Document:

EX-10.2

 Exhibit 10.2 
  

 
 CONFIDENTIAL 

March 11, 2016 
 Po-Shun Lee, M.D. 

28 Hallwood Road 
 Chestnut Hill, Massachusetts 02467 

 

	Re:	Employment Agreement 

 Dear Po-Shun: 

I have recently reviewed the terms and conditions of your employment and am pleased to provide this letter agreement (the “Agreement”) modifying the
terms of your employment in your new role as Executive Vice President, Chief Medical Officer of Proteostasis Therapeutics, Inc. (“Proteostasis” or the “Company”). This Agreement amends, restates, and supersedes in its entirety
the letter agreement dated October 24, 2014 between you and the Company (the “Offer Letter Agreement”). This Agreement is effective as of the date hereof. 

1. Position and Duties. You currently serve as Executive Vice President, Chief Medical Officer of the Company. In this capacity, you
will report directly to the Chief Executive Officer (“CEO”) of the Company and will have responsibility for performing those duties as are customary for, and consistent with, your position with Company, as well as those duties as the CEO
may from time to time designate. You shall use your best efforts and devote your full working time to performing your responsibilities for the Company. Notwithstanding the foregoing, you may serve on other boards of directors or undertake other
professional or charitable activities if (i) they do not conflict with any of your obligations to the Company and (ii) such activities are approved by the Board of Directors (the “Board”) or its Executive Committee. You may also
undertake charitable activities without the approval of the Board or its Executive Committee if (i) they do not conflict with any of your obligations to the Company and (ii) they do not involve a material time commitment, individually or
in the aggregate. 
 2. Compensation and Benefits. 

(a) Base Salary. Your base salary will be at the rate of $340,000.00 per year and will be paid out on a bi-weekly basis for so long as
you remain an employee of Proteostasis. Your base salary shall be reviewed annually by the Board or the Compensation Committee of the Board (the “Compensation Committee”). 

Proteostasis Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T:
617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 2
 of 18 
  

 (b) Bonus Plan. You will be eligible to receive an annual cash bonus of up to 35% of
your base salary pursuant to the Company’s Senior Executive Cash Incentive Bonus Plan, as it may be amended from time to time. 
 (c)
Equity Grant. Nothing in this Agreement affects any prior grant by the Company to you of options to purchase shares of the Company’s common stock as set forth in Incentive Stock Option Agreements (“Stock Agreements”), which are
subject to the Proteostasis Therapeutics, Inc. 2008 Equity Incentive Plan (the “Plan” and, together with the Stock Agreements, the “Equity Documents”). 

(d) Other Benefits. Proteostasis offers a range of fringe benefit plans, including a 401(k) plan and medical, dental, life, and
disability insurances. Some of these plans require that you share in the cost; some are paid for by the Company. Information relating to these plans has previously been made available to you. You will be entitled to participate in or receive
benefits under the Company’s existing and future employee benefit plans, as amended or adopted time to time, subject to the terms and conditions of those employee benefit plans. You shall be entitled to participate in all benefit plans that are
made generally available to all or most other senior executive employees of the Company. 
 (e) Vacation. You will be entitled to up
to 20 days of paid vacation in each year, subject to the Company’s vacation policy in effect, as amended from time to time, prorated for any portion of a calendar year of your employment. 

3. Termination. Your employment may be terminated under the following circumstances: 

(a) Termination by the Company for Cause. The Company may terminate your employment at any time for Cause. For purposes of this
Agreement, “Cause” shall mean: 
 (i) material non-performance of your duties under this Agreement (other than by
reason of your physical or mental illness, incapacity or disability) which has continued at for least 30 days following written notice of such non-performance from the Board in reasonable detail; 

(ii) your commission of any act of material and willful misconduct, fraud or dishonesty, provided that this shall not
include the occasional, customary and de minimis use of Company property for personal purposes; 
 (iii) your gross
negligence in the performance of your duties under this Agreement with respect to any material matter; 
 (iv) actions or
omissions by you that satisfy the elements of (A) any felony or (B) a misdemeanor involving moral turpitude, deceit, dishonesty or fraud; 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 3
 of 18 
  

 (v) a material breach by you of any of your obligations under this Agreement;

 (vi) a material breach by you of any of your obligations under the Employee Proprietary Information, Inventions,
Non-Competition and Non-Solicitation Agreement between you and Proteostasis (the “Restrictive Covenants Agreement”); 

(vii) a material violation by you of any of the Company’s written employment policies related to conduct or ethics; or

 (viii) your failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law
enforcement authorities, after being instructed by the Company to cooperate, or your willful destruction or failure to preserve documents or other materials known to be relevant to such investigation or the inducement of others to fail to cooperate
or to produce documents or other materials in connection with such investigation; provided that your exercise of your constitutional right not to make self-incriminating statements in response to inquiries by regulatory or law enforcement
authorities shall not constitute a failure to cooperate with an investigation by such authorities. 
 (b) Termination by the Company
without Cause. The Company may terminate your employment at any time without Cause. Any termination by the Company of your employment which does not constitute a termination for Cause or a termination due to a determination that you are Disabled
pursuant to Section 3(e) shall be deemed a termination without Cause. 
 (c) Termination by You. You may terminate your
employment at any time for any reason, including, but not limited to, Good Reason. For purposes of this Agreement, “Good Reason” shall mean that you have complied with the Good Reason Process (hereinafter defined) following the occurrence
of any of the following events (each, a “Good Reason Condition”): 
 (i) a material diminution in your
responsibilities, authority or duties; 
 (ii) a change in your job title such that your title no longer includes the
position of Chief Medical Officer; 
 (iii) a reduction in your base salary; 

(iv) a requirement that you regularly report to anyone other than the Chief Executive Officer; 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 4
 of 18 
  

 (v) a relocation of the Company’s headquarters by more than 50 miles of
driving distance from its current location unless such relocation results in the Company’s headquarters moving closer in distance to your then-permanent residence; or 

(vi) a material breach of this Agreement by the Company; 

provided that with respect to clauses (i) and (v), a suspension of any or all of your duties or responsibilities by the Company during an
investigation that is initiated pursuant to a direction by the Board shall not constitute the occurrence of a Good Reason Condition or a breach of this Agreement; provided that your base salary, bonus eligibility and fringe benefit
entitlements continue during the period of such suspension. 
 The “Good Reason Process” shall mean that (A) you reasonably determine in good
faith that a Good Reason Condition has occurred; (B) you give the Company written notice of the first occurrence of the Good Reason Condition within 30 days of the first occurrence of such condition; (C) you cooperate in good faith with
the Company’s efforts for a period of not less than 30 days following such notice (the “Cure Period”) to remedy the Good Reason Condition; (D) notwithstanding such efforts, the Good Reason Condition continues to exist; and
(E) you terminate your employment by giving a Notice of Termination (hereinafter defined) no later than 30 days after the expiration of the Cure Period. If the Company cures the Good Reason Condition during the Cure Period, Good Reason shall be
deemed not to have occurred. 
 (d) Death. Your employment shall terminate upon your death, in which event the “Date of
Termination” as defined below shall be the date of death. 
 (e) Disability. The Company may terminate your employment if you
are Disabled. You shall be considered to be “Disabled” if you are unable to perform the essential functions of your then existing position or positions under this Agreement (or are expected, based on a reasonable degree of medical
certainty, to be unable to perform such functions) with or without reasonable accommodation for a period of 180 days (which need not be consecutive) in any twelve (12) month period. If any question shall arise as to whether during any period
you are Disabled, you may, and at the request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom you or your guardian has no reasonable objection as to whether you are
Disabled and how long any inability to perform essential functions is expected to continue. Such certification shall, for the purposes of this Agreement, be conclusive of the issue. You shall cooperate with any reasonable request of the physician in
connection with such certification. If such question shall arise and you fail to submit such certification, the Company’s determination of such issue shall be binding on you. Any determination that you are Disabled and any termination of
employment pursuant to this Section 3(e) must be made by vote of the Board. Nothing in this Section 3(e) shall be construed to waive your rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of
1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq. 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 5
 of 18 
  

 (f) Notice of Termination. Any termination of your employment by the Company or any
such termination by you shall be communicated by written Notice of Termination to the other party. A “Notice of Termination” shall indicate the specific termination provision in this Agreement relied upon. 

(g) Date of Termination. “Date of Termination” shall mean: 

(i) if your employment is terminated by the Company with or without Cause or due to a determination that you are Disabled, the
date on which a Notice of Termination is given or such later effective date of termination (not to exceed 30 days after such Notice of Termination is given) as may be specified by the Company in such Notice of Termination; 

(ii) if your employment is terminated by you with or without Good Reason, 30 days after the date on which a Notice of
Termination is given. 
 Notwithstanding the foregoing, in the event that you give a Notice of Termination to the Company, the Company may unilaterally
accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement; provided that the Company pays you your base salary for the period of such acceleration. 

4. Compensation upon Termination. 

(a) Termination Generally. If your employment with the Company is terminated for any reason, the Company shall pay or provide to you
(or your authorized representative or estate) any earned but unpaid salary and bonus, if any, unpaid expense reimbursements, accrued but unused vacation, and any vested benefits you may have under any employee benefit plan of the Company (the
“Accrued Benefit”) on or before the time required by law, but in no event more than 30 days after your Date of Termination. 
 (b)
Certain Terminations of Employment. If your employment is terminated by the Company for Cause or because you are Disabled, if you terminate your employment without Good Reason or if your employment ends because of your death, then the Company
shall pay your Accrued Benefit through the Date of Termination and, except for the payment of the Accrued Benefit, your compensation, benefits, and stock option vesting shall cease as of the Date of Termination. 

(c) Termination by the Company without Cause or by You with Good Reason. If your employment is terminated by the Company without Cause
or by you for Good Reason, in either case at any time prior to the occurrence of a Change in Control or at any time after the 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 6
 of 18 
  

 
twelve (12) month anniversary following a Change in Control (hereinafter defined), then, in addition to the Accrued Benefit, you will be entitled to the following payments, benefits and
other terms, subject to the Separation Agreement and Release requirement below: 
 (i) The Company shall pay you severance
pay in the form of continuation of your base salary for the nine (9) month period immediately following the Date of Termination (such severance pay being “Severance Pay;” such period being the “Severance Period”) in
accordance with the Company’s payroll practice, beginning on the Company’s first regular payroll date that occurs 35 days after the Date of Termination, with the first payment to include a payment for all amounts delayed due to the 35-day
period; provided that, solely for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each installment of Severance Pay is considered a separate payment. 

