application for
review, the Claims Administrator or the Appeals Fiduciary, as applicable, shall
submit its decision on the review in writing to the claimant involved and to
his representative, if any, unless the Claims Administrator or Appeals
Fiduciary determines that special circumstances (such as the need to hold a
hearing) require an extension of time, to a day no later than one hundred
twenty (120) days (ninety (90) days with respect to a claim for benefits due to
Executive being Permanently Disabled) after the date of receipt of the written
application for review.  If the Claims
Administrator or Appeals Fiduciary determines that the extension of time is
required, the Claims Administrator or Appeals Fiduciary shall furnish to the
claimant written notice of the extension before the expiration of the initial
sixty (60) day (forty-five (45) days with respect to a claim for benefits due
to Executive being Permanently Disabled) period.  The extension notice shall indicate the
special circumstances requiring an extension of time and the date by which the
Claims Administrator or Appeals Fiduciary expects to render its decision on
review.  In the case of a decision
adverse to the claimant, the Claims Administrator or Appeals Fiduciary shall
provide to the claimant written notice of the denial which shall include:

 

(1)           the specific reasons for the
decision;

 

(2)           specific references to the
pertinent provisions of this Agreement on which the decision is based;

 

(3)           a statement that the
claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information
relevant to the claimant’s claim for benefits;

 

(4)           an explanation of this
Agreement’s claim review procedures, and the time limits applicable to such
procedures, including a statement of the claimant’s right to bring an action
under Section 502(a) of ERISA following the denial of the claim upon
review;

 

(5)           in the case of a claim for
benefits due to Executive being Permanently Disabled, if  an internal rule, guideline, protocol or
other similar criterion is relied upon in making the adverse determination,
either the specific rule, guideline, protocol or other similar criterion; or a
statement that such rule, guideline, protocol or other similar criterion was
relied upon in making the decision and that a copy of such rule, guideline, 

 

7

 

protocol or other similar criterion will be provided
free of charge upon request;

 

(6)           in the case of a claim for
benefits due to Executive being Permanently Disabled, if a denial of the claim
is based on a medical necessity or experimental treatment or similar exclusion
or limit, an explanation of the scientific or clinical judgment for the denial,
an explanation applying the terms of this Agreement to the claimant’s medical
circumstances or a statement that such explanation will be provided free of
charge upon request; and

 

(7)           in the case of a claim for
benefits due to Executive being Permanently Disabled, a statement regarding the
availability of other voluntary alternative dispute resolution options.

 

The
Claims Administrator has the discretionary authority to determine all
interpretative issues arising under this Agreement and the interpretations of
the Claims Administrator shall be final and binding upon Executive or any other
party claiming benefits under this Agreement. 
For claims procedure purposes, the “Claims Administrator” shall be the
Board of Directors or such other person designated by the Board of Directors
from time to time and named by notice to Executive.  For claims procedure purposes, the “Appeals
Fiduciary” means an individual or group of individuals appointed by the Claims
Administrator to review appeals of claims for benefits payable due to Executive’s
Permanent Disability made pursuant to this Subsection (b).

 

5.             Funding by Employer.

 

(a)           The general corporate
funds of the Employer shall be the sole source of payment of benefits under
this Agreement.  The Employer shall be under no obligation
to set aside, earmark or otherwise segregate any funds with which to pay its
obligations under this Agreement. 
Executive and Executive’s beneficiary or any successor in interest shall
be and remain unsecured general creditors of the Employer with respect to the
Employer’s obligations hereunder. 
Executive shall have no interest in any property of the Employer or any
other rights with respect thereto except to the extent of the contractual right
to the payments provided for in Section 2 of this Agreement.

 

(b)           Notwithstanding anything
herein to the contrary, the Employer has no obligation whatsoever to set aside
assets, either directly or indirectly, in a trust for purposes of paying
benefits under this Agreement.  If the
Employer determines in its sole discretion to set aside assets in a trust for
the purpose of paying benefits under this Agreement, the trust shall not be
located outside of the United States or subsequently transferred to a trust
outside of the United States.

