Document:

Lease Agreement

  EXHIBIT 10.1
 LEASE
AGREEMENT
 This LEASE is made and entered into as of this 1st day of January, 2003, by and between BOMBAY HOLDINGS, INC., a Florida corporation (hereinafter referred to as
“LANDLORD”) and BANKRATE, INC., a Florida corporation (hereinafter referred to as “TENANT”).
 WITNESSETH:
 LANDLORD does lease unto TENANT, and TENANT does hereby hire and take as lessee under LANDLORD four spaces consisting of a total of 14,261 square feet, designated as follows:
 Suite 101   3,440 square feet
Suite 104   3,357 square feet
Suite 200   3,987 square
feet
Suite 205   3,477 square feet
 (Hereinafter referred to as the “Demised Premises”), as shown outlined on Exhibit “A”
attached hereto, of that certain building and other improvements (“Building”) located in Palm Beach County, Florida at 11811 U.S. Highway One, North Palm Beach, Florida.
 1. TERM:
 The term of this Lease shall be for one (1) year commencing on January 1, 2003, and will terminate on December 31, 2003.
 2. RENT:
 A. TENANT agrees to pay to LANDLORD, without demand, setoff or deduction, base annual rent (“Rent”) in the amount of fourteen
dollars and 00/100 ($14.00) per square foot of space in the Demised Premises, payable in equal monthly installments. TENANT will pay its proportionate share of real estate taxes and common
area maintenance (CAM) charges. TENANT agrees to pay applicable Florida State sales tax.
 B. Each monthly installment of Rent shall be payable in advance on the first (1st) day of
each calendar month of the term to LANDLORD (except for the first month’s rent which is due and payable upon execution of this lease) at such place as LANDLORD may from time to time designate in writing. TENANT shall have a grace period of five
(5) days. In the event that any payment is not paid by TENANT within five (5) days of the due date, then, at LANDLORD’S option, a late charge of eighteen (18%) per cent per annum of such payment or the highest rate permitted by law for such
period shall become immediately due and payable to LANDLORD.
 3. USE:
 TENANT, its successors and assigns,
shall use the Demised Premises for administration offices and for no other purpose without the written consent of LANDLORD, which consent may not be unreasonably withheld as long as the use sought is in compliance with the existing zoning. TENANT
shall comply with all laws, ordinances, rules and regulations of applicable governmental authorities respecting the use, operation and activities of the Demised Premises, and TENANT shall not make, suffer or permit any unlawful, improper or
offensive use of the Demised Premises or Building, or any part thereof or permit any nuisance thereon. TENANT shall not make any use of the Demised Premises which would make void or voidable any policy of fire or extended coverage insurance covering
the Demised Premises. TENANT shall use the Demised Premises only for the purposes stated in this Lease and shall not leave said Demised Premises abandoned or suffer or permit any waste or mistreatment thereof.
 4. OPERATING EXPENSE:
 TENANT shall pay to LANDLORD as “Additional Rent” an amount representing TENANT’S
proportionate share of LANDLORD’S “Expenses” (as hereinafter defined) associated with operating the Building in accordance with the terms and conditions of this Lease.
 A. For purposes of this Lease, the following definitions shall apply:
 1. The term “Percentage” shall mean 76.61%. The Percentage has been
computed on the basis of a fraction, the numerator of which is the agreed upon square foot area of the Demised Premises and the denominator of which is the agreed upon total square foot area of the Building which is eighteen thousand six hundred and
fifteen (18,615) square feet.
 2. The term “Expenses” shall mean the sum of “Taxes,” “Insurance” and “Operating
Expenses” (as hereinafter defined):
 (a) The term “Taxes” shall mean the total of all real estate taxes and special or other assessments levied,
assessed or imposed at any
 

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  time by any governmental authority upon or against the Building.
 (b) The term “Insurance” shall mean the total of all costs and expenses incurred, borne, or accrued by LANDLORD with respect to the Building for insurance for fire, extended coverage, sprinkler apparatus, public liability, property
damage including windstorm and hailstorm, rental, plate glass, and any other insurance required by mortgagee with respect to the Building.
 (c) The term
“Operating Expenses” shall mean the total of the costs and expenses incurred, borne or accrued by LANDLORD with respect to the ownership, operation, maintenance and use of the Building other than Taxes and Insurance, which, in, accordance
with sound accounting and management principles generally accepted with respect to the operation of first class office space, would be construed as an operating expense. Such expenses shall not include anything connected with the structure or roof
of the Building or for which LANDLORD has a right of reimbursement from others or those occasioned by the act, omission or violation of law by LANDLORD, its agents or employees.
 B. Commencing on the Lease Commencement Date TENANT shall pay to LANDLORD, as additional rent, an amount equal to the product of the Percentage times the Expenses applicable to the portion of the Term of the Lease specified in a statement
from LANDLORD with respect thereto.
 C. (1) LANDLORD shall render to TENANT a statement containing a computation of additional rent due under this Lease (“Landlord’s
Statement”) at any time and from time to time as such becomes due. Within ten (10) days after the rendition of the Landlord’s Statement which shows additional rent to be due and payable, TENANT shall pay to LANDLORD the amount of such
additional rent. On the first day of each month following rendition of each Landlord’s Projected Annual Statement, TENANT shall pay to LANDLORD, on account of the potential additional rent, a sum equal to one-twelfth (1/12) of the annualized additional rent, which sum shall be subject to adjustment at any time to reflect any increase or decrease in Expenses.
 (2) The obligations of LANDLORD and TENANT under the provisions of this Lease shall survive the expiration or any early termination of the Term.
 5.
CONSUMER PRICE INDEX:
 “Consumer Price Index” means the Consumer Price Index - All Urban Consumers - Miami/Fort Lauderdale, Florida (all items) of the U.S. Bureau of
Labor Statistics. If the manner in which the Consumer Price Index is determined by the Bureau of Labor Statistics shall be substantially revised, an adjustment shall be made in such revised index which would produce results, equivalent, as nearly as
possible, to those which would have been obtained if the Consumer Price Index had not been so revised. If the Consumer Price Index shall become unavailable to the public because publication is discontinued, or otherwise, LANDLORD will substitute
therefore a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or, if no such index shall be available, then a comparable index published by a major bank or
other major financial institution or by a major university. The CPI applies to Base Rent only.
 Operating Expense is on an actual basis.
 6. QUIET ENJOYMENT:
 LANDLORD covenants that so long as TENANT pays the rent reserved in this Lease and performs its agreements hereunder, TENANT
shall have the right to quietly enjoy and use the Demised Premises for the term hereof, subject only to the provisions of this Lease.
 7. ASSIGNMENT AND SUBLETTING:
 TENANT, for itself, its successors and assigns expressly covenants that it shall not assign, mortgage or encumber this Lease, nor sublet the Demised Premises or any part thereof, or license or
permit the Demised Premises or any part thereof to be used by others, without the prior written consent of the LANDLORD, which shall not be unreasonably withheld.
 8.
DEFAULT:
 A. The occurrence of any one or more of the following events shall constitute a default hereunder by TENANT (an “Event of Default”):
 1. If Base Rent or Additional Rent is not paid within five (5) days after it is due and payable;
 2. If TENANT shall have failed to cure a default in the performance of any of the other terms, covenants or provisions of this Lease (except payment of rent) or any rule or regulation hereinafter set forth within fifteen(15) days after
written notice thereof, or if such default is of a nature that it cannot be completely remedied within said fifteen (15) day period, and TENANT shall not commence within said fifteen (15) days and shall not thereafter diligently procure to
completion all steps necessary to remedy such default;
 3. If a petition in bankruptcy shall be filed by or against TENANT or if TENANT shall make a general
assignment for the benefit of creditors, or receive the benefit of any insolvency or reorganization act;
 

