Document:

GUARANTEE AGREEMENT

 EXHIBIT 10.51 
  

 GUARANTEE AGREEMENT 
 by and between 
 COMMUNITY CAPITAL CORPORATION 
 and 
 WILMINGTON TRUST COMPANY

 Dated as of June 15, 2006 
  

  

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 GUARANTEE AGREEMENT 
 This GUARANTEE AGREEMENT (this “Guarantee”), dated as of June 15, 2006, is executed and delivered by Community Capital Corporation, a
South Carolina corporation (the “Guarantor”), and Wilmington Trust Company, a Delaware banking corporation, as trustee (the “Guarantee Trustee”), for the benefit of the Holders (as defined herein) from time to time of the Capital
Securities (as defined herein) of Community Capital (SC) Statutory Trust I, a Delaware statutory trust (the “Issuer”). 
 WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”), dated as of the date hereof among Wilmington Trust Company, not in its individual capacity but solely as institutional trustee, the
administrators of the Issuer named therein, the Guarantor, as sponsor, and the holders from time to time of undivided beneficial interests in the assets of the Issuer, the Issuer is issuing on the date hereof those undivided beneficial interests,
having an aggregate liquidation amount of $10,000,000.00 (the “Capital Securities”); and 
 WHEREAS, as incentive for the Holders
to purchase the Capital Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth in this Guarantee, to pay to the Holders of Capital Securities the Guarantee Payments (as defined herein) and to make certain
other payments on the terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of the purchase by each Holder of the
Capital Securities, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this Guarantee for the benefit of the Holders. 
 ARTICLE I 
 DEFINITIONS AND INTERPRETATION 
 Section 1.1. Definitions and Interpretation. In this Guarantee, unless the context otherwise requires: 
 (a) capitalized terms used in this Guarantee but not defined in the preamble above have the respective meanings assigned to them in this
Section 1.1; 
 (b) a term defined anywhere in this Guarantee has the same meaning throughout; 
 (c) all references to “the Guarantee” or “this Guarantee” are to this Guarantee as modified, supplemented or amended from time to
time; 
 (d) all references in this Guarantee to “Articles” or “Sections” are to Articles or Sections of this Guarantee,
unless otherwise specified; 
 (e) terms defined in the Declaration as at the date of execution of this Guarantee have the same meanings when
used in this Guarantee, unless otherwise defined in this Guarantee or unless the context otherwise requires; and 
  

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 (f) a reference to the singular includes the plural and vice versa. 
 “Affiliate” has the same meaning as given to that term in Rule 405 of the Securities Act of 1933, as amended, or any successor rule
thereunder. 
 “Beneficiaries” means any Person to whom the Issuer is or hereafter becomes indebted or liable. 

“Capital Securities” has the meaning set forth in the recitals to this Guarantee. 
 “Common Securities” means the common securities issued by the Issuer to the Guarantor pursuant to the Declaration. 
 “Corporate Trust Office” means the office of the Guarantee Trustee at which the corporate trust business of the Guarantee Trustee shall,
at any particular time, be principally administered, which office at the date of execution of this Guarantee is located at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-1600, Attention: Corporate Trust Administration.

 “Covered Person” means any Holder of Capital Securities. 
 “Debentures” means the debt securities of the Guarantor designated the Fixed/Floating Rate Junior Subordinated Deferrable Interest
Debentures due 2036 held by the Institutional Trustee (as defined in the Declaration) of the Issuer. 
 “Declaration Event of
Default” means an “Event of Default” as defined in the Declaration. 
 “Event of Default” has the meaning
set forth in Section 2.4(a). 
 “Guarantee Payments” means the following payments or distributions, without
duplication, with respect to the Capital Securities, to the extent not paid or made by the Issuer: (i) any accrued and unpaid Distributions (as defined in the Declaration) which are required to be paid on such Capital Securities to the
extent the Issuer shall have funds available therefor, (ii) the Redemption Price to the extent the Issuer has funds available therefor, with respect to any Capital Securities called for redemption by the Issuer, (iii) the Special
Redemption Price to the extent the Issuer has funds available therefor, with respect to Capital Securities redeemed upon the occurrence of a Special Event, and (iv) upon a voluntary or involuntary liquidation, dissolution, winding-up or
termination of the Issuer (other than in connection with the distribution of Debentures to the Holders of the Capital Securities in exchange therefor as provided in the Declaration), the lesser of (a) the aggregate of the liquidation amount and
all accrued and unpaid Distributions on the Capital Securities to the date of payment, to the extent the Issuer shall have funds available therefor, and (b) the amount of assets of the Issuer remaining available for distribution to Holders in
liquidation of the Issuer (in either case, the “Liquidation Distribution”). 
 “Guarantee Trustee” means
Wilmington Trust Company, until a Successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee and thereafter means each such Successor Guarantee Trustee. 
  

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 “Guarantor” means Community Capital Corporation and each of its successors and assigns.

 “Holder” means any holder, as registered on the books and records of the Issuer, of any Capital Securities;
provided, however, that, in determining whether the Holders of the requisite percentage of Capital Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include the Guarantor or any
Affiliate of the Guarantor. 
 “Indemnified Person” means the Guarantee Trustee, any Affiliate of the Guarantee Trustee, or
any officers, directors, shareholders, members, partners, employees, representatives, nominees, custodians or agents of the Guarantee Trustee. 
 “Indenture” means the Indenture dated as of the date hereof between the Guarantor and Wilmington Trust Company, not in its individual capacity but solely as trustee, and any indenture supplemental thereto pursuant to which
the Debentures are to be issued to the institutional trustee of the Issuer. 
 “Issuer” has the meaning set forth in the
opening paragraph to this Guarantee. 
 “Liquidation Distribution” has the meaning set forth in the definition of
“Guarantee Payments” herein. 
 “Majority in liquidation amount of the Capital Securities” means Holder(s) of
outstanding Capital Securities, voting together as a class, but separately from the holders of Common Securities, of more than 50% of the aggregate liquidation amount (including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages are determined) of all Capital Securities then outstanding. 
 “Obligations” means any costs, expenses or liabilities (but not including liabilities related to taxes) of the Issuer other than obligations of the Issuer to pay to holders of any Trust Securities the
amounts due such holders pursuant to the terms of the Trust Securities. 
 “Officer’s Certificate” means, with respect
to any Person, a certificate signed by one Authorized Officer of such Person. Any Officer’s Certificate delivered with respect to compliance with a condition or covenant provided for in this Guarantee shall include: 
 (a) a statement that the officer signing the Officer’s Certificate has read the covenant or condition and the definitions relating thereto;

 (b) a brief statement of the nature and scope of the examination or investigation undertaken by the officer in rendering the
Officer’s Certificate; 
 (c) a statement that the officer has made such examination or investigation as, in such officer’s
opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (d) a statement as to whether, in the opinion of the officer, such condition or covenant has been complied with. 
  