 

6.             Effect of Change of Control.  Upon the occurrence of a Change of Control
(as hereinafter defined) prior to the date any benefits under this Agreement
are scheduled to

 

8

 

commence,
Executive shall become fully vested in the Normal Retirement Benefit.  The full annual amount of the Normal
Retirement Benefit shall be paid to Executive (or Executive’s beneficiary) in
accordance with the timing provisions of the otherwise applicable provision of Section 2
based upon the occurrence of the Executive’s termination of employment with the
Employer.  For purposes of this Section 6,
the term “Change of Control”  means  the acquisition by any one person, or more than one person
acting as a group (other than any person or more than one person acting as a
group who is considered to own more than fifty percent (50%) of the total
voting power of Atlantic Southern Financial Group, Inc. or the Employer
prior to such acquisition) of stock of Atlantic Southern Financial Group, Inc.
or the Employer that, together with stock held by such person or group,
constitutes more than fifty percent (50%) of the total voting power of the
stock of Atlantic Southern Financial Group, Inc. or the Employer (as applicable).  Notwithstanding the foregoing, no Change of
Control shall be deemed to have occurred for purposes of this Section 6 by
reason of a merger, consolidation, reorganization or other transaction as to
which the holders of the capital stock of Atlantic Southern Financial Group, Inc.
before the transaction continue after the transaction to hold, directly or
indirectly through a holding company or otherwise, shares of capital stock of
Atlantic Southern Financial Group, Inc. (or other surviving company) representing
more than fifty percent (50%) of the value or ordinary voting power to elect
directors of the capital stock of Atlantic Southern Financial Group, Inc.
(or other surviving company).  For
purposes of this Section 6, persons will be considered to be acting as a
group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business
transaction with Atlantic Southern Financial Group, Inc.

 

7.             Employment of Executive;
Other Agreements.  The benefits provided
for herein for Executive are supplemental retirement benefits and shall not be
deemed to modify, affect or limit any salary or salary increases, bonuses,
profit sharing or any other type of compensation of Executive in any manner whatsoever.  No provision contained in this Agreement
shall in any way affect, restrict or limit any existing employment agreement
between the Employer and Executive, nor shall any provision or condition
contained in this Agreement create specific employment rights of Executive or
limit the right of the Employer to discharge Executive with or without cause.

 

8.             Leave of Absence.  The Employer may, in its sole discretion,
permit Executive to take a leave of absence for a period not to exceed six (6) months.  Any such leave of absence must be approved by
the Board of Directors of Employer and reflected in its minutes.  During this time, Executive will still be
considered to be in the employ of the Employer for purposes of this Agreement.

 

9.             Withholding.

 

(a)           The Executive is responsible for payment of all
taxes applicable to compensation and benefits paid or provided to the Executive
under the Agreement, including federal and state income tax withholding, except
the Employer shall withhold any taxes that, in its reasonable judgment, are
required to be withheld, including but not limited to taxes owed under Section 409A
of the Code and regulations thereunder and all employment taxes due to be paid
by the Employer pursuant to Section 3121(v) of the 

 

9

 

Code
and regulations promulgated thereunder (i.e., Federal Insurance Contributions Act (“FICA”)
taxes on the present value of payments hereunder which are no longer subject to
vesting).  The Employer’s sole liability
regarding taxes is to forward any amounts withheld to the appropriate taxing
authority(ies).  By participating in the
Agreement, the Executive consents to the deduction of all tax withholdings
attributable to participation in the Agreement from the benefits due under the
Agreement or other payments due to the Executive by the Employer to satisfy the
employee-portion of such obligations.  If
insufficient cash wages are available or if the Executive so desires, the Executive
may remit payment in cash for the withholding amounts.