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  4. If a receiver or trustee is appointed for any portion of TENANT’S property and such appointment is not vacated within sixty (60)
days;
 5. If an execution or attachment shall be issued under which the Demised Premises shall be taken or occupied or attempted to be taken or occupied by
anyone other than TENANT;
 6. If the Demised Premises become and remain vacant, deserted or abandoned for a period of thirty (30) consecutive days;

7. If the Demised Premises are used for some purpose other than the use specifically authorized herein.
 B. If TENANT shall default in performing any covenant or condition of this Lease, LANDLORD may perform the same for the account of TENANT, and TENANT shall reimburse LANDLORD for any expense incurred therefor as additional rent.
 9. REMEDIES:
 Upon the occurrence of an Event of Default:
 1. LANDLORD may re-enter the Demised Premises by summary proceedings or otherwise and re-let the Demised Premises, or any part thereof, as TENANT’S agent, in the name of LANDLORD or otherwise for a term shorter or
longer than the balance of the term of this Lease, and may grant concessions of free rent, make improvements to the Demised Premises, and may grant any other concessions in connection therewith as are necessary to re-let the Demised Premises. In
computing the net amount of rents collected through such re-letting, LANDLORD may deduct all reasonable expenses incurred in obtaining repossession or re-letting the Demised Premises, including rent concessions, attorney’s fees, brokerage fees,
the cost of restoring or improving the Demised Premises, and the cost of all alterations and decorations deemed necessary by LANDLORD to effect re-letting. In no event shall TENANT be entitled to a credit or repayment for re-rental income which
exceeds the sums payable by TENANT hereunder.
 2. LANDLORD may give TENANT fifteen (15) days notice of termination of this Lease. Upon the expiration of the
fifteen (15) day notice period, this Lease and any rights of renewal or extension thereof shall come to an end and shall terminate as if that were the date originally fixed for the expiration of the term of this LEASE, but TENANT shall remain liable
as hereinafter provided.
 3. LANDLORD may accelerate and claim and demand, as liquidated and agreed upon damages, immediate payment of a sum equal to the
amount by which the Base Rent and all forms of additional rent (as reasonably estimated by LANDLORD), due for the remainder of the term of this Lease and any extensions thereof which may have been exercised by TENANT, exceeds the then fair and
reasonable rental value of the Demised Premises for the same period, both discounted to present worth at the rate of twelve (12%) percent per annum. If, before presentation of proof of such liquidated damages to any court, commission or tribunal,
the Demised Premises or any part thereof shall have been re-let by LANDLORD for the period which otherwise would have constituted the unexpired portion of the term or any part thereof, the amount of rent reserved upon such re-letting shall be
deemed, prima facie, to be the fair and reasonable rental value for the part or the whole of the Demised Premises so re-let during the term of the re-letting.
 4. LANDLORD may pursue any other remedy available to it at law or in equity.
 10. LIENS:
 A. TENANT
herein shall not have any authority to create any liens for labor or material on LANDLORD’S interest in the land, building or Demised Premises. All materialmen, contractors, mechanics, and laborers, and all persons contracting with TENANT, are
hereby charged with notice that they must look only to TENANT and TENANT’S interests in the Demised Premises to secure any payment. At LANDLORD’S request, TENANT agrees to obtain and deliver to LANDLORD written and unconditional waivers
and releases of any such liens.
 B. TENANT agrees that TENANT will pay all charges of contractors, subcontractors, mechanics, laborers, materialmen and other items of like
character incurred by TENANT with respect to the Demised Premises, and will indemnify, defend and hold LANDLORD harmless from and against any and all expenses, costs and charges, including bond premiums for release of liens and reasonable
attorney’s fees incurred in connection with the defense of any suit in discharging the said Demised Premises or any part thereof from any liens, judgments or encumbrances caused or suffered by TENANT. In the event any such lien shall be made or
filed, TENANT shall bond against or discharge the same within ten (10) days after the same has been made or filed. It is understood and agreed between the parties hereto that the expenses, costs and charges referred to above shall be considered as
additional rent and shall be included in any lien for rent.
 11. CHANGE IN OWNERSHIP OF TENANT:
 A.
Corporation or Partnership; LANDLORD’S Right to Terminate. If TENANT is a corporation or partnership and if the ownership thereof shall materially change at any time during the term of this lease from the present composition of same as it may
exist at any time, or if a
 

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  substantial portion of the assets of TENANT shall be sold, assigned or transferred with or without a specific assignment of this lease; or, if TENANT shall
merge or consolidate with any other firm or corporation, LANDLORD may, at its option, by giving thirty (30) days prior written notice to TENANT, declare such change a breach of this Lease subject to the remedies provided for breach in Paragraph 9
hereof.
 1. Corporation ownership shall be deemed to have materially changed if the number of its voting shares of any class or series, constituting one third
(33.3%) of the number thereof outstanding from time to time shall be transferred by either the owners thereof or by the corporation, and such transfer of shares shall not first be approved in advance in writing by LANDLORD, such approval not to be
unreasonably withheld. Notwithstanding the foregoing, said approval shall not be required if all of the following conditions are met:
 A. TENANT shall become
or remain liable as a guarantor of the assignee’s obligation under the Lease, as assigned, and,
 B. The proposed assignees shall be of such character and
financial standing and responsibility at the time of the assignment so as to give reasonable assurance to LANDLORD of the payment of all rents and other assignments issued hereunder and compliance with all of the terms and conditions of the
Lease.
 2. Partnership ownership shall be deemed to have materially changed if partners holding one third or more of the partnership interests have changed at
any time during the term of this Lease, or one or more general partners of a limited partnership have changed at any time during the term hereof and such change has not been approved in advance in writing by LANDLORD.
 B. Proprietorship; LANDLORD’S Right to Terminate. If TENANT is a sole proprietorship, LANDLORD shall have the option, without prejudice to the remedies available to it hereunder or otherwise, to
terminate this Lease in the event of TENANT’S incapacity, death or cessation of day-to-day management upon sixty (60) days prior written notice to TENANT or his legal representative.
 C. Notice to LANDLORD. TENANT shall immediately give written notice to LANDLORD of any change in ownership contemplated by this Paragraph 11.
 12.
INSURANCE:
 A. TENANT agrees to maintain, at TENANT’S sole cost and expense, comprehensive general liability insurance in standard form in favor of LANDLORD and TENANT
against claims for bodily injury or death or property damage occurring in or upon the Demised Premises, effective as of the date TENANT enters into possession of the Demised Premises and throughout the term of this lease. Such occurrences shall be
in the amount of not less than one million dollars ($1,000,000) for injury to one person in one accident, occurrence or casualty, and not less than two million dollars ($2,000,000) for injuries to more than one person in one accident, occurrence or
casualty. TENANT shall also carry property damage insurance in an amount of not less than fifty thousand dollars ($50,000) for damage to property in any one occurrence. Any insurance policies required hereunder shall name LANDLORD as an additional
insured and shall provide that they may not be modified or terminated without thirty (30) days advance notice to LANDLORD. At or prior to possession, TENANT shall furnish to LANDLORD evidence of such insurance coverage by way of either a copy of the
actual insurance policy and any amendments and endorsements thereto or a certificate of insurance clearly evidencing each of the coverages and provisions set forth in this section. Upon TENANT’S default in obtaining or delivering the policy or
certificate for any such insurance or TENANT’S failure to pay the charges therefore, LANDLORD may, but shall not be obligated, to procure or pay the charges for any such policies and charge the TENANT therefore as additional rent.
 B. TENANT shall not do anything, or permit anything to be done, in or about the Demised Premises which shall:
 1. Invalidate or be in conflict with the provisions of any fire or other insurance policies covering the building or any property located therein.
 2. Result in a refusal by fire insurance companies of good standing to insure the building or any such property in amounts reasonably satisfactory to LANDLORD.
 3. Subject LANDLORD to any liability or responsibility for injury to any person or property by reason of any business operation being conducted in the Demised Premises.
 4. Cause any increase in the fire insurance Rates applicable to the building or property located therein at the beginning of the Lease term or at any time hereafter. TENANT, at
TENANT’S expense, shall comply with all rules, regulations or requirements of the applicable Board of Fire Underwriters, and the fire insurance rating organizations and any similar bodies. TENANT shall pay all costs, expenses, fines, penalties
or damages, which may be imposed upon LANDLORD by reason of TENANT’S failure to comply with the provisions of section B of clause 12 of this Lease and if, by reason of such failure, the fire insurance shall at the beginning of this Lease or at
any time thereafter be higher than it otherwise would be, then TENANT shall reimburse LANDLORD, as additional rent hereunder, for that portion of all fire insurance premiums thereafter paid by LANDLORD which shall have been charged because of such
failure by TENANT.
 13. SUBROGATION:
 LANDLORD and TENANT and their successors or
assigns hereby waive any and all rights of action for negligence against the other party
 

