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                                                                   Exhibit 10(c)

                        Amendment to Employment Agreement

Amendment made as of this 26th day of February 2004 to the Employment Agreement
dated as of February 2, 1999 (the "Employment Agreement") by and between Florida
East Coast Industries, Inc. ("FECI"), a Florida corporation and ________________
________ (the "Executive").

Witneseth

Whereas FECI and the Executive have previously entered into the Employment
Agreement; and

Whereas FECI and the Executive desire to amend the Employment Agreement

Now, Therefore, the parties hereto agree that the Employment Agreement to be
amended effective as of February 26, 2004, as follows:

         1. Section 4 of the Employment Agreement is hereby amended as follows:

                  a) Section 4.b (ii) is deleted in its entirety and replaced
         with the following provision:

                  FECI shall pay to the Executive in forty-eight (48)
                  semi-monthly installments beginning 15 days following the Date
                  of Termination an amount equal to twice the sum of the
                  Executive's Annual Base Salary and the annual incentive bonus
                  at target as set forth in Section 2(b)(ii) hereof.

         2. Except as expressly set forth herein, all other provisions of the
Employment Agreement shall remain in full force and effect.

In witness whereof, the parties hereto have executed this amended Employment
Agreement as of the day and year first written above.

                                           COMPANY:

                                           FLORIDA EAST COAST INDUSTRIES, INC.

                                           By
                                               -------------------------------

                                           EXECUTIVE:

                                           By
                                               -------------------------------Ex-4.2

 

Exhibit 4.2

SOUTHERN COMMUNITY FINANCIAL CORPORATION

2001 STOCK OPTION PLAN FOR DIRECTORS

(former COMMUNITY BANK STOCK OPTION PLAN)

     Southern Community Financial Corporation, a North Carolina corporation
(the “Corporation”), does herein set forth the terms of its 2001 Stock Option
Plan for Directors (the “Plan”), which was assumed as a result of the
acquisition of The Community Bank.

     1.     PURPOSE. The purpose of this Plan is to provide for the grant of
Nonstatutory Stock Options (the “Options” or singularly, “Option”) to corporate
and advisory directors of the Corporation and its subsidiaries (“Eligible
Individuals”) who wish to invest in the Corporation’s common stock, no par
value (the “Common Stock”). The Board believes the existence of this Plan will
aid the Corporation and any Subsidiary in attracting and retaining capable
directors and to provide a long range incentive for directors of the
Corporation to remain active with the Corporation or any Subsidiary, to perform
at increasing levels of effectiveness, and to acquire a permanent stake in the
Corporation with the interest and outlook of an owner. These objectives will
be promoted through the granting of options to acquire shares of Common Stock
pursuant to the terms of this Plan.

     2.     ADMINISTRATION. (a) This Plan shall be administered by the Board of
Directors of the Corporation (the “Board”). The Board shall have full power
and authority to construe, interpret and administer this Plan. All actions,
decisions, determinations, or interpretations of the Board shall be final,
conclusive, and binding upon all parties.

     (b)  The Board may designate any officers or employees of the Corporation
to assist in the administration of this Plan. The Board may authorize such
individuals to execute documents on its behalf and may delegate to them such
other ministerial and limited discretionary duties as the Board may see fit.

     3.     STOCK AVAILABLE FOR OPTIONS. The total number of shares of Common Stock
for which options may be granted under the Plan is Ninety Seven Thousand Four
Hundred and Twenty Eight (97,428) shares. Such number of shares is subject to
any capital adjustments as provided in Section 14. In the event that an option
granted under the Plan is forfeited, expires or is terminated unexercised as to
any shares covered thereby, such shares thereafter shall be available for the
granting of options under the Plan; however, if the forfeiture, expiration or
termination date of an option is beyond the term of existence of the Plan as
described in Section 20, then any shares covered by forfeited, unexercised or
terminated options shall not reactivate the existence of the Plan and therefore
may not be available for additional grants under the Plan. The Corporation,
during the term of the Plan, will reserve and keep available a number of shares
of Common Stock sufficient to satisfy the requirements of the Plan.

     4.     ELIGIBILITY. Options under this Plan may be granted to any corporate or
advisory director as determined by the Board. An individual may hold more than
one Option under this or other plans adopted by the Corporation.

