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    Employment Agreement for Reggie R.
      Harper

     

    Ancillary Confidentiality and
      Non-Competition Agreement for Reggie R. Harper

     

    Employment Agreement for Cordell H.
      White

     

    Ancillary Confidentiality and
      Non-Competition Agreement for Cordell H. White

     

     

     

     

     

     

     

     

     

     

     

    
      

      

    

    
EXECUTIVE
      EMPLOYMENT
      AGREEMENT

     

    This
      EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made
      and  entered into as of the 2nd  day of
      November, 2007, by and between First Guaranty Bank, a Louisiana state nonmember
      bank (the “Bank”), and Reggie R. Harper, an individual resident of the
      State of Louisiana (the “Executive”) (the signatories to this Agreement
      may be referred to individually as a “Party” and jointly as the
“Parties”).

     

    WITNESSETH:

     

    WHEREAS,                                First
      Guaranty Bancshares, Inc. (the sole shareholder of the Bank and First Community
      Holding Company (along with its subsidiary First Community Bank, the current
      employer of the Executive) have entered into an Agreement and Plan of
      Reorganization, dated November 2, 2007 (“Merger Agreement”), pursuant to
      which the First Community Holding Company and First Community
      Bank  will merge into First Guaranty Bancshares, Inc. and the Bank,
      respectively; and

     

    WHEREAS,
      the Executive has considerable experience, expertise and training in management
      related to banking and services offered by the Bank; and

     

    WHEREAS,
      the Bank desires for the Executive to be employed as a member of the Senior
      Management Team of the Bank following the Merger, and the Executive desires
      to
      accept employment, subject to and on the terms and conditions set forth in
      this
      Agreement; and

     

    WHEREAS,
      the Bank and the Executive have read and understood the terms and provisions
      set
      forth in this Agreement and have been afforded a reasonable opportunity to
      review this Agreement with their respective legal counsel.

     

    NOW,
      THEREFORE, in consideration of the mutual promises and covenants set forth
      in
      this Agreement, and for good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, the Executive, and the Bank agree
      as follows:

     

    1.  Term
      of Employment.  This Agreement shall become effective (the
“Effective Date”) upon the Effective Time for the Merger (as defined in
      the Merger Agreement) and  shall continue in effect until December 31,
      2008 (the “Term of Employment”), unless terminated pursuant to Section 5 of this Agreement.

     

    2.  Duties
      and Authority.  During the Term of Employment, the Executive shall
      serve as a senior vice-president with a role appropriate to a member of the
      Bank’s senior management team.  The Executive shall perform in a
      professional manner the authorized and customary duties associated with his
      position and such other reasonable duties and responsibilities commensurate
      with
      the Executive’s position as the Board of Directors or Chief Executive Officer of
      the Bank may assign to the Executive from time to time.  

     

    3.  Compensation
      and Benefits.  All payments of compensation to the Executive shall
      be payable in accordance with the Bank’s ordinary payroll and other policies and
      procedures, provided that the Executive’s salary, pursuant to Section 3(a) shall be payable
      not
      less frequently than monthly.

     

    (a)  Base
      Salary.  During the Term of Employment, the Bank agrees to pay the
      Executive a base salary of not less than $130,000 annually (“Base
      Salary”), appropriately prorated for partial months at the commencement and
      end of the term of this Agreement.  The Bank shall have the right to
      deduct from any payment of all compensation to the Executive hereunder any
      federal, state or local taxes required by law to be withheld with respect to
      such
      payments and any other amounts specifically authorized to be withheld or
      deducted by the Executive

     

    (b)  Bonus
      Programs.  The Executive will be entitled to participate
      in any and all bonus plans of the Bank whether such bonus plans are presently
      existing or may hereafter be implemented by the Bank at levels equal to
      similarly situated officers.  The Executive shall also be entitled to
      participate in any benefit programs which are applicable to all employees of
      the
      Bank or to executive employees of the Bank in accordance with the Bank policy,
      and the provisions of said benefit programs.  This Agreement, which
      provides certain additional benefits, does not preclude the Executive’s
      participation in such other plans of the Bank.

     

    (c)  Medical
      Benefits; Vacation.  The Executive shall be entitled to receive
      employee  and dependent health insurance, paid sick leave annually in
      accordance with the Bank’s policy, four (4) weeks paid vacation annually and any
      additional benefits provided to all the Bank employees all in accordance with
      the Bank’s employment policies.  All employee benefits provided to the
      Executive by the Bank incident to the Executive’s employment shall be governed
      by the applicable plan documents, summary plan descriptions or employment
      policies, and may be modified, suspended or revoked at any time, in accordance
      with the terms and provisions of the applicable documents.

     

    (d)  Reimbursement
      of Expenses.  During the Term of Employment, the Bank shall
      promptly pay all reasonable expenses incurred by the Executive for all
      reasonable travel and other business related expenses incurred by him in
      performing his obligations under this Agreement in accordance with the Bank’s
      travel and business expense policy, such expenses to be reviewed by the Bank’s
      Board of Directors on a periodic basis.

     

    4.  Compensation
      After Termination.

     

    (a)  If
      the
      Term of Employment is terminated (i) by the Bank for Cause (as defined
      below) or due to the death or disability of the Executive, (ii) by the
      Executive other than for Good Reason (as defined in Section 5(e)) or (iii) through expiration of the Term of
      Employment, the Bank shall have no further obligations hereunder or otherwise
      with respect to the Executive’s employment from and after the termination or
      expiration date (except payment of the Executive’s Base Salary and any bonus
      accrued and reimbursement of all reasonable travel and other business related
      expenses incurred through the date of termination or expiration) and the Bank
      shall continue to have all other rights available hereunder.

     

    (b)  If
      the
      Term of Employment is terminated (i) by the Bank Without Cause (as defined
      in
      Section 5(d)) or (ii) by the Executive for Good
      Reason (as defined in Section 5(e))), the Executive
      shall be entitled to receive as severance pay (in addition to the payment of
      the
      Base Salary and reimbursement of expenses through the date of termination),
      an
      amount equal to the Executive’s remaining Base Salary for the year of
      termination payable within thirty (30) days of the end of the Term of
      Employment.  After the thirtieth (30th) day following
      the
      end of the Term of Employment, the outstanding severance payment shall, until
      paid, bear interest per annum at the prime lending rate as published in The
      Wall
      Street Journal on the thirty-first (31st) day following
      the
      end of the Term of Employment.  Except as otherwise specifically
      provided herein, the Bank shall have no other obligations hereunder or otherwise
      with respect to the Executive’s employment from and after the termination or
      expiration date, and the Bank shall continue to have all other rights available
      hereunder.

     

    (c)  No
      termination under Section 5 shall terminate or
      adversely affect any rights of the Executive then vested under any disability
      or
      other benefit program of the Bank.

     

    5.  Termination.

     

    (a)  Death.  If
      the Executive dies during the Term of Employment and while in the employ of
      the
      Bank, this Agreement shall automatically terminate and neither the Bank shall
      have no further obligation to the Executive or his estate under this Agreement
      (other than death benefits payable under the benefit plans referenced in Section
      3(b) or Section 3(c)),
      except that the Bank shall pay the Executive’s estate that portion of the
      Executive’s Base Salary under Section 3(a) accrued
      through the date on which the Executive’s death occurred and reimbursement of
      all reasonable travel and other business related expenses incurred through
      the
      date on which the Executive’s death occurred.  Such payment of Base
      Salary and expenses to the Executive’s estate shall be made in the same manner
      as other payroll obligations of the Bank.

     

    (b)  Disability.

     

    (i)  the
      Bank
      may terminate this Agreement if, during the Term of Employment, the Executive
      shall be prevented from performing his duties hereunder by reason of becoming
      disabled.  For purposes of this Agreement, “disability” shall mean
      that the Executive is unable to engage in any substantial gainful activity
      by
      reason of any medically determinable physical or mental impairment that can
      be
      expected to result or death or expected to last for a continuous period of
      not
      less than 12 months.  During any period prior to termination during
      which the Executive fails to perform his duties as a result of incapacity due
      to
      physical or mental illness, the Executive shall continue to receive his full
      salary at the rate then in effect for such period until his employment
      terminates pursuant to this Section 5(b), provided that
      payments so made to the Executive
      during such period shall be reduced by the sum of the amounts, if any, payable
      to the Executive under any disability benefit plans of the Bank that were not
      previously applied to reduce such payment.

     

    (ii)  In
      the
      event of a termination pursuant to this Section 5(b), the Bank shall
      be relieved of all their
      obligations under this Agreement, except that the Bank shall pay to the
      Executive, or his estate in the event of his subsequent death,(i) the
      Executive’s Base Salary under Section 3(a) through
      the date on which such termination shall have occurred, reduced during such
      period by the amount of any benefits received by the Executive under any
      disability policy maintained by the Bank and any death benefits payable under
      the benefit plans referenced in Section 3(b) or
      Section 3(c) and (ii) reimbursement of all
      reasonable travel and other business related expenses incurred through the
      date
      on which such termination shall have occurred.  All such payments to
      the Executive or his estate shall be made in the same manner as other payroll
      obligations of the Bank.

     

    (c)  Discharge
      for Cause.  At any time during the Term of Employment, the Bank
      may discharge the Executive for Cause and terminate this Agreement by delivering
      to the Executive a written notice of discharge.  The notice of
      discharge shall set forth the reasons for the Executive’s termination for
      Cause.  For purposes of this Agreement, “Cause” shall be
      defined as the occurrence of any of the following events:

     

    (i)  The
      determination by the Board of Directors of the Bank, in the exercise of its
      reasonable judgment, after consultation with its legal counsel, that the
      Executive has committed an act or acts constituting (1) a felony, or other
      crime (whether a felony or a misdemeanor) involving moral turpitude, dishonesty
      or theft, (2) a breach of fiduciary duty, or (3) fraud;

     

    (ii)  The
      determination by the Board of Directors of the Bank, in the exercise of its
      reasonable judgment, that (1) the Executive has willfully failed to follow
      the policies adopted by the Board of Directors, other than technical or
      immaterial failures; (2) the Executive has failed to meet the duties and
      responsibilities inherent in Section 2 of this
      Agreement, other than technical or immaterial failures; or (3) the
      Executive has engaged in such intentional or reckless actions or omissions
      that
      would constitute unsafe or unsound banking practices, and, in the case of any
      termination pursuant to this 5(c)(ii), the
      Executive fails to cure such situation, assuming that such situation is curable,
      within thirty (30) days after written notice to the Executive by the Bank
      specifying in reasonable detail the reason for termination by the Board of
      Directors;

     

    (iii)  The
      determination by the Board of Directors of the Bank, in the exercise of its
      reasonable judgment, after consultation with its legal counsel, that the
      Executive has committed a breach or violation of this Agreement, and fails
      to
      cure such breach or violation within thirty (30) days after written notice
      to
      the Executive by   the Bank specifying in reasonable detail the
      alleged breach or violation;

     

    (iv)  The
      determination by the Board of Directors of the Bank, after consultation with
      its
      legal counsel, that the Executive has engaged in gross misconduct in the course
      and scope of his employment with the Bank, which shall be defined to mean
      indecency, immorality, dishonesty, unlawful harassment or discrimination, use
      of
      illegal drugs, or fighting; or

     

    (v)  In
      the
      event the Executive is prohibited from engaging in the business of banking
      by
      any governmental regulatory agency having jurisdiction over the
      Bank.

     

    For
      purposes of this Agreement, the Executive shall not be deemed to be in breach of
      this Agreement for his failure to substantially perform his duties under this
      Agreement where such failure results because the Executive has become disabled
      within the meaning of Section 5(b).  In such cases, termination
      of the
      Executive shall be governed by the provisions of Section 5(b).

     

    (d)  Discharge
      Without Cause.  At any time during the Term of Employment, the
      Bank shall be entitled to terminate the Executive’s employment and this
      Agreement “Without Cause,” by providing him with at least thirty (30)
      days prior written notice of termination.  Any termination of this
      Agreement which is not for Cause, as defined above in Section 5(c), or which does
      not
      result from the death or disability of the Executive, as set forth in Sections
      5(a) or 5(b),
      respectively, shall
      be deemed to be a termination Without Cause.  In the event of a
      termination Without Cause, the Bank shall become obligated to pay the Executive
      the severance payment set forth in Section 4(b).

     

    (e)  Good
      Reason.  At any time during the Term of Employment, the Executive
      may resign for Good Reason and terminate this Agreement by delivering to the
      Bank a written notice of resignation for Good Reason.  The notice of
      resignation shall set forth the reasons for the Executive’s resignation for Good
      Reason.  For purposes of this Agreement, “Good Reason” shall be
      defined as the occurrence of any of the following events:

     

    (i)  the
      assignment to Executive of any duties materially and adversely inconsistent
      with
      Executive’s status as a senior vice-president and member of the Bank’s senior
      management team or a material and adverse alteration in the nature of
      Executive’s authority, duties or responsibilities;

     

    (ii)  the
      reduction by the Bank of Executive’s Base Salary;

     

    (iii)  the
      requirement that Executive be based at any office or location other than an
      office of the Bank in Hammond, Louisiana; or

     

    (iv)  the
      failure of any successor to the Bank to assume this Agreement.

     

    6.  Resignation.  The
      Executive shall be entitled to terminate this Agreement by providing the Bank
      with a written notice of resignation at least thirty (30) days prior to the
      intended resignation date, upon which he shall be entitled to receive any Base
      Salary which has been earned by him through the effective date of such
      resignation.

     

    7.  Arbitration.  Any
      dispute or claim arising hereunder shall be settled by
      arbitration.  Any party may commence arbitration by sending a written
      notice or arbitration to the other party.  The notice will state the
      dispute with particularity.  The parties shall mutually agree to the
      selection of a qualified arbitrator.  If they do not agree with
      fifteen (15) days, then one party may request that a then presiding judge in
      Tangipahoa Parish, Louisiana select an attorney to become the arbitrator in
      this
      matter.  The arbitration hearing shall be commenced thirty (30) days
      following the date of delivery of notice of arbitration by one party to the
      other, under the terms of the Federal Arbitration Act.  The
      arbitration shall be conducted in Tangipahoa Parish, Louisiana in accordance
      with the Federal Arbitration Act, and each party shall retain the right to
      cross-examine the opposing party’s witnesses, either through legal counsel,
      expert witnesses or both.  As part of his or her decision, the
      arbitrator may allocate the cost of arbitration, including fees of attorneys
      and
      experts, as he or she deems fair and equitable in light of all relevant
      circumstances.  Judgment on the award rendered by the arbitrator may
      be entered in any court of competent jurisdiction.