(ii) If you were participating in the Company’s group health plans immediately prior to the Date of Termination and elect
COBRA health continuation, the Company shall pay a monthly cash payment through the end of the Severance Period, the end of your COBRA health continuation period or your eligibility for group medical care coverage through subsequent employment,
whichever occurs earliest, in an amount equal to the monthly employer contribution that the Company would have made to provide health insurance to you if you had remained employed by the Company (the “Health Benefit;” together with the
Severance Pay, the “Severance Benefits”). The Company shall make such monthly cash payment directly to the applicable insurer(s) along with the regular employee contributions, which employee contributions the Company may withhold from the
Severance Pay; provided that if the Company determines that its payment of the Health Benefit is taxable income to you, it may pay such amount directly to you subject to applicable tax-related deductions and withholdings. 

(iii) On the date that is thirty-five (35) days after the Date of Termination, any outstanding equity grants that are
subject to vesting based only on the passage of time in service will vest with respect to that number of shares which would have vested if you had continued in employment with the Company for a period of nine (9) months following the Date of
Termination in accordance with any such equity grant’s vesting schedule. The shares representing the difference between the number of shares that are vested on the Date of Termination and the number which would have vested if you had continued
in employment with the Company for a period of nine (9) months following the Date of Termination in accordance with any such equity grant’s vesting schedule are referred to as the “Additional Shares.” Any termination or
forfeiture of the Additional Shares that would otherwise occur on the Date of Termination in the absence of this Agreement will be delayed until the 35th day after the Date of Termination and will
only occur if the Company has timely tendered a Separation Agreement and Release 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 7
 of 18 
  

 
as defined below but such Separation Agreement and Release has not become fully executed and effective. You shall have 90 days from the Date of Termination to exercise vested equity grants
(but in no event later than the applicable expiration date). 
 In addition, and subject to the remainder of this Section 4(c), in the event that your
employment is terminated by the Company without Cause or by you for Good Reason, Section 6 (entitled “Non-Compete Provision”) of the Restrictive Covenants Agreement shall be amended by replacing “one (1) year period”
with “nine (9) month period” (the “Restrictive Covenants Amendment”). The Company shall have the option to condition the Severance Benefits, the vesting pursuant to Section 4(c)(iii) and the Restrictive Covenants
Amendment on your timely execution and non-revocation of a separation agreement substantially in the form of Exhibit A, subject to any modifications based on legal developments occurring after the effective date of this Agreement (a “Separation
Agreement and Release”). To exercise such option, the Company must tender a Separation Agreement and Release to you no later than five (5) days after the termination of your employment. 

(d) Mitigation. If at any time during Severance Period you obtain employment in any capacity that entitles you to aggregate cash
compensation equal to or greater than the aggregate amount of the Severance Pay, the Company shall discontinue payment of the Severance Pay. Further, if at any time during the Severance Period you obtain employment in any capacity that entitles you
to aggregate cash compensation less than the aggregate amount of the Severance Pay, then the Company shall reduce the remaining balance of the Severance Benefits by the difference between such aggregate cash compensation and the aggregate amount of
the Severance Pay. You agree to notify the Company promptly if you obtain employment with another employer. You also agree to respond promptly and fully to any reasonable requests for information by the Company concerning your employment status and
aggregate cash compensation. If the Company pays any amount of Severance Pay as a result of your failure to respond promptly or fully to any such request, you shall reimburse the Company for all such overpaid Severance Pay. 

(e) No Offset. In the event of termination of your employment, you will be under no obligation to seek other employment and, except to
the extent otherwise expressly provided elsewhere in this Agreement, there shall be no offset against amounts due to you on account of any remuneration or benefits provided by any subsequent employment you may obtain. If you engage in a material
breach of your obligations under this Agreement or a breach of the Restrictive Covenants Agreement, the Company may cease providing any Severance Benefits or CIC Severance Benefits (as defined below) that would otherwise be due to you. Except to the
extent set forth above or otherwise expressly provided elsewhere in this Agreement, the Company’s obligation to make any payment pursuant to, and otherwise to perform its obligations under, this Agreement shall not be affected by any offset,
counterclaim or other right that the Company may have against you for any reason. 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 8
 of 18 
  

 5. Change in Control Provisions. The provisions of this Section 5 set forth your
rights and obligations upon the occurrence of a Change in Control of the Company. These provisions are intended to assure and encourage in advance your continued attention and dedication to your assigned duties and your objectivity during the
pendency and after the occurrence of any such event. These provisions shall apply in lieu of, and expressly supersede, the Severance Benefits set forth in Section 4 (other than the mitigation provision in Section 4(d), which shall also
apply to the CIC Severance Benefits under this Section 5 to the same extent that Severance Benefits are subject to mitigation under Section 4) and Section 4(c)(iii) if a termination of your employment occurs within 12 months after the
occurrence of a Change in Control. 
 (a) Termination of Employment without Cause or for Good Reason Following a Change in Control.
If within 12 months after a Change in Control, your employment is terminated by the Company without Cause or by you for Good Reason, then, in addition to the Accrued Benefit, you will be entitled to the following payments, benefits and other terms,
subject to the Separation Agreement and Release requirement below: 
 (i) The Company shall pay you severance pay in the form
of continuation of your base salary for the twelve (12) month period immediately following the Date of Termination (such severance pay being “CIC Severance Pay;” such period being the “CIC Severance Period”) in accordance
with the Company’s payroll practice, beginning on the Company’s first regular payroll date that occurs 35 days after the Date of Termination, with the first payment to include a payment for all amounts delayed due to the 35-day period;
provided that, solely for purposes of Section 409A of the Code, each installment of CIC Severance Pay is considered a separate payment. 

(ii) If you were participating in the Company’s group health plans immediately prior to the Date of Termination and elect
COBRA health continuation, the Company shall pay you a monthly cash payment through the end of the CIC Severance Period, the end of your COBRA health continuation period or your eligibility for group medical care coverage through subsequent
employment, whichever occurs earliest, in an amount equal to the monthly employer contribution that the Company would have made to provide health insurance to you if you had remained employed by the Company (the “CIC Health Benefit”
together with that CIC Severance Pay, the “CIC Severance Benefits”). The Company shall make such monthly cash payment directly to the applicable insurer(s) along with the regular employee contributions, which it may withhold from the CIC
Severance Pay; provided that if the Company determines that its payment of the CIC Health Benefit is taxable income to you, it may pay such amount directly to you subject to applicable tax-related deductions and withholdings. 

(iii) On the date that is thirty-five (35) days after the Date of Termination, 100% of your then outstanding unvested
equity that is subject to vesting 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 9
 of 18 
  

 
based only on the passage of time in service shall immediately vest and become fully exercisable and not subject to forfeiture. Any termination or forfeiture of the unvested portion of such
equity grant that would otherwise occur on the Date of Termination in absence of this Agreement will be delayed until the 35th day after the Date of Termination and will only occur if the Company
has timely tendered a Separation Agreement and Release as defined below but such Separation Agreement and Release has not become fully executed and effective. You shall have 90 days from the Date of Termination to exercise vested equity grants
(but in no event later than the applicable expiration date). 
 In addition, and subject to the remainder of this Section 5(a), if within 12 months
after a Change in Control your employment is terminated by the Company without Cause or by you for Good Reason, the Restrictive Covenants Amendment shall apply. The Company shall have the option to condition the CIC Severance Benefits, the vesting
pursuant to Section 5(c)(iii) and the Restrictive Covenants Amendment on your timely execution and non-revocation of a Separation Agreement and Release. To exercise such option, the Company must tender a Separation Agreement and Release to you
no later than five (5) days after the termination of your employment. 
 (b) Additional Limitation. 

(i) Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or
distribution by the Company to or for the benefit of you, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the
applicable regulations thereunder (the “Aggregate Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the
Aggregate Payments shall be $1.00 less than the amount at which you become subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in you receiving a higher After Tax
Amount (as defined below) than you would receive if the Aggregate Payments were not subject to such reduction. In such event, the Aggregate Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with
the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (A) cash payments not subject to Section 409A of the Code; (B) cash payments
subject to Section 409A of the Code; (C) equity-based payments and acceleration; and (D) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to
calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 10
 of 18 
  

 (ii) For purposes of this Section 5(b), the “After Tax Amount”
means the amount of the Aggregate Payments less all federal, state, and local income, excise and employment taxes imposed on you as a result of your receipt of the Aggregate Payments. For purposes of determining the After Tax Amount, you shall be
deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of
individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 

(iii) The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to Section 5(b)(i)
shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and you within fifteen (15) business days of the Date
of Termination, if applicable, or at such earlier time as is reasonably requested by the Company or you. Any determination by the Accounting Firm shall be binding upon the Company and you. 

(c) Definition of Change in Control. For purposes of this Agreement, “Change in Control” shall mean any of the following:

 (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Act”) (other than the Company, any of its subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with
all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, is or shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or
indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities, other than as a result of the acquisition of newly issued shares of capital stock of the Company
pursuant to any financing transaction by the Company or otherwise; or 
 (ii) the consummation of (A) any consolidation
or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, shares representing in the aggregate more than 50% of the voting shares of the company issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), or (B) any sale or other
transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company (other than in connection with the wind-up, liquidation or dissolution of the
Company); 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 11
 of 18 
  

 provided, however, that the initial public offering of the Company, any subsequent public
offering or any other capital raising event, public or private, or a merger effected solely to change the Company’s domicile shall not constitute a Change in Control. 

6. Section 409A Compliance. Each payment pursuant to the terms of this Agreement shall be considered a separate payment for
purposes of Section 409A. A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amount or benefit upon or following a termination of employment unless
such termination is also a “separation from service” within the meaning of Internal Revenue Code Section 409A (“Section 409A”) and, for purposes of this Agreement, references to a “termination,” “termination
of employment” or like terms shall mean “separation from service.” Notwithstanding anything to the contrary in this Agreement, if you are a “specified employee” (within the meaning of Section 409A) on the date of your
separation from service, then any payments or benefits that otherwise would be payable pursuant to the terms of this Agreement within the first 6 months following your separation from service (the “409A Suspension Period”), shall instead
be paid in a lump sum within 14 days after the end of the 6-month period following your separation from service, or your death, if sooner, but only to the extent that such payments or benefits provide for
the “deferral of compensation” within the meaning of Section 409A, after application of the exemptions provided in Sections 1.409A-1(b)(4) and
1.409A-1(b)(9)(ii)-(v) thereof. After the 409A Suspension Period, you will receive any remaining payments and benefits due in accordance with the terms of this Agreement
(as if there had not been any suspension beforehand). The Company will cooperate with you in making any amendments to this Agreement that you reasonably request to avoid the imposition of taxes or penalties under Section 409A of the Code
provided that such changes do not provide you with additional benefits (other than de minimis benefits) under this terms of this Agreement. 

