Document:

Form of Performance Award Agreements

 Exhibit 10.1 
 STATE STREET CORPORATION 
 2006 EQUITY INCENTIVE PLAN 
 [YEAR] Performance Award Agreement 
 Subject to
your acceptance of the terms set forth in this agreement (the “Agreement”), State Street Corporation (the “Company”) has awarded you a Performance Award, granted to you under the Company’s 2006 Equity Incentive Plan, as
amended (the “Plan”), which shall be payable if certain performance and other conditions are satisfied as described below. A copy of the Plan document and the Company’s Prospectus are located on this website for your reference. The
provisions of the Plan are incorporated herein by reference, and all terms used herein shall have the meaning given to them in the Plan, except as otherwise expressly provided herein. In the event of any conflict between the provisions of this
Agreement and the provisions of the Plan, the provisions of the Plan shall control. 
  

	1.	Grant of Performance Award. 

 You have been granted an award
(the “Award”) detailed in your Award statement on this website maintained by Smith Barney (the “Statement”) and pursuant to the State Street Corporation 2006 Equity Incentive Plan (the “Plan”) and the terms set forth
below. To be entitled to any payment under the Award, you must accept your award and in so doing agree to comply with the terms and conditions of this Agreement and the Award. All terms and conditions of this Award must have been satisfied. The
Award will be payable, if at all, based in part on the achievement by the Company of certain performance measures (described below and in Exhibit I) over the two-year period commencing January 1, [YEAR] and ending on December 31, [YEAR]
(the “Performance Period”). The date on which the Performance Period ends (DATE) is referred to herein as the “Maturity Date.” 
  

	2.	Performance Targets; Administrator Certification. 

 Whether
your Award will be paid and if so in what amounts will depend in part (i) as to [NUMBER] percent of the Award (the “EPS Portion”), on the Company’s achievement of specified earnings per share targets as described in
(a) below and in Exhibit I attached hereto and made a part hereof, and (ii) as to the remaining [NUMBER] percent of the Award (the “ROE Portion”), on the Company’s achievement of specified return on shareholders’ equity
targets as described in (b) below and in Exhibit I. 
 (a) Earnings Per Share (EPS). Subject to the other terms and conditions of
the Award, the Company’s fully diluted aggregated operating earnings per share from continuing operations (“EPS”) for the Performance Period will determine how much, if any, of the EPS Portion of the Award will be payable. Exhibit I
sets forth the EPS threshold that must be achieved if any of the EPS Portion is to be payable and the higher EPS target that must be achieved if the entire EPS Portion is to be payable, with interpolation for EPS performance between those limits.

 (b) Return on Equity (ROE). Subject to the other terms and conditions of the Award, the Company’s average return on
shareholders’ equity from operating results for continuing operations (“ROE”) will determine how much, if any, of the ROE Portion of the Award will be payable. Exhibit I sets forth the ROE threshold that must be achieved if any of the
ROE Portion is to be payable and the higher ROE targets that must be achieved if higher percentages, or the entirety, of the ROE Portion is to be payable, with interpolation for ROE performance between those limits. 
 The specific EPS and ROE performance targets for the Performance Period were established by the Administrator on [DATE] and are set forth on Exhibit I. Subject to the
other terms and conditions of the Award, payment under this Award will only be made if the Administrator certifies, following the close of the Performance Period, that the pre-established threshold performance targets have been exceeded on the
Maturity Date and then only to the extent of the level of performance so certified as having been achieved. 
  

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	3.	Form of Payment. 

 Any portion of the Award earned by reason
of the Administrator’s certification as described above will be payable in shares of the Company’s common stock (“Stock”) to you (or your beneficiary, in the case of your death) on or before the March 15 next following the
end of the Performance Period. The number of shares to be paid will be determined by multiplying the number of Units set forth in paragraph 1, above, by the Total Funding Percentage. For this purpose, “Total Funding Percentage” means the
sum of the weighted funding percentages achieved for each of the ROE and EPS performance targets, respectively, for the Performance Period as certified by the Administrator. 
  

	4.	Non - Transferability, Etc. 

 This Award shall not be
transferable otherwise than by will or the laws of descent and distribution. Any attempt by you (or in the case of your death, your beneficiary) to assign or transfer the Award, either voluntarily or involuntarily, contrary to the provisions hereof,
shall be null and void and without effect and shall render the Award itself null and void. 
  