 

(b)           Notwithstanding any other provision in the Agreement to the contrary,
payments due under the Agreement may be accelerated to pay, where applicable,
the FICA tax imposed under Sections 3101, 3121(a), and 3121(v)(2) of the
Code and any state, local, and foreign tax obligations (the “Tax Obligations”)
that may be imposed on amounts deferred pursuant to the Agreement prior to the
time such amounts are paid or made available and to pay the income tax at
source on wages imposed under Section 3401 of the Code or the
corresponding withholding provisions of applicable state, local, or foreign tax
laws as a result of an accelerated payment of the Tax Obligations (the “Income
Tax Obligations”).  Accelerated payments
pursuant to this Section 9(b) shall not exceed the amount of the Tax
Obligations and Income Tax Obligations and shall be made as a payment directly
to taxing authorities pursuant to the applicable withholding provisions.  Any accelerated payments pursuant to this Section 9(b) shall
reduce the benefit otherwise payable to the Executive pursuant to the
Agreement.

 

10.           Arbitration; Jury Trial
Waiver.

 

(a)           Except as otherwise
expressly provided herein or in any other subsequent written agreement between
Executive and the Employer, any controversy or claim between Executive and the
Employer, or between the respective successors or assigns of either, or between
Executive and any of the Employer’s officers, employees, agents or affiliated
entities, arising out of or relating to this Agreement or any representations,
negotiations, or discussions leading up to this Agreement or any relationship
that results from any of the foregoing, whether based on contract, an alleged
tort, breach of warranty, or other legal theory (including claims of fraud,
misrepresentation, suppression of material fact, fraud in the inducement, and
breach of fiduciary obligation), and whether based on acts or omissions
occurring or existing prior to, at the time of, or after the execution of this
Agreement and whether asserted as an original or amended claim, counterclaim,
cross-claim, or otherwise, shall be settled by binding arbitration pursuant to
the Federal Arbitration Act (“FAA”), 9 U.S.C. Section 1, et seq.; provided, however, that resort to arbitration as
provided in this Section 10 may only be had after exhaustion of the claims
procedure described in Subsection 4(b). 
The arbitration shall be administered by the American Arbitration
Association under its Commercial Arbitration Rules (the “Rules”), and
judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  Any dispute
regarding whether a particular claim is 

 

10

 

subject
to arbitration will be decided by the arbitrator.  Any court of competent jurisdiction may
compel arbitration of claims pursuant to this Agreement.

 

(b)           The arbitrator may award
to the prevailing party pre-and post-award expenses of the arbitration,
including the arbitrator’s fees and travel expenses, administrative fees,
out-of-pocket expenses such as copying and telephone, court costs, witness
fees, stenographer’s fees, and (if allowed by applicable law) attorneys’
fees.  Otherwise, the parties will share
equally the arbitrator’s fee and travel expenses and administrative fees, and
each party will bear its own expenses.

 

(c)           This agreement to
arbitrate disputes will survive the payment of all obligations under this
Agreement and termination or performance of any transactions contemplated
hereby between Executive and the Employer, and will continue in full force and
effect unless Executive and the Employer otherwise expressly agrees in
writing.  Executive and the Employer
acknowledge that the transaction contemplated by this Agreement involves “commerce,”
as that term is defined in the FAA.

 

(d)           By entering into this
Agreement, Executive and the Employer agree and acknowledge that:

 

(i)            by agreeing to arbitrate
disputes, Executive and the Employer are giving up the right to trial in a
court and THE RIGHT TO TRIAL BY JURY of all claims that are subject to
arbitration under this Agreement;

 

(ii)           grounds for appeal of the
arbitrator’s decision are very limited; and

 

(iii)          in some cases the
arbitrator may be employed by, or may have worked closely with, a business in
the same or a related type of business as the business engaged in by Executive
or the Employer.

 

(e)           EXECUTIVE AND THE
EMPLOYER HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF ALL DISPUTES, CONTROVERSIES
AND CLAIMS BY, BETWEEN OR AGAINST EXECUTIVE OR THE EMPLOYER, WHETHER THE
DISPUTE, CONTROVERSY OR CLAIM IS SUBMITTED TO ARBITRATION OR IS DECIDED BY A
COURT.

 

Executive must initial here:        .

 

11.           Miscellaneous Provisions.

 

(a)           Counterparts.  This Agreement may be executed simultaneously
in any number of counterparts.  Each
counterpart shall be deemed to be an original, and all such counterparts shall
constitute one and the same instrument. 
This Agreement may be executed and delivered by facsimile transmission
of an executed counterpart.