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 “Person” means a legal person, including any individual, corporation, estate,
partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 
 “Redemption Price” has the meaning set forth in the Indenture. 
 “Responsible Officer” means, with respect to the Guarantee Trustee, any officer within the Corporate Trust Office of the Guarantee
Trustee including any Vice President, Assistant Vice President, Secretary, Assistant Secretary or any other officer of the Guarantee Trustee customarily performing functions similar to those performed by any of the above designated officers and
also, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject. 
 “Special Event” has the meaning set forth in the Indenture. 
 “Special Redemption Price” has the meaning set forth in the Indenture. 
 “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under
Section 3.1. 
 “Trust Securities” means the Common Securities and the Capital Securities. 
 ARTICLE II 
 POWERS, DUTIES AND
RIGHTS OF 
 GUARANTEE TRUSTEE 
 Section 2.1. Powers and Duties of the Guarantee Trustee. 
 (a) This Guarantee shall be held by the Guarantee Trustee
for the benefit of the Holders of the Capital Securities, and the Guarantee Trustee shall not transfer this Guarantee to any Person except a Holder of Capital Securities exercising his or her rights pursuant to Section 4.4(b) or to a Successor
Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall automatically vest in any Successor Guarantee Trustee, and
such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor Guarantee Trustee. 
 (b) If an Event of Default actually known to a Responsible Officer of the Guarantee Trustee has occurred and is continuing, the Guarantee Trustee shall
enforce this Guarantee for the benefit of the Holders of the Capital Securities. 
 (c) The Guarantee Trustee, before the occurrence of any
Event of Default and after curing all Events of Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Guarantee, and no implied covenants shall be read into this Guarantee against the
Guarantee Trustee. In case an Event of Default has occurred (that has not 

  

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been waived pursuant to Section 2.4) and is actually known to a Responsible Officer of the Guarantee Trustee, the Guarantee Trustee shall exercise such
of the rights and powers vested in it by this Guarantee, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 
 (d) No provision of this Guarantee shall be construed to relieve the Guarantee Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that: 
 (i) prior to the occurrence of any Event of Default and after
the curing or waiving of all such Events of Default that may have occurred: 
 (A) the duties and obligations of the Guarantee
Trustee shall be determined solely by the express provisions of this Guarantee, and the Guarantee Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Guarantee, and no implied
covenants or obligations shall be read into this Guarantee against the Guarantee Trustee; and 
 (B) in the absence of bad
faith on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee
and conforming to the requirements of this Guarantee; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty
to examine the same to determine whether or not they conform to the requirements of this Guarantee; 
 (ii) the Guarantee
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Guarantee Trustee, unless it shall be proved that such Responsible Officer of the Guarantee Trustee or the Guarantee Trustee was negligent in
ascertaining the pertinent facts upon which such judgment was made; 
 (iii) the Guarantee Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the Holders of not less than a Majority in liquidation amount of the Capital Securities relating to the time, method and place of
conducting any proceeding for any remedy available to the Guarantee Trustee, or relating to the exercise of any trust or power conferred upon the Guarantee Trustee under this Guarantee; and 
 (iv) no provision of this Guarantee shall require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if the Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds is not reasonably assured to it
under the terms of this Guarantee or security and indemnity, reasonably satisfactory to the Guarantee Trustee, against such risk or liability is not reasonably assured to it. 
  

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 Section 2.2. Certain Rights of Guarantee Trustee. 
 (a) Subject to the provisions of Section 2.1: 
 (i) The Guarantee Trustee may conclusively rely, and shall be fully protected in acting or refraining from acting upon, any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, sent or presented by the proper party or parties. 
 (ii) Any direction or act of the Guarantor contemplated by this Guarantee shall be sufficiently evidenced by an Officer’s
Certificate. 
 (iii) Whenever, in the administration of this Guarantee, the Guarantee Trustee shall deem it desirable that a
matter be proved or established before taking, suffering or omitting any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and conclusively rely
upon an Officer’s Certificate of the Guarantor which, upon receipt of such request, shall be promptly delivered by the Guarantor. 
 (iv) The Guarantee Trustee shall have no duty to see to any recording, filing or registration of any instrument (or any re-recording, refiling or re-registration thereof). 
 (v) The Guarantee Trustee may consult with counsel of its selection, and the advice or opinion of such counsel with respect to legal
matters shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion. Such counsel may be counsel to the Guarantor or any of
its Affiliates and may include any of its employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee from any court of competent jurisdiction. 
 (vi) The Guarantee Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Guarantee at the
request or direction of any Holder, unless such Holder shall have provided to the Guarantee Trustee such security and indemnity, reasonably satisfactory to the Guarantee Trustee, against the costs, expenses (including attorneys’ fees and
expenses and the expenses of the Guarantee Trustee’s agents, nominees or custodians) and liabilities that might be incurred by it in complying with such request or direction, including such reasonable advances as may be requested by the
Guarantee Trustee; provided, however, that nothing contained in this Section 2.2(a)(vi) shall relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in
it by this Guarantee. 
 (vii) The Guarantee Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its
discretion, may make such further inquiry or investigation into such facts or matters as it may see fit. 
  

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 (viii) The Guarantee Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents, nominees, custodians or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it
hereunder. 
 (ix) Any action taken by the Guarantee Trustee or its agents hereunder shall bind the Holders of the Capital
Securities, and the signature of the Guarantee Trustee or its agents alone shall be sufficient and effective to perform any such action. No third party shall be required to inquire as to the authority of the Guarantee Trustee to so act or as to its
compliance with any of the terms and provisions of this Guarantee, both of which shall be conclusively evidenced by the Guarantee Trustee’s or its agent’s taking such action. 
 (x) Whenever in the administration of this Guarantee the Guarantee Trustee shall deem it desirable to receive instructions with respect to
enforcing any remedy or right or taking any other action hereunder, the Guarantee Trustee (i) may request instructions from the Holders of a Majority in liquidation amount of the Capital Securities, (ii) may refrain from enforcing such
remedy or right or taking such other action until such instructions are received, and (iii) shall be protected in conclusively relying on or acting in accordance with such instructions. 
 (xi) The Guarantee Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith, without
negligence, and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Guarantee. 
 (b) No provision of this Guarantee shall be deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or imposed on it, in any jurisdiction in
which it shall be illegal or in which the Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law to perform any such act or acts or to exercise any such right, power, duty or obligation. No permissive power or
authority available to the Guarantee Trustee shall be construed to be a duty. 
 Section 2.3. Not Responsible for Recitals or
Issuance of Guarantee. The recitals contained in this Guarantee shall be taken as the statements of the Guarantor, and the Guarantee Trustee does not assume any responsibility for their correctness. The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Guarantee. 
 Section 2.4. Events of Default; Waiver. 
 (a) An Event of Default under this Guarantee will occur upon the failure of the Guarantor to perform any of its payment or other obligations hereunder.

 (b) The Holders of a Majority in liquidation amount of the Capital Securities may, voting or consenting as a class, on behalf of the
Holders of all of the Capital Securities, waive any past Event of Default and its consequences. Upon such waiver, any such Event of Default shall cease to exist, and shall be deemed to have been cured, for every purpose of this Guarantee, 

  

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but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 
 Section 2.5. Events of Default; Notice. 
 (a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage prepaid, to the Holders of the Capital Securities and the Guarantor, notices of all
Events of Default actually known to a Responsible Officer of the Guarantee Trustee, unless such defaults have been cured before the giving of such notice, provided, however, that the Guarantee Trustee shall be protected in withholding
such notice if and so long as a Responsible Officer of the Guarantee Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Capital Securities. 
 (b) The Guarantee Trustee shall not be deemed to have knowledge of any Event of Default unless the Guarantee Trustee shall have received written notice
from the Guarantor or a Holder of the Capital Securities (except in the case of a payment default), or a Responsible Officer of the Guarantee Trustee charged with the administration of this Guarantee shall have obtained actual knowledge thereof.

