Document:

Exhibit 10.1

 

 

 

TERM LOAN AGREEMENT

 

dated as of April 22, 2014

 

among

 

COMMUNITY BANKERS TRUST CORPORATION

as Borrower

 

and

 

THE LENDERS FROM TIME TO TIME PARTY HERETO

 

and

 

SUNTRUST BANK

as Administrative Agent

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE I.	DEFINITIONS; CONSTRUCTION	1
	Section
    1.1.	Definitions	1
	Section
    1.2.	Accounting Terms and Determination	17
	Section
    1.3.	Terms Generally	18
	ARTICLE II.	AMOUNT AND TERMS OF THE TERM LOANS	18
	Section
    2.1.	Initial Term Loan Commitment	18
	Section
    2.2.	Procedure for Borrowing Term Loans	18
	Section
    2.3.	Funding of Borrowing	18
	Section
    2.4.	Interest Elections	19
	Section
    2.5.	Repayment and Prepayments of Term Loans	19
	Section
    2.6.	Interest on Term Loans	21
	Section
    2.7.	Fees	21
	Section
    2.8.	Computation of Interest and Fees	22
	Section
    2.9.	Inability to Determine Interest Rates	22
	Section
    2.10.	Evidence of Indebtedness	22
	Section
    2.11.	Illegality	22
	Section
    2.12.	Increased Costs	23
	Section
    2.13.	Funding Indemnity	24
	Section
    2.14.	Taxes	24
	Section
    2.15.	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	26
	Section
    2.16.	Mitigation of Obligations; Replacement of Lenders	27
	Section
    2.17.	Delayed Draw Term Loan	28
	ARTICLE III.	CONDITIONS PRECEDENT TO EFFECTIVENESS AND BORROWING	28
	Section
    3.1.	Conditions To Effectiveness and Borrowing	28
	Section
    3.2.	Conditions To Borrowing of Delayed Draw Term Loan	30
	ARTICLE IV.	REPRESENTATIONS AND WARRANTIES	31
	Section
    4.1.	Existence; Power	31
	Section
    4.2.	Organizational Power; Authorization	31
	Section
    4.3.	Governmental Approvals; No Conflicts	31
	Section
    4.4.	Financial Statements	32
	Section
    4.5.	Litigation Matters and Enforcement Actions	32
	Section
    4.6.	Compliance with Laws and Agreements	33
	Section
    4.7.	Investment Company Act	33
	Section
    4.8.	Taxes	33
	Section
    4.9.	Margin Regulations	33
	Section
    4.10.	ERISA	33
	Section
    4.11.	Disclosure	34
	Section
    4.12.	Subsidiaries	34
	Section
    4.13.	Dividend Restrictions; Other Restrictions	35
	Section
    4.14.	Capital Measures	35
	Section
    4.15.	FDIC Insurance	35
	Section
    4.16.	Ownership of Property	35
	Section
    4.17.	OFAC	36
	Section
    4.18.	Patriot Act	36
	Section
    4.19.	Solvency	36
	ARTICLE V.	AFFIRMATIVE COVENANTS	36
	Section
    5.1.	Financial Statements and Other Information	37
	Section
    5.2.	Notices of Material Events	39
	Section
    5.3.	Existence; Conduct of Business	40

 

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	Section
    5.4.	Compliance with Laws, Etc.	40
	Section
    5.5.	Payment of Obligations	40
	Section
    5.6.	Books and Records	40
	Section
    5.7.	Visitation, Inspection, Etc.	40
	Section
    5.8.	Maintenance of Properties; Insurance	40
	Section
    5.9.	Use of Proceeds	41
	Section
    5.10.	Further Assurances	41
	Article
    VI.	FINANCIAL COVENANTS	41
	Section
    6.1.	Regulatory Capital	41
	Section
    6.2.	Return on Average Assets	42
	Section
    6.3.	Minimum Cash at Borrower	42
	Section
    6.4.	Dividend Capacity	42
	Section
    6.5.	Classified Asset Ratio	42
	Article
    VII.	NEGATIVE COVENANTS	42
	Section
    7.1.	Indebtedness	43
	Section
    7.2.	Negative Pledge	44
	Section
    7.3.	Fundamental Changes	45
	Section
    7.4.	Restricted Payments	45
	Section
    7.5.	Restrictive Agreements	46
	Section
    7.6.	Investments, Etc.	46
	Section
    7.7.	Transactions with Affiliates	47
	Section
    7.8.	Hedging Transactions	47
	Section
    7.9.	Unsafe and Unsound Practices	47
	Section
    7.10.	Most Favored Lender Status	47
	Section
    7.11.	Sale of Assets	48
	Section
    7.12.	Government Regulations	48
	Article
    VIII.	EVENTS OF DEFAULT	48
	Section
    8.1.	Events of Default	48
	Article
    IX.	THE ADMINISTRATIVE AGENT	52
	Section
    9.1.	Appointment of Administrative Agent	52
	Section
    9.2.	Nature of Duties of Administrative Agent	52
	Section
    9.3.	Lack of Reliance on the Administrative Agent	53
	Section
    9.4.	Certain Rights of the Administrative Agent	53
	Section
    9.5.	Reliance by Administrative Agent	53
	Section
    9.6.	The Administrative Agent in its Individual Capacity	53
	Section
    9.7.	Successor Administrative Agent	54
	Article
    X.	MISCELLANEOUS	54
	Section
    10.1.	Notices	54
	Section
    10.2.	Waiver; Amendments	56
	Section
    10.3.	Expenses; Indemnification	57
	Section
    10.4.	Successors and Assigns	58
	Section
    10.5.	Governing Law; Jurisdiction; Consent to Service of Process	61
	Section
    10.6.	WAIVER OF JURY TRIAL	62
	Section
    10.7.	Right of Setoff	62
	Section
    10.8.	Counterparts; Integration	63
	Section
    10.9.	Survival	63
	Section
    10.10.	Severability	63
	Section
    10.11.	Confidentiality	64
	Section
    10.12.	Waiver of Effect of Corporate Seal	64
	Section
    10.13.	Patriot Act	64
	Section
    10.14.	Independence of Covenants	65
	Section
    10.15.	No Advisory or Fiduciary Relationship	65

 

    	- ii -

    	 

    

 

Schedules

 

	Schedule 4.12	-	Subsidiaries
	Schedule 7.1	-	Outstanding Indebtedness

 

Exhibits

 

	Exhibit A	-	Form of Assignment and Acceptance Agreement
	Exhibit B-1	-	Form of Initial Term Note
	Exhibit B-2	 	Form of Delayed Draw Term Note
	Exhibit 2.2	-	Form of Notice of Borrowing
	Exhibit 2.4	-	Form of Notice of Continuation
	Exhibit 3.1(b)(iii)	-	Form of Secretary’s Certificate
	Exhibit 3.1(b)(vi)	-	Form of Officer’s Certificate
	Exhibit 5.1(c)	-	Form of Compliance Certificate

  

 

 

[All schedules and exhibits have been omitted from this submission.
The Registrant agrees to furnish supplementally a copy of any schedule or exhibit to the Securities and Exchange Commission upon
request.]

 

    	- iii -

    	 

    

 

TERM LOAN AGREEMENT

 

THIS TERM LOAN AGREEMENT
(this “Agreement”) is made and entered into as of April 22, 2014, by and among COMMUNITY BANKERS
TRUST CORPORATION, a Virginia corporation (the “Borrower”), the several banks and other financial institutions
from time to time party hereto (the “Lenders”), and SUNTRUST BANK, in its capacity as Administrative Agent for
the Lenders (the “Administrative Agent”).

 

WITNESSETH:

 

WHEREAS, the Borrower
has requested that the Lenders, and the Lenders have agreed subject to the terms and conditions of this Agreement to, establish
a term loan facility in an aggregate principal amount of $12,000,000; and

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants herein contained, the Borrower, the Administrative Agent and the Lenders
agree as follows:

 

Article I.  DEFINITIONS;
CONSTRUCTION

 

Section 1.1.          Definitions.
 In addition to the other terms defined herein, the following terms used herein shall have the meanings herein specified
(to be equally applicable to both the singular and plural forms of the terms defined):

 

“Acquisition”
shall mean any transaction or a series of related transactions for the purpose of, or resulting, directly or indirectly, in (a) the
acquisition of all or substantially all of the assets of a Person, or of any business or division of any Person, (b) the acquisition
of greater than 50% of the capital stock, partnership interest, membership interest or other equity interests of any Person, or
otherwise causing a Person to become a Subsidiary, or (c) a merger or consolidation of, or any other combination with, another
Person (other than a Person that is a Subsidiary); provided that the Borrower or any Subsidiary is the surviving entity.

 

“Additional
Covenant” shall mean any affirmative or negative covenant or similar restriction applicable to the Borrower or any
of its Subsidiaries (regardless of whether such provision is labeled or otherwise characterized as a covenant) the subject matter
of which either (i) is similar to that of any covenant in Articles V, VI or VII of this Agreement, or related
definitions in Section 1.1 of this Agreement, but contains one or more percentages, amounts or formulas that is more restrictive
than those set forth herein or more beneficial to the holder or holders of the Indebtedness of the Borrower or its Subsidiaries
created or evidenced by the document in which such covenant or similar restriction is contained (and such covenant or similar restriction
shall be deemed an Additional Covenant only to the extent that it is more restrictive or more beneficial) or (ii) is different
from the subject matter of any covenant in Articles V, VI or VII of this Agreement, or related definitions
in Section 1.1 of this Agreement.

 

    	 

    	 

    

 

“Additional
Default” shall mean any provision contained in any document or instrument creating or evidencing Indebtedness of
the Borrower or any of its Subsidiaries which permits the holder or holders of such Indebtedness to accelerate (with the passage
of time or giving of notice or both) the maturity thereof or otherwise requires the Borrower or any of its Subsidiaries to purchase
such Indebtedness prior to the stated maturity thereof and which either (i) is similar to any Default or Event of Default contained
in Article VIII of this Agreement, or related definitions in Section 1.1 of this Agreement, but contains one or more
percentages, amounts or formulas that is more restrictive or has a shorter grace period than those set forth herein or is more
beneficial to the holder or holders of such other Indebtedness (and such provision shall be deemed an Additional Default only to
the extent that it is more restrictive or more beneficial) or (ii) is different from the subject matter of any Default or Event
of Default contained in Article VIII of this Agreement, or related definitions in Section 1.1 of this Agreement.

 

“Adjusted
LIBOR” means, with respect to each Interest Period for a Eurodollar Loan, (i) the rate per annum equal
to the London interbank offered rate for deposits in Dollars appearing on Reuters screen page LIBOR 01 (or on any successor or
substitute page of such service or any successor to such service, or such other commercially available source providing such quotations
as may be designated by the Administrative Agent from time to time) at approximately 11:00 A.M. (London time) two (2) Business
Days prior to the first day of such Interest Period, with a maturity comparable to such Interest Period, divided by (ii) a percentage
equal to 100% minus the then stated maximum rate of all reserve requirements (including any marginal, emergency, supplemental,
special or other reserves and without benefit of credits for proration, exceptions or offsets that may be available from time to
time) applicable to any member bank of the Federal Reserve System in respect of Eurocurrency liabilities as defined in Regulation
D (or any successor category of liabilities under Regulation D); provided, that if the rate referred to in clause (i) above
is not available at any such time for any reason, then the rate referred to in clause (i) shall instead be the interest rate per
annum, as determined by the Administrative Agent, to be the arithmetic average of the rates per annum at which deposits
in Dollars in an amount equal to the amount of such Eurodollar Loan are offered by major banks in the London interbank market to
the Administrative Agent at approximately 11:00 A.M. (London time), two (2) Business Days prior to the first day of such Interest
Period.

 

“Administrative
Agent” shall have the meaning assigned to such term in the opening paragraph hereof.

 

“Administrative
Questionnaire” shall mean, with respect to each Lender, an administrative questionnaire in the form prepared by the
Administrative Agent and submitted to the Administrative Agent duly completed by such Lender.

 

“Affiliate”
shall mean, as to any Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled
by, or is under common Control with, such Person.

 

“Allowance
for Loan and Lease Losses” shall mean, with respect to each Financial Institution Subsidiary, the balance for Allowance
for Loan and Lease Losses for the current period as reflected on such Financial Institution Subsidiary’s Call Report for
the most recently completed Fiscal Quarter.

 

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“Approved
Fund” shall mean any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding
or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business and that is
administered or managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that administers
or manages a Lender.

 

“Assignment
and Acceptance” shall mean an Assignment and Acceptance entered into by a Lender and an assignee (with the consent
of any party whose consent is required by Section 10.4(b)) and accepted by the Administrative Agent, in the form of Exhibit
A attached hereto or any other form approved by the Administrative Agent.

 

“Base Rate”
shall mean the highest of (i) the per annum rate which the Administrative Agent publicly announces from time to time as its
prime lending rate, as in effect from time to time, (ii) the Federal Funds Rate, as in effect from time to time, plus
one-half of one percent (0.50%) per annum and (iii) Adjusted LIBOR determined on a daily basis for an Interest Period of one (1)
month, plus one percent (1.00%) per annum. The Administrative Agent’s prime lending rate is a reference rate and does
not necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent may make commercial
loans or other loans at rates of interest at, above or below the Administrative Agent’s prime lending rate. Each change in
the any of the rates described above in this definition shall be effective from and including the date such change is announced
as being effective.

 

“Base Rate
Loan” shall mean a Term Loan to the extent it is accruing interest at the Base Rate.

 

“Base Rate
Margin” shall mean 2.50% per annum.

 

“Borrowing”
shall mean (i) the borrowing of the Initial Term Loan on the Closing Date and (ii) the Borrowing (if requested) of the
Delayed Draw Term Loan on or prior to the Delayed Draw Commitment Termination Date.

 

“Branch”
shall mean, with respect to any Financial Institution Subsidiary, any branch bank, branch office, branch agency, additional office,
or any branch place of business located in any State or Territory of the United States or in the District of Columbia at which
deposits are received, or checks paid, or money lent; provided, that, for purposes of this definition, “Branch”
shall refer to the real property and improvements thereon that are associated with such Branch.

 

“Business
Day” shall mean (i) any day other than a Saturday, Sunday or other day on which commercial banks in Atlanta,
Georgia or New York, New York are authorized or required by law to close and (ii) if such day relates to a continuation of,
a payment or prepayment of principal or interest on, or an Interest Period for, a Eurodollar Loan or a notice with respect thereto,
any day on which dealings in Dollars are carried on in the London interbank market.

 

    	- 3 -

    	 

    

 

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

 

“Change in
Control” shall mean (a) with respect to the Borrower, the occurrence of one or more of the following events:
(i) any sale, lease, exchange or other transfer (in a single transaction or a series of related transactions) of all or a
material portion of the assets of the Borrower (other than asset sales that are permitted by clause (D) in Section 7.3(a))
to any Person or “group” (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder in effect on the date hereof), (ii) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or “group” (within the meaning of the Securities Exchange Act of 1934 and
the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) of 25% or more of the outstanding
shares of the voting stock of the Borrower or (iii) occupation of a majority of the seats (other than vacant seats) on the
board of directors of the Borrower by Persons who were neither (A) nominated by the Borrower’s board of directors as
constituted as of the Closing Date or (B) appointed by directors so nominated, or (b) the Borrower shall own, directly
or indirectly, less than 100% of the voting stock of any Financial Institution Subsidiary.

 

“Change in
Law” shall mean (i) the adoption of any applicable law, rule or regulation after the date of this Agreement, (ii)
any change in any applicable law, rule or regulation, or any change in the interpretation, implementation or application thereof,
by any Governmental Authority after the date of this Agreement, or (iii) compliance by any Lender (or its applicable lending office)
with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued
after the date of this Agreement; provided that for purposes of this Agreement, (x) the Dodd-Frank Wall Street Reform and
Consumer Protection Act and all requests, rules, guidelines or directives in connection therewith and (y) all requests, rules,
guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or
any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III,
shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

 

“Classified
Asset” shall mean: (a) an asset classified as "substandard", "doubtful", or "loss"
in the most recent report of examination or inspection prepared by either a Federal or State supervisory agency; (b) an asset
in a nonaccrual status; (c) an asset on which principal or interest payments are more than thirty days past due; or (d) an
asset whose terms have been renegotiated or compromised due to the deteriorating financial condition of the obligor.

 

“Classified
Assets Ratio” shall be defined as (i) Classified Assets of the Financial Institution Subsidiaries divided
by (ii) Tier 1 Capital of the Financial Institution Subsidiaries plus Allowance for Loan and Lease Losses of the Financial
Institution Subsidiaries.

 

“Closing
Date” shall mean the date on which the conditions precedent set forth in Section 3.1 have been satisfied
or waived in accordance with the terms of this Agreement.

 

    	- 4 -

    	 

    

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended an in effect from time to time.

 

“Compliance
Certificate” shall mean a certificate from the Chief Financial Officer or the President of the Borrower in the form
of, and containing the certifications set forth in, the certificate attached hereto as Exhibit 5.1(c).

 

“Contractual
Obligation” of any Person shall mean any provision of any security issued by such Person
or of any agreement, instrument or undertaking under which such Person is obligated or by which it or any of the property in which
it has an interest is bound.

 

“Control”
shall mean the power, directly or indirectly, to direct or cause the direction of the management and policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise. The terms “Controlling”, “Controlled
by”, and “under common Control with” have meanings correlative thereto.

 

“Default”
shall mean any condition or event that, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

 

“Default
Interest” shall have the meaning set forth in Section 2.6(b).

 

“Delayed
Draw Commitment” shall mean the obligation of SunTrust Bank to make a Delayed Draw Term Loan hereunder to the Borrower
on the Delayed Draw Funding Date in a principal amount not exceeding the Delayed Draw Commitment Amount.

 

“Delayed
Draw Commitment Amount” shall mean $1,320,000.

 

“Delayed
Draw Commitment Termination Date” shall mean the earliest of (i) June 20, 2014 and (ii) the date upon
with the Delayed Draw Term Loan Commitment shall have been reduced to zero.

 

“Delayed
Draw Funding Date” shall mean any Business Day on or prior to the Delayed Draw Commitment Termination Date upon which
a Delayed Draw Term Loan is to be funded in accordance with Section 2.17.

 

“Delayed
Draw Term Loan” shall mean a loan made by SunTrust Bank to the Borrower under its Delayed Draw Commitment, which
may either be a Base Rate Loan or a Eurodollar Loan.

 

“Delayed
Draw Term Note” shall mean a promissory note of the Borrower payable to the order of SunTrust Bank in the principal
amount of the Delayed Draw Commitment, in substantially the form of Exhibit B-2.

 

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“Dividend
Capacity” shall mean, at any time of determination, the maximum aggregate amount of dividends that each Financial
Institution Subsidiary could declare and pay at such time while maintaining a “leverage ratio” (as defined at 12 C.F.R.
325.6(m) and determined in accordance with 12 C.F.R. 325 Subpart A (as the foregoing are in effect on the date hereof, together
with such amendments, modifications and supplements as may be acceptable to the Required Lenders)) at such time of at least seven
percent (7%); provided, that the amount calculated pursuant to this definition shall never be less than $0.

