Document:

Exhibit
10.32

    

    WAIVER
AGREEMENT AND ACKNOWLEDGEMENT

    

    This Waiver Agreement and
Acknowledgement (the “Waiver Agreement”) is executed as of December 5, 2008 by
and among Southern Community Financial Corporation (the “Corporation”), Southern
Community Bank and Trust (the “Bank”) and the undersigned officer (“Officer”)
and in consideration of the benefits to all parties derived by the execution of
that certain Letter Agreement (including the Schedules thereto), and a
Securities Purchase Agreement – Standard Terms (including the Annexes thereto),
dated December 5, 2008 (together referred to herein as the “Purchase Agreement”)
between the Corporation and the United States Department of the Treasury (the
“Investor”), the receipt and sufficiency of which are hereby acknowledged by all
parties, the parties agree as follows:

    

    1.           Pursuant
to the terms of the Purchase Agreement, the Corporation, Bank and Officer hereby
agree to amend any and all compensation, bonus, incentive and other benefit
plans, arrangements and agreements (including golden parachute, severance and
employment agreements) (collectively, the “Benefit Plans”) between the Officer
and the Corporation and/or the Bank in such manner as may be necessary and
determined in the good faith discretion of the Corporation, during the period
that the Investor owns any debt or equity securities of the Corporation acquired
pursuant to the Purchase Agreement or the Warrant, in order to comply with
Section 111(b) of the Emergency Economic Stabilization Act of 2008, as
implemented by guidance or regulation thereunder that has been issued and is in
effect as of the Closing Date.  Terms not otherwise defined herein
shall have the same meaning ascribed to them in the Purchase
Agreement.

    

    2.           Officer
acknowledges and agrees that by executing this Waiver Agreement, he waives all
of his right to the receipt and objection to any recovery of any compensation,
bonus, incentive or other benefits (including golden parachute or severance
payments) as may be necessary, during the period that the Investor owns any debt
or equity securities of the Corporation acquired pursuant to the Purchase
Agreement or the Warrant, in order for the Corporation to comply with Section
111(b) of the Emergency Economic Stabilization Act of 2008 as implemented by
guidance or regulation thereunder that has been issued and is in effect as of
the Closing Date.  All other terms of the Benefit Plans will remain in
full force and effect after the date of this Agreement.

    

    3.           This
Waiver Agreement constitutes the valid, legal and binding obligation of the
Corporation, the Bank and Officer enforceable against each of them in accordance
with its terms.  This Agreement shall inure to the benefit of and be
binding upon any corporate successor of the Corporation or the
Bank.  This Agreement shall be governed by and construed in accordance
with the laws of the State of North Carolina.

    

    IN
WITNESS WHEREOF, the undersigned has executed this Waiver Agreement as of the
date first above written.

    

    
      
        	
                OFFICER

              
	 
      
	
                Signature:

              	
                /s/ James C.
      Monroe, Jr.

              

      

    

    
      
        	
                Name:

              	
                James C. Monroe,
  Jr.

              

      

    

    
      
        
          
            
              	 
      
	
                      SOUTHERN
      COMMUNITY FINANCIAL CORPORATION

                    
	 
      
	
                      By:

                    	
                      /s/ Jeff T. Clark  

                    
	 
      	
                       Authorized
      Officer

                    
	 
      
	
                      SOUTHERN
      COMMUNITY BANK AND TRUST

                    
	 
      
	
                      By:

                    	
                      /s/ James
      Hastings

                    
	
                      Authorized
      OfficerExhibit
10.33

    

    AMENDMENT
NUMBER TWO TO

    EMPLOYMENT
AGREEMENT

    

    This
Amendment Number Two is made as of December 1, 2008, to the Employment Agreement
dated as of April 16, 2007 (the “Agreement”), by and between Southern Community
Bank and Trust and James C. Monroe (“Officer”).  This Amendment is
being made solely to conform the provisions of the Agreement to the requirements
of Section 409A of the Internal Revenue Code of 1986, as amended
(“Code”).

    

    1.  Paragraph
10(e) of the Agreement is amended to read as follows:

    “(e)           Such
amounts payable pursuant to this Paragraph 10 shall be paid in one lump sum
within sixty (60 days) following termination of this Agreement.”