 ARTICLE III 
 GUARANTEE TRUSTEE 
 Section 3.1. Guarantee Trustee; Eligibility. 
 (a) There shall at all times be a Guarantee Trustee which shall: 
 (i) not be an Affiliate of the Guarantor, and 
 (ii) be a corporation organized and doing business under the laws of the United States of America or any State or Territory thereof or of
the District of Columbia, or Person authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal,
State, Territorial or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the supervising or examining authority referred to above, then, for the purposes of
this Section 3.1(a)(ii), the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. 
 (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section 3.1(a), the Guarantee Trustee shall immediately resign
in the manner and with the effect set out in Section 3.2(c). 
 (c) If the Guarantee Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee shall either 

  

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eliminate such interest or resign to the extent and in the manner provided by, and subject to this Guarantee. 
 Section 3.2. Appointment, Removal and Resignation of Guarantee Trustee. 
 (a) Subject to Section 3.2(b), the Guarantee Trustee may be appointed or removed without cause at any time by the Guarantor except during an Event
of Default. 
 (b) The Guarantee Trustee shall not be removed in accordance with Section 3.2(a) until a Successor Guarantee Trustee has
been appointed and has accepted such appointment by written instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor. 
 (c) The Guarantee Trustee appointed to office shall hold office until a Successor Guarantee Trustee shall have been appointed or until its removal or resignation. The Guarantee Trustee may resign from office (without need for prior or
subsequent accounting) by an instrument in writing executed by the Guarantee Trustee and delivered to the Guarantor, which resignation shall not take effect until a Successor Guarantee Trustee has been appointed and has accepted such appointment by
an instrument in writing executed by such Successor Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee Trustee. 
 (d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 3.2 within 60 days after delivery of an instrument of removal or resignation, the Guarantee Trustee resigning or
being removed may petition any court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee.

 (e) No Guarantee Trustee shall be liable for the acts or omissions to act of any Successor Guarantee Trustee. 
 (f) Upon termination of this Guarantee or removal or resignation of the Guarantee Trustee pursuant to this Section 3.2, the Guarantor shall pay to
the Guarantee Trustee all amounts owing to the Guarantee Trustee under Sections 7.2 and 7.3 accrued to the date of such termination, removal or resignation. 
  

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 ARTICLE IV 
 GUARANTEE 
 Section 4.1. Guarantee. 
 (a) The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), as and when due, regardless of any defense (except the defense of payment by the Issuer), right of set-off or counterclaim that the Issuer may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts to the Holders. 
 (b) The Guarantor hereby also agrees to assume any and all Obligations of the Issuer and in the event any such Obligation is not so assumed, subject to the terms and conditions hereof, the Guarantor hereby irrevocably and unconditionally
guarantees to each Beneficiary the full payment, when and as due, of any and all Obligations to such Beneficiaries. This Guarantee is intended to be for the benefit of, and to be enforceable by, all such Beneficiaries, whether or not such
Beneficiaries have received notice hereof. 
 Section 4.2. Waiver of Notice and Demand. The Guarantor hereby waives
notice of acceptance of this Guarantee and of any liability to which it applies or may apply, presentment, demand for payment, any right to require a proceeding first against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all other notices and demands. 
 Section 4.3.
Obligations Not Affected. The obligations, covenants, agreements and duties of the Guarantor under this Guarantee shall in no way be affected or impaired by reason of the happening from time to time of any of the following: 

(a) the release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Capital Securities to be performed or observed by the Issuer; 
 (b) the extension of time for
the payment by the Issuer of all or any portion of the Distributions, Redemption Price, Special Redemption Price, Liquidation Distribution or any other sums payable under the terms of the Capital Securities or the extension of time for the
performance of any other obligation under, arising out of or in connection with, the Capital Securities (other than an extension of time for payment of Distributions, Redemption Price, Special Redemption Price, Liquidation Distribution or other sum
payable that results from the extension of any interest payment period on the Debentures or any extension of the maturity date of the Debentures permitted by the Indenture); 
 (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Capital Securities, or any action on the part of the Issuer granting indulgence or extension of any kind; 
  

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 (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer or any of the assets of the Issuer; 
 (e) any invalidity of, or defect or deficiency in, the Capital Securities; 
 (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or 
 (g) any other
circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor, it being the intent of this Section 4.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under
any and all circumstances. 
 There shall be no obligation of the Holders to give notice to, or obtain consent of, the Guarantor with respect
to the happening of any of the foregoing. 
 Section 4.4. Rights of Holders. 
 (a) The Holders of a Majority in liquidation amount of the Capital Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee or to direct the exercise of any trust or power conferred upon the Guarantee Trustee under this Guarantee; provided, however, that (subject to
Section 2.1) the Guarantee Trustee shall have the right to decline to follow any such direction if the Guarantee Trustee being advised by counsel determines that the action or proceeding so directed may not lawfully be taken or if the Guarantee
Trustee in good faith by its board of directors or trustees, executive committees or a trust committee of directors or trustees and/or Responsible Officers shall determine that the action or proceedings so directed would involve the Guarantee
Trustee in personal liability. 
 (b) Any Holder of Capital Securities may institute a legal proceeding directly against the Guarantor to
enforce the Guarantee Trustee’s rights under this Guarantee, without first instituting a legal proceeding against the Issuer, the Guarantee Trustee or any other Person. The Guarantor waives any right or remedy to require that any such action be
brought first against the Issuer, the Guarantee Trustee or any other Person before so proceeding directly against the Guarantor. 
 Section 4.5. Guarantee of Payment. This Guarantee creates a guarantee of payment and not of collection. 
 Section 4.6. Subrogation. The Guarantor shall be subrogated to all (if any) rights of the Holders of Capital Securities against the Issuer in respect of any amounts paid to such Holders by the Guarantor under this
Guarantee; provided, however, that the Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any right that it may acquire by way of subrogation or any indemnity,
reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if, after giving effect to any such payment, any amounts are due and unpaid under this Guarantee. If any amount shall be 

  

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paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount
to the Holders. 
 Section 4.7. Independent Obligations. The Guarantor acknowledges that its obligations hereunder
are independent of the obligations of the Issuer with respect to the Capital Securities and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee notwithstanding
the occurrence of any event referred to in subsections (a) through (g), inclusive, of Section 4.3 hereof. 
 Section 4.8.
Enforcement by a Beneficiary. A Beneficiary may enforce the obligations of the Guarantor contained in Section 4.1(b) directly against the Guarantor and the Guarantor waives any right or remedy to require that any action be brought
against the Issuer or any other person or entity before proceeding against the Guarantor. The Guarantor shall be subrogated to all rights (if any) of any Beneficiary against the Issuer in respect of any amounts paid to the Beneficiaries by the
Guarantor under this Guarantee; provided, however, that the Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any rights that it may acquire by way of subrogation or
any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if at the time of any such payment, and after giving effect to such payment, any amounts are due and unpaid under this Guarantee. 

