Document:

exv10w2

 

EXHIBIT
10.2

INCENTIVE BONUS AGREEMENT

     This
Incentive Bonus Agreement (“Agreement”) is effective as of
the ___ day of October 2005
(the “Effective Date”), by and between Metrocorp, Inc., an Illinois corporation (the “Company”) and
                                         (“Employee”).

     WHEREAS, Employee is employed by the Company;

     WHEREAS, as part of the Board’s recent decision to explore all of the strategic alternatives
available to the Company, the Company is in the process of exploring opportunities for the sale of
the Company;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that Employee is a
“key employee” of the Company and that it is in the best interests of the Company and its
stockholders to assure that the Employee will remain employed by the Company and that the Company
will have the continued dedication of Employee, notwithstanding the possibility or occurrence of a
sale of the Company;

     WHEREAS, the Board believes it is imperative (i) to diminish the inevitable and significant
distractions of Employee and dilution of the time of Employee, by virtue of the personal
uncertainties and risks created by a planned or pending sale of the Company; (ii) to encourage
Employee’s full attention and dedication to the Company currently and in the event of any planned
or pending sale of the Company; and (iii) to provide Employee with compensation arrangements in the
event of a sale of the Company; and

     WHEREAS, in order to accomplish the objectives described in the preceding recitals, the Board
desires to cause the Company to enter into this Agreement as set forth herein.

     NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements
contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and Employee hereby agree as follows:

     1. Term. Except as otherwise set forth herein, the term of this Agreement (“Term”)
shall commence on the Effective Date and shall continue for an initial period ending on the first
anniversary of the Effective Date, provided however, if a Bonus Event (as defined herein) is
pending prior to the end of the Term, the Term shall continue until the Bonus Event occurs or there
is no Bonus Event pending. For purposes of this Agreement, a Bonus Event shall be considered
pending only if there is a signed letter of intent or definitive agreement in place, with respect
to such Bonus Event.

     2. Obligations of Company in the Event of a Bonus Event.

     (a) Retention Bonus. Upon the occurrence of a Bonus Event during the Term, if
Employee has remained in continuous employment with the Company during the Term, then the
Company shall pay to Employee a “Retention Bonus” in the amount of twenty percent (20%) of
Employee’s annual base salary in effect on the Effective Date, less applicable taxes.

 

 

     (b) Company Obligation to Pay Bonuses. Any bonus payable pursuant to this
Section 2 shall be in addition to all other salary, benefits and other amounts accrued to,
vested in or earned by Employee upon the occurrence of the Bonus Event. No such bonus under
to this Section 2 shall be paid if a Bonus Event does not occur, or upon the voluntary
termination by Employee of Employee’s employment with the Company, Employee’s death or
disability, or the termination by the Company of Employee’s employment for unsatisfactory
job performance, whether or not a Bonus Event is then pending.

    3. Definitions. The term “Bonus Event” shall mean (i) merger or consolidation of the
Company with another corporation where, as a result of such merger or consolidation, less than 75%
of the outstanding voting securities of the surviving or resulting corporation shall then be owned
by the stockholders of the Company immediately prior to such merger or consolidation; or (ii) a
transfer of all or substantially all of the Company’s assets to another entity that is not a
wholly-owned subsidiary of the Company.

    4. Time of Payment. Any payment due under this Agreement shall be made within ten
(10) days following the date of the Bonus Event.

    5. At Will-Employment. Nothing in this Agreement is intended to change or affect
Employee’s status as an at-will employee or is intended to guaranty employment to Employee either
before or after a Bonus Event. The Company shall continue to have the right to terminate Employee’s
employment with or without cause subject to its obligation to make certain payments to Employee on
the terms and conditions otherwise provided for in this Agreement, and to applicable law.