     5.     PAYMENT OF OPTION PRICE. Payment for shares subject to an Option may
be made either in cash or, with the approval of the Board, in other stock of
the Corporation owned by the person to whom such Option was granted or such
other person as may be entitled to exercise such Option (the “Optionee”). Any
shares of the Corporation’s stock that are delivered in payment of the
aggregate Option Price shall be valued at their fair market value, as
determined by the Board, on the date of the exercise of such Option.

 

 

     6.     OPTION PRICE. (a) The price per share of each Option granted under
this Plan (the “Option Price”) shall be determined by the Board as of the
effective date of grant of such Option. In no event shall such Option Price be
less than 100% of the fair market value of the Common Stock on the date of the
grant. An Option shall be considered as granted on the later of (i) the date
the Board acts to grant such Option, or (ii) such later date as the Board shall
specify in an Option Agreement (as hereinafter defined).

     (b)  The fair market value of a share of Common Stock shall be determined
as follows:

          (i)  If on the date as of which such determination is being made, the
Common Stock is admitted to trading on a securities exchange or exchanges for
which actual sale prices are regularly reported, or actual sale prices are
otherwise regularly published, the fair market value of a share of the Common
Stock shall be deemed to be equal to the mean of the closing sale price as
reported for each of the five (5) trading days immediately preceding the date
as of which such determination is made; provided, however, that, if a closing
sale price is not reported for each of the five (5) trading days immediately
preceding the date as of which such determination is made, then the fair market
value shall be equal to the mean of the closing sale prices on those trading
days for which such price is available.

          (ii)  If on the date as of which such determination is made, quotations for
the Common Stock are regularly listed on the National Association of Securities
Dealers Nasdaq system or another comparable system, the fair market value of a
share of Common Stock shall be deemed to be equal to the mean of the average of
the closing bid and asked prices for the Common Stock quoted on such system on
each of the five (5) trading days preceding the date as of which such
determination is made. If a closing bid and asked price is not available for
each of the five (5) trading days, then the fair market value shall be equal to
the mean of the average of the closing bid and asked prices on those trading
days during the five-day period for which such prices are available.

          (iii)  If no such quotations are available, the fair market value of a
share of Common Stock shall be deemed to be the average of the closing bid and
asked prices furnished by a professional securities dealer making a market in
such shares, as selected by the Board, for the trading date first preceding the
date as of which such determination is made.

     If the Board determines that the price as determined above does not
represent the fair market value of a share of Common Stock, the Board may then
consider such other factors as it deems appropriate and then fix the fair
market value for the purposes of this Plan.

     7.     EXPIRATION OF OPTIONS. The Board shall determine the expiration date or
dates of each option, but such expiration date shall be not later than ten (10)
years after the date such option is granted. The Board, in its discretion, may
extend the expiration date or dates of an option after such date was originally
set; however, such expiration date may not exceed the maximum expiration date
described in this Section 7.

     8.     TERMS AND CONDITIONS OF OPTIONS. (a) Each Option granted pursuant to
this Plan shall be evidenced by a written stock option agreement (the “Option
Agreement”) with each Eligible Employee to whom an Option is granted. The
Option Agreement shall be in such form as the Board shall adopt and may contain
such terms and conditions as the Board may determine.

     (b)  During the Option Period, the recipient of an Option shall have no
rights or privileges as a shareholder with respect to any shares covered by the
Option until payment is made in full by him or her for the shares being
purchased. No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distributions
or other rights for which the record date is prior to the date such stock is
fully paid for, except as provided in Section 14.

 

 

     (c)  The granting of an Option shall impose no obligation upon the Optionee
to exercise such Option.

     9.     EXERCISE OF OPTIONS. (a) Each Option Agreement shall set forth a
period during which such Option may be exercised (the “Option Period”);
provided, however, that the Option Period shall not exceed ten (10) years after
the date of grant of such Option.

     (b)  All options granted under the Plan shall be exercisable in accordance
with such vesting requirements that may be set forth in the Option Agreement.