     

    8.  Goodwill.  The
      Executive acknowledges that the Bank will, over a period of time, develop,
      significant relationships and goodwill between itself and its clients and
      customers by providing superior products and services.  The Executive
      further acknowledges that these relationships and this goodwill are a valuable
      asset belonging solely to the Bank.  The Executive understands that
      the Bank agrees to compensate him, as well as to reimburse him for reasonable
      and necessary business expenses incurred, while he builds and/or maintains
      business relationships and goodwill with the Bank’s current and prospective
      clients and customers on a personal level.  The Executive acknowledges
      that the responsibility to build and maintain business relationships and
      goodwill with current and prospective clients and customers creates a special
      relationship of trust and confidence between him, the Bank, and their clients
      and customers.

     

    9.  Notices.  All
      notices, requests, consents and other communications to be given or delivered
      hereunder or by reason of the provisions of this Agreement shall be in writing
      and shall be deemed to have been properly served if (a) delivered
      personally, (b) delivered by a recognized overnight courier service,
      (c) sent by certified or registered mail, return receipt requested and
      first class postage prepaid, or (d) sent by facsimile transmission followed
      by a confirmation copy delivered by recognized overnight courier service the
      next day.  Such notices, requests, consents and other communications
      shall be sent to the respective parties as follows:

     

    (i) if
      to the Executive:

     

    Reggie
      R.
      Harper

    17132
      Natures Trace

    Hammond,
      La. 70403, and

     

    (ii) if
      to the Bank:

     

    First
      Guaranty Bank

    400
      Guaranty Square

    Hammond,
      Louisiana 70401

    Attn:  Chief
      Executive Officer.

     

    Any
      Party
      hereto may designate a different address by providing written notice of such
      new
      address to the other Parties.  Date of service of such notice shall be
      (i) the date such notice is personally delivered or sent by facsimile
      transmission (with issuance by the transmitting machine of a confirmation of
      a
      successful transmission), (ii) three business days after the date of
      mailing if sent by certified or registered mail or (iii) one business day
      after the date of delivery to the overnight courier if sent by overnight
      courier.

     

    10.  Severability.  The
      Parties acknowledge that each covenant and/or provision of this Agreement shall
      be enforceable independently of every other covenant and/or
      provision.  Furthermore, the Executive, the Bank acknowledge that, in
      the event any covenant and/or provision of this Agreement is determined to
      be
      unenforceable for any reason, the remaining covenants and/or provisions will
      remain effective, binding and enforceable.

     

    11.  Complete
      Agreement; Modification.  Except with respect to that certain
      Confidentiality and Non-Disclosure Agreement executed concurrently herewith
      and
      any rights the Executive may have under the Merger Agreement, the Parties
      acknowledge and agree that (a) this Agreement constitutes the complete and
      entire agreement between the parties with respect to the subject matter hereof;
      (b) each executed this Agreement based upon the express terms and provisions
      set
      forth herein; (c) in accepting employment with the Company and the Bank, the
      Executive has not relied on any representations, oral or written, which are
      not
      set forth in this Agreement, (d) no previous agreement, either oral or written,
      shall have any effect on the terms or provisions of this Agreement and (e)
      all
      such previous agreements with respect to the subject matter hereof, either
      oral
      or written, are expressly superseded and revoked by this
      Agreement.  The provisions hereof may not be altered, amended,
      modified, waived, or discharged in any way whatsoever, except by written
      agreement executed by the Parties.  No waiver shall be deemed a
      continuing waiver or a waiver of any subsequent breach or default, either of
      a
      similar or different nature, unless expressly so stated in writing.

     

    12.  Governing
      Law.  This Agreement shall be construed and enforced in accordance
      with, and all questions concerning the construction, validity, interpretation
      and performance of this Agreement shall be governed by, the laws of the State
      of
      Louisiana, without giving effect to provision thereof regarding conflict of
      laws.

     

    13.  Prior
      Agreements.  The Executive represents that his service as an
      employee of   the Bank will not violate any
      agreement:  (i) he has made that prohibits him from disclosing
      any information he acquired prior to his becoming employed by the Bank; or
      (ii) he had made that prohibits him from accepting employment
      with   the Bank or that will interfere with his compliance with
      the terms of this Agreement.  The Executive further represents that he
      has not previously, and will not in the future, disclose to   the
      Bank any proprietary information or trade secrets belonging to any previous
      employer.  The Executive acknowledges that the Bank has instructed him
      not to disclose to it any proprietary information or trade secrets belonging
      to
      any previous employer.

     

    14.  Voluntary
      Agreement.  The Parties acknowledge that each has carefully read
      this agreement, that each has had an opportunity to consult with his or its
      attorney concerning the meaning, import and legal significance of this
      Agreement, that each understands its terms, that all understandings and
      agreements between the Parties relating to the subjects covered in this
      Agreement are contained in it, and that each has entered into the Agreement
      voluntarily and not in reliance on any promises or representations by the other
      than those contained in this Agreement.

     

     [Signature
      page follows]

    
      
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    [Signature
      Page to the Executive Employment Agreement]

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first written above, to be effective as of the Effective Date.

     

    
      	
              THE
                EXECUTIVE:

            	 
	 	
              Reggie
                R. Harper

            
	 	 
	
              THE
                BANK:

            	
              First
                Guaranty Bank,

            
	 	
              a
                Louisiana state bank

            
	 	 
	 	
              By:

            	 
	 	
              Name:

            	
              
                Michael
                  R. Sharp

              

            
	 	
              Title:

            	
              
                President

              

            
	 	 	 
	 	 	 

    

    

     

     

    
      
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      LOUISIANA
        ANCILLARY CONFIDENTIALITY
        AND

      NON-COMPETITION
        AGREEMENT

      

      THIS
        CONFIDENTIALITY AND
        NON-COMPETITION AGREEMENT (the “Agreement”) dated November 2, 2007 is
        made by Reggie Harper (“Executive”) and First Guaranty Bank (the
“Bank”).

      

      RECITALS

      

      A.
        Executive and the Bank have entered
        into an Employment Agreement dated this date (the “Employment
        Agreement”), to which this Agreement is ancillary and incorporated by
        reference, pursuant to which, among other things, the Bank agrees to make
        certain payments to Executive; and

      

      B.  Pursuant
        to the
        Employment Agreement, the Bank and Executive have agreed to enter into this
        Ancillary Agreement.

      

      The
        parties accordingly agree as
        follows:

      

      AGREEMENT

      

      

      1.  Definitions.  Each
        capitalized term not defined in this Agreement has the meaning assigned to
        it in
        the Employment Agreement.

       

      2.  Term.  The
        term of this Agreement begins at the Effective Time of the Mergers and continues
        through the earlier of (i) December 31, 2008 or (ii) the date of termination
        of
        the Executive’s employment with the Bank (A) by the Bank Without Cause or (B) by
        the Executive for Good Reason.

       

      3.  Confidentiality.  Executive
        acknowledges that in the course of his relationship with First Community
        Bank he
        has in the past received, and may in the future receive in the course of
        his
        relationship with the Bank, certain trade secrets, programs, lists of customers
        and other confidential or proprietary information and knowledge concerning
        the
        business of the Bank and its parent, First Guaranty Bancshares, Inc.
        (“Confidential Information”) which the Bank desires to
        protect.  Executive understands that the information is confidential,
        and he agrees not to reveal the Confidential Information to anyone outside
        the
        Bank, other than such disclosure as authorized by the Bank or is made to
        a
        person transacting business with the Bank who has reasonable need for such
        Confidential Information.  Executive further agrees that he will at no
        time use the Confidential Information for or on behalf of any person other
        than
        the Bank for any purpose.

       

      4.  Return
        of Bank Property.  The Executive acknowledges that all
        memoranda, notes, records, reports, manuals, books, papers, letters, client
        and
        customer lists, contracts, software programs, information and records, drafts
        of
        instructions, guides and manuals, and other documentation (whether in draft
        or
        final form), and other sales or financial information and aids relating to
        the
        Bank’s business, and any and all other documents containing Confidential
        Information furnished to the Executive by any representative of the Bank
        or
        otherwise acquired or developed by the Executive in connection with his
        association with the Bank (collectively, “Recipient Materials”) shall at
        all times be the property of the Bank (as applicable).  Within
        twenty-four (24) hours of the termination of his employment with the Bank,
        the
        Executive shall return to the Bank any Recipient Materials which are in his
        possession, custody or control.

      

      5.  Unfair
        Competition Restrictions; Non-Solicitation of
        Customers; Non-Solicitation of
        Employees.  Throughout the term of this Agreement, the
        Executive agrees not to do any of the following, directly or indirectly,
        for
        himself or for others, anywhere in the Louisiana Parishes of Tangipahoa,
        Livingston, Vermillion, Jefferson Davis, Claiborne, Caddo, Lincoln, Bossier,
        and
        St. Tammany (the “Restricted Area”) unless expressly authorized by the
        Bank's board of directors:

       

      (a)           engage
        in, or assist any person, entity, or business engaged in, the selling or
        providing of products or services that would displace the products or services
        that (i) the Bank is currently in the business of providing and was in the
        business of providing at the time of the execution of this Agreement, or
        (ii)
        that Executive had involvement in, access to, or received Confidential
        Information about in the course of employment.  The foregoing is
        expressly understood to include, without limitation, the business of the
        manufacturing, selling and/or providing products or services of the same
        type
        offered and/or sold by the Bank.

       

      (b)           call
        on, service, or solicit competing business from customers of the Bank, in
        the
        Restricted Area, whom he, within the previous 12 months, (i) had or made
        contact
        with, or (ii) had access to information and files about; or, induce or encourage
        any such customer or other source of ongoing business to stop doing business
        with the Bank.  This provision does not prohibit Executive from
        managing or providing other services or products that are not a product or
        services currently offered by the Bank.

       

      (c)           call
        on, solicit, encourage, or induce any other employee or officer of the Bank,
        whom he had contact with, knowledge of, or association within the course
        of
        employment with the Bank to discontinue his or her employment, and will not
        assist any other person or entity in such a solicitation.

       

      6.  Non-Disparagement.  Executive
        covenants and agrees he will not engage in any pattern of conduct that involves
        the making or publishing of written or oral statements or remarks (including,
        without limitation, the repetition or distribution of derogatory rumors,
        allegations, negative reports or comments) which are disparaging, deleterious
        or
        damaging to the integrity, reputation or good will of the Bank or its respective
        management or products and services.

       

      7.  Separability
        of Covenants.  The covenants contained in Section 5
        constitute a series of separate but ancillary covenants, one for each applicable
        parish in the State of Louisiana that is within the Restricted
        Area.  If in any judicial proceeding, a court shall hold that any of
        the covenants set forth in Section 5 exceed the time, geographic, or
        occupational limitations permitted by applicable law, Executive and the Bank
        agree that such provisions shall and are hereby reformed to the maximum time,
        geographic, or occupational limitations permitted by such
        laws.   Further, in the event a court shall hold unenforceable
        any of the separate covenants deemed included herein, then such unenforceable
        covenant or covenants shall be deemed eliminated from the provisions of this
        Agreement for the purpose of such proceeding to the extent necessary to permit
        the remaining separate covenants to be enforced in such
        proceeding.  Executive and the Bank further agree that the covenants
        in Section 5 shall each be construed as a separate agreement independent
        of any
        other provisions of this Agreement, and the existence of any claim or cause
        of
        action by Executive against the Bank, whether predicated on this Agreement,
        his
        Employment Agreement or otherwise, shall not constitute a defense to the
        enforcement by the Bank of any of the covenants of Section 5.

       

      8.  Consideration.  Executive
        acknowledges and agrees that no other consideration for Executive's covenants
        in
        this Agreement, other than that specifically referred to in the Employment
        Agreement, has or will be paid or furnished to him by the Bank.

       

      9.  Meaning
        of Certain Terms.  All non-capitalized terms in Sections 3, 4
        and 5 are intended to and shall have the same meanings that those terms (to
        the
        extent they appear therein) have in
        La.  R.  S.  23:921.C.  Subject to and
        only to the extent not consistent with the foregoing sentence, the parties
        understand the following phrases to have the following meanings:

       

      (a)           The
        phrase “carrying on or engaging in a business similar to the business of the
        Bank” includes engaging, as principal, officer, employee, agent, trustee,
        advisor, consultant or through the agency of any bank, corporation, partnership,
        association or agent or agency, in any business which conducts business in
        competition with the Bank or being the owner of more than one percent of
        the
        outstanding capital stock of any corporation, or an officer, director, or
        employee of any corporation or other entity, (other than the Bank or a
        corporation or other entity, affiliated with the Bank) or a member or employee
        or any partnership, or an owner or employee of any other business, which
        conducts a business or provides a service in the Restricted Area in competition
        with the Bank or any affiliated corporation or other
        entity.  Moreover, the term also includes (i) directly or indirectly
        inducing any current customers of the Bank, or any affiliated corporation
        or
        other entity, to patronize any product or service business in competition
        with
        the Bank or any affiliated corporation or other entity, (ii) canvassing,
        soliciting, or accepting any product or service business of the type conducted
        by the Bank or any affiliated corporation or other entity (iii) directly
        or
        indirectly requesting or advising any current customers of the Bank or any
        affiliated corporation or other entity, to withdraw, curtail or cancel such
        customer’s business with the Bank or any affiliated corporation or other entity;
        or (iv) directly or indirectly disclosing to any other person, firm, corporation
        or entity, the names or addresses of any of the current customers of the
        Bank or
        any affiliated corporation or other entity or the rates or other terms on
        which
        the Bank provides services to its customers.  In addition, the term
        includes directly or indirectly, through any person, firm, association,
        corporation or other entity with which Executive is now or may hereafter
        become
        associated, causing or inducing any present employee of the Bank or any
        affiliated corporation or other entity to leave the employ of the Bank or
        any
        affiliated corporation or other entity to accept employment with Executive
        or
        with such person, firm, association, corporation, or other entity.

      

      (b)           The
        phrase “a business similar to the business of the Bank”
means the taking of deposits and other receipt
        of funds from customers, the
        making of loans and other extensions of credit, maintaining checking accounts
        for customers, providing investment vehicles such as certificates of deposit
        to
        customers and providing trust services.

      

      (c)           The
        phrase “carries on a like business” includes, without limitation, actions
        taken by or through a holding company, wholly-owned subsidiary or other
        affiliated corporation or entity.

      

      10.  Reasonable
        Restrictions.  Executive represents to the Bank that the
        enforcement of the restrictions contained in this Agreement would not be
        unduly
        burdensome to Executive and acknowledges that Executive is willing and able,
        subject to the Restricted Area as defined herein, to compete in other
        geographical areas not prohibited by this Agreement.  The parties to
        this Agreement hereby agree that the covenants contained in this Agreement
        are
        reasonable.

       

      11.  Entire
        Agreement.  Except with respect to the Employment Agreement
        executed concurrently herewith, this Agreement constitutes the entire agreement
        between the parties hereto with respect to the subject matter of this Agreement
        and supersedes and is in full substitution for any and all prior agreements
        and
        understandings whether written or oral between said parties relating to the
        subject matter of this Agreement.  This Agreement shall not supersede
        or substitute for, nor be superseded or substituted by, the Employment
        Agreement, but shall have full force and effect concurrently
        therewith.