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  hereto which may hereafter arise for damage to the Demised Premises or to property therein resulting from any fire or other casualty of the kind covered by
standard fire insurance policies with extended coverage, regardless of whether or not, or in what amounts, such insurance is now or hereafter carried by the parties hereto, or either of them. The foregoing release and waiver shall be in force only
if both releasors’ insurance policies contain a clause providing that such a release or waiver shall not invalidate the insurance and also provided that such a policy can be obtained without additional premiums.
 14. COMPLIANCE:
 A. TENANT shall, at its expense, comply with all Rules and Regulations which may be adopted from time to time
and with all laws, orders and regulations of any governmental authority having or asserting jurisdiction in connection with the Demised Premises or the use or occupancy thereof.
 B. TENANT shall at no time use or occupy the Demised Premises in violation of the certificate of occupancy issued for the Building or Demised Premises. TENANT shall comply with all applicable building, zoning and land use codes and ordinances
throughout the term of this Lease.
 15. LANDLORD’S REPAIRS AND ALTERATIONS:
 LANDLORD shall be
responsible for all structural repairs to the Demised Premises and all repairs and maintenance for all public areas and facilities, except such repairs (whether structural or otherwise) and maintenance as may be necessitated by the negligence,
improper care or use of the Demised Premises and public areas by TENANT, its agents, employees, licensees or invitees, which shall be made by TENANT, at TENANT’S expense, and except to the extent such repairs may be recovered by any insurance
which TENANT is required to maintain hereunder.
 16. TENANT’S REPAIRS AND ALTERATIONS:
 A. TENANT shall
take good care of the Demised Premises and, subject to the provisions of clause 15 hereof, shall make as and when needed all repairs in and about the Demised Premises necessary to preserve them in good order and condition, which repairs shall be in
quality and class equal to the original work. Except in the event of condemnation, there shall be no allowance to Tenant for a diminution of rental value and no liability on the part of LANDLORD by reason of inconvenience, annoyance or injury to
business arising from LANDLORD, TENANT or others making any repairs, alterations, additions or improvements in or to any portion of the building or the Demised Premises, or in or to the fixtures, appurtenances or equipment thereof, and no liability
upon LANDLORD for failure of LANDLORD or others to make any repairs, alterations, additions or improvements in or to any portion of the Building or of the Demised Premises, or in or to the fixtures, appurtenances or equipment thereof. Any repairs
which Tenant may be required to carry out pursuant to the terms hereof may, at LANDLORD’S option, be made by LANDLORD at the expense of TENANT, and the expenses thereof incurred by LANDLORD shall be collectible as additional rent after the
rendition of a bill or statement therefore.
 B. TENANT shall make no alterations or improvements to the Demised Premises without LANDLORD’S prior written consent, which shall
not be unreasonably withheld. All installations or work done by or on behalf of TENANT shall be done in a good and workmanlike manner and shall at all times comply with all laws, rules, orders and regulations of all governmental authorities having
or asserting jurisdiction in all connection therewith; and with the rules and regulations of LANDLORD. TENANT shall obtain, at its expense all necessary governmental approvals and permits.
 17. FIXTURES AND INSTALLATIONS:
 All appurtenances, fixtures, improvements, additions and other property attached to or built into the Demised
Premises, whether by LANDLORD or TENANT or others, and whether at LANDLORD’S expense, or TENANT’S expense, or the joint expense of LANDLORD and TENANT, shall become and remain the property of LANDLORD, and shall remain upon and be
surrendered with the Demised Premises, unless LANDLORD, by notice to TENANT no later than thirty (30) days prior to the date fixed as the termination of this lease, elects to have them removed by TENANT, in which event the same shall be removed by
TENANT at TENANT’S expense. Nothing in this clause shall be construed to prevent TENANT’S removal of trade fixtures but, upon removal of any such trade fixtures from the Demised Premises or upon the removal of other installations as may be
required by LANDLORD, TENANT shall immediately, at its expense, repair and restore the Demised Premises to the condition existing prior to installation and shall repair any damage to the Demised Premises or the Building due to such removal. All
property permitted or required to be removed by TENANT at the end of the term, which remains in the Demised Premises after TENANT’S removal, shall be deemed abandoned and may, at the election of LANDLORD, either be retained as LANDLORD’S
property or may be removed from the Demised Premises at TENANT’S expense.
 18. CONDITION OF PREMISES:
 TENANT’S taking possession of the Demised Premises shall be conclusive evidence as against TENANT that the Demised Premises were in good order and satisfactory condition when the TENANT took possession. At the termination of this Lease,
the TENANT shall return the Demised Premises broom-clean and in as good condition as when the TENANT took possession, ordinary wear and tear or loss by fire or other
 

