Document:

Exhibit 4.1

 

	
  – NUMBER –

  	
  WWEBNET, Inc.

  	
  COMMON STOCK

  
	
        0111

  	
   

  	
  – SHARES –

  
	
   

  	
  INCORPORATED UNDER THE LAWS

  	
  **                       **

  
	
   

  	
  OF THE STATE OF NEVADA

  	
   

  
	
   

  	
   

  	
  SEE REVERSE FOR

  CERTAIN DEFINITIONS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP    98260M
  10 0

  

 

This Certifies That

 

is the owner of **

 

Fully paid and Non-Assessable Shares of Common Stock, $0.001 par value
of

 

WWEBNET, Inc.

 

transferable on the books of the Corporation by the holder hereof, or
by duly authorized attorney, upon surrender of this Certificate property
endorsed or accompanied by a proper assignment. 
This Certificate and the shares represented hereby are issued and shall
be held subject to all of the provisions of the Articles of Incorporation and
the Bylaws of the Corporation, and all amendments thereto, copies of which are
on file at the principal office of the Corporation, to all of which the holder
of this Certificate by acceptance hereof assents.  This Certificate is not valid unless
countersigned by the Transfer Agent.

 

WITNESS the facsimile seal of the Corporation and the facsimile
signatures of its duly authorized officers.

 

 

DATED:

 

	
  /s/ Robert C. Kelly

  	
   

  	
  

  	
   

  	
  /s/ Robert C. Kelly

  
	
  Robert C. Kelly

  President

  	
   

  	
   

  	
  Robert C. Kelly

  Secretary

  
	
   

  	
   

  	
   

  	
   

  

 

The shares represented by this certificate have not been registered
under either the Securities Act of 1933 or applicable State securities laws and
may not be sold, transfferred, assigned, offered, pledged or otherwise
distributed for value unless there is an effective Registration statement under
such Act and such laws covering such securities, or the Company receives an
opinion of counsel acceptable to the Company stating that such sale, transfer,
assignement, pledge or other distribution for value is exempt from the
registration and prospectus delivery requirements of such Act and such laws.

 

Sale or other transfer of these securities is further restricted for up
to 180 days following an initial publicoffering of securities of the Company by
the terms of the subscription agreement pursuant to which these securities were
initially purchased from the Company, a copy of which is available for
inspection at the offices of the Company.

 

	
  COUNTERSIGNED:

  	
   

  	
  Standard
  Registrar & Transfer Agengy, Inc.

  
	
   

  	
   

  	
  P.O. BOX
  14411, Albuquerque, New Mexico 87191

  

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transfer
  Agent and Registrar Authorized Signature

  

 

 

WWEBNET, Inc.

 

The following
abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to
applicable laws or regulations:

 

	
  TEN
  COM

  	
  - 
  as tenants in common

  	
  UNIF GIFT MINACT

  	
  -

  	
  Custodian

  
	
  TEN
  ENT

  	
  - 
  as tenants by the entireties

  	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
  JT
  TEN

  	
  - 
  as joint tenants with right of

  	
                                            under
  Uniform-Gifts to Minor Act

  
	
   

  	
     survivorship
  and not as tenants 

  	
   

  
	
   

  	
     in
  common

  	
   

  
	
   

  	
   

  	
   

  	
  (State)

  
								

 

	
   

  	
   

  	
  UNIF TRF MINACT

  	
   -

  	
  Custodian (until age                    )

  
	
   

  	
   

  	
   

  	
  under
  Uniform Transfers

  
	
   

  	
   

  	
   

  	
  (Minor)

  
							

 

Additional
abbreviations may also be used though not in the above list.

 

	
  For
  value
  received                                         hereby
  sell, assign and transfer unto

  	
   

  	
   

  
	
   

  	
   

  	
  PLEASE INSERT
  SOCIAL SECURITY OR OTHER

  
	
   

  	
   

  	
  IDENTIFYING
  NUMBER OF ASSIGNEE

  

 

 

(PLEASE PRINT OR TYPEWRITE
NAME AND ADDRESS, INCLUDING ZIP CODE OF ASSIGNEE)

 

	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
  Shares

  

of the common stock represented by the within
Certificate, and do hereby irrevocably constitute and appoint

 

	
   

  	
  Attorney

  
	
  to transfer the said stock
  on the books of the within named Corporation with full power of substitution
  in the premises.

  

 

	
  Dated

  	
   

  	
   

  

 

 

	
  x

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  x

  	
   

  	
   

  
	
   

  	
   

  	
  THE SIGNATURE(S) TO THE
  ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS WRITTEN UPON THE

  FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT
  OR ANY

  CHANGE WHATEVER.

  

 

 

Signature(s) Guaranteed

 

 

	
  By

  	
   

  	
   

  
	
  THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE
  GUARANTOR INSTITUTION, (BANKS, STOCKBROKERS,

  SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN
  APPROVED SIGNATURE GUARANTEE

  MEDALLION PROGRAM), PURSUANT TO S.E.C RULE 17Aa-15

  

 

TRANSFER FEE WILL APPLYExhibit 4.2

 

	
   

  	
   

  	
  INCORPORATED UNDER THE LAWS OF THE STATE OF NEVADA

  	
   

  	
   

  
	
  NUMBER

  	
   

  	
   

  	
   

  	
  SHARES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  -A-

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  Valu Flik, lnc.

  Series A Convertible Preferred Stock, Par Value $0.001
  per share

  	
   

  

 

This Certifies that                                           ***                                     ***
                                                                   is the registered holder of
                                                                                           
fully paid and non-assessable Shares of Series A Convertible Preferred stock,
$0.001 par value per share, of the above named corporation, transferable only
on the books of the corporation by the holder hereof in person or by Attorney
upon surrender of this certificate properly endorsed. 

 

In
Witness  Whereof, the said corporation has
caused this certificate to be signed by its duly authorized officers and its
corporate seal to be hereunto affixed

 

	
  this                        day

  	
   

  	
  of                          A.D.
  20           

  

 

	
  /s/ Robert C.
  Kelly

  	
   

  	
  [SEAL]

  	
   

  	
  /s/ Robert C.
  Kelly

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chairman

  	
   

  	
   

  	
   

  	
  President

  

 

© 1991 GOES MX

All Rights Reserved

 

 

THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR UNDER THE LAWS
OF ANY STATE. IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
ACT AND/OR APPLICABLE STATE LAWS, THESE SECURITIES MAY NOT BE OFFERED, SOLD,
HYPOTHECATED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF WITHOUT FIRST
OBTAINING THE COMPANY’S WRITTEN PERMISSION AND AN OPINION OF COUNSEL THAT IS
SATISFACTORY TO THE COMPANY AND OPINES THAT SUCH DISPOSITION IS EXEMPT FROM
SUCH REGISTRATION. A TRANSFER OF STOCK IN VIOLATION OF THESE RESTRICTIONS IS
VOIDABLE AT THE DISCRETION OF THE CORPORATION.

 

EACH SHAREHOLDER
UNDERSTANDS THAT THE COMPANY’S TRANSFER RECORDS WILL BE NOTED TO REFLECT THE
RESTRICTIONS ON TRANSFERABILITY OF THE SECURITIES CONTAINED HEREIN.

 

For Value
Received,             hereby
sell, assign and transfer unto                                                                                         
                                                                                                                                                     shares
represented by the within certificate, and do hereby irrevocably constitute and
appoint
                                                                                                       
                                              
attorney to transfer the said shares on the books of the within named
corporation with full power of substitution in the premises.

 

Dated                            A.D.
20             

 

In
presence of

 

 

NOTICE: THE SIGNATURE OF THIS ASSIGNMENT MUST
CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE, IN EVERY
PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.Exhibit
10.1

 

FLOATING RATE
SUBORDINATED NOTE

SERIES 2008-1

NOTE PURCHASE/LOAN
AGREEMENT

 

dated as of September 19, 2008

 

between

 

SOUTH CAROLINA BANK AND
TRUST, NATIONAL ASSOCIATION

as Issuer/Borrower

 

and

 

SUNTRUST BANK

as Purchaser/Lender

 

 

THIS SUBORDINATED CAPITAL NOTE PURCHASE/LOAN
AGREEMENT (this “Agreement”)  is
made as of September 19, 2008, by and between SOUTH CAROLINA BANK AND
TRUST, NATIONAL ASSOCIATION, a national banking association (the “Company”
or the “Borrower”), as the issuer of the Floating Rate Subordinated
Notes Series 2008-1 (the “Notes”) and the borrower thereunder, and SUNTRUST BANK, a Georgia
banking corporation, as the purchaser of, and lender under, the Notes (“SunTrust”
or the “Lender”).

 

W I T N E S S E T H:

 

The Company has requested SunTrust, and SunTrust has
agreed, subject to the terms and conditions of this Agreement, and in reliance
upon the representations, warranties and covenants of the Company herein, and
in the Notes and the other Transaction Documents to purchase the Notes and
thereby lend the Company $15,000,000, which the Company will treat as Tier 2
capital for bank regulatory purposes.

 

In consideration of the premises, the mutual
agreements contained in this Agreement and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
each party, the parties, intending to be legally bound, agree as follows:

 

ARTICLE I

 

DEFINITIONS; CONSTRUCTION

 

Section 1.1                                   Definitions.  The following terms have the definitions
shown below:

 

“1934 Act” means the Securities Act of
1934, as amended.

 

“BHC Act”
means the federal Bank Holding Company Act of 1956, as amended, and any
successor thereto.

 

“Borrower Parent”
means SCBT Financial Corporation, a South Carolina corporation and any successor
thereto, and any other
Person that is a “company” that “controls” the Company for purposes of the BHC
Act.

 

“Call Report” means,
with respect to the Borrower, the “Consolidated Reports of Condition and Income”
(FFIEC Form 031 or 041 or any successor form of the Federal Financial
Institutions Examination Council).

 

“Closing”
means the closing of the transactions contemplated herein and in the Notes.

 

“Closing Date”
means the date on
which the conditions precedent set forth in Section 3.1 have been
satisfied or waived in accordance with Section 9.2, and which, unless otherwise indicated, shall
be the date of this Agreement.

 

“Federal Reserve Reports”
shall mean the “Consolidated Financial Statements for Bank Holding Companies-FR
Y-9C”, the “Parent Company Only Financial
Statements for 

 

 

Large Bank Holding
Companies-FR Y-9LP”, or any successors thereto, and other reports
required to be filed with the Federal Reserve by the Borrower Parent.

 

“FDIC” means the Federal Deposit
Insurance Corporation and any successor thereto.

 

“OCC” means the Office of Comptroller
of the Currency and any successor thereto.

 

“Transaction Documents” mean this Agreement, the Notes, and any and all other instruments,
agreements, documents and writings delivered
at Closing in connection with any of the foregoing.

 

“Material Adverse Effect”
means any event, action, omission or condition that (i) has had or is
reasonably likely to have a material adverse effect on the condition (financial
or otherwise), earnings, cash flows, business or prospects of the Company and
whether or not arising in the ordinary course of business, (ii) has had or
is reasonably likely to have a material adverse effect on the Notes, the rights
of Holders of the Notes or the consummation or performance of the Transactions,
(iii) would limit or prevent the Notes from being included and recognized
by all applicable Governmental Authorities as Tier 2 capital for all purposes
to the fullest extent provided by the last sentence of Section 2(b)(4) of
Appendix A to 12 CFR Part 3, (iv) questions the validity or
enforceability of any Transaction Document, or (v) seeks to restrain,
enjoin, limit or prohibit the execution, delivery or performance of any of the
Transactions Documents or any of the Transactions.

 

“NASDAQ” means National
Association of Securities Dealers Automated Quotation System.