	5.	Termination of Employment. 

 (a)        No amount shall be paid in respect of the Award in the event that you cease to be employed by the Company and its Subsidiaries due to Circumstances of Forfeiture prior to the end of the
Performance Period. If your employment with the Company and its Subsidiaries ceases by reason of: 
 (i)        Disability, death, or any reason other than for Circumstances of Forfeitures, then you shall be eligible to receive a pro-rated Award, taking into account the time between the date on which
your employment so terminated and the end of the Performance Period; 
 (ii)        Retirement then you shall be eligible to receive your Award without such pro-rata adjustment 
 subject to paragraph b, below. Any amount payable pursuant to this paragraph 5 shall be paid in accordance with paragraph 3. 
 (b)        Payment to you of any Award or pro-rated Award after termination of your employment otherwise than by reason of your death shall be subject to the conditions that until the date on which
the Award is paid you: 
 (i)        shall not, without the prior written consent of
the Company, (A)(1) solicit, directly or indirectly (other than through a general solicitation of employment not specifically directed to employees of the Company and its Subsidiaries) the employment of, (2) hire or employ, (3) recruit, or
(4) in any way assist another in soliciting or recruiting the employment of, or (B) induce the termination of the employment of, any person who within the previous 12 months was an officer or principal of the Company or any of its
Subsidiaries; 
 (ii)        shall not, without the prior written consent of the
Company, engage in the Solicitation of Business (as defined below) from any client on behalf of any person or entity other than the Company and its Subsidiaries. The term “Solicitation of Business” means the attempt through direct or
indirect contact by you or by any other person or entity with your assistance with a client with whom you have had or with whom persons supervised by you have had significant personal contact while employed by the Company and its Subsidiaries to
induce such client to (A) transfer its business from the Company and its Subsidiaries to any other person or entity, (B) cease or curtail its business with the Company and its Subsidiaries, or (C) divert a business opportunity from
the Company and its Subsidiaries to any other person or entity; and 
 (iii)        shall not engage whether directly or indirectly, in any manner or capacity as advisor, principal, agent, partner, officer, director, employee, member of any association, or otherwise, in
any business or activity which is at the time competitive with any business or activity conducted by the Company or any of 

  

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its direct or indirect Subsidiaries. If you do not comply with the above conditions, you shall receive no payment under this Award. Any determination by the
Administrator that you are, or have engaged in any prohibited conduct as described above shall be conclusive and binding on all persons. Notwithstanding the foregoing, this paragraph 5 (b) shall be inapplicable following a Change of Control.

 (c)        For purposes hereof; 
 (i)        “Retirement” means your attainment of age 55 and completion of 5 years of
service with the Company and its Subsidiaries or your attainment of age 65 and completion of five years of service with the Company and its Subsidiaries, 
 (ii)        “Disability” means (A) your inability to engage in any substantially gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in your death or can be expected to last for a continuous period of not less than 12 months (an “impairment”) or (B) if you, as a result of the impairment, receive income replacement benefits
for a period of not less than 3 months under a plan of the Company or a Subsidiary 
 (iii)        “Circumstances of Forfeiture” means the termination of your employment with the Company and its Subsidiaries either (A) voluntarily or (B) involuntarily and you are
classified by the Company as ineligible for rehire. 
  

	6.	Acceleration of Performance Award. 

 Notwithstanding anything
in this Agreement to the contrary, in the event of a Change of Control occurring prior to the Maturity Date, you shall be entitled at the time of such Change of Control to receive a cash payment equal to the adjusted fair market value of a share of
the Stock multiplied by the number of Units set forth in paragraph 1, above. For purposes of the preceding sentence, “adjusted fair market value” shall mean the higher of the 
 (i)        the highest average of the reported daily high and low prices per share of the Stock
during the 60-day period prior to the first date of actual knowledge by the Board of circumstances that resulted in a Change of Control, and 
 (ii)        if the Change of Control is the result of a transaction or series of transactions described in paragraph 1 or 2 of the definition of Change of Control in the Plan,
the highest price per share of the Stock paid in such transaction series of transactions (which in the case of a transaction described in paragraph 1 of such definition in the Plan shall be the highest price per share of the Stock as reflected in a
Schedule 13D filed by the person having made the acquisition). 
  

	7.	Changes in Capitalization or Corporate Structure. 

 The Award
is subject to adjustment pursuant to Section 7(b) of the Plan in the circumstances therein described. 
  

	8.	Amendments to Performance Units. 

 Subject to the specific
limitations set forth in the Plan, the Administrator may at any time suspend or terminate any rights or obligations relating to the Award prior to the Maturity Date without your consent. 
  

	9.	Compliance with Section 162(m). 

 The Administrator shall
exercise its discretion with respect to this Award in all cases so as to preserve the deductibility of payments under the Award against disallowance by reason of Section 162(m) of the Code. 
  

	10.	Shareholder Rights. 

 You are not entitled to any rights as a
Shareholder with respect to any shares of Stock subject to the Award until they are transferred to you. Without limiting the foregoing, you will have no right to receive dividends or amounts in lieu of dividends with respect to the shares of Stock
subject to the Award prior to any shares being transferred to you. 
  

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	11.	Withholding. 

 The Company shall be obligated to issue Stock
pursuant to this Agreement only if you first deliver to the Company funds sufficient to satisfy, or make other arrangements acceptable to the Company for satisfying, any tax withholding or similar withholding obligations to which the Company or its
Subsidiaries may be subject by reason of such transfer under this Award. You expressly acknowledge and agree that your rights hereunder are subject to your paying to the Company any applicable taxes required to be withheld in connection with the
Award in a form and manner satisfactory to the Company, including withhold to cover and sell to cover transactions. 
  

	12.	Employee Rights. 

 Nothing in this Award shall be construed
to guarantee you any right of employment with the Company or any Subsidiary or to limit the discretion of any of them to terminate your employment at any time, with or without cause. 
 By accepting this Award electronically, you will be deemed to have acknowledged and agreed that you are bound by the terms of this Agreement and the
Plan. The Agreement will take effect as a sealed instrument. 
  