     (c)  An Option shall be exercised by written notice to the Corporation
signed by an Optionee or by such other person as may be entitled to exercise
such Option. The written notice shall state the number of shares with respect
to which an Option is being exercised and shall either be accompanied by the
payment of the aggregate Option Price for such shares or shall fix a date (not
more than ten (10) business days from the date of such notice) by which the
payment of the aggregate Option Price will be made. An Optionee shall not
exercise an Option to purchase less than one hundred (100) shares, unless the
Board otherwise approves, or unless the partial exercise is for the remaining
shares available under such Option.

     (d)  A certificate or certificates for the shares of Common Stock purchased
by the exercise of an Option shall be issued in the regular course of business
subsequent to the exercise of such Option and the payment therefore.

     10.     TERMINATION OF EMPLOYMENT — EXCEPT BY DISABILITY, RETIREMENT OR DEATH.
If any optionee ceases to be a director of at least one of the Corporation and
any Subsidiary for any reason other than death, retirement (as defined in
Section 11) or disability (as defined in Section 11), any options or portions
of options not exercised prior to the date the optionee ceases to be a director
shall terminate and be forfeited.

     11.     TERMINATION OF EMPLOYMENT — DISABILITY OR RETIREMENT. (a) In the event
of an Optionee’s disability, such Optionee shall have the right to exercise an
Option granted under this Plan, to the extent that it has not previously been
exercised or surrendered by the Optionee or expired, for such period of time as
may be determined by the Board and specified in the Option Agreement, but in no
event may any Option be exercised later than the end of the Option Period
provided in the Option Agreement. Notwithstanding any other provision
contained this Plan, or in any Option Agreement, upon an Optionee’s disability,
any Option then held by the Optionee shall be exercisable immediately in full.
For purposes of this Plan, the term “disability” shall be defined as may be
determined by the Board.

     (b)  In the event of an Optionee’s retirement, such Optionee shall have
the right to exercise an Option granted under this Plan, to the extent that it
has not previously been exercised or surrendered by the Optionee or expired,
for such period of time as may be determined by the Board and specified in the
Option Agreement, but in no event may any Option be exercised later than the
end of the Option Period provided in the Option Agreement. Notwithstanding any
other provision contained this Plan, or in any Option Agreement, upon
retirement, any Option then held by an Optionee shall be exercisable
immediately in full. For purposes of this Plan, the term “retirement” for a
Director shall mean termination of a Director’s membership on the Board (i) at
any time after attaining age 65 with the approval of the Board; or (ii) at the
election of the Director, at any time after not less than five (5) years
service as a member of the Board.

     12.     TERMINATION OF EMPLOYMENT — DEATH. In the event that an Optionee
should die while serving on the Board or as an employee during the Option
Period, an Option granted under this Plan, to the extent that it has not
previously been exercised or surrendered by the Optionee or expired, shall vest
and shall be exercisable, in accordance with the terms of the Option Agreement,
by the personal representative of such Optionee, the executor or

 

 

administrator of such Optionee’s estate, or by any person or persons who
acquired such Option by bequest or inheritance from such optionee,
notwithstanding any limitations placed on the exercise of such Option by this
Plan or the Option Agreement, at any time within twelve (12) months after the
date of death of such Optionee. In no event may an Option be exercised later
than the end of the Option Period provided in the Option Agreement. Any
references herein to an Optionee shall be deemed to include any person entitled
to exercise an Option after the death of such Optionee under the terms of this
Plan.

     13.     RESTRICTIONS ON TRANSFER. An option granted under this Plan may not be
transferred except by will or the laws of descent and distribution and, during
the lifetime of the optionee to whom it was granted, may be exercised only by
such optionee. In the event of the death of an Optionee, the personal
representative, the executor or the administrator of such Optionee’s estate, or
the person or persons who acquired by bequest or inheritance the rights to
exercise such Option, may exercise or surrender any Option or portion thereof
to the extent not previously exercised or surrendered by an Optionee or
expired, in accordance with the terms of the Option Agreement.

     14.     CAPITAL ADJUSTMENTS AFFECTING COMMON STOCK. (a) If the outstanding
shares of Common Stock of the Corporation are increased, decreased, changed
into or exchanged for a different number or kind of shares or other securities
of the Corporation or another entity as a result of a recapitalization,
reclassification, stock dividend, stock split, amendment to the Corporation’s
charter, reverse stock split, merger or consolidation, an appropriate
adjustment shall be made in the number and/or kind of securities allocated to
the options previously and subsequently granted under the Plan, without change
in the aggregate purchase price applicable to the unexercised portion of the
outstanding options but with a corresponding adjustment in the price for each
share or other unit of any security covered by the options. In the event this
Plan is assumed by the surviving corporation in the event of a merger,
consolidation, acquisition or reorganization, Optionees shall, upon request of
the Board, execute replacement Option Agreements reflecting such assumption and
adjustment.