ARTICLE V 
 LIMITATION OF
TRANSACTIONS; SUBORDINATION 
 Section 5.1. Limitation of Transactions. So long as any Capital Securities remain
outstanding, if (a) there shall have occurred and be continuing an Event of Default or a Declaration Event of Default or (b) the Guarantor shall have selected an Extension Period as provided in the Declaration and such period, or any
extension thereof, shall have commenced and be continuing, then the Guarantor shall not and shall not permit any Affiliate to (x) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with
respect to, any of the Guarantor’s or such Affiliate’s capital stock (other than payments of dividends or distributions to the Guarantor) or make any guarantee payments with respect to the foregoing or (y) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Guarantor or any Affiliate that rank pari passu in all respects with or junior in interest to the Debentures (other than, with respect
to clauses (x) and (y) above, (i) repurchases, redemptions or other acquisitions of shares of capital stock of the Guarantor in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit
of one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of capital stock of the Guarantor (or securities convertible into or
exercisable for such capital stock) as consideration in an acquisition transaction entered into prior to the occurrence of the Event of Default, Declaration Event of Default or Extension Period, as applicable, (ii) as a result of any exchange
or conversion of any class or series of the Guarantor’s capital stock (or any capital stock of a subsidiary of the Guarantor) for any class or series of the Guarantor’s capital stock or of any class or series of the Guarantor’s
indebtedness for any class 

  

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or series of the Guarantor’s capital stock, (iii) the purchase of fractional interests in shares of the Guarantor’s capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (iv) any declaration of a dividend in connection with any stockholders’ rights plan, or the issuance of rights, stock or other
property under any stockholders’ rights plan, or the redemption or repurchase of rights pursuant thereto, (v) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise
of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock and any cash payments in lieu of fractional shares issued in connection therewith, or
(vi) payments under this Guarantee). 
 Section 5.2. Ranking. This Guarantee will constitute an unsecured
obligation of the Guarantor and will rank subordinate and junior in right of payment to all present and future Senior Indebtedness (as defined in the Indenture) of the Guarantor. By their acceptance thereof, each Holder of Capital Securities agrees
to the foregoing provisions of this Guarantee and the other terms set forth herein. 
 The right of the Guarantor to participate in any
distribution of assets of any of its subsidiaries upon any such subsidiary’s liquidation or reorganization or otherwise is subject to the prior claims of creditors of that subsidiary, except to the extent the Guarantor may itself be recognized
as a creditor of that subsidiary. Accordingly, the Guarantor’s obligations under this Guarantee will be effectively subordinated to all existing and future liabilities of the Guarantor’s subsidiaries, and claimants should look only to the
assets of the Guarantor for payments hereunder. This Guarantee does not limit the incurrence or issuance of other secured or unsecured debt of the Guarantor, including Senior Indebtedness of the Guarantor, under any indenture that the Guarantor may
enter into in the future or otherwise. 
 ARTICLE VI 
 TERMINATION 
 Section 6.1. Termination. This Guarantee shall terminate as to the
Capital Securities (i) upon full payment of the Redemption Price or Special Redemption Price of all Capital Securities then outstanding, (ii) upon the distribution of all of the Debentures to the Holders of all of the Capital Securities or
(iii) upon full payment of the amounts payable in accordance with the Declaration upon dissolution of the Issuer. This Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any Holder of Capital
Securities must restore payment of any sums paid under the Capital Securities or under this Guarantee. 
  

 13 

 ARTICLE VII 
 INDEMNIFICATION 
 Section 7.1. Exculpation. 
 (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Guarantor or any Covered Person for any loss, damage
or claim incurred by reason of any act or omission performed or omitted by such Indemnified Person in good faith in accordance with this Guarantee and in a manner that such Indemnified Person reasonably believed to be within the scope of the
authority conferred on such Indemnified Person by this Guarantee or by law, except that an Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such Indemnified Person’s negligence or willful misconduct
with respect to such acts or omissions. 
 (b) An Indemnified Person shall be fully protected in relying in good faith upon the records of
the Issuer or the Guarantor and upon such information, opinions, reports or statements presented to the Issuer or the Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional
or expert competence and who, if selected by such Indemnified Person, has been selected with reasonable care by such Indemnified Person, including information, opinions, reports or statements as to the value and amount of the assets, liabilities,
profits, losses, or any other facts pertinent to the existence and amount of assets from which Distributions to Holders of Capital Securities might properly be paid. 
 Section 7.2. Indemnification. 
 (a) The Guarantor agrees to indemnify each Indemnified Person
for, and to hold each Indemnified Person harmless against, any and all loss, liability, damage, claim or expense incurred without negligence or willful misconduct on the part of the Indemnified Person, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including, but not limited to, the costs and expenses (including reasonable legal fees and expenses) of the Indemnified Person defending itself against, or investigating, any claim or
liability in connection with the exercise or performance of any of the Indemnified Person’s powers or duties hereunder. The obligation to indemnify as set forth in this Section 7.2 shall survive the resignation or removal of the Guarantee
Trustee and the termination of this Guarantee. 
 (b) Promptly after receipt by an Indemnified Person under this Section 7.2 of notice
of the commencement of any action, such Indemnified Person will, if a claim in respect thereof is to be made against the Guarantor under this Section 7.2, notify the Guarantor in writing of the commencement thereof; but the failure so to notify
the Guarantor (i) will not relieve the Guarantor from liability under paragraph (a) above unless and to the extent that the Guarantor did not otherwise learn of such action and such failure results in the forfeiture by the Guarantor of
substantial rights and defenses and (ii) will not, in any event, relieve the Guarantor from any obligations to any Indemnified Person other than the indemnification obligation provided in 

  

 14 

 
paragraph (a) above. The Guarantor shall be entitled to appoint counsel of the Guarantor’s choice at the Guarantor’s expense to represent the
Indemnified Person in any action for which indemnification is sought (in which case the Guarantor shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the Indemnified Person or Persons except as set forth
below); provided, however, that such counsel shall be reasonably satisfactory to the Indemnified Person. Notwithstanding the Guarantor’s election to appoint counsel to represent the Guarantor in an action, the Indemnified Person
shall have the right to employ separate counsel (including local counsel), and the Guarantor shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the Guarantor to represent the
Indemnified Person would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the Indemnified Person and the Guarantor and the Indemnified Person shall have
reasonably concluded that there may be legal defenses available to it and/or other Indemnified Person(s) which are different from or additional to those available to the Guarantor, (iii) the Guarantor shall not have employed counsel
satisfactory to the Indemnified Person to represent the Indemnified Person within a reasonable time after notice of the institution of such action or (iv) the Guarantor shall authorize the Indemnified Person to employ separate counsel at the
expense of the Guarantor. The Guarantor will not, without the prior written consent of the Indemnified Persons, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding
in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Persons are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional
release of each Indemnified Person from all liability arising out of such claim, action, suit or proceeding. 
 Section 7.3.
Compensation; Reimbursement of Expenses. The Guarantor agrees: 
 (a) to pay to the Guarantee Trustee from time to time such
compensation for all services rendered by it hereunder as the parties shall agree to from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); and 

(b) except as otherwise expressly provided herein, to reimburse the Guarantee Trustee upon request for all reasonable expenses, disbursements and
advances incurred or made by it in accordance with any provision of this Guarantee (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or willful misconduct. 
 For purposes of clarification, this Section 7.3 does not contemplate the
payment by the Guarantor of acceptance or annual administration fees owing to the Guarantee Trustee for services to be provided by the Guarantee Trustee under this Guarantee or the fees and expenses of the Guarantee Trustee’s counsel in
connection with the closing of the transactions contemplated by this Guarantee. The provisions of this Section 7.3 shall survive the resignation or removal of the Guarantee Trustee and the termination of this Guarantee. 
  