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 Exhibit I 
 Performance Targets 
 [DATE] – [DATE] 
  
  
  

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 STATE STREET CORPORATION 
 2006 EQUITY INCENTIVE PLAN 
 SSgA [YEAR] Performance-Based Equity Award
Agreement 
 Subject to your acceptance of the terms set forth in this agreement (the “Agreement”), State Street Global Advisors business
unit of State Street Corporation (“SSgA”), has awarded you a Performance Award, granted to you under the SSgA [YEAR] Performance-Based Equity Program under the Company’s 2006 Equity Incentive Plan, as amended (the “Plan”),
which shall be payable if certain performance and other conditions are satisfied as described below. A copy of the Plan document and the Company’s Prospectus are located on this website for your reference. The provisions of the Plan are
incorporated herein by reference, and all terms used herein shall have the meaning given to them in the Plan, except as otherwise expressly provided herein. In the event of any conflict between the provisions of this Agreement and the provisions of
the Plan, the provisions of the Plan shall control. 
  

	1.	Grant of Performance Award. 

 You have been granted an award
(the “Award) detailed in your Award statement on this website maintained by Smith Barney (the “Statement”) and pursuant to SSgA [YEAR] Performance-Based Equity Program under the Plan and the terms set forth below. To be entitled to
any payment under the Award, you must accept your award and in so doing agree to comply with the terms and conditions of this Agreement and the Award. All terms and conditions of this Award must have been satisfied. The Award will be payable based
in part on the achievement by SSgA of certain performance measures (described below and in Exhibit I) over the three-year period commencing January 1, [YEAR] and ending on December 31, [YEAR] (the “Performance Period”). The date
on which the Performance Period ends (December 31, [YEAR]) is referred to herein as the “Maturity Date.” 
  

	2.	Performance Targets; Administrator Certification. 

 Whether
your Award will be paid and in what amounts will depend on SSgA’s achievement of the compounded annual growth in its Net Income Before Taxes (“NIBT”) during the Performance Period and the other terms and conditions as set forth
herein. 
 The specific NIBT performance targets for the Performance Period were established by the Administrator on [DATE] and are set forth on Exhibit I
attached hereto and made a part hereof. Subject to the other terms and conditions of the Award, payment under this Award will only be made if the Administrator certifies, following the close of the Performance Period, that the pre-established
threshold performance targets have been exceeded on the Maturity Date and then only to the extent of the level of performance so certified as having been achieved. 
  

	3.	Form of Payment. 

 Any portion of the Award earned by reason
of the Administrator’s certification as described above will be payable in shares of the Company’s common stock (“Stock”) to you (or your beneficiary, in the case of your death) on or before the March 15 next following the
end of the Performance Period. The number of shares to be paid will be determined by multiplying the number of Units set forth in paragraph 1, above, by the Total Funding Percentage. For this purpose, “Total Funding Percentage” means the
funding percentage achieved for the NIBT performance target, for the Performance Period as certified by the Administrator. 
 4. Non - Transferability,
Etc. 
 This Award shall not be transferable otherwise than by will or the laws of descent and distribution. Any attempt by you (or in the case of
your death, your beneficiary) to assign or transfer the Award, either voluntarily or involuntarily, contrary to the provisions hereof, shall be null and void and without effect and shall render the Award itself null and void. 
  

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	5.	Termination of Employment. 

 (a)        No amount shall be paid in respect of the Award in the event that you cease to be employed by the Company and its Subsidiaries due to Circumstances of Forfeiture prior to the date the award
is paid. If your employment with the Company and its Subsidiaries ceases by reason of: 
 (i)        Disability, death, or any reason other than for Circumstances of Forfeitures, then you shall be eligible to receive a pro-rated Award, taking into account the time between the date on which
your employment so terminated and the end of the Performance Period; or 
 (ii)        Retirement then you shall be eligible to receive your Award without such pro-rata adjustment 
 subject to paragraph b, below. Any amount payable pursuant to this paragraph 5 shall be paid in accordance with paragraph 3. 
 (b)        Payment to you of any Award or pro-rated Award after termination of your employment otherwise than by reason of your death shall be subject to the conditions that until the date on which
the Award is paid you 
 (i)        shall not, without the prior written consent of
the Company, (A)(1) solicit, directly or indirectly (other than through a general solicitation of employment not specifically directed to employees of the Company and its Subsidiaries) the employment of, (2) hire or employ, (3) recruit, or
(4) in any way assist another in soliciting or recruiting the employment of, or (B) induce the termination of the employment of, any person who within the previous 12 months was an officer or principal of the Company or any of its
Subsidiaries; and 
 (ii)        shall not, without the prior written consent of the
Company, engage in the Solicitation of Business (as defined below) from any client on behalf of any person or entity other than the Company and its Subsidiaries. 
 The term “Solicitation of Business” means the attempt through direct or indirect contact by you or by any other person or entity with your assistance with a client with whom you have had or with whom persons supervised by you have
had significant personal contact while employed by the Company and its Subsidiaries to induce such client to (A) transfer its business from the Company and its Subsidiaries to any other person or entity, (B) cease or curtail its business
with the Company and its Subsidiaries, or (C) divert a business opportunity from the Company and its Subsidiaries to any other person or entity. If you do not comply with the above conditions, you shall forfeit all rights to any and all unpaid
or unvested equity awards held by you, and the Company may seek injunctive relief in addition to, and not in lieu of, any other relief to which it may be entitled. Any determination by the Administrator that you are, or have engaged in any
prohibited conduct as described above shall be conclusive and binding on all persons. Notwithstanding the foregoing, this paragraph 5 (b) shall be inapplicable following a Change of Control or the Administrator’s determination that a
Covered Transaction has occurred. 
 (c)        For purposes hereof: 
 (i)        “Retirement” means your attainment of age 55 and completion of 5 years of
service with the Company and its Subsidiaries or your attainment of age 65 and completion of five years of service with the Company and its Subsidiaries. 
 (ii)        “Disability” means (A) your inability to engage in any substantially gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in your death or can be expected to last for a continuous period of not less than 12 months (an “impairment”) or (B) if you, as a result of the impairment, receive income replacement benefits
for a period of not less than 3 months under a plan of the Company or a Subsidiary. 
 (iii)        “Circumstances of Forfeiture” means the termination of your employment with the Company and its Subsidiaries either (A) voluntarily or (B) involuntarily and you are
classified by the Company as ineligible for rehire. 
  