7. Litigation and Regulatory Cooperation. During and after your employment, you shall cooperate fully with the Company in the defense
or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while you were employed by the Company (“Cooperation
Services”); provided that for all time in excess of ten (10) hours that you reasonably expend in providing Cooperation Services after the end of the Severance Period or CIC Severance Period (as applicable) or after the Date of
Termination in the event that you are not entitled to the Severance Benefits or the CIC Severance Benefits, the Company shall compensate you at an hourly rate equal to your final base salary rate divided by 2,080; provided further that your
right to such compensation shall not apply to time spent in activities that could have been compelled pursuant to a subpoena, including testimony and related attendance at depositions, hearings or trials and time spent waiting to engage in such
activities. 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 12
 of 18 
  

 
Your full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a
witness on behalf of the Company at mutually convenient times. During and after your employment, you also shall cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as
any such investigation or review relates to events or occurrences that transpired while you were employed by the Company. The Company shall reimburse you for any reasonable
out-of-pocket expenses incurred in connection with your performance of obligations pursuant to this Section 7. 

8. Arbitration of Disputes. Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise
arising out of your employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise and any other claim based on a statute, including a statutory
claim for wages, as well as contractual and common law claims) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices of
the American Arbitration Association (“AAA”) in Boston, Massachusetts in accordance with the Employment Arbitration Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators. In
the event that any person or entity other than you or the Company may be a party with regard to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement.
Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. This Section 8 shall be specifically enforceable. Notwithstanding the foregoing, this Section 8 shall not preclude either party
from pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an
arbitration proceeding pursuant to this Section 8. The prevailing party in any arbitration proceeding pursuant to this Section 8 shall be entitled to recover such party’s reasonable attorneys’ fees and costs from the
non-prevailing party. 
 9. Consent to Jurisdiction. To the extent that any court action is permitted consistent with or to enforce
Section 8 of this Agreement, you and the Company hereby consent to the jurisdiction of the state and federal courts of the Commonwealth of Massachusetts. The prevailing party in any court action pursuant to this Section 9 shall be entitled
to recover such party’s reasonable attorneys’ fees and costs from the non-prevailing party. 
 10. Your Successors. The
terms of this Agreement will inure to the benefit of and be enforceable by your personal representatives, executors, administrators, heirs, distributees, devisees and legatees. In the event of your death prior to the completion by the Company of all
payments due hereunder, the Company shall continue such payments to any beneficiary designated in writing to the Company prior to your death (or to your estate, if you do not make 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 13
 of 18 
  

 
such designation). This Agreement shall be binding upon you and your successors, permitted assigns, personal representatives, executors, administrators, heirs, distributees, devisees and
legatees. Except to the extent contemplated under this Section 10, you may not assign this Agreement nor any of your rights or obligations under this Agreement, whether voluntarily, by operation of law or otherwise, without the prior written
consent of the Company. 
 11. Governing Law. The terms of this Agreement shall be construed under and be governed in all respects by
the laws of the Commonwealth of Massachusetts without giving effect to the conflict of laws principles of such state. 
 12. Binding
Effect on Company and Successors. This Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and permitted assigns. Without your prior written consent, the Company may not assign this Agreement, nor any of
its rights or obligations under this Agreement, whether voluntarily, by operation of law or otherwise, except (a) to a controlled affiliate of the Company and (b) to a successor or acquirer of the Company in connection with a Change in
Control. 
 13. Integration. This Agreement constitutes the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior agreements between the parties concerning such subject matter, except for the Restrictive Covenants Agreement, the Equity Documents and any indemnification agreement between you and the Company. For the avoidance of
doubt, this Agreement supersedes all provisions of the Offer Letter Agreement. 
 14. Miscellaneous Provisions. 

(a) You shall continue to observe and perform all of your obligations under the Restrictive Covenants Agreement. 

(b) You affirm that at the time you were initially hired by the Company, you completed, as required by law, the Employment Eligibility
Verification Form, IRCA I-9. 
 Please indicate your acceptance of this Agreement by signing one copy of this letter and returning it so that I receive it
no later than one week from date sent, after which date the offer of this Agreement will expire if not accepted. 

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 Po-Shun Lee, M.D. 

March 11, 2016 
  Page
 14
 of 18 
  

 I am enthusiastic about your continued employment with Proteostasis. I believe that your continued
contribution will play an important role in helping accelerate the development of Proteostasis into a profitable and growing company. Please feel free to contact me if you have any questions. 

 

					
	Sincerely:	 		 	
			
	 /s/ Meenu Chhabra
	 		 	 3/11/16

	Meenu Chhabra	 		 	Date
	President and CEO	 		 	
			
	Agreed to and accepted by:	 		 	
			
	 /s/ Po-Shun Lee
	 		 	 3/15/16

	Po-Shun Lee, M.D.	 		 	Date

  
 Proteostasis
Therapeutics, Inc.  |  200 Technology Square, Fourth Floor, Cambridge, MA 02139  |  T: 617.225.0096 

 EXHIBIT A 

SEPARATION AGREEMENT AND RELEASE 
 This is
the Separation Agreement and Release (the “Agreement”) as defined in Section 4(c) of the Employment Agreement by and between Proteostasis Therapeutics, Inc. (the “Company”) and Po-Shun Lee (the “Executive”), dated
as of [Date] (the “Employment Agreement”). The Executive’s execution and non-revocation of this Agreement is a condition of certain payments to the Executive and other terms pursuant to Section 4(c) or Section 5(a) of the
Employment Agreement; provided that the Company also executes this Agreement. 
 1. Release of Claims. The Executive
voluntarily releases and forever discharges the Company, its affiliated and related entities, their predecessors, successors and assigns, their employee benefit plans and fiduciaries of such plans, and the current and former officers, directors,
shareholders, employees, attorneys, accountants and agents of any and all of the foregoing in their official and personal capacities (collectively referred to as the “Releasees”) generally from all claims, demands, debts, damages and
liabilities of every name and nature, known or unknown (“Claims”) that, as of the date when the Executive signs this Agreement, the Executive has, ever had, claims to have or ever claimed to have had against any or all of the Releasees.
This includes, without limitation, the release of all Claims: 
  

	•	 	relating to the Executive’s employment by the Company and the termination of such employment; 

  

	•	 	of wrongful discharge; 

  

	•	 	of breach of contract; 

  

	•	 	of retaliation or discrimination under federal, state or local law (including, without limitation, Claims of age discrimination or retaliation under the Age Discrimination in Employment Act, Claims of disability
discrimination or retaliation under the Americans with Disabilities Act, Claims of discrimination or retaliation under Title VII of the Civil Rights Act of 1964 and Claims of any form of discrimination or retaliation that is prohibited by the
Florida Civil Rights Act); 

  

	•	 	under any other federal, state or city statute or regulation; 

  

	•	 	of defamation or other torts; 

  

	•	 	of violation of public policy; 

  

	•	 	for wages, bonuses, incentive compensation, paid time off or any other compensation or benefits; and 

  

	•	 	for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees; 

provided, however, that this release shall not affect the Executive’s rights, if any, (i) under any Section 401(k) plan, (ii) to
indemnification, advancement and/or directors and officers insurance coverage, (iii) under any equity awards issued pursuant to Section 2(b) of the Employment Agreement or otherwise granted by the Company in writing pursuant to the
approval of the Company’s Board of Directors, or (iv) under Sections 2, 4(c) or 5(a) of the Employment Agreement. 

 The Executive agrees that he shall not seek or accept damages of any nature, other equitable or legal remedies
for his own benefit, attorney’s fees, or costs from any of the Releasees with respect to any Claim released by this Agreement. He further represents that he has not assigned to any third party and he has not filed with any agency or court any
Claim released by this Agreement. 
 2. The Company’s Release of Claims. The Company voluntarily releases and forever discharges
the Executive generally from all Claims that, as of the date when it signed this Agreement, ever had, claims to have or ever claimed to have had against the Executive, including, without limitation, all Claims relating to the Executive’s
employment by and termination of employment with the Company; provided that (i) the Company does not waive any of its rights under the Employment Agreement or the Employee Proprietary Information, Inventions, Non-Competition and
Non-Solicitation Agreement between the Company and the Executive (the “Restrictive Covenants Agreement”); and (ii) the Company does not release the Executive from any civil Claim that is based on conduct that also satisfies the
elements of a criminal offense. 
 3. Ongoing Obligations. This Agreement shall not affect the Executive’s ongoing obligations
under the Employment Agreement or the Restrictive Covenants Agreement. 
 4. Non-Disparagement. The Executive agrees not to make any
disparaging statements concerning (i) the Company or any of its affiliates, (ii) the products or services provided by any of the foregoing or (iii) any current or former officers, directors or employees of any of the foregoing. The
Company shall direct all members of its Board of Directors and all employees holding positions at or above the level of Senior Vice President not to make any disparaging statements concerning the Executive. The scope of persons to receive such
directions may be reduced at the option of the Executive if the Executive so requests in writing before such directions are issued. These non-disparagement obligations shall not apply to any person’s statements as a witness in a legal
proceeding or as otherwise required by law. The Executive understands that nothing in this paragraph or in any other provision of this Agreement shall be interpreted or applied to prohibit him from making any good faith report to any governmental
agency or other governmental entity concerning any acts or omissions that he may believe to constitute a possible violation of federal or state law or making other disclosures that are protected under the whistleblower provisions of applicable
federal or state law or regulation. 
 5. Right to Consider and Revoke Agreement. The Executive acknowledges that he has been given
the opportunity to consider this Agreement for a period ending twenty-one (21) days after the date when it was proposed to him. In the event that the Executive executed this Agreement within less than twenty-one (21) days after such date, he acknowledges that such decision was entirely voluntary and that he had the opportunity to consider this Agreement until the end of the
twenty-one (21) day period. To accept this Agreement, the Executive shall deliver a signed Agreement to the Company within such twenty-one (21) day period. The
Company may specify a designated recipient for the Agreement by written notice to the Employee (a “Company Representative”). For a period of seven (7) days from the date when 

  
 2 

 
the Executive executes this Agreement (the “Revocation Period”), the Executive shall retain the right to revoke this Agreement by written notice that is received by the Company (or
a Company Representative, if designated) on or before the last day of the Revocation Period. This Agreement shall take effect only if it is executed within the twenty-one (21) day period as set forth above and if it is not revoked pursuant to
the preceding sentence. If those conditions are satisfied, this Agreement shall become effective and enforceable on the date immediately following the last day of the Revocation Period (the “Effective Date”). 