       

      12.  Amendment.  This
        Agreement may not be amended or modified in any respect except by an agreement
        in writing executed by the parties in the same manner as this Agreement except
        as provided in Section 13 of this Agreement.

       

      13.  Unenforceable
        Provisions.  If, and to the extent that, any section,
        paragraph, part, term and/or provision of this Agreement would otherwise
        be
        found null, void, or unenforceable under applicable law by any court of
        competent jurisdiction, that section, paragraph, part, term and/or provision
        shall automatically not constitute part of this Agreement.  Each
        section, paragraph, part, term and/or provision of this Agreement is intended
        to
        be and is severable from the remainder of this Agreement.  If, for any
        reason, any section, paragraph, part, term and/or provision herein is determined
        not to constitute part of this Agreement or to be null, void, or unenforceable
        under applicable law by any court of competent jurisdiction, the operation
        of
        the other sections, paragraphs, parts, terms and/or provisions of this Agreement
        as may remain otherwise intelligible shall not be impaired or otherwise affected
        and shall continue to have full force and effect and bind the parties
        hereto.

       

      14.  Remedies.

       

      (a)           Executive
        agrees that a breach or violation of Section 3, 4 or 5 of this Agreement
        by
        Executive shall entitle the Bank as a matter of right, to an injunction,
        without
        necessity of posting bond, issued by any court of competent jurisdiction,
        restraining any further or continued breach or violation of such
        provisions.  Such right to an injunction shall be cumulative and in
        addition, and not in lieu of, any other remedies to which the Bank may show
        themselves justly entitled, including, but not limited to, specific performance
        and damages.  The parties specifically agree that the remedy of
        damages alone is inadequate.

      

      (b)           In
        the event that Executive knowingly and intentionally fails in any material
        respect to perform any of his material obligations under this Agreement,
        the
        Bank may elect (i) to cease all payments under the Employment Agreement and
        recover all payments previously made to Executive under the Employment
        Agreement, (ii) obtain an injunction and/or (iii) exercise any and all other
        remedies available by law.

      

      (c)           Notwithstanding
        the foregoing subsection (b), Executive  will have no liability or
        responsibility for: (i) inadvertent disclosure or use of the Confidential
        Information if (x) he uses the same degree of care in safeguarding the
        Confidential Information that the Bank uses to safeguard information of like
        importance and (y) upon discovery of such inadvertent disclosure or use of
        such
        material, Executive immediately uses his best efforts, including the
        commencement of litigation, if necessary, to prevent any use thereof by the
        person or persons to whom it has been disclosed and to prevent any further
        incidental disclosure thereof; and, (ii) disclosure of any Confidential
        Information (x) that is required by law, (y) that is made pursuant to a proper
        subpoena from a court or administrative agency of competent jurisdiction
        from a
        court or administrative agency of competent jurisdiction or (z) that is made
        upon written demand of an official involved in regulating the Executive if
        before disclosure is made, Executive immediately notifies the Bank of the
        requested disclosure by the most immediate means of communication available
        and
        confirms in writing such notification within one business day
        thereafter.

      

      15.  Notice.  All
        notices, consents, requests, approvals or other communications in connection
        with this Agreement and all legal process in regard hereto shall be in writing
        and shall be deemed validly delivered, if delivered personally or sent by
        certified mail, postage prepaid.  Unless changed by written notice
        pursuant hereto, the address of each party for the purposes hereof is as
        follows:

       

      If
        to
        Executive:                                                                           If
        to the Bank:

      
 

      Reggie
        Harper                                                                       First
        Guaranty
        Bank

      17132
        Nature’s
        Trace                                                                           400  East
        Thomas Street

      Hammond,
        LA
        70403                                                                           Hammond,
        LA.  70401

                                Attention:  Michael
        R. Sharp, President

      

      Notice
        given by mail as set out above shall be deemed delivered only when actually
        received.

      

      16.  Descriptive
        Headings.  The descriptive headings of the several sections
        of this Agreement are inserted for convenience only and shall not control
        or
        affect the meaning or construction of any of the provisions hereof.

       

      17.  Governing
        Law.  This Agreement shall be governed by and construed and
        enforced in accordance with the laws of the State of Louisiana without regard
        to
        conflicts of law principles.

       

      

      

      IN
        WITNESS WHEREOF, the parties have duly executed this Agreement as of
        the date first above written.

      

      Executive:                                                                                     First
        Guaranty Bank

       

       

      ________________________                  By:________________________

      Reggie
        Harper                                                                                           Michael
        R. Sharp, President

      

      

      
        

        

      

      
        
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    EXECUTIVE
      EMPLOYMENT
      AGREEMENT

     

    This
      EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered
      into as of the 2nd day of
      November,
      2007, by and between First Guaranty Bank, a Louisiana state nonmember bank
      (the
“Bank”), and Cordell H. White, an individual resident of the State of
      Louisiana (the “Executive”) (the signatories to this Agreement may be
      referred to individually as a “Party” and jointly as the
“Parties”).

     

    WITNESSETH:

     

    WHEREAS,                                First
      Guaranty Bancshares, Inc. (the sole shareholder of the Bank and First Community
      Holding Company (along with its subsidiary First Community Bank, the current
      employer of the Executive) have entered into an Agreement and Plan of
      Reorganization, dated November 2, 2007 (“Merger Agreement”), pursuant to
      which the First Community Holding Company and First Community Bank will merge
      into First Guaranty Bancshares, Inc. and the Bank, respectively;
      and

     

    WHEREAS,
      the Executive has considerable experience, expertise and training in management
      related to banking and services offered by the Bank; and

     

    WHEREAS,
      the Bank desires for the Executive to be employed as a senior lending officer,
      credit officer or other position in Senior Management of the Bank following
      the
      Merger, and the Executive desires to accept employment, subject to and on the
      terms and conditions set forth in this Agreement; and

     

    WHEREAS,
      the Bank and the Executive have read and understood the terms and provisions
      set
      forth in this Agreement and have been afforded a reasonable opportunity to
      review this Agreement with their respective legal counsel.

     

    NOW,
      THEREFORE, in consideration of the mutual promises and covenants set forth
      in
      this Agreement, and for good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, the Executive, and the Bank agree
      as follows:

     

    1.  Term
      of Employment.  This Agreement shall become effective (the
“Effective Date”) upon the Effective Time for the Merger (as defined in
      the Merger Agreement) and  shall continue in effect until December 31,
      2008 (the “Term of Employment”), unless terminated pursuant to Section 5 of this Agreement.

     

    2.  Duties
      and Authority.  During the Term of Employment, the Executive shall
      serve as a senior vice-president with a role appropriate to a member of the
      Bank’s senior management team.  The Executive shall perform in a
      professional manner the authorized and customary duties associated with his
      position and such other reasonable duties and responsibilities commensurate
      with
      the Executive’s position as the Board of Directors or Chief Executive Officer of
      the Bank may assign to the Executive from time to time.  

     

    3.  Compensation
      and Benefits.  All payments of compensation to the Executive shall
      be payable in accordance with the Bank’s ordinary payroll and other policies and
      procedures, provided that the Executive’s salary, pursuant to Section 3(a) shall be payable
      not
      less frequently than monthly.

     

    (a)  Base
      Salary.  During the Term of Employment, the Bank agrees to pay the
      Executive a base salary of not less than $115,500 annually (“Base
      Salary”), appropriately prorated for partial months at the commencement and
      end of the term of this Agreement.  The Bank shall have the right to
      deduct from any payment of all compensation to the Executive hereunder any
      federal, state or local taxes required by law to be withheld with respect to
      such
      payments and any other amounts specifically authorized to be withheld or
      deducted by the Executive

     

    (b)  Bonus
      Programs.  The Executive will be entitled to participate
      in any and all bonus plans of the Bank whether such bonus plans are presently
      existing or may hereafter be implemented by the Bank at levels equal to
      similarly situated officers.  The Executive shall also be entitled to
      participate in any benefit programs which are applicable to all employees of
      the
      Bank or to executive employees of the Bank in accordance with the Bank policy,
      and the provisions of said benefit programs.  This Agreement, which
      provides certain additional benefits, does not preclude the Executive’s
      participation in such other plans of the Bank.

     

    (c)  Medical
      Benefits; Vacation.  The Executive shall be entitled to receive
      employee  and dependent health insurance, paid sick leave annually in
      accordance with the Bank’s policy, four (4) weeks paid vacation annually and any
      additional benefits provided to all the Bank employees all in accordance with
      the Bank’s employment policies.  All employee benefits provided to the
      Executive by the Bank incident to the Executive’s employment shall be governed
      by the applicable plan documents, summary plan descriptions or employment
      policies, and may be modified, suspended or revoked at any time, in accordance
      with the terms and provisions of the applicable documents.

     

    (d)  Reimbursement
      of Expenses.  During the Term of Employment, the Bank shall
      promptly pay all reasonable expenses incurred by the Executive for all
      reasonable travel and other business related expenses incurred by him in
      performing his obligations under this Agreement in accordance with the Bank’s
      travel and business expense policy, such expenses to be reviewed by the Bank’s
      Board of Directors on a periodic basis.

     

    4.  Compensation
      After Termination.

     

    (a)  If
      the
      Term of Employment is terminated (i) by the Bank for Cause (as defined
      below) or due to the death or disability of the Executive, (ii) by the
      Executive other than for Good Reason (as defined in Section 5(e)) or (iii) through expiration of the Term of
      Employment, the Bank shall have no further obligations hereunder or otherwise
      with respect to the Executive’s employment from and after the termination or
      expiration date (except payment of the Executive’s Base Salary and any bonus
      accrued and reimbursement of all reasonable travel and other business related
      expenses incurred through the date of termination or expiration) and the Bank
      shall continue to have all other rights available hereunder.

     

    (b)  If
      the
      Term of Employment is terminated (i) by the Bank Without Cause (as defined
      in
      Section 5(d)) or (ii) by the Executive for Good
      Reason (as defined in Section 5(e)), the Executive
      shall be entitled to receive as severance pay (in addition to the payment of
      the
      Base Salary and reimbursement of expenses through the date of termination),
      an
      amount equal to the Executive’s remaining Base Salary for the year of
      termination payable within thirty (30) days of the end of the Term of
      Employment.  After the thirtieth (30th) day following
      the
      end of the Term of Employment, the outstanding severance payment shall, until
      paid, bear interest per annum at the prime lending rate as published in The
      Wall
      Street Journal on the thirty-first (31st) day following
      the
      end of the Term of Employment.  Except as otherwise specifically
      provided herein, the Bank shall have no other obligations hereunder or otherwise
      with respect to the Executive’s employment from and after the termination or
      expiration date, and the Bank shall continue to have all other rights available
      hereunder.

     

    (c)  No
      termination under Section 5 shall terminate or
      adversely affect any rights of the Executive then vested under any disability
      or
      other benefit program of the Bank.

     

    5.  Termination.

     

    (a)  Death.  If
      the Executive dies during the Term of Employment and while in the employ of
      the
      Bank, this Agreement shall automatically terminate and neither the Bank shall
      have no further obligation to the Executive or his estate under this Agreement
      (other than death benefits payable under the benefit plans referenced in Section
      3(b) or Section 3(c)),
      except that the Bank shall pay the Executive’s estate that portion of the
      Executive’s Base Salary under Section 3(a) accrued
      through the date on which the Executive’s death occurred and reimbursement of
      all reasonable travel and other business related expenses incurred through
      the
      date on which the Executive’s death occurred.  Such payment of Base
      Salary and expenses to the Executive’s estate shall be made in the same manner
      as other payroll obligations of the Bank.

     

    (b)  Disability.

     

    (i)  the
      Bank
      may terminate this Agreement if, during the Term of Employment, the Executive
      shall be prevented from performing his duties hereunder by reason of becoming
      disabled.  For purposes of this Agreement, “disability” shall mean
      that the Executive is unable to engage in any substantial gainful activity
      by
      reason of any medically determinable physical or mental impairment that can
      be
      expected to result or death or expected to last for a continuous period of
      not
      less than 12 months.  During any period prior to termination during
      which the Executive fails to perform his duties as a result of incapacity due
      to
      physical or mental illness, the Executive shall continue to receive his full
      salary at the rate then in effect for such period until his employment
      terminates pursuant to this Section 5(b), provided that
      payments so made to the Executive
      during such period shall be reduced by the sum of the amounts, if any, payable
      to the Executive under any disability benefit plans of the Bank that were not
      previously applied to reduce such payment.

     

    (ii)  In
      the
      event of a termination pursuant to this Section 5(b), the Bank shall
      be relieved of all their
      obligations under this Agreement, except that the Bank shall pay to the
      Executive, or his estate in the event of his subsequent death,(i) the
      Executive’s Base Salary under Section 3(a) through
      the date on which such termination shall have occurred, reduced during such
      period by the amount of any benefits received by the Executive under any
      disability policy maintained by the Bank and any death benefits payable under
      the benefit plans referenced in Section 3(b) or
      Section 3(c) and (ii) reimbursement of all
      reasonable travel and other business related expenses incurred through the
      date
      on which such termination shall have occurred.  All such payments to
      the Executive or his estate shall be made in the same manner as other payroll
      obligations of the Bank.

     

    (c)  Discharge
      for Cause.  At any time during the Term of Employment, the Bank
      may discharge the Executive for Cause and terminate this Agreement by delivering
      to the Executive a written notice of discharge.  The notice of
      discharge shall set forth the reasons for the Executive’s termination for
      Cause.  For purposes of this Agreement, “Cause” shall be
      defined as the occurrence of any of the following events:

     

    (i)  The
      determination by the Board of Directors of the Bank, in the exercise of its
      reasonable judgment, after consultation with its legal counsel, that the
      Executive has committed an act or acts constituting (1) a felony, or other
      crime (whether a felony or a misdemeanor) involving moral turpitude, dishonesty
      or theft, (2) a breach of fiduciary duty, or (3) fraud;

     

    (ii)  The
      determination by the Board of Directors of the Bank, in the exercise of its
      reasonable judgment, that (1) the Executive has willfully failed to follow
      the policies adopted by the Board of Directors, other than technical or
      immaterial failures; (2) the Executive has failed to meet the duties and
      responsibilities inherent in Section 2 of this
      Agreement, other than technical or immaterial failures; or (3) the
      Executive has engaged in such intentional or reckless actions or omissions
      that
      would constitute unsafe or unsound banking practices, and, in the case of any
      termination pursuant to this 5(c)(ii), the
      Executive fails to cure such situation, assuming that such situation is curable,
      within thirty (30) days after written notice to the Executive by the Bank
      specifying in reasonable detail the reason for termination by the Board of
      Directors;

     

    (iii)  The
      determination by the Board of Directors of the Bank, in the exercise of its
      reasonable judgment, after consultation with its legal counsel, that the
      Executive has committed a breach or violation of this Agreement, and fails
      to
      cure such breach or violation within thirty (30) days after written notice
      to
      the Executive by   the Bank specifying in reasonable detail the
      alleged breach or violation;

     

    (iv)  The
      determination by the Board of Directors of the Bank, after consultation with
      its
      legal counsel, that the Executive has engaged in gross misconduct in the course
      and scope of his employment with the Bank, which shall be defined to mean
      indecency, immorality, dishonesty, unlawful harassment or discrimination, use
      of
      illegal drugs, or fighting; or

     

    (v)  In
      the
      event the Executive is prohibited from engaging in the business of banking
      by
      any governmental regulatory agency having jurisdiction over the
      Bank.