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 (iv)        “Covered Transaction” means
the sale by the Company of all or substantially all of the assets of SSgA as determined by the Administrator. 
  

	6.	Non-Disclosure; Non-Competition. 

 By signing this Agreement
and accepting the Award, you: 
 (a)        shall hold in a fiduciary capacity for the benefit of the
Company all secret or confidential information, knowledge or data relating to SSgA, the Company, any of its Subsidiaries, and their respective businesses and Clients (as defined below), including but not limited to Clients’ identities and any
and all information regarding or relating to their business relationship with SSgA, the Company, or any of its Subsidiaries, which shall have been obtained by you during your employment by SSgA, the Company, or any of its Subsidiaries and which
shall not be or become public knowledge (other than by acts by you or your representatives in violation hereof), and you shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate
or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. The term “Client(s)” means any person or entity that is a customer or client of SSgA, the Company, or any of its Subsidiaries.

 (b)        for and during a period of 18 months following your termination of employment with the
Company and all of its Subsidiaries for any reason (other than death), shall not engage, either directly or indirectly, in any manner or capacity as advisor, principal, agent, partner, officer, director or employee of, or as consultant to Fidelity
Investments, Barclays Global Investors NA, Wellington Management Co, LLP, Bank of NY Mellon CP, Goldman Sachs Asset Management LP, BlackRock Inc. (each an “Institution) For purposes of this paragraph 6(b) each Institution shall also include any
subsidiary and affiliate of the Institution, including any successor entity to an Institution, by way of merger, acquisition (either of stock or substantially all of the assets), reorganization, change of name or other similar event occurring
subsequent to the date of this Award. If you do not comply with the above conditions, you shall forfeit all rights to any and all unpaid or unvested equity awards then held by you, and the Corporation may seek injunctive relief in addition to, and
not in lieu of, any other relief to which it may be entitled. Notwithstanding the foregoing, paragraph 6(b) shall be inapplicable following a Change of Control. 
 (c)        acknowledge that any and all inventions, discoveries, improvements, copyrighted works (including computer programs), trademarks, processes, systems, and developments
that are conceived, discovered or made solely or jointly during the term of your employment at State Street, whether or not patentable or eligible to be copyrighted, (hereinafter “Inventions”) shall be deemed made in the regular course of
your employment with State Street and within the scope of that employment and shall from the date of creation, be owned exclusively by State Street. Furthermore, you hereby assign to State Street, without the necessity of any further consideration,
all of your right, title and interest in and to any invention, in any and all media now known or hereafter developed throughout the universe, and State Street shall be entitled to obtain and hold same in its own name on all applicable patents,
registrations, At State Street’s request, you will reasonably cooperate with State Street to sign any documents necessary to protect and enforce any such rights in State Street. 
  

	7.	Acceleration of Performance Award. 

 Notwithstanding anything
in this Agreement to the contrary, in the event of a Change of Control or a Covered Transaction occurring prior to the Maturity Date, you shall be entitled at the time of such Change of Control to receive a cash payment equal to the adjusted fair
market value of a share of the Stock multiplied by the number of Units set forth in paragraph 1, above. For purposes of the preceding sentence, “adjusted fair market value” shall mean the higher of the (i) the highest average of the
reported daily high and low prices per share of the Stock during the 60-day period prior to the first date of actual knowledge by the Board of circumstances that resulted in a Change of Control, and (ii) if the Change of Control is the result
of a transaction or series of transactions described in paragraph 1 or 2 of the definition of Change of Control in the Plan, the highest price per 

  

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share of the Stock paid in such transaction series of transactions (which in the case of a transaction described in paragraph 1 of such definition in the
Plan shall be the highest price per share of the Stock as reflected in a Schedule 13D filed by the person having made the acquisition 
  

	8.	Changes in Capitalization or Corporate Structure. 

 The Award
is subject to adjustment pursuant to Section 7(b) of the Plan in the circumstances therein described. 
  

	9.	Amendments to Performance Units. 

 Subject to the specific
limitations set forth in the Plan, the Administrator may at any time suspend or terminate any rights or obligations relating to the Award prior to the Maturity Date without your consent. 
  