 

11

 

(b)           Construction.  As used in this Agreement, the neuter gender
shall include the masculine and the feminine, the masculine and feminine
genders shall be interchangeable among themselves and each with the neuter, the
singular numbers shall include the plural, and the plural the singular.  The term “person” shall include all persons
and entities of every nature whatsoever, including, but not limited to,
individuals, corporations, partnerships, governmental entities and
associations.  The terms “including,” “included,”
“such as” and terms of similar import shall not imply the exclusion of other
items not specifically enumerated.

 

(c)           Severability.  If any provision of this Agreement or the
application thereof to any person or circumstance shall be held to be invalid,
illegal, unenforceable or inconsistent with any present or future law, ruling, rule or
regulation of any court, governmental or regulatory authority having
jurisdiction over the subject matter of this Agreement, such provision shall be
rescinded or modified in accordance with such law, ruling, rule or
regulation and the remainder of this Agreement or the application of such
provision to the person or circumstances other than those as to which it is
held inconsistent shall not be affected thereby and shall be enforced to the
greatest extent permitted by law.

 

(d)           Governing Law.  This Agreement is made in the State of
Georgia and shall be governed in all respects and construed in accordance with
the laws of the State of Georgia, without regard to its conflicts of law
principles, except to the extent superseded by the Federal laws of the United
States.

 

(e)           Binding Effect.  This Agreement is binding upon the parties,
their respective successors, assigns, heirs and legal representatives.  Without limiting the foregoing this Agreement
shall be binding upon any successor of the Employer whether by merger or
acquisition of all or substantially all of the assets or liabilities of the
Employer.  This Agreement may not be
assigned by any party without the prior written consent of each other party
hereto.

 

(f)            No Trust.  Nothing contained in this Agreement and no
action taken pursuant to the provisions of this Agreement shall create or be
construed to create a trust of any kind, or a fiduciary relationship between
the Employer and Executive, Executive’s designated beneficiary or any other
person.

 

(g)           Assignment of Rights and Benefits. 
No right or benefit provided in this Agreement will be transferable by
Executive except, upon his death, to a named beneficiary as provided in this
Agreement.  No right or benefit provided
for in the Agreement will be subject to anticipation, alienation, sale,
assignment, pledge, encumbrance or charge, and any attempt to anticipate,
alienate, sell, assign, pledge, encumber, or charge the same will be void.  No right or benefit provided for in the
Agreement will in any manner be liable for or subject to any debts, contracts,
liabilities or torts of the person entitled to such benefits; provided, however, that
the undistributed 

 

12

 

portion
of any benefit payable hereunder shall at all times be subject to set-off for
debts owed by Executive to the Employer.

 

(h)           Entire Agreement.  This Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof and all
prior or contemporaneous negotiations, agreements and understandings, whether
oral or written, are hereby superseded, merged and integrated into this
Agreement.

 

(i)            Notices.  All notices and other
communications required or permitted under this Agreement shall be in writing
and, if mailed by prepaid first-class mail or certified mail, return receipt
requested, shall be deemed to have been received on the earlier of the date
shown on the receipt or three (3) business days after the postmarked date
thereof.  In addition, notices hereunder
may be delivered by hand, facsimile transmission or overnight courier, in which
event the notice shall be deemed effective when delivered or transmitted.  All notices and other communications under
this Agreement shall be given to the parties hereto at the following addresses:

 

Employer:

 

Atlantic Southern Bank

1701 Bass Road

Macon, GA  31210

Attn:       Chairman, Board of
Directors

 

Executive:

 

 

(j)            Non-waiver.  No delay or failure by either party to
exercise any right under this Agreement, and no partial or single exercise of
that right, shall constitute a waiver of that or any other right.

 

(k)           Headings.  Headings in this Agreement are for
convenience only and shall not be used to interpret or construe its provisions.