 

“Maturity Date” means September 30, 2015, unless the maturity of the Notes is
accelerated in accordance with the terms of the Notes to an earlier date.

 

Section 1.2                                   Terms
Generally.  All capitalized terms used in the Notes, and the
Interpretative Provisions of Exhibit 1 to the Notes are
incorporated herein by reference in full and shall apply to this Agreement.

 

ARTICLE II

 

AMOUNT AND TERMS OF THE SUBORDINATED TERM LOAN

 

Section 2.1                                   Subordinated
Term Loan and Subordinated Notes. 
Subject to the terms and conditions set forth herein, the Lender agrees
to purchase
the Notes from the Borrower on the Closing Date and thereby extend to the Borrower a loan in
the principal amount of FIFTEEN MILLION DOLLARS AND NO/100 ($15,000,000).

 

Section 2.2                                   Terms
of Notes.  The
terms of the Notes are hereby incorporated by reference into this Agreement in
full.

 

3

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

The Borrower and the Borrower Parent jointly and
severally represents and warrants to the SunTrust as follows:

 

Section 3.1                                   Organization; Authority.  The Company is a national banking association
duly organized, validly existing and in good standing under the laws of the
United States, and has the full corporate power and authority to own, lease and
operate its properties, to own its Subsidiaries, if any, to issue the Notes, to
conduct its business as presently conducted and as described in the Borrower Parent’s
latest SEC Reports on Forms 10-K and 10-Q, and to enter into and perform its
obligations under this Agreement, the Notes and the other Transaction
Documents.  The Borrower Parent is a bank
holding company, and it has been duly approved by and is registered with, the
Federal Reserve as a bank holding company under the BHC Act, and with all other
federal or state regulatory authorities that require registration or Approval
of the Borrower Parent as a holding company (“Other Banking Approvals”)
owning or controlling its Subsidiaries. 
The Company has all necessary authorizations, approvals, registrations,
qualifications, orders, licenses, certificates, decrees, consents and permits
(collectively, “Approvals”) needed to conduct its business, to own its Subsidiaries,
to issue the Notes, to conduct its business as presently conducted to enter
into and perform its obligations under this Agreement and the other Transaction
Documents, and to include the full amount of such Notes as Tier 2 capital for
all regulatory purposes to the fullest extent provided by the last sentence of Section 2(b)(4) of
Appendix A to 12 CFR Part 3, except to the extent that the failure to
obtain any such Approval has not had and is not reasonably likely to have a
Material Adverse Effect.  The Company has
duly authorized and outstanding capital stock as set forth in the information
provided to SunTrust, all of its outstanding shares of capital stock (“Company
Shares”) have been duly authorized and validly issued and are fully paid
and non assessable (except to the extent that shares may be assessable under
applicable federal or state banking Laws), and none of the outstanding Company
Shares was issued in violation of any preemptive or similar rights of any
shareholder of the Company.  The Company
is duly qualified to transact business as a corporation and is in good standing
in each jurisdiction where it owns or leases property or transacts business,
and where such qualification is necessary, except to the extent that the
failure to so qualify or to be in good standing has not had and is not
reasonably likely to have a Material Adverse Effect.

 

Section 3.2                                   No Conflicts. 
The execution, delivery and performance of the Transaction Documents to
which the Company is a party, and the consummation of the Transactions:

 

(a)                                  do
not require any consent or Approval under, do not and will not conflict with,
constitute a breach of, or a default or an event, which with notice, lapse of
time or both would be a default under, an event or condition that gives any
person the right to require the repurchase, redemption or repayment of all or a
portion of any note, debenture or other indebtedness of the Company (each a “Repayment
Event”); and

 

4

 

(b)                                 will
not result in the creation or imposition of any Lien upon any property or
assets of the Company or any of its Subsidiaries, under any contract,
indenture, mortgage, loan agreement, note, lease or other agreement or
instrument (“Contract”) to which the Company or any of its Subsidiaries
is a party or by which it or any of them may be bound, or to which any of the
property or assets of any of them is subject, except for a conflict, breach,
default, event or Lien which does not have and is not reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect, nor will any such
action result in any violation of any applicable Law or Approval, except for
those violations which, individually or in the aggregate are not reasonably
expected to have a Material Adverse Effect.

 

Section 3.3                                   Financial
Statements.

 

(a)                                  The
audited consolidated financial statements, including the notes and schedules
thereto, of the Borrower Parent, as of and for the last full three years (the “Annual
Financial Statements”) and the interim unaudited consolidated financial
statements of the Borrower Parent, as of and for the latest interim periods and
the corresponding interim periods of the immediately preceding year, (the “Interim
Financial Statements”, and collectively with the Annual Financial
Statements, the “Financial Statements”) provided to SunTrust have been
prepared in accordance with GAAP.  The
Borrower Parent’s Financial Statements conform to the requirements of the 1934
Act and all applicable United States Securities and Exchange Commission (“Commission”)
rules and regulations.  All
Financial Statements of the Company and the Borrower Parent fairly present in
all material respects in accordance with GAAP the consolidated financial
condition, earnings, cash flows and changes in shareholders’ equity as of the
dates and for the periods therein specified, subject, in the case of Interim
Financial Statements, only to normal recurring year-end audit adjustments that
are not material, and each has been certified as required by applicable Law.

 

(b)                                 The
Company’s most recent principal and quarterly Call Reports, and any such
subsequent reports, have been provided to the Lender, and the information
therein fairly presents in all material respects the financial position and
results of operation of the Company and its Subsidiaries, and the Borrower
Parent and its Subsidiaries, respectively, as of such date and for such
periods.

 

(c)                                  All
of the Borrower Parent’s Federal Reserve Reports, including those on Federal
Reserve Forms FRY-9 C and FRY-9LP and the various schedules and subreports
thereunder, for the last full year and any subsequent interim periods conform
in all material respects to the Federal Reserve’s requirements for such
reports, and all of the Company’s Call Reports submitted to its primary federal
regulators conform in all material respects to the Federal Financial
Institutions Examination Council’s (“FFIEC”) requirements for Call
Reports, and all such Federal Reserve Reports and Call Reports are accurate and
complete in all material respects and fairly present in all material respects
the reporting entity’s financial condition, earnings, cash flows (to the extent
a statement of cash flows is included pursuant to the requirements of such
form) and changes in shareholders’ equity as of the dates and for the periods
shown are not inconsistent with the Financial Statements and the Interim
Financial Statements as of and for the corresponding dates and periods.

 

5

 

(d)                                 Since
the respective dates as of which information is included in the most recent
Financial Statements, Interim Financial Statements, Federal Reserve Reports and
Call Reports, and except as specifically disclosed in Schedule A
attached hereto, there has not been (i) any event, action, omission or
condition that has had a Material Adverse Effect, (ii) any transactions
entered into by the Company, other than in the ordinary course of business,
that are material to the Company, (iii) except for regular quarterly cash
dividends on the Company’s common stock in the ordinary course of business, the
distribution of up to $8 million from the Company to the Borrower Parent as
referenced in Section 4.3 below, and dividends paid by any Subsidiary to
the Company, including increases, consistent with past practice, any dividend
or distribution of any kind declared, paid or made by the Company on its
capital stock, nor (iv) any other event, action, omission or condition
that is reasonably likely to have a Material Adverse Effect, acknowledging that
Lender is aware of the Company’s holdings of preferred shares of the Federal
Home Loan Mortgage Corporation as described in the Form 8-K filed with the
Commission by the Borrower Parent on September 9, 2008.

 

Section 3.4                                   Litigation
Matters.  There is no litigation,
investigation or proceeding of or before any arbitrators or Governmental
Authorities pending, or, to the knowledge of the Borrower, threatened against
or affecting the Company or any of its Subsidiaries as to which there is a reasonable
possibility of an adverse determination that could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

 

Section 3.5                                   Compliance
with Laws and Agreements.  Each
of the Company and each of its Subsidiaries and the Borrower Parent is in
compliance with all applicable Laws, and all commitments to, all applicable
Governmental Authorities, and all Approvals, except for those violations of
which, individually or in the aggregate, would not have a Material Adverse
Effect.

 

Section 3.6                                   Regulatory
Enforcement Matters.  None of the
Company, the Borrower Parent or any of their respective Subsidiaries, nor any
of their respective officers, directors, employees or representatives, is
subject or is party to, or has received any written notice from any
Governmental Authority that any of them is or expected to be a subject of or
party to any investigation with respect to, any cease-and-desist order,
agreement, civil monetary penalty, bar or suspension from the securities investment
or banking businesses, consent agreement, memorandum of understanding or other
regulatory enforcement action, proceeding or order with or by, or is a party to
any commitment letter or similar undertaking to, or is subject to any directive
by, or has been a recipient of any supervisory letter from, or has adopted any
board resolutions at the request or suggestion of, any Governmental Authority
that, in any such case, currently restricts in any material respect the conduct
of their business or that in any material manner relates to their capital
adequacy, the payment of or any restriction upon, the payment of dividends,
distributions or payments (other than as imposed by Law, generally), their
credit policies, their management or their business (each, a “Regulatory
Action”), nor has the Company or any of its Subsidiaries or the Borrower
Parent been advised by any Governmental Authority that it is considering
issuing or requesting any such Regulatory Action; and there is no unresolved
violation, criticism or exception by any Governmental Authority with respect to
any report or statement relating to any examinations of the Company or any of
its Subsidiaries 

 

6

 

(including the Borrower),
except where such unresolved violation, criticism or exception would not,
singly or in the aggregate, have a Material Adverse Effect.

 

Section 3.7                                   Investment
Company Act.  Neither the
Borrower nor the Borrower Parent is an “investment company”, as defined in, or
subject to registration or regulation under, the Investment Company Act of
1940, as amended.

 

Section 3.8                                   Taxes.  Each of the Company, the Borrower Parent and
their respective Subsidiaries has filed all federal, state, local and foreign
tax returns that are required to be filed or has duly requested extensions
thereof and has paid all taxes required to be paid by any of them and any
related assessments, fines or penalties, except for any such tax, assessment,
fine or penalty that is being contested in good faith and by appropriate
proceedings; and adequate charges, accruals and reserves have been provided for
in the Financial Statements or Interim Financial Statements in respect of all
federal, state, local and foreign taxes, including for all periods and amounts
as to which the tax liability of the Company, the Borrower Parent or their
respective Subsidiaries is being contested, has not been finally determined or
remains open to examination by applicable taxing authorities and where such
taxes have not become due and payable.

 

Section 3.9                                   Disclosure.
 The Company has disclosed to the Lender
all agreements, instruments, and corporate or other restrictions to which the
Company, the Borrower Parent or any of the Borrower Parent’s Subsidiaries is
subject or bound, and all other matters known to any of them, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  None of the
Call Reports, Federal Reserve Reports or any reports that the Borrower Parent
is required to file with the Commission, financial statements, certificates or
other information furnished by or on behalf of the Borrower to the Lender in
connection with the negotiation of this Agreement or any other Transaction
Document or delivered hereunder or thereunder (as modified or supplemented by
any other information so furnished or filed) contains any material misstatement
of fact or omits to state any material fact necessary to make the statements
therein, taken as a whole, in light of the circumstances under which they were
made, not misleading.

 

Section 3.10                            Capital.  On the Closing Date, each of the Borrower
and the Borrower Parent, and each depository institution Subsidiary of the
Borrower Parent, is “well-capitalized” for all bank regulatory purposes.

 

Section 3.11                            FDIC
Insurance.  The
deposits of the Borrower are insured by the FDIC to the fullest extent
permitted by Law, and no proceedings for the termination of such insurance are
pending or, to the knowledge of the Borrower, threatened.