    6. Confidentiality. As a material inducement to Company to enter this Agreement,
Employee covenants and agrees that Employee will not disclose to any third-party (including
employees of the Company other than the President of the Company) the nature, character, content or
existence of this Agreement, without the prior written consent of the Company, which consent may be
withheld in its sole discretion. Notwithstanding the foregoing, Employee may disclose the nature,
character, content or existence of this Agreement or its terms (a) to the Employee’s spouse; or
(b) to the Employee’s legal and financial advisors, so long as such third parties agree to keep
confidential and not disclose the existence or terms of this Agreement. Additionally, Employee may
disclose the nature, character, content or existence of this Agreement or its terms to the extent
required by process of law. If Employee shall breach this Section 6, Company shall have the right
to immediately terminate this Agreement by giving written notice of such termination to Employee
and to further pursue all rights and remedies available to the Company at law or equity with
respect to such breach.

    7. General Terms.

(a) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the state of Illinois.

     (b) Assignability. This Agreement is personal to Employee and without the
prior written consent of the Company shall not be assignable by Employee other than by

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will or the laws of descent and distribution. This Agreement shall inure to the benefit
of and be enforceable by Employee’s legal representatives and heirs. This Agreement shall
inure to the benefit of and be binding upon the Company and its successors and assigns.

     (c) Withholding. The Company may withhold from any amounts payable under this
Agreement such federal, state or local taxes as shall be required to be withheld pursuant to
any applicable law or regulation.

     (d) Amendment. Except as may be otherwise provided herein, this Agreement may
not be amended or modified except by subsequent written agreement executed by both parties
hereto.

     (e) Multiple Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall constitute an original, but all of which together shall
constitute one Agreement.

     (f) Notices. Any notice provided for in this Agreement shall be deemed
delivered upon deposit in the United States mails, registered or certified mail, addressed
to the party to whom directed at the addresses set forth below or at such other addresses as
may be substituted therefore by notice given hereunder. Notice given by any other means must
be in writing and shall be deemed delivered only upon actual receipt.

	 	 	 
	 

	 	If to the Company:
	 
	 	 
	 

	 	Metrocorp, Inc.
	 

	 	1523 8th Street
	 

	 	East Moline, Illinois 61244
	 

	 	Attention: General Counsel
	 
	 	 
	 

	 	If to Employee:
	 
	 	 
	 

	 	To the last address reflected on the records of the Company, unless
	 

	 	otherwise provided in writing to the Company pursuant to this Section.

     (g) Waiver. The waiver of any breach of any term or condition of this
Agreement shall not be deemed to constitute the waiver of any breach of the same or any
other term or condition of this Agreement.

     (h) Severability. In the event any provision of this Agreement is found to be
unenforceable or invalid, such provision shall be severable from this Agreement and shall
not affect the enforceability or validity of any other provision of this Agreement. If any
provision of this Agreement is capable to two constructions, one of which would render the
provision void and the other that would render the provision valid, then the provision shall
have the construction that renders it valid.

     (i) Arbitration of Disputes. Except for disputes and controversies involving
equitable or injunctive relief, any dispute or controversy arising under or in connection

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with this Agreement shall be conducted in accordance with the rules set forth by the
American Arbitration Association. The decision of the arbitrator shall be binding on
Employee and the Company. Judgment may be entered on the arbitrator’s award in any court
having jurisdiction.

     (j) Legal Fees and Expenses. If Employee shall prevail in any contest by the
Company or others contesting the validity or enforcement of, or liability under, any term or
provision of this Agreement, the Company shall pay any and all reasonable attorney,
accounts’ and experts’ fees and expenses and court costs, incurred by Employee as a result
of any such contest. Otherwise, each party shall bear his, her or its own expenses in
connection with any such contest.

[Signature page follows]

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     IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	Metrocorp, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 

5exv10w3

 

EXHIBIT
10.3

METROCORP, INC.

Change of Control Severance Plan

     This Change of Control Severance Plan (the “Plan”) is adopted as of September 22, 2005 by
Metrocorp, Inc., an Illinois corporation (the “Company”), for the benefit of the employees of the
Company and its subsidiaries.