     (b)  To the extent that the foregoing adjustments relate to particular
stock or securities of the Corporation subject to option under this Plan, such
adjustments shall be made by the Board, whose determination in that respect
shall be final and conclusive.

     (c)  The grant of an option pursuant to this Plan shall not affect in any
way the right or power of the Corporation to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge, consolidate, dissolve, or liquidate, sell or transfer
all or any part of its business or assets.

     (d)  No fractional shares of stock shall be issued under the Plan for any
such adjustment.

     15.     CHANGE IN CONTROL. (a) For purposes of this Plan, a “Change in
Control” shall mean (i) a change in control of a nature that would be required
to be reported in response to Item 1 of the Current Report on Form 8-K, as in
effect on the date hereof, pursuant to Section 13 or 15(d) of the Exchange Act;
(ii) such time as any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Corporation representing twenty percent (20%) or more of the combined
voting power of the outstanding Common Stock of the Corporation; (iii)
individuals who constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority thereof, provided that any person
becoming a director subsequent to the date hereof whose election was approved
by a vote of at least two-thirds of the directors comprising the Incumbent
Board, or whose nomination for election by the Corporation’s shareholders was
approved by the Board or Nominating Committee, shall be considered as though he
were a member of the Incumbent Board; (iv) the Corporation

 

 

consolidates or merges with or into another corporation, association or
entity or is otherwise reorganized, where the Corporation is not the surviving
corporation in such transaction; or (v) all or substantially all of the assets
of the Corporation are sold or otherwise transferred to or are acquired by any
other entity or group.

     (b)  In the event of such a Change in Control, unexercised and unexpired
options granted pursuant to this Plan which would otherwise be exercisable but
for the provisions of any vesting schedule set forth in the Option Agreement,
shall become immediately vested and exercisable by the holder thereof,
notwithstanding the vesting schedule set forth in the Option Agreement.

     16.     INVESTMENT PURPOSE. At the discretion of the Board, any Option
Agreement may provide that the optionee shall, by accepting the option,
represent and agree, for himself and his transferees by will or the laws of
descent and distribution, that all shares of stock purchased upon the exercise
of the option will be acquired for investment and not for resale or
distribution, and that upon each exercise of any portion of an option, the
person entitled to exercise the same shall furnish evidence of such facts which
is satisfactory to the Corporation. Certificates for shares of stock acquired
under the Plan may be issued bearing such restrictive legends as the
Corporation and its counsel may deem necessary to ensure that the optionee is
not an “underwriter” within the meaning of the regulations of the Securities
Exchange Commission.

     17.     EFFECT OF PLAN ON EMPLOYMENT STATUS. The fact that an Optionee has
been granted an Option under this Plan shall not confer on such Optionee any
right to continued service on any board of the Corporation or any of its
subsidiaries, nor shall it limit the right of the Corporation to remove such
Optionee from service with the Corporation or any of its subsidiaries at any
time.

     18.     LIMITED STOCK APPRECIATION RIGHTS. (a) In connection with the grant
of any Option under this Plan, the Board may, in its discretion, by written
notice provide an Optionee with the right (herein sometimes referred to as
“Limited Stock Appreciation Rights”), following a “Change in Control” of the
Corporation (as defined in Section 15) and without regard to any restrictions
on exercise that would otherwise apply, to surrender any unexercised portion of
such Option as such Optionee then may have for a cash payment equal to the
amount by which the fair market value (as determined by the Board) of the
number of shares of Common Stock then subject to such Option exceeds the
aggregate Option Price therefor.

     (b)  Limited Stock Appreciation Rights shall be exercised by written
notice to the Corporation as provided in Paragraph 11 hereof at any time prior
to the earlier of (i) the date which is thirty (30) days after the date of
notice of a change in control or (ii) the last day of the Option Period
provided in the Option Agreement, but in no event shall the expiration date be
more than ten (10) years after the date of grant of an Option as specified in
the Option Agreement.