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  casualty excepted, failing which the LANDLORD may restore the Demised Premises to such condition and the TENANT shall pay the cost thereof on demand. The air
conditioning, heating, electrical and plumbing systems should be in good working order prior to TENANT taking possession.
 19. SECURITY DEPOSIT:
 TENANT has deposited with LANDLORD the sum of $ -0- as security for the full and faithful performance of every provision of this Lease to be performed by TENANT. If TENANT defaults with respect to any
provision of this Lease, including but not limited to the provisions relating to the payment of Rent, LANDLORD may use, apply or retain all or any part of this security deposit for the payment of any Rent or other sum in default or for the payment
of any other amount which LANDLORD may spend or become obligated to spend by reason of TENANT’S default, or to compensate LANDLORD for any other loss, cost or damage which LANDLORD may suffer by reason of TENANT’S default. If any portion
of said deposit is so used or applied, TENANT shall, within five (5) days after written demand therefore, deposit cash with LANDLORD in an amount sufficient to restore the security deposit to its original amount and TENANT’S failure to do so
shall constitute a breach of this Lease. LANDLORD shall not, unless required by law, be required to pay interest on the security deposit to the TENANT. If TENANT shall fully and faithfully perform every provision of this Lease, the security deposit
or any balance thereof shall be returned to TENANT (or at LANDLORD’S option, to the last transferee of TENANT’S interest hereunder) within fifteen (15) days after the expiration of the Lease term, provided TENANT has vacated the premises.
In the event the building is sold, the security deposit will be transferred to the new owner.
 20. SIGNAGE:
 TENANT is allowed to display the name of its business on the front door of its Demised Premises; the front door is defined as being on the east side of the building. The location and type of signs shall be mutually agreed upon by TENANT and
LANDLORD. The TENANT shall not display, inscribe, print, paint, maintain or affix on any place about the building any sign, notice, legend, direction, figure or advertisement, except on the front door of the Demised Premises and on the directory
board, and then only such name(s) and matter, and in such color, size, style, place and materials as shall first have been approved by LANDLORD. The listing of any name other than that of TENANT, whether on the front door of the Demised Premises or
on the directory board, shall not vest any interest in the Lease or in the Demised Premises, it being expressly understood that any such listing is a privilege extended by LANDLORD revocable at will by written notice to TENANT.
 21. HOLDING OVER:
 If the TENANT retains possession of the premises or any part thereof after the termination date of this Lease,
the TENANT shall pay to the LANDLORD rent at double the monthly rate payable by the TENANT with respect to the last full calendar month prior to the termination date of this Lease for the time the TENANT remains in possession and, in addition
thereto, shall pay the LANDLORD for all damages, consequential as well as direct, sustained by reason of the TENANT’S retention of possession.
 22. CERTIFICATES:

A. TENANT will, within 10 (ten) days of written request from LANDLORD, certify in writing to LANDLORD’S designee (i) whether or not the lease has been modified or amended; (ii) the
date to which rent has been paid; and (iii) whether TENANT has any knowledge of LANDLORD’S default hereunder.
 B. LANDLORD will, within 10 (ten) days of written request from
TENANT, certify in writing to TENANT’S designee (i) whether or not the Lease has been modified or amended; (ii) the date to which rent has been paid; and (iii) whether LANDLORD has any knowledge of TENANT’S default hereunder.
 23. CONDEMNATION:
 LANDLORD reserves unto itself, and TENANT assigns to LANDLORD, all right to damages accruing on
account of any taking or condemnation of any part of the building, or by reason of any act of any public or quasi-public authority for which damages are payable. TENANT agrees to execute such instruments or assignments as may be required by
LANDLORD, to join with LANDLORD in any petition for the recovery of damages if requested by LANDLORD, and LANDLORD agrees to turn over to TENANT its proportionate share of any such damages that may be recovered in any such proceeding. LANDLORD does
not reserve for itself, and TENANT does not assign to LANDLORD, any damages payable for trade fixtures installed by TENANT at its cost and expense and which are not part of the realty, or any moving expense, relocation expense, or loss of business
claim.
 24. SUBORDINATION OF LEASE:
 This Lease is and shall be subject and subordinate to any and all
mortgages or deeds of trust now existing upon or that may be hereafter placed upon the Demised Premises or the property and to all advances made or to be made thereon, and all renewals, modifications, consolidations, replacements or extensions
thereof and the lien of such mortgages, deed of trust and land leases shall be superior to all rights hereby and hereunder vested in TENANT, to the full extent of all sums secured hereby. This provision shall be self-operative and no further
instrument of subordination shall be necessary to effectuate such subordination and the recording of any such mortgage or deed of trust shall have preference
 

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  and precedence and be superior and prior in lien to this Lease, irrespective of the date of recording. In confirmation of such subordination, TENANT shall on
request of LANDLORD or the holder of any such mortgage or deed of trust execute and deliver to LANDLORD within ten (10) days any instrument that LANDLORD or such holder may reasonably request. Should any prospective mortgagee or ground lessor
require a modification of this Lease, which modification will not cause an increased cost or expense to TENANT or in any other way materially change the rights and obligations of TENANT hereunder in the reasonable judgment of TENANT, then and in
such event, TENANT agrees that this Lease may be so modified and agrees to promptly execute whatever documents are required therefore. Should any prospective mortgagee or ground lessor require execution of a short form of lease for recording
(containing the names of the parties, a description of the Demised Premises, and the term of this Lease) or a certification from the TENANT concerning the Lease in such form as may be required by a prospective mortgagee or ground lessor, TENANT
agrees to promptly execute such short form of lease or certificate and deliver same to LANDLORD within ten (10) days following the request therefore.
 25. NOTICES:
 All notices required or contemplated by this Lease shall be in writing and shall be delivered in person or by special courier or by United States Certified Mail, Return Receipt Requested,
addressed to the party to whom such notice is directed at the address as shown in this lease or such other address as either LANDLORD or TENANT may designate as its new address for notice purposes. Any such notice shall be deemed to have been
rendered or given on the date when it shall have been mailed as provided in this clause.
 26. APPLICABLE LAW:
 This lease is entered into in the State of Florida and shall be governed by the applicable law of such State.
 27. ENTIRE AGREEMENT:
 This Lease contains the entire agreement between the parties. No oral or written statement or representation shall be binding upon either party unless expressly set forth in this Lease. This Lease may
not be modified unless such agreement is set forth in writing by LANDLORD and TENANT. IN WITNESS WHEREOF, LANDLORD and TENANT have duly executed this agreement as of the day and year first above written.
  

	 LANDLORD:
 BOMBAY HOLDINGS, INC.
 	  
 	  
 	  
 
	 
 /s/ JEAN UTLEY
 	  
 	  
 	 
 
 
 
	 
 	  
 	  
 	  
 
	 Jean Utley, Secretary
 	  
 	  
 	  
 

  

	 TENANT:
 BANKRATE, INC.
 	  
 	  
 	  
 
	 
 /s/ ROBERT J. DEFRANCO
 	  
 	  
 	 
 
 
 
	 
 	  
 	  
 	  
 
	 Robert J. DeFranco
 Senior Vice President
 Chief Financial
Officer
 	  
 	  
 	  
 

 
 63Severance Protection Agreement (Edwin W. Hortman, Jr.)