     WHEREAS, as part of its evaluation of all of its strategic alternatives, the Company has
undertaken a process that might lead to a sale or other change of control of the Company and its
subsidiaries;

     WHEREAS, in order to preserve stockholder value in the Company, the Board of Directors of the
Company (the “Board”) has determined that it is in the best interests of the Company and its
stockholders to assure that the employees of the Company and its subsidiaries will remain employed
and that the Company and its subsidiaries will have the continued dedication of their employees,
notwithstanding the possibility or occurrence of a sale of the Company and its subsidiaries.

     WHEREAS, the Board believes it is imperative (i) to diminish the inevitable and significant
distractions of its employees and dilution of the time of its employees, by virtue of the personal
uncertainties and risks created by a potential sale of the Company and its subsidiaries; and (ii)
to encourage its employees’ full attention and dedication to the Company and its subsidiaries
currently and in the event of any planned or pending sale; and

     WHEREAS, in order to accomplish the objectives described in the preceding recitals, the Board
desires to cause the Company to adopt this Plan as set forth herein.

     NOW, THEREFORE, Board hereby adopts this Plan on behalf of the Company and its subsidiaries:

     1. Definitions. As used herein:

          (a) “Cause” means (i) any act of dishonesty taken by an Employee in connection with his
responsibilities as an employee of the Company and its Subsidiaries which is intended to result in
personal enrichment; (ii) an Employee’s conviction of a felony; (iii) willful misconduct by an
Employee which is injurious to the Company and its Subsidiaries, or (iv) the continued failure of
an Employee, who is employed in the same or similar employment position as he was employed on the
date immediately preceding the Effective Date to substantially perform his obligations to the
Company and its Subsidiaries considering the scope and importance of the Employee’s position after
there has been delivered to the Employee a written demand for performance from the Company that
describes the basis for the Company’s belief that the Employee has not substantially performed his
duties and which includes a cure period of at least 30 days.

          (b) “Change of Control” means (i) the acquisition by any person or entity, or any group of
persons or entities acting in concert (a “Person”) of direct or indirect beneficial ownership of
50% or more of the voting power or voting securities of the Company, not held by such Person as of
the date of adoption of this Plan, (ii) the acquisition by any Person of direct or indirect
beneficial ownership of 25% or more of the voting power or voting securities of the Company not
held by such Person as of the date of adoption of this Plan and the subsequent election of a
majority of the members of the Company’s Board of Directors who were not members of the Board for
the 2-year period immediately preceding their election, (iii) a transfer of all or substantially
all of the Company’s assets to another Person who is not a

 

 

wholly-owned subsidiary of the Company, or (iv) merger or consolidation of the Company with
another corporation where, as a result of such merger or consolidation, less than 75% of the
outstanding voting securities of the surviving or resulting corporation will then be owned by the
stockholders of the Company immediately prior to such merger or consolidation.

          (c) “Code” means the Internal Revenue Code of 1986, as amended.

          (d) “Effective Date” means the effective date of the first event to occur after the date of
adoption of this Plan that constitutes a Change of Control.

          (e) “Employee” means any person employed by the Company and its Subsidiaries on the date
immediately prior to the Effective Date. No person will be a participant in the Plan or eligible
for a benefit under the Plan until and unless he is an Employee.

          (f) “Good Reason” means the occurrence of any of the following events: (i) a change in the
location of the Employee’s place of employment to more than 55 miles from the Company’s current
East Moline, Illinois headquarters without the Employee’s prior written consent; or (ii) a
reduction of the Employee’s base pay or base salary by more than 10% on or after the Effective
Date.

          (g) “Junior Officer” means an Employee who on the date immediately prior to the Effective Date
is classified on the official organization chart of the Company or one of its Subsidiaries as an
“officer” but at a level lower than Vice President.