 15 

 ARTICLE VIII 
 MISCELLANEOUS 
 Section 8.1. Successors and Assigns. All guarantees and
agreements contained in this Guarantee shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Capital Securities then outstanding. Except in connection with
any merger or consolidation of the Guarantor with or into another entity or any sale, transfer or lease of the Guarantor’s assets to another entity, in each case, to the extent permitted under the Indenture, the Guarantor may not assign its
rights or delegate its obligations under this Guarantee without the prior approval of the Holders of at least a Majority in liquidation amount of the Capital Securities. 
 Section 8.2. Amendments. Except with respect to any changes that do not adversely affect the rights of Holders of the Capital Securities in any material respect (in which case no consent of
Holders will be required), this Guarantee may be amended only with the prior approval of the Holders of not less than a Majority in liquidation amount of the Capital Securities. The provisions of the Declaration with respect to amendments thereof
apply to the giving of such approval. 
 Section 8.3. Notices. All notices provided for in this Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered, telecopied or mailed by first class mail, as follows: 
 (a) If
given to the Guarantee Trustee, at the Guarantee Trustee’s mailing address set forth below (or such other address as the Guarantee Trustee may give notice of to the Holders of the Capital Securities and the Guarantor): 
 Wilmington Trust Company 
 Rodney Square North

 1100 North Market Street 
 Wilmington, Delaware 19890-1600 
 Attention: Corporate Trust Administration 
 Telecopy: 302-636-4140 
 (b) If given to the
Guarantor, at the Guarantor’s mailing address set forth below (or such other address as the Guarantor may give notice of to the Holders of the Capital Securities and to the Guarantee Trustee): 
 Community Capital Corporation 
 1402
C Highway 72 West 
 Greenwood, South Carolina 29646 
 Attention: R. Wesley Brewer 
 Telecopy: 864-941-8283 
 (c) If given to any Holder of the Capital Securities, at the address set forth on the books and records of the Issuer. 
  

 16 

 All such notices shall be deemed to have been given when received in person, telecopied with receipt
confirmed, or mailed by first class mail, postage prepaid, except that if a notice or other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed
to have been delivered on the date of such refusal or inability to deliver. 
 Section 8.4. Benefit. This Guarantee
is solely for the benefit of the Beneficiaries and, subject to Section 2.1(a), is not separately transferable from the Capital Securities. 
 Section 8.5. Governing Law. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
 Section 8.6. Counterparts. This Guarantee may be executed in
one or more counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same instrument. 
 Section 8.7 Separability. In case one or more of the provisions contained in this Guarantee shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Guarantee, but this Guarantee shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. 
 Signatures appear on the following page 
  

 17 

 THIS GUARANTEE is executed as of the day and year first above written. 
  

					
	COMMUNITY CAPITAL CORPORATION, as Guarantor
		
	By:	 	/s/ William G. Stevens
		 	Name:	 	William G. Stevens
		 	Title:	 	CEO
	
	WILMINGTON TRUST COMPANY, as Guarantee Trustee
		
	By:	 	/s/ Robert J. Perkins
		 	Name:	 	Robert J. Perkins
		 	Title:	 	Financial Services Officer

  

 182006 Inducement Stock Option Plan

 Exhibit 4.9 
 AUTOBYTEL INC. 
 2006 INDUCEMENT STOCK OPTION PLAN 
 SECTION 1 
 DEFINITIONS 
 As used herein, the following terms have the meanings hereinafter set forth unless the context clearly indicates to the contrary: 
 “Administrator” means the Board or the Committee; whichever shall be administering the Plan from time to time in the discretion of the Board,
as described in Section 3 of this Plan, and shall include any Special Committee that the Board or the Committee may appoint (provided that the Special Committee may only exercise discretion with respect to Participants to whom the Special
Committee is authorized to make Options). 
 “Affiliate” means any entity, including any Parent Corporation or Subsidiary
Corporation within the meaning of Section 424 of the Code, which together with the Company is under common control within the meaning of Section 414 of the Code. 
 “Board” means the Board of Directors of the Company. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Committee” means the
Compensation Committee appointed by the Board in accordance with Section 3 of this Plan, or any successor committee thereto. 
 “Common Stock” means the common stock, par value $.001 per share, of the Company. 
 “Company” means Autobytel
Inc., a Delaware corporation. 
 “Director” means a member of the Board of Directors of the Company, and any director or directors
of an Employer Company whom the Board designates as being eligible for Options. 
 “Employee” means an individual who is employed
(within the meaning of Section 3401 of the Code and the Treasury Regulations thereunder) by the Company or any present or future Employer Company. 
 “Employer Company” means a company, whether (i) the Company or a Parent Corporation or Subsidiary Corporation of the Company, which employs the Employee; or 

 
(ii) a 50% or more affiliate of the Company or a Parent Corporation or Subsidiary Corporation of the Company, which employs the Employee. 
 “Fair Market Value of Shares” shall mean (i) if the Shares are not publicly traded on the day in question, the closing price of the Shares
on the prior trading day or the next trading day (whichever is closest in time to the day in question), provided that such date is no more than five (5) days from the date the Option is granted, (ii) if the Shares are not publicly traded
on the day in question and clause (i) above does not apply, the fair market value of the Shares on the day in question as determined and set forth in writing by the Administrator (which, in making such determination, shall make a good faith
effort to establish the true fair market value of the Shares as of such date using such methods as it deems appropriate, including independent appraisals, and taking into consideration any requirements set forth in the Code or the Treasury
Regulations thereunder), or (iii) if the Shares are publicly traded on the day in question, the closing price of the Shares on the day in question. The closing price shall be the average of the highest and lowest quoted selling prices on the
principal national securities exchange on which the Shares are listed or admitted to trading or, if not listed or admitted to trading on any national securities exchange or if the Shares are not listed or admitted to trading on any national
securities exchange, the closing price of the Shares shall be the average of the highest and lowest quoted selling prices as reported by The Wall Street Journal for the over-the-counter market on the day in question. 
 “NASD Marketplace Rules” means the Marketplace Rules adopted by the Board of Governors of the NASD pursuant to the by-laws of the NASD, as
amended or supplemented from time to time. 
 “Option” means an option to purchase a Share pursuant to the provisions of this Plan.

 “Option Agreement” means any written document setting forth the terms and conditions of an Option, as prescribed by the
Committee. 
 “Option Price” means the price per share of the Shares subject to each Option as provided in Section 6.3 below.

 “Option Term” means the maximum period of time during which an Option may be earned, exercised or purchased as set forth in
Section 6.7 below. 
 “Parent Corporation” shall have the meaning assigned to that term under Section 424 of the Code.

 “Participant” shall have the meaning assigned to that term in Section 4.1 below. 
 “Plan” means the Autobytel Inc. 2006 Inducement Stock Option Plan, the terms of which are set forth herein. 
  

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 “Share” or “Shares” means Common Stock, or, in the event that the outstanding Shares
are hereafter changed into or exchanged for different shares or securities of the Company or some other corporation or other entity, such other shares or securities. 
 “Special Committee” means any committee to which the Board or Committee may delegate the authority to grant Options to eligible persons not described in Section 16 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). 
 “Subsidiary Corporation” shall have the meaning assigned to that term under
Section 424 of the Code. 
 “Total and Permanent Disability,” unless otherwise specified in the applicable Option Agreement,
means the inability of an Employee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a
continuous period of not less than twelve months. 
 SECTION 2 
 THE PLAN 
 2.1 Name. This Plan shall be known as “Autobytel Inc. 2006 Inducement Stock Option
Plan.” 
 2.2 Purpose. The sole purpose of this Plan is to advance the interests of the Company and its stockholders by inducing
individuals to join the an Employer Company as Employees or Directors by affording such individuals an opportunity to acquire a proprietary interest in the Company by the grant to such individuals of Options under the terms set forth herein.