 

(l)            Accelerated Payouts in the
Event of 409A Violations. 
Notwithstanding any other provision of the Agreement to the contrary,
the Employer shall make payments hereunder before such payments are otherwise
due if it determines that the provisions of the Agreement fail to meet the
requirements of Code Section 409A and the rules and regulations
promulgated thereunder; provided, however, that such payment(s) may not
exceed the amount required to be included in income as a result of such failure
to comply with the requirements of Code Section 409A and the rules and
regulations promulgated 

 

13

 

thereunder
and, to the extent permissible therein, any taxes, penalties, interest and
costs attributable thereto.

 

(m)          Seal.  The parties hereto intend this Agreement to
have the effect of an agreement executed under the seal of each.

 

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

 

	
   

  	
  ATLANTIC SOUTHERN BANK:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William A.
  Fickling, III

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ Edward P. Loomis,
  Jr.

  

 

14

 

Exhibit A

 

	
  Date

  	
   

  	
  Accrual

  Balance

  	
   

  
	
  04/30/10

  	
   

  	
  8,441

  	
   

  
	
  05/31/10

  	
   

  	
  16,924

  	
   

  
	
  06/30/10

  	
   

  	
  25,450

  	
   

  
	
  07/31/10

  	
   

  	
  34,018

  	
   

  
	
  08/31/10

  	
   

  	
  42,629

  	
   

  
	
  09/30/10

  	
   

  	
  51,284

  	
   

  
	
  10/31/10

  	
   

  	
  59,981

  	
   

  
	
  11/30/10

  	
   

  	
  68,722

  	
   

  
	
  12/31/10

  	
   

  	
  77,507

  	
   

  
	
  01/31/11

  	
   

  	
  86,335

  	
   

  
	
  02/28/11

  	
   

  	
  95,208

  	
   

  
	
  03/31/11

  	
   

  	
  104,125

  	
   

  
	
  04/30/11

  	
   

  	
  113,087

  	
   

  
	
  05/31/11

  	
   

  	
  122,093

  	
   

  
	
  06/30/11

  	
   

  	
  131,145

  	
   

  
	
  07/31/11

  	
   

  	
  140,242

  	
   

  
	
  08/31/11

  	
   

  	
  149,384

  	
   

  
	
  09/30/11

  	
   

  	
  158,572

  	
   

  
	
  10/31/11

  	
   

  	
  167,806

  	
   

  
	
  11/30/11

  	
   

  	
  177,086

  	
   

  
	
  12/31/11

  	
   

  	
  186,412

  	
   

  
	
  01/31/12

  	
   

  	
  195,786

  	
   

  
	
  02/29/12

  	
   

  	
  205,206

  	
   

  
	
  03/31/12

  	
   

  	
  214,673

  	
   

  
	
  04/30/12

  	
   

  	
  224,187

  	
   

  
	
  05/31/12

  	
   

  	
  233,749

  	
   

  
	
  06/30/12

  	
   

  	
  243,359

  	
   

  
	
  07/31/12

  	
   

  	
  253,017

  	
   

  
	
  08/31/12

  	
   

  	
  262,723

  	
   

  
	
  09/30/12

  	
   

  	
  272,478

  	
   

  
	
  10/31/12

  	
   

  	
  282,281

  	
   

  
	
  11/30/12

  	
   

  	
  292,134

  	
   

  
	
  12/31/12

  	
   

  	
  302,035

  	
   

  
	
  01/31/13

  	
   

  	
  311,986

  	
   

  
	
  02/28/13

  	
   

  	
  321,987

  	
   

  
	
  03/31/13

  	
   

  	
  332,038

  	
   

  
	
  04/30/13

  	
   

  	
  342,140

  	
   

  
	
  05/31/13

  	
   

  	
  352,291

  	
   

  
	
  06/30/13

  	
   

  	
  362,494

  	
   

  
	
  07/31/13

  	
   

  	
  372,748

  	
   

  
	
  08/31/13

  	
   

  	
  383,052

  	
   

  
	
  09/30/13

  	
   

  	
  393,409

  	
   

  
	
  10/31/13

  	
   

  	
  403,817

  	
   

  
	
  11/30/13

  	
   

  	
  414,277

  	
   

  
	
  12/31/13

  	
   