          (h) “Medical Benefits” means coverage under a group health plan, as defined by Code Section
5000, that is maintained by the Company and its Subsidiaries on the date immediately preceding the
date when an Employee terminates or resigns under the terms of this Plan.

          (i) “Non-Officer Employee” means an Employee who on the date immediately prior to the
Effective Date is not a Junior Officer, Vice President or Senior Executive.

          (j) “Senior Executive” means an Employee who on the date immediately prior to the Effective
Date is classified on the official organization chart of the Company or one of its Subsidiaries as
a “Senior Vice President,” “General Counsel” or “President.”

          (k) “Subsidiaries” means Metrobank, N.A. and any other entity in which the Company owns
greater than a majority of the outstanding voting securities.

          (l) “Vice President” means an Employee who on the date immediately prior to the Effective Date
is classified on the official organization chart of the Company or one of its Subsidiaries as a
“Vice President” but at a level lower than “Senior Vice President.”

     2. Non-Officer Employee Severance Rights. If a Non-Officer Employee is terminated
without Cause or resigns for Good Reason during the 90 days immediately following the Effective
Date, such Non-Officer Employee will be entitled to a payment calculated as follows:

          (a) such Non-Officer Employee’s then current daily base salary or base rate of pay, as
applicable, at the time of his termination of or resignation from employment but without any
reduction described in Section 1(f)(ii) of this Plan; times

          (b) the greater of (i) number of days remaining between the Non-Officer Employee’s termination
of or resignation from employment and the 90-day anniversary of the Effective Date or (ii) 30

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days (such period in (i) or (ii), as the case may be, referred to as the “Non-Officer Employee
Severance Period”). The daily base rate of pay of an Employee who is classified by the Company as
“part-time” on the date immediately preceding Effective Date will be determined for purposes of
this Section 2 based upon the average daily hours worked by such Employee over the consecutive
12-month period ending on the day before his termination or resignation.

The Company will make this payment in a single lump sum to the Non-Officer Employee within 5 days
of his last day of employment with the Company and any of its Subsidiaries.

     In addition, if COBRA coverage is timely elected for any Medical Benefits for the Non-Officer
Employee, his spouse or any dependent for the Non-Officer Employee Severance Period, the Company
will reimburse the Non-Officer Employee for the COBRA coverage premium timely paid for that period;
provided, that the Non-Officer Employee provides the Company with reasonable documentation of any
such premium payment within 2 months of its payment. In the event that the amount of any such
reimbursed premium is includable in the Non-Officer Employee’s gross income for federal, state, or
local income taxes or in his wages for employment tax purposes, the Company will pay to the
Non-Officer Employee an additional amount such that the net amount retained by him (after deduction
of these federal, state and local income and employment taxes and any related penalty and interest
assessed for delinquent payment of these taxes) will be equal to the total premium payment
reimbursed by the Company; provided, that the Non-Officer Employee provides the Company with
reasonable documentation of the payment of such taxes, penalty and interest within 2 months of
their payment. On the first payroll date in each calendar month, the Company will pay in a single
sum all reimbursements or additional amounts provided under this paragraph for which the
Non-Officer Employee has timely provided reasonable documentation to the Company since the first
payroll date in the immediately preceding calendar month.

     3. Junior Officer Severance Rights. If a Junior Officer is terminated without Cause
or resigns for Good Reason during the 6 consecutive months immediately following the Effective
Date, such Junior Officer will be entitled to a payment calculated as follows:

          (a) such Junior Officer’s then current monthly base salary at the time of his termination of
or resignation from employment but without any reduction described in Section 1(f)(ii) of this
Plan; times

          (b) the number of full or partial months remaining between the Junior Officer’s termination of
or resignation from employment and the 6-month anniversary of the Effective Date (“Junior Officer
Severance Period”).

The Company will make this payment in a single lump sum to the Junior Officer within 5 days of his
last day of employment with the Company and any of its Subsidiaries.