 

“Dollar(s)”
and the sign “$” shall mean lawful money of the United States of America.

 

“Employee
Benefit Plan” shall have that meaning as defined in Section 3(3) of ERISA and for which the Borrower or an ERISA
Affiliate maintains, contributes to or has an obligation to contribute to on behalf of participants who are or were employed by
the Borrower or its ERISA Affiliates or on behalf of beneficiaries of such participants.

 

“Environmental
Laws” shall mean all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices
or binding agreements issued, promulgated or entered into by or with any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the management, Release or threatened Release of any Hazardous Material or to
health and safety matters.

 

“Environmental
Liability” shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental
investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of
the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) any actual or alleged violation of
any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) any actual or alleged exposure to any Hazardous Materials, (d) the Release or threatened Release of any
Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed
or imposed with respect to any of the foregoing.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statute including
any regulations promulgated thereunder.

 

“ERISA
Affiliate” shall mean any trade or business (whether or not incorporated), which, together with the Borrower, is
treated as a single employer under Section 414(b) or (c) of the Code or, solely for the purposes of Section 303 of ERISA and Section
430 of the Code, is treated as a single employer under Section 414 of the Code.

 

    	- 6 -

    	 

    

 

“ERISA
Event” shall mean with respect to the Borrower or any ERISA Affiliate, (i) any “reportable event”, as
defined in Section 4043 of ERISA with respect to a Plan (other than an event for which the 30-day notice period is waived); (ii)
the failure to make required contributions when due to a Multiemployer Plan or Plan or the imposition of a Lien in favor of a Plan
under Section 430(k) of the Code or Section 303(k) of ERISA; (iii) the filing pursuant to Section 412(c) of the Code or Section
302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (iv) the imposition of
any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, or the
imposition of an Lien in favor of the PBGC under Title IV of ERISA; (v) the receipt from the PBGC or a plan administrator appointed
by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan;
(vi) any other event or condition that might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Plan or Multiemployer Plan or for the imposition of liability under Section
4069 or 4212(c) of ERISA; (vii) the incurrence of any liability with respect to the withdrawal or partial withdrawal from any Plan
including the withdrawal from a Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer,
as defined in Section 4001(a)(2) of ERISA, or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (viii) the incurrence of any Withdrawal Liability with respect to any Multiemployer Plan; (ix) the receipt of any
notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be,
insolvent (within the meaning of Section 4245 of ERISA) or in reorganization (within the meaning of Section 4241 of ERISA), or
in “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA); or (x) a determination
that a Plan is, or is reasonably expected to be, in “at risk” status (within the meaning of Section 430 of the Code
or Section 303 of ERISA).

 

“Eurodollar”
when used in reference to a Term Loan, refers to such Term Loan bearing interest at a rate determined by reference to Adjusted
LIBOR.

 

“Eurodollar
Loan” shall mean a Term Loan to the extent it is accruing interest based on Adjusted LIBOR.

 

“Event of
Default” shall have the meaning provided in Article VIII.

 

“Excluded
Taxes” shall mean with respect to the Administrative Agent, any Lender or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by)
its net income by the United States of America, or by the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any
branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which any
Lender is located and (c) in the case of a Foreign Lender, any withholding tax that (i) is imposed on amounts payable
to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office),
(ii) is imposed on amounts payable to such Foreign Lender at any time that such Foreign Lender designates a new lending office,
other than taxes that have accrued prior to the designation of such lending office that are otherwise not Excluded Taxes, and (iii) 
is attributable to such Foreign Lender’s failure to comply with Section 2.14(e).

 

“FDIC”
shall mean the Federal Deposit Insurance Corporation.

 

    	- 7 -

    	 

    

 

“Federal
Funds Rate” shall mean, for any day, the rate per annum (rounded upwards, if necessary, to the next 1/100th
of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with member banks of the Federal Reserve
System arranged by Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding Business
Day or, if such rate is not so published for any Business Day, the Federal Funds Rate for such day shall be the average rounded
upwards, if necessary, to the next 1/100th of 1% of the quotations for such day on such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent.

 

“Financial
Institution Subsidiary” shall mean each of (a) the Financial Institution Subsidiary set forth on Schedule
4.12 and designated as a “Financial Institution Subsidiary” and (b) each other Subsidiary hereafter formed
or acquired that is a regulated financial institution.

 

“Fiscal
Quarter” shall mean each fiscal quarter (including the fiscal quarter at the fiscal year-end) of the Borrower and
its Subsidiaries.

 

“Foreign
Lender” shall mean any Lender that is not a United States person under Section 7701(a)(30) of the Code.

 

“FRB”
shall mean the Board of Governors of the Federal Reserve System.

 

“FR Y-9C
Report” shall mean the “Consolidated Financial Statements for Bank Holding Companies (FR Y-9C)” submitted
by the Borrower as required by Section 5(c) of the Bank Holding Company Act (12 U.S.C. 1844) and Section 225.5(b) of
Regulation Y (12 CFR 225.5(b)), or any successor or similar replacement report.

 

“FR Y-9LP
Report” shall mean the “Parent Company Only Financial Statements for Large Bank Holding Companies (FR Y-9LP)”
submitted by the Borrower as required by Section 5(c) of the Bank Holding Company Act (12 U.S.C. 1844) and Section 225.5(b) of
Regulation Y (12 CFR 225.5(b)), or any successor or similar replacement report.

 

“GAAP”
shall mean generally accepted accounting principles in the United States applied on a consistent basis and subject to the terms
of Section 1.2.

 

“Governmental
Authority” shall mean 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, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government,
including without limitation, the FRB, the FDIC and any other federal or state agency charged with the supervision or regulation
of depositary institutions or holding companies of depositary institutions (as used herein, including any trust company subsidiaries
whether or not they take deposits), or engaged in the insurance of depositary institution deposits, or any court, administrative
agency or commission or other governmental agency, authority or instrumentality having supervisory or regulatory authority with
respect to the Borrower and/or any of its Subsidiaries.

 

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls,
radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental
Law.

 

    	- 8 -

    	 

    

 

“Hedging
Obligations” of any Person shall mean any and all obligations of such Person, whether absolute or contingent and
howsoever and whensoever created, arising, evidenced or acquired under (i) any and all Hedging Transactions, (ii) any and all cancellations,
buy backs, reversals, terminations or assignments of any Hedging Transactions and (iii) any and all renewals, extensions and modifications
of any Hedging Transactions and any and all substitutions for any Hedging Transactions.

 

“Hedging
Transaction” of any Person shall mean (a) any transaction (including an agreement with respect to any such transaction)
now existing or hereafter entered into by such Person that is a rate swap transaction, swap option, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap or option, bond option, interest rate option, foreign exchange transaction,
cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency
option, spot transaction, credit protection transaction, credit swap, credit default swap, credit default option, total return
swap, credit spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities
lending transaction, or any other similar transaction (including any option with respect to any of these transactions) or any combination
thereof, whether or not any such transaction is governed by or subject to any master agreement and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement,
or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

 

“Indebtedness”
of any Person shall mean, without duplication (i) all obligations of such Person for borrowed money, (ii) all obligations
of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person in
respect of the deferred purchase price of property or services (other than trade payables incurred in the ordinary course of business;
provided, that for purposes of Section 8.1(f), trade payables overdue by more than 90 days shall be included
in this definition except to the extent that any of such trade payables are being disputed in good faith and by appropriate measures),
(iv) all obligations of such Person under any conditional sale or other title retention agreement(s) relating to property
acquired by such Person, (v) all obligations of such Person under capital leases and all monetary obligations of such Person
under Synthetic Leases, (vi) all obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances
or similar extensions of credit, (vii) all guarantees by such Person of Indebtedness of others, (viii) all Indebtedness
of a third party secured by any Lien on property owned by such Person, whether or not such Indebtedness has been assumed by such
Person, (ix) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for
value any capital stock of such Person, (x) all Hedging Obligations of such Person; and (xi) all obligations of such Person in
respect of any trust preferred securities, preferred equity or other types of hybrid capital securities issued by such Person.
For purposes of determining the amount of attributed Indebtedness from Hedging Obligations, the “principal amount”
of any Hedging Obligations at any time shall be the Net Mark-to-Market Exposure of such Hedging Obligations.

 

    	- 9 -

    	 

    

 

“Indemnified
Taxes” shall mean Taxes other than Excluded Taxes.

 

“Initial
Term Loan” shall have the meaning set forth in Section 2.1.

 

“Initial
Term Loan Commitment” shall mean the obligation of SunTrust Bank to make the Initial Term Loan hereunder to the Borrower
on the Closing Date in a principal amount equal to $10,680,000.

 

“Initial
Term Note” shall mean a promissory note of the Borrower payable to the order of SunTrust Bank in the principal amount
of the Initial Term Loan Commitment, in substantially the form of Exhibit B-1.

 

“Interest
Period” shall mean a period of one, two or three months, provided that: 

 

			(i)          the initial Interest Period for
each Term Loan shall commence on the date of funding of such Term Loan and each Interest Period occurring thereafter in respect
of the Term Loans shall commence on the day on which the next preceding Interest Period expires;

 

(ii)         if
any Interest Period would otherwise end on a day other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day, unless such Business Day falls in another calendar month, in which case such Interest Period would end
on the next preceding Business Day;

 

(iii)        any
Interest Period which begins on the last Business Day of a calendar month or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period shall end on the last Business Day of such calendar month; and

 

(iv)        no
Interest Period may extend beyond the Maturity Date.

 

“Investments”
shall have the meaning set forth in Section 7.6 hereof.

 

“Lender
Insolvency Event” shall mean, as to any Lender, that such Lender has, or has a direct or indirect parent company
that has, (i) become the subject of a proceeding under means the Bankruptcy Code of the United States of America, or any other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions, or (ii) had appointed for
it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged
with reorganization or liquidation of its business or assets, including the FDIC or any other state or federal regulatory authority
acting in such a capacity; provided that a Lender shall not be deemed to be subject to a Lender Insolvency Event solely
by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof
by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the
jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit
such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such
Lender. Any determination by the Administrative Agent that a Lender has become subject to a Lender Insolvency Event shall be conclusive
and binding absent manifest error.

 

    	- 10 -

    	 

    

 

“Lenders”
shall have the meaning assigned to such term in the opening paragraph of this Agreement.

 

“Lien”
shall mean any mortgage, pledge, security interest, lien (statutory or otherwise), charge, encumbrance, hypothecation, assignment,
deposit arrangement, or other arrangement having the practical effect of the foregoing or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention
agreement and any capital lease having the same economic effect as any of the foregoing).

 

“Loan Documents”
shall mean, collectively, this Agreement, each Note executed in connection herewith, and any and all other instruments, agreements,
documents and writings executed in connection with any of the foregoing.

 

“Material
Adverse Effect” shall mean, with respect to any event, act, condition or occurrence of whatever nature (including
any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singly or in conjunction
with any other event or events, act or acts, condition or conditions, occurrence or occurrences whether or not related, a material
adverse change in, or a material adverse effect on, (i) the business, results of operations, financial condition, assets,
liabilities or prospects of the Borrower and of the Borrower and its Subsidiaries taken as a whole, (ii) the ability of the
Borrower to perform any of its material obligations under the Loan Documents, (iii) the rights and remedies of Administrative
Agent and the Lenders under any of the Loan Documents or (iv) the legality, validity or enforceability of any of the Loan
Documents.

 

“Maturity
Date” shall mean April 21, 2017.

 

“Minimum
Liquidity” shall mean unrestricted cash or cash equivalents held by the Borrower and not subject to any Lien.

 

“Multiemployer
Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA.

 

“Net Mark-to-Market
Exposure” of any Person shall mean, as of any date of determination with respect to any Hedging Obligation, the excess
(if any) of all unrealized losses over all unrealized profits of such Person arising from such Hedging Obligation. “Unrealized
losses” shall mean the fair market value of the cost to such Person of replacing the Hedging Transaction giving rise to such
Hedging Obligation as of the date of determination (assuming the Hedging Transaction were to be terminated as of that date), and
“unrealized profits” means the fair market value of the gain to such Person of replacing such Hedging Transaction as
of the date of determination (assuming such Hedging Transaction were to be terminated as of that date).

 

    	- 11 -

    	 

    

 

“Note”
shall mean the Initial Term Note or the Delayed Draw Term Note or both, as the context requires, together with any replacement
or substitutes notes issued therfor.

 

“Notice
of Borrowing” shall have the meaning as set forth in Section 2.2.

 

“Notice
of Continuation” shall mean the notice given by the Borrower to the Administrative Agent in respect of the continuation
of a Term Loan as provided in Section 2.4(b).

 

“Obligations”
shall mean all indebtedness, obligations, liabilities and other amounts owing by the Borrower to the Administrative Agent and any
Lender and, only with respect to Hedging Transactions, any Affiliate of the Administrative Agent or any Lender, pursuant to or
in connection with (a) this Agreement or any other Loan Document, including without limitation, all principal, interest (including
any interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like
proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding),
all reimbursement obligations under letters of credit, all Hedging Obligations of the Borrower, fees, expenses, indemnification
and reimbursement payments, costs and expenses (including all fees and expenses of counsel to Administrative Agent and any Lender
incurred pursuant to this Agreement or any other Loan Document), whether direct or indirect, absolute or contingent, liquidated
or unliquidated, now existing or hereafter arising hereunder or thereunder, together with all renewals, extensions, modifications
or refinancings thereof and (b) any agreement governing the provision to the Borrower or any Subsidiary of treasury or cash
management services.

 

“OFAC”
shall mean the U.S. Department of the Treasury’s Office of Foreign Assets Control.

 

“Other
Real Estate Owned” shall mean any real estate acquired in satisfaction of debts through foreclosure (as determined
by reference to one or more line items describing “other real estate owned” on the consolidated balance sheet included
in the Borrower’s most recent Form 10-Q or 10-K, as applicable).

 

“Other Taxes”
shall mean any and all present and future stamp or documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made by, or on behalf of, the Borrower hereunder or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement or any other Loan Documents.

 

“Participant”
shall have the meaning set forth in Section 10.4(c).

 

    	- 12 -

    	 

    

 

“Payment
Office” shall mean the office of the Administrative Agent located at 303 Peachtree Street, Atlanta, Georgia 30308,
or such other location as to which the Administrative Agent shall have given written notice to the Borrower and the other Lenders.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA, and any successor entity performing similar
functions.

 

“Permitted
Encumbrances” shall mean

 

			(i)          Liens imposed by law for taxes not
yet due or which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with GAAP;

 

(ii)
      statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other Liens imposed by law created
in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves are being maintained in accordance with GAAP;

 

			(iii)        pledges and deposits made in the ordinary
course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations
and Liens arising by statute in connection with worker’s compensation, unemployment insurance, old age benefits, social security
obligations, taxes, assessments, statutory obligations or other similar charges, good faith cash deposits in connection with tenders,
contracts or leases to which the Borrower or any of its Subsidiaries is a party or other cash deposits in any such foregoing case
that is required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money
and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which
prevent enforcement of the matter under contest and adequate reserves have been established therefor;

 

(iv)
    deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary course of business;

 

			(v)         judgment and attachment Liens not giving
rise to an Event of Default or Liens created by or existing from any litigation or legal proceeding that are currently being contested
in good faith by appropriate proceedings and with respect to which adequate reserves are being maintained in accordance with GAAP;

 

			(vi)        easements, zoning restrictions, rights-of-way
and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary
obligations and do not materially detract from the value of the affected property or materially interfere with the ordinary conduct
of business of the Borrower and its Subsidiaries taken as a whole;

 

    	- 13 -

    	 

    

 

(vii)       Liens,
charges and encumbrances incidental to the conduct of the business of the Financial Institution Subsidiaries incurred in the ordinary
course of business and consistent with past practices;

 

(viii)      Liens
to secure public funds or other pledges of funds required by law to secure deposits; and

 

(ix)         repurchase
agreements, reverse repurchase agreements and other similar transactions entered into by any Financial Institution Subsidiary in
the ordinary course of its banking, deposit or trust business;

 

provided, that
the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

 

“Permitted
Financial Institution Subsidiary Indebtedness” means obligations incurred by any Financial Institution Subsidiary
in the ordinary course of business in such circumstances as may be incidental or usual in carrying on the banking or trust or
mortgage business of a bank, thrift, trust company, or mortgage company incurred in accordance with applicable laws and regulations
and safe and sound practices, including obligations incurred in connection with: (a) any deposits with or funds collected by such
Subsidiary; (b) the endorsement of instruments for deposit or collection in the ordinary course of business, (c) any bankers acceptance
credit of such Subsidiary; (d) any check, note, certificate of deposit, money order, traveler’s check, draft or bill of
exchange issued, accepted or endorsed by such Subsidiary or letter of credit issued by such Subsidiary; (e) any discount with,
borrowing from, or other obligation to, any Federal Reserve Bank or any Federal Home Loan Bank; (f) any agreement made by such
Subsidiary to purchase or repurchase securities, loans or Federal funds or any interest or participation in any thereof; (g) any
guarantee, indemnity or similar obligation incurred by such Subsidiary in the ordinary course of its banking or trust business
and consistent with past practices; (h) any transaction in the nature of an extension of credit, whether in the form of a commitment
or otherwise, undertaken by such Subsidiary for the account of a third party with the application of the same banking considerations
and legal lending limits that would be applicable if the transaction were a loan to such party; (i) any transaction in which such
Subsidiary acts solely in the fiduciary or agency capacity; (j) other short-term liabilities similar to those enumerated in clauses
(a) and (f) above, including United States Treasury tax and loan borrowings, (k) any Hedging Obligations or other obligations
or liabilities relating to Hedging Transactions entered into by such Subsidiary in connection with facilitating the hedging risk
of a customer of such Subsidiary or another Financial Institution Subsidiary, but excluding any Hedging Obligations or other obligations
or liabilities relating to Hedging Transactions entered into for speculative purposes or that are speculative in nature, (l) any
Indebtedness of one Financial Institution Subsidiary to another Financial Institution Subsidiary and (m) any Indebtedness of such
Subsidiary relating to letters of credit issued or confirmed by a third party financial institution for the account of such Subsidiary
for the ultimate account of such Subsidiary’s customer. 

 

“Person”
shall mean any individual, partnership, firm, corporation, association, joint venture, limited liability company, trust or other
entity, or any Governmental Authority.

 

    	- 14 -

    	 

    

 

“Plan”
shall mean any Employee Benefit Plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate either (i) maintains, contributes
to or has an obligation to contribute to on behalf of participants who are or were employed by any of them (or on behalf of beneficiaries
of such participants) or (ii) is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA or a “contributing sponsor” (as defined in ERISA Section 4001(a)(13)).

 

“Pro Rata
Share” shall mean, with respect to any Lender at any time, a percentage, the numerator of which shall be the principal
amount of Term Loans held by such Lender and the denominator of which shall be the aggregate principal amount of all Term Loans
hereunder.

 

“Qualified
Plan” shall mean an Employee Benefit Plan that is intended to be tax-qualified under Section 401(a) of the Code.

 

“Regulation
D” shall mean Regulation D of the FRB, as the same may be in effect from time to time, and any successor regulations.