     

    For
      purposes of this Agreement, the Executive shall not be deemed to be in breach
      of
      this Agreement for his failure to substantially perform his duties under this
      Agreement where such failure results because the Executive has become disabled
      within the meaning of Section 5(b).  In such cases, termination
      of the
      Executive shall be governed by the provisions of Section 5(b).

     

    (d)  Discharge
      Without Cause.  At any time during the Term of Employment, the
      Bank shall be entitled to terminate the Executive’s employment and this
      Agreement “Without Cause,” by providing him with at least thirty (30)
      days prior written notice of termination.  Any termination of this
      Agreement which is not for Cause, as defined above in Section 5(c), or which does
      not
      result from the death or disability of the Executive, as set forth in Sections
      5(a) or 5(b),
      respectively, shall
      be deemed to be a termination Without Cause.  In the event of a
      termination Without Cause, the Bank shall become obligated to pay the Executive
      the severance payment set forth in Section 4(b).

     

    (e)  Good
      Reason.  At any time during the Term of Employment, the Executive
      may resign for Good Reason and terminate this Agreement by delivering to the
      Bank a written notice of resignation for Good Reason.  The notice of
      resignation shall set forth the reasons for the Executive’s resignation for Good
      Reason.  For purposes of this Agreement, “Good Reason” shall be
      defined as the occurrence of any of the following events:

     

    (i)  the
      assignment to Executive of any duties materially and adversely inconsistent
      with
      Executive’s status as a senior vice-president and member of the Bank’s senior
      management team or a material and adverse alteration in the nature of
      Executive’s authority, duties or responsibilities;

     

    (ii)  the
      reduction by the Bank of Executive’s Base Salary;

     

    (iii)  the
      requirement that Executive be based at any office or location other than an
      office of the Bank in Hammond, Louisiana; or

     

    (iv)  the
      failure of any successor to the Bank to assume this Agreement.

     

    6.  Resignation.  The
      Executive shall be entitled to terminate this Agreement by providing the Bank
      with a written notice of resignation at least thirty (30) days prior to the
      intended resignation date, upon which he shall be entitled to receive any Base
      Salary which has been earned by him through the effective date of such
      resignation.

     

    7.  Arbitration.  Any
      dispute or claim arising hereunder shall be settled by
      arbitration.  Any party may commence arbitration by sending a written
      notice or arbitration to the other party.  The notice will state the
      dispute with particularity.  The parties shall mutually agree to the
      selection of a qualified arbitrator.  If they do not agree with
      fifteen (15) days, then one party may request that a then presiding judge in
      Tangipahoa Parish, Louisiana select an attorney to become the arbitrator in
      this
      matter.  The arbitration hearing shall be commenced thirty (30) days
      following the date of delivery of notice of arbitration by one party to the
      other, under the terms of the Federal Arbitration Act.  The
      arbitration shall be conducted in Tangipahoa Parish, Louisiana in accordance
      with the Federal Arbitration Act, and each party shall retain the right to
      cross-examine the opposing party’s witnesses, either through legal counsel,
      expert witnesses or both.  As part of his or her decision, the
      arbitrator may allocate the cost of arbitration, including fees of attorneys
      and
      experts, as he or she deems fair and equitable in light of all relevant
      circumstances.  Judgment on the award rendered by the arbitrator may
      be entered in any court of competent jurisdiction.

     

    8.  Goodwill.  The
      Executive acknowledges that the Bank will, over a period of time, develop,
      significant relationships and goodwill between itself and its clients and
      customers by providing superior products and services.  The Executive
      further acknowledges that these relationships and this goodwill are a valuable
      asset belonging solely to the Bank.  The Executive understands that
      the Bank agrees to compensate him, as well as to reimburse him for reasonable
      and necessary business expenses incurred, while he builds and/or maintains
      business relationships and goodwill with the Bank’s current and prospective
      clients and customers on a personal level.  The Executive acknowledges
      that the responsibility to build and maintain business relationships and
      goodwill with current and prospective clients and customers creates a special
      relationship of trust and confidence between him, the Bank, and their clients
      and customers.

     

    9.  Notices.  All
      notices, requests, consents and other communications to be given or delivered
      hereunder or by reason of the provisions of this Agreement shall be in writing
      and shall be deemed to have been properly served if (a) delivered
      personally, (b) delivered by a recognized overnight courier service,
      (c) sent by certified or registered mail, return receipt requested and
      first class postage prepaid, or (d) sent by facsimile transmission followed
      by a confirmation copy delivered by recognized overnight courier service the
      next day.  Such notices, requests, consents and other communications
      shall be sent to the respective parties as follows:

     

    (i) if
      to the Executive:

     

    Cordell
      H. White

    41464
      Rue
      Maison

    Ponchatoula,
      Louisiana 70454, and

     

    (ii) if
      to the Bank:

     

    First
      Guaranty Bank

    400
      Guaranty Square

    Hammond,
      Louisiana 70401

    Attn:  Chief
      Executive Officer.

     

    Any
      Party
      hereto may designate a different address by providing written notice of such
      new
      address to the other Parties.  Date of service of such notice shall be
      (i) the date such notice is personally delivered or sent by facsimile
      transmission (with issuance by the transmitting machine of a confirmation of
      a
      successful transmission), (ii) three business days after the date of
      mailing if sent by certified or registered mail or (iii) one business day
      after the date of delivery to the overnight courier if sent by overnight
      courier.

     

    10.  Severability.  The
      Parties acknowledge that each covenant and/or provision of this Agreement shall
      be enforceable independently of every other covenant and/or
      provision.  Furthermore, the Executive, the Bank acknowledge that, in
      the event any covenant and/or provision of this Agreement is determined to
      be
      unenforceable for any reason, the remaining covenants and/or provisions will
      remain effective, binding and enforceable.

     

    11.  Complete
      Agreement; Modification.  Except with respect to that certain
      Confidentiality and Non-Disclosure Agreement executed concurrently herewith
      and
      any rights the Executive may have under the Merger Agreement, the Parties
      acknowledge and agree that (a) this Agreement constitutes the complete and
      entire agreement between the parties with respect to the subject matter hereof;
      (b) each executed this Agreement based upon the express terms and provisions
      set
      forth herein; (c) in accepting employment with the Company and the Bank, the
      Executive has not relied on any representations, oral or written, which are
      not
      set forth in this Agreement, (d) no previous agreement, either oral or written,
      shall have any effect on the terms or provisions of this Agreement and (e)
      all
      such previous agreements with respect to the subject matter hereof, either
      oral
      or written, are expressly superseded and revoked by this
      Agreement.  The provisions hereof may not be altered, amended,
      modified, waived, or discharged in any way whatsoever, except by written
      agreement executed by the Parties.  No waiver shall be deemed a
      continuing waiver or a waiver of any subsequent breach or default, either of
      a
      similar or different nature, unless expressly so stated in writing.

     

    12.  Governing
      Law.  This Agreement shall be construed and enforced in accordance
      with, and all questions concerning the construction, validity, interpretation
      and performance of this Agreement shall be governed by, the laws of the State
      of
      Louisiana, without giving effect to provision thereof regarding conflict of
      laws.

     

    13.  Prior
      Agreements.  The Executive represents that his service as an
      employee of   the Bank will not violate any
      agreement:  (i) he has made that prohibits him from disclosing
      any information he acquired prior to his becoming employed by the Bank; or
      (ii) he had made that prohibits him from accepting employment
      with   the Bank or that will interfere with his compliance with
      the terms of this Agreement.  The Executive further represents that he
      has not previously, and will not in the future, disclose to   the
      Bank any proprietary information or trade secrets belonging to any previous
      employer.  The Executive acknowledges that the Bank has instructed him
      not to disclose to it any proprietary information or trade secrets belonging
      to
      any previous employer.

     

    14.  Voluntary
      Agreement.  The Parties acknowledge that each has carefully read
      this agreement, that each has had an opportunity to consult with his or its
      attorney concerning the meaning, import and legal significance of this
      Agreement, that each understands its terms, that all understandings and
      agreements between the Parties relating to the subjects covered in this
      Agreement are contained in it, and that each has entered into the Agreement
      voluntarily and not in reliance on any promises or representations by the other
      than those contained in this Agreement.

     

     [Signature
      page follows]

    
      
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    [Signature
      Page to the Executive Employment Agreement]

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first written above, to be effective as of the Effective Date.

     

     

    
      	
              THE
                EXECUTIVE:

            	 
	 	
              Cordell
                H. White

            
	 	 
	
              THE
                BANK:

            	
              First
                Guaranty Bank,

            
	 	
              a
                Louisiana state bank

            
	 	 
	 	
              By:

            	 
	 	
              Name:

            	
              
                Michel
                  R. Sharp

              

            
	 	
              Title:

            	
              
                President

              

            
	 	 	 
	 	 	 

    

    

     

    

    
      
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      LOUISIANA
        ANCILLARY CONFIDENTIALITY
        AND

      NON-COMPETITION
        AGREEMENT

      

      THIS
        CONFIDENTIALITY AND
        NON-COMPETITION AGREEMENT (the “Agreement”) dated November 2, 2007 is
        made by Cordell White (“Executive”) and First Guaranty Bank (the
“Bank”).

      

      RECITALS

      

      A.
        Executive and the Bank have entered
        into an Employment Agreement dated this date (the “Employment
        Agreement”), to which this Agreement is ancillary and incorporated by
        reference, pursuant to which, among other things, the Bank agrees to make
        certain payments to Executive; and

      

      B.  Pursuant
        to the
        Employment Agreement, the Bank and Executive have agreed to enter into this
        Ancillary Agreement.

      

      The
        parties accordingly agree as
        follows:

      

      AGREEMENT

      

      

      1.  Definitions.  Each
        capitalized term not defined in this Agreement has the meaning assigned to
        it in
        the Employment Agreement.

       

      2.  Term.  The
        term of this Agreement begins at the Effective Time of the Mergers and continues
        through the earlier of (i) December 31, 2008 or (ii) the date of termination
        of
        the Executive’s employment with the Bank (A) by the Bank Without Cause or (B) by
        the Executive for Good Reason.

       

      3.  Confidentiality.  Executive
        acknowledges that in the course of his relationship with First Community
        Bank he
        has in the past received, and may in the future receive in the course of
        his
        relationship with the Bank, certain trade secrets, programs, lists of customers
        and other confidential or proprietary information and knowledge concerning
        the
        business of the Bank and its parent, First Guaranty Bancshares, Inc.
        (“Confidential Information”) which the Bank desires to
        protect.  Executive understands that the information is confidential,
        and he agrees not to reveal the Confidential Information to anyone outside
        the
        Bank, other than such disclosure as authorized by the Bank or is made to
        a
        person transacting business with the Bank who has reasonable need for such
        Confidential Information.  Executive further agrees that he will at no
        time use the Confidential Information for or on behalf of any person other
        than
        the Bank for any purpose.

       

      4.  Return
        of Bank Property.  The Executive acknowledges that all
        memoranda, notes, records, reports, manuals, books, papers, letters, client
        and
        customer lists, contracts, software programs, information and records, drafts
        of
        instructions, guides and manuals, and other documentation (whether in draft
        or
        final form), and other sales or financial information and aids relating to
        the
        Bank’s business, and any and all other documents containing Confidential
        Information furnished to the Executive by any representative of the Bank
        or
        otherwise acquired or developed by the Executive in connection with his
        association with the Bank (collectively, “Recipient Materials”) shall at
        all times be the property of the Bank (as applicable).  Within
        twenty-four (24) hours of the termination of his employment with the Bank,
        the
        Executive shall return to the Bank any Recipient Materials which are in his
        possession, custody or control.

      

      5.  Unfair
        Competition Restrictions; Non-Solicitation of
        Customers; Non-Solicitation of
        Employees.  Throughout the term of this Agreement, the
        Executive agrees not to do any of the following, directly or indirectly,
        for
        himself or for others, anywhere in the Louisiana Parishes of Tangipahoa,
        Livingston, Vermillion, Jefferson Davis, Claiborne, Caddo, Lincoln, Bossier,
        and
        St. Tammany (the “Restricted Area”) unless expressly authorized by the
        Bank's board of directors:

       

      (a)           engage
        in, or assist any person, entity, or business engaged in, the selling or
        providing of products or services that would displace the products or services
        that (i) the Bank is currently in the business of providing and was in the
        business of providing at the time of the execution of this Agreement, or
        (ii)
        that Executive had involvement in, access to, or received Confidential
        Information about in the course of employment.  The foregoing is
        expressly understood to include, without limitation, the business of the
        manufacturing, selling and/or providing products or services of the same
        type
        offered and/or sold by the Bank.

       

      (b)           call
        on, service, or solicit competing business from customers of the Bank, in
        the
        Restricted Area, whom he, within the previous 12 months, (i) had or made
        contact
        with, or (ii) had access to information and files about; or, induce or encourage
        any such customer or other source of ongoing business to stop doing business
        with the Bank.  This provision does not prohibit Executive from
        managing or providing other services or products that are not a product or
        services currently offered by the Bank.

       

      (c)           call
        on, solicit, encourage, or induce any other employee or officer of the Bank,
        whom he had contact with, knowledge of, or association within the course
        of
        employment with the Bank to discontinue his or her employment, and will not
        assist any other person or entity in such a solicitation.

       

      6.  Non-Disparagement.  Executive
        covenants and agrees he will not engage in any pattern of conduct that involves
        the making or publishing of written or oral statements or remarks (including,
        without limitation, the repetition or distribution of derogatory rumors,
        allegations, negative reports or comments) which are disparaging, deleterious
        or
        damaging to the integrity, reputation or good will of the Bank or its respective
        management or products and services.