     In addition, if COBRA coverage is timely elected for any Medical Benefits for the Junior
Officer, his spouse or any dependent for the Junior Officer Severance Period, the Company will
reimburse the Junior Officer for any COBRA coverage premium timely paid for that period; provided,
that the Junior Officer provides the Company with reasonable documentation of any such premium
payment within 2 months of its payment. In the event that the amount of any such reimbursed
premium is includable in the Junior Officer’s gross income for federal, state, or local income
taxes or in his wages for employment tax purposes, the Company will pay to the Junior Officer an
additional amount such that the net amount retained by him (after deduction of these federal, state
and local income and employment taxes and any related penalty and interest assessed for delinquent
payment of these taxes) will be equal to the total premium payment reimbursed by the Company;
provided, that the Junior Officer provides the Company with reasonable documentation of the payment
of such taxes, penalty and interest within 2 months of their

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payment. On the first payroll date in each calendar month, the Company will pay in a single
sum all reimbursements or additional amounts provided under this paragraph for which the Junior
Officer has timely provided reasonable documentation to the Company since the first payroll date in
the immediately preceding calendar month.

     4. Vice President Severance Rights. If a Vice President is terminated without Cause
or resigns for Good Reason during the 12 consecutive months immediately following the Effective
Date, such Vice President will be entitled to a payment calculated as follows:

          (a) such Vice President’s then current monthly base salary at the time of his termination of
or resignation from employment but without any reduction described in Section 1(f)(ii) of this
Plan; times

          (b) the number of full or partial months remaining between the Vice President’s termination of
or resignation from employment and the 12-month anniversary of the Effective Date (“Vice President
Severance Period”).

The Company will make this payment in a single lump sum to the Vice President within 5 days of his
last day of employment with the Company and any of its Subsidiaries.

     In addition, if COBRA coverage is timely elected for any Medical Benefits for the Vice
President, his spouse or any dependent for the Vice President Severance Period, the Company will
reimburse the Vice President for any COBRA coverage premium timely paid for that period; provided,
that the Vice President provides the Company with reasonable documentation of any such premium
payment within 2 months of its payment. In the event that the amount of any such reimbursed
premium is includable in the Vice President’s gross income for federal, state, or local income
taxes or in his wages for employment tax purposes, the Company will pay to the Vice President an
additional amount such that the net amount retained by him (after deduction of these federal, state
and local income and employment taxes and any related penalty and interest assessed for delinquent
payment of these taxes) will be equal to the total premium payment reimbursed by the Company;
provided, that the Vice President provides the Company with reasonable documentation of the payment
of such taxes, penalty and interest within 2 months of their payment. On the first payroll date
in each calendar month, the Company will pay in a single sum all reimbursements or additional
amounts provided under this paragraph for which the Vice President has timely provided reasonable
documentation to the Company since the first payroll date in the immediately preceding calendar
month.

     5. Senior Executive Severance Rights. If a Senior Executive is terminated without
Cause or resigns for Good Reason during the 24 consecutive months immediately following the
Effective Date, such Senior Executive will be entitled to a payment calculated as follows:

          (a) such Senior Executive’s then current monthly base salary at the time of his termination of
or resignation from employment but without any reduction described in Section 1(f)(ii) of this
Plan; times

          (b) the number of full or partial months remaining between the Senior Executive’s termination
of or resignation from employment and the 24-month anniversary of the Effective Date (“Senior
Executive Severance Period”).

The Company will make this payment in a single lump sum to the Senior Executive within 5 days of
his last day of employment with the Company and any of its Subsidiaries.