 

“Release”
means any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or
migration into the environment (including ambient air, surface water, groundwater, land surface or subsurface strata) or within
any building, structure, facility or fixture.

 

“Required
Lenders” shall mean, at any time, (a) if the number of Lenders under this Agreement at the time of determination
shall equal two, both such Lenders, (b) if the number of Lenders under this Agreement at the time of determination shall equal
three, any two of such Lenders so long as such two Lenders hold more than 50% of the aggregate outstanding Term Loans at such time,
and (c) if the number of Lenders under this Agreement at the time of determination shall equal four or more, those Lenders holding
more than 50% of the aggregate outstanding Term Loans at such time; provided, that, with respect to any Lender as to which
a Lender Insolvency Event has occurred, the outstanding principal amount of the Term Loans held by such Lender shall be excluded
for purposes of determining Required Lenders.

 

“Responsible
Officer” shall mean any of the president, the chief executive officer, the chief operating officer, the chief financial
officer, the treasurer, the general counsel or a managing director of the Borrower or such other representative of the Borrower
as may be designated in writing by any one of the foregoing with the consent of the Administrative Agent; and, with respect to
the financial covenants and the certificate delivered pursuant to Section 3.1(b)(vi) only, the chief financial officer,
controller or the treasurer of the Borrower.

 

    	- 15 -

    	 

    

 

“Return on
Average Assets” shall mean, with respect to the Borrower as of the last day of each Fiscal Quarter, a percentage
determined by dividing (a) the sum of the “net income” of the Borrower (as determined by reference to the line item
“net income” under the “Consolidated Income Statement” in the Borrower’s most recent Form 10-Q or
10-K, as applicable) for such Fiscal Quarter and the three immediately preceding Fiscal Quarters by (b) the average of the
“total assets” of the Borrower (as determined by reference to the line item “total assets” under the “Consolidated
Balance Sheet” in the Borrower’s most recent Form 10-Q or 10-K, as applicable) for such four Fiscal Quarters.

 

“RICO Related
Law” shall mean the Racketeer Influenced and Corrupt Organizations Act of 1970 or any other federal, state or local
law for which forfeiture of assets is a potential penalty.

 

“Sanctioned
Country” shall mean a country subject to a sanctions program identified on the list maintained by OFAC and available
at http://www.treasury.gov/resource-center/sanctions/Pages/default.aspx, or as otherwise published from time to time.

 

“Sanctioned
Person” shall mean (i) a Person named on the list of “Specially Designated Nationals and Blocked Persons”
maintained by OFAC available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx, or as otherwise
published from time to time, or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization
controlled by a Sanctioned Country, or (C) a person resident in a Sanctioned Country, to the extent subject to a sanctions
program administered by OFAC.

 

“Subsidiary”
shall mean, with respect to any Person (the “parent”), any corporation, partnership, joint venture, limited
liability company, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as
any other corporation, partnership, joint venture, limited liability company, association or other entity (i) of which securities
or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power, or in the
case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held, or (ii) that
is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or
more subsidiaries of the parent. Unless otherwise indicated, all references to “Subsidiary” under this Agreement shall
mean a Subsidiary of the Borrower.

 

“Synthetic
Lease” of any Person shall mean (a) a lease designed to have the characteristics of a loan for federal income
tax purposes while obtaining operating lease treatment for financial accounting purposes, or (b) an agreement for the use
or possession of property creating obligations that are not required to appear on the balance sheet of such Person but which, upon
the insolvency or bankruptcy of such Person would be characterized by a court of competent jurisdiction as indebtedness of such
Person.

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

    	- 16 -

    	 

    

 

“Term Loan”
shall mean, individually, each of the Initial Term Loan and the Delayed Draw Term Loan. The Initial Term Loan and the Delayed Draw
Term Loan are collectively referred to herein as the “Term Loans”:

 

“Term Loan
Commitment” shall mean, collectively, the Initial Term Loan Commitment and the Delayed Draw Commitment. The aggregate
principal amount of all Term Loan Commitments on the Closing Date is $12,000,000.

 

“Tier 1
Capital” shall have the definition provided in, and shall be determined in accordance with, the rules and regulations
of the FDIC.

 

“Type”,
when used in reference to a Term Loan, refers to whether the rate of interest on such Term Loan, is determined by reference to
Adjusted LIBOR or the Base Rate.

 

“Withdrawal
Liability” shall mean liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

Section 1.2.          Accounting
Terms and Determination.  Unless otherwise defined or specified herein, all accounting terms used herein shall be interpreted,
all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be
prepared, in accordance with GAAP as in effect from time to time, applied on a basis consistent (except for such changes approved
by the Borrower’s independent public accountants) with the most recent audited consolidated financial statement of the Borrower
delivered pursuant to Section 5.1(a) (or, if no such financial statements have been delivered, on a basis consistent
with the audited consolidated financial statements of the Borrower and its Subsidiaries last delivered to the Administrative Agent
in connection with this Agreement); provided, that if the Borrower notifies the Administrative Agent that the Borrower
wishes to amend any covenant in Article VI to eliminate the effect of any change in GAAP on the operation of such
covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article VI
for such purpose), then the Borrower’s compliance with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended
in a manner satisfactory to the Borrower and the Required Lenders. Notwithstanding any other provision contained herein, all terms
of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein
shall be made, without giving effect to any election under Accounting Standards Codification Section 825-10 to value any Indebtedness
or other liabilities of the Borrower or any Subsidiary at “fair value”, as defined therein.

 

    	- 17 -

    	 

    

 

Section 1.3.          Terms
Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. The
words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”. In the computation of 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”. Unless the context
requires otherwise (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,
restated, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set
forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted
assigns, (iii) the words “hereof”, “herein” and “hereunder” and words of similar import
shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references
to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles, Sections, Exhibits and Schedules
to this Agreement; (v) all references to a specific time shall be construed to refer to Atlanta, Georgia time, unless otherwise
indicated; and (vi) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation
as amended, modified or supplemented from time to time. To the extent that any of the representations and warranties contained
in Article IV under this Agreement is qualified by “Material Adverse Effect”, then the qualifier “in
any material respect” contained in Section 8.1(c) shall not apply. Unless otherwise expressly provided herein,
all references to dollar amounts shall mean Dollars.

 

Article II.  AMOUNT
AND TERMS OF THE TERM LOANS

 

Section 2.1.          Initial
Term Loan Commitment.  Subject to the terms and conditions
set forth herein, including, without limitation, satisfaction of the conditions set forth in Section 3.1, SunTrust Bank
agrees to make a single term loan (the “Initial Term Loan”) to the Borrower on the Closing Date in a principal
amount not to exceed its Initial Term Loan Commitment. Any portion of the Initial Term Loan Commitment not utilized by the Borrower
on the Closing Date shall be terminated and cancelled on such date.

 

Section 2.2.          Procedure
for Borrowing Term Loans. The Borrower shall give the Administrative
Agent written notice of its request for a Borrowing substantially in the form of Exhibit 2.2 attached hereto (the “Notice
of Borrowing”); provided, that with respect to the Borrowing of the Delayed Draw Term Loan, such Notice of Borrowing
must be received by the Administrative Agent prior to 11:00 a.m. on the date that is one (1) Business Day prior to the date of
such Borrowing. The Notice of Borrowing shall be irrevocable and shall specify: (i) the date of such Borrowing (which shall be
a Business Day), (ii) the duration of the Interest Period applicable thereto and (iii) the account of the Borrower to
which the proceeds of the applicable Term Loan should be credited.

 

Section 2.3.          Funding
of Borrowing.

 

Subject to the
terms and conditions herein, each Lender will make available such portion of the applicable Term Loan to be made by it hereunder
on the proposed date thereof by wire transfer in immediately available funds by 11:00 a.m. to the Administrative Agent at the Payment
Office. The Administrative Agent will make the proceeds of such Term Loan available to the Borrower on the date specified in the
Notice of Borrowing by promptly crediting the proceeds thereof by the close of business on such date, to an account maintained
by the Borrower with the Administrative Agent or at the Borrower’s option, by effecting a wire transfer of such amounts to
an account designated by the Borrower to the Administrative Agent as set forth in the Notice of Borrowing.

 

    	- 18 -

    	 

    

 

Section 2.4.          Interest
Elections.

 

(a)          The
Borrowing of the Initial Term Loan and the Delayed Draw Term Loan, respectively, shall each be a Eurodollar Loan and shall each
have an initial Interest Period as specified in the applicable Notice of Borrowing. Subject to the terms and conditions hereof,
the Borrower shall continue each Term Loan as a Eurodollar Loan by electing Interest Periods as provided in this Section. The Borrower
may not elect to convert a Term Loan into a Base Rate Loan.

 

(b)          To
make a continuation election pursuant to this Section, the Borrower shall give the Administrative Agent written notice substantially
in the form of Exhibit 2.4 attached hereto (a “Notice of Continuation”), prior to 11:00 a.m. three
(3) Business Days prior to the expiration of each then current Interest Period, that the applicable Term Loan is to be continued
as a Eurodollar Loan. Each such Notice of Continuation shall be irrevocable and shall specify (i) the effective date of the
election made pursuant to such Notice of Continuation, which shall be a Business Day and (ii) the Interest Period applicable
thereto, which shall be a period contemplated by the definition of “Interest Period”. Any election under this clause (b)
shall be for the entire principal amount of the applicable Term Loan then outstanding.

 

(c)          If,
on the expiration of any Interest Period, the Borrower shall have failed to deliver a Notice of Continuation, then, unless the
applicable Term Loan is repaid as provided herein, the Borrower shall be deemed to have elected an Interest Period of one (1)
month. Each Term Loan may be continued as a Eurodollar Loan if a Default or an Event of Default exists unless the Administrative
Agent or any of the Lenders shall have objected in writing to such continuation as a Eurodollar Loan (in which case the applicable
Term Loan will automatically be converted to a Base Rate Loan (and shall thereafter bear interest, subject to Section 2.6(b),
at the Base Rate plus the Base Rate Margin) on the last day of the then current Interest Period applicable to such Term Loan).

 

(d)          Upon
receipt of any Notice of Continuation, the Administrative Agent shall promptly notify each Lender of the details thereof.

 

Section 2.5.          Repayment
and Prepayments of Term Loans.

 

(a)          The
Borrower unconditionally promises to pay to the Administrative Agent for the account of each Lender, based on each Lender’s
Pro Rata Share, the aggregate outstanding principal amount of the Term Loans in consecutive quarterly installments on the last
day of each of March, June, September and December of each year, commencing on December 31, 2014, in the principal amount
equal to the aggregate Term Loans outstanding immediately after the Delayed Draw Funding Date multiplied by (i) 7.5%, for
each of the first six (6) such quarterly installments and (ii) 10%, for each of the next four (4) quarterly installments thereafter;
provided, that, to the extent not previously paid, the aggregate outstanding principal balance of the Term Loans shall be
due and payable (together with accrued and unpaid interest thereon) on the Maturity Date. All payments in respect of the Term Loans
shall be applied first to accrued interest and the balance, if any, to principal. Once repaid, no portion of the Term Loans may
be reborrowed.

 

    	- 19 -

    	 

    

 

(b)          The
Borrower shall have the right at any time and from time to time to prepay any Term Loan, in whole or in part, without premium or
penalty, by giving irrevocable written notice to the Administrative Agent no later than three (3) Business Days prior to any such
prepayment. Each such notice shall be irrevocable and shall specify the proposed date of such prepayment and the principal amount
of each Term Loan to be prepaid. Upon receipt of any such notice, the Administrative Agent shall promptly notify each Lender of
the contents thereof and of such Lender’s Pro Rata Share of any such prepayment. If such notice is given, the aggregate amount
specified in such notice shall be due and payable on the date designated in such notice, together with accrued interest to such
date on the amount so prepaid in accordance with Section 2.15(a); provided, that if a Eurodollar Loan is prepaid
on a date other than the last day of an Interest Period applicable thereto, the Borrower shall also pay all amounts required pursuant
to Section 2.13. Each partial prepayment of a Term Loan shall be in an amount not less than $250,000 and in integral
multiples of $100,000 in excess thereof. Any prepayments made by the Borrower pursuant to this clause (b) shall be applied by the
Administrative Agent to principal installments of the applicable Term Loan in inverse order of maturity (including, without limitation,
the final payment due on the Maturity Date), ratably to each Lender according to its Pro Rata Share.

 

(c)          No
later than the Business Day following the date of receipt by the Borrower or any of its Subsidiaries of any proceeds of any sale
or disposition by the Borrower or any of its Subsidiaries of any of its assets, or any proceeds from any casualty insurance policies
or eminent domain, condemnation or similar proceedings, the Borrower shall prepay the Term Loans, on a ratable basis, in an amount
equal to all such proceeds, net of commissions and other reasonable and customary transaction costs, fees and expenses properly
attributable to such transaction and payable by the Borrower in connection therewith (in each case, paid to non-Affiliates); provided
that the Borrower shall not be required to prepay the Term Loans with respect to (1) proceeds from asset sales or dispositions
permitted under Section 7.11(i) or (ii) and (2) proceeds from (x) casualty insurance policies or eminent
domain, condemnation or similar proceedings and (y) asset sales and dispositions permitted pursuant to Section 7.11(iii)
to the extent that the Borrower has entered into a purchase agreement or binding letter of intent with respect to the reinvestment
of the net proceeds of such sale or disposition in a new Branch within 360 days following receipt thereof, so long as such proceeds
are held in a cash collateral account at SunTrust Bank and in which the Borrower or applicable Subsidiary has granted to the Administrative
Agent for the benefit of the Lenders a first priority Lien securing the Obligations; provided, further that (A) if
the Borrower has not entered into a purchase agreement or binding letter of intent within such 360 day period, or if the Borrower
has entered into a purchase agreement or binding letter of intent within such 360 day period but has not consummated the purchase
of a new Branch within 120 days after entering into such purchase agreement or binding letter of intent related to such new Branch,
then the Borrower shall be required to prepay the Term Loans (to the extent not otherwise prohibited by applicable law) in an amount
equal to one hundred percent of the amount of such net proceeds received pursuant to such asset sale or disposition and (B) in
the event of any reinvestment of net proceeds from the sale or disposition in a new Branch, if the total purchase price of such
new Branch is less than the net proceeds of such sale or disposition of the subject Branch, then the Borrower shall be required
to prepay the Term Loans (to the extent not otherwise prohibited by applicable law) in an amount equal to the difference between
such purchase price and the net proceeds of such sale or disposition of the subject Branch. Any prepayments made by the Borrower
pursuant to this clause (c) shall be applied as follows: first, to the Administrative Agent’s fees and reimbursable
expenses then due and payable pursuant to any of the Loan Documents; second, to interest and fees then due and payable hereunder,
to the Lenders based on their Pro Rata Share; and third, to the principal balance of the Term Loans, until the same shall
have been paid in full, to the Lenders based on their Pro Rata Share, and applied to installments of the Term Loans in inverse
order of maturity (including, without limitation, the final payment due on the Maturity Date).

 

    	- 20 -

    	 

    

 

Section 2.6.          Interest
on Term Loans.

 

(a)          The
Borrower shall pay interest on the Term Loans at Adjusted LIBOR for the applicable Interest Period then in effect plus 3.50%
per annum. To the extent a Term Loan is required to be converted to a Base Rate Loan hereunder, the Borrower shall pay interest
thereon at the Base Rate in effect from time to time plus the Base Rate Margin.

 

(b)          Following
the occurrence of an Event of Default, and in any event after acceleration, the Borrower shall pay interest (“Default
Interest”) with respect to a Eurodollar Loan, at the rate otherwise applicable for the then-current Interest Period
plus an additional 2.00% per annum until the last day of such Interest Period, and thereafter, and with respect to a Base
Rate Loan and all other Obligations under this Agreement (other than the Term Loans), at the Base Rate plus the Base Rate
Margin plus 2.00% per annum.

 

(c)          Interest
on the principal amount of the Term Loans shall accrue from and including the date each such Term Loan is funded to but excluding
the date of any repayment thereof (or portion thereof). Interest on a Eurodollar Loan shall be payable in arrears on the last day
of each Interest Period applicable thereto and in the case of a Eurodollar Loan having an Interest Period longer than three months,
on the date which occurs every three months after the initial date of such Interest Period, and in any case on the Maturity Date.
Interest on a Base Rate Loan shall be payable in arrears on the last day of each calendar quarter and on the Maturity Date. All
Default Interest shall be payable on demand.

 

(d)          The
Administrative Agent shall determine each interest rate applicable to a Term Loan hereunder and shall promptly notify the Borrower
and the Lenders of such rate in writing (or by telephone, promptly confirmed in writing). Any such determination shall be conclusive
and binding for all purposes, absent manifest error.

 

Section 2.7.          Fees.
The Borrower shall pay to the Administrative Agent, for the ratable benefit of each Lender, the upfront fee previously agreed
upon in writing by the Borrower and SunTrust Bank, which shall be due and payable on the Closing Date. The Borrower shall also
pay the Administrative Agent and SunTrust Robinson Humphrey, Inc., for their respective accounts, any other fees in the amounts
and at the times agreed upon in writing by the Borrower and each such Person.

 

    	- 21 -

    	 

    

 

Section 2.8.          Computation
of Interest and Fees. All computations of interest and fees hereunder
shall be made on the basis of a year of 360 days for the actual number of days (including the first day but excluding the
last day) occurring in the period for which such interest or fees are payable (to the extent computed on the basis of days elapsed).
Each determination by the Administrative Agent of an interest amount or fee hereunder shall be made in good faith and, except
for manifest error, shall be final, conclusive and binding for all purposes.

 

Section 2.9.          Inability
to Determine Interest Rates. If prior to the commencement of any
Interest Period for a Eurodollar Loan, the Administrative Agent shall have determined (which determination shall be conclusive
and binding upon the Borrower) that (a) by reason of circumstances affecting the relevant interbank market, adequate means
do not exist for ascertaining Adjusted LIBOR, or (b) the Administrative Agent shall have received notice from the Required
Lenders that Adjusted LIBOR does not adequately and fairly reflect the cost to such Lenders of making, funding or maintaining
its Eurodollar Loan, the Administrative Agent shall give written notice (or telephonic notice, promptly confirmed in writing)
to the Borrower and the Lenders as soon as practicable thereafter. Until the Administrative Agent notifies the Borrower and the
Lenders that the circumstances giving rise to such notice no longer exist, the Term Loans shall be deemed to be converted into
a Base Rate Loan as of such date and shall bear interest at the Base Rate plus
the Base Rate Margin.