 

Section 3.12                            OFAC.  None of the Company or the Borrower
Parent, nor any of their respective Subsidiaries (i) is a person whose
property or interest in property is blocked or subject to blocking pursuant to Section 1
of Executive Order 13224 of September 23, 2001 “Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism” (66 Fed. Reg. 49079 (2001)), (ii) engages in any
dealings or transactions prohibited by Section 2 of such executive order,
or is otherwise associated with any such person in any manner violative of Section 2,
or (iii) is a person on the list of Specially 

 

7

 

Designated Nationals and Blocked Persons or subject to
the limitations or prohibitions under any other U.S. Department of Treasury’s
Office of Foreign Assets Control regulation or executive order.

 

Section 3.13                            Patriot
Act, Etc.  Each of the Company, the
Borrower Parent and their respective Subsidiaries is in compliance, in all
material respects, with (i) the Trading with the Enemy Act, as amended,
and each of the foreign assets control regulations of the United States
Treasury Department (31 CFR,. Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto and (ii) the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Patriot Act”).  No
part of the proceeds of the Notes will be used, directly or indirectly, for any
payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended.

 

Section 3.14                            Certificates. 
No filing with, or Approval of, any Governmental Authority, other than
those that have been made or obtained and which remain in full force and effect
(and filings that are required to be made with the OCC and the Commission
pursuant to Section 4.4 below, which will be timely made after the
Closing), is necessary or required for the execution delivery and performance
of the Transaction Documents by the Company in connection with the issuance and
sale of the Notes or the consummation of the Transactions.  The Company is not required to obtain
approval from any Governmental Authorities having jurisdiction over the Company
and the Transactions of its intent to engage in the Transactions, and the Notes
meet the requirements of 12 CFR 3, Appendix A, section 2(b)(4), and comply with
the requirements under 12 CFR 5.47, Subordinated debt as capital, and other
relevant Government Authorities rules and regulations. The Company has no
reason to believe that the Notes will not be treated as Tier 2 capital.  The Company shall confirm such matters in an
officers’ certificate delivered to SunTrust at the Closing.

 

ARTICLE IV

 

COVENANTS

 

The Borrower covenants and agrees that so long as any
amount is owed under the Notes:

 

Section 4.1                                   Financial
Statements and Other Information.  The
Company will deliver to the Lender:

 

(a)                                  as
soon as available and in any event within 90 days after the end of each fiscal
year of the Borrower Parent, a copy of the annual audited report for such
fiscal year for the Borrower Parent and its Subsidiaries, containing a
consolidated balance sheet and the related consolidated statements of income,
of shareholders’ equity and comprehensive income, and of cash flows (together
with all footnotes thereto), setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and reported on
by independent public accountants of regionally recognized standing registered
with the Public Company Accounting Oversight Board (without a “going concern”
or like qualification, exception or 

 

8

 

explanation and without any qualification or exception
as to scope of such audit) to the effect that such financial statements present
fairly in all material respects the financial condition and the results of
operations and cash flows on a consolidated basis of the Borrower Parent and
its Subsidiaries for such fiscal year in accordance with GAAP and that the
examination by such accountants in connection with such financial statements
has been made in accordance with generally accepted auditing standards; provided, that the requirements set forth in this
clause (a) may be fulfilled by providing to the Lender the report of the
Company to the Commission on Form 10-K for the applicable fiscal year;

 

(b)                                 as
soon as available and in any event within 45 days after the end of each of the
first three fiscal quarters of each fiscal year of the Borrower Parent, an
unaudited balance sheet of the Borrower Parent and its Subsidiaries on a
consolidated basis as of the end of such fiscal quarter and the related
unaudited statements of income and cash flows of the Borrower Parent and its
Subsidiaries on a consolidated basis for such fiscal quarter and the then
elapsed portion of such fiscal year, setting forth in each case in comparative
form the figures for the corresponding quarter and the corresponding portion of
Borrower Parent’s previous fiscal year, all certified by the chief financial
officer  or treasurer  of
the Borrower Parent as presenting fairly in all material respects the financial
condition and results of operations of the Company and its Subsidiaries on a
consolidated basis in accordance with GAAP, subject to normal year-end audit
adjustments and the absence of footnotes; provided, that the requirements set forth in this clause (b) may be fulfilled by
providing to the Lender the report of the Company to the Commission on Form 10-Q
for the applicable fiscal quarter;

 

(c)                                  upon
filing and not later than the respective due dates, copies of the Borrower
Parent’s Federal Reserve Reports and copies of the Borrower’s Call Report;

 

(d)                                 promptly
upon filing or becoming available (and without charge to SunTrust or any
Holder) deliver copies of (i) all other publicly available reports or
other publicly available information that the Borrower Parent mails or
otherwise makes available to its shareholders and holders of securities, (ii) all
reports, financial statements and proxy or information statements filed by the
Borrower Parent with the Commission, NASDAQ or any other securities exchange,
and (iii) other nonconfidential information concerning the Company, the
Borrower Parent or their respective Subsidiaries as reasonably requested by
SunTrust or any Holder, including press releases, analysts’ reports and
communications with holders of Company or Subsidiary securities; and

 

(e)                                  all
amendments of the foregoing and all supplements and schedules to the foregoing.

 

Documents required to be delivered pursuant to Sections
5.1(a), 5.1(b), and 5.1(d) that are filed with, or
furnished to, the Commission electronically shall be deemed to have been
delivered to the Lender on the date (i) on which the Borrower Parent posts
such documents or provides a link thereto on the Borrower Parent’s website on
the internet at the website address set forth in Section 6.1; provided, that (A) the Borrower shall
deliver paper copies of such documents to the Lender if the Lender so requests
in writing until a further written notice is received by the Borrower from the
Lender to cease delivering paper copies and (B) the Borrower shall notify
the 

 

9

 

Lender of the posting of any such documents on the
website referred to in clause (i) immediately above.

 

Section 4.2                                   Notices
of Material Events.  The Borrower
will furnish to the Lender prompt written notice of the following:

 

(a)                                  the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or, to the knowledge of the
Company, affecting the Company, the Borrower Party or any of their respective
Subsidiaries which could reasonably be expected to result in a Material Adverse
Effect;

 

(b)                                 any
material investigation of the Company, the Borrower Parent, or any of their
respective Subsidiaries by any Governmental Agency having regulatory authority
over the Company or any such Subsidiaries (other than routine examinations of
the Borrower and/or any such Subsidiary);

 

(c)                                  the
issuance of any cease and desist order, written agreement, cancellation of
insurance or other public enforcement action by any Governmental Authority
having regulatory authority over the Company or any Subsidiary;

 

(d)                                 the
issuance of any memorandum of understanding or enforcement or regulatory action
(formal or informal) by or from any Governmental Authority having regulatory
authority over the Company or any Subsidiary, to the extent that the Company or
any such Subsidiary is permitted to disclose such information (provided that the Borrower shall take all
reasonable efforts to obtain any necessary regulatory consents);

 

(e)                                  any
other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

 

Each notice delivered under this Section shall be
accompanied by a written statement of a responsible officer setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

 

Section 4.3                                   Use
of Proceeds.  The Borrower will use the proceeds from the
sale of the Notes for general working capital purposes and regulatory capital.  No part of the proceeds from the sale
of the Notes, whether directly or indirectly, will be used by the Borrower, the
Borrower Parent, or their affiliates for any purpose that would violate any rule or
regulation of the Board of Governors of the Federal Reserve System, including
Regulations T, U or X.  The Borrower may
distribute up to $8 million of the proceeds from the sale of the Notes to Borrower
Parent, provided Borrower Parent
immediately contributes all such amounts into the equity capital accounts of
its other wholly-owned bank subsidiaries, and merges such bank subsidiaries
with and into Borrower by no later than March 31, 2009.  Borrower Parent represents, warrants and
covenants that it will and will cause the Borrower and its other bank
subsidiaries to perform this covenant timely.

 

Section 4.4                                   OCC Notice; Current Report on Form 8-K. 
Promptly following the Closing, but in no event more than ten days after
the Closing Date, the Borrower shall provide notice to OCC of the Borrower’s
issuance of the Notes, which notice shall
include the 

 

10

 

information required by, and
otherwise be made in compliance with, 12 C.F.R. §5.47(g) and 12
C.F.R. § 16.7(3).  Following the
Closing, Borrower Parent shall promptly and timely file with the Securities and
Exchange Commission a Current Report on Form 8-K reporting the entry into
this Agreement and the consummation of the transactions contemplated hereby.

 

ARTICLE V

 

CONDITIONS PRECEDENT TO NOTES PURCHASE

 

Section 5.1                                   Conditions
To Purchasing the Notes.  The obligations of SunTrust to purchase the Notes and extend credit to the Borrower thereunder
is subject to the receipt by SunTrust of the following documents in form and
substance reasonably satisfactory to SunTrust:

 

(a)                                  this
Agreement duly executed and delivered by the Borrower;

 

(b)                                 the
Note
substantially in the form of Exhibit A hereto duly executed and delivered by
the Borrower;

 

(c)                                  a
certificate of the Secretary or Assistant Secretary of the Borrower, attaching
and certifying copies of its articles of association, bylaws and of the
resolutions of its board of directors, authorizing the execution, delivery and
performance of the Transaction Documents and certifying the name, title and
true signature of each officer of the Borrower authorized to execute the
Transaction Documents;

 

(d)                                 a
certificate of existence issued by the Office of the Comptroller of the
Currency dated not more than five (5) Business Days prior to the Closing Date;

 

(e)                                  a
favorable written opinion of Nelson Mullins Riley & Scarborough LLP,
counsel to the Borrower, addressed to the Lender, and covering such matters
relating to the Borrower, the Transaction Documents and the transactions
contemplated therein as the Lender shall reasonably request;

 

(f)                                    a
certificate of Borrower, signed by the Chief Executive Officer or the Chief
Operating Officer and Chief Financial Officer or Treasurer of the Borrower,  certifying that:  (a) all
representations and warranties of the Borrower herein shall be true and correct
in all material respects on and as of the Closing Date, both before and immediately after
giving effect to this Agreement, and (b) since December 31, 2007, there has
been no change in the condition (financial or other), earnings, business,
prospects or assets of the Borrower and its Subsidiaries that is likely to have
a Material Adverse Effect; and

 

(g)                                 a
certificate of Borrower Parent, signed by the President and Chief Executive
Officer or the Chief Operating Officer and Chief Financial Officer or Treasurer
of the Borrower Parent, certifying that  all
representations and warranties of the Borrower Parent and its Subsidiaries
herein shall be true and correct in all material respects on and as of the
Closing Date, both before and immediately after giving effect to this Agreement;
and

 

11

 

(h)                                 the
payment of the placement fee owed to SunTrust Robinson Humphrey, Inc. in the
amount of $187,500.

 

ARTICLE VI

MISCELLANEOUS

 

Section 6.1            Notices.

 

(a)                                  Except
in the case of notices and other communications expressly permitted to be given
by telephone, all notices and other communications to any party herein to be
effective shall be in writing and shall be delivered by hand or reliable
overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows:

 

	
  To the Borrower:

  	
  South Carolina Bank and
  Trust, National Association

  520 Gervais Street

  Columbia, South Carolina 29201 

  
	
   

  	
   

  
	
  To the
  Lender:

  	
  SunTrust Bank
 303 Peachtree Street, 3rd Floor
 Atlanta, Georgia 30308

  

 

Notices sent by hand or reliable overnight courier
service, or mailed by certified or registered mail, shall be deemed to have
been given when received; notices sent by telecopier shall be deemed to have
been given when sent (except that, if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient).