	10.	Compliance with Section 162(m). 

 The Administrator
shall exercise its discretion with respect to this Award in all cases so as to preserve the deductibility of payments under the Award against disallowance by reason of Section 162(m) of the Code. 
  

	11.	Shareholder Rights. 

 You are not entitled to any rights as a
Shareholder with respect to any shares of Stock subject to the Award until they are transferred to you. Without limiting the foregoing, you will have no right to receive dividends or amounts in lieu of dividends with respect to the shares of Stock
subject to the Award prior to any shares being transferred to you. 
  

	12.	Withholding. 

 The Company shall be obligated to issue Stock
pursuant to this Agreement only if you first deliver to the Company funds sufficient to satisfy, or make other arrangements acceptable to the Company for satisfying, any tax withholding or similar withholding obligations to which the Company or its
Subsidiaries may be subject by reason of such transfer under this Award. You expressly acknowledge and agree that your rights hereunder are subject to your paying to the Company any applicable taxes required to be withheld in connection with the
Award in a form and manner satisfactory to the Company. 
  

	13.	Employee Rights. 

 Nothing in this Award shall be construed
to guarantee you any right of employment with the Company or any Subsidiary or to limit the discretion of any of them to terminate your employment at any time, with or without cause. 
  

	14.	Provisions of the Plan. 

 The provisions of the Plan are
incorporated herein by reference, and all terms not otherwise defined herein shall have the meaning given to them in the Plan. In the event of any conflict between the provisions of this Agreement and the provisions of the Plan, the provisions of
the Plan shall control. You acknowledge that you have received a copy of the Plan and a copy of the Prospectus for the Plan. 
 If the Award and the
foregoing terms and conditions are acceptable to you, please sign the enclosed counterpart of this letter and return the same to the undersigned. By signing this letter, you acknowledge and agree that you are bound by the terms of the Agreement and
the Plan, and the Agreement will take effect as a sealed instrument. 
  

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 Exhibit I 
 Performance Targets 
 [DATE – DATE] 
  

			
	 Compounded Annual Growth Rate of
 NIBT for the Performance Period
	  	Total Funding Percentage

  

 5Form of Indemnification Agreement

 Exhibit 10(xv) 
 INDEMNIFICATION AGREEMENT 
 This Indemnification Agreement made this      day of             , 2008, between 1st Financial Services Corporation, a North Carolina corporation (the “Corporation”) and
                    , a director, officer, employee, agent, or representative (as hereinafter defined) of the Corporation (the
“Indemnitee”). 
 WHEREAS, the Corporation and the Indemnitee are each aware of the exposure
to litigation of officers, directors, employees, agents, and representatives of the Corporation as such persons exercise their duties to the Corporation, 
 WHEREAS, the Corporation and the Indemnitee are also aware of conditions in the insurance industry that have affected and may continue to affect the Corporation’s ability to
obtain appropriate liability insurance on an economically acceptable basis, 
 WHEREAS, the Corporation
desires to continue to benefit from the services of highly qualified, experienced, and otherwise competent persons such as the Indemnitee, and 
 WHEREAS, the Indemnitee desires to serve or to continue to serve the Corporation as a director, officer, employee, or agent or as a director, officer, employee, agent, or trustee of another corporation,
joint venture, trust, or other enterprise in which the Corporation has a direct or indirect ownership interest, for so long as the Corporation continues to provide, on an acceptable basis, adequate and reliable indemnification against certain
liabilities and expenses that may be incurred by the Indemnitee. 
 NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows. 
 1. Indemnification. Subject to the exclusions contained in section 9 of this Agreement, the Corporation shall indemnify the Indemnitee with
respect to his or her activities as a director, officer, employee, or agent of the Corporation and/or as a person who is serving or has served at the request of the Corporation (“representative”) as a director, officer, employee, agent, or
trustee of another corporation, joint venture, trust, or other enterprise, domestic or foreign, in which the Corporation has a direct or indirect ownership interest (an “affiliated entity”) against expenses (including, without limitation,
attorneys’ and experts’ fees, judgments, fines, and amounts paid or payable in settlement) actually and reasonably incurred (“Expenses”) in connection with any claim against Indemnitee that is the subject of any threatened,
pending, or completed action, suit, or other type of proceeding, whether civil, criminal, administrative, investigative, or otherwise and whether formal or informal (a “Proceeding”), to which Indemnitee was, is, or is threatened to be made
a party by reason of facts which include Indemnitee’s being or having been such a director, officer, employee, agent, or representative, to the extent of the highest and most advantageous to the Indemnitee, as determined by the Indemnitee, of
one or any combination of the following — 
  

	 	(a)	The benefits provided by the Corporation’s Articles of Incorporation (“Articles”) or Bylaws, or the Articles of Incorporation or Bylaws of an affiliated entity of
which the Indemnitee serves as a representative, in each case as in effect on the date hereof, 

  

	 	(b)	The benefits provided by the Corporation’s Articles or Bylaws, or the Articles of Incorporation or Bylaws of an affiliated entity of which the Indemnitee serves as a
representative, in each case as in effect at the time Expenses are incurred by the Indemnitee, 

  

	 	(c)	The benefits allowable under North Carolina law in effect at the date hereof or as amended to increase the scope of indemnification, 

  

	 	(d)	The benefits allowable under the law of the jurisdiction under which the Corporation exists at the time Expenses are incurred by the Indemnitee, 

	 	(e)	The benefits available under any liability insurance obtained by the Corporation in effect when a claim is made against Indemnitee, 

  

	 	(f)	The benefits available under any liability insurance obtained by the Corporation in effect at the time Expenses are incurred by the Indemnitee, and 

  

	 	(g)	Such other benefits as are or may be otherwise available to Indemnitee. 