 

Section 2.10.         Evidence
of Indebtedness. Each Lender shall maintain in accordance with its
usual practice appropriate records evidencing the Indebtedness of the Borrower to such Lender resulting from the Term Loans made
or held by such Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Lender
from time to time under this Agreement. The Administrative Agent shall maintain appropriate records in which shall be recorded
(i) the amount of the Term Loan held by each Lender and the Type thereof, (ii) the date of each continuation thereof
pursuant to Section 2.4, (iv) if applicable, the date of any required conversion of a Term Loan to a Base Rate
Loan, (v) the date and amount of any principal or interest due and payable or to become due and payable from the Borrower
to each Lender hereunder in respect of a Term Loan and (vi) both the date and amount of any sum received by the Administrative
Agent hereunder from the Borrower in respect of a Term Loan and each Lender’s Pro Rata Share thereof. The entries made in
such records shall be prima facie evidence (absent manifest error) of the existence and amounts of the obligations of the Borrower
therein recorded; provided, that the failure or delay of any Lender or the Administrative Agent in maintaining or making
entries into any such record or any error therein shall not in any manner affect the obligation of the Borrower to repay the Term
Loans (both principal and unpaid accrued interest) in accordance with the terms of this Agreement. On and after the Closing Date,
the Borrower will execute and deliver an Initial Term Note and/or a Delayed Draw Term Note to each Lender requesting such a Note.

 

Section 2.11.         Illegality.
If any Change in Law shall make it unlawful or impossible for any Lender to maintain or continue any Eurodollar Loan and such
Lender shall so notify the Administrative Agent, the Administrative Agent shall promptly give notice thereof to the Borrower and
the other Lenders, whereupon until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving
rise to such suspension no longer exist, the obligation of such Lender to continue the Term Loans as a Eurodollar Loan shall be
suspended. In the case of a Eurodollar Loan then outstanding, such Eurodollar Loan shall be converted to a Base Rate Loan either
(x) on the last day of the then current Interest Period applicable to such Eurodollar Loan if such Lender may lawfully continue
to maintain such Eurodollar Loan to such date or (y) immediately if such Lender shall determine that it may not lawfully
continue to maintain such Eurodollar Loan to such date.

 

    	- 22 -

    	 

    

 

Section 2.12.         Increased
Costs.

 

(a)          If
any Change in Law shall:

 

(i)
        impose, modify or deem applicable any reserve, special deposit or similar requirement that is not otherwise included in the
determination of Adjusted LIBOR hereunder against assets of, deposits with or for the account of, or credit extended by, any Lender
(except any such reserve requirement reflected in the calculation of Adjusted LIBOR); or 

 

(ii)         impose
on any Lender or the eurodollar interbank market any other condition affecting this Agreement or a Eurodollar Loan made or held
by such Lender;

 

and the result of the foregoing is to increase
the cost to such Lender of continuing or maintaining a Eurodollar Loan or to reduce the amount received or receivable by such Lender
hereunder (whether of principal, interest or any other amount), then the Borrower shall promptly pay, upon written notice from
and demand by such Lender to the Borrower (with a copy of such notice and demand to the Administrative Agent), to the Administrative
Agent for the account of such Lender, within five Business Days after the date of such notice and demand, additional amount or
amounts sufficient to compensate such Lender for such additional costs incurred or reduction suffered.

 

(b)          If
any Lender shall have determined that on or after the date of this Agreement (but subject to the proviso contained in the defined
term “Change in Law”) any Change in Law regarding capital or liquidity requirements has or would have the effect of
reducing the rate of return on such Lender’s capital (or on the capital of such Lender’s direct or indirect parent)
as a consequence of its obligations hereunder to a level below that which such Lender or such Lender’s direct or indirect
parent could have achieved but for such Change in Law (taking into consideration such Lender’s policies or the policies of
such Lender’s direct or indirect parent with respect to capital adequacy and liquidity) then, from time to time, within five
Business Days after receipt by the Borrower of written demand by such Lender (with a copy thereof to the Administrative Agent),
the Borrower shall pay to such Lender such additional amounts as will compensate such Lender or such Lender’s direct or indirect
parent for any such reduction suffered.

 

(c)          A
certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its direct or indirect parent,
as the case may be, specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower (with a copy to the
Administrative Agent) and shall be conclusive, absent manifest error. The Borrower shall pay any such Lender such amount or amounts
within 10 days after receipt thereof.

 

(d)          Failure
or delay on the part of a Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s
right to demand such compensation.

 

    	- 23 -

    	 

    

 

Section 2.13.         Funding
Indemnity. In the event of (a) the payment of any principal
of a Eurodollar Loan other than on the last day of the Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion (even though involuntary) of a Eurodollar Loan other than on the last day of the Interest Period
applicable thereto, or (c) the failure by the Borrower to prepay or continue a Eurodollar Loan on the date specified in any
applicable notice (regardless of whether such notice is withdrawn or revoked), then, in any such event, the Borrower shall compensate
each Lender, within five (5) Business Days after written demand from such Lender, for any actual loss, cost or expense incurred
by such Lender attributable to such event. Such loss, cost or expense shall be deemed to include an amount determined by such
Lender to be the excess, if any, of (A) the amount of interest that would have accrued on the principal amount of such Eurodollar
Loan if such event had not occurred at Adjusted LIBOR applicable to such Eurodollar Loan for the period from the date of such
event to the last day of the then current Interest Period therefor (or in the case of a failure to continue for the period that
would have been the Interest Period for such Eurodollar Loan) over (B) the amount of interest that would accrue on the principal
amount of such Eurodollar Loan for the same period if Adjusted LIBOR were set on the date such Eurodollar Loan was prepaid or
the date on which the Borrower failed to continue such Eurodollar Loan. A certificate as to any additional amount payable under
this Section 2.13 submitted to the Borrower by any Lender (with a copy to the Administrative Agent) shall be conclusive,
absent manifest error.

 

Section 2.14.         Taxes.

 

(a)          Any
and all payments by or on account of any Obligation of the Borrower under this Agreement or any Note shall be made free and clear
of and without deduction for any Indemnified Taxes or Other Taxes; provided, that if the Borrower shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative
Agent or any Lender (as the case may be) shall receive an amount equal to the sum it would have received had no such deductions
been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to
the relevant Governmental Authority in accordance with applicable law.

 

(b)          In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

 

(c)          The
Borrower shall indemnify the Administrative Agent and each Lender, within ten (10) Business Days after written demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent or such Lender, as the case may be,
on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability, together
with reasonable evidence of such payment, as applicable, delivered to the Borrower by a Lender, or by the Administrative Agent
on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

    	- 24 -

    	 

    

 

(d)          As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative
Agent.

 

(e)          Any
Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the Code or any treaty to which the
United States is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable
law or reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate of
withholding. Without limiting the generality of the foregoing, each Foreign Lender agrees that it will deliver to the Administrative
Agent and the Borrower (or in the case of a Participant, to the Lender from which the related participation shall have been purchased),
as appropriate, two (2) duly completed copies of (i) Internal Revenue Service Form W-8 ECI, or any successor form thereto, certifying
that the payments received from the Borrower hereunder are effectively connected with such Foreign Lender’s conduct of a
trade or business in the United States; or (ii) Internal Revenue Service Form W-8 BEN, or any successor form thereto, certifying
that such Foreign Lender is entitled to benefits under an income tax treaty to which the United States is a party which reduces
or eliminates the rate of withholding tax on payments of interest; or (iii) Internal Revenue Service Form W-8 BEN, or any successor
form prescribed by the Internal Revenue Service, together with a certificate (A) establishing that the payments to the Foreign
Lender from the Borrower hereunder qualify as “portfolio interest” exempt from U.S. withholding tax under Code section
871(h) or 881(c), and (B) stating that (1) the Foreign Lender is not a bank for purposes of Code section 881(c)(3)(A), or
the obligation of the Borrower hereunder is not, with respect to such Foreign Lender, a loan agreement entered into in the ordinary
course of its trade or business, within the meaning of that section; (2) the Foreign Lender is not a 10% shareholder of the Borrower
within the meaning of Code section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign Lender is not a controlled foreign corporation
that is a related Person to the Borrower within the meaning of Code section 881(c)(3)(C); or (iv) such other Internal Revenue Service
forms as may be applicable to the Foreign Lender, including Forms W-8 IMY or W-8 EXP. Each such Foreign Lender shall deliver to
the Borrower and the Administrative Agent such forms on or before the date that it becomes a party to this Agreement (or in the
case of a Participant, on or before the date such Participant purchases the related participation). In addition, each such Foreign
Lender shall deliver such forms within ten (10) Business Days after the obsolescence or invalidity of any form previously delivered
by such Foreign Lender. Each such Foreign Lender shall promptly notify the Borrower and the Administrative Agent in writing at
any time that it determines that it is no longer in a position to provide any previously delivered certificate to the Borrower
(or any other form of certification adopted by the Internal Revenue Service for such purpose).

 

    	- 25 -

    	 

    

 

Section 2.15.         Payments
Generally; Pro Rata Treatment; Sharing of Set-offs. 

 

(a)          The
Borrower shall make each payment required to be made by it hereunder (whether of principal, interest or fees or of amounts payable
under Section 2.5, Section 2.6 or Section 2.7 or otherwise) prior to 12:00 noon, on the date
when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may,
in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes
of calculating interest thereon. All such payments shall be made to the Administrative Agent at the Payment Office, except that
payments pursuant to Section 2.12, Section 2.13 and Section 10.3 shall be made directly to
the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that
is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made
in Dollars.

 

(b)          If
at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal,
interest and fees then due hereunder, such funds shall be applied first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and second,
towards payment of principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal
then due to such parties.

 

(c)          If
any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of
or interest on the portion of a Term Loan held by such Lender that would result in such Lender receiving payment of a greater proportion
than its Pro Rata Share, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations
in such Term Loan of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders
ratably in accordance with the aggregate amount of principal of and accrued interest on their respective portions of the Term Loans;
provided, that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto
is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest,
and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to
and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment
of or sale of a participation in any of its Term Loan to any assignee or Participant, other than to the Borrower or any Subsidiary
or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees,
to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as
if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

    	- 26 -

    	 

    

 

(d)          The
Administrative Agent will promptly distribute amounts due hereunder to the Lenders from the Borrower only after such amounts have
been paid by the Borrower to, and receipt thereof has been confirmed by, the Administrative Agent.

 

(e)          If
any Lender shall fail to make any payment required to be made by it pursuant to Section 2.3, Section 2.15(c),
or Section 10.3(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof),
apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations under such Sections until all such unsatisfied obligations are fully paid.

 

Section 2.16.         Mitigation
of Obligations; Replacement of Lenders.

 

(a)          If
any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, then such Lender shall
use reasonable efforts to designate a different lending office for funding or booking its portion of the Term Loans hereunder or
to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the reasonable credit
judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable under Section 2.12
or Section 2.14, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all costs and expenses
incurred by any Lender in connection with such designation or assignment.

 

(b)          If
(1) any Lender requests compensation under Section 2.12, or (2) the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, or (3) any
Lender suspends its obligation to maintain Eurodollar Loans pursuant to Section 2.11 (provided, that this clause
(3) shall not apply if the Required Lenders have suspended their respective obligations to maintain a Eurodollar Loan pursuant
to Section 2.11), or (4) a Lender Insolvency Event has occurred and is continuing with respect to such Lender, or (5) any
Lender that is not the Administrative Agent does not consent to any amendment, waiver or consent to any Loan Document for which
the consent of the Required Lenders is obtained and that requires the consent of all Lenders, then the Borrower may, at its sole
cost and expense, upon notice to any such Lender and the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions set forth in Section 10.4(b)) all of its interests, rights
and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender other
than a Lender as to which a Lender Insolvency Event has occurred); provided, that (i) the Borrower shall have received the
prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld, (ii) such assigning Lender
shall have received payment of an amount equal to the outstanding principal amount of the Term Loan owed to it, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (in the case of such outstanding principal
and accrued interest) and from the Borrower (in the case of all other amounts) and (iii) in the case of a claim for compensation
under Section 2.12 or payments required to be made pursuant to Section 2.14, such assignment will result
in a reduction or elimination of such compensation or payments. A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of an irrevocable waiver by such Lender, the circumstances entitling the Borrower to
require such assignment and delegation ceases to apply.

 

    	- 27 -

    	 

    

 

Section 2.17.         Delayed
Draw Term Loan. 

 

Subject to the terms
and conditions set forth herein (including, without limitation, Section 2.2, Section 3.1 and Section 3.2),
SunTrust Bank agrees to make a single Delayed Draw Term Loan to the Borrower prior to the Delayed Draw Commitment Termination Date
in a principal amount not to exceed the Delayed Draw Commitment Amount. Any portion of the Delayed Draw Commitment not utilized
by the Borrower by the Delayed Draw Commitment Termination Date shall be terminated and cancelled on such date. Once repaid, the
Delayed Draw Term Loan may not be reborrowed.

 

Article III.  CONDITIONS
PRECEDENT TO EFFECTIVENESS AND BORROWING

 

Section 3.1.          Conditions
To Effectiveness and Borrowing. The obligation of the Lenders to
fund their respective portion of any Term Loan under this Agreement shall not become effective until the date on which each of
the following conditions is satisfied (or waived in accordance with Section 10.2).

 

(a)          The
Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Closing Date, including,
without limitation (i) reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements
of counsel to the Administrative Agent) required to be reimbursed or paid by the Borrower hereunder, under any other Loan Document
and (ii) all fees payable to the Lenders and the Administrative Agent in accordance with the fee letter between the Borrower
and SunTrust Bank;

 

(b)          The
Administrative Agent (or its counsel) shall have received the following, each in form and substance satisfactory to the Administrative
Agent:

 

(i)          a
counterpart of this Agreement signed by or on behalf of each party hereto;

 

(ii)         a
duly executed Initial Term Note payable to each Lender requesting an Initial Term Note;

 

(iii)        a
certificate of the Secretary or Assistant Secretary of the Borrower in the form of Exhibit 3.1(b)(iii), attaching and certifying
copies of its bylaws and of the resolutions of its board of directors, authorizing the execution, delivery and performance of the
Loan Documents and certifying the name, title and true signature of each officer of the Borrower executing the Loan Documents;

 

    	- 28 -

    	 

    

 

(iv)        (a)
certified copies of the certificate of incorporation of the Borrower, together with certificates of good standing or existence,
as may be available from the Secretary of State of the jurisdiction of incorporation of the Borrower and each other jurisdiction
where the Borrower is required to be qualified to do business as a foreign corporation, and (b) certificates of good standing or
existence with respect to each material Subsidiary of the Borrower (which shall include, in any event, each Financial Institution
Subsidiary), as may be available from the Secretary of State of the jurisdiction of incorporation of each such Subsidiary and each
other jurisdiction where such Subsidiary is required to be qualified to do business as a foreign corporation;

 

(v)         a
favorable written opinion of LeClairRyan PC, counsel to the Borrower, addressed to the Administrative Agent and each of the Lenders,
and covering such matters relating to the Borrower, the Loan Documents and the transactions contemplated therein as the Administrative
Agent or the Required Lenders shall reasonably request;

 

(vi)        a
certificate in the form of Exhibit 3.1(b)(vi), dated the Closing Date and signed by a Responsible Officer, certifying that (1)
no Default or Event of Default exists, (2) all representations and warranties of the Borrower set forth in the Loan Documents are
true and correct on and as of the Closing Date, (3) no regulatory enforcement action or memorandum of understanding is in
place against the Borrower or any Financial Institution Subsidiary, (4) the Borrower has Minimum Liquidity of at least $1,200,000
and (5) since December 31, 2013, there shall have been no change, event or other circumstance which has had or could reasonably
be expected to have a Material Adverse Effect;

 

(vii)       certified
copies of all consents, approvals, authorizations, registrations and filings and orders required to be made or obtained under any
applicable laws, or by any Contractual Obligation of the Borrower, in connection with the execution, delivery, performance, validity
and enforceability of the Loan Documents or any of the transactions contemplated hereby or thereby, and such consents, approvals,
authorizations, registrations, filings and orders shall be in full force and effect and all applicable waiting periods shall have
expired, and no investigation or inquiry by any Governmental Authority regarding the Term Loans or any transaction being financed
with the proceeds thereof shall be ongoing;

 

(viii)      copies
of the audited consolidated financial statements for Borrower and its Subsidiaries for the fiscal years ending December 31, 2013,
2012 and 2011;

 

(ix)         the
results of a recent UCC, tax, judgment and lien searches in respect of the Borrower, and such searches shall reveal no Liens of
record other than Liens expressly permitted pursuant to Section 7.2;

 

(x)          the
Administrative Agent shall have received a duly executed Notice of Borrowing in accordance with Section 2.2 hereof;

 

    	- 29 -

    	 

    

 

(xii)        the
Administrative Agent shall have received a duly completed and executed Compliance Certificate calculated as of December 31,
2013 (giving pro forma effect to the funding of, and the use of the proceeds of, the Initial Term Loan to be funded on the Closing
Date); and

 

(xiii)       such
other documents, agreements and instruments as the Administrative Agent on behalf of the Lenders may reasonably request.

 

(c)          (1) the
Borrower shall be “well capitalized”, as determined in accordance with any regulations established by any Governmental
Authority having regulatory authority over it and (2) each Financial Institution Subsidiary shall have been, or are shall
have been deemed to have been, notified by the appropriate Governmental Authority having regulatory authority over each of them
that each of them is “well capitalized”, as determined in accordance with any regulations established by such Governmental
Authority.

 

(d)          the
Administrative Agent shall have received such other documents, certificates, information or legal opinions as the Administrative
Agent or the Required Lenders may reasonably request, all in form and substance reasonably satisfactory to the Administrative Agent
or the Required Lenders.

 

Section 3.2.          Conditions
To Borrowing of Delayed Draw Term Loan. The obligation of SunTrust
Bank to fund the Delayed Draw Term Loan under this Agreement shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 10.2):

 

(a)          at
the time of and immediately after giving effect to such Borrowing no Default or Event of Default shall exist;

 

(b)          at
the time of and immediately after giving effect to such Borrowing, all representations and warranties of the Borrower set forth
in the Loan Documents shall be true and correct;

 

(c)          the
Borrower shall have delivered the required Notice of Borrowing;

 

(d)          the
Borrower shall have delivered a duly executed Delayed Draw Term Note payable to SunTrust Bank;

 

(e)          a
certificate in substantially the form of Exhibit 3.1(b)(vi), dated the Delayed Draw Funding Date and signed by a Responsible Officer,
certifying that (1) no Default or Event of Default exists, (2) all representations and warranties of the Borrower set forth in
the Loan Documents are true and correct on and as of the Delayed Draw Funding Date, (3) no regulatory enforcement action or
memorandum of understanding is in place against the Borrower or any Financial Institution Subsidiary, (4) the Borrower has
Minimum Liquidity of at least $1,200,000 and (5) since December 31, 2013, there shall have been no change, event or other circumstance
which has had or could reasonably be expected to have a Material Adverse Effect;

 

(f)          the
Administrative Agent shall have received a duly completed and executed Compliance Certificate calculated as of December 31,
2013 (giving pro forma effect to the funding of, and the use of the proceeds of, the Delayed Draw Term Loan to be funded on the
Delayed Draw Funding Date);

 

    	- 30 -

    	 

    

 

(g)          (1) the
Borrower shall be “well capitalized”, as determined in accordance with any regulations established by any Governmental
Authority having regulatory authority over it and (2) each Financial Institution Subsidiary shall have been, or are shall
have been deemed to have been, notified by the appropriate Governmental Authority having regulatory authority over each of them
that each of them is “well capitalized”, as determined in accordance with any regulations established by such Governmental
Authority; and

 

(h)          the
Administrative Agent shall have received such other documents, certificates, information or legal opinions as the Administrative
Agent or the Required Lenders may reasonably request, all in form and substance reasonably satisfactory to the Administrative Agent
or the Required Lenders.