       

      7.  Separability
        of Covenants.  The covenants contained in Section 5
        constitute a series of separate but ancillary covenants, one for each applicable
        parish in the State of Louisiana that is within the Restricted
        Area.  If in any judicial proceeding, a court shall hold that any of
        the covenants set forth in Section 5 exceed the time, geographic, or
        occupational limitations permitted by applicable law, Executive and the Bank
        agree that such provisions shall and are hereby reformed to the maximum time,
        geographic, or occupational limitations permitted by such
        laws.   Further, in the event a court shall hold unenforceable
        any of the separate covenants deemed included herein, then such unenforceable
        covenant or covenants shall be deemed eliminated from the provisions of this
        Agreement for the purpose of such proceeding to the extent necessary to permit
        the remaining separate covenants to be enforced in such
        proceeding.  Executive and the Bank further agree that the covenants
        in Section 5 shall each be construed as a separate agreement independent
        of any
        other provisions of this Agreement, and the existence of any claim or cause
        of
        action by Executive against the Bank, whether predicated on this Agreement, his
        Employment Agreement or otherwise, shall not constitute a defense to the
        enforcement by the Bank of any of the covenants of Section 5.

       

      8.  Consideration.  Executive
        acknowledges and agrees that no other consideration for Executive's covenants
        in
        this Agreement, other than that specifically referred to in the Employment
        Agreement, has or will be paid or furnished to him by the Bank.

       

      9.  Meaning
        of Certain Terms.  All non-capitalized terms in Sections 3, 4
        and 5 are intended to and shall have the same meanings that those terms (to
        the
        extent they appear therein) have in
        La.  R.  S.  23:921.C.  Subject to and
        only to the extent not consistent with the foregoing sentence, the parties
        understand the following phrases to have the following meanings:

       

      (a)           The
        phrase “carrying on or engaging in a business similar to the business of the
        Bank” includes engaging, as principal, officer, employee, agent, trustee,
        advisor, consultant or through the agency of any bank, corporation, partnership,
        association or agent or agency, in any business which conducts business in
        competition with the Bank or being the owner of more than one percent of
        the
        outstanding capital stock of any corporation, or an officer, director, or
        employee of any corporation or other entity, (other than the Bank or a
        corporation or other entity, affiliated with the Bank) or a member or employee
        or any partnership, or an owner or employee of any other business, which
        conducts a business or provides a service in the Restricted Area in competition
        with the Bank or any affiliated corporation or other
        entity.  Moreover, the term also includes (i) directly or indirectly
        inducing any current customers of the Bank, or any affiliated corporation
        or
        other entity, to patronize any product or service business in competition
        with
        the Bank or any affiliated corporation or other entity, (ii) canvassing,
        soliciting, or accepting any product or service business of the type conducted
        by the Bank or any affiliated corporation or other entity (iii) directly
        or
        indirectly requesting or advising any current customers of the Bank or any
        affiliated corporation or other entity, to withdraw, curtail or cancel such
        customer’s business with the Bank or any affiliated corporation or other entity;
        or (iv) directly or indirectly disclosing to any other person, firm, corporation
        or entity, the names or addresses of any of the current customers of the
        Bank or
        any affiliated corporation or other entity or the rates or other terms on
        which
        the Bank provides services to its customers.  In addition, the term
        includes directly or indirectly, through any person, firm, association,
        corporation or other entity with which Executive is now or may hereafter
        become
        associated, causing or inducing any present employee of the Bank or any
        affiliated corporation or other entity to leave the employ of the Bank or
        any
        affiliated corporation or other entity to accept employment with Executive
        or
        with such person, firm, association, corporation, or other entity.

      

      (b)           The
        phrase “a business similar to the business of the Bank”
means the taking of deposits and other receipt
        of funds from customers, the
        making of loans and other extensions of credit, maintaining checking accounts
        for customers, providing investment vehicles such as certificates of deposit
        to
        customers and providing trust services.

      

      (c)           The
        phrase “carries on a like business” includes, without limitation, actions
        taken by or through a holding company, wholly-owned subsidiary or other
        affiliated corporation or entity.

      

      10.  Reasonable
        Restrictions.  Executive represents to the Bank that the
        enforcement of the restrictions contained in this Agreement would not be
        unduly
        burdensome to Executive and acknowledges that Executive is willing and able,
        subject to the Restricted Area as defined herein, to compete in other
        geographical areas not prohibited by this Agreement.  The parties to
        this Agreement hereby agree that the covenants contained in this Agreement
        are
        reasonable.

       

      11.  Entire
        Agreement.  Except with respect to the Employment Agreement
        executed concurrently herewith, this Agreement constitutes the entire agreement
        between the parties hereto with respect to the subject matter of this Agreement
        and supersedes and is in full substitution for any and all prior agreements
        and
        understandings whether written or oral between said parties relating to the
        subject matter of this Agreement.  This Agreement shall not supersede
        or substitute for, nor be superseded or substituted by, the Employment
        Agreement, but shall have full force and effect concurrently
        therewith.

       

      12.  Amendment.  This
        Agreement may not be amended or modified in any respect except by an agreement
        in writing executed by the parties in the same manner as this Agreement except
        as provided in Section 13 of this Agreement.

       

      13.  Unenforceable
        Provisions.  If, and to the extent that, any section,
        paragraph, part, term and/or provision of this Agreement would otherwise
        be
        found null, void, or unenforceable under applicable law by any court of
        competent jurisdiction, that section, paragraph, part, term and/or provision
        shall automatically not constitute part of this Agreement.  Each
        section, paragraph, part, term and/or provision of this Agreement is intended
        to
        be and is severable from the remainder of this Agreement.  If, for any
        reason, any section, paragraph, part, term and/or provision herein is determined
        not to constitute part of this Agreement or to be null, void, or unenforceable
        under applicable law by any court of competent jurisdiction, the operation
        of
        the other sections, paragraphs, parts, terms and/or provisions of this Agreement
        as may remain otherwise intelligible shall not be impaired or otherwise affected
        and shall continue to have full force and effect and bind the parties
        hereto.

       

      14.  Remedies.

       

      (a)           Executive
        agrees that a breach or violation of Section 3, 4 or 5 of this Agreement
        by
        Executive shall entitle the Bank as a matter of right, to an injunction,
        without
        necessity of posting bond, issued by any court of competent jurisdiction,
        restraining any further or continued breach or violation of such
        provisions.  Such right to an injunction shall be cumulative and in
        addition, and not in lieu of, any other remedies to which the Bank may show
        themselves justly entitled, including, but not limited to, specific performance
        and damages.  The parties specifically agree that the remedy of
        damages alone is inadequate.

      

      (b)           In
        the event that Executive knowingly and intentionally fails in any material
        respect to perform any of his material obligations under this Agreement,
        the
        Bank may elect (i) to cease all payments under the Employment Agreement and
        recover all payments previously made to Executive under the Employment
        Agreement, (ii) obtain an injunction and/or (iii) exercise any and all other
        remedies available by law.

      

      (c)           Notwithstanding
        the foregoing subsection (b), Executive  will have no liability or
        responsibility for: (i) inadvertent disclosure or use of the Confidential
        Information if (x) he uses the same degree of care in safeguarding the
        Confidential Information that the Bank uses to safeguard information of like
        importance and (y) upon discovery of such inadvertent disclosure or use of
        such
        material, Executive immediately uses his best efforts, including the
        commencement of litigation, if necessary, to prevent any use thereof by the
        person or persons to whom it has been disclosed and to prevent any further
        incidental disclosure thereof; and, (ii) disclosure of any Confidential
        Information (x) that is required by law, (y) that is made pursuant to a proper
        subpoena from a court or administrative agency of competent jurisdiction
        from a
        court or administrative agency of competent jurisdiction or (z) that is made
        upon written demand of an official involved in regulating the Executive if
        before disclosure is made, Executive immediately notifies the Bank of the
        requested disclosure by the most immediate means of communication available
        and
        confirms in writing such notification within one business day
        thereafter.

      

      15.  Notice.  All
        notices, consents, requests, approvals or other communications in connection
        with this Agreement and all legal process in regard hereto shall be in writing
        and shall be deemed validly delivered, if delivered personally or sent by
        certified mail, postage prepaid.  Unless changed by written notice
        pursuant hereto, the address of each party for the purposes hereof is as
        follows:

       

      If
        to
        Executive:                                                                           If
        to the Bank:

      
 

      Cordell
        White                                                                              
First Guaranty Bank

      41464
        Rue
        Maison                                                                      
400  East Thomas Street

      Ponchatoula,
        LA
        70454                                                               Hammond,
        LA.  70401

                             
        Attention:  Michael R. Sharp, President

      

      Notice
        given by mail as set out above shall be deemed delivered only when actually
        received.

      

      16.  Descriptive
        Headings.  The descriptive headings of the several sections
        of this Agreement are inserted for convenience only and shall not control
        or
        affect the meaning or construction of any of the provisions hereof.

       

      17.  Governing
        Law.  This Agreement shall be governed by and construed and
        enforced in accordance with the laws of the State of Louisiana without regard
        to
        conflicts of law principles.

       

      

      

      IN
        WITNESS WHEREOF, the parties have duly executed this Agreement as of
        the date first above written.

      

      Executive:                                                                                     First
        Guaranty Bank

       

       

      ________________________                    By:________________________

      Cordell
        White                                                                                             Michael
        R. Sharp, Presidentexhibit10i.htm

    EXHIBIT
      10(i)

     

    WAIVER
      AND SECOND AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO BORROWER
      SECURITY AGREEMENT

     

    THIS
      WAIVER AND SECOND AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO BORROWER
      SECURITY AGREEMENT (this “Amendment”) is entered into
      as of September 19, 2007, between SOUTH HAMPTON RESOURCES, INC., a Texas
      corporation (“Borrower”), and BANK OF AMERICA, N.A., a
      national banking association
      (“Lender”).  Capitalized terms used but not
      defined in this Amendment have the meaning given them in the Credit Agreement
      (defined below).

     

    RECITALS

     

    A.           Borrower
      and Lender entered into that certain Credit Agreement dated as of May 25, 2006
      (as amended by that certain Waiver and First Amendment to Credit Agreement
      dated
      as of December 31, 2006, and as further, restated or supplemented, the
“Credit Agreement”), under which Lender agreed to
      provide to Borrower, subject to the terms and conditions contained therein,
      a
      revolving credit facility.

     

    B.           To
      secure Borrower’s obligations and indebtedness under the Credit Agreement and
      the other Loan Documents, Borrower executed and delivered that certain Security
      Agreement dated as of even date with the Credit Agreement covering the
      collateral identified therein (as amended, restated or otherwise modified from
      time to time, the “Borrower Security
      Agreement”).

     

    C.           A
      certain Default has occurred as a result of TOCCO’s failure to comply with the
      maximum Unfinanced Capital Expenditure covenant for the period ended March
      31,
      2007 pursuant to Section 10.3 of the Credit Agreement
      (the “Existing Default”).

     

    D.           Borrower
      has requested that Lender waive the Existing Default, make the Term Loan
      available to Borrower pursuant to Section 5.2(b) of
      the Credit Agreement (before giving effect to this Amendment), and amend the
      Borrower Security Agreement, and Lender has agreed to waive the Existing
      Default, make the Term Loan available to Borrower pursuant to
Section 5.2(b) of the Credit Agreement (before giving
      effect to this Amendment) and to make other amendments to the Credit Agreement,
      and amend the Borrower Security Agreement, in each case subject to the terms
      and
      conditions of this Amendment.

     

    NOW
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are acknowledged, the undersigned hereby agree as follows:

     

    1.  Waiver
      of Existing Default.  Subject to the conditions set out in this
      Amendment, Lender hereby (a) waives any violation of, or noncompliance with,
      any
      provision of any Loan Document caused solely by the Existing Default, and (b)
      agrees not to exercise any of its Rights available under the Loan Documents
      solely as a result of any such violation or noncompliance described in
clause (a) of this Section
      1.  Except as set out in the immediately preceding
      sentence, Borrower hereby agrees that such waiver does not constitute a waiver
      of any present or future violation of or noncompliance with any provision of
      any
      Loan Document or a waiver of Lender’s right to insist upon strict compliance
      with each term, covenant, condition, and provision of the Loan
      Documents.

     

    2.  Amendments
      to Credit Agreement.   The Credit Agreement is hereby amended
      as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)  The
      Recitals to the Credit Agreement are hereby deleted in their entirety and
      replaced with the following Recitals:

     

    “A.           Borrower
      has requested that Lender extend credit to Borrower (i) in the maximum principal
      amount of $12,000,000 in the form of a revolving credit facility that includes
      a
      $3,000,000 subfacility for Swap Contracts, and a $9,000,000 subfacility for
      the
      issuance of LCs, and (ii) in the maximum principal amount of up to $10,000,000
      in the form of an advancing term loan facility to finance the Subject Expansion
      (as defined below).

    

    B.           Lender
      is willing to extend the revolving credit facility, extend the Swap Contract
      subfacility, extend the letter of credit subfacility, and extend the termloan
      facility, in each case on the terms and conditions of this
      Agreement.

    

    Accordingly,
      Borrower and Lender agree as follows:”

    

    (b)  Section
      1.1 of the Credit Agreement is hereby amended to delete the
      defined terms “Permitted Liens”, “Security Documents”, “Term Committed Amount”,
“Term Loan Date”, and “Term Loan Maturity Date”, and replaced them with the
      defined terms as follows:

     

    “Permitted
      Liens means (a) Liens securing the Obligation, (b) Liens existing
      on the Closing Date and described on Schedule 2,
      (c) Liens listed on Exhibit B to the Deed of Trust, (d) Liens which secure
      purchase money Debt and capital lease obligations permitted under
clause (c) of the definition of Permitted Debt, (e) easements,
      rights-of-way, encumbrances and other restrictions on the use of real property
      which do not materially impair the use thereof, (f) Liens for Taxes;
provided that, (i) no amounts are due and payable and no Lien has
      been filed or agreed to, or (ii)  the validity or amount thereof is being
      contested in good faith by lawful proceedings diligently conducted, and reserve
      or other provision required by GAAP has been made, (g) judgments and attachments
      permitted by Section 11.4, (h) pledges or deposits
      made to secure payment of workers’ compensation, unemployment insurance or other
      forms of governmental insurance or benefits or to participate in any fund in
      connection with workers’ compensation, unemployment insurance, pensions or other
      social security programs, (i) rights of offset or statutory banker’s Lien
      arising in the ordinary course of business in favor of commercial banks;
      provided that, any such Lien shall only extend to deposits and property in
      possession of such commercial bank and its Affiliates, (j) good-faith pledges
      or
      deposits made in the ordinary course of business to secure (i) performance
      of bids, tenders, trade contracts (other than for the repayment of
      borrowed money) or leases, (ii) statutory obligations, or (iii) surety or
      appeal bonds, or indemnity, performance or other similar bonds, which, in the
      aggregate under this clause (j), do not exceed $250,000 at any time,
      and (k) Liens (other than for Taxes) imposed by operation of law
      (including Liens of mechanics, materialmen, warehousemen, carriers and landlords
      and similar Liens); provided that, (i) the validity or amount
      thereof is being contested in good faith by lawful proceedings diligently
      conducted, (ii) reserve or other provision required by GAAP has been made,
      and (iii) within 60 days after the entry hereof, levy and execution thereon
      have been (and continue to be) stayed or payment thereof is covered in full
      by
      insurance (subject to the customary deductible).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Security
      Documents means all Security Agreements, all Deeds of Trust, all
      Assignments of Contracts, and all other documents executed in connection
      therewith to create or perfect a Lien on the Collateral.