 Combination of two or more of the benefits provided by (a) through (g) shall be available to the extent that the Applicable Document (as hereafter defined) does not require that the benefits provided therein
be exclusive of other benefits. The document or law providing for the benefits listed in items (a) through (g) above is called the “Applicable Document” in this Agreement. The Corporation hereby undertakes to use its best efforts
to assist Indemnitee, in all proper and legal ways, to obtain the benefits selected by Indemnitee under item (a) through (g) above. 
 For purposes of this Agreement, references to “other enterprises” shall include employee benefit plans for employees of the Corporation or of any affiliated entity, without regard to ownership of such plans; references to
“fines” shall include any excise taxes assessed on the Indemnitee with respect to any employee benefit plan; references to “serving at the request of the Corporation” shall include any service as a director, officer, employee, or
agent of the Corporation which imposes duties on, or involves services by, the Indemnitee with respect to an employee benefit plan, its participants, or beneficiaries; references to the masculine shall include the feminine; references to the
singular shall include the plural and vice versa; and if the Indemnitee acted in good faith and in a manner he or she reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan, he or she
shall be deemed to have acted in a manner consistent with the standards required for indemnification by the Corporation under the Applicable Documents. 
 2. Insurance. The Corporation shall maintain liability insurance for so long as Indemnitee’s services are covered hereunder, provided and to the extent that such insurance is available on a basis
acceptable to the Corporation. However, the Corporation agrees that the provisions hereof shall remain in effect regardless of whether liability or other insurance coverage is at any time obtained or retained by the Corporation. But payments made to
Indemnitee under an insurance policy obtained or retained by the Corporation shall reduce the obligation of the Corporation to make payments hereunder by the amount of the payments made under any such insurance policy. 
 3. Payment of Expenses. At Indemnitee’s request, after receipt of written notice under section 5 hereof and an undertaking in the form
of Exhibit A attached hereto by or on behalf of Indemnitee to repay such amounts so paid on Indemnitee’s behalf if it shall ultimately be determined under the Applicable Document that Indemnitee is not entitled to be indemnified by the
Corporation for such Expenses, the Corporation shall pay the Expenses as and when incurred by Indemnitee. That portion of Expenses representing attorneys’ fees and other costs incurred in defending any proceeding shall be paid by the
Corporation within 30 days after the Corporation receives the request and reasonable documentation evidencing the amount and nature of the Expenses, subject to its also having received such a notice and undertaking. 
 4. Additional Rights. The indemnification provided in this Agreement shall not be exclusive of any other indemnification or right to which
Indemnitee may be entitled and shall continue after Indemnitee has ceased to occupy a position as an officer, director, employee, agent, or representative as described in section 1 above with respect to Proceedings relating to or arising out of
Indemnitee’s acts or omissions during his or her service in such position. The benefits provided to Indemnitee under this Agreement for the Indemnitee’s service as a representative of an affiliated entity shall be payable if and only if
and only to the extent that reimbursement to Indemnitee by the affiliated entity with which Indemnitee has served as a representative, whether pursuant to agreement, applicable law, articles of incorporation or association, bylaws or regulations of
the entity, or insurance maintained by such affiliated entity, is insufficient to compensate Indemnitee for Expenses actually incurred and otherwise payable by the Corporation under this Agreement. Any payments in fact made to or on behalf of the
Indemnitee directly or indirectly by the affiliated entity with which Indemnitee served as a representative shall reduce the obligation of the Corporation hereunder. 
  

 2 

 5. Notice to Corporation. Indemnitee shall provide to the Corporation prompt written notice
of any Proceeding brought, threatened, asserted, or commenced against Indemnitee with respect to which Indemnitee may assert a right to indemnification hereunder; provided, however, that failure to provide such notice shall not in any way
limit Indemnitee’s rights under this Agreement. 
 6. Cooperation in Defense and Settlement. Indemnitee shall not make any
admission or effect any settlement without the Corporation’s written consent unless Indemnitee shall have determined to undertake his or her own defense in such matter and has waived the benefits of this Agreement. The Corporation shall not
settle any Proceeding to which Indemnitee is a party in a manner that would impose any Expense on Indemnitee without his or her written consent. Neither Indemnitee nor the Corporation will unreasonably withhold consent to the proposed settlement.
Indemnitee and the Corporation shall cooperate to the extent reasonably possible with each other and with the Corporation’s insurers in attempts to defend and/or settle such Proceeding. 
 7. Assumption of Defense. Except as otherwise provided below, the Corporation jointly with any other indemnifying party similarly notified
may assume Indemnitee’s defense in any Proceeding, with counsel mutually satisfactory to Indemnitee and the Corporation. After notice from the Corporation to Indemnitee of the Corporation’s election to assume such defense, the Corporation
will not be liable to Indemnitee under this Agreement for Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the
right to employ counsel in such Proceeding, but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense thereof shall be at Indemnitee’s expense unless: 
  