 

Article IV.  
REPRESENTATIONS AND WARRANTIES

 

The Borrower represents
and warrants to Administrative Agent and the Lenders as follows:

 

Section 4.1.          Existence;
Power. Each of the Borrower and its Subsidiaries (i) is duly
organized and validly existing as a corporation, bank or other entity, as the case may be, under the laws of the jurisdiction
of its organization, (ii) has all requisite power and authority to carry on its business as now conducted, and (iii) is
duly qualified to do business, and is in good standing, in each jurisdiction where such qualification is required, except where
a failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect.

 

Section 4.2.          Organizational
Power; Authorization. The Borrowing, and the execution, delivery
and performance by the Borrower of each of the Loan Documents are within the Borrower’s corporate powers and have been duly
authorized by all necessary corporate, and if required, stockholder, action. This Agreement has been duly executed and delivered
by the Borrower and constitutes, and each other Loan Document when executed and delivered by the Borrower will constitute, valid
and binding obligations of the Borrower, enforceable against it in accordance with their respective terms, except as may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity.

 

Section 4.3.          Governmental
Approvals; No Conflicts. The execution, delivery and performance
by the Borrower of this Agreement and the other Loan Documents (a) do not require any consent or approval of, registration
or filing with, or any action by, any Governmental Authority, except those as have been obtained or made and are in full force
and effect, (b) will not violate any applicable law or regulation or the articles of incorporation or by-laws of the Borrower
or any order of any Governmental Authority binding upon Borrower, (c) will not violate or result in a default under any indenture,
material agreement or other material instrument binding on the Borrower or any of its Subsidiaries or any of their respective
assets or give rise to a right thereunder to require any payment to be made by the Borrower or any such Subsidiary and (d) will
not result in the creation or imposition of any Lien on any asset of the Borrower or any Subsidiary. All necessary regulatory
approvals have been obtained for the Borrower and its Subsidiaries to conduct their respective businesses.

 

    	- 31 -

    	 

    

 

Section 4.4.          Financial
Statements. The Borrower has furnished to the Administrative Agent
and the Lenders the audited consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2013 and
the related consolidated statements of income, shareholders’ equity and cash flows for the fiscal year then ended reported
on by Elliott Davis, LLC. Such financial statements fairly present, in all material respects, the consolidated financial position
of the Borrower and its Subsidiaries as of such date and the consolidated results of operations and cash flows for such period
in conformity with GAAP consistently applied. Since December 31, 2013, there have been no changes with respect to the Borrower
and its Subsidiaries which have had or could reasonably be expected to have, singly or in the aggregate, a Material Adverse Effect.
In addition, the Borrower has provided to the Lenders copies of the Call Reports filed by its Financial Institution Subsidiaries
for the period ended December 31, 2013, and copies of the FRY-9LP Report and the FRY-9C Report filed by the Borrower for
the period ended December 31, 2013. Each of such reports filed by the Borrower or the Financial Institution Subsidiaries
with any Governmental Authority is true and correct and is in accordance with the respective books of account and records of the
Borrower and the Financial Institution Subsidiaries, and has been prepared in accordance with applicable banking regulations,
rules and guidelines on a basis consistent with prior periods, and fairly and accurately presents, in all material respects, the
financial condition of the Borrower and the Financial Institution Subsidiaries and their respective assets and liabilities and
the results of their respective operations as of such date.

 

Section 4.5.        Litigation
Matters and Enforcement Actions. No litigation, investigation or
proceeding of or before any arbitrators or Governmental Authorities is pending against, or, to the knowledge of the Borrower,
threatened against or affecting the Borrower or any of its Subsidiaries (i) 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 or (ii) which in any manner draws into question the validity or enforceability of this Agreement or any other Loan
Document. None of the Borrower, or any of the Financial Institution Subsidiaries, or any of their respective officers or directors,
is now operating under any currently effective written restrictions agreed to by the Borrower or any of the Financial Institution
Subsidiaries, or agreements, memoranda, or written commitments by the Borrower or any of the Financial Institution Subsidiaries
(other than restrictions of general application) imposed or required by any Governmental Authority nor are any such restrictions
threatened or agreements, memoranda or commitments being sought by any Governmental Authority.

 

    	- 32 -

    	 

    

 

 

Section 4.6.          Compliance
with Laws and Agreements. The Borrower and each Subsidiary is in compliance with all applicable laws (including without
limitation all Environmental Laws and all federal and state banking statutes) and all rules, regulations (including without limitation
all applicable federal and state banking regulations) and orders of any Governmental Authority, except where failure to do so could
not reasonably be expected to result in a Material Adverse Effect. Neither the Borrower nor any of the Financial Institution Subsidiaries
is in material default in the performance, observance or fulfillment of any of the terms, obligations, covenants, conditions or
provisions contained in any indenture or other agreement creating, evidencing or securing indebtedness of any kind or pursuant
to which any such indebtedness is issued, or other agreement or instrument to which the Borrower or any Financial Institution Subsidiary
is a party or by which the Borrower or any such Financial Institution Subsidiary or any of their respective properties may be bound
or affected. Neither the Borrower nor any Financial Institution Subsidiary is, and after giving effect to the execution, delivery
and performance by the Borrower of the Loan Documents, neither the Borrower nor any Financial Institution will be, in default with
respect to any judgment, order, writ, injunction, decree, demand, rules or regulation of any court, arbitrator, grand jury or any
Governmental Authority or any contract, lease, agreement, instrument or commitment to which the Borrower or such Financial Institution
Subsidiary is a party or by which it or any of its property are bound.

 

Section 4.7.          Investment
Company Act. Neither the Borrower nor any of its Subsidiaries is an “investment company”, as defined in, or
subject to regulation under, the Investment Company Act of 1940, as amended.

 

Section 4.8.          Taxes.
The Borrower and its Subsidiaries have timely filed or caused to be filed all Federal income tax returns and all other material
tax returns that are required to be filed by them, and have paid all taxes shown to be due and payable on such returns or on any
assessments made against them or their property and all other taxes, fees or other charges imposed on them or any of their property
by any Governmental Authority, except (i) to the extent the failure to do so would not have a Material Adverse Effect or (ii) where
the same are currently being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary,
as the case may be, has set aside on its books adequate reserves.

 

Section 4.9.          Margin
Regulations. None of the proceeds of any Term Loan will be used for “purchasing” or “carrying”
any “margin stock” with the respective meanings of each of such terms under Regulation U as now and from time to time
hereafter in effect or for any purpose that violates the provisions of Regulation U.

 

Section 4.10.         ERISA.
(a)   No ERISA Event has occurred or is reasonably expected to occur that,
when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected
to result in a Material Adverse Effect. The “benefit obligations” of all Plans did not, as of December 31, 2013, exceed
the “fair market value of the assets” of such Plans by more than $250,000. No event has occurred since December 31,
2013 that would cause the “benefit obligations” of all Plans to exceed the “fair market value of the assets”
of such Plans by the dollar amount specified in the previous sentence. The terms “benefit obligations” and “fair
market value of assets” shall be determined by and with such terms defined in accordance with Statement of Financial Accounting
Standards No. 158.

 

    	- 33 -

    	 

    

 

(b)          Each
Employee Benefit Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other applicable
law. Except with respect to Multiemployer Plans, each Qualified Plan (I) has received a favorable determination from the IRS applicable
to the Qualified Plan’s current remedial amendment cycle (as described in Revenue Procedure 2007-44 or “2007-44”
for short), (II) has timely filed for a favorable determination letter from the IRS during its staggered remedial amendment cycle
(as defined in 2007-44) and such application is currently being processed by the IRS, (III) has filed for a determination letter
prior to its “GUST remedial amendment period” (as defined in 2007-44) and received such determination letter and the
staggered remedial amendment cycle first following the GUST remedial amendment period for such Qualified Plan has not yet expired
or (IV) is maintained under a prototype or volume submitter plan and may rely upon a favorable opinion or letter issued by the
IRS with respect to such prototype or volume submitter plan. No event has occurred which would cause the loss of the Borrower’s
or any ERISA Affiliate’s reliance on the Qualified Plan’s favorable determination letter or opinion or advisory letter.

 

(c)          With
respect to any Employee Benefit Plan that is a retiree welfare benefit arrangement, all amounts have been accrued on the Borrower’s
financial statements in accordance with Statement of Financial Accounting Standards No. 106.

 

(d)          Except
as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect: (i) there are no pending
or to the best of the Borrower’s knowledge, threatened claims, actions or lawsuits or action by any Governmental Authority,
participant or beneficiary with respect to an Employee Benefit Plan; (ii) there are no violations of the fiduciary responsibility
rules with respect to any Employee Benefit Plan; and (iii) neither the Borrower nor ERISA Affiliate has engaged in a non-exempt
“prohibited transaction,” as defined in Section 406 of ERISA and Section 4975 of the Code, in connection with any Employee
Benefit Plan, that would subject the Borrower to a tax on prohibited transactions imposed by Section 502(i) of ERISA or Section
4975 of the Code.

 

Section 4.11.         Disclosure.
The Borrower has disclosed to the Administrative Agent and the Lenders all agreements, instruments, and corporate or other restrictions
to which the Borrower or any of its Subsidiaries is subject, 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 reports (including without limitation
all reports that the Borrower is required to file with the Securities and Exchange Commission), financial statements, certificates
or other information furnished by or on behalf of the Borrower to the Administrative Agent and the Lenders in connection with this
Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or supplemented by any other information
so furnished) 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 4.12.         Subsidiaries.
Schedule 4.12 sets forth the name of, the ownership interest of the Borrower in, and the jurisdiction of incorporation of
Financial Institution Subsidiary and each other Subsidiary, in each case as of the Closing Date. All of the capital stock of each
of the Borrower’s Subsidiaries has been duly authorized and validly issued, and is fully paid and non-assessable. Except
as set forth on Schedule 4.12, the Borrower owns all of the issued and outstanding capital stock of each of its Subsidiaries
free and clear of any Lien.

 

    	- 34 -

    	 

    

 

Section 4.13.         Dividend
Restrictions; Other Restrictions. 

 

(a)          No
Financial Institution Subsidiary has violated any applicable regulatory restrictions on dividends, and no Governmental Authority
has taken any action to restrict the payment of dividends by any Financial Institution Subsidiary.

 

(b)          Neither
the Borrower nor any Subsidiary is under investigation by, or is operating under any restrictions (excluding any restrictions on
the payment of dividends referenced in subsection (a) above) imposed by or agreed to with, any Governmental Authority, other
than routine examinations by such Governmental Authorities.

 

(c)          Except
as set forth as an exhibit to the Borrower’s Form 10-K for its fiscal year ended December 31, 2013, or described therein,
neither the Borrower nor any of the Financial Institution Subsidiaries is a party, nor is bound by, any material contract or agreement
or instrument, or subject to any charter or other corporate restriction, that is of a type that the Borrower is required to file
as an exhibit to its Form 10-K annual reports or otherwise describe therein.

 

Section 4.14.         Capital
Measures. (a) The Borrower is “well capitalized”, as determined in accordance with any regulations established
by any Governmental Authority having regulatory authority over it and (b) each Financial Institution Subsidiary has been,
or are deemed to have been, notified by the appropriate Governmental Authority having regulatory authority over each of them that
each of them is “well capitalized”, as determined in accordance with any regulations established by such Governmental
Authority.

 

Section 4.15.         FDIC
Insurance. The deposits of each Financial Institution Subsidiary that is an “insured depository institution”
(within the meaning of § 12 U. S. C. 1831(c)) are insured by the FDIC and no act has occurred that would adversely affect
the status of such Financial Institution Subsidiary as an FDIC insured bank.

 

Section 4.16.         Ownership
of Property. 

 

(a)          Each
of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all of its real and personal property
material to the operation of its business, including all such properties reflected in the most recent audited consolidated balance
sheet of the Borrower referred to in Section 4.4 or purported to have been acquired by the Borrower or any Subsidiary
after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens
other than those Liens permitted by Section 7.2. All leases that individually or in the aggregate are material to the
business or operations of the Borrower and its Subsidiaries are valid and subsisting and are in full force.

 

    	- 35 -

    	 

    

 

(b)          Each
of the Borrower and its Subsidiaries owns, or is licensed, or otherwise has the right, to use, all patents, trademarks, service
marks, trade names, copyrights and other intellectual property material to its business, and the use thereof by the Borrower and
its Subsidiaries does not infringe in any material respect on the rights of any other Person.

 

(c)          The
properties of the Borrower and its Subsidiaries are insured with financially sound and reputable insurance companies which are
not Affiliates of the Borrower, in such amounts with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where the Borrower or any applicable Subsidiary operates.

 

Section 4.17.         OFAC.
Neither the Borrower nor any of its Subsidiaries or Affiliates (i) is a Sanctioned Person, (ii) has any of its assets
in Sanctioned Countries, or (iii) derives any of its operating income from investments in, or transactions with, Sanctioned
Persons or Sanctioned Countries. No part of the proceeds of any Term Loan will be used directly or indirectly to fund any operations
in, finance any investments or activities in or make any payments to a Sanctioned Person or a Sanctioned Country or 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 and in effect from time to time.

 

Section 4.18.         Patriot
Act. Each of the Borrower and its 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 Uniting
And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001).
No part of the proceeds of the Obligations 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 4.19.         Solvency.
After giving effect to the execution and delivery of the Loan Documents and the making of the Initial Term Loan and the Delayed
Draw Term Loan under this Agreement, neither the Borrower nor its Subsidiaries will be “insolvent,” within the meaning
of such term as defined in § 101(32) of Title 11 of the United States Code, as amended from time to time, or be unable to
pay its debts generally as such debts become due, or have an unreasonably small capital to engage in any business or transaction,
whether current or contemplated.

 

Article V.  AFFIRMATIVE
COVENANTS

 

The Borrower covenants
and agrees that so long as any principal of and interest on any Term Loan or any fee or other obligation owing hereunder remains
unpaid:

 

    	- 36 -

    	 

    

 

Section 5.1.          Financial
Statements and Other Information. The Borrower will deliver to the Administrative Agent and each Lender:

 

(a)          as
soon as available and in any event within 90 days after the end of each fiscal year of Borrower, a copy of the annual audited report
for such fiscal year for the Borrower and its Subsidiaries, containing a consolidated and consolidating balance sheet and the related
consolidated and consolidating statements of income, of changes in shareholders’ equity 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 Elliott Davis, LLC or other independent public accountants of nationally recognized standing (without
a “going concern” or like qualification, exception or 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 and consolidating basis of the Borrower 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 Administrative Agent and the Lenders the report of the Borrower to the SEC 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, an unaudited balance sheet of the Borrower 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 and its Subsidiaries on a consolidated
basis, each 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’s previous fiscal year, all certified
by the chief financial officer or treasurer of the Borrower as presenting fairly in all material respects the financial
condition and results of operations of the Borrower 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) with respect to the financial information of the Borrower and its Subsidiaries on a consolidated and consolidating basis
may be fulfilled by providing to the Administrative Agent and the Lenders the report of the Borrower to the SEC on Form 10-Q for
the applicable fiscal quarter;

 

(c)          concurrently
with the delivery of the financial statements referred to in clauses (a) and (b) above, a Compliance Certificate, (i) certifying
as to whether there exists a Default or Event of Default on the date of such certificate, and if a Default or an Event of Default
then exists, specifying the details thereof and the action which the Borrower has taken or proposes to take with respect thereto,
and (ii) setting forth in reasonable detail calculations demonstrating compliance with Article VI;

 

(d)          concurrently
with the delivery of the financial statements referred to in clauses (a) and (b) above, duly executed copies of the Borrower’s
then-current FR Y-9C Report and FR Y-9LP Report and a duly executed copy of the then-current Call Report for each Financial Institution
Subsidiary;

 

    	- 37 -

    	 

    

 

(e)          as
soon as available and in any event within 60 days after the first day of each fiscal year of the Borrower, a budget prepared on
a consolidated and quarterly basis in reasonable detail (including budgeted income statements, statements of cash flow and balance
sheets and the principal assumptions upon which such budgets are based) prepared by the Borrower for such fiscal year in form and
content reasonably acceptable to the Administrative Agent;

 

(f)          promptly
after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed
with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all functions of said Commission,
or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be (to
the extent not otherwise required to be delivered to the Administrative Agent or the Lenders hereunder);

 

(g)          promptly
after receiving knowledge thereof, written notice of all material charges, material assessments, actions, suits and proceedings
(as well as notice of the outcome of any such charges, assessments, orders, actions, suits and proceedings) that are proposed or
initiated by, or brought before, any court or Governmental Authority, in connection with the Borrower or any of the Financial Institution
Subsidiaries, other than ordinary course of business litigation or proceedings which, if adversely decided, could not reasonably
be expected to have a Material Adverse Effect; and

 

(h)          promptly
following any request therefor, such other information regarding the results of operations, business affairs and financial condition
of the Borrower or any Subsidiary, as the Administrative Agent or any Lender may reasonably request.

 

Documents required to be delivered pursuant
to Section 5.1(a) or (b) or Section 5.1(f) (to the extent any such documents are included in materials
otherwise filed with the Securities and Exchange Commission) may be delivered electronically and if so delivered, shall be deemed
to have been delivered on the date (i) on which the Borrower posts such documents or provides a link thereto on the Borrower’s
website on the internet at the website address set forth in Section 10.1 or (ii) on which such documents are posted
on the Borrower’s behalf on an internet or intranet website, if any, to which the Administrative Agent and each Lender have
access; provided, that (A) the Borrower shall deliver paper copies of such documents to the Administrative Agent or
any Lender if so requested until a written notice is received by the Borrower from the Administrative Agent or such Lender to cease
delivering paper copies and (B) the Borrower shall notify (which may be by facsimile or electronic mail) the Administrative
Agent and each Lender of the posting of any such documents and provide to the Administrative Agent and each Lender by electronic
mail electronic versions (i.e. soft copies) of such documents. Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of all Compliance Certificates.

 

    	- 38 -

    	 

    

 

Section 5.2.          Notices
of Material Events. The Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the
following:

 

(a)          the
occurrence of any Default or Event of Default;

 

(b)          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 Borrower, affecting the Borrower or any Subsidiary which, if adversely determined, could reasonably be expected
to result in a Material Adverse Effect;

 

(c)          the
occurrence of any ERISA Event that alone, or together with any other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrower or its Subsidiaries in an aggregate amount exceeding $150,000;

 

(d)          any
material investigation of the Borrower or any Subsidiary by any Governmental Authority having regulatory authority over the Borrower
or any such Subsidiary (other than routine examinations of the Borrower and/or any such Subsidiary) to the extent that such Governmental
Authority has consented to the giving of such notice (if the consent of such Governmental Authority is required for the Borrower
to give such notice);

 

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

 

(f)          the
issuance of any material informal enforcement action, including, without limitation, a memorandum of understanding or proposed
disciplinary action by or from any Governmental Authority having regulatory authority over the Borrower or any Subsidiary, to the
extent that the Borrower 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); and

 

(g)          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.