    

    Term
      Committed Amount means the lesser of (a) the aggregate
      amount of all invoices paid with the proceeds of the Term Loan for the Subject
      Expansion, and (b) $10,000,000.

     

    Term
      Loan Date means the effective date of the Second Amendment to this
      Agreement.

     

    Term
      Loan Maturity Date means October
      31, 2018.”

    

    (c)  Section
      1.1 of the Credit Agreement is hereby amended to add the following
      defined terms in their appropriate alphabetical order as follows:

     

    “Appraisal
      means a written appraisal of the Subject Property prepared on
      an
“as-completed” basis by an independent MAI appraiser reasonably acceptable to
      Lender and properly certified by the State of Texas in accordance with Title
      XI
      of the Financial Institutions Reform, Recovery and Enforcement Act of 1989,
      or,
      at Lender’s option, by Lender’s “in-house” appraiser.  Such Appraisal
      shall be ordered by Lender directly and shall be in Proper Form.

     

    Assignment
      of Contracts means the Assignment of Rights under Construction
      Contracts, Permits, Plans and Contracts executed by Borrower to Lender in
      connection with this Agreement in Proper Form.

     

    construction
      and constructed means, as applicable, the development,
      demolition, construction, erection and installation of any Improvements on
      the
      Subject Property pertaining to the Subject Expansion.

     

    Construction
      Contracts means all construction contracts between Borrower and
      any contractor or subcontractor for the construction of any Improvements to
      the
      Subject Property pertaining to the Subject Expansion, contracts between any
      contractor and any subcontractor, and contracts between any of the foregoing
      and
      any other person or entity relating to rendering of services or furnishing
      of
      materials in connection with the construction of such Improvements.

     

    Conversion
      Date is the date the Term Loan converts from a multiple advance
      loan to a “mini-perm” term loan which is the date that all of the conditions
      precedent in Section 5.5 below have been satisfied;
provided, that, the Conversion Date may not
      occur after
      December 1, 2008.

     

    Force
      Majeure means any event or circumstance, or combination of events
      or circumstances, that is beyond the control of the party hereto claiming force
      majeure, which materially and adversely affects the ability of such party to
      perform its obligations under or pursuant to this Agreement, including, without
      limitation, (a) any explosions, implosions, fires, conflagrations, accidents,
      epidemics, contamination, (b) floods, hail, tornadoes, hurricanes, (c) acts
      of
      war (whether declared or not declared), blockade or embargo, (d) acts of public
      enemy, acts of terrorism, riot, public disorder or violent demonstrations,
      and
      (e) strikes or failure of supply of materials, labor, fuel, power, equipment,
      supplies or transportation.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Impositions
      means all Taxes, including: real estate and personal property ad valorem Taxes;
      water, gas, sewer, electricity and other utility rates and charges; charges
      imposed pursuant to any subdivision, planned unit development, or condominium
      declaration or restrictions; charges for any easement, license, or agreement
      maintained for the benefit of the Subject Property; and all other Taxes, standby
      fees, charges, and assessments and any interest, costs, or penalties of any
      kind
      with respect to the Subject Property which may be assessed, levied, or imposed
      upon the Subject Property or the ownership, use, occupancy, or enjoyment
      thereof.

     

    Improvements
      means all buildings, structures, open parking areas, amenities, and other
      improvements and any and all accessions, additions, replacements, substitutions,
      or alterations thereof or appurtenances thereto, currently or subsequently
      situated, placed, or constructed upon the Subject Property, or any part
      thereof.

     

    Insurance
      Policies means (a) owner’s policies of comprehensive general
      public liability insurance, including worker’s compensation insurance if
      required by law; (b) hazard insurance against all risks of loss, including
      fire,
      water damage, or collapse, in an amount not less than the full replacement
      cost
      of all Improvements, including the cost of debris removal, with annual agreed
      amount endorsement (or waiver of co-insurance clause) and which is sufficient
      at
      all times to prevent Borrower from becoming a co-insurer; (c) if the Property
      is
      in a “Flood Hazard Area,” a flood insurance policy, or binder therefor, in an
      amount equal to the Term Loan Committed Amount, or the maximum amount available
      under the Flood Disaster Protection Act of 1973 and regulations issued
      pursuant thereto, as amended from time to time, whichever is less, in form
      complying with the “insurance purchase requirement” of such Act; and (d) such
      other insurance, if any, as Lender may reasonably require, including but not
      limited to broad form boiler and machinery insurance on all equipment and
      objects customarily covered thereby if there are pressure fired vehicles within
      the Subject Property.  All Insurance Policies shall (i) be issued and
      maintained in form, of types and amounts (with co-insurance and deductibles)
      as
      is customary in the case of similar businesses, and by companies satisfactory
      to
      Lender, (ii) contain a mortgagee clause (without contribution) in favor of
      Lender with loss proceeds payable to Lender as its interest may appear, (iii)
      require not less than 30 days prior written notice to Lender of any cancellation
      or change of coverage, and (iv) provide that no act of the insured or any
      occupant, and no occupancy or use of the Subject Property for purposes more
      hazardous than permitted by the terms of the policy, will affect the validity
      or
      enforceability of the insurance as respects Lender.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Subject
      Expansion means, collectively, the development, construction,
      equipping and installation of certain Improvements on the Subject Property
      to
      expand Borrower’s penhex manufacturing capacity as disclosed to Lender in
      connection with Lender’s underwriting and credit approval of the Term
      Loan.

     

    Termination
      Date means the final date that Loans may be made under the Term
      Loan, which date shall be the earlier of (a) the Conversion Date, and
      (b) the occurrence of a Default.

     

    Title
      Company means the title insurance company, reasonably acceptable
      to Lender, issuing the Title Insurance Policy.

     

    Title
      Insurance Policy means a mortgagee title insurance policy, as
      Lender may require, issued in favor of Lender by the Title Company on behalf
      of
      the Title Company’s underwriter, on a coinsurance or reinsurance basis (with
      direct access in Texas) if and as required by Lender in an amount equal to
      one
      hundred one hundred percent (100%) of the face amount of the Term Note, in
      such
      form as may be prescribed by applicable Governmental Requirements and as shall
      be satisfactory to Lender, certifying that good and indefeasible fee title
      to
      the Subject Property is vested in Borrower, and that Lender’s Lien on the
      Subject Property is a first priority lien thereon, subject only to a pending
      disbursements clause and exceptions acceptable to Lender and required by
      applicable state title insurance regulations.

     

    (d)  Section
      2.1 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 2.1 as follows:

     

    “2.1           Term
      Loan.  Subject to the terms and conditions of this Agreement,
      including without limitation, the loan procedures set out in Section
      2.3 below, Lender agrees to lend to Borrower multiple Loans under
      the Term Loan which Borrower may borrow, and prepay but which may not be
      re-borrowed under this Agreement (collectively, the “Term
      Loan”).”

     

    (e)  Section
      2.3 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 2.3 as follows:

     

    “2.3           Loan
      Procedures.

     

    (a)           Subject
      to compliance with Section 5, Borrower may
      request a Loan under the Revolving Credit Facility by submitting a Loan Request
      to Lender.  A Loan Request is irrevocable and binding on
      Borrower.  Each Loan Request must be received by Lender no later than
      10:00 a.m. on (a) the third Business Day preceding the proposed Loan Date
      for a LIBOR Loan and (b) the proposed Loan Date for a Base Rate
      Loan.  Loans may be outstanding as either Base Rate Loans or LIBOR
      Loans.  Each Loan under the Revolving Credit Facility is subject to
      the following conditions:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)           each
      Loan must occur on a Business Day and no later than the Business Day immediately
      preceding the Revolving Credit Termination Date;

     

    (ii)           each
      Loan (unless the remaining amount under clause (c) below is less) must
      be in an amount not less than $100,000 (if a Base Rate Loan) or
      $100,000 (if a LIBOR Loan) or a greater integral multiple of
      $10,000;

     

    (iii)           no
      Loan may exceed an amount equal to the lesser of (a) the excess of the
      Revolving Committed Amount over the Revolving Credit Exposure and (b) the excess
      of the Borrowing Base over the Revolving Credit Exposure; and

     

    (iv)           after
      giving effect to any Loan, the aggregate Revolving Credit Exposure may not
      exceed the Revolving Credit Limit.

     

    (b)           Subject
      to compliance with Section 5, Borrower may
      request a Loan under the Term Loan by submitting a Loan Request to
      Lender.  A Loan Request is irrevocable and binding on
      Borrower.  Each Loan Request must be received by Lender no later than
      10:00 a.m. on (a) the third Business Day preceding the proposed Loan Date
      for a LIBOR Loan and (b) the proposed Loan Date for a Base Rate
      Loan.  Loans may be outstanding as either Base Rate Loans or LIBOR
      Loans.  Each Loan under the Term Loan is subject to the following
      conditions:

     

    (i)  Each
      Loan
      under the Term Loan must occur on a Business Day and no later than the Business
      Day immediately preceding the Conversion Date;

     

    (ii)           Each
      Loan (unless the remaining amount under clause (d) below is less) must
      be in the amount shown on the accompanied invoice submitted for payment with
      the
      proceeds of such Loan but in any event no Loan may be for less than
$10,000;

     

    (iii)           Each
      Loan Request shall be accompanied by the invoice or invoices submitted for
      payment therefore, and no Loan under the Term Loan may exceed the aggregate
      amount of such invoice or invoices;

     

    (iv)           No
      more than one Loan under the Term Loan may be made during a one month period;
      and

     

    (v)           The
      Principal Debt may not exceed the Term Loan Committed Amount after giving effect
      to each Loan under the Term Loan.”

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f)  Section
      2.4(c) of the Credit Agreement is hereby deleted in its entirety
      and replaced with Section 2.4(c) as
      follows:

     

    “(c)           If
      the Term Principal Debt ever exceeds the Term Loan Committed Amount, then
      Borrower shall promptly prepay the Term Principal Debt in an amount equal to
      the
      excess, together with all accrued and unpaid interest on the principal amount
      prepaid.”

    

    (g)  Section
      3.2 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 3.2 as follows:

     

    “3.2
      Payments

     

     

    (a)           Interest
      Payments.  Accrued and unpaid interest on each Loan in respect of
      the Principal Debt is due and payable in arrears on the first Business Day
      of
      each month beginning with the first Business Day of June 2006, and continuing
      on
      the first Business Day of each month thereafter through the Revolving Credit
      Termination Date.

     

    (b)           Principal
      Payments; Swap Contracts.

     

    (i)           On
      the Conversion Date, the Term Principal Debt shall amortize based on a ten
      year
      commercial style amortization method  and installments of the Term
      Principal Debt shall be due and payable on the first Business Day of each
      January, April, July, and October commencing with the first such date following
      the Conversion Date.

     

    (ii)           The
      Revolving Principal Debt is due and payable on the Revolving Credit Termination
      Date.

     

    (iii)           The
      Swap Termination Value (if any) owing by Borrower when such Swap Contract has
      been closed out or otherwise terminated shall be due and payable in full on
      the
      date of such closing out or termination and otherwise in accordance with the
      terms and conditions of the Swap Contract.”

     

    (h)  Section
      3.4 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 3.4 as follows:

     

    “3.4
      Interest and Default Rate.

    

    (a)           Except
      as otherwise provided in this Agreement, Loans under the Revolving Credit
      Facility shall accrue interest at an annual rate equal to the lesser of
      (i) at Borrower’s option (A) for a Base Rate Loan, the sum of the Base
      Rate plus the Applicable Margin for Base Rate Loans, or (B) for a LIBOR
      Loan, the sum of LIBOR plus the Applicable Margin for LIBOR
      Loans, and (ii) the Maximum Rate.  Each change in the Base Rate,
      LIBOR, or the Maximum Rate is effective as of the effective date of such change
      without notice to Borrower or any other Person.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Except
      as otherwise provided in this Agreement, Loans under the Term Loan shall accrue
      interest at an annual rate equal to the lesser of (i) at
      Borrower’s option (A) for a Base Rate Loan, the sum of the Base Rate plus
      the Applicable Margin for Base Rate Loans, or (B) for a LIBOR Loan, the
sum of LIBOR plus the Applicable Margin for LIBOR Loans, and
      (ii) the Maximum Rate.  Each change in the Base Rate, LIBOR, or
      the Maximum Rate is effective as of the effective date of such change without
      notice to Borrower or any other Person. Notwithstanding anything to the contrary
      herein, the Applicable Margin for Loans under the Term Loan shall be based
      on
      Level III until Lender receives the Compliance Certificate and Current
      Financials for the period ending September 30, 2007.

    

    (c)           To
      the extent permitted by Law, while a Default exists, the Obligation shall accrue
      interest at the lesser of (i) the Default Rate and (ii) the
      Maximum Rate, until all past due amounts are paid (whether payment is made
      before or after entry of a judgment or the Default is otherwise cured or
      waived).  Subject to Section 3.7, if a
      Default exists, Lender may, in its sole discretion, to the extent permitted
      by
      Law, add accrued and unpaid interest to the Principal Debt and such amount
      will
      accrue interest until paid at the applicable interest rate.”

    

    (i)  Section
      3.6(a) of the Credit Agreement is hereby deleted in its entirety
      and replaced with Section 3.6(a) as
      follows:

     

    “(a)           When
      Borrower requests any LIBOR Loan, Borrower may elect an Interest Period of,
      at
      Borrower’s option, one, two, three or six months, subject to the following
      conditions:  (i) no Interest Period may extend beyond the Revolving
      Credit Termination Date (in respect of Loans under the Revolving Credit
      Facility) or the Term Loan Maturity Date (in respect of Loans under the Term
      Loan); and (ii) no more than 3 Interest Periods may be in effect at any time
      under the Revolving Credit Facility and no more than 3 Interest Period may
      be in
      effect at any time under the Term Loan.”

    

    (j)  Section
      5.2 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 5.2 as follows:

     

    “5.2           Conditions
      to all Credit Extensions

    .  Lender
      will not be obligated to make any Credit Extension unless on the applicable
      Loan
      Date or date of such Credit Extension (and after giving effect to the requested
      Loan, LC, or Swap Contract, as the case may be):  (a) Lender has
      timely received a Loan Request, LC Application, or Swap Contract, as the case
      may be, (b) all of the representations and warranties of the Companies in
      the Loan Documents are true and correct in all material respects (except to
      the
      extent that the representations and warranties speak to a specific date),
      (c) Lender has received and continues to maintain evidence of insurance as
      set out in Section 8.6 (including certificates
      and endorsements); (d) no Material Adverse Event exists, (e) no
      Default or Potential Default exists or will result from such Credit Extension;
      and (f) in respect of any Loan under the Term Loan, Borrower shall procure
      and
      deliver to Lender releases or waivers of mechanic’s liens, and invoices, or paid
      receipts if requesting reimbursements, of each party who has furnished materials
      or services or performed labor of any kind in connection with the construction
      of any of the Improvements and, in each case, whose aggregate invoices exceed
      $100,000; such lien waivers shall be in Proper Form.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Each
      Loan
      Request, LC Application, or Swap Contract delivered to Lender constitutes the
      representation and warranty by the Companies that the statements in clauses
      (b), (c),(d) and (e) above are true and correct in all
      material respects.”