6. Other Terms. 
 (a)
Legal Representation; Review of Release. The Executive acknowledges that he has been advised to discuss all aspects of this Agreement with his attorney, that he has carefully read and fully understands all of the provisions of this Agreement
and that he is voluntarily entering into this Agreement. 
 (b) Binding Nature of Release. This Agreement shall be binding upon the
parties and their heirs, administrators, representatives, and successors. 
 (c) Amendment. This Agreement may be amended only upon a
written agreement executed by both parties. 
 (d) Severability. In the event that at any future time it is determined by an
arbitrator or court of competent jurisdiction that any covenant, clause, provision or term of this Agreement is illegal, invalid or unenforceable, the remaining provisions and terms of this Agreement shall not be affected thereby and the illegal,
invalid or unenforceable term or provision shall be severed from the remainder of this Agreement. In the event of such severance, the remaining covenants shall be binding and enforceable. 

(e) Governing Law and Interpretation. This Agreement shall be deemed to be made and entered into in the Commonwealth of Massachusetts,
and shall in all respects be interpreted, enforced and governed under the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws provisions of Massachusetts law. The language of all parts of this Agreement shall in
all cases be construed as a whole, according to its fair meaning, and not strictly for or against the Company or the Executive. 

  
 3 

 (f) Entire Agreement; Absence of Reliance. Each party acknowledges that he or it is not
relying on any promises or representations by the other party or his or its agents, representatives or attorneys regarding any subject matter addressed in this Agreement. 
  

							
	So agreed.	 		 	
			
	  
	 		 	  

	Po-Shun Lee	 		 	Date
			
	PROTEOSTASIS THERAPEUTICS, INC.	 		 	
				
	By:	 	  
	 		 	  

		 	Name:	 		 	Date
		 	Title:	 		 	

  
 4EXECUTION COPY

 

EMPLOYMENT
AGREEMENT

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) dated as of December 8, 2015, is made by and between First Community Corporation,
a South Carolina corporation (the “Company”), First Community Bank (the “Bank”), which is a wholly owned
subsidiary of the Company (the Company and the Bank collectively referred to herein as the “Employer”), and Michael
C. Crapps, an individual resident of South Carolina (the “Executive”). 

The Employer presently employs the Executive
as its President and Chief Executive Officer. The Employer recognizes that the Executive’s contribution to the growth and success
of the Employer is substantial. The Employer desires to provide for the continued employment of the Executive and to make certain
changes in the Executive’s employment arrangements which the Employer has determined will reinforce and encourage the continued
dedication of the Executive to the Employer and will promote the best interests of the Employer and the Company’s shareholders.
The Executive is willing to terminate his interests and rights under the existing employment agreement with the Bank and to continue
to serve the Employer on the terms and conditions herein provided.

In consideration of the foregoing, the
mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:

1.      Employment. The Employer shall continue
to employ the Executive, and the Executive shall continue to serve the Employer, as President and Chief Executive Officer of the
Company and the Bank upon the terms and conditions set forth herein. The Executive shall have such authority and responsibilities
consistent with his position as are set forth in the Company’s or the Bank’s Bylaws or assigned by the Company’s or the Bank’s
board of directors (collectively, the “Board”) from time to time. The Executive shall devote his full business time,
attention, skill and efforts to the performance of his duties hereunder, except during periods of illness or periods of vacation
and leaves of absence consistent with Bank policy. The Executive may devote reasonable periods to service as a director or advisor
to other organizations, to charitable and community activities, and to managing his personal investments, provided that
such activities do not materially interfere with the performance of his duties hereunder and are not in conflict or competitive
with, or adverse to, the interests of the Company or the Bank. The Executive agrees to conduct himself in accordance with the code
of ethics for officers and employees adopted by the Employer, as amended from time to time.

The Executive is currently serving as
a director of each of the Company and the Bank. The Company shall nominate the Executive for election as a director at such times
as necessary so that the Executive will, if elected by shareholders, remain a director of the Company throughout the term of employment
under this Agreement. The Executive hereby consents to serving as a director and to being named as a director of the Company in
documents filed with the Securities and Exchange Commission. The Board shall undertake every lawful effort to ensure that the Executive
continues throughout the term of employment to be elected or reelected as a director of the Bank.

2.           
Term. Unless earlier terminated as provided herein, the Executive’s employment under
this Agreement shall commence on the date hereof and be for a term of three years (the “Initial Term”). At the end
of each day of the Term, the Term shall be extended for an additional day so that the remaining term shall continue to be three
years (unless earlier terminated as provided in Section 4); provided that the Executive or the Employer may at any time, by written
notice, fix the Term to a finite term of three years commencing with the date of the notice, in which case the Agreement shall
continue through its remaining term but shall not be extended absent written agreement by both the Employer and the Executive.

    	 	1	 

     

    

3.           
Compensation and Benefits.

(a)   
The Employer shall pay the Executive a rate of annual base salary of $371,706.00 which shall
be paid in accordance with the Employer’s standard payroll procedures, which shall be no less frequently than monthly. The
Employer shall have the right to increase this salary from time to time in accordance with the salary payment practices of the
Employer. The Board shall review the Executive’s salary at least annually and may increase the Executive’s base salary if it determines
in its sole discretion that an increase is appropriate.

(b)  
The Executive shall participate in the Employer’s long-term equity incentive program
and be eligible for the grant of stock options, restricted stock, and other awards thereunder or under any similar plan adopted
by the Company. Any options or similar awards shall be issued to Executive at an exercise price of not less than the stock’s current
fair market value as of the date of grant, and the number of shares subject to such grant shall be fixed on the date of grant.

(c)   
The Executive shall participate in all retirement, health, welfare and other benefit plans
or programs of the Employer now or hereafter applicable generally to employees of the Employer or to a class of employees that
includes senior executives of the Employer.

(d)  
The Employer shall provide the Executive with a term life insurance policy providing for death
benefits totaling $500,000 payable to the Executive’s spouse and heirs and $1,500,000 payable to the Employer, and the Executive
shall cooperate with the Employer in the securing and maintenance of such policy. The Employer shall require and pay the cost of
an annual physical for the Executive, and the Executive hereby authorizes the examining physician and other relevant persons and
entities to release the results of that annual physical to the Employer (and the Executive will execute one or more separate release
authorizations if and as requested by the Employer).

(e)   
The Employer shall obtain a membership in and pay the initiation fee for and the dues pertaining
to an area country club mutually acceptable to the parties and shall designate the Executive as the authorized user of such membership
for so long as the Executive remains the President or Chief Executive Officer of the Employer and this Agreement remains in force.

(f)   
The Employer shall reimburse the Executive for reasonable travel and other expenses, including
cell phone expenses related to the Executive’s duties, which are incurred and accounted for in accordance with the normal practices
of the Employer. The Employer shall reimburse the Executive for such expenses within sixty days of Executive’s notice to Employer
of such expense.

(g)  
The Employer shall provide the Executive with annual paid time off, which includes sick leave,
in accordance with the Employer’s Benefit policy as in effect from time to time, and which shall be taken in accordance with
any banking rules or regulations governing paid time off leave. Except as allowed in accordance with the Employer’s Benefit
policy, paid time off days may not be carried forward into following calendar years, and any payments made by the Employer to the
Executive as compensation for paid time off days shall be paid in accordance with the Employer’s standard payroll procedures,
which shall be no less frequently than monthly.

    	 	2	 

     

    

(h)  
The Executive shall be eligible to receive cash bonuses based on the Executive’s achievement of specified goals and criteria.
These goals and criteria may include both annual and long-term goals, may provide for vesting over a specified time period, and
shall be established annually by the Human Resources Committee of the Board of Directors. Unless otherwise set forth in a bonus
plan that complies with Section 409A, any bonus payment made pursuant to this Section 3(h) shall be made not later than March 15
of the year after the end of the year for which the bonus was earned by the Executive.

 

		4.	Termination.

(a)   
The Executive’s employment under this Agreement may be terminated prior to the end of the
Term only as provided in this Section 4.

(b)  
The Executive’s employment under this Agreement will be terminated upon the death of the Executive.
In this event, the Employer shall pay Executive’s estate any sums due him as base salary and/or reimbursement of expenses through
the end of the month during which death occurred in accordance with the Employer’s normal payroll practices, which shall mean no
less frequently than monthly. The Employer shall also pay the Executive’s estate any bonus earned through the date of death. Any
bonus for previous years which was not yet paid will be paid pursuant to the terms as set forth in Section 3(h). Any bonus that
is earned in the year of death will be paid pursuant to the terms set forth in Section 3(h); provided that to the extent that the
bonus is performance-based, the amount of the bonus (if any) will be calculated by the Company taking into account the performance
of the Company for the entire year, and/or the performance of the Executive through the date of death, as applicable, and prorated
through the date of the Executive’s death.

(c)   
The Employer may terminate the Executive’s employment on account of the Disability of the
Executive under this Section 4(c). During the period of any Disability leading up to the Executive’s Termination of Employment
under this provision, the Employer shall continue to pay the Executive his full base salary at the rate then in effect and all
perquisites and other benefits (other than any bonus) in accordance with the Employer’s normal payroll schedule (and in no event
less frequently than monthly) until the Executive becomes eligible for benefits under any long-term disability plan or insurance
program maintained by the Employer, provided that the amount of any such payments to the Executive shall be reduced by the sum
of the amounts, if any, payable to the Executive for the same period under any other disability benefit or pension plan covering
the Executive. Furthermore, the Employer shall pay the Executive any bonus earned through the date of Disability. Any bonus for
previous years, or the year in which the Executive’s employment is terminated in accordance with this Section 4(c), which was not
yet paid will be paid pursuant to the terms as set forth in Section 3(h). Any bonus that is earned in the year of termination on
account of Disability will be paid pursuant to the terms set forth in Section 3(h); provided that to the extent that the bonus
is performance-based, the amount of the bonus (if any) will be calculated by the Company taking into account the performance of
the Company for the entire year, and/or the performance of the Executive through the date of termination, as applicable, and prorated
through the date of the termination of the Executive’s employment on account of Disability. Nothing herein shall prohibit the Employer
from hiring an acting chief executive officer during the period of any disability of the Executive.

(d)  
The Employer may terminate the Executive’s Employment for Cause upon delivery of a Notice
of Termination to the Executive. If the Executive’s employment is terminated for Cause under this provision, the Executive shall
receive only any sums due him as base salary and/or reimbursement of expenses through the date of termination, which shall be paid
in accordance with the Employer’s normal payroll practices, which shall mean no less frequently than monthly.