 2.3 Intention; Options. It is intended that Options under this Plan will not qualify as incentive stock options within the meaning
of Section 422 of the Code and the terms of this Plan shall be interpreted in accordance with such intention. It is further intended that the Options under this Plan will not require shareholder approval pursuant to Rule 4350(i)(1)(A)(iv) of
the NASD Marketplace Rules. 
 SECTION 3 
 ADMINISTRATION 
 3.1 Administration. This Plan shall be administered, in the discretion of the Board from time to time, by
the Board or by the Committee acting as the Administrator. The Committee shall be appointed by the Board, in a manner consistent with the 

  

 -3- 

 
Company’s By-laws, and shall consist of two (2) or more members, each of whom is an outside director (within the meaning of Code
Section 162(m) and the Treasury Regulations thereunder) as well as a non-employee director (within the meaning of Rule 16(b)-3 under the Exchange Act, as amended). The Board may from time to time remove members from, or add members to, the
Committee. The Board shall fill vacancies on the Committee however caused. The Board may appoint one (1) of the members of the Committee as Chairman. The Administrator shall hold meetings at such times and places as it may determine. Acts of a
majority of the Administrator at which a quorum is present, or acts reduced to or approved in writing by the unanimous consent of the members of the Administrator, shall be the valid acts of the Administrator. Additionally, and notwithstanding
anything to the contrary contained in this Plan, the Board or Committee may delegate to a Special Committee the authority to grant Options and to specify the terms and conditions thereof to certain eligible persons who are not subject to the
requirements of Section 16 of the Exchange Act, in accordance with guidelines approved by the Board or Committee. 
 3.2 Duties.
The Administrator shall from time to time at its discretion determine the individuals who are to be granted Options, the terms of any Options, and the number of Shares to be subject to Options to be granted to each Participant. The interpretation
and construction by the Administrator of any provisions of this Plan or of any Option granted thereunder shall be final. Moreover, the Administrator shall at any time be entitled to modify the vesting terms for Options, the timing rules for exercise
of Options, and any other provisions relating to the Options (to the extent the modification would be allowable under this Plan for a new Option), provided that the Participant shall so consent to any modification adverse to the Participant’s
interests. No member of the Administrator shall be liable for any action or determination made in good faith with respect to this Plan or any Option granted hereunder. 
 SECTION 4 
 PARTICIPATION 
 4.1 Eligibility. The Administrator may from time to time grant Options to such persons (collectively, “Participants”; individually a “Participant”), solely in connection with the hiring as
an Employee or appointment as a Director, as the Administrator may select from among the following classes of persons: 
  

	 	(a)	Newly hired Employees of the Company; 

  

	 	(b)	Newly hired Employees of any other Employer Company; and 

  

	 	(c)	Any newly appointed Directors. 

  

 -4- 

 SECTION 5 
 SHARES SUBJECT TO PLAN 
 5.1 Shares Available for Options. Subject to adjustment pursuant to the
provisions of Section 5.2 hereof, the total number of Shares, which may be issued pursuant to all Options, shall not exceed 2,000,000 Shares. Such Shares may be either authorized and unissued Shares or issued Shares which have been reacquired
by the Company. If any Option shall expire or terminate for any reason without having been exercised in full, new Options may be granted covering Shares originally set aside for the unexercised portion of such expired or terminated Option.

 5.2 Adjustments. 
 (a) Stock Splits and Dividends. Subject to any required action by the Board, the number of Shares covered by this Plan as provided in Section 5.1 hereof, the number of Shares covered by each outstanding
Option and the Option Price thereof shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a recapitalization, reclassification, subdivision or consolidation of Shares or the payment of a stock
dividend (but only if paid in Shares), a stock split or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company. 
 (b) Mergers. Subject to any required action by the Board and/or stockholders, if the Company shall merge with another corporation
and the Company is the surviving corporation in such merger and under the terms of such merger the Shares outstanding immediately prior to the merger remain outstanding and unchanged, each outstanding Option shall continue to apply to the Shares
subject thereto and shall also pertain and apply to any additional securities and other property, if any, to which a holder of the number of Shares subject to the Option would have been entitled as a result of the merger. 
 (c) Adjustment Determination. To the extent that the foregoing adjustments relate to securities of the Company, such adjustments
shall be made by the Administrator, whose determination shall be conclusive and binding on all persons. In computing any adjustment under this Section 5.2, any fractional Share which might otherwise become subject to an Option shall be
eliminated. 
 (d) Special Dividends. Subject to any required action by the Board, the Administrator shall be entitled
to determine whether any adjustment shall be made with respect to the number of Shares covered by this Plan as provided in Section 5.1 hereof, the number of Shares covered by each outstanding Option and the Option Price for Options if the
Company pays a special or extraordinary dividend. 
  

 -5- 

 SECTION 6 
 OPTIONS 
 6.1 Option Grant and Agreement. 
 (a) The Administrator may from time to time, subject to the terms of this Plan, grant to any Participant one or more Options; provided,
however, that the Special Committee may from time to time grant Options to eligible persons not described in Section 16 of the Exchange Act or serving on the Special Committee. Each Option grant shall be evidenced by a written Option Agreement,
dated as of the date of grant and executed by the Company and the Participant, which Option Agreement shall set forth the number of Options granted, the Option Price, the Option Term and such other terms and conditions as may be determined
appropriate by the Administrator (or the Special Committee), including any performance criteria, provided that such terms and conditions are not inconsistent with this Plan. The Option Agreement shall incorporate this Plan by reference and provide
that any inconsistencies or disputes shall be resolved in favor of this Plan language. 
 (b) Options shall be granted by the
Administrator selectively among the Participants and the terms and provisions of such grants and the agreements evidencing the same (including, without limitation, the form, the amount, the timing, the terms for any purchase, the exercisability and
vesting schedule of such grants) need not be uniform, whether or not the Participants are similarly situated. 
 6.2 Conditions With
Respect to Options. Each Option shall be subject to the following conditions: 
 (a) At the time of grant, the
Administrator may, in its discretion, place additional restrictions on Options requiring that the Option will vest only if and when, or on an accelerated basis if and when, the Common Stock price exceeds a specific amount. 
 (b) At the time of grant, the Administrator may, in its discretion, require that on the exercise of such a grant an Employee will purchase
Shares that will be forfeited if the Participant terminates employment within a certain number of years. Additional transferability restrictions may be imposed in connection with Options. 
 (c) In no event may any Option become exercisable later than the date preceding the tenth anniversary date of the grant thereof.

 6.3 Option Price. The Option Price shall be determined by the Administrator (or the Special Committee), subject to any limitations
imposed by this Plan and, in any 

  

 -6- 

 
event, shall not be less than one hundred percent (100%) of the Fair Market Value of Shares on the date of the grant determined in compliance with
Section 405A of the Code and the regulations thereunder. 
 6.4 Limitations on Exercise of Options. Notwithstanding anything
contained in this Plan to the contrary, Options shall be exercisable in full or in such equal or unequal installments as the Administrator shall determine; provided that if a Participant does not purchase all of the Shares which the Participant is
entitled to purchase on a certain date or within an established installment period, the Participant’s right to purchase any unpurchased Shares shall continue during the Option Term (taking into account any early termination of such Option Term
which may be provided for under this Plan); provided, further that a Participant who is not an officer, director or consultant shall have the right to exercise at least 20% of the Options granted per year over five (5) years from the grant
date. 
 6.5 Method of Exercising Options. 
 (a) Options shall be exercised by a written notice, delivered to the Company at its principal office located at 18872 MacArthur Blvd.,
Irvine, California, 92612-1400, Attn: Legal Department or such other address that may be designated by the Company, specifying the number of Shares to be purchased and tendering payment in full for such Shares. Payment may be tendered in cash or by
certified, bank cashier’s or teller’s check or by Shares (valued at Fair Market Value as of the date of tender) that the Participant has owned for at least six months, or some combination of the foregoing or such other form of
consideration which has been approved by the Administrator, including any cashless exercise mechanism approved by the Administrator. The right to deliver in full or partial payment of such Option Price any consideration other than cash shall be
limited to such frequency as the Administrator shall determine in its sole discretion from time to time. In the event all or part of the Option Price is paid in Shares, any excess of the value of such Shares over the Option Price will be returned to
the Participant as follows: 
 (i) any whole Share remaining in excess of the Option Price will be returned in kind, and may
be represented by one or more share certificates; and 
 (ii) any partial Shares remaining in excess of the Option Price will
be returned in cash. 
 (b) In the event a Participant pays all or part of the Option Price in Shares, the Administrator shall
be entitled as it deems appropriate but solely in its discretion, to award to the Participant additional Options equal to the number of Shares tendered to exercise, provided such Option has an Option Price equal to Fair Market Value. 
  