 

    	- 39 -

    	 

    

 

Section 5.3.          Existence;
Conduct of Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all things necessary
to preserve, renew and maintain in full force and effect its legal existence and its respective rights, licenses, permits, privileges,
franchises, patents, copyrights, trademarks and trade names material to the conduct of its business and will continue to engage
in the same business as presently conducted or such other businesses that are reasonably related thereto; provided, that
nothing in this Section shall prohibit any merger, consolidation, liquidation or dissolution permitted under Section 7.3.

 

Section 5.4.          Compliance
with Laws, Etc. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations
and requirements of any Governmental Authority (including without limitation all federal and state banking statutes and regulations)
applicable to its assets, except where the failure to do so, either individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect.

 

Section 5.5.          Payment
of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay and discharge at or before maturity,
all of its obligations and liabilities (including without limitation all tax liabilities and all claims that could result in a
statutory Lien) before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being
contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves
with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected
to result in a Material Adverse Effect.

 

Section 5.6.          Books
and Records. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of records and accounts
in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities
to the extent necessary to prepare the consolidated and consolidating financial statements of the Borrower in conformity with GAAP.

 

Section 5.7.          Visitation,
Inspection, Etc. 

The Borrower will,
and will cause each of its Subsidiaries to, permit any representative of the Administrative Agent and of each Lender to, subject
to Section 10.11, visit and inspect its properties, to examine its books and records and to make copies and take extracts
therefrom, and to discuss its affairs, finances and accounts with any of its officers and with its independent certified public
accountants, all at such reasonable times and as often as the Administrative Agent or such Lender may reasonably request after
reasonable prior notice to the Borrower and at the Borrower’s expense.

 

Section 5.8.          Maintenance
of Properties; Insurance. 

 

(a)          The
Borrower will, and will cause each of its Subsidiaries to, (i) keep and maintain all property material to the conduct of its
business in good working order and condition, except for ordinary wear and tear and except where the failure to do so, either individually
or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect and (ii) maintain, with financially
sound and reputable insurance companies, insurance with respect to its properties and business, and the properties and business
of its Subsidiaries, against loss or damage of the kinds customarily insured against by companies in the same or similar businesses
operating in the same or similar locations.

 

    	- 40 -

    	 

    

 

(b)          The
deposits of each Financial Institution Subsidiary will at all times be insured by the FDIC.

 

Section 5.9.          Use
of Proceeds. The Borrower will use the proceeds (i) of the Initial Term Loan to repurchase 10,680,000 shares of its
Fixed Rate Cumulative Perpetual Preferred Stock, Series A from the United States Department of Treasury and (ii) of the Delayed
Draw Term Loan to repurchase a related common stock warrant from the United States Department of the Treasury). No part of the
proceeds of the Term Loans will be used, whether directly or indirectly, for any purpose that would violate any rule or regulation
of the FRB, including Regulation T, U or X.

 

Section 5.10.         Further
Assurances. The Borrower agrees, upon request of the Administrative Agent, to execute and deliver or cause to be executed
and delivered such further instruments, documents and certificates, and to do and cause to be done such further acts that may be
reasonably necessary or advisable in the reasonable opinion of the Administrative Agent to carry out more effectively the provisions
and purposes of this Agreement and the other Loan Documents.

 

Article VI.  
FINANCIAL COVENANTS

 

The Borrower covenants
and agrees that so long as any principal of and interest on any Term Loan or any fee or other obligation owing hereunder remains
unpaid:

 

Section 6.1.          Regulatory
Capital. 

 

(a)          The
Borrower will be “well-capitalized” for all applicable state and federal regulatory purposes at all times, and the
Borrower (i) will have a Total Risk-based Capital Ratio of 12.00% or greater, a Tier 1 Risk-based Capital Ratio of 10.00%
or greater, and a Tier 1 Leverage Ratio of 8.00% or greater (each as defined by applicable federal and state regulations or
orders), and will not be subject to any written agreement, order, capital directive or prompt corrective action directive by any
Governmental Authority having regulatory authority over the Borrower or (ii) if required by any Governmental Authority having
regulatory authority over the Borrower in order to remain “well-capitalized” and in compliance with all applicable
regulatory requirements, will have such higher amounts of Total Risk-based Capital and Tier 1 Risk-based Capital and/or such greater
Tier 1 Leverage Ratio as specified by such Governmental Authority.

 

(b)          Each
Financial Institution Subsidiary of the Borrower will be “well-capitalized” for all applicable state and federal regulatory
purposes at all times, and such Financial Institution Subsidiary (i) will have a Total Risk-based Capital Ratio of 12.00%
or greater, a Tier 1 Risk-based Capital Ratio of 10.00% or greater, and a Tier 1 Leverage Ratio of 8.00% or greater (each
as defined by applicable federal and state regulations or orders) and not be subject to any written agreement, order, capital directive
or prompt corrective action directive by any Governmental Authority having regulatory authority over such Financial Institution
Subsidiary or (ii) if required by any Governmental Authority having regulatory authority over such Financial Institution Subsidiary
in order to remain “well-capitalized” and in compliance with all applicable regulatory requirements, will have such
higher amounts of Total Risk-based Capital and Tier 1 Risk-based Capital and/or such greater Tier 1 Leverage Ratio as specified
by such Governmental Authority.

 

    	- 41 -

    	 

    

 

(c)          Notwithstanding
the foregoing, if at any time any such Governmental Authority changes the definition of “well-capitalized” either
by amending such ratios or otherwise, such amended definition, and any such amended or new ratios, shall automatically, and in
lieu of the existing definitions and ratios set forth in this Section, be incorporated by reference into this Agreement as the
minimum standard for the Borrower or any Financial Institution Subsidiary, as the case may be, on and as of the date that any such
amendment becomes effective by applicable statute, regulation, order or otherwise.

 

Section 6.2.          Return
on Average Assets. The Borrower will have, as of the end of each Fiscal Quarter, a Return on Average Assets for such Fiscal
Quarter of not less than 0.30%.

 

Section 6.3.          Minimum
Cash at Borrower. The Borrower shall at all times maintain adequate unrestricted cash or cash equivalents on hand directly
at the Borrower in accordance with the requirements of the FRB; provided, that at no time shall the Borrower hold an amount
less than $1,200,000.

 

Section 6.4.          Dividend
Capacity.  The Borrower will maintain a Dividend Capacity during the periods and in the corresponding amounts indicated
in the grid immediately below:

 

	Period	 	Amount	 
	Closing Date – March 30, 2015	 	$	1,250,000	 
	March 31, 2015 – September  29, 2015	 	$	750,000	 
	September 30, 2015 – Maturity Date	 	$	2,000,000	 

 

Section 6.5.          Classified
Asset Ratio.  The Borrower will maintain, as of the end of each Fiscal Quarter, a Classified Asset Ratio (determined
as of the end of each such Fiscal Quarter) of no more than .50 to 1.00.

 

Article VII.  
NEGATIVE COVENANTS

 

The Borrower covenants
and agrees that so long as any principal of and interest on any Term Loan or any fee or other obligation owing hereunder remains
unpaid:

 

    	- 42 -

    	 

    

 

Section 7.1.          Indebtedness.
The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness,
except:

 

(a)          Indebtedness
of the Borrower created pursuant to the Loan Documents;

 

(b)          Indebtedness
existing on the date hereof and set forth on Schedule 7.1 and extensions, renewals and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof (immediately prior to giving effect to such extension, renewal or
replacement) or shorten the maturity or the weighted average life thereof;

 

(c)          Permitted
Financial Institution Subsidiary Indebtedness;

 

(d)          Indebtedness
constituting obligations of the Borrower and any Financial Institution Subsidiary under debentures, indentures, trust agreements
and guarantees in connection with the issuance by such Persons of trust preferred securities and other types of hybrid securities
(but only to the extent that the Governmental Authority having regulatory authority over the Borrower permits the inclusion of
such securities in the calculation of its Total Risk-based Capital Ratio or its Tier I Risk-based Capital Ratio under Section 6.1);
provided, that aggregate amount outstanding at any time under this clause (d) shall not to exceed $2,000,000;

 

(e)          
(i) Indebtedness owed by the Borrower or any “affiliate” of the Borrower (as defined in Regulation W of the FRB
and sections 23A and 23B of the Federal Reserve Act) to any Financial Institution Subsidiary not in violation of Regulation W of
the FRB (as amended, supplemented or otherwise modified), or (ii) Indebtedness owed by any Subsidiary to the Borrower or (iii) Indebtedness
owed by the Borrower or any Subsidiary to a Subsidiary other than a Financial Institution Subsidiary;

 

(f)          Indebtedness
constituting capital leases of any real property and improvements thereon that are owned by the Borrower or any Subsidiary and
that have been sold by the Borrower or such Subsidiary to a third person and have been leased back from such Person;

 

(g)          Any
other Indebtedness that is subordinated to the Indebtedness under this Agreement on the following terms: (i) no part of the
principal of such Indebtedness is stated to be payable or is required to be paid (whether by way of mandatory sinking fund, mandatory
redemption, mandatory prepayment or otherwise) prior to the date that is 6 months following the Maturity Date and the payment of
principal of which and any other obligations of the Borrower with respect thereof (other than interest subject to clause (g)(ii)
below) are subordinated to the prior payment in full of principal and interest (including post-petition interest) and all
other obligations and amounts of the Borrower to the Lenders hereunder on terms and conditions first approved in writing by the
Required Lenders, (ii) no part of the interest accruing on such Indebtedness is payable, without the prior written consent
of the Required Lenders, after a Default or Event of Default has occurred and is continuing, and (iii) such Indebtedness otherwise
contains terms, covenants and conditions in form and substance reasonably satisfactory to the Required Lenders as evidenced by
its prior written approval thereof;

 

    	- 43 -

    	 

    

 

(h)          other
unsecured Indebtedness of the Borrower and its Subsidiaries in an aggregate amount outstanding at any time not to exceed $2,000,000;
and

 

(i)          Purchase
money indebtedness and capitalized lease obligations secured by Liens permitted under this Agreement in an aggregate amount outstanding
at any time not to exceed $2,000,000.

 

Section 7.2.          Negative
Pledge. The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist
any Lien on any of its assets or property now owned or hereafter acquired (including without limitation in the case of the Borrower,
the capital stock of any Financial Institution Subsidiary), except:

 

(a)          Liens
(if any) created in favor of the Administrative Agent for the benefit of the Lenders;

 

(b)          Permitted
Encumbrances;

 

(c)          Liens
granted to secure any Indebtedness expressly permitted pursuant to Section 7.1(f) (as long as such Lien shall extend
only to the real property and improvements subject to such capital leases);

 

(d)          Liens
on property of the Borrower or any of its Subsidiaries created solely for the purpose of securing Indebtedness expressly permitted
by Section 7.1(i), representing or incurred to finance, refinance or refund the purchase price of property, provided
that no such Lien shall extend to or encumber other property of the Borrower or such Subsidiary other than the respective property
so acquired, and the principal amount of Indebtedness secured thereby shall at no time exceed the original purchase price of such
property; and

 

(e)          extensions,
renewals, or replacements of any Lien referred to in paragraphs (a), (b), (c) and (d) of this Section; provided, that the
principal amount of the Indebtedness secured thereby is not increased in any manner that would exceed the amounts permitted in
Section 7.1 and that any such extension, renewal or replacement is limited to the assets originally encumbered thereby.

 

Notwithstanding anything herein or otherwise
to the contrary, the Borrower shall not grant any Lien, or otherwise permit any Lien to exist, on the capital stock of any Financial
Institution Subsidiary (other than Liens in favor of the Administrative Agent for the benefit of the Lenders).

 

    	- 44 -

    	 

    

 

Section 7.3.          Fundamental
Changes.

 

(a)          The
Borrower will not, and will not permit any Subsidiary to, (i) merge into or consolidate into any other Person, or permit any
other Person to merge into or consolidate with it, or (ii) without limiting Section 7.11, sell, lease, transfer or otherwise
dispose of (in a single transaction or a series of transactions) all or a material portion of its assets (other than in the ordinary
course of business) or all or substantially all of the stock of any of its Subsidiaries or (iii) liquidate or dissolve;
provided, that if at the time thereof and immediately after giving effect thereto on a pro forma basis, no Default
or Event of Default shall have occurred, (A) the Borrower or any Subsidiary may merge with a Person, provided that (1) if
the Borrower is a party to such merger, the Borrower shall be the surviving Person, (2) if a Subsidiary is a party to such merger,
such Subsidiary shall be the surviving Person (if two Subsidiaries are party to such merger, one of those Subsidiaries shall be
the surviving Person) and (3) such merger shall not constitute a Change in Control of the Borrower, (B) any Subsidiary
may sell, lease, transfer or dispose of its assets to the Borrower or another Subsidiary, (C) any Financial Institution Subsidiary
may sell loans, investments, or other similar assets in the ordinary course of its business, provided, that such sale or
series of sales do not constitute a sale of all or substantially all of such Financial Institution Subsidiary’s assets and
(D) the Borrower and any Subsidiary may sell any (i) real property and improvements thereon that are owned (in whole
or in part) by the Borrower or such Subsidiary and that are subsequently leased back by the Borrower or such Subsidiary and (ii) Other
Real Estate Owned.

 

(b)          The
Borrower will not dispose of any stock or other equity interest in any of its Financial Institution Subsidiaries, whether by sale,
assignment, lease or otherwise, without the prior written consent of Required Lenders; provided, however, that, if
at the time thereof and immediately after giving effect thereto, on a pro forma basis, no Default or Event of Default shall exist
or shall have occurred, the Borrower shall be permitted to allow Financial Institution Subsidiaries to be merged into or consolidated
with any other Financial Institution Subsidiary.

 

(c)          The
Borrower will not, and will not permit any of its Subsidiaries to, engage to any material extent in any business other than businesses
of the type conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related thereto and any
types of businesses that are expressly permitted by any Governmental Authority having jurisdiction over the Borrower and/or any
Financial Institutions Subsidiary.

 

Section 7.4.          Restricted
Payments. The Borrower will not, and will not permit its Subsidiaries to, declare or make, or agree to pay or make,
directly or indirectly, any dividend on any class of its stock, or make any payment on account of, or set apart assets for a sinking
or other analogous fund for, the purchase, redemption, retirement, defeasance, prepayment or other acquisition of, any shares of
capital stock or Indebtedness subordinated to the Obligations of the Borrower or any options, warrants, or other rights to purchase
such capital stock or such Indebtedness, whether now or hereafter outstanding (each a “Restricted Payment”);
provided, however, that the Borrower and its Subsidiaries may make and agree to make Restricted Payments so long
as no Default or Event of Default then exists or would result (on a pro forma basis) from the making of such Restricted Payment;
provided, further, however, that any Subsidiary may make Restricted Payments to the Borrower at any time.

 

    	- 45 -

    	 

    

 

Section 7.5.          Restrictive
Agreements. The Borrower will not, and will not permit any Subsidiary to, directly or indirectly, enter into, incur or
permit to exist any agreement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any
Subsidiary to create, incur or permit any Lien upon any of its assets or properties, whether now owned or hereafter acquired, or
(b) the ability of any Subsidiary to pay dividends or other distributions with respect to its common stock, to make or
repay loans or advances to the Borrower or any other Subsidiary, to guarantee Indebtedness of the Borrower or any other Subsidiary
or to transfer any of its property or assets to the Borrower or any Subsidiary of the Borrower; provided, that (i) the
foregoing shall not apply to restrictions or conditions imposed by law or by this Agreement or any other Loan Document, (ii) the
foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary
pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is sold and such sale is permitted
hereunder, and (iii) clause (a) shall not apply to customary provisions in leases restricting the assignment thereof.

 

Section 7.6.          Investments,
Etc. The Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant
to any merger with any Person that was not a wholly-owned Subsidiary prior to such merger), any capital stock, Indebtedness or
other securities (including any option, warrant, or other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other
Person, or purchase or otherwise acquire (in one transaction or a series of transactions) all or substantially all of the assets
of a Person, or of any business or division of any Person (all of the foregoing being collectively called “Investments”),
except:

 

(a)          Investments
existing on the date hereof (including Investments in Subsidiaries) that have been disclosed to the Lenders and/or that are set
forth on the most current financial statements that have been delivered to the Lenders;

 

(b)          Investments
purchased in the ordinary course of business by any Financial Institution Subsidiary;

 

(c)          Investments
made by the Borrower in or to any Subsidiary and by any Subsidiary in or to the Borrower or in or to another Subsidiary;

 

(d)          Investments
made for the purpose of making or consummating an Acquisition; provided, that (i)  no Default or Event of Default shall
have occurred or would result (on a pro forma basis) from the making or consummation of such Acquisition, (ii) such Acquisitions
are undertaken in accordance with all applicable laws, and (iii) the prior written consent or approval of such Acquisition
of the board of directors or equivalent governing body of the Person being acquired has been obtained; provided, further,
that in the case of any Investment by the Borrower or any Subsidiary in which the Borrower or such Subsidiary acquires, directly
or indirectly, fifty percent (50%) or more of the voting stock any Person that is a regulated financial institution, such acquired
Person shall become a Financial Institution Subsidiary for purposes of this Agreement;

 

(e)          Guarantees
of the Borrower of any Indebtedness expressly permitted under Section 7.1(d); and

 

(f)    
      Other Investments made in the ordinary course of business and in accordance with
applicable laws and regulations and safe and sound business practices.

 

    	- 46 -

    	 

    

 

Section 7.7.          Transactions
with Affiliates. The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not
less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties,
(b) transactions between or among the Borrower and any Subsidiary not involving any other Affiliates and (c) any Restricted Payment
expressly permitted by Section 7.4.

 

Section 7.8.          Hedging
Transactions. The Borrower will not, and will not permit any of the Subsidiaries to, enter into any Hedging Transaction,
other than Hedging Transactions entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower
or any Subsidiary is exposed in the conduct of its business or the management of its liabilities. Solely for the avoidance of doubt,
the Borrower acknowledges that a Hedging Transaction entered into for speculative purposes or of a speculative nature (which shall
be deemed to include any Hedging Transaction under which the Borrower or any of the Subsidiaries is or may become obliged to make
any payment (i) in connection with the purchase by any third party of any Capital Stock or any Indebtedness or (ii) as a result
of changes in the market value of any Capital Stock or any Indebtedness) is not a Hedging Transaction entered into in the ordinary
course of business to hedge or mitigate risks.

 

Section 7.9.          Unsafe
and Unsound Practices. The Borrower will not, and will not permit any of its Subsidiaries to, engage in any unsafe or unsound
business practice that could reasonably be expected to have a Material Adverse Effect.