    	 	3	 

     

    

(e)   
 The Employer may terminate the Executive’s employment without Cause upon delivery of a Notice
of Termination to the Executive. If the Executive’s employment is terminated without Cause under this provision, subject to Section
4(h) and also to the possibility of a six-month delay described in Section 20, on the sixtieth (60th) day after the date of termination,
the Employer will pay to the Executive an amount equal to twice the amount of the Executive’s monthly base salary as in effect
immediately prior to his termination of employment, and thereafter on the first day of the month for the next 22 months, the Employer
shall pay to the Executive severance compensation in an amount equal to 100% of his monthly base salary as in effect immediately
prior to his termination of employment. Employer shall also pay the Executive any bonus earned through the date of termination
(including any amounts awarded for previous years but which were not yet vested). Any bonus for previous years, or the year in
which the Executive’s employment is terminated in accordance with this Section (e), which was not yet paid will be paid pursuant
to the terms as set forth in Section 3(h). Any bonus that is earned in the year of the termination of the Executive’s employment
without Cause will be paid pursuant to the terms set forth in Section 3(h); provided that to the extent that the bonus is
performance-based, the amount of the bonus (if any) will be calculated by the Company taking into account the performance of the
Company for the entire year, and/or the performance of the Executive through the date of termination, as applicable, and prorated
through the date of the Executive’s termination of employment without Cause.

(f)   
The Executive may terminate his employment at any time by delivering a Notice of Termination
at least 14 days prior to such termination, and such termination shall not in and of itself be, nor shall it be deemed to be, a
breach of this Agreement. If the Executive terminates his employment under this provision, the Executive shall receive any sums
due him as base salary and/or reimbursement of expenses through the date of such termination, which shall be paid in accordance
with the Employer’s normal payroll practices, which shall mean no less frequently than monthly. In addition, if the Executive
terminates his employment under this Section 4(f) and if (and only if) such termination constitutes a Retirement, then the Employer
shall pay the Executive any bonus earned through the date of Retirement, as follows: (i) any bonus for previous years which was
not yet paid will be paid pursuant to the terms set forth in Section 3(h), and (ii) any bonus that is earned in the year of Retirement
will be paid pursuant to the terms set forth in Section 3(h); provided that to the extent that the bonus is performance-based,
the amount of the bonus (if any) will be calculated by the Company taking into account the performance of the Company for the entire
year, and/or the performance of the Executive through the date of Retirement, as applicable, and prorated through the date of the
Executive’s Retirement. For purposes of this Agreement, “Retirement” means a termination of employment by the Executive
under this Section 4(f) that occurs upon or after both (a) the Executive’s attainment of age 65 and (b) when Executive’s years
of service to the Company and its subsidiaries (such years of service determined in accordance with the rules for determining years
of service under the Company’s 401(k) Plan) is at least ten (10).

(g)  
Upon the occurrence of a Change in Control prior to a termination of the Executive’s
employment, and regardless of whether the Executive remains employed by the Employer or its successor following a Change in Control,
the Executive shall be entitled to the following:

(i)      the Employer shall pay the Executive upon the
15th day following the Change in Control cash compensation in a single lump sum payment in an amount equal to his then
current annual base salary multiplied by three, as well as any bonus earned through the date of the Change in Control, in each
case subject to the provisions of Section 4(k) below;

    	 	4	 

     

    

(ii)      in addition, if the Executive is terminated by
the Employer without Cause within two years following the Change in Control (a “Qualifying Termination”), then Executive
may continue participation, in accordance with the terms of the applicable benefits plans, in the Company’s group health plan pursuant
to plan continuation rules under the Consolidated Omnibus Budget Reconciliation Act (including regulations related thereto, “COBRA”),
subject to any amendments to COBRA after the date of this Agreement. In accordance with COBRA (and subject to any amendments to
COBRA after the date of this Agreement), assuming Executive is covered under the Company’s group health plan as of his date
of termination, Executive will be entitled to elect COBRA continuation coverage for the legally required COBRA period (the “Continuation
Period”). If Executive elects COBRA coverage for group health coverage in connection with a Qualifying Termination, then,
he will be obligated to pay only the portion of the full COBRA cost of the coverage equal to an active employee’s share of premiums
for coverage for the respective plan year and the Company’s share of such premiums (the “Employer-Provided COBRA Premium”)
shall be treated as taxable income to Executive.

In addition, on the date that is sixty (60) days after
a Qualifying Termination, the Company shall pay to the Executive a single lump sum payment equal to six times the amount of the
initial monthly Employer-Provided COBRA Premium.

Notwithstanding the above, the Employer’s obligations
hereunder with respect to the foregoing benefits provided in this subsection (ii) shall be eliminated if and when the Executive
is offered Affordable Care Act compliant group health coverage from a subsequent employer.

In addition, upon a Qualifying Termination, to the extent
that “portable” life insurance coverage if offered under the Company’s life insurance programs and after a Qualifying
termination the Executive continues to pay for “portable” life insurance coverage that was provided by the Employer immediately
prior to the Qualifying Termination, the Employer shall reimburse the life insurance premiums (with respect to each such life insurance
premium payment, such reimbursement shall be limited to the amount of the life insurance premium that the Employer would have paid
or otherwise provided for the Executive had the Executive remained employed by the Employer) paid by the Executive with respect
to such life insurance coverage with respect to the two-year period ending immediately after such Qualifying Termination.

(iii) the restrictions on any outstanding incentive awards
(including restricted stock) granted to the Executive under the Company’s or the Bank’s long-term equity incentive program
or any other incentive plan or arrangement shall lapse and such awards shall become 100% vested, all stock options and stock appreciation
rights granted to the Executive shall become immediately exercisable and shall become 100% vested, and all performance units granted
to the Executive shall become 100% vested, in each case subject to the provisions of Section 4(k) below.

(h)  
 With the exceptions of the express provisions of this Section 4, and the express terms of
any benefit plan under which the Executive is a participant, it is agreed that, upon termination of the Executive’s employment,
the Employer shall have no obligation to the Executive for, and the Executive waives and relinquishes, any further compensation
or benefits (exclusive of COBRA benefits). Unless otherwise stated in this Section 4, the effect of termination on any outstanding
incentive awards, stock options, stock appreciation rights, performance units, or other incentives shall be governed by the terms
of the applicable benefit or incentive plan and/or the agreements governing such incentives. Following the termination of the Executive’s
employment pursuant to Section 4(e), if (and only if) the Executive shall execute within 52 days of the date of termination, and
not timely revoke during any revocation period provided pursuant to such release, a release substantially in the form attached
hereto as Exhibit A, then the Employer shall pay the applicable severance described herein. 

    	 	5	 

     

    

(i)   
The Executive shall be deemed to have resigned as a director of each of the Company and the
Bank effective immediately after termination of the Executive’s employment, regardless of whether the Executive hereafter
submits notice of resignation as director. This Agreement constitutes written notice to the Employer of the Executive’s resignation
as a director of each of the Company and the Bank effective as of, and contingent upon the occurrence of, a later effective date
(i.e., termination of the Executive’s employment). After termination of the Executive’s employment, the Executive will
execute such further documents and do such further things as may be requested in good faith by the Employer to evidence, implement
or carry out the intent of this Section 4(i).

(j)   
 The Company is aware that upon the occurrence of a Change in Control, the Board or a shareholder
of the Company may then cause or attempt to cause the Company to refuse to comply with its obligations under this Agreement, or
may cause or attempt to cause the Company to institute, or may institute, litigation seeking to have this Agreement declared unenforceable,
or may take, or attempt to take, other action to deny the Executive the benefits intended under this Agreement. In these circumstances,
the purpose of this Agreement could be frustrated. It is the intent of the parties that the Executive not be required to incur
the legal fees and expenses associated with the protection or enforcement of the Executive’s rights under this Agreement
by litigation or other legal action because such costs would substantially detract from the benefits intended to be extended to
the Executive hereunder, nor be bound to negotiate any settlement of the Executive’s rights hereunder under threat of incurring
such costs. Accordingly, if at any time after a Change in Control, it should appear to the Executive that the Company is acting
or has acted contrary to or is failing or has failed to comply with any of its obligations under this Agreement for the reason
that it regards this Agreement to be void or unenforceable or for any other reason, or that the Company has purported to terminate
the Executive’s employment for Cause or is in the course of doing so in either case contrary to this Agreement, or in the
event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any
litigation or other legal action designed to deny, diminish or recover (other than as required by law) from the Executive the benefits
provided or intended to be provided to the Executive hereunder, and the Executive has acted in good faith to perform the Executive’s
obligations under this Agreement, the Company irrevocably authorizes the Executive from time to time to retain counsel of the Executive’s
choice at the expense of the Company to represent the Executive in connection with the protection and enforcement of the Executive’s
rights hereunder, including without limitation representation in connection with termination of the Executive’s employment
contrary to this Agreement or with the initiation or defense of any litigation or other legal action, whether by or against the
Executive or the Company or any director, officer, shareholder or other person affiliated with the Company, in any jurisdiction.
The reasonable fees and expenses of counsel selected from time to time by the Executive as hereinabove provided shall be paid or
reimbursed to the Executive by the Company on a regular, periodic basis upon presentation by the Executive of a statement or statements
prepared by such counsel. If other officers or key executives of the Company have retained counsel in connection with the protection
and enforcement of their rights under similar agreements between them and the Company, and, unless in the Executive’s sole
judgment use of common counsel could be prejudicial to the Executive or would not be likely to reduce the fees and expenses chargeable
hereunder to the Company, the Executive agrees to use the Executive’s best efforts to agree with such other officers or executives
to retain common counsel.

    	 	6	 

     

    

(k)  
The parties intend that the severance payments and other compensation provided for herein
are reasonable compensation for the Executive’s services to the Employer and shall not constitute “excess parachute payments”
within the meaning of Section 280G of the Code. As used herein, “the “Code” means the Internal Revenue Code of 1986
and any regulations thereunder. In the event that Tax Counsel (as defined below) determines that the payments provided for herein
constitute “excess parachute payments,” then the payments or benefits payable hereunder or otherwise that constitute
“parachute payments” within the meaning of Section 280G (“Covered Payments”) shall be reduced to an amount
the value of which is $1.00 less than the maximum amount that could be paid to the Executive without the Covered Payments being
treated as “excess parachute payments” under Section 280G. The Covered Payments shall be reduced by the Company pursuant
to the foregoing sentence in a manner that Tax Counsel determines maximizes the Executive’s economic position. In applying this
principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where Tax
Counsel determines that two economically equivalent amounts are subject to reduction but payable at different times, such amounts
shall be reduced on a pro rata basis but not below zero.