 -7- 

 6.6 Buyout Provisions. Subject to stockholder approval for a broad-based offer and to any other
approval requirements that may apply (in either case, as determined by the Administrator in its sole discretion), the Administrator may at any time offer to buy out an Option, in exchange for a payment in cash or Shares, based on such terms and
conditions as the Administrator shall establish and communicate to the Participant at the time that such offer is made. In addition, subject to stockholder approval for a broad-based offer and to any other approval requirements that may apply (in
either case, as determined by the Administrator in its sole discretion) if the Fair Market Value for Shares subject to an Option is more than 50% below their Option Price for more than 30 consecutive business days, the Administrator may unilaterally
terminate and cancel the Option either (i) by paying the Participant, in cash or Shares, an amount not less than the Black-Scholes value of the vested portion of the Option, or (ii) by irrevocably committing to grant a new Option, on a
designated date more than six months after such termination and cancellation of such Option (but only if the Participant’s service as an Employee has not terminated prior to such designated date), on substantially the same terms as the
cancelled Option, provided that the per Share Option Price for the new Option shall equal the per Share Fair Market Value of a Share on the date the new grant occurs. 
 6.7 Option Term. The Option Term shall be determined by the Administrator at the time of grant, subject to any limitations imposed by this Plan, but in any event shall not be more than ten years from the date
such Option is granted. Options may be subject to earlier termination as provided in this Plan. 
 6.8 Non-Transferability.

 (a) General. Except as set forth in Section 6.8(c) below, Options may not be sold, pledged, assigned,
hypothecated, transferred, or otherwise encumbered or disposed of other than by will or by the laws of descent or distribution, and except as specifically provided in this Plan or the applicable Option Agreement. During a Participant’s
lifetime, an Option shall only be exercisable by the Participant. Furthermore, unless the Option Agreement provides otherwise, additional Shares or other property distributed to the Participant in respect of Shares, as dividends or otherwise, shall
be subject to the same restrictions applicable to such Option grant. 
 (b) Special Rule for Beneficiaries. The
designation of a beneficiary by a Participant will not constitute a transfer. In the absence of a validly designated beneficiary, a Participant’s beneficiary shall be his or her estate. 
 (c) Limited Transferability Rights. To the extent specifically authorized by the Administrator in an Option Agreement or amendment
thereto, any Participant may transfer Options either by gift to immediate family, or by instrument to an inter vivos or testamentary trust in which the Options are to be passed, upon the death of the grantor, to beneficiaries who are immediate
family 

  

 -8- 

 
(or otherwise approved by the Administrator). A permitted transfer of an Option (including but not limited to a transfer by will or by the laws of descent
and distribution) shall not be effective to bind the Company unless the Company shall have been furnished with written notice thereof and an authenticated copy of such evidence (e.g., an executed will or trust) as the Administrator may deem
necessary to establish the validity of the transfer and the acceptance by the transferee of the terms and conditions of such Option grant. 
 6.9 Withholding Tax. 
 (a) In the event the Company determines that it is required to withhold employment or
income tax in connection with an Option (for instance, as a result of the exercise of an Option as a condition for the exercise thereof), the Participant may be required to make arrangements satisfactory to the Company to enable it to satisfy such
withholding requirements. Payment of such withholding requirements may be made, in the discretion of the Administrator, (i) in cash, (ii) by delivery of Shares registered in the name of the Participant having a Fair Market Value at the
time the Participant becomes subject to income tax equal to the amount to be withheld and that have been held by the Participant for more than six months, (iii) by the Company retaining or not issuing such number of Shares subject to the Option
as have a Fair Market Value at the time the Participant becomes subject to income tax equal to the amount to be withheld or (iv) any combination of (i), (ii) and (iii) above. 
 (b) The Administrator shall be entitled as it deems appropriate to make available for issuance under this Plan Shares tendered by a
Participant as payment of the price for any Shares used to satisfy the Company’s withholding requirements. 
 6.10 Rights in the
Event of Sale, Merger or Other Reorganization. Except as expressly provided in Section 5.2 and this Section, the Participant shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of
any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation, merger or consolidation or spin-off of assets or stock of another corporation, and any issue by the
Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price (if applicable) of Shares subject to an
Option. The grant of an Option pursuant to this Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to
dissolve, liquidate, sell or transfer all or any part of its business or assets. In any such event: 
 (a) Unless otherwise
provided in the Option Agreement for any given Option, notwithstanding anything in the Plan to the contrary, upon any such 

  

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merger (other than a merger in which the Company is the surviving corporation as described in Section 5.2(b) and under the terms of which the shares of
Common Stock outstanding immediately prior to the merger remain outstanding and unchanged), consolidation, or sale or transfer of assets, all rights of the Participant with respect to the unexercised portion of any Option shall become immediately
vested and may be exercised immediately, except to the extent that any agreement or undertaking of any party to any such merger, consolidation, or sale or transfer of assets, shall make specific provision for the assumption of the obligations of the
Company with respect to this Plan and the rights of Participants with respect to Options granted hereunder. 
 (b) Unless
otherwise provided in the Option Agreement for any given Option, upon any such liquidation or dissolution, all rights of the Participant with respect to the unvested portion of any Option shall wholly and completely terminate and all Options shall
be canceled at the time of any such liquidation or dissolution, except to the extent that any plan pursuant to which such liquidation or dissolution is effected, shall make specific provision with respect to this Plan and the rights of Participants
with respect to Options granted hereunder. 
 (c) If provided for in the Option Agreement, any employment agreement or other
arrangement between the Participant and the Company that specifically covers any Option granted hereunder, upon a change in control, (i) all rights of the Participant with respect to the unexercised portion of any Option shall fully vest and
become exercisable as provided in such Option Agreement, employment agreement or other arrangement upon the effective date of any such change in control, (ii) the Company will honor any special distribution election that the Participant makes
more than 90 days before the change in control, provided the distribution form is complete within five years thereafter, and (iii) the Company shall pay the Participant an amount reasonably expected to hold the Participant harmless from any
excise taxes imposed on the Participant under Section 4999 of the Code, applicable regulations, or any successor thereto. 
 Notwithstanding the foregoing, the holder of any such Option or right theretofore granted and still outstanding shall have the right immediately prior to the effective date of such merger, consolidation, sale or transfer of assets,
liquidation or dissolution to pay the purchase or exercise price, if any, for such Option in whole or in part without regard to any installment provision that may have been made part of the terms and conditions of such Option or right; provided,
that any conditions precedent to such purchase set forth in the Option Agreement have occurred or been waived. In no event, however, may any Option that becomes exercisable pursuant to this Section 6.10 be exercised, in whole or in part, later
than the date preceding the tenth anniversary date of the grant thereof. 
  

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 6.11 Option Rights in the Event of Death, Total and Permanent Disability, or Termination.