     

    (k)  A
      new Section 5.5 of the Credit Agreement is hereby
      added to the Credit Agreement in its numerical order as follows:

     

    “5.5  Condition
      to Conversion to Mini “Perm” Loan

    .  Lender
      will have no obligation to convert the Term Loan to a “mini- perm” loan on the
      Conversion Date unless on or before the Conversion Date the following additional
      conditions shall have been satisfied, to the extent required by
      Lender:

     

    (a)           Borrower
      shall have certified to Lender that construction has been completed in a good
      and workmanlike manner, in compliance in all material respects with applicable
      requirements of all Governmental Authorities and substantially in accordance
      with the Plans and Specifications;

     

    (b)           To
      the extent required by applicable Governmental Authorities for the use and
      occupancy of the Improvements, evidence of code compliance and other applicable
      permits and releases shall have been issued to Lender in Proper Form with
      respect to the construction of the Improvements and copies thereof have been
      furnished to Lender;

     

    (c)           Lender
      shall have received an “as-built” survey in Proper Form showing the location of
      the Improvements and other matters reasonably requested by Lender;

     

    (d)           Lender
      shall have received a final affidavit from the contractor and full and complete
      releases of lien from the contractor and each subcontractor of and supplier
      to
      the contractor with respect to work performed and/on materials supplied in
      the
      construction of the Improvements, all of such documentation to be in Proper
      Form;

     

    (e)           A
      valid notice of completion shall have been recorded in the real property records
      of the county where the Subject Property is located;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f)           Lender
      shall have received a satisfactory endorsement to its Title Insurance Policy;
      and

     

    (g)           A
      certificate from Borrower to Lender that the statements in clauses (b),
      (c),(d) and (e) of Section 5.2
      above are true and correct.”

     

    (l)  Section
      6.1 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 6.1 as follows:

     

    “6.1
      Collateral.  The complete payment and performance of the
      Obligation shall be secured by all of the items and types of property
      (collectively, the “Collateral”) described as
      collateral in the Security Agreement, and “Mortgaged Property” in the Deed of
      Trust.  Each Company shall execute all applicable Security Documents
      necessary to grant in favor of Lender a Lien upon all of the Collateral it
      owns.”

    

    (m)  Section
      6.5 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 6.5 as follows:

     

    “6.5
      [Intentionally Omitted.]”

    

    (n)  Section
      7.13 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 7.13 as follows:

     

    “7.13  Purpose
      of Credit Facilities. Borrower will use the proceeds of the Term Loan as
      disclosed in writing to Lender and for no other purpose.  Borrower
      will use the proceeds of the Revolving Credit Facility for its working capital
      and general corporate purposes and to refinance certain Debt as disclosed to
      Lender.  Borrower will use the proceeds of the Term Loan for the
      Subject Expansion and no other purpose.  No part of the proceeds of
      the Term Loan or the Revolving Credit Facility will be used, directly or
      indirectly, for a purpose that violates any Law, including the provisions of
      Regulation U.”

    

    (o)  New
      Sections 7.20 through 7.22
      of the Credit Agreement are hereby added to the Credit Agreement in their
      appropriate numerical order as follows:

     

    “7.20                      Permits
      and Restrictions

    .  On
      or before the date construction commences on the Improvements for the Subject
      Expansion and thereafter, all utility, building, health, and operating permits
      (if any) required for the construction and operation of the Subject Expansion
      will have been obtained and will be in effect.  There are no deed
      restrictions which have not been effectively waived which would prohibit, limit,
      or interfere with Borrower’s use of the Subject Property or Borrower’s operation
      of the Subject Property, before and after giving effect to the Subject
      Expansion.

    

    7.21           Sufficient
      Funds

    .  Sufficient
      funds are available to Borrower in addition to proceeds of the Term Loan to
      pay
      all costs of the Subject Expansion.

    

    7.22           Other
      Liens

    .  Prior
      to the recordation of the Deed of Trust, no work of any kind (including
      destruction or removal of any existing improvements, site work, clearing,
      grading, grubbing, draining or fencing of the Subject Property) has been or
      will
      be commenced or performed on the Subject Property relative to the Subject
      Expansion or any other ongoing construction work thereon, no equipment or
      material has been or will be delivered to or placed upon the Subject Property
      for any purpose whatsoever, and no contract (or memorandum or affidavit thereof)
      for the supplying of labor, materials, or services for the design or
      construction of the Improvements relative to the Subject Expansion, or the
      surveying of the Subject Property or Improvements, nor any affidavit or notice
      of commencement of construction of the Improvements, has been or will be
      executed or recorded, which could cause a mechanic’s or materialman’s Lien or
      similar Lien to achieve priority over the Deed of Trust or the rights of Lender
      thereunder.”

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (p)  New
      Sections 8.14 through 8.19
      of the Credit Agreement are hereby added to the Credit Agreement in their
      appropriate numerical order as follows:

     

    “8.14.                      Appraisal.  From
      time to time after the Closing Date, Lender may obtain an Appraisal of the
      Subject Property at Borrower’s sole cost and expense; provided that, as
      long as no Default has occurred, Lender will not obtain at Borrower’s cost and
      expense, or request Borrower to obtain, an Appraisal more often than annually,
      unless required more frequently by any Governmental Authority.

    

    8.15           Storage
      of Materials

    .  Borrower
      shall cause all materials supplied for, or intended to be used in, the
      construction of the Improvements, but not affixed to or incorporated into the
      Improvements or the Subject Property, to be stored on the Subject Property
      or at
      such other location upon notice to Lender in writing prior to storage in such
      other location, with adequate safeguards, as commercially reasonable, to prevent
      loss, theft, damage, or commingling with other materials or
      projects.

    

    8.16           No
      Liability of Lender

    .  Lender
      shall have no liability, obligation, or responsibility whatsoever with respect
      to the construction of the Improvements except to make Loans under the Term
      Loan
      subject to the terms and provisions of this Agreement.  Lender shall
      not be obligated to inspect the Subject Property or the construction of the
      Improvements, nor be liable for the performance or default of Borrower, the
      general contractor, or any other party, or for any failure to construct,
      complete, protect, or insure the Improvements, or for the payment of costs
      of
      labor, materials, or services supplied for the construction of the Improvements,
      or for the performance of any obligation of Borrower
      whatsoever.  Nothing, including without limitation any Loan under the
      Term Loan or acceptance of any document or instrument, shall be construed as
      a
      representation or warranty, express or implied, to any party by
      Lender.

    

    8.17           No
      Conditional Sale Contracts, Etc

    .  No
      materials, equipment, or fixtures shall be supplied, purchased, or installed
      for
      the construction or operation of the Improvements pursuant to security
      agreements, conditional sale contracts, lease agreements, or other arrangements
      or understandings whereby a security interest or title is retained by any party
      or the right is reserved or accrues to any party to remove or repossess any
      materials, equipment, or fixtures intended to be used in the construction or
      operation of the Improvements, except in favor of Lender or as otherwise
      permitted pursuant to clause (c) of the definition of “Permitted Liens”
in this Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.18           Payment
      of Claims

    .  Borrower
      shall promptly pay or cause to be paid when due all costs and expenses incurred
      in connection with the Subject Property and the construction of the Improvements
      for the Subject Expansion, and Borrower shall keep the Subject Property free
      and
      clear of any Liens other than Liens approved in writing by
      Lender.  Notwithstanding anything to the contrary contained in this
      Agreement or the Loan Documents, Borrower (a) may contest the validity or amount
      of any claim of any contractor, consultant, or other person providing labor,
      materials, or services with respect to the Property, (b) may contest any tax
      or
      special assessments levied by any Governmental Authority, and (c) may contest
      the enforcement of or compliance with any Governmental Requirements, and such
      contest on the part of Borrower shall not be a Default hereunder and shall
      not
      release Lender from its obligations to make Loans under the Term Loan hereunder,
      provided that, during the pendency of any such contest, Borrower shall
      set aside adequate reserves being established in accordance with GAAP and shall
      pay any amount adjudged by a court of competent jurisdiction to be due, with
      all
      costs, interest, and penalties thereon, before such judgment becomes a lien
      on
      the Subject Property.

    

    8.19           Use
      of Loans Under Term Loan

    .  Borrower
      shall promptly disburse all Loans under the Term Loan for payment of costs
      and
      expenses incurred for the Subject Expansion, and as most recently requested
      on a
      Loan Request, and for no other purpose.”

    

    (q)  Section
      9.9 of the Credit Agreement is hereby deleted in its entirety and
      replaced  with Section 9.9 as
      follows:

     

    “9.9           Sale
      of Assets

    .  No
      Company may make any Disposition or enter into any agreement to make any
      Disposition, except (a) Dispositions of surplus, obsolete or worn out or no
      longer used assets in the ordinary course of business, (b) Dispositions of
      Inventory in the ordinary course of business, (c) the Disposition of
      delinquent accounts receivable in the ordinary course of business for purposes
      of collection, (d) Dispositions of property by any Company to another Company
      or
      to a wholly-owned Subsidiary; provided that, if the transferor of such
      property is the Borrower or a Guarantor, the transferee thereof must either
      be
      the Borrower or a Guarantor and must comply with Section
      6, (e) to the extent permitted by Section 9.6,
and (f) without duplication of clauses (a) through
(e) of this Section
      9.9, Dispositions of
      personal property assets up to $150,000 individually and up to $500,000 in
      the
      aggregate during the term of this Agreement.”

    

    (r)  Section
      10.3 of the Credit Agreement is hereby deleted and replaced with
      Section 10.3 as follows:

     

    “10.3                      “Maximum
      Unfinanced Capital Expenditures

    .  All
      Unfinanced Capital Expenditures for TOCCO may not exceed  $4,000,000
      in the aggregate in any calendar year, commencing with the calendar year ended
      December 31, 2007.”

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (s)  New
      Sections 11.13 through 11.19
of the Credit Agreement
      are hereby added to the Credit Agreement
      in their appropriate numerical order as follows:

     

    “11.13                      Foreclosure
      of Other Liens

    .  The
      holder of any Lien on the Subject Property other than a Lender Lien (without
      implying Lender’s consent to the existence, placing, creating, or permitting of
      any lien or security interest) institutes foreclosure or other proceedings
      for
      the enforcement of its remedies thereunder and those proceedings are not stayed
      within ten (10) days after notice to Borrower.

    

    11.14                      Title

    .  Borrower’s
      title to any or all of the Subject Property  shall be challenged in
      writing or endangered by any Person whatsoever and the same (a) is not dismissed
      or cured within ten (10) days and (b) is considered by Lender in its sole
      reasonable discretion to present a material threat to the
      Collateral.

    

    11.15                      Project
      Requirements

    .  Borrower
      shall knowingly default or breach any Governmental Requirements pertaining
      to
      the Subject Expansion that results in a significant or material impairment
      of
      the value of the Subject Property.

    

    11.16                      Cease
      Construction

    .  Borrower
      ceases the construction of the Improvements for the Subject Expansion for more
      than thirty (30) days (for reasons other than Force Majeure) without
      Lender’s prior written consent, which shall not be unreasonably withheld or
      delayed.

    

    11.17                      Permits

    .  Borrower
      fails to (a) keep in full force and effect any required permit or approval
      from
      any appropriate Governmental Authority with respect to the construction of
      the
      Improvements and such failure continues for thirty (30) days after Borrower
      receives notice of, or has actual knowledge of, such failure, or (b) obtain
      a
      certificate of completion by the general contractor on or before fifteen (15)
      months after the date of the initial Loan under the Term Loan.

    

    11.18                      Survey
      Matters

    .  Any
      Survey required by Lender shows any matter not existing as of the date of the
      survey delivered on or prior to the initial Loan under the Term Loan which
      is
      unsatisfactory to Lender in its reasonable credit judgment, and such matter
      is
      not removed within a period of thirty (30) days after notice thereof by Lender
      to Borrower.

    

    11.19                      Contractor
      Default

    .  The
      general contractor or any subcontractor defaults under any Construction Contract
      in a manner which Lender deems to be material, and, unless otherwise agreed
      in
      writing by Lender, Borrower fails promptly to exercise its rights and remedies
      under such Construction Contract with respect to such default.”