All determinations required to be made under this Section
4(k), and the assumptions to be utilized in arriving at such determination, shall be made by tax counsel (which may be a law firm,
compensation consultant or an accounting firm) appointed by the Company (the “Tax Counsel”), which shall provide its
determinations and any supporting calculations to the Company within 10 business days of having made such determination. The Tax
Counsel shall consult with any compensation consultants, accounting firm and/or other legal counsel selected by the Company in
determining which payments to, or for the benefit of, the Executive are to be deemed to be ‘parachute payments’ within
the meaning of Section 280G(b)(2) of the Code. In connection with making determinations under this Section 4(k), Tax Counsel shall
take into account, to the extent applicable, the value of any reasonable compensation for services to be rendered by the Executive
before or after the applicable change in ownership or control, including the non-competition provisions, if any, applicable to
the Executive under Section 9 and any other non-competition provisions that may apply to the Executive, and the Company shall cooperate
in the valuation of any such services, including any non-competition provisions

(l)   
If the Executive is suspended or temporarily prohibited from participating, in any way or
to any degree, in the conduct of the Employer’s affairs by (1) a notice served under section 8(e) or (g) of Federal Deposit Insurance
Act (12 U.S.C. 1818 (e) or (g)) or (2) as a result of any other regulatory or legal action directed at the Executive by any regulatory
or law enforcement agency having jurisdiction over the Executive (each of the foregoing referred to herein as a “Suspension
Action”), and if this Agreement is not terminated, the Employer’s obligations under this Agreement shall be suspended as of
the earlier of the effective date of such Suspension Action or the date on which the Executive was provided notice of the Suspension
Action, unless stayed by appropriate proceedings. If the charges underlying the Suspension Action are dismissed, the Bank shall:

		(i)	pay on the first day of the first month following such dismissal of charges (or as provided elsewhere in this Agreement) the
Executive all of the compensation withheld while the obligations under this Agreement were suspended; and
	 	 	 
	 	(ii) 	reinstate any such obligations which were suspended.

 

    	 	7	 

     

    

Notwithstanding anything to the contrary herein, if the Executive
is removed or permanently prohibited from participating, in any way or to any degree, in the conduct of the Employer’s affairs
by (1) an order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. Section 1818 (e)(4) or (g)(1))
or (2) any other legal or law enforcement action (each of the foregoing referred to herein as a “Removal Action”), all
obligations of the Employer under this Agreement shall terminate as of the effective date of the Removal Action, but any vested
rights of the parties hereto shall not be affected.

Notwithstanding anything to the contrary
herein, if the Employer is in default (as defined in section 3(x)(1) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1813(x)(1)),
all obligations under this Agreement shall terminate as of the date of default, but this paragraph (4)(l) shall not affect any
vested rights of the parties hereto.

Any payments made to the Executive
pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. Section 1828(k) and
any regulations promulgated thereunder.

 

Any payments made to the Executive pursuant
to this Agreement, or otherwise, are subject to applicable withholdings and deductions.

 

5.      Ownership of Work Product. The Employer shall own
all Work Product arising during the course of the Executive’s employment (prior, present or future). For purposes hereof, “Work
Product” shall mean all intellectual property rights, including all Trade Secrets, U.S. and international copyrights, patentable
inventions, and other intellectual property rights in any programming, documentation, technology or other work product that relates
to the Employer, its business or its customers and that the Executive conceives, develops, or delivers to the Employer at any time
during his employment, during or outside normal working hours, in or away from the facilities of the Employer, and whether or not
requested by the Employer. If the Work Product contains any materials, programming or intellectual property rights that the Executive
conceived or developed prior to, and independent of, the Executive’s work for the Employer, the Executive agrees to point out the
pre-existing items to the Employer and the Executive grants the Employer a worldwide, unrestricted, royalty-free right, including
the right to sublicense such items. The Executive agrees to take such actions and execute such further acknowledgments and assignments
as the Employer may reasonably request to give effect to this provision.

 

6.      Protection
of Trade Secrets. The Executive agrees to maintain in strict confidence and, except as necessary to perform his duties for
the Employer, the Executive agrees not to use or disclose any Trade Secrets of the Employer during or after his employment. “Trade
Secret” means information, including a formula, pattern, compilation, program, device, method, technique, process, drawing,
cost data or customer list, that: (i) derives economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii)
is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

7.      Protection
of Other Confidential Information. In addition, the Executive agrees to maintain in strict confidence and, except as necessary
to perform his duties for the Employer, not to use or disclose any Confidential Business Information of the Employer during his
employment and for a period of 24 months following termination of the Executive’s employment. “Confidential Business Information”
shall mean any internal, non-public information (other than Trade Secrets already addressed above) concerning the Employer’s financial
position and results of operations (including revenues, assets, net income, etc.); annual and long-range business plans; product
or service plans; marketing plans and methods; training, educational and administrative manuals; customer and supplier information
and purchase histories; and employee lists. The provisions of Sections 6 and 7 shall also apply to protect Trade Secrets and Confidential
Business Information of third parties provided to the Employer under an obligation of secrecy.

 

    	 	8	 

     

    

8.      Return
of Materials. The Executive shall surrender to the Employer, promptly upon its request and in any event upon termination of
the Executive’s employment, all media, documents, notebooks, computer programs, handbooks, data files, models, samples, price
lists, drawings, customer lists, prospect data, or other material of any nature whatsoever (in tangible or electronic form) in
the Executive’s possession or control, including all copies thereof, relating to the Employer, its business, or its customers.
Upon the request of the Employer, the Executive shall certify in writing compliance with the foregoing requirement.

 

9.      Restrictive
Covenants.

 

(a)      No Solicitation of Customers.
During the Executive’s employment with the Employer and for a period of 24 months thereafter, the Executive shall not (except on
behalf of or with the prior written consent of the Employer), either directly or indirectly, on the Executive’s own behalf or in
the service or on behalf of others, (A) solicit, divert, or appropriate to or for a Competing Business, or (B) attempt to solicit,
divert, or appropriate to or for a Competing Business, any person or entity that is or was a customer of the Employer or any of
its Affiliates at any time during the 12 months prior to the date of termination and with whom the Executive has had material contact.
The parties agree that solicitation of such a customer to acquire stock in a Competing Business during this time period would be
a violation of this Section 9(a).

 

(b)      No Recruitment of Personnel. During
the Executive’s employment with the Employer and for a period of 24 months thereafter, the Executive shall not, either directly
or indirectly, on the Executive’s own behalf or in the service or on behalf of others, (A) solicit, divert, or hire away, or (B)
attempt to solicit, divert, or hire away, to any Competing Business located in the Territory, any employee of or consultant to
the Employer or any of its Affiliates, regardless of whether the employee or consultant is full-time or temporary, the employment
or engagement is pursuant to written agreement, or the employment is for a determined period or is at will.

 

(c)      Non-Competition Agreement. During
the Executive’s employment with the Employer and for a period of 24 months following any termination (as opposed to expiration)
of this Agreement, the Executive shall not (without the prior written consent of the Employer) compete with the Employer or any
of its Affiliates by, directly or indirectly, forming, serving as an organizer, director or officer of, or consultant to, or acquiring
or maintaining more than a 1% passive investment in, a depository financial institution or holding company therefor if such depository
institution or holding company has, or upon formation will have, one or more offices or branches located in the Territory. This
restriction does not apply following a Change in Control.

 

(d)         
Notwithstanding the foregoing, the Executive may serve as an officer of or consultant to a
depository institution or holding company therefor even though such institution operates one or more offices or branches in the
Territory, if the Executive’s employment does not directly involve, in whole or in part, the depository financial institution’s
or holding company’s operations in the Territory. 

 

    	 	9	 

     

    

10.      Independent Provisions. The provisions in each
of the above Sections 9(a), 9(b), and 9(c) are independent, and the unenforceability of any one provision shall not affect the
enforceability of any other provision.

 

11.      Successors;
Binding Agreement. The rights and obligations of this Agreement shall bind and inure to the benefit of the surviving corporation
in any merger or consolidation in which the Employer is a party, or any assignee of all or substantially all of the Employer’s
business and properties. The Executive’s rights and obligations under this Agreement may not be assigned by him, except that his
right to receive accrued but unpaid compensation, unreimbursed expenses and other rights, if any, provided under this Agreement
which survive termination of this Agreement shall pass after death to the personal representatives of his estate.

 

12.      Notice.
For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and
shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage
prepaid, addressed to the respective addresses last given by each party to the other; provided, however, that all
notices to the Employer shall be directed to the attention of the Employer with a copy to the Secretary of the Employer. All notices
and communications shall be deemed to have been received on the date of delivery thereof.

 

13.      Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of South Carolina
without giving effect to the conflict of laws principles thereof. Any action brought by any party to this Agreement shall be brought
and maintained in a court of competent jurisdiction in State of South Carolina.

 

14.      Non-Waiver.
Failure of the Employer to enforce any of the provisions of this Agreement or any rights with respect thereto shall in no way
be considered to be a waiver of such provisions or rights, or in any way affect the validity of this Agreement.

 

15.      Enforcement.
The Executive agrees that in the event of any breach or threatened breach by the Executive of any covenant contained in Section
9(a), 9(b), or 9(c) hereof, the resulting injuries to the Employer would be difficult or impossible to estimate accurately, even
though irreparable injury or damages would certainly result. Accordingly, an award of legal damages, if without other relief,
would be inadequate to protect the Employer. The Executive, therefore, agrees that in the event of any such breach, the Employer
shall be entitled to obtain from a court of competent jurisdiction an injunction to restrain the breach or anticipated breach
of any such covenant, and to obtain any other available legal, equitable, statutory, or contractual relief. Should the Employer
have cause to seek such relief, no bond shall be required from the Employer, and the Executive shall pay all attorney’s fees and
court costs which the Employer may incur to the extent the Employer prevails in its enforcement action.

 

16.      Saving
Clause. If any term, provision or condition of this Agreement is determined to be invalid, illegal or unenforceable, the remaining
terms, provisions and conditions of this Agreement remain in full force, if the essential terms, provisions and conditions of
this Agreement for each party remain valid, binding and enforceable. It is the intention of the parties that, if any court construes
any provision or clause of this Agreement, or any portion thereof, to be illegal, void, or unenforceable because of the duration
of such provision or the area or matter covered thereby, such court shall reduce the duration, area, or matter of such provision,
and, in its reduced form, such provision shall then be enforceable and shall be enforced. The Executive and the Employer hereby
agree that they will negotiate in good faith to amend this Agreement from time to time to modify the terms of Sections 9(a), 9(b)
or 9(c), the definition of the term “Territory,” and the definition of the term “Business,” to reflect
changes in the Employer’s business and affairs so that the scope of the limitations placed on the Executive’s activities by Section
9 accomplishes the parties’ intent in relation to the then current facts and circumstances. Any such amendment shall be effective
only when completed in writing and signed by the Executive and the Employer. The parties agree that all of the terms, provisions
and conditions contained in Section 4 and Section 9 constitute essential terms, provisions and conditions of this Agreement. The
parties further agree that no part of Section 4 is independent of any part of Section 9, and that no part of Section 9 is independent
of any part of Section 4. If a material part of Section 9 is held by a court of competent jurisdiction to be invalid, illegal
or unenforceable and is not revised by the court to be enforceable and enforced, then all of Section 4 shall automatically become
void and unenforceable. If it is unclear or disputed whether the part of Section 9 held invalid, illegal or unenforceable (and
not so revised by the court) is material, the parties shall negotiate in good faith to reach agreement on materiality or immateriality,
and if they are unable to agree within a reasonable period of time, the part in question shall be deemed material. If the parties
agree the part in question is not material, they shall negotiate in good faith to agree upon a modification necessary to make
whole any party adversely affected by the holding of invalidly, illegality or unenforceability, and if they are not able to agree
upon such a modification within a reasonable period of time, a material part of Section 9 will be deemed to have been held by
a court of competent jurisdiction to be invalid, illegal or unenforceable. Each party agrees to maintain the status quo ante,
to the extent necessary to avoid gaining any advantage over the other party or causing the other party to suffer a disadvantage,
for so long as it is obligated to negotiate in good faith but the parties have not reached agreement. A violation of the covenant
in the preceding sentence shall result in a material part of Section 4 being deemed to be invalid, illegal or unenforceable.