 

Section 7.10.         Most
Favored Lender Status. The Borrower will not, and will not permit any of its Subsidiaries to, enter into, amend or modify
documents evidencing or governing Indebtedness to which the Borrower or its Subsidiaries are bound, that contain, or are amended
and modified to contain, one or more Additional Covenants or Additional Defaults, unless in each case the Borrower or such Subsidiary
contemporaneously executes an amendment to this Agreement, in form and substance reasonably satisfactory to the Administrative
Agent and the Required Lenders, to include such Additional Covenants or Additional Defaults herein; provided, that to the
extent that the Borrower or any Subsidiary shall enter into, assume or otherwise become bound by or obligated under such amendment
or agreement containing one or more Additional Covenants or Additional Defaults without amending this Agreement to include such
Additional Covenants or Additional Defaults, the terms of this Agreement shall nonetheless, without any further action on the part
of the Borrower or any Subsidiary, be deemed or amended automatically to include each Additional Covenant and each Additional Default
contained in such amendment or agreement.

 

    	- 47 -

    	 

    

 

Section 7.11.         Sale
of Assets. The Borrower will not, and will not permit any of its Subsidiaries to, convey, sell, lease, assign, transfer
or otherwise dispose of any of its assets, business or property, whether now owned or hereafter acquired, or, in the case of any
Subsidiary, any shares of such Subsidiary’s capital stock, in each case whether now owned or hereafter acquired, to any Person
other than the Borrower (or to qualify directors if required by applicable law), except:

 

(i)          the
sale or other disposition for fair market value of obsolete or worn out personal property or other personal property not necessary
for operations disposed of in the ordinary course of business;

 

(ii)         the
sale or other disposition of assets in the ordinary course of business and consistent with past practices; and

 

(iii)        the
sale or other disposition of up to 20% of the total number of Branches in any fiscal year of the Borrower (in each case, based
on the number of Branches that are in existence as of the beginning of any such fiscal year);

 

Section 7.12.         Government
Regulations. The Borrower will not, and will not permit any of its Subsidiaries to, (a) be or become subject at any time
to any law, regulation or list of any Governmental Authority of the United States (including, without limitation, the OFAC list)
that prohibits or limits the Lenders or the Administrative Agent from making any advance or extension of credit to the Borrower
or from otherwise conducting business with the Loan Parties, or (b) fail to provide documentary and other evidence of the identity
of the Loan Parties as may be requested by the Lenders or the Administrative Agent at any time to enable the Lenders or the Administrative
Agent to verify the identity of the Loan Parties or to comply with any applicable law or regulation, including, without limitation,
Section 326 of the Patriot Act at 31 U.S.C. Section 5318.

 

Article VIII.  
EVENTS OF DEFAULT

 

Section 8.1.          Events
of Default. If any of the following events (each an “Event of Default”) shall occur:

 

(a)          the
Borrower shall fail to pay any principal of any Term Loan when and as the same shall become due and payable, whether at the due
date thereof or otherwise; or

 

(b)          the
Borrower shall fail to pay any interest on any Term Loan or any fee or any other Obligation (other than an amount payable under
clause (a) of this Article), when and as the same shall become due and payable and such failure shall continue unremedied for a
period of three (3) days; or

 

(c)          any
representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or in connection with this
Agreement or any other Loan Document (including the Schedules attached thereto) and any amendments or modifications hereof or waivers
hereunder, or in any certificate, report, financial statement or other document submitted to the Administrative Agent or the Lenders
by the Borrower or any representative of the Borrower pursuant to or in connection with this Agreement or any other Loan Document
shall prove to be incorrect in any material respect when made or deemed made or submitted; or

 

    	- 48 -

    	 

    

 

(d)          the
Borrower shall fail to observe or perform any covenant or agreement contained in Section 5.1, Section 5.2,
Section 5.3 (with respect to the Borrower’s existence), Section 5.7, Section 5.9 or Article VI
or Article VII; or

 

(e)          the
Borrower shall fail to observe or perform any covenant or agreement contained (i) in this Agreement (other than those referred
to in clauses (a), (b) and (d) above), and such failure shall remain unremedied for 30 days after the earlier of (x) any
officer of the Borrower becomes aware of such failure, or (y) notice thereof shall have been given to the Borrower by the
Administrative Agent or the Required Lenders or (ii) in any other Loan Document (after taking into consideration any applicable
grace periods); or

 

(f)          the
Borrower or any Subsidiary (whether as primary obligor or as guarantor or other surety) shall fail to pay any Indebtedness (other
than under this Agreement or any Note) owed to any Lender or to any other Person (and, only in the case of Indebtedness owed to
any Person other than a Lender, where such Indebtedness is in an amount greater than $250,000 that is outstanding), when and as
the same shall become due and payable (whether at scheduled maturity, required prepayment, acceleration, demand or otherwise),
and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument evidencing
such Indebtedness; or any other event shall occur or condition shall exist under any agreement or instrument relating to such Indebtedness
and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such
event or condition is to accelerate, or permit the acceleration of, the maturity of such Indebtedness (without regard to whether
such holders or other Person shall have exercised or waived their right to do so); or any such Indebtedness shall be declared to
be due and payable or required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption),
purchased or defeased, or any offer to prepay, redeem, purchase or defease such Indebtedness shall be required to be made, in each
case prior to the stated maturity thereof (and for purposes of determining the amount of attributed Indebtedness under this clause
(f) from Hedging Obligations, the “principal amount” of any Hedging Obligations at any time shall be the Net Mark-to-Market
Exposure of such Hedging Obligations); or

 

(g)          the
Borrower or any Subsidiary shall (i) commence a voluntary case or other proceeding or file any petition seeking liquidation,
reorganization or other relief under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter
in effect or seeking the appointment of a custodian, trustee, receiver, liquidator or other similar official of it or any substantial
part of its property, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding
or petition described in clause (i) of this Section, (iii) apply for or consent to the appointment of a custodian, trustee,
receiver, liquidator or other similar official for the Borrower or any such Subsidiary or for a substantial part of its assets,
(iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make
a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;
or

 

    	- 49 -

    	 

    

 

(h)          an
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization
or other relief in respect of the Borrower or any Subsidiary or its debts, or any substantial part of its assets, under any federal,
state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or (ii) the appointment of a custodian,
trustee, receiver, liquidator or other similar official for the Borrower or any Subsidiary or for a substantial part of its assets,
and in any such case, such proceeding or petition shall remain undismissed for a period of 60 days or an order or decree approving
or ordering any of the foregoing shall be entered; or

 

(i)          without
duplication of clause (f) of this Section 8.1, the Borrower or any Subsidiary shall become unable to pay, shall admit
in writing its inability to pay, or shall fail to pay, its debts as they become due; or

 

(j)          an
ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with other ERISA Events that
have occurred, could reasonably be expected to result in liability to the Borrower and the Subsidiaries in an aggregate amount
exceeding $250,000; or

 

(k)          any
judgment or order for the payment of money in excess of $250,000 in the aggregate shall be rendered against the Borrower or
any Subsidiary, and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order
or (ii) there shall be a period of 30 consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; provided, however, that it shall not be an Event
of Default under this clause (k) if such judgment or order is covered by insurance for which the applicable insurer has acknowledged
in writing that any claim or payment arising from such judgment or order is so covered; or

 

(l)          any
non-monetary judgment or order shall be rendered against the Borrower or any Subsidiary that could reasonably be expected
to have a Material Adverse Effect, and there shall be a period of 30 consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

 

(m)         a
Change in Control shall occur; or

 

(n)          any
Governmental Authority having regulatory authority over the Borrower or any Subsidiary shall take any action that restricts, or
has the practical effect of restricting, the payment of dividends from any such Subsidiary to the Borrower or the payment of any
debt owing by a Subsidiary to the Borrower; or

 

(o)          any
Financial Institution Subsidiary shall cease for any reason (other than as a result of being merged into another Financial Institution
Subsidiary) to be an insured bank under the Federal Deposit Insurance Act, as amended; or

 

    	- 50 -

    	 

    

 

(p)          the
FRB, the FDIC or any other Governmental Authority charged with the regulation of bank holding companies or depository institutions:
(i) issues (whether orally or in writing) to the Borrower or any Financial Institution Subsidiary, or initiates through formal
proceedings any action, suit or proceeding to obtain against, impose on or require from the Borrower or any Financial Institution
Subsidiary, a cease and desist order or similar regulatory order, the assessment of civil monetary penalties, articles of agreement,
a memorandum of understanding, a capital directive, a capital restoration plan, restrictions that prevent or as a practical matter
impair the payment of dividends by any Financial Institution Subsidiary or the payments of any debt by the Borrower, restrictions
that make the payment of the dividends by any Financial Institution Subsidiary or the payment of debt by the Borrower subject to
prior regulatory approval, a notice or finding under subsection 8(a) of the Federal Deposit Insurance Act, as amended, or any similar
enforcement action, measure or proceeding; or (ii) proposes or issues (whether orally or in writing) to any executive officer or
director of the Borrower or any Financial Institution Subsidiary, or initiates any action, suit or proceeding to obtain against,
impose on or require from any such officer or director, a cease and desist order or similar regulatory order, a removal order or
suspension order, or the assessment of civil monetary penalties, unless, in the case of either clause (i) or (ii) immediately above,
any such orders or penalties would not reasonably be expected to have a Material Adverse Effect; or

 

(q)          there
shall occur with respect to any Financial Institution Subsidiary any event that is grounds for the required submission of a capital
restoration plan under 12 U. S. C. §1831o (e)(2) and the regulations thereunder, or a conservator or receiver is appointed
for any Financial Institution Subsidiary; or

 

(r)          any
order or decree is entered by any court of competent jurisdiction directly or indirectly enjoining or prohibiting the Borrower
from performing any of its obligations under this Agreement or under any of the other Loan Documents and such order or decree is
not vacated, and the proceedings out of which such order or decree arose are not dismissed, within 60 days after the granting of
such decree or order; or

 

(s)          the
Borrower or any Financial Institution Subsidiary shall enter into a written agreement with any Governmental Authority having regulatory
authority over such Person for any reason which could reasonably be expected to have a Material Adverse Effect; or

 

(t)          the
filing of formal charges by any Governmental Authority or quasi-governmental entity, including, without limitation, the issuance
of an indictment under a RICO Related Law against Borrower or any Subsidiary of Borrower;

 

then, and in every such event (other than
an event with respect to the Borrower or any Subsidiary described in clause (g) or (h) of this Section) and at any time thereafter
during the continuance of such event, the Administrative Agent may, and upon the written request of the Required Lenders shall,
by notice to the Borrower, take any or all of the following actions, at the same or different times: (i) declare the principal
of and any accrued interest on the Term Loans, and all other Obligations owing hereunder, to be, whereupon the same shall become
due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower and (ii) exercise all remedies contained in any other Loan Document; and that, if an Event of Default specified
in either clause (g) or (h) shall occur, the principal of the Term Loans then outstanding, together with accrued interest
thereon, and all fees, and all other Obligations shall automatically become due and payable, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower.

 

    	- 51 -

    	 

    

 

Article IX.  
THE ADMINISTRATIVE AGENT

 

Section 9.1.          Appointment
of Administrative Agent. Each Lender irrevocably appoints SunTrust Bank as the Administrative Agent and authorizes it to
take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent under this Agreement and
the other Loan Documents, together with all such actions and powers that are reasonably incidental thereto. The Administrative
Agent may perform any of its duties hereunder by or through any one or more sub-agents appointed by the Administrative Agent. The
Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers through any
Affiliate. The exculpatory provisions set forth in this Article shall apply to any such sub-agent and any Affiliate of the Administrative
Agent and any such sub-agent and shall apply to their respective activities in connection with the syndication of the credit facilities
provided for herein as well as activities as Administrative Agent.

 

Section 9.2.          Nature
of Duties of Administrative Agent. The Administrative Agent shall not have any duties or obligations except those expressly
set forth in this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative
Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise
any discretionary powers, except those discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative
Agent is required to exercise in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 10.2), and (c) except as expressly set forth in the Loan
Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the Administrative Agent
or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 10.2) or in the absence of its own gross negligence or willful misconduct
as determined by a final, non-appealable judgment by a court of competent jurisdiction. The Administrative Agent shall not be responsible
for the negligence or misconduct of any sub-agents selected by it with reasonable care. The Administrative Agent shall not be deemed
to have knowledge of any Default or Event of Default unless and until written notice thereof (which notice shall include an express
reference to such event being a “Default” or “Event of Default” hereunder) is given to the Administrative
Agent by the Borrower or any Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith,
(iii) the performance or observance of any of the covenants, agreements, or other terms and conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument
or document, or (v) the satisfaction of any condition set forth in Article III or elsewhere in any Loan Document,
other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. The Administrative Agent
may consult with legal counsel (including counsel for the Borrower) concerning all matters pertaining to such duties.

 

    	- 52 -

    	 

    

 

Section 9.3.          Lack
of Reliance on the Administrative Agent. Each of the Lenders acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement. Each of the Lenders also acknowledges that it will, independently
and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed
appropriate, continue to make its own decisions in taking or not taking of any action under or based on this Agreement, any related
agreement or any document furnished hereunder or thereunder. Each of the Lenders acknowledges and agrees that outside legal counsel
to the Administrative Agent in connection with the preparation, negotiation, execution, delivery and administration (including
any amendments, waivers and consents) of this Agreement and the other Loan Documents is acting solely as counsel to the Administrative
Agent and is not acting as counsel to any Lender (other than the Administrative Agent and its Affiliates) in connection with this
Agreement, the other Loan Documents or any of the transactions contemplated hereby or thereby.

 

Section 9.4.          Certain
Rights of the Administrative Agent. If the Administrative Agent shall request instructions from the Required Lenders with
respect to any action or actions (including the failure to act) in connection with this Agreement, the Administrative Agent shall
be entitled to refrain from such act or taking such act, unless and until it shall have received instructions from such Lenders;
and the Administrative Agent shall not incur liability to any Person by reason of so refraining. Without limiting the foregoing,
no Lender shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting
or refraining from acting hereunder in accordance with the instructions of the Required Lenders where required by the terms of
this Agreement.

 

Section 9.5.          Reliance
by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic
message, posting or other distribution) believed by it to be genuine and to have been signed, sent or made by the proper Person.
The Administrative Agent may also rely upon any statement made to it orally or by telephone and believed by it to be made by the
proper Person and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (including
counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action
taken or not taken by it in accordance with the advice of such counsel, accountants or experts.

 

Section 9.6.          The
Administrative Agent in its Individual Capacity. The bank serving as the Administrative Agent shall have the same rights
and powers under this Agreement and any other Loan Document in its capacity as a Lender as any other Lender and may exercise or
refrain from exercising the same as though it were not the Administrative Agent; and the terms “Lenders”, “Required
Lenders”, “holders of Notes”, or any similar terms shall, unless the context clearly otherwise indicates, include
the Administrative Agent in its individual capacity. The bank acting as the Administrative Agent and its Affiliates may accept
deposits from, lend money to, and generally engage in any kind of business with the Borrower or any Subsidiary or Affiliate of
the Borrower as if it were not the Administrative Agent hereunder.

 

    	- 53 -

    	 

    

 

Section 9.7.          Successor
Administrative Agent.

 

(a)          The
Administrative Agent may resign at any time by giving 30 days prior written notice thereof to the Lenders and the Borrower. Upon
any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent, subject to the approval
by the Borrower provided that no Default or Event of Default shall exist at such time. If no successor Administrative Agent shall
have been so appointed, and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives
notice of resignation, then the retiring Administrative Agent may (in consultation with the Borrower), on behalf of the Lenders,
appoint a successor Administrative Agent, which shall be a commercial bank organized under the laws of the United States of America
or any state thereof or a bank which maintains an office in the United States.

 

(b)          Upon
the acceptance of its appointment as the Administrative Agent hereunder by a successor, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent,
and the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan
Documents. If within 30 days after written notice is given of the retiring Administrative Agent’s resignation under this
Section 9.7 no successor Administrative Agent shall have been appointed and shall have accepted such appointment, then
on such 30th day (i) the retiring Administrative Agent’s resignation shall become effective, (ii) the
retiring Administrative Agent shall thereupon be discharged from its duties and obligations under the Loan Documents and (iii) the
Required Lenders shall thereafter perform all duties of the retiring Administrative Agent under the Loan Documents until such time
as the Required Lenders appoint a successor Administrative Agent as provided above. After any retiring Administrative Agent’s
resignation hereunder, the provisions of this Article IX shall continue in effect for the benefit of such retiring
Administrative Agent and its representatives and agents in respect of any actions taken or not taken by any of them while it was
serving as the Administrative Agent.

 

Article X.  
MISCELLANEOUS

 

Section 10.1.          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 overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

 

    	- 54 -

    	 

    

 

	To the Borrower:	Community Bankers Trust Corporation
	 	9964 Mayland Drive
	 	Suite 2100
	 	Richmond, Virginia 23233
	 	Attention:  John M. Oakey, III
	 	Telephone Number:	(804) 417-7373
	 	Fax Number:	(804) 934-9299
	 	 	 
	To the Administrative Agent:	SunTrust Bank
	 	Agency Services
	 	303 Peachtree Street, 25th Floor
	 	Atlanta, Georgia 30308
	 	Attn:  Doug Weltz
	 	Telephone Number:	(404) 813-5156
	 	Fax Number:	(404) 221-2001
	 	 	 
	 	with a copy to	 
	 	 	 
	 	SunTrust Bank
	 	3333 Peachtree Road NE
	 	7th Floor
	 	Atlanta, Georgia 30326
	 	Attn:  Doug Kennedy
	 	Telephone Number:	(404) 439-7391
	 	Fax Number:	(404) 739-7390

 

	To a Lender:	To such Lender’s address or telecopy number, as applicable, as set forth on such Lender’s signature page hereto

 

			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 mail or if delivered, upon delivery;
provided, that notices delivered to the Administrative Agent shall not be effective until actually received by the Administrative
Agent at its address specified in this Section 10.1.

 

(b)          Any
agreement of the Administrative Agent and the Lenders herein to receive certain notices by telephone or facsimile is solely for
the convenience and at the request of the Borrower. The Administrative Agent and the Lenders 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 Administrative Agent shall not
have any liability to the Borrower or other Person on account of any action taken or not taken by the Administrative Agent or the
Lenders in reliance upon such telephonic or facsimile notice. The obligation of the Borrower to repay the Term Loans and all other
Obligations hereunder shall not be affected in any way or to any extent by any failure of the Administrative Agent or the Lenders
to receive written confirmation of any telephonic or facsimile notice or the receipt by the Administrative Agent or the Lenders
of a confirmation which is at variance with the terms understood by the Administrative Agent or the Lenders to be contained in
any such telephonic or facsimile notice.

 

    	- 55 -

    	 

    

 

Section 10.2.          Waiver;
Amendments.

 

(a)          No
failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder or any other Loan Document,
and no course of dealing between the Borrower and the Administrative Agent or any 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 Administrative Agent and the Lenders hereunder and under the other Loan Documents are cumulative
and are not exclusive of any rights or remedies provided by law. No waiver of any provision of this Agreement or any other Loan
Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted
by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for
the purpose for which given. Without limiting the generality of the foregoing, the making of any Term Loan shall not be construed
as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent or any Lender may have had notice
or knowledge of such Default or Event of Default at the time.