    

    2.  The
Agreement is amended by adding the following Paragraphs 15 and 16:

    

    “15.           Delayed
Payments to Specified Employee of Publicly Traded Corporation.  If the
Officer qualifies as a "specified employee" within the meaning of Treasury
Regulation 1.409A-1(i) and if the Company determines that any benefit paid to
the Officer hereunder is deferred compensation as defined by Section 409A of the
Code, then notwithstanding anything herein to the contrary, the Company shall,
to the extent necessary to avoid the imposition of additional income taxes or
penalties or interest on the Officer under Section 409A of the Code, accumulate
any payments of such benefit due hereunder and pay such benefit to the Officer
in a lump-sum payment on the first day of the seventh month following the date
of the Officer’s termination of employment.

    

    16.           Compliance
with Code Section 409A; No Deferral of Compensation.  In
interpreting,  construing  or applying any provisions of the
Agreement,  the  same  shall  be
construed in such manner as shall comply with the terms of Section 409A of the
Code, and in the event of
any  inconsistency  with  the terms of
Section  409A of the Code,  the  Corporation shall
reform the violating provision so  as  to  meet
such terms.  All payments of compensation due to Officer for the
performance of services pursuant to this Agreement, other than those provided
for under Section 10 above, shall be paid to Officer no later than two and
one-half months following the year in which the Officer performed such services
or, if later, the year in which the Officer attained a vested right to the
payment.”

    

    3.  No
other terms and conditions of the Agreement are affected by this
Amendment.

    

    IN WITNESS WHEREOF, the
parties have executed this Amendment (Southern Community Bank and Trust by its
duly authorized officer) effective as of the day and year first written
above.

     

    
      
        
          
            
              
                	
                        SOUTHERN
      COMMUNITY BANK AND TRUST

                      
	 
      
	
                        By:

                      	
                        /s/ Jeff T.
      Clark

                      
	 
      	
                        Jeff
      T. Clark, President

                      
	 
      

              

            

          

        

      

      
        
          
            
              	
                      OFFICER

                    
	 
      
	
                        /s/ James C. Monroe,
      Jr.

                    	
                      (SEAL)

                    
	
                      James
      C. MonroeExhibit
10.34

    

    AMENDMENT
NUMBER ONE TO

    SALARY
CONTINUATION AGREEMENT

    

    This
Amendment Number One is made as of December 30, 2008, to the Salary Continuation
Agreement dated as of March 16, 2007 (the “Agreement”), by and between Southern
Community Bank and Trust and F. Scott Bauer (“Executive”).

    

    1.  The
Agreement is amended by adding the following Paragraph:

    

    “7.16.    Compliance
with ESSA. To the extent that any payment under this Agreement would
constitute a prohibited parachute payment under Section 111(b)(2)(C) of the
Emergency Economic Stabilization Act of 2008 (“EESA”), the Bank agrees to pay
Executive an additional payment equal to the prohibited payment on July 1, 2012,
or if later, the earliest date when Section 111(b)(2)(C) of EESA no longer
prohibits such payment.  Such payment shall be made in a single lump
sum in cash, without interest.  The Executive may be entitled to
severance payments from multiple agreements and plans with the
Bank.  The Bank, it its sole discretion, shall determine which
payments shall be delayed in order to comply with
ESSA.   Notwithstanding anything in this paragraph to the
contrary, the additional amounts due under the Agreement shall not be paid if
the Treasury Department or other governmental agency issues guidance subsequent
to the date of this Agreement that would prohibit such payment.  A
prohibited parachute payment shall be interpreted in a manner that is consistent
with Notice 2008-TAAP, Notice 2008-94 and all other current or future guidance
issued  pursuant to Section 111(b)(2)(C) of EESA or Section 280G(e) of
the Internal Revenue Code of 1986, as amended.”

    

    2.  No
other terms and conditions of the Agreement are affected by this
Amendment.

    

    IN WITNESS WHEREOF, the
parties have executed this Amendment as of the day and year first written
above.

     

    
      
        
          
            
              
                	
                        SOUTHERN
      COMMUNITY BANK AND TRUST

                      
	 
      
	
                        By:

                      	
                        /s/ Jeff T.
      Clark

                      
	 
      	
                        Jeff
      T. Clark, President

                      
	 
      

              

            

          

        

      

      
        
          
            
              
                
                  
                    	
                            EXECUTIVE

                          
	 
      
	
                             /s/ F. Scott
      Bauer

                          	
                            (SEAL)

                          
	
                            F.
      Scott Bauer

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