     (c)  Limited Stock Appreciation Rights may be exercised only when the
aggregate market value of Common Stock subject to an Option exceeds the
aggregate Option Price.

     19.     TAX WITHHOLDING. The Corporation shall have the right to deduct or
otherwise effect a withholding or payment of any amount required by federal or
state laws to be withheld or paid with respect to the grant, exercise or
surrender for cash of any Option or the sale of stock acquired upon the
exercise of an Option in order for the Corporation or any of its subsidiaries
to obtain a tax deduction otherwise available as a consequence of such grant,
exercise, surrender for cash, or sale, as the case may be.

     20.     TERM OF PLAN. Options may be granted pursuant to this Plan from time
to time within ten (10) years after this Plan was adopted by the Board on
January 18, 2001.

 

 

     21.     LISTING AND REGISTRATION OF OPTION SHARES. Any Option granted under
the Plan shall be subject to the requirement that if at any time the Board
shall determine, in its sole discretion, that the listing, registration, or
qualification of the shares of Common Stock covered thereby upon any securities
exchange or under any state or federal law or the consent or approval of any
governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the granting of such Option or the issuance or purchase of
shares thereunder, such Option may not be exercised in whole or in part unless
and until such listing, registration, or qualification consent, or approval
shall have been effected or obtained free of any conditions not acceptable to
the Board.

     22.     AMENDMENT AND MODIFICATION OF THE PLAN. The Board may at any time and
from time to time amend or modify this Plan in any respect; provided, however,
that no amendment or modification shall be made that increases the total number
of shares covered by this Plan or effects any change in the categories of
persons who may receive Options under this Plan or materially increases the
benefits accruing to Optionees under this Plan unless such change is approved
by the holders of a majority of the shares of Common Stock. Any amendment or
modification of this Plan shall not materially reduce the benefits under any
Option theretofore granted to an Optionee under this Plan without the consent
of such Optionee or the permitted transferee thereof.

     23.     TERMINATION. This Plan may be abandoned, suspended, or terminated at
any time by the Board; provided, however, that abandonment, suspension, or
termination of this Plan shall not affect any Options then outstanding under
this Plan.

     24.     EXPENSES OF ADMINISTRATION OF PLAN. All costs and expenses incurred
in the operation and administration of this Plan shall be borne by the
Corporation.

     25.     CAPTIONS AND HEADINGS; GENDER AND NUMBER. Captions and paragraph
headings used herein are for convenience only, do not modify or affect the
meaning of any provision herein, are not a part of, and shall not serve as a
basis for interpretation or construction of, this Plan. As used herein, the
masculine gender shall include the feminine and neuter, and the singular number
shall include the plural, and vice versa, whenever such meanings are
appropriate.

     26.     EXCULPATION AND INDEMNIFICATION. In connection with this Plan, no
member of the Board and no member of the Board of Directors of any Subsidiary
shall be personally liable for any act or omission to act, nor for any mistake
in judgment made in good faith, unless arising out of, or resulting from, such
person’s own bad faith, willful misconduct or criminal acts. To the extent
permitted by applicable law and regulation, the Corporation shall indemnify,
defend and hold harmless the members of the Board, the members of the Board of
Directors of any Subsidiary, and each other officer or employee of the
Corporation or of any Subsidiary to whom any power or duty relating to the
administration or interpretation of this Plan may be assigned or delegated,
from and against any and all liabilities (including any amount paid in
settlement of a claim with the approval of the Board), and any reasonable costs
or expenses (including counsel fees) incurred by such persons arising out of or
as a result of, any act or omission to act, in connection with the performance
of such person’s duties, responsibilities and obligations under this Plan,
other than such liabilities, costs, and expenses as may arise out of, or result
from the bad faith, willful misconduct or criminal acts of such persons.

     27.     GOVERNING LAW. Without regard to the principles of conflicts of laws,
the laws

 

 

of the State of North Carolina shall govern and control the validity,
interpretation, performance, and enforcement of this Plan.

     28.     INSPECTION OF PLAN. A copy of this Plan, and any amendments thereto,
shall be maintained by the Secretary of the Corporation and shall be shown to
any proper person making inquiry about it.

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