  Exhibit 10.14
 SEVERANCE PROTECTION
AND NON-COMPETITION AGREEMENT
 THIS SEVERANCE PROTECTION AND NON-COMPETITION AGREEMENT (the “Agreement”) made as
of April 13, 1998, by and between ABC BANCORP (the “Company”), a Georgia corporation, and EDWIN W. HORTMAN, JR. (the “Executive”), an
individual resident of the State of Georgia.
 WHEREAS, the Board of Directors of the Company (the “Board”) has determined
that it is essential and in the best interest of the Company and its shareholders to retain the services of the Executive in the event of a threat or occurrence of a Change in Control (as hereinafter defined) and to ensure his continued dedication
and efforts in such event without undue concern for his personal financial and employment security; 
 WHEREAS, in order to induce
the Executive to remain in the employ of the Company in the event of a threat or the occurrence of a Change in Control, the Company desires to enter into this Agreement with the Executive to provide the Executive with certain benefits in the event
his employment is terminated as a result of, or in connection with, a Change in Control and to provide the Executive with certain other benefits whether or not the Executive’s employment is terminated; and
 WHEREAS, in consideration for the benefits provided to the Executive hereunder and as an inducement to the Company providing such benefits, the Executive
agrees that it is reasonable and fair to enter into certain restrictive covenants as hereinafter set forth.
 NOW, THEREFORE, in
consideration of the respective agreements of the parties contained herein, it is agreed as follows:
 1.        Term of Agreement. This Agreement shall commence as of April 13, 1998 and shall continue in effect until April 13, 1999; provided, however, that commencing on April 13, 1999, and on each April 13 thereafter, the term of this Agreement shall automatically be extended for one (1) year unless
either the Company or the Executive shall have given written notice to the other at least ninety (90) days prior thereto that the term of this Agreement shall not be so extended; and provided,
further, however, that notwithstanding any such notice by the Company not to extend, the term of this Agreement shall not expire prior to the expiration of
twelve (12) months after the occurrence of a Change in Control.
 
 

  2.        Definitions.
 2.1.      Accrued Compensation. For
purposes of this Agreement, “Accrued Compensation” shall mean an amount which shall include all amounts earned or accrued through the “Termination Date” (as hereinafter defined) but not paid as of the Termination Date, including,
without limitation, (i) base salary, (ii) reimbursement for reasonable and necessary expenses incurred by the Executive on behalf of the Company during the period ending on the Termination Date, (iii) vacation pay, and (iv) bonuses and incentive
compensation (other than the “Pro Rata Bonus” (as hereinafter defined)).
 2.2.      Base Amount. For purposes of this Agreement, “Base Amount” shall mean the greater of the Executive’s annual base salary (a) at the rate
in effect on the Termination Date or (b) at the highest rate in effect at any time during the ninety (90) day period prior to the Change in Control, and shall include all amounts of his base salary that are deferred under the qualified and
non-qualified employee benefit plans of the Company or any other agreement or arrangement.
 2.3.      Bonus Amount. For purposes of this Agreement, “Bonus Amount” shall mean the average of the annual bonuses paid or payable to the Executive
during the three (3) full fiscal years ended prior to the Termination Date or, if greater, the three full fiscal years ended prior to the Change in Control (or, in each case, such lesser period for which annual bonuses were paid or payable to the
Executive).
 2.4.      Cause. For purposes of
this Agreement, a termination of employment is for “Cause” if the Executive has been convicted of a felony or a felony prosecution has been brought against the Executive or if the termination is evidenced by a resolution adopted in good
faith by two-thirds of the Board that the Executive (a) intentionally and continually failed substantially to perform his reasonably assigned duties with the Company (other than a failure resulting from the Executive’s incapacity due to
physical or mental illness or from the Executive’s assignment of duties that would constitute “Good Reason” as hereinafter defined) which failure continued for a period of at least thirty (30) days after a written notice of demand for
substantial performance has been delivered to the Executive specifying the manner in which the Executive has failed substantially to perform, or (b) intentionally engaged in conduct which is demonstrably and materially injurious to the Company;
provided, however, that (i) where the Executive has been terminated for Cause because a felony prosecution has been brought against him and no conviction
or plea of guilty or plea of nolo contendere or its equivalent results therefrom, then said termination shall no longer be deemed to have been for Cause and the Executive shall be entitled to all the benefits provided by Section 3.1(b) hereof from
and after the date on which the prosecution of the Executive has been dismissed or a judgement of acquittal has been entered, whichever shall first occur; and (ii) no termination of the Executive’s employment shall be for Cause as set forth in
clause (b) above until (x) there shall have been delivered to the Executive a copy of a written notice setting forth that the Executive was guilty of the conduct set forth in clause (b) and specifying the particulars thereof in detail, and (y) the
Executive shall have been provided an opportunity to be heard in person by the Board (with the assistance of the Executive’s counsel if the Executive so desires). No act, nor failure to act, on
 

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  the Executive’s part, shall be considered “intentional” unless the Executive has acted or failed to act, with a lack of good faith and with a
lack of reasonable belief that the Executive’s action or failure to act was in the best interest of the Company.
 2.5.      Change in Control. For purposes of this Agreement, a “Change in Control” shall have occurred if:
 (a)       a majority of the directors of the Company shall be persons other than persons: (A) for whose
election proxies shall have been solicited by the Board, or (B) who are then serving as directors appointed by the Board to fill vacancies on the Board caused by death or resignation (but not by removal) or to fill newly-created
directorships;
 (b)      a majority of the outstanding voting power
of the Company shall have been acquired or beneficially owned (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended, or any successor rule thereto) by any person (other than the Company, a subsidiary of the Company or the
Executive) or Group (as defined below), which Group does not include the Executive; or
 (c)       there shall have occurred:
 (A)      a merger or consolidation of the Company with or into another corporation (other than (1) a merger or consolidation with a subsidiary of the Company or (2) a merger or consolidation in
which (aa) the holders of voting stock of the Company immediately prior to the merger as a class continue to hold immediately after the merger at least a majority of all outstanding voting power of the surviving or resulting corporation or its
parent and (bb) all holders of each outstanding class or series of voting stock of the Company immediately prior to the merger or consolidation have the right to receive substantially the same cash, securities or other property in exchange for their
voting stock of the Company as all other holders of such class or series);
 (B)      a statutory exchange of shares of one or more classes or series of outstanding voting stock of the Company for cash, securities or other property;
 (C)      the sale or other disposition of all or substantially all of the assets of the
Company (in one transaction or a series of transactions); or
 (D)      the liquidation or dissolution of the Company;
 unless more than twenty-five percent (25%) of the voting stock (or the voting equity interest) of the
surviving corporation or the corporation or 
 