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     In addition, if COBRA coverage is timely elected for any Medical Benefits for the Senior
Executive, his spouse or any dependent for the Senior Executive Severance Period, the Company will
reimburse the Senior Executive for any COBRA coverage premium timely paid for that period;
provided, that the Senior Executive provides the Company with reasonable documentation of any such
premium payment within 2 months of its payment. In the event that the amount of any such
reimbursed premium is includable in the Senior Executive’s gross income for federal, state, or
local income taxes or in his wages for employment tax purposes, the Company will pay to the Senior
Executive an additional amount such that the net amount retained by him (after deduction of these
federal, state and local income and employment taxes and any related penalty and interest assessed
for delinquent payment of these taxes) will be equal to the total premium payment reimbursed by the
Company; provided, that the Senior Executive provides the Company with reasonable documentation of
the payment of such taxes, penalty and interest within 2 months of their payment. On the first
payroll date in each calendar month, the Company will pay in a single sum all reimbursements or
additional amounts provided under this paragraph for which the Senior Executive has timely provided
reasonable documentation to the Company since the first payroll date in the immediately preceding
calendar month.

     6. Excise Tax Issues. Notwithstanding anything in this Plan to the contrary, in the
event it will be determined in good faith by the Company’s independent accountants prior to the
Effective Date that any payment, award, benefit or distribution (or any acceleration of any
payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any
entity which effectuates a Change in Control (or any of its affiliated entities) to or for the
benefit of any Employee is subject to the excise tax under Code Section 4999, then the amounts
payable to such Employee under this Plan will be reduced to the maximum amount as will result in no
portion of the Payments being subject to such excise tax (the “Safe Harbor Cap”). For purposes of
reducing the Payments to the Safe Harbor Cap, only amounts payable to an Employee under this Plan
(and no other payments) will be reduced, unless otherwise consented to by such Employee.

     7. Termination. If no Change of Control has occurred within 12 months after the date
of adoption of this Plan, unless this Plan has been further extended by the Board, this Plan and
all obligations of the Company hereunder will terminate and become void.

     8. Withholding. The Company will withhold from any benefit payment under this Plan
all federal, state, and local taxes or other amounts as required pursuant to any law, governmental
regulation or ruling. If any such taxes or other amounts are due with respect to any benefit
earned by an Employee prior to the time of the benefit payment under this Plan, the Company will
withhold from any other compensation or payment due to the Employee all federal, state, and local
taxes or other amounts required to be withheld from that payment.

     9. Successors and Assigns. The obligations of the Company hereunder will be binding
upon the Company and its successors and assigns, including but not limited to any successor of the
Company upon a Change of Control.

     10. Amendment. After a Change of Control, no amendments, modifications additions, or
deletions to this Plan will be effective unless made in writing and signed by any Employee affected
by such change. Prior to a Change of Control, this Plan may be amended upon resolution of the
Board; provided, however, that no such amendment will materially reduce the benefits provided
hereunder.

     11. Administration. The Company will operate and administer the Plan. In its sole
discretion, the Company will construe and interpret the Plan, including disputed and doubtful terms
and provisions and, in its sole discretion, decide all questions of eligibility for benefits
payments and determine the amount, manner and time of benefits under the Plan terms. All
determinations and interpretations of the Company will be consistently and uniformly applied to all
employees and will be

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conclusive and binding on all parties. If any employee of the Company, or his representative,
disagrees with any such construction, interpretation or determination by the Company, the employee
or his representative, can make a claim for benefits under the separate claims procedures for this
Plan, a copy of which can be obtained from the Chairman of the Board free of charge. By this
reference, the separate claims procedures are incorporated into and made a part of this Plan.

     12. Governing Law. This Plan is a welfare benefit plan subject to the Employee
Retirement Income Security Act of 1974, as amended, and it will be interpreted, administered, and
enforced in accordance with that law. To the extent that state law is applicable, the statutes and
common law of the State of Illinois will apply, without regard to the conflict of laws principles.

     13. American Jobs Creation Act of 2004. Code Section 409A applies to benefits
provided under this Plan. The provisions of this Plan are intended to comply with Section 409A and
the guidance issued by the Internal Revenue Service and proposed and final regulations issued by
the Treasury Department. These provisions will be consistently interpreted and applied by the
Board so that benefits under this Plan will not be subject to taxation under Code Section 409A.