  	
  424,789

  	
   

  
	
  01/31/14

  	
   

  	
  435,354

  	
   

  
	
  02/28/14

  	
   

  	
  445,972

  	
   

  
	
  03/31/14

  	
   

  	
  456,643

  	
   

  
	
  04/30/14

  	
   

  	
  467,367

  	
   

  
	
  05/31/14

  	
   

  	
  478,145

  	
   

  
	
  06/30/14

  	
   

  	
  488,977

  	
   

  
	
  07/31/14

  	
   

  	
  499,863

  	
   

  
	
  08/31/14

  	
   

  	
  510,803

  	
   

  
	
  09/30/14

  	
   

  	
  521,798

  	
   

  
	
  10/31/14

  	
   

  	
  532,849

  	
   

  
	
  11/30/14

  	
   

  	
  543,954

  	
   

  
	
  12/31/14

  	
   

  	
  555,115

  	
   

  
	
  01/31/15

  	
   

  	
  566,331

  	
   

  
	
  02/28/15

  	
   

  	
  577,604

  	
   

  
	
  03/31/15

  	
   

  	
  588,933

  	
   

  
	
  04/30/15

  	
   

  	
  600,319

  	
   

  
	
  05/31/15

  	
   

  	
  611,761

  	
   

  
	
  06/30/15

  	
   

  	
  623,261

  	
   

  
	
  07/31/15

  	
   

  	
  634,819

  	
   

  
	
  08/31/15

  	
   

  	
  646,434

  	
   

  
	
  09/30/15

  	
   

  	
  658,107

  	
   

  
	
  10/31/15

  	
   

  	
  669,839

  	
   

  
	
  11/30/15

  	
   

  	
  681,629

  	
   

  
	
  12/31/15

  	
   

  	
  693,478

  	
   

  
	
  01/31/16

  	
   

  	
  705,387

  	
   

  
	
  02/29/16

  	
   

  	
  717,355

  	
   

  
	
  03/31/16

  	
   

  	
  729,382

  	
   

  
	
  04/30/16

  	
   

  	
  741,470

  	
   

  
	
  05/31/16

  	
   

  	
  753,619

  	
   

  
	
  06/30/16

  	
   

  	
  765,828

  	
   

  
	
  07/31/16

  	
   

  	
  778,098

  	
   

  
	
  08/31/16

  	
   

  	
  790,430

  	
   

  
	
  09/30/16

  	
   

  	
  802,823

  	
   

  
	
  10/31/16

  	
   

  	
  815,278

  	
   

  
	
  11/30/16

  	
   

  	
  827,796

  	
   

  
	
  12/31/16

  	
   

  	
  840,376

  	
   

  
	
  01/31/17

  	
   

  	
  853,019

  	
   

  
	
  02/28/17

  	
   

  	
  865,725

  	
   

  
	
  03/31/17

  	
   

  	
  878,494

  	
   

  
	
  04/30/17

  	
   

  	
  891,328

  	
   

  
	
  05/31/17

  	
   

  	
  904,226

  	
   

  
	
  06/30/17

  	
   

  	
  917,188

  	
   

  
	
  07/31/17

  	
   

  	
  930,215

  	
   

  
	
  08/31/17

  	
   

  	
  943,307

  	
   

  
	
  09/30/17

  	
   

  	
  956,465

  	
   

  
	
  10/31/17

  	
   

  	
  969,688

  	
   

  
	
  11/30/17

  	
   

  	
  982,977

  	
   

  
	
  12/31/17

  	
   

  	
  996,333

  	
   

  
	
  01/31/18

  	
   

  	
  1,009,756

  	
   

  
	
  02/28/18

  	
   

  	
  1,023,246

  	
   

  
	
  03/31/18

  	
   

  	
  1,036,803

  	
   

  
	
  04/30/18

  	
   

  	
  1,050,428

  	
   

  
	
  05/31/18

  	
   

  	
  1,064,121

  	
   

  
	
  06/30/18

  	
   

  	
  1,077,883

  	
   

  
	
  07/31/18

  	
   

  	
  1,091,714

  	
   

  

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]