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  other entity acquiring all or substantially all of the assets of the Company (in the case of a merger, consolidation or disposition of
assets) or of the Company or its resulting parent corporation (in the case of a statutory share exchange) is beneficially owned by the Executive or a Group that includes the Executive.
 2.6.      Group. For purposes of this Agreement, “Group” shall mean any two or more persons acting
as a partnership, limited partnership, syndicate, or other group acting in concert for the purpose of acquiring, holding or disposing of voting stock of the Company.
 2.7.      Company. For purposes of this Agreement, “Company” shall mean ABC Bancorp and shall
include each of its subsidiaries and its “Successors and Assigns” (as hereinafter defined).
 2.8.      Disability. For purposes of this Agreement, “Disability” shall mean a physical or mental infirmity which impairs the Executive’s ability
to substantially perform his duties with the Company for a period of one hundred eighty (180) consecutive days and the Executive has not returned to his full time employment prior to the Termination Date as stated in the “Notice of
Termination” (as hereinafter defined).
 2.9.      Good
Reason.
 2.9.1.   For purposes of this Agreement,
“Good Reason” shall mean a good faith determination by the Executive, in the Executive’s sole and absolute judgment, that any one or more of the following events has occurred, without the Executive’s express written consent,
after a Change in Control:
 (a)       a change in the
Executive’s reporting responsibilities, titles or offices as in effect immediately prior to the Change of Control, or any removal of the Executive from, or any failure to re-elect the Executive to, any of such positions which has the effect of
diminishing the Executive’s responsibility or authority;
 (b)       a reduction by the Company in the Executive’s base salary as in effect immediately prior to the Change of Control or as the same may be increased from time to time or a change
in the eligibility requirements or performance criteria under any bonus, incentive or compensation plan, program or arrangement under which the Executive is covered immediately prior to the Change of Control which adversely affects the
Executive;
 (c)       the Company requires the Executive to be
based anywhere other than within fifty (50) miles of the Executive’s job location at the time of the Change of Control, provided that if the Executive’s job location at such time is not within fifty (50) miles of the
Company’s
 

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  principal executive offices, then the Company may thereafter require the Executive to be based within such fifty (50) mile radius without
such event constituting Good Reason hereunder; 
 (d)       without replacement by a plan providing benefits to the Executive equal to or greater than those discontinued, the failure by the Company to continue in effect, within its maximum stated term, any pension, bonus, incentive, stock ownership,
purchase, option, life insurance, health, accident disability, or any other employee benefit plan, program or arrangement, in which the Executive is participating at the time of the Change of Control, or the taking of any action by the Company that
would adversely affect the Executive’s participation or materially reduce the Executive’s benefits under any of such plans;
 (e)       the taking of any action by the Company that would materially adversely affect the physical conditions existing at the time of the Change of Control in or
under which the Executive performs his employment duties, provided that the Company may take action with respect to such conditions after a Change in Control so long as such conditions are at least commensurate with the conditions in or under which
an officer of the Executive’s status would customarily perform his employment duties; or
 (f)       a material change in the fundamental business philosophy, direction, and precepts of the Company and its subsidiaries, considered as a whole, as the same existed prior to the
Change of Control.
 2.9.2    Any event described in subsection 2.9.1 (a)
through (f) which occurs prior to a Change in Control but which the Executive reasonably demonstrates (A) was at the request of a third party who has indicated an intention, or taken steps reasonably calculated, to effect a Change in Control or (B)
otherwise arose in connection with, or in anticipation of, a Change in Control which actually occurs, shall constitute Good Reason for purposes hereof, notwithstanding that it occurred prior to a Change in Control.
 2.9.3    The Executive’s right to terminate his employment pursuant to this Section 2.9
shall not be affected by his incapacity due to physical or mental illness.
 2.10.    Notice of Termination. For purposes of this Agreement, “Notice of Termination” shall mean a written notice of termination from the Company, following a Change in Control, of the Executive’s
employment which indicates the specific termination provision in this Agreement relied upon and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated.
 

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  2.11.    Pro Rata Bonus. For
purposes of this Agreement, “Pro Rata Bonus” shall mean an amount equal to the Bonus Amount multiplied by a fraction the numerator of which is the number of days in the fiscal year through the Termination Date and the denominator of which
is 365.
 2.12.    Successors and Assigns.  For
purposes of this Agreement, “Successors and Assigns” shall mean a corporation or other entity acquiring all of substantially all the assets and business of the Company (including this Agreement) whether by operation of law or
otherwise.
 2.13.    Termination Date.  For purposes
of this Agreement, “Termination Date” shall mean in the case of the Executive’s death, his date of death, in the case of Good Reason, the last day of employment, and in all other cases, the date specified in the Notice of Termination;
provided, however, that if the Executive’s employment is terminated by the Company for Cause or due to Disability, the date specified in the Notice of Termination shall be at least thirty (30) days from the date the Notice of Termination is
given to the Executive, provided that in the case of Disability the Executive shall not have returned to the full-time performance of his duties during such period of at least thirty (30) days.
 3.        Termination of Employment.
 3.1.      Severance Benefits. If, during the term of this Agreement,
the Executive’s employment with the Company shall be terminated within twelve (12) months following a Change in Control, the Executive shall be entitled to the following compensation and benefits:
 (a)       If the Executive’s employment with the Company shall be terminated (i) by the Company for
Cause or Disability, (ii) by reason of the Executive’s death, or (iii) by the Executive other than for Good Reason, the Company shall pay to the Executive the Accrued Compensation and, if such termination is by the Company other than for Cause,
a Pro Rata Bonus.
 (b)      If the Executive’s employment with
the Company shall be terminated for any reason other than as specified in Section 3.1(a), the Executive shall be entitled to the following:
 (i)        the Company shall pay the Executive all Accrued Compensation and a Pro-Rata Bonus;
 (ii)       the Company shall pay the Executive as severance pay and in lieu of any further compensation for periods
subsequent to the Termination Date an amount in cash equal to one times the sum of (A) the Base Amount and (B) the Bonus Amount; 
 (iii)     for a number of months equal to twelve (12) (the “Continuation Period”), the Company shall at its expense continue on behalf of the Executive and his
dependents and beneficiaries the life
 

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  insurance, disability, medical, dental and hospitalization benefits generally provided to the Company’s non-executive salaried
employees at any time during the 90-day period prior to the Change in Control or at any time thereafter. The Company’s obligation hereunder with respect to the foregoing benefits shall be limited to the extent that the Executive obtains any
such benefits pursuant to a subsequent employer’s benefit plans, in which case the Company may reduce the coverage of any benefits it is required to provide the Executive hereunder as long as the aggregate coverages and benefits of the combined
benefit plans is no less favorable to the Executive than the coverages and benefits required to be provided hereunder. This subsection (iii) shall not be interpreted so as to limit any benefits to which the Executive or his dependents or
beneficiaries may be entitled under any of the Company’s employee benefit plans, programs or practices following the Executive’s termination of employment, including, without limitation, retiree medical and life insurance
benefits;
 (iv)      the Company shall pay an amount in cash equal to
the excess, if any, of (A) the Supplemental Retirement Benefit (as defined below) had (w) the Executive remained employed by the Company for an additional one (1) complete year of credited service, (x) his annual compensation during such period been
equal to his Base Salary and the Bonus Amount, (y) the Company made employer contributions to each defined contribution plan, if any, in which the Executive was a participant at the Termination Date (in an amount equal to the amount of such
contribution for the plan year immediately preceding the Termination Date) and (z) he been fully (100%) vested in his benefit under each retirement plan, if any, in which the Executive was a participant, over (B) the lump sum actuarial equivalent of
the aggregate retirement benefit, if any, the Executive is actually entitled to receive under such retirement plans. For purposes of this subsection (iv), the “Supplemental Retirement Benefit” shall mean the lump sum actuarial equivalent
of the aggregate retirement benefit the Executive would have been entitled to receive under the Company’s supplemental and other retirement plans, if any; and
 (v)       the restrictions on any outstanding incentive awards (including restricted stock and granted performance shares or units) under any
incentive plan or arrangement shall lapse and such incentive award shall become 100% vested, all stock options and stock appreciation rights granted to the Executive shall become immediately exercisable and shall become 100% vested, and all
performance units granted to the Executive shall become 100% vested, provided that to the extent that all or any part of any such incentive award or stock option or stock appreciation right or performance unit is not exercisable or does not vest
within four (4) years from the Termination Date, then to that extent (but only to that extent)
 