 

Any party hereto may change its address or telecopy
number for notices and other communications hereunder by notice to the other
parties hereto.  All such notices and
other communications shall, when transmitted by overnight delivery, or faxed,
be effective when delivered for overnight (next-day) delivery, or transmitted
in legible form by facsimile machine, respectively, or if mailed, upon the
third Business Day after the date deposited into the mails or if delivered,
upon delivery; provided, that
notices delivered to the Lender shall not be effective until actually received
by the Lender at its address specified in this Section 6.1.  With
respect to any communications delivered or furnished by electronic
communication under Section 6.1, (i) such communications sent to an e-mail address shall be deemed received
upon the sender’s receipt of an acknowledgement from the intended recipient
(such as by the “return receipt requested” function, as available, return
e-mail or other written acknowledgement); provided,
that if such communications are not sent during the normal business
hours of the recipient, such communications shall be deemed to have been sent
at the opening of business on the next Business Day for the recipient, and (ii) 
communications posted to an internet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as 

 

12

 

described in the foregoing
clause (i) of notification that such communication is available and
identifying the website address therefor.

 

(b)                                 Any
agreement of the Lender herein to receive certain notices by telephone or
facsimile is solely for the convenience and at the request of the
Borrower.  The Lender shall be entitled
to rely on the authority of any Person purporting to be a Person authorized by
the Borrower to give such notice and the Lender shall not have any liability to
the Borrower or other Person on account of any action taken or not taken by the
Lender in reliance upon such telephonic or facsimile notice.

 

Section 6.2            Waiver; Amendments.

 

(a)                                  No
failure or delay by the Lender in exercising any right or power hereunder under
the Notes or any other Transaction Document, and no course of dealing between
the Borrower and the Lender, shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right
or power or any abandonment or discontinuance of steps to enforce such right or
power, preclude any other or further exercise thereof or the exercise of any
other right or power hereunder or thereunder. 
The rights and remedies of the Lender hereunder and under the other
Transaction Documents are cumulative and are not exclusive of any rights or
remedies provided by law.

 

(b)                                 No
amendment or waiver of any provision of this Agreement or the other Transaction
Documents, nor consent to any departure by the Borrower therefrom, shall in any
event be effective unless the same shall be in writing and signed by the Lender
in the case of a waiver by the Lender and the Borrower in the case of a waiver
by the Borrower, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

 

Section 6.3            Expenses; Indemnification.

 

(a)                                  The
Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of
the Lender (including, without limitation, the reasonable fees, charges and
disbursements of outside counsel and the allocated cost of inside counsel) in
connection with the preparation and administration of the Notes, this Agreement
and other Transaction Documents and any amendments, modifications or waivers
thereof (whether or not the Transactions contemplated in this Agreement, the
Notes or any other Transaction Document shall be consummated), and (ii) all
out-of-pocket costs and expenses (including, without limitation, the reasonable
fees, charges and disbursements of outside counsel and the allocated cost of
inside counsel) incurred by the Lender in connection with the enforcement or
protection of its rights in connection with this Agreement, including its
rights under this Section, or in connection with the Notes or the other
Transaction Documents, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of the Notes.

 

(b)                                 The
Company agrees to indemnify and hold harmless SunTrust and its Affiliates and
its directors, officers, employees, agents, representatives, and each person or
entity who controls SunTrust and its Affiliates within the meaning of Section 15
of the Securities Act or Section 20 of the 1934 Act, and their respective
heirs, and personal and legal representatives 

 

13

 

of such individuals,
against any and all costs, losses, expenses, claims, damages or liabilities,
joint, several, or individual actions, investigations or proceedings of any
nature (“Claims”), including the reasonable fees, charges and disbursements
of any counsel for any Indemnitee, all as incurred which may be incurred by any
Indemnitee, or asserted against any Indemnitee by the Borrower, the Borrower
Parent or their respective Subsidiaries or successors or any other Person,
arising out of, in connection with or as a result of (i) the
authorization, issuance or sale of the Notes the execution, delivery or
performance of this Agreement, the Notes or any other Transaction Document, the
performance by the Parties hereto of their respective obligations hereunder or
the consummation of any of the transactions contemplated hereby or by the Notes
or any other Transaction Document, (ii) any actual or proposed use of the
proceeds from the issuance and sale of the Notes, or (iii) any actual or
prospective Claim or relating to any of the foregoing, whether brought by the
Borrower, the Borrower Parent or any of their respective Affiliates or any
third Person and whether based on contract, tort, or any other theory and
regardless of whether any Indemnitee is a party thereto, provided, that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction in a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee.

 

(c)                                  Promptly
after receipt by an Indemnified Person of notice of the commencement of any
Claim, such Indemnified Person will, if a claim in respect thereof is to be
made against the Company under this Section 6.3, notify the Company in
writing of the commencement thereof; but the failure to so notify the Company
shall not relieve the Company from any liability hereunder, except and to the
extent it is materially prejudiced as a result thereof, and in any event shall
not relieve it from any liability which it may have otherwise than on account
of this Section 6.3, except to the extent that the failure to so notify
the other party is a defense to such other liability.

 

(d)                                 The
Borrower shall pay, and hold the Lender harmless from and against, any and all
present and future stamp, documentary, and other similar taxes with respect to
the Notes, this Agreement and any other Transaction Document, any collateral
described therein, or any payments due thereunder, and save the Lender harmless
from and against any and all liabilities with respect to or resulting from any
delay or omission to pay such taxes.

 

(e)                                  To
the extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to actual
or direct damages) arising out of, in connection with or as a result of, this
Agreement, any other Transaction Document, the transactions contemplated herein
or therein, the Notes or the use of proceeds thereof.

 

(f)                                    All
amounts due under this Section shall be payable promptly after written
demand therefor.

 

Section 6.4            Successors and Assigns.

 

(a)                                  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns, except that the
Borrower may not assign or transfer any of its rights or delegate any of its
obligations hereunder without 

 

14

 

the prior written consent
of the Lender (and any attempted assignment, delegation or transfer by the
Borrower without such consent shall be null and void).

 

(b)                                 The
Lender is purchasing the Notes without any view to “distribution” of such Notes
within the meaning of the Securities Act. The Lender may at any time sell some
or all the Notes, or participations or assignments in all or a portion of its
rights and obligations under this Agreement, the Notes and the other
Transaction Documents, provided
any such transfer shall be made in a manner that does not require the Company
to register the Notes under the Securities Act, the Disclosure Rules, or any
applicable state securities or blue sky laws. 
Any Holder of Notes shall be deemed to have all the same rights granted
to SunTrust hereunder and under the Notes and other Transaction Documents.

 

Section 6.5            Governing Law; Jurisdiction; Consent to Service of Process.

 

(a)                                  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York governing contracts made and to be performed entirely in the
State of New York, without regard to the conflict of laws provisions thereof
other than Section 5-1401 of the New York General Obligations Law.

 

(b)                                 The
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the non-exclusive jurisdiction of any Federal and/or state court
located in the State of Georgia and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Agreement or any
other Transaction Document or the transactions contemplated hereby or thereby,
or for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such court.  Each of the parties hereto agrees that a
final nonappealable judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by applicable Law.  Nothing
in this Agreement or any other Transaction Document shall affect any right that
the Lender may otherwise have to bring any action or proceeding relating to
this Agreement, then Notes or any other Transaction Document against the
Borrower or its properties in the courts of any jurisdiction.

 

(c)                                  The
Borrower irrevocably and unconditionally waives any objection which it
may now or hereafter have to the laying of venue of any such suit, action
or proceeding described in paragraph (b) of this Section and brought
in any court referred to in paragraph (b) of this Section.  Each of the parties hereto irrevocably
waives, to the fullest extent permitted by applicable law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

 

(d)                                 Each
party to this Agreement irrevocably consents to the service of process in the
manner provided for notices in Section 6.1.  Nothing in this Agreement or in any other
Transaction Document will affect the right of any party hereto to serve process
in any other manner permitted by law.

 

Section 6.6            WAIVER OF JURY TRIAL.  EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE 

 

15

 

LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF THIS AGREEMENT, THE NOTES OR ANY OTHER TRANSACTION DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY).

 

Section 6.7            Counterparts; Integration.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all such counterparts taken together shall be
deemed to constitute one and the same instrument.  This
Agreement, the Notes the other Transaction Documents, and any separate letter
agreement(s) relating to any fees payable to the Lender or any of its
Affiliates constitute the entire agreement among the parties hereto and thereto
regarding the subject matters hereof and thereof and supersede all prior
agreements and understandings, oral or written, regarding such subject matters.

 

Section 6.8            Survival.  All covenants, agreements,
representations and warranties made by the Borrower and the Borrower Parent
herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of
this Agreement and the purchase of the Notes, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Lender may have had notice or knowledge of any incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on
the Notes or any other amount payable or obligation under this Agreement or the
Notes is outstanding and unpaid.  The
provisions of Section 6.3, 6.5 and 6.6 shall survive
and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of all of Borrower’s obligations, or the
termination of this Agreement or any provision hereof.  All representations and warranties made
herein, in the certificates, reports, notices, and other documents delivered
pursuant to this Agreement or the Notes shall survive the execution and
delivery of this Agreement, the Notes 
and the other Transaction Documents, and the issuance and sale of the
Notes.

 

Section 6.9            Severability.  Any provision of this Agreement or any other
Transaction Document held to be illegal, invalid or unenforceable in any
jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of
such illegality, invalidity or unenforceability without affecting the legality,
validity or enforceability of the remaining provisions hereof or thereof; and
the illegality, invalidity or unenforceability of a particular provision in a
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

 

Section 6.10         Patriot
Act.  The Lender hereby
notifies the Borrower that pursuant to the requirements of the Patriot Act, it
is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow the Lender to identify the Borrower in
accordance with the Patriot Act.  The
Borrower shall, and shall cause each of its Subsidiaries to, provide to the
extent commercially reasonable, such information and take such other actions as
are reasonably requested by the Lender in order to assist the Lender in maintaining compliance with the Patriot
Act.

 

16

 

[Remainder of Page Intentionally
Left Blank]

 

17

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed, under seal
in the case of the Borrower, by their respective authorized officers as of the
day and year first above written.

 

	
   

  	
  SOUTH CAROLINA BANK AND TRUST, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/
  John C. Pollok

  
	
   

  	
   

  	
  Name: 

  	
  John C. Pollok

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/
  Susan M. Thigpen

  
	
   

  	
   

  	
  Name: 

  	
  Susan M. Thigpen

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

Joined in by SCBT Financial Corporation solely as to
the representations, warranties, and covenants made by the Borrower Parent and
executed under seal by its undersigned duly authorized officer as of the day
and year first above written.

 

	
   

  	
  SCBT FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ John C. Pollok

  
	
   

  	
   

  	
  Name: 

  	
  John C. Pollok

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  

 

18

 

Schedule A

 

19

 

THIS
OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION.  THIS NOTE IS NOT INSURED OR
GUARANTEED BY ANY GOVERNMENT AGENCY.

 

THIS
NOTE IS SUBORDINATED TO CLAIMS OF DEPOSITORS, IS UNSECURED, AND IS INELIGIBLE
AS COLLATERAL FOR A LOAN BY SOUTH CAROLINA BANK AND TRUST, NATIONAL ASSOCIATION
(THE “COMPANY”). THE NOTE IS ALSO JUNIOR AND SUBORDINATED TO SENIOR DEBT (AS
DEFINED HEREIN) WHETHER NOW EXISTING OR HEREAFTER CREATED, WHICH INCLUDES ALL
INDEBTEDNESS OWED BY THE COMPANY TO ITS SECURED AND GENERAL CREDITORS.