     14. Delayed Payment Date. Notwithstanding any provision to the contrary, any payment
or reimbursement (or related additional amount) due under this Plan to a “specified employee” as
defined by Code Section 409A(a)(2)(B)(i) (pertaining to payments to a key employee of a corporation
whose stock is publicly traded on an established securities market or otherwise) will be made on
the later of the date that it is to be paid under this Plan without regard to this Section 14 or on
the Company’s first payroll date after the 6-month anniversary of the Employee’s last day of work
with the Company and its Subsidiaries due to his termination of or resignation from employment
under the terms of this Plan. Any payment delayed by the provisions of this Section 14 will be
paid without interest.

     15. Miscellaneous.

          (a) The Plan is intended to be and at all times will be interpreted and administered as an
unfunded, employee welfare benefit Plan under Section 3(1) of the Employee Retirement Income
Security Act of 1974, as amended. All Plan benefits will be paid from the Company’s general
assets. The right of an Employee to receive any payment under the Plan will be an unsecured claim
against the general assets of the Company. An Employee will have no right against any specific
assets of the Company.

          (b) The Plan Year is the consecutive 12-month period beginning each November 1 and ending the
following October 31; provided, that the first Plan Year will begin on September 22, 2005 and end
the following October 31.

          (c) The Company is the Plan Administrator.

          (d) No Employee may anticipate, assign, or alienate (either at law or in equity) any benefit
or right provided under the Plan. Any such anticipation, assignment or alienation will be null and
void.

          (e) Nothing in this Plan will be construed to limit in any way the right of Company or any of
its Subsidiaries to terminate the employment of an Employee at any time for any reason; or evidence
any agreement or understanding, express or implied, that the Company or any of its subsidiaries
will employ an Employee in any position or at any rate of remuneration or for any period of time.

          (f) The benefits provided under this Plan to an Employee are in addition to any benefit
provided under the terms of any other plan maintained by the Company or any of its Subsidiaries.

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          (g) As used in this Plan the term “and” means “and/or”, the singular includes the plural, and
the masculine includes the feminine and neuter. Headings of sections are not to be considered in
the construction and interpretation of the Plan.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	METROCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	/s/ Gary D. Andersen	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Title: President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Date: September 22, 2005	 	 
	 

	 	 	 	 	 	 

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METROCORP, INC.

CHANGE OF CONTROL SEVERANCE PLAN

CLAIMS PROCEDURES

     These are the claims procedures for the Metrocorp, Inc. Change of Control Severance Plan or
“Plan”. Unless otherwise provided, a capitalized term in these procedures has the same meaning as
the meaning that is given to it in the Plan.

     The Company has the sole discretion to construe and interpret the Plan, including disputed and
doubtful terms and provisions and, in its sole discretion, to determine the benefit of any employee
under the Plan terms — a “Claimant”. If a Claimant (or his representative) disagrees with any such
construction, interpretation or determination by the Company, the Claimant can make a claim for
benefits under these claims procedures.

Filing A Claim For Benefits

     A Claimant may submit to the Company a written claim for benefits under the Plan. The Company
will evaluate the claim to determine if the Claimant is entitled to any benefit under the Plan
terms. To make this determination, the Company may request that the Claimant provide it with
additional information. If the Company determines that the Claimant is entitled to a benefit under
the Plan, the Claimant will receive a statement describing this benefit, the method or methods of
payment, the timing for his benefit payment and other relevant information. The Company has the
sole discretion to interpret and apply the Plan terms, to decide all questions of eligibility, and
determine the time and manner of benefit payments under the Plan terms.