	 	(a)	The employment of counsel by Indemnitee has been authorized by the Corporation, 

  

	 	(b)	Counsel employed by the Corporation initially is unacceptable or later becomes unacceptable to Indemnitee and such unacceptability is reasonable under then existing circumstances,

  

	 	(c)	Indemnitee shall have reasonably concluded that there may be a conflict of interest between Indemnitee and the Corporation (or another party being represented jointly with the
Corporation) in the conduct of the defense of such Proceeding, or 

  

	 	(d)	The Corporation shall not have employed counsel promptly to assume the defense of such Proceeding, 

 in each of which cases the fees and expenses of counsel shall be at the expense of the Corporation and subject to payment pursuant to this Agreement. The Corporation shall not be entitled to assume the defense of
Indemnitee in any Proceeding brought by or on behalf of the Corporation or as to which Indemnitee shall have made either of the conclusions provided for in clauses (b) or (c) above. 
 8. Enforcement. If a dispute or controversy arises under this Agreement between Indemnitee and the Corporation with respect to whether the
Indemnitee is entitled to indemnification for any Proceeding or for Expenses incurred, then for each such dispute or controversy the Indemnitee may seek to enforce the Agreement through legal action or, at Indemnitee’s sole option and written
request, through arbitration. If the Indemnitee requests arbitration, the dispute or controversy shall be submitted by the parties to binding arbitration in the County of Henderson, State of North Carolina, before a single arbitrator agreeable to
both parties; provided, however, that indemnification for any claim, issue, or matter in a Proceeding brought against Indemnitee by or in the right of the Corporation and as to which Indemnitee is adjudged liable for negligence or misconduct
in the performance of his or her duty to the Corporation shall be submitted to arbitration only to the extent permitted under the Applicable Document and applicable law then in effect. If the parties cannot agree on a designated arbitrator within 15
days after arbitration is requested in writing by the Indemnitee, the arbitration shall proceed in the County of Henderson, State of North Carolina, before an arbitrator appointed by the American Arbitration Association. In either case, the
arbitration proceeding shall commence promptly under the rules then in effect of that Association. And the arbitrator agreed to by the parties or appointed by that Association shall be an attorney other than an attorney who has been or is associated
with a firm having associated with it an attorney who has been retained by or performed services for the Corporation or Indemnitee at any time during the five years preceding commencement of arbitration. The award shall be rendered in such form that
judgment may be entered thereon in any court having jurisdiction thereof. 

  

 3 

 
The prevailing party shall be entitled to prompt reimbursement of any costs and expenses (including, without limitation, reasonable attorneys’ fees)
incurred in connection with such legal action or arbitration; provided, however, that the Indemnitee shall not be required to reimburse the Corporation unless the arbitrator or court resolving the dispute determines that Indemnitee acted in
bad faith in bringing the action or arbitration. 
 9. Exclusions. Notwithstanding the scope of indemnification available to
Indemnitees from time to time under any Applicable Document, no indemnification, reimbursement or payment shall be required of the Corporation hereunder with respect to: 
  

	 	(a)	Any claim or any part thereof as to which Indemnitee shall have been determined by a court of competent jurisdiction, from which no appeal is or can be taken, by clear and
convincing evidence, to have acted with deliberate intent to cause injury to the Corporation or with reckless disregard for the best interests of the Corporation, 

  

	 	(b)	Any claim or any part thereof arising out of acts or omissions for which applicable law prohibits elimination of liability, 

  

	 	(c)	Any claim or any part thereof arising under Section 16(b) of the Securities Exchange Act of 1934 pursuant to which Indemnitee shall be obligated to pay any penalty, fine,
settlement or judgment, 

  

	 	(d)	Any obligation of Indemnitee based upon or attributable to the Indemnitee gaining in fact any improper personal benefit, gain, profit or advantage to which he or she was not
entitled, or 

  

	 	(e)	Any proceeding initiated by Indemnitee without the consent or authorization of the Board of Directors of the Corporation, provided that this exclusion shall not apply with respect
to any claims brought by Indemnitee (1) to enforce his or her rights under this Agreement or (2) in any Proceeding initiated by another person or entity whether or not such claims were brought by Indemnitee against a person or entity who
was otherwise a party to such proceeding. 

 Nothing in this section 9 shall eliminate or diminish the Corporation’s
obligations to advance that portion of Indemnitee’s Expenses representing attorneys’ fees and other costs incurred in defending any proceeding pursuant to section 3 of this Agreement. 
 Furthermore, anything herein to the contrary notwithstanding, nothing in this Agreement requires indemnification, reimbursement or payment by the
Corporation, and the Indemnitee shall not be entitled to demand indemnification, reimbursement or payment under this Agreement, if and to the extent indemnification, reimbursement or payment constitutes a “prohibited indemnification
payment” within the meaning of Federal Deposit Insurance Corporation Rule 359.1(l)(1) [12 CFR 359.1(l)(1)]. 
 10.
Extraordinary Transactions. The Corporation covenants and agrees that in the event of any merger, consolidation, or reorganization in which the Corporation is not the surviving entity, any sale of all or substantially all of the assets of the
Corporation, or any liquidation of the Corporation (each such event is hereinafter referred to as an “extraordinary transaction”), the Corporation shall – 
  

	 	(a)	Have the obligations of the Corporation under this Agreement expressly assumed by the survivor, purchaser or successor, as the case may be, in such extraordinary transaction, or

  

	 	(b)	Otherwise adequately provide for the satisfaction of the Corporation’s obligations under this Agreement, in a manner acceptable to Indemnitee. 