 

THIS
NOTE (OR ITS PREDECESSOR) IS EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND IS BEING ISSUED
IN A TRANSACTION NOT SUBJECT TO REGISTRATION UNDER THE SECURITIES ACT OR THE
SECURITIES OR BLUE SKY LAWS OF ANY STATE OR OTHER JURISDICTION.  ACCORDINGLY, THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT, AND HAS NOT BEEN REGISTERED OR QUALIFIED
UNDER ANY STATE OR FOREIGN SECURITIES OR BLUE SKY LAWS. THE ISSUANCE OF THIS
NOTE IS EXEMPT FROM THE REQUIREMENTS OF SECTION 16.3 OF THE SECURITIES
OFFERING DISCLOSURE RULES OF THE OFFICE OF COMPTROLLER OF THE CURRENCY (“OCC”)
SET FORTH AT PART 16 OF TITLE 12 OF THE CODE OF FEDERAL REGULATIONS (THE
“DISCLOSURE RULES”).

 

THIS NOTE MUST BE ISSUED IN MINIMUM
DENOMINATIONS OF $250,000 AND MAY NOT BE EXCHANGED OR TRANSFERRED FOR
NOTES OR DEBENTURES OF THE COMPANY IN SMALLER DENOMINATIONS.

 

SOUTH CAROLINA BANK AND TRUST, NATIONAL ASSOCIATION

 

FLOATING RATE SUBORDINATED NOTE

 

SERIES 2008-1

 

DATED AS OF SEPTEMBER 19, 2008

 

	
  U.S.
  $15,000,000.00

  	
   

  	
  No.-001-

  

 

FOR VALUE
RECEIVED, South Carolina Bank and Trust, National Association, a national
banking association (the “Company”), hereby promises to pay to SunTrust
Bank (“SunTrust”) at its offices at 303 Peachtree Street, Atlanta, GA
30308 or to any Holder or Holders at any other place as SunTrust or such other
Holders may from time to time designate the principal amount of FIFTEEN MILLION
DOLLARS ($15,000,000) on September 30, 2015 

 

 

(the “Maturity
Date”) and to pay interest thereon in arrears on each of March 31, June 30,
September 30, and December 31 of each year, including the Maturity
Date, or if any such day is not a Business Day, on the next succeeding Business
Day (each, an “Interest Payment Date, beginning on December 31,
2008, as provided below.

 

1.             Interest.

 

(a)           The interest rate for the initial
interest period from the date of disbursement of funds hereunder to September 30,
2008 shall be 6.7038% per annum. Thereafter, the interest rate on the
outstanding principal amount of this Note and any successor Note or Notes (the “Notes”)
at the rate equal to three-month LIBOR, as in effect for each Interest Reset
Period (as defined below), plus
3.50% per annum from September 30, 2008 until the Maturity Date.  Interest will be computed and paid on the
basis of a 360-day year and the actual number of days elapsed in the relevant
interest period.  Interest on the Notes
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of original issuance.  Interest shall also be due and payable when
these Notes shall become due and payable (whether at maturity or otherwise as
provided herein).  The Company shall pay
interest on overdue principal and interest to the extent all obligations of the
Company hereunder are not paid in full at maturity of this Note, to the extent
lawful and then permitted by OCC and Federal Reserve rules then applicable
to subordinated capital notes includible within Tier 2 capital, at a rate per
annum equal to the interest rate applicable from time to time plus 2% per annum
(“Default Interest”).  All Default
Interest shall be payable on demand.  For
purposes of payment of interest by the Company, three-month LIBOR in respect of
each Interest Payment Date shall be determined by SunTrust in accordance with
the provisions of the Notes.

 

(b)           The “LIBOR Determination Date”
is the second London business day prior to the “Interest Reset Date”,
which shall be the same date as each Interest Payment Date.  On each LIBOR Determination Date, SunTrust as
calculation agent hereunder (the “Calculation Agent”) will determine
LIBOR for the period (the “Interest Reset Period”) beginning on such
Interest Reset Date through the day immediately preceding the next succeeding
Interest Reset Date, as follows: SunTrust, as the Calculation Agent will
determine the offered rates for three-month U.S. Dollar deposits in the London
interbank deposit market, commencing on such Interest Reset Date, which are
specified on Reuters Screen LIBOR01 Page (or any successor page), or such
similar service as determined by the Calculation Agent that displays British
Bankers’ Association interest settlement rates for deposits in U.S. Dollars, as
of 11:00 A.M. (London, England time) two (2) LIBOR Business Days
prior to each Interest Reset Date; provided,
that if no such offered rate appears on such page, the rate used
will be the per annum rate of interest determined by SunTrust, as the
Calculation Agent, to be the rate at which deposits in U.S. Dollars for a
three-month period are offered to SunTrust in the London interbank deposit
market as of 10:00 A.M. (Atlanta, Georgia time), on the day which is two (2) LIBOR
Business Days prior to each Interest Reset Date. If Reuters Screen LIBOR01 is
replaced by another page, or if the Reuters service is replaced by a successor
service, then LIBOR means the replacement page or service selected by
SunTrust to display the London interbank offered rates of three major New York
City banks selected by SunTrust.  Rates
quoted must be based on a principal amount of at least U.S. $1,000,000.  If fewer than three New York City banks
selected by SunTrust are quoting rates, LIBOR for such Interest Reset Period
will be determined as of the last LIBOR Business Day 

 

2

 

preceding the LIBOR
Determination Date on which three-month LIBOR can be determined from the
Reuters Screen LIBOR01 Page.

 

The foregoing
provisions of Section 1 notwithstanding, and regardless of whether
SunTrust is a Holder of any of or all the Notes and prior to any Interest Reset
Date, SunTrust, as the Calculation Agent, shall have determined (which
determination shall be conclusive and binding upon the Company) that (a) by
reason of circumstances affecting the relevant London interbank deposit market,
adequate means do not exist for ascertaining LIBOR, or (b) LIBOR does not
adequately and fairly reflect the cost to SunTrust of maintaining the funding
for the Notes, SunTrust, as the Calculation Agent, shall give written notice
(or telephonic or facsimile notice, promptly confirmed in writing) to the
Company and the other Holders of Notes, if any, as soon as practicable
thereafter.  Until SunTrust notifies the
Company that the circumstances giving rise to such notice no longer exist,
interest on the Note shall be calculated at the Base Rate, as in effect from
time to time, plus 1.00%  per annum.

 

(c)           If any change in Law shall:

 

(i)            impose, modify or deem applicable
any reserve, special deposit or similar requirement against assets of, deposits
with or for the account of, or credit extended by SunTrust hereunder, including
the full principal amount of the Note and any accrued but unpaid interest and
Default Interest, if any; or

 

(ii)           impose on SunTrust or the London
interbank deposit market any
other condition affecting this Note and the result of the foregoing is to
increase the cost to SunTrust of maintaining the full amount provided to the
Company hereunder or to reduce the amount received or receivable by SunTrust
hereunder (whether of principal, interest or any other amount), then the
Company shall promptly pay, upon written notice from and demand by SunTrust,
for and on behalf of itself and any other Holder, within five (5) LIBOR
Business Days after the date of such notice and demand, such additional amount
or amounts sufficient to compensate SunTrust for such additional costs incurred
or reduction suffered.

 

If SunTrust as
Calculation Agent shall have determined that on or after the date of this
Agreement any change in Law regarding capital requirements has or would have
the effect of reducing the rate of return on SunTrust’s capital (or on the
capital of any parent company of SunTrust) as a consequence of its obligations
hereunder to a level below that which SunTrust or any SunTrust or the Holder’s
parent company could have achieved but for such change in Law (taking into
consideration the policies of SunTrust and its parent companies with respect to
capital adequacy) then, from time to time, within five (5) Business Days
after receipt by the Company of written demand by SunTrust, the Company shall
pay to SunTrust and the other Holders, if any, such additional amounts as will
compensate SunTrust for any such reduction suffered.

 

A certificate
of SunTrust setting forth the amount or amounts necessary to compensate
SunTrust shall be delivered to the Company and shall be conclusive, absent
manifest error.  The Company shall pay
Holders such amount or amounts within 10 days. 
Any failure or delay on the part of SunTrust to demand compensation
pursuant to this Section shall not constitute a waiver 

 

3

 

of Holders’
right to receive, and the Company’s obligation hereunder to pay, such
compensation.  Any additional
compensation due hereunder as a result of this Section shall be paid to
Holders of Notes pro rata to the
principal amount of Notes held by each of them.

 

(d)           In no event shall the amount of
interest due or payable hereunder or any other fees or charges exceed the
maximum rate of interest allowed by applicable law, and in the event any such
payment is inadvertently paid by the Company or inadvertently received by any
Holder, then the Holder promptly upon such determination shall return such
excess sum.  It is the express intent
hereof that the Company not pay and the Holder not receive, directly or
indirectly, in any manner whatsoever, interest in excess of that which may be
lawfully paid by the Company under applicable law.

 

2.             Method of Payment.  The Company will pay all accrued and unpaid
interest on this Note, except as to Default Interest, to SunTrust and any other
Holders, at the close of business on the day immediately preceding the Interest
Payment Date, even if this Note is to be assigned or redeemed immediately after
the Interest Payment Date, and on or before such Interest Payment Date, as
provided herein with respect to Default Interest.  The Notes will be payable by wire transfer of
immediately available funds with respect to principal of, and interest
(including Default Interest, if any) on, all Notes the Holders of which have
$500,000 or more principal amount of such Notes and who have provided
appropriate wire transfer instructions to the Company.  Such payment shall be made in such lawful
coin and currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.  All
payments on the Notes shall be applied first to accrued interest and the
balance, if any, to principal.  The
Company’s obligations to pay the principal of, and interest (including Default
Interest) on, the Notes shall be evidenced by the Notes and the records of
SunTrust.  The calculations of the
interest rate and entries made in such records shall be prima facie evidence
of the existence and amounts of the obligations of, and payments by, the
Company therein recorded;  provided, that the failure or delay of
SunTrust in maintaining or making such records or any error therein shall not
in any manner affect the obligation of the Company to pay the principal of, and
interest (including Default Interest) in accordance with the terms of the
Notes.

 

3.             Form and Dating.  The Notes may have notations, legends or
endorsements required by law and agreements to which the Company is
subject.  The Notes shall be issued
initially in minimum denominations of $250,000 and integral multiples thereof,
and may be transferred only in minimum denominations of $250,000 and integral
multiples thereof.

 

4.             Redemption.  The Company shall have the option, but not
the obligation, to redeem the Notes in full, or in part in the minimum amount
of $1,000,000 each, on any Interest Payment Date upon not less than 30 days’
prior notice to all Holders at any time prior to the Maturity Date upon full
payment of such principal amount and interest (including Default Interest, if
any) without any premium, subject to OCC approval or any approval required by
its then applicable regulators, if such approval is then required under relevant
laws and regulations. In such case, all of the Company’s obligations under the
Notes shall terminate.

 

5.             Persons Deemed Owners.  The registered Holder of a Note may be
treated as its owner for all purposes. 
The Notes or any interest therein may be assigned or otherwise
transferred by the registered Holders thereof, provided
any such transfer shall be made in a 

 

4

 

manner that does not
require the Company to register the Notes under the Securities Act, the
Disclosure Rules, or any applicable state securities or blue sky laws.  The Company shall register any assignment or
transfer of the Notes promptly upon receipt of a completed Assignment Form as
attached hereto and confirmation from, a registered Holder of compliance
herewith.