 

    	 	10	 

     

    

17.      Certain
Definitions.

 

(a)      “Affiliate”
shall mean any business entity controlled by, controlling or under common control with the Employer.

 

(b)      “Business”
shall mean the operation of a depository financial institution, including, without limitation, the solicitation and acceptance
of deposits of money and commercial paper, the solicitation and funding of loans and the provision of other banking services,
or any other related business engaged in by the Employer or any of its Affiliates to a material extent as of the date of termination.

 

(c)      “Cause”
shall consist of any of (A) the commission by the Executive of a willful act (including, without limitation, a dishonest or fraudulent
act) or a grossly negligent act, or the willful or grossly negligent omission to act by the Executive, which is intended to cause,
causes or is reasonably likely to cause material harm to the Employer (including harm to its business reputation), (B) the indictment
of the Executive for the commission or perpetration by the Executive of any felony or any crime involving dishonesty, moral turpitude
or fraud, (C) the material breach by the Executive of this Agreement that, if susceptible of cure, remains uncured 10 days
following written notice to the Executive of such breach, (D) the receipt of any form of notice, written or otherwise, that
any regulatory agency having jurisdiction over the Employer intends to institute any form of formal or informal (e.g.,
a memorandum of understanding which relates to the Executive’s performance) regulatory action against the Executive or the Employer
or the Employer (provided that the Board of Directors determines in good faith, with the Executive abstaining from participating
in the consideration of and vote on the matter, that the subject matter of such action involves acts or omissions by or under
the supervision of the Executive or that termination of the Executive would materially advance the Employer’s compliance with
the purpose of the action or would materially assist the Employer in avoiding or reducing the restrictions or adverse effects
to the Employer related to the regulatory action); (E) the exhibition by the Executive of a standard of behavior within the scope
of his employment that is materially disruptive to the orderly conduct of the Employer’s business operations (including, without
limitation, substance abuse or sexual misconduct) to a level which, in the Board of Directors’ good faith and reasonable judgment,
with the Executive abstaining from participating in the consideration of and vote on the matter, is materially detrimental to
the Employer’s best interest, that, if susceptible of cure remains uncured 10 days following written notice to the Executive of
such specific inappropriate behavior; or (F) the failure of the Executive to devote his full business time and attention to his
employment as provided under this Agreement that, if susceptible of cure, remains uncured 30 days following written notice to
the Executive of such failure. In order for the Board of Directors to make a determination that termination shall be for Cause,
the Board must provide the Executive with an opportunity to meet with the Board in person.

 

    	 	11	 

     

    

(d)          
“Change in Control” shall mean a “change in control event,”
as set forth in Treasury Regulation § 1.409A-3(i)(5), with respect to the Executive that occurs after the date of this Agreement.

 

(e)          
“Competing Business” shall mean any business that, in whole or in part,
is substantially engaged in the Business or a business that is substantially similar to (and in competition with) the Business.

 

(f)          
“Disability” shall have the meaning set forth in Treasury Regulation §
1.409A-3(i)(4).

 

(g)         
“Notice of Termination” shall mean a written notice of termination from
the Employer or the Executive which specifies an effective date of termination, indicates the specific termination provision in
this Agreement relied upon, and, in the case of a termination for Cause, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

 

(h)      “Terminate,”
“terminated,” “termination,” or “Termination” of Employment” shall mean
separation from service as defined by Regulation 1.409A-1(h).

 

(i)      “Territory”
shall mean a radius of 15 miles from (i) the main office of the Employer or (ii) any branch or loan production office of the Employer.

 

18.        
Compliance with Regulatory Restrictions. Notwithstanding anything to the contrary herein,
and in addition to any restrictions stated in Section 4 hereof, any compensation or other benefits paid to the Executive shall
be limited to the extent required by any federal or state regulatory agency having authority over the Bank. The Executive agrees
that compliance by the Bank with such regulatory restrictions, even to the extent that compensation or other benefits paid to the
Executive are limited, shall not be a breach of this Agreement by the Bank.

 

19.        
Compliance with Dodd–Frank Wall Street Reform and Consumer Protection Act. Notwithstanding
anything to the contrary herein, any incentive payments to the Executive shall be subject to the Dodd–Frank Wall Street
Reform and Consumer Protection Act and any regulations promulgated, and any applicable stock exchange listing requirements adopted,
thereunder (collectively, the “DF Act”), including, but not limited to, clawbacks for such incentive payments as may
be required by the DF Act. The Executive agrees to such amendments, agreements, or waivers that are required by the DF Act or
requested by the Employer to comply with the terms of the DF Act. Executive agrees to comply with the terms of any incentive-based
compensation “claw back” policy, as in effect from time to time, adopted or that may be adopted by the Employer in
connection with the DF Act.

 

    	 	12	 

     

    

20.        
Compliance with Internal Revenue Code Section 409A. All payments that may be made
and benefits that may be provided pursuant to this Agreement are intended to qualify for an exclusion from Section 409A of the
Code and any related regulations or other pronouncements thereunder and, to the extent not excluded, to meet the requirements
of Section 409A of the Code. Any payments made under Sections 3 and 4 of this Agreement which are paid on or before the last day
of the applicable period for the short-term deferral exclusion under Treasury Regulation § 1.409A-1(b)(4) are intended to
be excluded under such short-term deferral exclusion. Any remaining payments under Sections 3 and 4 are intended to qualify for
the exclusion for separation pay plans under Treasury Regulation § 1.409A-1(b)(9). To the extent permissible, each payment
made under Sections 3 and 4 shall be treated as a “separate payment”, as defined in Treasury Regulation § 1.409A-2(b)(2),
for purposes of Code Section 409A. Further, notwithstanding anything to the contrary, all severance payments payable under the
provisions of Section 4 shall be paid to the Executive no later than the last day of the second calendar year following the calendar
year in which occurs the date of Executive’s termination of employment. None of the payments under this Agreement are intended
to result in the inclusion in Executive’s federal gross income on account of a failure under Section 409A(a)(1) of the Code. The
parties intend to administer and interpret this Agreement to carry out such intentions. However, Company does not represent, warrant
or guarantee that any payments that may be made pursuant to this Agreement will not result in inclusion in Executive’s gross income,
or any penalty, pursuant to Section 409A(a)(1) of the Code or any similar state statute or regulation. Notwithstanding any other
provision of this Agreement, to the extent that the right to any payment (including the provision of benefits) hereunder provides
for the “deferral of compensation” within the meaning of Section 409A(d)(1) of the Code, the payment shall be paid
(or provided) in accordance with the following:

 

(a) If the Executive is a “Specified Employee”
within the meaning of Section 409A(a)(2)(B)(i) of the Code on the date of the Executive’s termination (the “Separation
Date”), and if an exemption from the six month delay requirement of Code Section 409A(a)(2)(B)(i) is not available, then
no such payment that is payable on account of the Executive’s termination shall be made or commence during the period beginning
on the Separation Date and ending on the date that is six months following the Separation Date or, if earlier, on the date of the
Executive’s death. The amount of any payment that would otherwise be paid to the Executive during this period shall instead
be paid to the Executive on the first day of the first calendar month following the end of the period.

 

(b) Payments with respect to reimbursements of expenses
or benefits or provision of fringe or other in-kind benefits shall be made on or before the last day of the calendar year following
the calendar year in which the relevant expense or benefit is incurred. The amount of expenses or benefits eligible for reimbursement,
payment or provision during a calendar year shall not affect the expenses or benefits eligible for reimbursement, payment or provision
in any other calendar year.

 

21.        
Entire Agreement. This Agreement constitutes the entire agreement between the parties
hereto and supersedes all prior agreements, understandings and arrangements, oral or written, between the parties hereto with respect
to the subject matter hereof. Any waiver or modification of any term of this Agreement shall be effective only if it is set forth
in writing and signed by all parties hereto.

 

22.        
Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

[Signatures appear on following page.]

    	 	13	 

     

    

IN WITNESS WHEREOF, the Employer has
caused this Agreement to be executed and its seal to be affixed hereunto by its officers thereunto duly authorized, and the Executive
has signed and sealed this Agreement, effective as of the date first above written.

	 	 	 	FIRST COMMUNITY CORPORATION	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	ATTEST:	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	By:	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Name:	 	 	Name: Mitchell M. Willoughby	 
	 	 	 	 	 
	 	 	 	Title: Chairman of the Board	 
	 	 	 	 	 

	 	 	 	FIRST COMMUNITY BANK	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	ATTEST:	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	By:	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Name:	 	 	Name: Mitchell M. Willoughby	 
	 	 	 	 	 
	 	 	 	Title: Chairman of the Board	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	EXECUTIVE	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Michael C. Crapps	 

 

    	 	14	 

     

    

Exhibit A

 

Form of Release of Claims

 

SEVERANCE AGREEMENT AND RELEASE

 

This Severance Agreement and Release (the “Agreement”)
is made between Michael C. Crapps, an individual resident of South Carolina (“Employee”), and First Community Bank
(“FCB”) and its holding company, First Community Corporation (the “Company” and, together with FCB, the “Bank”).

 

As used in this Agreement, the term “Employee”
shall include the employee’s heirs, executors, administrators, and assigns.

 

On ___________, 2015, the Bank and Employee
entered into an Employment Agreement (the “Employment Agreement”) governing the relationship between the parties. Section
4(e) provides that the Bank may terminate the Employment Agreement without cause. Section 4 of the Employment Agreement also provides
that Employee shall be entitled to severance pay if the Employment Agreement is terminated without cause, on the condition that
Employee enter into this release or a substantially similar release.

 

Employee desires to receive severance pay and
the Bank is willing to provide severance pay on the condition the Employee enter into this Agreement.