    

    (t)  New
      Sections 12.6 through 12.7
      are hereby added to the Credit Agreement in their appropriate numerical order
      as
      follows:

     

    “12.6
      Complete Construction

    .  Upon
      the occurrence of a Default, Lender may, but shall not be obligated to: (a)
      perform all work necessary to complete the construction and equipping of the
      Improvements for the Subject Expansion in accordance with the Governmental
      Requirements; (b) do anything necessary or desirable in Lender’s sole judgment
      to fulfill the obligation of Borrower, including the right to avail itself
      of
      and procure performance of the Construction Contract and subcontractors or
      to
      let new or additional contracts with the contractor or the same subcontractors
      or to others; and (c) employ watchmen and other safeguards to protect the
      Subject Property and the Subject Expansion.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Without
      restricting the generality of the foregoing, Borrower hereby appoints Lender
      as
      the attorney-in-fact of Borrower, with full power of substitution, and in the
      name of Borrower, if Lender elects to do so, after the occurrence of a Default
      and in respect of the Term Loan, to (a) use such sums as are necessary,
      including any proceeds of the Term Loan, to make such changes or corrections
      in
      the plans and specifications for the Subject Expansion, and employ such
      engineers, inspectors, rental agents, managers and contractors as may be
      required for the purpose of completing the construction of the Improvements
      substantially in the manner contemplated by such plans and specifications and
      Governmental Requirements, (b) execute all applications and certificates in
      the
      name of Borrower which may be required for completion of construction of the
      Improvements for the Subject Expansion, (c) endorse the name of Borrower on
      any
      checks or drafts representing proceeds of the Insurance Policies, or other
      checks or installments payable to Borrower with respect to the Subject Property,
      (d) do every act with respect to the construction of the Improvements for the
      Subject Expansion which Borrower may do, (e) prosecute or defend any action
      or
      proceeding incident to the Subject Property, (f) to do all things necessary
      in
      Lender’s sole judgment, to complete construction, finishing and equipping of the
      Improvements for the Subject Expansion and to rent, operate and manage the
      Improvements, and to pay operating costs and expenses, including any applicable
      management fees, of every kind and nature in connection therewith so that the
      same shall be operational and usable for its intended purpose, all in the name
      of Borrower, Lender or both, (g) to pay interest when due on all amounts
      disbursed hereunder (either by adding such interest to the principal balance
      of
      the Term Loan or paying the same in cash), (h) to pay, settle or compromise
      all
      existing bills and claims which may be or become liens or security interests,
      or
      to avoid such bills and claims becoming liens against the Subject Property
      or
      against fixtures or equipment, or as may be necessary or desirable for the
      completion of construction or for the equipping and operation of the
      Improvements for the Subject Expansion, and (i) to prosecute and defend all
      actions or proceedings in connection with the Subject Property or any equipment
      or fixtures. Lender shall have no obligation to undertake any of the foregoing
      actions, and if Lender should do so, it shall have no liability to Borrower
      for
      the sufficiency or adequacy of any such actions taken by Lender.  All
      cost and expenses, including all reasonable attorneys’ fees (based on standard
      rates for hours actually worked by outside counsel) in connection with the
      matters contemplated in this Section 12.6 shall
      be payable by Borrower on demand, and if not promptly paid, shall be part of
      the
      Obligation and shall be secured by all of the Loan Documents.  The
      power-of-attorney granted hereby is a power coupled with an interest and
      irrevocable by action of Borrower without the joinder of
      Lender.  Lender shall have no obligation to undertake any of the
      foregoing actions, and if Lender should do so, it shall have no liability to
      Borrower for the sufficiency or adequacy of any such actions taken by
      Lender.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12.7           Cessation
      of Loans under the Term Loan

    .  Upon
      the occurrence of a Default, the obligation of Lender to make any Loans under
      the Term Loan and all other obligations of Lender hereunder and under the Loan
      Documents shall at Lender’s option, immediately cease during any applicable cure
      period upon the failure of which Lender’s obligations to make Loans under the
      Term Loan shall, at Lender’s option, immediately terminate; provided
      that, nothing in this Section 12.7 shall be
      deemed to limit the other provisions of this Agreement setting forth the
      conditions precedent to Lender’s obligation to make any Loans under the Term
      Loan or the conditions under which Lender may refuse to make further
      disbursements or to limit Lender’s option to make further Loans under the Term
      Loan at Lender’s sole option notwithstanding the occurrence of one or more
      Defaults.”

     

    (u)  Section
      13.8 of the Credit Agreement is hereby deleted in its entirety and
      replaced with Section 13.8 as follows:

     

    “13.8                      Discharge
      Only Upon Payment in Full; Reinstatement in Certain
      Circumstances

     

    .  Each
      Company’s obligations under the Loan Documents remain in full force and effect
      until the commitment for the Revolving Credit Facility is terminated, the
      commitment for the Term Loan is terminated, and the Obligation is paid in full
      (except for provisions under the Loan Documents which by their terms expressly
      survive payment of the Obligation and termination of the Loan
      Documents).  If at any time any payment of the principal of or
      interest on any Note or any other amount payable by any Company or any other
      obligor on the Obligation under any Loan Document is rescinded or must be
      restored or returned upon the insolvency, bankruptcy or reorganization of
      Borrower or otherwise, the obligations of each Company under the Loan Documents
      with respect to that payment shall be reinstated as though the payment had
      been
      due but not made at that time.”

     

    (v)  Exhibit
      C to the Credit Agreement is hereby deleted in its entirety and
      replaced with Exhibit C attached to this
      Amendment.

     

    3.  First
      Amendment to Borrower Security Agreement.  The Borrower Security
      Agreement is hereby amended as follows:

     

    (a)  Section
      3 of the Borrower Security Agreement is hereby amended to add
      the
      following at the end of such Section 3:

     

    “Notwithstanding
      anything to the contrary herein or in any other Loan Document, the Collateral
      (as defined herein) shall not include the tolling product or other property
      as
      processed by Borrower for its customers located from time to time in Borrower’s
      tanks located on Borrower’s property as such tanks and tolling product or other
      property are more particularly described on attached Exhibit
“A” (as such Exhibit “A” may be replaced
      revised, updated, amended or otherwise modified from time to time with Secured
      Party’s consent, not to be unreasonably withheld or delayed).”

    

    (b)  Exhibit
      “A” attached to this Amendment is hereby added as
Exhibit “A” at the end of the Borrower Security
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.  Conditions.  This
      Amendment shall be effective once each of the following have been delivered
      to
      Lender in Proper Form:

     

    (a)  this
      Amendment executed by Borrower and Lender, together with Guarantors’ Consent and
      Agreement attached to this Amendment executed by such Guarantors;

     

    (b)  the
      Term
      Note  executed by Borrower;

     

    (c)  a
      Deed of
      Trust covering the Subject Property;

     

    (d)  an
      Assignment of Construction Contracts;

     

    (e)  a
      survey
      of the Subject Property;

     

    (f)  a
      final
      commitment for mortgagee’s title insurance on the foregoing Deed of Trust (with
      a mortgagee’s policy of title insurance to be delivered to Lender promptly after
      execution and delivery of this Amendment);

     

    (g)  an
      Appraisal of the Subject Property;

     

    (h)  an
      Officer’s Certificate of Borrower (with attachments thereto required by Lender);
      and

     

    (i)  such
      other documents and information as Lender may reasonably request.

     

    5.  Representations
      and Warranties.  Borrower represents and warrants to Lender that
      (a) it possesses all requisite power and authority to execute, deliver and
      comply with the terms of this Amendment, (b) this Amendment has been duly
      authorized and approved by all requisite corporate action on the part of
      Borrower, (c) no other consent of any Person (other than Lender) is required
      for
      this Amendment to be effective, (d) the execution and delivery of this Amendment
      does not violate its organizational documents, (e) the representations and
      warranties in each Loan Document to which it is a party are true and correct
      in
      all material respects on and as of the date of this Amendment as though made
      on
      the date of this Amendment after giving effect to this Amendment
      (except to the extent that such representations and warranties speak to
      a specific date), (f) it is in full compliance with all covenants and agreements
      contained in each Loan Document to which it is a party other than in
      respect of the Existing Default (before giving effect to this Amendment), and
      (g) after giving effect to this Amendment, to the best of Borrower’s knowledge
      after due inquiry and investigation, no Potential Default or Default has
      occurred and is continuing.  No investigation by Lender is required
      for Lender to rely on the representations and warranties in this
      Amendment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.  Scope
      of Amendment; Reaffirmation; Release.  All references to the
      Credit Agreement shall refer to the Credit Agreement as affected by this
      Amendment.  Except as affected by this Amendment, the Loan Documents
      are unchanged and continue in full force and effect.  However, in the
      event of any inconsistency between the terms of the Credit Agreement (as
      affected by this Amendment) and any other Loan Document, the terms of the Credit
      Agreement (as affected by this Amendment) shall control and such other document
      shall be deemed to be amended to conform to the terms of the Credit Agreement
      (as amended by this Amendment).  Borrower hereby reaffirms its
      obligations under the Loan Documents to which it is a party and agrees that
      all
      Loan Documents to which it is a party remain in full force and effect and
      continue to be legal, valid, and binding obligations enforceable in accordance
      with their terms (as the same are affected by this Amendment).

     

                  
      7.  Miscellaneous.

        

    (a)  No
      Waiver of Defaults.  This Amendment does not constitute (i) a
      waiver of, or a consent to, (A) any provision of the Credit Agreement or any
      other Loan Document not expressly referred to in this Amendment, or (B) any
      present or future violation of, or default under, any provision of the Loan
      Documents other than the Existing Default, or (ii) a waiver of Lender’s right to
      insist upon future compliance with each term, covenant, condition and provision
      of the Loan Documents.

     

    (b)  Headings.  The
      headings and captions used in this Amendment are for convenience only and will
      not be deemed to limit, amplify or modify the terms of this Amendment, the
      Credit Agreement, or the other Loan Documents.

     

    (c)  Costs,
      Expenses and Attorneys’ Fees.  Borrower agrees to pay or reimburse
      Lender on demand for all its reasonable out-of-pocket costs and expenses
      incurred in connection with the preparation, negotiation, and execution of
      this
      Amendment, including, without limitation, the reasonable fees and disbursements
      of Lender’s counsel.

     

    (d)  Successors
      and Assigns.  This Amendment shall be binding upon and inure to
      the benefit of each of the undersigned and their respective successors and
      permitted assigns.

     

    (e)  Multiple
      Counterparts.  This Amendment may be executed in any number of
      counterparts with the same effect as if all signatories had signed the same
      document.  All counterparts must be construed together to constitute
      one and the same instrument.  This Amendment may be transmitted and
      signed by facsimile.  The effectiveness of any such documents and
      signatures shall, subject to applicable law, have the same force and effect
      as
      manually signed originals and shall be binding on Borrower and
      Lender.

     

    (f)  Governing
      Law.  This Amendment and the other Loan Documents must be
      construed, and their performance enforced, under Texas law.

     

    (g)  Arbitration.  Upon
      the demand of any party to this Amendment, any dispute shall be resolved by
      binding arbitration as provided for in Section 13.9 of
      the Credit Agreement.

     

    (h)  Entirety.  THE
      LOAN DOCUMENTS (AS AMENDED HEREBY) REPRESENT THE FINAL AGREEMENT BETWEEN
      BORROWER AND LENDER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
      CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY THE PARTIES.  THERE
      ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

     

    

    [Signatures
      appear on the following page.]

    
       

      
         

        
          

        

      

      
         

      

    

    This
      Amendment is executed as of the
      date set out in the preamble to this Amendment.

    

    BORROWER

     

     

    SOUTH
      HAMPTON RESOURCES, INC.

     

    By:
      /s/ N
      Carter                                                                      

    Name:Nick
      Carter

    Title:  President                                                      

     

    LENDER

     

    BANK
      OF AMERICA, N.A.

     

    By:
      /s/ Adam
      Rose                                                                      

    Name:
      Adam C.
      Rose                                                                      

    Title:
      Vice
      President                                                                      

    

    
      
              

                  Signature
            Page to Waiver and Second Amendment to Credit Agreement      
      

                  and
            First
            Amendment to Borrower Security Agreement      
    

         

      

      
         

        
          

        

      

      
         

      

    

    GUARANTORS’
      CONSENT AND AGREEMENT TO

    WAIVER
      AND SECOND AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO BORROWER
      SECURITY AGREEMENT

    

    

    As
      an
      inducement to Lender to execute, and in consideration of Lender’s execution of,
      the Waiver and Second Amendment to Credit Agreement and First Amendment to
      Borrower Security Agreement (the “Amendment”), the
      undersigned hereby consent to the Amendment (including without limitation,
      the
      provision by Lender of the Term Loan to Borrower) and agree that the Amendment
      shall in no way release, diminish, impair, reduce or otherwise adversely affect
      the obligations and liabilities of the undersigned under the Guaranty executed
      by the undersigned in connection with the Credit Agreement, or under any Loan
      Documents, agreements, documents or instruments executed by the undersigned
      to
      create liens, security interests or charges to secure any of the Obligations
      (as
      defined in the Credit Agreement), all of which are in full force and effect.
      The
      undersigned hereby agree that the obligations and indebtedness guaranteed by
      the
      undersigned under the Guaranty, include without limitation, the obligations
      and
      indebtedness under the Term Loan. The undersigned further represent and warrant
      to Lender that (a) the representations and warranties in each Loan Document
      to
      which it is a party are true and correct in all material respects on and as
      of
      the date of this Amendment as though made on the date of this Amendment (except
      to the extent that such representations and warranties speak to a specific
      date), (b) they are in full compliance with all covenants and agreements
      contained in each Loan Document to which they are a party, and (c) no Default
      or
      Potential Default has occurred and is continuing.  Guarantors hereby
      release Lender from any liability for actions or omissions in connection with
      the Loan Documents prior to the date of this Amendment.  This
      Guarantors’ Consent and Agreement shall be binding upon the undersigned and
      their respective successors and assigns, and shall inure to the benefit of
      Lender and its successors and assigns.

     

    

     

          GUARANTOR:

     

    GULF
      STATE PIPE LINE
      COMPANY, INC.

    

    

    By:
/s/
      N
      Carter                                                                    

    Name:  Nick
      Carter                                                                    

     Title:  President                                                                      

    

    TEXAS
      OIL & CHEMICAL CO.
      II, INC.

    

    

    By:
      /s/ N
      Carter                                                                    

    Name:
Nick
      Carter                                                                    

    Title:
      President                                                                    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      C (TO CREDIT AGREMENT)

    

    LOAN
      REQUEST

    

    ______________,
      20___

     

    Bank
      of
      America, N.A.

     

    700
      Louisiana, 7th
      Floor

     

    Houston,
      Texas 77002

     

    Attn:  Adam
      C. Rose

     

    Reference
      is made to the Credit Agreement dated as of May 25, 2006 (as amended,
      supplemented or restated from time to time, the “Credit
      Agreement”), between the undersigned and Bank of America, N.A., a
      national banking association
      (“Lender”).  Capitalized terms used but not
      defined in this Loan Request shall have the meanings given such terms in the
      Credit Agreement.  The undersigned hereby gives you notice pursuant to
Section 2.3 of the Credit Agreement that it
      requests a Loan under the Credit Agreement on the following terms:

     

    (A)           Loan
      Date (a Business
      Day)                                                                

     

    (B)           [Revolving
      Loan][Term
      Loan]                                                                

     

    (C)           Principal
      Amount of Loan*                                                                

     

    (D)           Type
      of Loan**                                                                

     

    (E)           For
      LIBOR Loans, Interest Period

     

    and
      the last day thereof***                                                                

     

    Borrower
      hereby certifies that the following statements are true and correct on the
      date
      this Loan Request, and will be true and correct on the Loan Date specified
      above
      after giving effect to such Loan:  (a) all of the representations and
      warranties in the Loan Documents are true and correct in all material respects
      (except to the extent that they speak to a specific date); (b) no Material
      Adverse Event has occurred; and (c) no Default or Potential Default
      exists.

     

    VERY
      TRULY YOURS,

    

    BORROWER:

    

    SOUTH
      HAMPTON RESOURCES,
      INC.

    

    

    BY:                                                                    

    NAME:                                                                    

    TITLE:                                                                    

    

    

      

    

     

      
        	
                   *

              	
                Not
                  less than $100,000 or a greater integral multiple of $10,000 (if
                  a Base
                  Rate Loan); not less than $100,000 or a greater integral multiple
                  of
                  $10,000 (if a LIBOR Loan)

              

      

    

     

        **      LIBOR
        Loan or Base Rate Loan

    

     

      
        	
                 ***

              	
                LIBOR
                  Loan — 1, 2, 3 or 6 months.  In no event may the Interest Period
                  end after the Revolving Credit Termination Date in respect of the
                  Revolving Credit Facility or the Term Loan Maturity Date in respect
                  of the
                  Term Loan.

              

      

      ****           Must
        be a Responsible Officer

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