 

6.             Amendment, Supplement and Waiver.  Subject to
certain exceptions hereinafter set forth, the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in
principal amount of the then outstanding Notes (including consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Notes),
and any existing Default or Event of Default (other than a Default or Event of
Default in the payment of the principal of or interest (including Default
Interest, if any), if any, on the Notes, except a payment default resulting
from an acceleration that has been rescinded) or compliance with any provision
of the Notes, may be waived with the consent of the Holders of a majority in
principal amount of the then outstanding Notes (including consents obtained in
connection with a purchase of or tender offer or exchange for Notes).  Without the consent of any Holder of a Note,
the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place
of certificated Notes, to provide for the assumption of the Company’s
obligations to the Holders of the Notes in the case of a merger, consolidation
or sale of all or substantially all of the assets of the Company, or to make
any change that would provide any additional rights or benefits to the Holders
of the Notes or that does not adversely affect the legal rights under the Notes
of any such Holder.

 

7.             Subordination.

 

(a)           The indebtedness of the Company
evidenced by the Notes, including the principal and interest (including Default
Interest, if any), shall be subordinate and junior in right of payment to its
obligations to its depositors, its obligations under bankers’ acceptances and
letters of credit, and its obligations to its other creditors, including its
obligations to the Federal Reserve Bank, the Federal Deposit Insurance
Corporation (“FDIC”), and any rights acquired by the FDIC as a result of
loans made by the FDIC to the Company or the purchase or guarantee of any of
its assets by the FDIC pursuant to the provisions of 12 USC 1823(c), (d) or
(e), whether now outstanding or hereafter incurred. In the event of any
insolvency, receivership, conservatorship, reorganization, readjustment of
debt, marshaling of assets and liabilities or similar proceedings or any
liquidation or winding up of or relating to the Company, whether voluntary or
involuntary, all such obligations shall be entitled to be paid in full before
any payment shall be made on account of the principal of, or interest
(including Default Interest, if any), on the Notes. In the event of any such
proceedings, after payment in full of all sums owing on such prior obligations,
the Holders, of the Notes, together with any obligations of the Company ranking
on a parity with the Notes, shall be entitled to be paid from the remaining
assets of the Company the unpaid principal thereof and any unpaid premium, if
any, and interest before any payment or other distribution, whether in cash,
property, or otherwise, shall be made on account of any capital stock or any
obligations of the Company ranking junior to the Notes. Nothing herein shall
impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on the Note according to its
terms.

 

(b)           In addition, upon or in the event of
any distribution to creditors of the Company (i) in a total or partial
liquidation or dissolution of the Company; (ii) in a bankruptcy, 

 

5

 

reorganization,
insolvency, receivership, conservatorship or similar proceeding relating to the
Company or its property; (iii) in an assignment for the benefit of
creditors of the Company; or (iv) in any marshalling of the Company’s
assets and liabilities:

 

(i)            holders of Senior Debt shall be
entitled to receive payment in full in cash of all Obligations due or to become
due in respect of such Senior Debt (including interest after the commencement
of any such proceeding at the rates specified in the applicable Senior Debt)
before the Holders of Notes shall be entitled to receive any payment or
distribution with respect to the Notes or on account of any Claim; and

 

(ii)           until all Obligations with respect to
Senior Debt (as provided in the immediately preceding paragraph (i)) are paid
in full in cash, any payment or distribution (including any payment or
distribution that may be payable or deliverable by reason of the payment of any
other Indebtedness of the Company being subordinated to the payment of the
Notes) to which the Holders of Notes would be entitled but for this Section 7
shall be made to holders of Senior Debt;

 

except that,
in either case, Holders of Notes may receive payments and other distributions
made from any fund held in trust for the benefit of Holders of the Notes.

 

(c)           The Company may not make any payment
or distribution (including any payment or distribution that may be payable or
deliverable by reason of the payment of any other Indebtedness of the Company
being subordinated to the payment of the Notes) to any Holder of Notes in
respect of Obligations or Claims with respect to the Notes and may not acquire
from any Holder of Notes any Notes for cash or property (except that Holders of
Notes may receive payments and other distributions made from any funds held in
trust for the benefit of Holders of the Notes), until all principal, interest
and other Obligations with respect to the Senior Debt have been paid in full in
cash if:

 

(i)            a default occurs in the payment when
due of the principal of, interest on, or any other Obligation with respect to,
any Senior Debt;

 

(ii)           a default, other than a payment
default, occurs and is continuing with respect to any Senior Debt that permits
the holders of Senior Debt as to which such default relates to accelerate its
maturity and the Company receives a notice of such default (a “Payment
Blockage Notice”) from the Representative of any Senior Debt.

 

The Company
may and shall resume payments on, and distributions in respect of, the Notes
and may acquire them upon:

 

(x)            in the case of a default referred to
in Section 7(c)(i), hereof, the date on which such default is cured or
waived in accordance with the terms of such Senior Debt; or

 

(y)           in the case of a default referred to
in Section 7(c)(ii) hereof, the earlier of (1) the date on which
such default is cured or waived in accordance with the terms of such Senior
Debt, or (2) 179 days after the date on which the applicable Payment 

 

6

 

Blockage Notice is received by the Holders,
unless the maturity of any Senior Debt has been accelerated.

 

If the Holders
receive any such Payment Blockage Notice, no new Payment Blockage Notice shall
be delivered pursuant to this Section 7 unless and until:

 

(i)            360 days shall have elapsed since
the effectiveness of the immediately prior Payment Blockage Notice; and

 

(ii)           all scheduled payments of principal
of, premium, if any, and interest on the Notes that have come due have been
paid in full in cash.

 

Further, no
nonpayment default that existed or was continuing on the date of delivery of
any Payment Blockage Notice to the Holders shall be, or be made, the basis for
a subsequent Payment Blockage Notice unless such default shall have been cured
or waived for a period of not less than 90 days.

 

(d)           If payment of the Notes is
accelerated because of the occurrence of an Event of Default, then the Company
shall cooperate to promptly notify each Representative or, if there is no Representative,
each holder of Senior Debt of the acceleration; provided, however, that so long as any Senior Debt is
outstanding, any such acceleration shall not become effective, and the Company
shall not make, and the Holders of Notes may not accept or receive, any payment
with respect to the Notes until the day which is five (5) Business Days
after the receipt by Representatives of Senior Debt of written notice of
acceleration.  Thereafter, the Company
may make payments with respect to the Note in accordance with the terms of the
Notes.

 

(e)           In the event that any Holder of Notes
receives any payment or distribution with respect to the Notes at a time when
such Holder, as applicable, has actual knowledge that such payment or
distribution is prohibited by Section 7 hereof, such payment or
distribution shall be held by such Holder, in trust for the benefit of, and
shall be segregated from other funds and property of such Holder of Notes and
be paid forthwith over and delivered in the same form as received (with any
necessary endorsement), upon written request, to, the trustee of the Senior
Debt or the related Holders or their Representatives, as their respective
interests may appear, for application to the payment of all Obligations with
respect to Senior Debt remaining unpaid to the extent necessary to pay such
Obligations in full in accordance with their terms, after giving effect to any
concurrent payment or distribution to or for the holders of Senior Debt.

 

(f)            With respect to the holders of
Senior Debt, the Holders (and each Trustee or Representative, if any, on behalf
of such Holders) undertake to perform only such obligations on the part of the
Holders as are specifically set forth in this Section 7, and no implied
covenants or obligations with respect to the holders of Senior Debt shall be
construed or implied into this Note against the Holders of Notes.  The Holders of Notes shall not be deemed to
owe any fiduciary or other duty to the holders of Senior Debt, and shall not be
liable to any such holders for any payment or distribution to or on behalf of
Holders of Notes or the Company or any other Person money or assets to which
any holders of Senior Debt shall be entitled by virtue of this Section 7,
except if such payment is made as a result of the willful misconduct or gross
negligence of the Holder.

 

7

 

(g)           The Company shall promptly notify the
Holders of any facts known to an Officer of the Company that would cause a
payment of any Obligations with respect to the Notes or of any Claim to violate
this Section 7, but failure to give such notice shall not affect the
subordination of the Notes and all Claims of the Senior Debt as provided in Section 7.

 

(h)           After all Senior Debt is paid in full
in cash and until the Notes are paid in full in cash, Holders of Notes shall be
subrogated (equally and ratably with all other Indebtedness that is pari passu with the Notes) to the rights
of holders of Senior Debt to receive distributions applicable to Senior Debt to
the extent that distributions otherwise payable to the Holders of Notes have
been applied to the payment of Senior Debt. 
A distribution made under this Section 7 to holders of Senior Debt
that otherwise would have been made to Holders of Notes is not, as between the
Company and Holders of Notes, a payment by the Company on the Notes.

 

(i)            This Section 7 defines the
relative rights of Holders of the Notes and holders of Senior Debt.  Nothing in this Note shall:

 

(i)            impair, as between the Company and
Holders of Notes, the obligation of the Company, which is absolute and
unconditional, to pay principal of, premium and interest, including Default
Interest, if any, on the Notes in accordance with their terms;

 

(ii)           affect the relative rights of Holders
of Notes and creditors of the Company other than their rights in relation to
holders of Senior Debt; or

 

(iii)          prevent any Holder of Notes from
exercising its available remedies upon a Default or Event of Default, subject
to the rights of holders and owners of Senior Debt to receive distributions and
payments otherwise payable to Holders of Notes.

 

(j)            Whenever a distribution is to be
made or a notice given to holders of Senior Debt, the distribution may be made
and the notice given to their Representatives. 
Upon any payment or distribution of assets of the Company referred to in
this Section 7, the Holders of Notes shall be entitled to rely upon any
order or decree made by any court of competent jurisdiction or upon any
certificate of such Representative or of the liquidating trustee or agent or
other Person making any distribution to the Holders of Notes for the purpose of
ascertaining the Persons entitled to participate in such distribution, the
holders of the Senior Debt and other Indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Section 7.

 

8.             Certain Covenants.  The Company covenants and agrees with the
Holders that:

 

(a)           The Company will not declare, pay or
make any dividends or distributions on or in respect of, to the extent lawful
and then permitted by OCC and Federal Reserve rules then applicable to
subordinated capital notes includible within Tier 2 capital, and will not
authorize or call, redeem, repurchase or retire, any Company securities or
indebtedness ranking pari passu
or junior to the Notes, including any Company junior subordinated debt, capital
stock and equity securities, at any time when an Event of Default exists and is
continuing hereunder or under the Note Purchase/Loan Agreement or where such
action would result in such an Event of Default hereunder or under the Note
Purchase/Loan Agreement.

 

8

 

(b)           The Company may, without the prior written
consent of the Holders, enter into agreements with respect to and consummate
any mergers, consolidations, sales, leases or transfers of all or substantially
all its business or assets, or any spin-off, split-off or restructuring, provided that, if the Company is not the
surviving entity in the transaction, the successor entity is a corporation or
other entity that is a commercial bank under the laws of the United States or
any state thereof or the District of Columbia, and which expressly assumes by
supplemental written instrument the due and punctual payment of the principal
and interest and other additional amounts on this Note, and the due and
punctual performance and observance of all the covenants and conditions
contained herein and in each of the Company’s indentures, indebtedness and loan
agreements; and provided further,
that immediately after giving effect to the transaction, there is no event of
default under the other indentures, indebtedness and loan agreements of the
Company or an Event of Default hereunder and no event, which, after notice or
the lapse of time or both, would become an event of default under the other
indentures, indebtedness and loan agreements, or an Event of Default
hereunder.  Notwithstanding any other
provisions of this Note, including specifically those set forth in the sections
related to subordination, events of default and covenants of the Company, it is
expressly understood and agreed that the OCC or any receiver or conservator of
the Company appointed by the OCC shall have the right in the performance of its
legal duties, and as part of liquidation designed to protect or further the
continued existence of the Company or the rights of any parties or agencies
with an interest in, or claim against, the Company or its assets, to transfer
or direct the transfer of the obligations of this Note to any bank or bank
holding company selected by such official which shall expressly assume the
obligation of the due and punctual payment of the unpaid principal, and
interest and premium, if any, on the Note and the due and punctual performance
of all covenants and conditions hereunder; and the completion of such transfer
and assumption shall serve to supersede and void any default, acceleration or
subordination which may have occurred, or which may occur due or related to
such transaction, plan, transfer or assumption, pursuant to the provisions of
this Note, and shall serve to return the Holder to the same position, other
than for substitution of the obligor, it would have occupied had no default,
acceleration or subordination occurred; except that any interest and principal
previously due, other than by reason of acceleration, and not paid shall, in
the absence of a contrary agreement by the Holder, be deemed to be immediately
due and payable as of the date of such transfer and assumption, together with
the interest from its original due date at the rate provided for herein.