Designation Of An Authorized Representative

     If a Claimant wishes to designate a representative to make a claim for benefits under the Plan
or to appeal an adverse determination of a benefits claim on behalf of a Claimant, the Company will
provide the Claimant with the appropriate forms for this designation. The Claimant must complete
and return these forms to the Company before the Claimant’s representative can receive any
information from the Company or any other fiduciary or representative about the Claimant’s claim
for benefits under the Plan. All communications by the Company or any other fiduciary or
representative about the Claimant’s claim will then be made with his or her authorized
representative.

Claims Procedure

     If a claim for benefits is wholly or partially denied by the Company, the Board will provide
the Claimant with a written notice of the Company’s denial within a reasonable period of time after
the Board received the claim. The written notice must contain the following information:

	 	(a)	 	The specific reason or reasons for the denial;
	 
	 	(b)	 	Specific reference to the Agreement provisions on which the denial is based;
	 
	 	(c)	 	A description of any additional material or information necessary to complete
the claim for benefits and an explanation of why this material or information is
necessary; and

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	 	(d)	 	An explanation of the steps to be taken if the Claimant wishes to submit the
claim for review and the time limits that apply to the review procedures including a
statement of his or her right to bring a civil action under ERISA in the event of a
denial on review.

     The Company’s written notice of denial must be provided within 90 days of the date when the
Claimant’s written claim was received by the Company, unless special circumstances require an
extension of the period for processing the claim. If such an extension is required, the Company
will provide a written notice of this extension to the Claimant prior to the expiration of the
regular 90-day period specifying the circumstances that require the extension and the date upon
which a final decision can be expected. In no event will the extension exceed 90 days from the end
of the regular 90-day period.

     If notice of the denial of the Claimant’s claim is not provided by the Company within a
reasonable time, as described above, his or her claim for benefits under the Agreement is deemed
denied and the Claimant can then proceed to the review of his claim.

Review Procedure

     If a Claimant disagrees with the Company’s determination of his or her benefit or with any
other decision that the Company makes regarding his benefits under the Plan, the Claimant must
follow this appeal procedure. If a Claimant disagrees with the Company’s denial of his benefit
claim, the Claimant must appeal the adverse determination in writing to the Company within 60 days
after the receipt of the notice of denial (or, if applicable, within 60 days after the date on
which the denial is considered to have occurred).

     If a Claimant appeals an adverse determination of his or her claim for benefits under the
Plan, he must submit in writing the pertinent issues and comments regarding the denial to permit
the examination of all facts and a final determination with respect to the Claimant’s claim for
benefits. The Company will provide to the Claimant, upon written request and free of charge,
copies of all documents, records and other information relevant to his claim.

     A Claimant’s appealed claim must receive a full and fair review that takes into account all
comments, documents, records and other information that he or she submits relating to his or her
claim, regardless of whether such information was submitted or considered in the initial benefit
determination.

     In the case of an adverse determination, the Company will make a decision generally within 60
days of a request on appeal unless special circumstances make the rendering of a decision within
the 60-day period not feasible. In any event, the Company must render a decision within 120 days
after its receipt of a request for review. If an extension is required, the Company will provide a
written notice of this extension to the Claimant prior to the expiration of the regular 60-day
period specifying the circumstances that require the extension and the date upon which a final
decision can be expected.

     If on review, the Company determines that a Claimant is entitled to a benefit, he will receive
a statement describing this benefit, the method or methods of payment, the timing for his or her
benefit payment and other relevant information.

     If on review, a Claimant’s claim for benefits is denied, the Company will provide the Claimant
with adequate notice in writing setting forth the specific reasons for the denial and referring him
or her to the pertinent provisions of the Plan supporting the denial. This notice will contain a
statement that

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the Claimant will be provided, upon written request and free of charge, reasonable access to, and
copies of all documents, records and other information relevant to his or her claim, and a
statement regarding the Claimant’s right to bring an action under ERISA.

     If notice of the denial of a Claimant’s claim is not provided by the Company within a
reasonable time, as described above, his or her claim for benefits under the Plan is deemed denied
and the Claimant can then proceed to bring an ERISA civil action in state or federal court.

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