 

Now, in consideration for the mutual promises
and covenants set forth herein, and in full and complete settlement of all matters between Employee and the Bank, the parties agree
as follows:

 

1.      Termination Date: The Employee agrees that his
employment with the Bank terminates as of ________________ (the “Termination Date”).

 

2.      Severance Payments: Subsequent to his Termination
Date, the Bank shall pay Employee severance pay as noted in Paragraph 4(e) of the Employment Agreement (the “Severance Payment”),
less applicable deductions and withholdings.

 

3.      Legal Obligations

 

The parties acknowledge that pursuant to Section
4(h) of the Employment Agreement, they agreed that at the time of termination and as a condition of payment of severance, they
would enter into this release acknowledging any remaining obligations and discharging each other from any other claims or obligations
arising out of or in connection with Employee’s employment by the Bank, including the circumstances of such termination.

 

Employee acknowledges that the Bank has no prior legal obligations
to make the payments described in Section 2 above which are exchanged for the promises of Employee set forth in this Agreement.
It is specifically agreed that the payments described in Section 2 are valuable and sufficient consideration for each of the promises
of Employee set forth in this Agreement and are payments in addition to anything of value to which Employee is otherwise entitled.

 

    	 	A-1	 

     

    

4.      Waiver and Release:

 

		a)	Employee unconditionally releases and discharges the Bank, entities affiliated with the Bank, and the respective current and
former officers, directors, shareholders, employees, and agents of them (collectively, the “Bank Released Parties”) from
any and all causes of action, suits, damages, claims, proceedings, and demands that the Employee has ever had, or may now have,
against any of the Bank Released Parties, whether asserted or unasserted, whether known or unknown, concerning any matter occurring
up to and including the date of the signing of this Agreement; provided that Employee is not releasing or discharging (i)
any right to enforce Section 4 of the Employment Agreement, or (ii) any exculpatory or indemnification (or advancement) provisions
set forth in the articles of incorporation or bylaws of the Bank.

 

		b)	Employee acknowledges that he is waiving and releasing, to the full extent permitted by law, all claims against the Bank Released
Parties, including (but not limited to) all claims arising out of, or related in any way to, his employment with the Bank or the
termination of that employment, including (but not limited to) any and all breach of contract claims, tort claims, claims of wrongful
discharge, claims for breach of an express or implied employment contract, defamation claims, claims under Title VII of the Civil
Rights Act of 1964 as amended, which prohibits discrimination in employment based on race, color, national origin, religion or
sex, the Family and Medical Leave Act, which provides for unpaid leave for family or medical reasons, the Equal Pay Act, which
prohibits paying men and women unequal pay for equal work, the Age Discrimination in Employment Act of 1967, which prohibits age
discrimination in employment, the Americans with Disabilities Act, which prohibits discrimination based on disability, the Rehabilitation
Act of 1973, the South Carolina Human Affairs Law, any and all other applicable local, state and federal non-discrimination statutes,
the Employee Retirement Income Security Act, the Fair Labor Standards Act, the South Carolina Payment of Wages Law and all other
statutes relating to employment, the common law of the State of South Carolina, or any other state, and any and all claims for
attorneys’ fees.

 

		c)	This Waiver and Release provision ((a) through (c) of this paragraph) shall be construed to release all claims to the full
extent allowed by law. If any term of this paragraph shall be declared unenforceable by a court or other tribunal of competent
jurisdiction, it shall not adversely affect the enforceability of the remainder of this paragraph.

 

		d)	The Bank unconditionally releases and discharges Employee from any and all causes of action, suits, damages, claims, proceedings,
and demands that the Bank has ever had, or may now have, against Employee, whether asserted or unasserted, whether known or unknown,
concerning any matter occurring up to and including the date of the signing of this Agreement with the exception of any claims
for breach of trust, or any act which constitutes a felony or crime involving dishonesty, theft, or fraud.

 

5.      Restrictive Covenants and Other Obligations

 

The parties agree that Section 5 – “Ownership of Work
Product,” Section 6 – “Protection of Trade Secret,” Section 7 – “Protection of Confidential
Information,” Section 8 – “Return of Materials,” Section 9 – “Restrictive Covenants,”
Section 10 – “Independent Provisions,” Section 15 – “Enforcement,” and Section 16 – “Savings
Clause,” of the Employment Agreement shall remain in full force and effect and that Employee will perform his obligations
under those sections and those sections of the Employment Agreement are incorporated by reference as if set forth fully herein.
In the event Employee breaches any obligation under this Section 5, the Bank’s obligation to make severance payments to Employee
shall terminate immediately and the Bank shall have no further obligations to Employee.

 

    	 	A-2	 

     

    

6.      Duty of Loyalty/Nondisparagement

 

The parties shall not (except as required by
law) communicate to anyone, whether by word or deed, whether directly or through any intermediary, and whether expressly or by
suggestion or innuendo, any statement, whether characterized as one of fact or of opinion, that is intended to cause or that reasonably
would be expected to cause any person to whom it is communicated to have a lowered opinion of the other party.

 

7.      Confidentiality Of The Terms Of This Agreement

 

Employee agrees not to publicize or disclose
the contents of this Agreement, including the amount of the monetary payments, except (i) to his immediate family; (ii) to his
attorney(s), accountant(s), and/or tax preparer(s); (iii) as may be required by law; or (iv) as necessary to enforce the terms
of this Agreement. Employee further agrees that he will inform anyone to whom the terms of this Agreement are disclosed of the
confidentiality requirements contained herein. Notwithstanding the foregoing, the parties agree that where business needs dictate,
Employee may disclose to a third party that he has entered into an agreement with the Bank, which agreement contains restrictive
covenants including noncompetition and nondisclosure provisions, one or more of which prohibit him from performing the requested
service.

 

Employee recognizes that the disclosure of any
information regarding this Agreement by him, his family, his attorneys, his accountants or financial advisors, could cause the
Bank irreparable injury and damage, the amount of which would be difficult to determine. In the event the Bank establishes a violation
of this paragraph of the Agreement by Employee, his attorneys, immediate family, accountants, or financial advisors, or others
to whom Employee disclosed information in violation of the terms of this Agreement, the Bank shall be entitled to injunctive relief
without the need for posting a bond and shall also be entitled to recover from Employee the amount of attorneys’ fees and
costs incurred by the Bank in enforcing the provisions of this paragraph.

 

8.      Continued Cooperation

 

Employee agrees that he will cooperate fully
with the Bank in the future regarding any matters in which he was involved during the course of his employment, and in the defense
or prosecution of any claims or actions now in existence or which may be brought or threatened in the future against or on behalf
of the Bank. Employee’s cooperation in connection with such matters, actions and claims shall include, without limitation,
being available to meet with the Bank’s officials regarding personnel or commercial matters in which he was involved; to
prepare for any proceeding (including, without limitation, depositions, consultation, discovery or trial); to provide affidavits;
to assist with any audit, inspection, proceeding or other inquiry; and to act as a witness in connection with any litigation or
other legal proceeding affecting the Bank. Employee further agrees that should he be contacted (directly or indirectly) by any
person or entity adverse to the Bank, he shall within 48 hours notify the then-current Chairman of the Board of the Bank. Employee
shall be reimbursed for any reasonable costs and expenses incurred in connection with providing such cooperation.

 

    	 	A-3	 

     

    

9.      Entire Agreement; Modification of Agreement

 

Except as otherwise expressly noted herein,
this Agreement constitutes the entire understanding of the parties and supersedes all prior discussions, understandings, and agreements
of every nature between them relating to the matters addressed herein. Accordingly, no representation, promise, or inducement not
included or incorporated by reference in this Agreement shall be binding upon the parties. Employee affirms that the only consideration
for the signing of this Agreement are the terms set forth above and that no other promises or assurances of any kind have been
made to him by the Bank or any other entity or person as an inducement for him to sign this Agreement. This Agreement may not be
changed orally, but only by an agreement in writing signed by the parties or their respective heirs, legal representatives, successors,
and assigns.

 

10.      Partial Invalidity

 

The parties agree that the provisions of this
Agreement and any paragraphs, subsections, sentences, or provisions thereof shall be deemed severable and that the invalidity or
unenforceability of any paragraph, subsection, sentence, or provision shall not affect the validity or enforceability of the remainder
of the Agreement.

 

11.      Waiver

 

The waiver of the breach of any term or provision
of this Agreement shall not operate as or be construed to be a waiver of any other subsequent breach of this Agreement.

 

12.      Successors and Assigns

 

This Agreement shall inure to and be binding
upon the Bank and Employee, their respective heirs, legal representatives, successors, and assigns.

 

13.      Governing Law

 

This Agreement shall be construed in accordance
with the laws of the state of South Carolina and any applicable federal laws.

 

14.      Headings

 

The headings or titles of sections and subsections
of this Agreement are for convenience and reference only and do not constitute a part of this Agreement.

 

15.      Notice

 

Any notice or communication required or permitted
under this Agreement shall be made in writing and sent by certified mail, return receipt requested, addressed as follows:

 

	 	If to Employee:
	 	 
	 	[INSERT]
	 	 
	 	If to the Bank:
	 	 
	 	[INSERT]

 

    	 	A-4	 

     

    

16.      Representations: Employee acknowledges that:

 

a)      He has read this Agreement and understands its meaning and
effect.

 

b)      He has knowingly and voluntarily entered into this Agreement
of his own free will.

 

c)      By signing this Agreement, Employee has waived, to the full extent permitted by law, all claims against the Bank based on any
actions taken by the Bank up to the date of the signing of this Agreement, and the Bank may plead this Agreement as a complete
defense to any claim the Employee may assert.

 

d)      He would not otherwise be entitled to the consideration described in this Agreement, and that the Bank is providing such consideration
in return for Employee’s agreement to be bound by the terms of this Agreement.

 

e)      He has been advised to consult with an attorney before signing
this Agreement.

 

f)      He has been given up to [21/45] days to consider the terms
of this Agreement.

 

g)     He has seven days, after Employee has signed the Agreement and it has been received by the Bank, to revoke it by notifying
the Chairman of the Board of his intent to revoke acceptance. For such revocation to be effective, the notice of revocation must
be received no later than 5:00 p.m. on the seventh day after the signed Agreement is received by the Bank. This Agreement shall
not become effective or enforceable until the revocation period has expired.

 

h)      He is not waiving or releasing any rights or claims that may arise after the date the Employee signs this Agreement.

 

As to Employee:

 

	 	 	 	 
	Date	 	Michael C. Crapps	 

 

As to FCB:

 

	 	 	 	 
	Date	 	[Title]	 

 

As to the Company:

 

	 	 	 	 
	Date	 	[Title]	 

 

    	 	A-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]