 

(c)           The Company will do all things
necessary to preserve and keep in full force and effect its legal existence,
and all material rights and franchises in full force and effect to the extent
that a failure to do so would reasonably be expected to have a Material Adverse
Effect (as defined in the Note Purchase/Loan Agreement) and to maintain its
properties in good condition.

 

(d)           Except as would not be
disadvantageous to the Holders of the Notes, the Company will pay or discharge
or cause to be paid and discharged before they become delinquent, all taxes,
assessments and governmental charges levied upon it or any of its Subsidiaries
upon the income, profits or property of any of them; provided that the Company will not be required to pay or
discharge or cause to be paid or discharged any tax, assessment, charge or
claim the amount applicability or validity of which are being contested in good
faith by appropriate proceedings and for which appropriate reserves have been
established on the books and records of the Company or its Subsidiaries.

 

9

 

9.             Defaults and Remedies.  Events of Default include: (i) default
which continues for 15 days in the payment when due of interest on the Notes; (ii) default
in payment which continues for 15 days when due of the principal of or premium,
if any, on the Notes; (iii) nonpayment of borrowed money or failure to
satisfy a final judgment if either the nonpayment of borrowed money from a
third-party lender or the failure to satisfy a final judgment rendered is in
excess of five (5) percent of the Company’s capital or $250,000, whichever
is greater; (iv) failure by
the Company for 30 days after receipt of notice from Holders of at least 25% in
principal amount of the then outstanding Notes to comply with any of its other
agreements or obligations in the Notes or the related Note Purchase/Loan
Agreement with respect to the Notes; (v) admission by the Company in writing of its inability to pay its debts or
the filing of a petition under applicable insolvency or reorganization statutes
or the Federal Deposit Insurance Act; and (vi) consent to or
appointment of a conservator, receiver or liquidator in any insolvency,
readjustment of debts, or marshaling of assets with respect to the Company.
Notwithstanding anything to the contrary herein, the Holders may not accelerate
the maturity of the Notes upon any Event of Default except in the case of an
Event of Default arising as the result of the bankruptcy, insolvency,
receivership, conservatorship or similar reorganization of the Company.

 

10.          Miscellaneous.

 

(a)           The transfer of Notes may be
registered and Notes may be exchanged on the Company’s books and records.  The Company may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents, and may
require a Holder to pay any transfer taxes and fees required by law.

 

(b)           All parties now or hereafter liable
with respect to this Note, whether the Company, any guarantor, endorser, any
Successor or any other Person, hereby waive diligence, presentment for payment,
demand, notice of non-payment or dishonor, protest and notice of protest, or
any other notice of any kind with respect thereto.  No delay or omission on the part of the
Holder in the exercise of any right or remedy hereunder or under the related
Note Purchase/Loan Agreement, or at law or in equity, shall constitute a waiver
thereof in that or any subsequent instance, and no single or partial exercise
by the Holder of any right or remedy hereunder, under the related Note
Purchase/Loan Agreement, or at law or in equity, shall preclude or estop
another or further exercise thereof or the exercise of any other right or
remedy.

 

(c)           Time is of the essence for all
purposes of this Note.

 

(d)           This Note is ineligible as collateral
for any loan or extension of credit by the Company or its Subsidiaries.  Any Holder that is a depository institution
waives all rights of setoff it may have against the Company under this Note.

 

(e)           The Company shall pay (i) all
out-of-pocket expenses of the Holder, including, without limitation, reasonable
fees and charges of counsel actually incurred for the Holder in connection with
the preparation, administration and/or enforcement of this Note, any waiver or
consent hereunder or any amendment hereof or any Default or alleged Default
hereunder, and (ii) if a Default occurs, all out-of-pocket expenses
actually incurred by the Holder, including, without limitation, reasonable fees
and charges of counsel actually incurred in connection with such Default and
the collection and other enforcement proceedings resulting therefrom.

 

10

 

(f)            Any notice or communication by the
Company or the Holders to be effective shall be in writing and shall be
delivered by hand or reliable overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

 

	
  To the Company:

  	
   

  	
  South Carolina Bank and Trust, National 

  Association 

  520 Gervais Street 

  Columbia, South Carolina 29201

  
	
   

  	
   

  	
   

  
	
  To the Holder or Calculation Agent:

  	
   

  	
  SunTrust Bank 

  303 Peachtree Street, 3rd Floor 

  Atlanta, Georgia 30308

  

 

Notices sent
by hand or reliable overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices sent
by telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next Business Day for the
recipient).

 

Any party
hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All such notices and other communications
shall, when transmitted by overnight delivery, or faxed, be effective when
delivered for overnight (next-day) delivery, or transmitted in legible form by
facsimile machine, respectively, or if mailed, upon the third Business Day
after the date deposited into the mails or if delivered, upon delivery;
provided, that notices delivered to the Holder shall not be effective until
actually received by the Holder at its address specified in this Section 10(f).  With respect to any communications delivered
or furnished by electronic communication under Section 10(f), (i) such
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement); provided, that
if such communications are not sent during the normal business hours of the
recipient, such communications shall be deemed to have been sent at the opening
of business on the next Business Day for the recipient, and (ii) 
communications posted to an internet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such communication is
available and identifying the website address therefor.

 

Any agreement
of the Holder herein to receive certain notices by telephone or facsimile is
solely for the convenience and at the request of the Company.  The Holder shall be entitled to rely on the
authority of any Person purporting to be a Person authorized by the Company to
give such notice and the Holder shall not have any liability to the Company or
other Person on account of any action taken or not taken by the Holder in
reliance upon such telephonic or facsimile notice.

 

11

 

(g)           This Note may not be used to
interpret any other indenture, note, loan or debt agreement of the Company or
its Subsidiaries or of any other Person. 
Any such indenture, note, loan or debt agreement may not be used to
interpret this Note.

 

(h)           All agreements of the Company in this
Note shall bind its successors.

 

(i)            In case any provision in this Note
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.  Each covenant or
obligation set forth herein shall be independent of the others and any waiver
or consent to departure with respect to one covenant shall not be deemed or
construed to be a waiver or consent to departure with respect to any other
covenant.

 

(j)            The Headings and Sections of this
Note have been provided for convenience of reference only, are not to be
considered a part of this Note and shall in no way modify or restrict any of
the terms or provisions hereof.

 

(k)           Nothing in this Note, express or
implied, shall give to any Person, other than the Holders, any benefit or any
legal or equitable right, remedy or claim under this Note.

 

(l)            Certain defined terms used herein
shall have the meanings and interpretations provided in Exhibit 1
hereto and incorporated herein by this reference.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(m)          This Note is the Note referred to in
the Note Purchase/Loan Agreement, and is entitled to the benefits of such Note
Purchase/Loan Agreement.

 

(n)           THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK GOVERNING CONTRACTS MADE AND
TO BE PERFORMED ENTIRELY IN THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAWS PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW.

 

(o)           This Note
constitutes subordinated debt which qualifies as Tier 2 capital under OCC
Regs., Part 3.

 

[Signature Page Follows]

 

12

 

IN WITNESS WHEREOF,
the party hereto has caused this Note to be duly executed under seal.

 

 

	
   

  	
   

  	
  SOUTH CAROLINA BANK AND

  TRUST, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By 

  	
  /s/ John C. Pollok

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John C. Pollok

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [SEAL]

  

 

13

 

ASSIGNMENT FORM

 

To assign this
Note, fill in the form below(1):

 

(I) or
(we) assign and transfer this Note to

 

	
   

  
	
  (Insert assignee’s Soc. Sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and zip code)

  

 

and
irrevocably appoint                                                                                     to
transfer this Note on the books of the Company. 
The agent may substitute another to act for him.

 

	
   

  

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the
  face of

  this Note)

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee(2):

  

 

 

(1) Subject
to restriction on transfer.  See Section 5
of the Note.

(2) Participant
in a recognized Signature Guarantee Medallion Program.

 

 

EXHIBIT 1

 

Certain Defined Terms and Interpretative Provisions

 

Defined
Terms

 

“Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person.  For purposes of
this definition, “control,” as used with respect to any Person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided, however, that beneficial
ownership of 10% or more of the Voting Stock of a Person shall be deemed to be
control.  For purposes of this
definition, the terms “affiliated,” “controlling,” “controlled
by” and “under common control with” shall have correlative meanings.

 

“Agent”
means any Registrar, Paying Agent or co-registrar or any successor thereto.

 

“Bankruptcy
Law” means Title 11, U.S. Code or any other applicable federal or state
bankruptcy, insolvency or similar law for the relief of debtors, and any
federal or state law pertaining to the appointment of a receiver, conservator,
liquidator, assignee, custodian, trustee or similar official.

 

“Base Rate”
means the higher of (i) the per annum rate which SunTrust publicly
announces from time to time to be its prime lending rate, as in effect from
time to time, and (ii) the Federal Funds Rate, as in effect from time to
time, plus one-half of one percent (0.50%).
SunTrust’s prime lending rate is a reference rate and does not necessarily
represent the lowest or best rate charged to customers.  SunTrust may make commercial loans or other
loans at rates of interest at, above or below SunTrust’s prime lending
rate.  Each change in SunTrust’s prime
lending rate shall be effective from and including the date such change is
publicly announced as being effective.

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act, except that in calculating the beneficial ownership of
any particular “person” (as such term is used in Section 13(d)(3) of
the Exchange Act), such “ person” shall be deemed to have beneficial
ownership of all securities that such “person” has the right to acquire,
whether such right is currently exercisable or is exercisable only upon the
occurrence of a subsequent condition.

 

“Board of
Directors” means the board of directors (or other body having similar
management functions) or any committee thereof duly authorized to act on behalf
of such board.  Except as expressly forth
herein, any reference to the Board of Directors shall be a reference to the
Board of Directors of the Company.

 

“Board
Resolution” means, with respect to any Person, a copy of a resolution
certified by the Secretary or an Assistant Secretary of such Person to have
been duly adopted by the Board of 

 

E-1

 

Directors of such Person and to be in full force and effect on the date
of such certification, and delivered to the Paying Agent or Trustee (if any).

 

“Business
Day” means any day other than a Legal Holiday, and further, with respect to
Notes that bear interest based on LIBOR, any day in which dealings in deposits
in U.S. Dollars are transacted in the London interbank market (a “LIBOR
Business Day”).

 

“Capital
Lease Obligation” means, at the time any determination thereof is to be
made, the amount of the liability in respect of a capital lease that would at
that time be required to be capitalized on a balance sheet in accordance with
GAAP.

 

“Capital
Stock” means:

 

(i)            in the case of a corporation,
corporate stock;

 

(ii)           in the case of an association or
business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock;

 

(iii)          in the case of a partnership or
limited liability company, partnership or membership interests (whether general
or limited); and

 

(iv)          any other interest or participation
that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, the issuing Person.

 

“Claim”
means any claim arising from rescission of the purchase or sale of the Notes,
for damages arising from the purchase or sale of the Notes or for reimbursement
or contribution on account of such a claim.