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  there shall be no acceleration of vesting or lapse of restrictions under this Section 3.1(b)(v).
 (c)       The amounts provided for in Sections 3.1(a) and 3.1(b)(i), (ii) and (iv) shall be paid in
twelve (12) equal monthly payments (without interest) on the first day of each month commencing on the first day of the month immediately following Executive’s Termination Date. 
 (d)      The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment except as provided in Section 3.1(b)(iii).
 3.2       Payments in Lieu of Other Severance Benefits.
The severance pay and benefits provided for in this Section 3 shall be in lieu of any other severance or termination pay to which the Executive may be entitled under any Company severance or termination plan, program,
practice or arrangement.
 3.3.      Other Compensation
and Benefits. The Executive’s entitlement to any other compensation or benefits shall be determined in accordance with the Company’s employee benefit plans and other applicable
programs, policies and practices then in effect.
 4.        Notice
of Termination. Following a Change in Control, any purported termination of the Executive’s employment by the Company shall be communicated by Notice of Termination to the Executive. For purposes of this Agreement,
no such purported termination shall be effective without such Notice of Termination.
 

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  5.        Excess Parachute
Payments.
 5.1       Excise
Tax. Notwithstanding anything contained herein to the contrary, if any portion of the payments and benefits provided hereunder and benefits provided to, or for the benefit of, the Executive under any other plan or
agreement of the Company (such payments or benefits are collectively referred to as the “Payments”) would be subject to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended
(the “Code”) or would be nondeductible by the Company pursuant to Section 280G of the Code, the Payments shall be reduced (but not below zero) if and to the extent necessary so that no portion of any Payment to be made or benefit to be
provided to the Executive shall be subject to the Excise Tax or shall be nondeductible by the Company pursuant to Section 280G of the Code (such reduced amount is hereinafter referred to as the “Limited Payment Amount”). Unless the
Executive shall have given prior written notice specifying a different order to the Company to effectuate the Limited Payment Amount, the Company shall reduce or eliminate the Payments, by first reducing or eliminating those payments or benefits
which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the Determination (as hereinafter defined). Any notice
given by the Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation.
 5.2       Excise Tax Determination. An initial
determination as to whether the Payments shall be reduced to the Limited Payment Amount pursuant to the Plan and the amount of such Limited Payment Amount shall be made by an accounting firm at the Company’s expense selected by the Company
which is designated as one of the six largest accounting firms in the United States (the “Accounting Firm”). The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting
calculations and documentation to the Company and the Executive within thirty (30) days of the Termination Date, if applicable, and if the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to a Payment or
Payments, it shall furnish the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to any such Payment or Payments. Within ten (10) days of the delivery of the Determination to the
Executive, the Executive shall have the right to dispute the Determination (the “Dispute”). If there is no Dispute, the Determination shall be binding, final and conclusive upon the Company and the Executive subject to the application of
Section 5.3 below.
 5.3       Excess Payment. As a result of the uncertainty in the application of Sections 4999 and 280G of the Code, it is possible that the Payments to be made to, or provided for the benefit of, the Executive either have been made or will not be made by the Company
which, in either case, will be inconsistent with the limitations provided in Section 5.1 (hereinafter referred to as an “Excess Payment” or “Underpayment”, respectively). If it is established pursuant to a final determination of
a court or an Internal Revenue Service (the “IRS”) proceeding which has been finally and conclusively resolved, that an Excess Payment has been made, such Excess Payment shall be deemed for all purposes to be a loan to the Executive made
on the date the Executive received the Excess Payment and the Executive shall repay the Excess Payment to the
 

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  Company on demand (but not less than ten (10) days after written notice is received by the Executive), together with interest on the Excess Payment at the
“Applicable Federal Rate” (as defined in Section 1274(d) of the Code) from the date of the Executive’s receipt of such Excess Payment until the date of such repayment. In the event that it is determined by (i) the Accounting Firm, the
Company (which shall include the position taken by the Company, or together with its consolidated group, on its federal income tax return) or the IRS, (ii) pursuant to a determination by a court, or (iii) upon the resolution to the Executive’s
satisfaction of the Dispute, that an Underpayment has occurred, the Company shall pay an amount equal to the Underpayment to the Executive within ten (10) days of such determination or resolution, together with interest on such amount at the
Applicable Federal Rate from the date such amount would have been paid to the Executive until the date of payment.
 6.        One Million Dollar Deduction Limit.
 6.1       Section 162(m). Notwithstanding anything contained herein to the contrary, if any portion of the Payments would be
nondeductible by the Company pursuant to Section 162(m) of the Code, the Payments to be made to the Executive in any taxable year of the Company shall be reduced (but not below zero) if and to the extent necessary so that no portion of any Payment
to be made or benefit to be provided to the Executive in such taxable year of the Company shall be nondeductible by the Company pursuant to Section 162(m) of the Code. The amount by which any Payment is reduced pursuant to the immediately preceding
sentence, together with interest thereon at the Applicable Federal Rate, shall be paid by the Company to the Executive on or before the fifth business day of the immediately succeeding taxable year of the Company, subject to the application of the
limitations of the immediately preceding sentence and Section 5 hereof. Unless the Executive shall have given prior written notice specifying a different order to the Company to effectuate this Section 6, the Company shall reduce or eliminate the
Payments in any one taxable year of the Company by first reducing or eliminating those payments or benefits which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or
benefits which are to be paid the farthest in time from the Section 162(m) Determination (as hereinafter defined). Any notice given by the Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan,
arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation.
 6.2       Section 162(m). Determination. The determination as to whether the Payments shall be reduced pursuant to Section 6.1 hereof and the amount of the
Payments to be made in each taxable year after the application of Sections 6.1 hereof shall be made by the Accounting Firm at the Company’s expense. The Accounting Firm shall provide its determination (the “Section 162(m)
Determination”), together with detailed supporting calculations and documentation to the Company and the Executive within thirty (30) days of the Termination Date. The Section 162(m) Determination shall be binding, final and conclusive upon the
Company and the Executive.
 