 11. No Personal Liability. Indemnitee agrees that neither the directors nor any officer, employee, representative, or agent of the
Corporation shall be personally liable for the satisfaction of the Corporation’s obligations under this Agreement, and Indemnitee shall look solely to the assets of the Corporation for satisfaction of any claims hereunder. 
  

 4 

 12. Severability. If any provision, phrase, or other portion of this Agreement is
determined by any court of competent jurisdiction to be invalid, illegal or unenforceable, in whole or in part, and such determination becomes final, such provision, phrase, or other portion shall be deemed to be severed or limited, but only to the
extent required to render the remaining provisions and portions of the Agreement enforceable, and the Agreement as thus amended shall be enforced to give effect to the intention of the parties insofar as that is possible. 
 13. Subrogation. If any payments are made under this Agreement, the Corporation shall be subrogated to the extent thereof to all rights to
indemnification or reimbursement against any insurer or other entity or person vested in the Indemnitee, who shall execute all instruments and take all other actions as shall be reasonably necessary for the Corporation to enforce such rights.

 14. Governing Law. The parties hereto agree that this Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of North Carolina. 
 15. Notices. All
notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or mailed, certified or registered mail, return receipt requested, with postage prepaid, to the
following addresses or to such other address as either party may designate by like notice. Unless otherwise changed by notice, notice shall be properly addressed to the Indemnitee if addressed to the address of the Indemnitee on the books and
records of the Corporation at the time of the delivery of such notice, and properly addressed to the Corporation if addressed to 1st Financial
Services Corporation, P.O. Box 6428, Hendersonville, North Carolina 28793. 
 16. Termination. This Agreement may be terminated
by either party upon not less than 60 days’ prior written notice delivered to the other party, but such termination shall not diminish the obligations of Corporation hereunder with respect to Indemnitee’s activities before the effective
date of termination. 
 17. Amendments and Binding Effect. This Agreement and the rights and duties of Indemnitee and the
Corporation hereunder may not be amended, modified or terminated except by written instrument signed and delivered by the parties hereto. This Agreement is binding upon and shall inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors, and assigns. 
 IN WITNESS WHEREOF,
the undersigned have executed this Agreement as of the date first above written. 
  

							
	INDEMNITEE	 		 	1ST
FINANCIAL SERVICES CORPORATION
				
	  
	 		 	By:	 	  

				
		 		 	Its:	 	  

  

 5 

 EXHIBIT A 
 FORM OF UNDERTAKING 
 THIS UNDERTAKING has been entered into by
                     (“Indemnitee”) pursuant to an Indemnification Agreement dated
                    , 2008 (the “Indemnification Agreement”), between 1st Financial Services Corporation (the “Corporation”), a North Carolina corporation, and Indemnitee. 
 RECITALS: 
 A. Under the Indemnification
Agreement, the Corporation has agreed to pay Expenses (within the meaning of the Indemnification Agreement) as and when incurred by Indemnitee in connection with any claim against Indemnitee that is the subject of any threatened, pending, or
completed action, suit, or proceeding, whether civil, criminal, or investigative, to which Indemnitee was, is, or is threatened to be made a party by reason of facts that include Indemnitee’s being or having been a director, officer, or
representative (within the meaning of the Indemnification Agreement) of the Corporation, 
 B. Such a claim has arisen against
Indemnitee and Indemnitee has notified the Corporation thereof in accordance with the terms of Section 5 of the Indemnification Agreement (hereinafter the “Proceeding”), and 
 C. Indemnitee believes that Indemnitee should prevail in the Proceeding, and it is in the interest of both Indemnitee and the Corporation to
defend against the claims against Indemnitee thereunder. 
 NOW, THEREFORE, Indemnitee
hereby agrees that in consideration of the Corporation’s advance payment of Indemnitee’s Expenses incurred before final disposition of the Proceeding, Indemnitee hereby undertakes to reimburse the Corporation for any and all expenses paid
by the Corporation on behalf of Indemnitee before final disposition of the Proceeding if the Indemnitee is determined under the Applicable Document (within the meaning of the Indemnification Agreement) to be required to repay such amounts to the
Corporation under the Indemnification Agreement and applicable law, provided that if Indemnitee is entitled under the Applicable Document to indemnification for some or a portion of such Expenses, Indemnitee’s obligation to reimburse the
Corporation shall only be for those Expenses for which Indemnitee is determined to be required to repay such amounts to the Corporation. Such reimbursement or arrangements for reimbursement by Indemnitee shall be consummated within 90 days after a
determination that Indemnitee is required to repay such amounts to the Corporation under the Indemnification Agreement and applicable law. 
 Further, the Indemnitee agrees to reasonably cooperate with the Corporation concerning such proceeding. 
 IN
WITNESS WHEREOF, the undersigned has set his or her hand this      day of             ,
20    . 
  

	
	  

	Indemnitee

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