 

“Closing
Date” means the date of this Note.

 

“Currency
Agreement” means in respect of a Person any foreign exchange contract,
currency swap agreement, currency spot or futures or options agreements or
other similar agreement to which such Person is a party or beneficiary.

 

“Default”
means any event that is, or with the passage of time or the giving of notice or
both would be, an Event of Default.

 

“Depositary”
means, with respect to the Notes issuable or issued in whole or in part in
global form, DTC as the Depositary with respect to the Notes, until a successor
shall have been duly appointed and qualified to become such and, thereafter, “Depositary”
shall mean or include such successor.

 

“DTC”
means The Depository Trust Company, New York, New York.

 

“Event of
Default” has the meaning provided in Section 9.

 

E-2

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and all rules and
regulations of the SEC promulgated thereunder.

 

“FDIC”
means the Federal Deposit Insurance Corporation and any successor thereto.

 

“FDI Act”
means the Federal Deposit Insurance Act and any successor thereto.

 

“Federal
Reserve” means the Board of Governors of the Federal Reserve System or its
delegee.

 

“GAAP”
means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants, statements and pronouncements of the Financial
Accounting Standards Board, the Public Company Accounting Oversight Board or in
such other statements by such other entity as have been approved by a
significant segment of the accounting profession, which are in effect from time
to time.

 

“Governmental Authority” means the
government of the United States of America, any other nation or any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, self-regulatory authority, court, central
bank or other entity exercising executive, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to government, including
the OCC, the Federal Reserve, the FDIC and any other federal or state agency
charged with the supervision or regulation of depositary institutions or
holding companies of depositary institutions (including any trust company
subsidiaries whether or not they take deposits), or any court, administrative
agency, arbitral authority, self-regulatory authority or commission or other
governmental agency, authority or instrumentality having supervisory or
regulatory authority.

 

“Guarantee”
means a guarantee or other assurance of Indebtedness of another Person, whether
as an obligor, guarantor or otherwise, other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or
indirect, and in any manner including, by way of a pledge of assets or other
security or collateral or through letters of credit or reimbursement agreements
in respect thereof, of all or any part of any Indebtedness.

 

“Hedging
Obligations” means, with respect to any Person, the obligations of such
Person under Currency Agreements and Interest Rate Agreements.

 

“Holder,”
“Noteholder” and “Holder of Note” mean a Person in whose name a
Note is registered. The initial Holder of the Note shall be SunTrust.

 

“incur”
shall mean, with respect to any Indebtedness or other Obligation, to directly
or indirectly, create, incur, issue, assume, guarantee or otherwise become
directly or indirectly liable, contingently or otherwise, with respect to such
Indebtedness or other Obligation.

 

“Indebtedness”
means, with respect to any specified Person, any Obligations of such Person in
respect of:

 

(i)            borrowed money;

 

E-3

 

(ii)           debt securities, bonds, notes,
debentures or similar instruments, letters of credit, securities purchase
facilities and reimbursement agreements in respect thereof;

 

(iii)          banker’s acceptances;

 

(iv)          Capital Lease Obligations;

 

(v)           the deferred and unpaid balance of
the purchase price of any property, all obligations of that Person under any
conditional sale or title retention agreement, except any such balance that
constitutes an accrued expense or trade payable; or

 

(vi)          any Hedging Obligations,

 

if and to the
extent any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of the specified
Person prepared in accordance with GAAP. 
In addition, the term “Indebtedness” includes all Indebtedness of
others secured by a Lien on any asset of the specified Person (whether or not
such Indebtedness is assumed by the specified Person) and, to the extent not
otherwise included, the Guarantee by such Person of any Indebtedness of any
other Person.  The incurrence of
Indebtedness Guaranteed by the specified Person shall, for purposes of this
Note, be the incurrence of Indebtedness by such specified Person.

 

The amount of
any Indebtedness outstanding as of any date shall be:

 

(i)            the accreted value thereof, in the
case of any Indebtedness issued with original issue discount;

 

(ii)           the principal amount thereof,
together with any accrued but unpaid interest thereon, in the case of any other
Indebtedness, and premium, if any; and

 

(iii)          the amount of Indebtedness of such specified
Person arising by reason of a Guarantee of Indebtedness.

 

“Interest
Rate Agreement” means in respect of a Person any interest rate swap
agreement, interest rate cap agreement, interest rate floor agreement, interest
rate futures or option contracts, or other financial agreement or arrangement
designed to protect such Person against fluctuations in interest rates.

 

“Issue Date,”
with respect to any Notes, means the date on which such Notes are originally
issued.

 

“Junior
Subordinated Debt” means the Company’s Trust Preferred Securities and the
related Guarantees and Junior Subordinated Debentures, any Indebtedness that is
subordinate to or on a parity with any of the foregoing Indebtedness, and any
Indebtedness that is by its terms subordinate to the Indebtedness incurred
under this Note.

 

E-4

 

“Law”
means any law, rule, regulation or published interpretation by any Governmental
Authority, or order, guideline, directive, or request made by a Governmental
Authority to SunTrust or to any SunTrust or parent company.

 

“Legal
Holiday” means a Saturday, a Sunday or a day on which banking institutions
in the City of New York or Atlanta, Georgia are authorized or obligated by law,
regulation or executive order to remain closed. 
If a payment date is a Legal Holiday at a place of payment, payment may
be made at that place on the next succeeding day that is not a Legal Holiday.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option or other agreement to sell or give a security interest in
such asset, and any filing of or agreement to give any financing statement
under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

 

“Note
Purchase/Loan Agreement” means each of (i) the Note Agreement, dated
as of September 19, 2008, by and between the Company and SunTrust, and (ii) any
other similar agreement relating to Additional Notes, as each may be amended,
modified, or supplemented from time to time.

 

“Obligations”
means any obligation, direct or indirect, contingent or non-contingent, matured
or unmatured, to pay principal, interest, penalties, fees, indemnifications,
reimbursements, damages, accounts payable and other liabilities of any kind
whatsoever, including any guarantee by the Company for the repayment of
Indebtedness, whether or not evidenced by bonds, debentures, notes or other
written instruments, and any deferred obligation for the payment of the
purchase price of property or assets.

 

“OCC”
means the Office of the Comptroller of the Currency and any successor thereto.

 

“Officer”
means, with respect to any Person, the Chief Executive Officer, the President,
the Chief Financial Officer, Chief Risk Officer, any Vice President whose
principal duties relate to financial matters, the Treasurer or the Secretary of
such Person.

 

“Officers’
Certificate” means a certificate signed on behalf of a Person by the
principal executive officer, the principal financial officer or the principal
accounting officer of such Person.

 

“Payment
Blockage Notice” has the meaning ascribed in Section 7 of this Note.

 

“Person”
means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, limited liability company, unincorporated
organization or government or agency or political subdivision thereof
(including any subdivision or ongoing business of any such entity or
substantially all of the assets of any such entity, subdivision or business).

 

“Representative”
means the indenture trustee or other trustee, agent or representative in
respect of any Indebtedness; provided,
however, that if, and for so long as, any Indebtedness lacks such a
representative, then the Representative for such Indebtedness shall at all
times 

 

E-5

 

constitute the holders of a majority in outstanding principal amount of
such Indebtedness in respect of any Indebtedness.

 

“SEC”
means the United States Securities and Exchange Commission (or any successor
federal regulatory body having similar jurisdiction).

 

“Securities
Act” means the Securities Act of 1933, as amended, and all rules and
regulations of the SEC promulgated thereunder.

 

“Senior
Debt” means

 

(i)            any of the Company’s Indebtedness
that, by its terms, is not subordinated or pari passu in
right of payment to the Notes,

 

(ii)           any of the Company’s Indebtedness or
other Obligations with respect to Hedging Obligations and commodity contracts,
and

 

(iii)          any guarantees, endorsements (other
than by endorsement of negotiable instruments for collection in the ordinary
course of business) or other similar Obligations in respect of Obligations of
others of a type described in clauses (i), (ii), and (iii), whether or not such
Obligation is classified as a liability on the balance sheet prepared in accordance
with GAAP.

 

in each case
whether outstanding on the date of execution of this Note or thereafter
incurred, other than Subordinated Debt and Junior Subordinated Debt, including
the Company’s Trust Preferred Securities Guarantees and the related Junior
Subordinated Debentures.

 

“Significant
Subsidiary” means any Subsidiary that would be a “significant subsidiary”
as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such Regulation was in effect on the Closing
Date.

 

“Stated
Maturity” means, with respect to any installment of interest or principal
on any series of Indebtedness, the date on which such payment of interest or
principal was scheduled to be paid in the original documentation governing such
Indebtedness, and shall not include any contingent obligations to repay, redeem
or repurchase any such interest or principal prior to the date originally
scheduled for the payment thereof.

 

“Subordinated
Debt” means any Debt of the Company (whether outstanding on the Closing
Date or thereafter incurred) that is subordinate or junior in right of payment
to all Senior Debt pursuant to a written agreement to that effect.

 

“Subsidiary”
means, with respect to any Person:

 

(i)            any corporation, association or
other business entity of which more than 50% of the Voting Stock is at the time
owned or controlled, directly or indirectly, by such Person or one or more of
the other Subsidiaries of that Person (or a combination thereof); and

 

E-6

 

(ii)           any partnership (A) the sole
general partner or the managing general partner of which is such Person or a
Subsidiary of such Person, or (B) the only general partners of which are
such Person or of one or more Subsidiaries of such Person (or any combination
thereof).

 

“Trustee”
means the party, if any, named as such, to hold payments on the Notes during
the continuance of a Default.

 

“Trust
Preferred Securities Guarantees” shall mean the guarantees issued by the
Company in connection with any trust preferred securities issued by an
Affiliate to purchase Junior Subordinated Debt issued by the Company and any
Guarantee now or hereafter entered into by the Company in respect of any
preferred or preference stock that is by its terms subordinated to or on a
parity with the Junior Subordinated Debt.

 

“Voting
Stock” of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the Board of Directors
of such Person.

 

“Wholly
Owned Subsidiary” of any Person means a Subsidiary of such Person all of
the outstanding Capital Stock or other ownership interests of which (other than
directors’ qualifying shares) shall at the time be owned by such Person and/or
by one or more Wholly Owned Subsidiaries of such Person.

 

Interpretative
Provisions

 

Unless the
context otherwise requires, for purposes of this Note:

 

(i)            a term has the meaning assigned to
it;

 

(ii)           an accounting term not otherwise
defined has the meaning assigned to it in accordance with GAAP;

 

(iii)          “or” is not exclusive;

 

(iv)          words in the singular include the
plural, and in the plural include the singular and any reference to gender
includes all genders;

 

(v)           provisions apply to successive events
and transactions;

 

(vi)          references to sections of or rules under
the Securities Act shall be deemed to include substitute, replacement or
successor sections or rules adopted by the SEC from time to time;

 

(vii)         the terms “include,” “included,”
and “including,” and words of similar meaning, shall be deemed to be
without limitation, whether by enumeration or otherwise;

 

(viii)        in computing periods of time from a
specified date to a later specified date, the word “from” means “from and
including” and the word “to” means “to but excluding”;

 

E-7

 

(ix)           unless otherwise specified (i) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as it was originally executed or as it may from time to time be
amended, supplemented or otherwise modified (subject to any restrictions on
such amendments, supplements or modifications set forth herein);

 

(x)            any reference herein to any Person
shall be construed to include such Person’s successors and permitted assigns;
and

 

(xi)           the words “hereof”, “herein” and “hereunder” and words of similar
import shall be construed to refer to this Note as a whole and not to any
particular provision hereof.

 

E-8

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