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  7.        Restrictive
Covenants.
 7.1       Additional
Consideration. The Executive acknowledges that (i) the Company separately bargained and paid additional consideration for the restrictive covenants herein; and (ii) the Company has provided certain benefits to the
Executive hereunder in reliance on such covenants in view of the unique and essential nature of the services the Executive performs or will perform on behalf of the Company and the irreparable injury that would befall the Company should the
Executive breach such covenants.
 7.2       Uniqueness of
Services. The Executive further acknowledges that his services are of a special, unique and extraordinary character and that his position with the Company places or will place him in a position of confidence and trust
with employees of the Company and with the Company’s other constituencies and allows him or will allow him access to Confidential Information (as hereinafter defined).
 7.3       Reasonableness of Restrictions. The Executive further acknowledges that the type and periods
of restrictions imposed by the covenants in this Section 7 are fair and reasonable and that such restrictions will not prevent the Executive from earning a livelihood.
 7.4       Business of Company. The Executive further acknowledges that (a) the Company, together with
its subsidiaries, is engaged in the commercial banking business; (b) the Company conducts its business activity in and throughout the Area (as hereinafter defined); and (c) Competing Businesses (as hereinafter defined) are engaged in businesses like
and similar to the business of the Company.
 7.5       Covenants. Having acknowledged the foregoing, the Executive covenants and agrees with the Company that he will not, directly or indirectly: 
 (a)       while he is in the Company’s employ and through the period ending one (1) year after the termination of his
employment for any reason whatsoever (whether voluntarily or involuntarily), disclose or use or otherwise exploit for his own benefit, or the benefit of any other person, except as may be necessary in the performance of his duties hereunder, any
Confidential Information disclosed to the Executive or of which the Executive became aware by reason of his employment with or ownership in the Company; 
 (b)       while he is in the Company’s employ and through the period ending one (1) year after the termination of his employment for Cause
or Disability, solicit or divert or appropriate to any Competing Business, directly or indirectly, on his own behalf or in the service of or on behalf of any Competing Business, or attempt to solicit or divert or appropriate to any such Competing
Business, within the Area, any person or entity who or which was a customer of the Company at any time during the last twelve (12) months of the Executive’s employment hereunder and with whom the Executive had contact during the term of his
employment;
 

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  (c)       while he is in the
Company’s employ and through the period ending one (1) year after the termination of his employment for Cause or Disability, employ or attempt to employ or assist anyone else in employing in any Competing Business in the Area any officer,
managerial or executive employee of the Company (whether or not such employment is full time or is pursuant to a written contract with the Company); and
 (d)       while he is in the Company’s employ and through the period ending one (1) year after the termination of his employment for Cause
or Disability, engage in or render any services to, or be employed by, any Competing Business in the Area in the capacity of officer, managerial or executive employee, director, consultant or shareholder (other than as the owner of less than one
(1%) percent of the shares of a publicly-owned corporation whose shares are traded on a national securities exchange or in the over-the-counter market); provided, however, that this subsection (iv) shall not prohibit or otherwise restrict the
Executive from accepting employment with a bank holding company that has a banking subsidiary within the Area so long as the principal offices of such holding company are outside the Area and the Executive’s place of employment is also outside
the Area.
 7.6       Return of Documents.
The Executive agrees that upon the termination of his employment for any reason whatsoever (whether voluntarily or involuntarily) he will not take with him or retain without written authorization, and he will promptly deliver to the Company,
originals and all copies of all papers, files or other documents containing any Confidential Information and all other property belonging to the Company and in his possession or under his control.
 7.7       Area. For purposes of this Section 7, the term (a) “Area” means
a fifty (50) mile radius of the main office of the Company’s subsidiary located at Tifton, Georgia; (b) “Competing Business” means the commercial banking business; and (c) “Confidential Information” means any and all data
and information relating to the business of the Company (whether or not constituting a trade secret) that is, has been or will be disclosed to the Executive or of which the Executive became or becomes aware as a consequence of or through his
relationship with the Company and that has value to the Company and is not generally known by its competitors; provided, however, that no information will
be deemed confidential unless it has been reduced to writing and marked clearly and conspicuously as confidential information, or it is otherwise treated by the Company as confidential. Confidential Information shall not include any data or
information that has been voluntarily disclosed to the public by the Company (except where such public disclosure has been made without authorization by the Company), or that has been independently developed and disclosed by others, or that
otherwise enters the public domain through lawful means. Confidential Information includes, but is not limited to, information relating to the Company’s financial affairs, processes, services, customers, employees or employees’
compensation, accounting or marketing.
 

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  7.8       Injunctive Relief. The Executive acknowledges that irreparable loss and injury would result to the Company upon the breach of any of the covenants contained in this Section 7 and that damages arising out of such breach would be difficult to ascertain. The
Executive hereby agrees that, in addition to all other remedies provided at law or at equity, the Company may petition and obtain from a court of law or equity both temporary and permanent injunctive relief to prevent a breach by the Executive of
any covenant contained in this Section 7.
 8.        Successors;
Assignability.
 8.1       Binding
Agreement. This Agreement shall be binding upon and shall inure to the benefit of the Company, its Successors and Assigns, and the Company shall require any Successors and Assigns to expressly assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal
personal representative.
 8.2       No Assignment. Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution.
 9.        Fees and Expenses. The Company shall pay all
legal fees and related expenses (including the costs of experts, evidence and counsel) incurred by the Executive as they become due as a result of (a) the Executive’s termination of employment (including all such fees and expenses, if any,
incurred in contesting or disputing any such termination of employment), (b) the Executive seeking to obtain or enforce any right or benefit provided by this Agreement (including, without limitation, any such fees and expenses incurred in connection
with the Dispute) or by any other plan or arrangement maintained by the Company under which the Executive is or may be entitled to receive benefits, and (c) the Executive’s hearing before the Board as contemplated in Section 2.4 of this
Agreement; provided, however, that the circumstances set forth in clauses (a) and (b) of this Section 9 (other than as a result of the Executive’s
termination of employment under circumstances described in Section 2.9.2) occurred on or after a Change in Control.
 10.      Notice. For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination)
shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each party to the other, provided
that all notices to the Company shall be directed to the attention of the Board with a copy to the Secretary of the Company. All notices and communications shall be deemed to have been received on the date of delivery thereof or on the third
business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.
 11.      Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any benefit,
bonus, incentive or other plan or
 

13

  program provided by the Company (except for any severance or termination policies, plans, programs or practices) and for which the Executive may qualify, nor
shall anything herein limit or reduce such rights as the executive may have under any other agreements with the Company (except for any severance or termination agreement). Amounts which are vested benefits or which the Executive is otherwise
entitled to receive under any plan or program of the Company shall be payable in accordance with such plan or program, except as explicitly modified by this Agreement.
 12.      Settlement of Claims. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or
others.
 13.      Miscellaneous. No provision of
this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement
or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.
 14.      Governing Law. This Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of Georgia without giving effect to the conflict of laws principles thereof. 
 15.      Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the provisions hereof.
 16.      Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect
to the subject matter hereof.
 

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  IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and delivered by its duly authorized
officers and has caused its proper corporate seal to be affixed hereto, and the Executive has executed, sealed and delivered this Agreement, all as of the day and year first above written.
   

	  
 	  
 	  
 	 ABC BANCORP
 
	  
 	  
 	  
 	  
 
	 [CORPORATE SEAL]
 	  
 	  
 	  
 
	 
 
 
 	  
 	 
 By: 
 	 /s/ KENNETH J. HUNNICUTT
 
	  
 	  
 	  
 	 
 
	 ATTEST:
 	  
 	  
 	 KENNETH J. HUNNICUTT
 PRESIDENT & CEO
 
	 
    /s/ CINDI H. LEWIS
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 
	 Assistant Secretary
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 /s/ EDWIN W. HORTMAN, JR. 
 	 (SEAL)
 
	  
 	  
 	  
 	 
 	  
 
	  
 	  
 	  
 	 EDWIN W. HORTMAN, JR.
 

  
 
 16

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