 (a) Rights in the Event of Death. Unless otherwise provided in the Option Agreement for any given Option, if a
Participant’s employment or business relationship with or service to the Employer Company or service as a member of the Board is terminated on account of death, the person or persons who shall have acquired the right, by will or the laws of
descent and distribution, to exercise the Participant’s Options shall continue to have (subject to Sections 6.2 and 6.4 above) the right, for a period of at least six (6) months from the date of termination by death or such longer period
(if any) as may be specified in the applicable Option Agreement, to exercise any Options which such Participant would have been entitled to exercise on the Participant’s death. At the expiration of such period any such Options which remain
unexercised shall expire. Unless the Administrator provides otherwise in the Option Agreement, any Options that could not have been exercised by a Participant as of the Participant’s death may not be exercised. 
 (b) Rights in the Event of Total and Permanent Disability. Unless otherwise provided in the Option Agreement for any given Option,
if a Participant’s employment or business relationship with or service to the Employer Company or service as a member of the Board is terminated on account of Total and Permanent Disability, the Participant shall have (subject to Sections 6.2
and 6.4 above) the right, for a period of at least six (6) months from the date of termination by disability or such longer period (if any) as may be specified in the applicable Option Agreement, to exercise any Options which such Participant
would have been entitled to exercise on the date of such Participant’s Total and Permanent Disability. At the expiration of such period any such Options which remain unexercised shall expire. Unless the Administrator provides otherwise in the
Option Agreement, any Options that could not have been exercised by a Participant on the date of such Participant’s Total and Permanent Disability may not be exercised. 
 (c) Rights in the Event of Termination of Employment or Service. Unless otherwise provided in the Option Agreement for any given
Option, in the event that a Participant’s employment or business relationship with or service to the Employer Company or service as a member of the Board terminates, other than by reason of death or Total and Permanent Disability and other than
due to termination for “Cause,” the Participant shall have (subject to Sections 6.2 and 6.4 above) the right, for a period of at least thirty (30) days from the date of such termination or such longer period (if any) as may be
specified in the applicable Option Agreement, to exercise any Options which such Participant would have been entitled to exercise on the date of such Participant’s termination. At the expiration of such period any such Options which remain
unexercised shall 

  

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expire. Unless the Administrator provides otherwise in the Option Agreement any Options that could not have been exercised by a Participant on the date of
such Participant’s termination of employment or service as a member of the Board or business relationship may not be exercised. Notwithstanding the foregoing, if the employment or service of or business relationship with a Participant is
terminated for “Cause” by the Employer Company, the Company may notify the Participant that any Options not exercised prior to the termination are cancelled. For purposes hereof and unless the Administrator provides otherwise in the Option
Agreement, a termination of service or business relationship for “Cause” shall include dismissal as a result of (1) Participant’s conviction of any crime or offense involving money or other property of the Company or its
subsidiaries or which constitutes a felony in the jurisdiction involved; (2) Participant’s gross negligence, gross incompetence or willful gross misconduct in the performance of his or her duties; or (3) Participant’s willful and
material failure or refusal to perform his or her duties. 
 SECTION 7 
 SHARES ISSUED PURSUANT TO AN OPTION 
 7.1 Issuance of Certificates. The Company
shall not be required to issue or deliver any certificate for Shares purchased upon the exercise of any Option, or any portion thereof, prior to fulfillment of all of the following applicable conditions: 
 (a) The admission of such Shares to listing on all stock exchanges or markets on which the Shares are then listed to the extent such
admission is necessary; 
 (b) The completion of any registration or other qualification of such Shares under any federal or
state securities laws or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, which the Board shall in its sole discretion deem necessary or advisable, or the determination by the
Board in its sole discretion that no such registration or qualification is required; 
 (c) The obtaining of any approval or
other clearance from any federal or state governmental agency which the Board shall, in its sole discretion, determine to be necessary or advisable; and 
 (d) The lapse of such reasonable period of time following the exercise of the Option as the Board or Committee from time to time may establish for reasons of administrative convenience. 
  

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 7.2 Compliance with Securities and Other Laws. In no event shall the Company be required to sell,
issue or deliver Shares pursuant to Options if in the opinion of the Company the issuance thereof would constitute a violation by either the Participant or the Company of any provision of any law or regulation of any governmental authority or any
securities exchange or market. As a condition of any sale or issuance of Shares pursuant to Options, the Company may place legends on the Shares, issue stop-transfer orders and require such agreements or undertakings from the Participant as the
Company may deem necessary or advisable to assure compliance with any such law or regulation, including if the Company or its counsel deems it appropriate, representations from the Participant that the Participant is acquiring the Shares solely for
investment and not with a view to distribution and that no distribution of the Shares acquired by the Participant will be made unless registered pursuant to applicable federal and state securities laws or unless, in the opinion of counsel to the
Company, such registration is unnecessary. 
 SECTION 8 
 TERMINATION, AMENDMENT AND MODIFICATION OF PLAN 
 8.1 Board Termination, Amendment and Modification of
Plan. The Board may at any time amend or modify this Plan; provided, however, that no such action of the Board shall take effect without approval of the stockholders of the Company to the extent such approval is required by applicable law or
determined by the Board to be necessary or desirable for any reason (including but not limited to the satisfaction of listing requirements on a stock exchange). Notwithstanding anything to the contrary, the Board shall be entitled to adjust the
Option Price with respect to any outstanding Option at any time provided that the Participant shall so consent. 
 8.2 Plan
Termination. Unless terminated earlier as provided in Section 8.2, this Plan shall terminate ten (10) years from the date this Plan is adopted by the Board and no Option shall be granted under this Plan after such expiration date.
Termination of this Plan shall not alter or impair any of the rights or obligations under any Option theretofore granted under this Plan unless the Participant shall so consent. 
 8.3 Effect of Termination, Amendment or Modification of Plan. Notwithstanding Sections 8.1 and 8.2, no termination, amendment or modification of
this Plan shall in any manner affect any Option theretofore granted under this Plan without the written consent of the Participant or a person who shall have acquired the right to the Option by will or the laws of descent and distribution.

  

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 SECTION 9 
 MISCELLANEOUS 
 9.1 Non-Assignability of Options. No Option shall be assignable or transferable by
the Participant, except pursuant to Section 6.8. 
 9.2 Leaves of Absence. Unless the Administrator determines otherwise, the
vesting of an Option granted under this Plan shall not be tolled during any unpaid leave of absence taken by a Participant. 
 9.3 No
Rights to Employment or Provide Service. Nothing in this Plan or in any Option granted hereunder or in any Option Agreement relating thereto shall confer upon any individual the right to continue employment with or to provide service to the
Employer Company or service as a member of the Board. 
 9.4 Purchase Offer. The Administrator may offer to purchase, for cash or
Shares, any Option granted hereunder and such offer to purchase any Option shall be on such terms and conditions as the Administrator establishes and communicates to the Participant at the time the offer is extended to the Participant. 

9.5 Binding Effect. This Plan shall be binding upon the successors and assigns of the Company. 
 9.6 Singular, Plural, Gender. Whenever used herein, except where the context clearly indicates to the contrary, nouns in the singular shall
include the plural, and the masculine pronoun shall include the feminine gender. 
 9.7 Headings. Headings of the Sections hereof are
inserted for convenience and reference and constitute no part of this Plan. 
 9.8 Effective Date. The terms of this Plan shall become
effective on the date this Plan is adopted and approved by the Board. 
 9.9 Rights as Stockholder. Any Participant or transferee of
an Option shall have no rights as a stockholder with respect to any Shares subject to such Option prior to the purchase of such Shares by exercise of such Option as provided herein. 
 9.10 Applicable Law. This Plan and the Options granted hereunder shall be interpreted, administered and otherwise subject to the laws of the State
of Delaware, without giving effect to the principles of conflict of laws thereof. 
 9.11 Reports. The Company will comply with all
applicable reporting and tax requirements applicable to Options under the Code. 
  

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