 

(b)          No
amendment or waiver of any provision of this Agreement or the other Loan 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 Borrower and the Required Lenders,
or the Borrower and the Administrative Agent with the consent of the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given; provided, that no amendment or waiver
shall: (i) increase the Term Loan Commitment of any Lender without the written consent of such Lender, (ii) reduce the
principal amount of either the Initial Term Loan or the Delayed Draw Term Loan or reduce the rate of interest thereon, or reduce
any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) extend the Maturity Date or
otherwise postpone the date fixed for any scheduled payment of any principal of, or interest on, the Initial Term Loan or the Delayed
Draw Term Loan or interest thereon or any fees hereunder or reduce the amount of, waive, forgive or excuse any such payment, without
the written consent of each Lender affected thereby, (iv) change Section 2.15(b) or Section 2.15(c)
in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change
any of the provisions of this Section 10.2 or the definition of “Required Lenders” or any other provision
hereof specifying the number or percentage of Lenders which are required to waive, amend or modify any rights hereunder or make
any determination or grant any consent hereunder, without the consent of each Lender; or (vi) release any guarantor, if any,
or limit the liability of any such guarantor under any guaranty agreement; provided further, that no such agreement shall
amend, modify or otherwise affect the rights, duties or obligations of the Administrative Agent without the prior written consent
of such Person. Notwithstanding anything herein or otherwise to the contrary, any Event of Default occurring hereunder shall continue
to exist (and shall be deemed to be continuing) until such time as such Event of Default is waived in writing in accordance with
the terms of this Section notwithstanding (i) any attempted cure or other action taken by the Borrower or any other Person subsequent
to the occurrence of such Event of Default or (ii) any action taken or omitted to be taken by the Administrative Agent or any Lender
prior to or subsequent to the occurrence of such Event of Default (other than the granting of a waiver in writing in accordance
with the terms of this Section).

 

    	- 56 -

    	 

    

 

Section 10.3.          Expenses;
Indemnification.

 

(a)          The
Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the Administrative Agent and its Affiliates (including,
without limitation, the reasonable fees, charges and disbursements of outside counsel and the allocated cost of inside counsel
for the Administrative Agent and its Affiliates) in connection with the syndication of the Term Loans provided for herein, the
preparation and administration of the Loan Documents and any amendments, modifications or waivers thereof (whether or not the transactions
contemplated in this Agreement or any other Loan 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 Administrative Agent or any 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 Term Loans made hereunder, including all
such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Term Loans.

 

(b)          The
Borrower shall indemnify the Administrative Agent and each Lender and each officer, director, employee, agents, advisors and Affiliates
of the Administrative Agent and each Lender (each, an “Indemnitee”) against, and hold each of them harmless
from, any and all costs, losses, liabilities, claims, damages and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, which may be incurred by any Indemnitee, or asserted against any Indemnitee by the Borrower
or any third Person, arising out of, in connection with or as a result of (i) the execution or delivery of this Agreement
or any other Loan Document, the performance by the parties hereto of their respective obligations hereunder or the consummation
of any of the transactions contemplated hereby, (ii) the Term Loans or any actual or proposed use of the proceeds therefrom,
(iii) the use by any Person of any information or materials obtained by or through SyndTrakTM
or other internet web sites, (iv) any actual or alleged presence or release of Hazardous Materials on or from any property owned
by the Borrower or any Subsidiary or any Environmental Liability related in any way to the Borrower or any Subsidiary or
(v) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether brought
by the Borrower 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.

 

    	- 57 -

    	 

    

 

(c)          The
Borrower shall pay, and hold the Administrative Agent and each of the Lenders harmless from and against, any and all present and
future stamp, documentary, and other similar taxes with respect to this Agreement and any other Loan Documents, or any payments
due thereunder, and save the Administrative Agent and each of the Lenders harmless from and against any and all liabilities with
respect to or resulting from any delay or omission by the Borrower to pay such taxes.

 

(d)          To
the extent that the Borrower fails to pay any amount required to be paid to the Administrative Agent under clauses (a), (b) or
(c) hereof, each Lender severally agrees to pay to the Administrative Agent such Lender’s Pro Rata Share (determined as of
the time that the unreimbursed expense or indemnity payment is sought) such unpaid amount; provided, that the unreimbursed
expense or indemnified payment, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against
the Administrative Agent in its capacity as such.

 

(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 or any agreement or instrument contemplated hereby, the transactions
contemplated therein, the Term Loans or the use of proceeds thereof.

 

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

 

Section 10.4.          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 permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any
of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this
Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of paragraph (g) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed
to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, each of the Administrative
Agent and the Lenders and their affiliates) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)          Any
Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Term Loan Commitment and any Term Loan at the time owing to it); provided that any such assignment
shall be subject to the following conditions:

 

    	- 58 -

    	 

    

 

(i)      
    Minimum Amounts.

 

(A)         in
the case of an assignment of the entire remaining amount of the assigning Lender’s Term Loan Commitment and the assigning
Lender’s applicable Term Loan at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender
or an Approved Fund, no minimum amount need be assigned; and

 

(B)         in
any case not described in Section 10.4(b)(i)(A), the aggregate amount of the Term Loan Commitment (which for this purpose
includes the applicable Term Loan outstanding thereunder) or, if the applicable Term Loan Commitment is not then in effect, the
principal outstanding balance of the applicable Term Loan of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent or, if “Trade
Date” is specified in the Assignment and Acceptance, as of the Trade Date) shall not be less than $1,000,000, unless each
of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed); provided that the Borrower shall be deemed to have
consented to any such lower amount unless it shall object thereto by written notice to the Administrative Agent within 5 Business
Days after having received notice thereof.

 

(ii)         Proportionate
Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement with respect to the applicable Term Loan or the related Term Loan Commitment assigned.

 

(iii)        Required
Consents. No consent shall be required for any assignment except to the extent required by Section 10.4(b)(i)(B) and,
in addition:

 

(A)         the
consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default
has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender
or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall
object thereto by written notice to the Administrative Agent within 5 Business Days after having received notice thereof; and

 

(B)         the
consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments
to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

 

    	- 59 -

    	 

    

 

(iv)        Assignment
and Acceptance. The parties to each assignment shall deliver to the Administrative Agent (A) a duly executed Assignment and
Acceptance, (B) a processing and recordation fee of $3,500, (C) an Administrative Questionnaire unless the assignee is already
a Lender and (D) the documents required under Section 2.14 if such assignee is a Foreign Lender.

 

(v)         No
Assignment to the Borrower. No such assignment shall be made to the Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 

(vi)        No
Assignment to Natural Persons. No such assignment shall be made to a natural person.

 

Subject to acceptance and recording thereof
by the Administrative Agent pursuant to paragraph (c) of this Section 10.4 from and after the effective date specified
in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits
of Section 2.12, Section 2.13, Section 2.14, and Section 10.3 with respect to facts and circumstances
occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender
of a participation in such rights and obligations in accordance with paragraph (d) of this Section 10.4. If the consent
of the Borrower to an assignment is required hereunder (including a consent to an assignment which does not meet the minimum assignment
thresholds specified above), the Borrower shall be deemed to have given its consent 5 Business Days after the date notice thereof
has actually been delivered by the assigning Lender (through the Administrative Agent) to the Borrower, unless such consent is
expressly refused by the Borrower prior to such 5th Business Day.

 

(c)          The
Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Atlanta,
Georgia a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Term Loan Commitments of, and principal amount of the applicable Term Loan owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). Information contained in the Register with respect to
any Lender shall be available for inspection by such Lender at any reasonable time and from time to time upon reasonable prior
notice; information contained in the Register shall also be available for inspection by the Borrower at any reasonable time and
from time to time upon reasonable prior notice. In establishing and maintaining the Register, the Administrative Agent shall serve
as the Borrower’s agent solely for tax purposes and solely with respect to the actions described in this Section, and the
Borrower hereby agrees that, to the extent SunTrust Bank serves in such capacity, SunTrust Bank and its officers, directors, employees,
agents, sub-agents and affiliates shall constitute an “Indemnitee” for purposes of Section 10.3.

 

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(d)          Any
Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent sell participations to any
Person (other than a natural person, the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Term
Loan Commitment and/or the applicable Term Loan owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.

 

(e)          Any
agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in Section 10.2 that directly affects such Participant and could not be effected by
a vote of the Required Lenders. Subject to paragraph (f) of this Section 10.4, the Borrower agrees that each Participant
shall be entitled to the benefits of Section 2.12, Section 2.13 and Section 2.14 to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section 10.4. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.7 as though it were a Lender,
provided such Participant agrees to be subject to Section 2.15 as though it were a Lender.

 

(f)          A
Participant shall not be entitled to receive any greater payment under Section 2.12 and Section 2.14 than the applicable
Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation
to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.14 unless the Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.14(e)
 as though it were a Lender.

 

(g)          Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute
any such pledgee or assignee for such Lender as a party hereto.

 

Section 10.5.          Governing
Law; Jurisdiction; Consent to Service of Process.

 

(a)          THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW (WITHOUT GIVING EFFECT
TO THE CONFLICT OF LAW PRINCIPLES THEREOF) OF THE STATE OF GEORGIA.

 

    	- 61 -

    	 

    

 

(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 Loan 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 such Georgia state court or, to the extent
permitted by applicable law, such Federal court. Each of the parties hereto agrees that a final 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 law. Nothing in this Agreement or any other Loan Document shall affect any right that the Lenders may otherwise have to bring
any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or its properties in the courts
that have jurisdiction over the Borrower.

 

(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 state or federal court located
in the State of Georgia and 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 10.1.
Nothing in this Agreement or in any other Loan Document will affect the right of any party hereto to serve process in any other
manner permitted by law.

 

Section 10.6.          WAIVER
OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

Section 10.7.          Right
of Setoff. In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any
such rights, each Lender shall have the right, at any time or from time to time upon the occurrence and during the continuance
of an Event of Default, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent
permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final)
of the Borrower at any time held or other obligations at any time owing by such Lender to or for the credit or the account of the
Borrower against any and all Obligations owed to such Lender under this Agreement, irrespective of whether such Lender shall have
made demand hereunder and although such Obligations may be unmatured. Each Lender agrees promptly to notify the Administrative
Agent and the Borrower after any such set-off and any application made by such Lender; provided, that the failure to give
such notice shall not affect the validity of such set-off and application.

 

    	- 62 -

    	 

    

 

Section 10.8.          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 or by email, in .pdf format), and all of said counterparts taken together shall be deemed to constitute
one and the same instrument. This Agreement, the other Loan Documents, and any separate letter agreement(s) relating to any fees
payable to the Administrative Agent 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.
Delivery of an executed counterpart of a signature page of this Agreement and any other Loan Document by telecopy or by email,
in pdf format, shall be effective as delivery of a manually executed counterpart of this Agreement or such other Loan Document.

 

Section 10.9.          Survival.
All covenants, agreements, representations and warranties made by the Borrower 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 making of the Initial Term Loan and the Delayed Draw Term
Loan, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative
Agent or any Lender may have had notice or knowledge of any Default or 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 Term
Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid. The provisions of Section 2.13
and Section 10.3 shall survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Term Loans 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 shall
survive the execution and delivery of this Agreement and the other Loan Documents, and the making of the Term Loans.

 

Section 10.10.         Severability.
Any provision of this Agreement or any other Loan 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.

 

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Section 10.11.         Confidentiality.
Each of the Administrative Agent and each Lender agrees to maintain the confidentiality of any and all non-public, confidential
or proprietary information, identified to the Administrative Agent and the Lenders as such, of or relating to the Borrower or any
Subsidiary and their respective businesses, operations, finances or strategies (“Confidential Information”).
For purposes of this Section, Confidential Information shall not include: (1) information that was already known to the recipient
without an obligation of confidentiality to the Borrower or any Subsidiary with respect to such information, (2) information that
was obtained from a third party who was not known to the Administrative Agent or such Lender to be under an obligation of confidentiality
to the Borrower or any Subsidiary with respect to such information, (3) information that is or becomes publicly available, other
than through a breach of this Section by the Administrative Agent or any Lender or any Participant or any of their respective representatives,
employees or agents. Notwithstanding the foregoing, Confidential Information may be disclosed (i) to any officer, director,
agent, affiliate or representative of the Administrative Agent or any such Lender, including without limitation accountants, legal
counsel and other advisors; provided, however, that such Person shall agree to be bound by the confidentiality provisions
set forth in this Section with respect to such information, (ii) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, (iii) to the extent requested by any regulatory agency or authority, (iv) to
the extent necessary in connection with the exercise of any remedy hereunder or any suit, action or proceeding relating to this
Agreement or the enforcement of rights hereunder, (v) subject to provisions substantially similar to this Section 10.11,
to any actual or prospective assignee or Participant, or (vi) with the prior written consent of the Borrower. Any Person required
to maintain the confidentiality of any information as provided for in this Section shall be considered to have complied with
its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such information
as such Person would accord its own confidential information, but in no event less than a reasonable degree of care.

 

Section 10.12.         Waiver
of Effect of Corporate Seal. The Borrower represents and warrants that it is not required to affix its corporate seal to
this Agreement or any other Loan Document pursuant to any requirement of law or regulation, agrees that this Agreement is delivered
by Borrower under seal and waives any shortening of the statute of limitations that may result from not affixing the corporate
seal to this Agreement or such other Loan Documents.

 

Section 10.13.         Patriot
Act. The Administrative Agent and each Lender hereby notifies the Borrower that pursuant to the requirements of the USA
PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (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 such Lender or the Administrative Agent, as applicable, 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 Administrative Agent or any Lender in order to
assist the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act.

 

    	- 64 -

    	 

    

 

Section 10.14.         Independence
of Covenants. All covenants hereunder shall be given independent effect so that if a particular action or condition is
not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the
limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or
condition exists.

 

Section 10.15.         No
Advisory or Fiduciary Relationship. In connection with all aspects of the transactions contemplated hereby (including in
connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and
agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement
provided by the Administrative Agent, the Lenders and SunTrust Robinson Humphrey, Inc., as Lead Arranger (the “Arranger”)
are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Administrative
Agent, the Lenders and the Arranger, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and
tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts,
the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Administrative
Agent, the Lenders and the Arranger is and has been acting solely as a principal and, except as expressly agreed in writing by
the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of
its Affiliates, or any other Person and (B) neither the Administrative Agent nor any Lender or the Arranger has any obligation
to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly
set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, each Lender and the Arranger and their respective
Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its
Affiliates, and neither the Administrative Agent nor any Lender or the Arranger has any obligation to disclose any of such interests
to the Borrower or any of its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims
that it may have against the Administrative Agent or any Lender or the Arranger with respect to any breach or alleged breach of
agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

[Remainder of page intentionally left
blank. Signatures appear on following pages]

 

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

 

	 	COMMUNITY BANKERS TRUST CORPORATION
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signatures Continue on the Next Page]

 

    	 

    	 

    

 

	 	SUNTRUST BANK
	 	as Administrative Agent and as a Lender
	 	 	 	 
	 	By	 	 
	 	 	Name:	Doug Kennedy 
	 	 	Title:	Vice President
	 	 	 	 
	 	Address for Notices (as Lender):
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

[Signature Page to Community Bankers Trust
Corporation Term Loan Agreement]ex10-1.htm

 

Exhibit 10.1

 

 

 

PURCHASE AND SALE AGREEMENT

 

 

 

BETWEEN:

 

 

 

LORNEX FINANCIAL LTD.

 

 

 

AND

 

 

 

FREEDOM PETROLEUM INC.

 

 

 

 

DATED AS OF THE 28TH APRIL 2014

 

 

 

  

  

  

 

THIS AGREEMENT is dated effective 28TH APRIL 2014

 

BETWEEN:

 

Lornex Financial Ltd., a company incorporated pursuant to the laws of Nevis.

 

(“Lornex”)

 

AND:

 

Freedom Petroleum Inc., a company incorporated pursuant to the laws of Nevada, U.S.A.

 

(“Freedom”)

 

Lornex and Freedom are hereinafter referred to collectively as the “Parties”, and each, individually, as a “Party”.

 

WHEREAS:

 

(A) Lornex is the owner of a one hundred percent (100%) undivided working interest and can deliver 90% Net Revenue Interest (NRI) in certain oil and gas interests (Crown Land) and properties arising from the oil and gas leases (the “Leases”) set out in Exhibit “A” attached hereto, which together comprise a parcel of 11,680 acres in Grimshaw area of Northern Alberta, Canada (the “Property”);

 

(B) Each Lease encompasses and represents Lornex’s right, title and interest in the portion of the Property subject to the Lease;

 

(C) The Parties have agreed that this Agreement will set out the general terms and conditions of a transaction (the “Transaction”) whereby Lornex would grant 100% right to purchase all of the right, title and interest of Lornex as described herein in 11,680 acres in the oil and gas leases listed on Exhibit “A”; and,

 

(D) The Parties have agreed that this Agreement shall supersede all previous agreements and understandings related to the Transaction with the terms, conditions and covenants set out herein.

 

NOW THEREFORE, in consideration of the mutual promises covenants contained herein, the parties hereby agree as follows:

 

  

1

  

 

PART 1

 

INTERPRETATIONS

 

Definitions

 

1.1 In this Agreement:

 

(a) “AFE” means authorization for expenditure for any drilling, rework or development activity in respect of a pre-existing Well or a new Well;

 

(b) “Affiliate” means any Person that controls, is controlled by, or is under common control with, a Party.  For the purposes of the preceding sentence only, “control” means the right to the exercise, directly or indirectly, of more than fifty percent (50%) of the voting rights attributable to the controlled Person;

 

(c) “Agreement” means this Agreement for Purchase and Sale and all of the Exhibits attached hereto, as the same may be amended from time to time in accordance with the terms hereof;

 

(d) “AMI” means Area of Mutual Interest wherein the Parties shall have exclusive right to operate to the mutual benefit each party during the term of the Agreement.

 

(e)  “Applicable Law” means in relation to any person, transaction or event, all laws, statutes, regulations, directives and decisions of any governmental body having jurisdiction over such person, transaction or event;

 

(f) “Business Day” means any day that is not a Saturday, Sunday or statutory holiday in Nevada, USA;

 

(g) “Development” means any development activity related to the exploitation of Petroleum Substances on the Property, from a Well, or pursuant to a Lease, including but not limited to drilling, exploration, rework or development of a Well;

 

(h) “Effective Date” means the date of execution of this Agreement and shall in no event be later than 28TH APRIL 2014;

 

(i) “Encumbrances” has the meaning ascribed thereto in §2.1;

 

(j) “Exchange” means the TSX Venture Exchange or other recognizable exchange in North America;

 

(k) “Governmental Authority” means any Canadian or United States federal, provincial, territorial, state, regional, municipal or local government or authority, quasi-governments’ authority, fiscal or judicial body, government or self-regulatory organization, commission, board, tribunal, organization, or any regulatory, administrative or other agency, or any political or other subdivision, department, or branch of any of the foregoing;

  

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(l) “Leases” has the meaning ascribed thereto in Recital (A) hereof;

 

(m) “Net Profits Interest” means the gross revenues realized from the sale of Petroleum Substances less all royalties owed in respect of the Property or government royalties on attributable gross revenues, less any and all applicable pipeline transportation costs, and all direct field operating costs excluding the general and administrative costs attributable to the Parties;

 

(n) “New Well” means a Well drilled upon the Property after the Effective Date;

 

(o) “Operator” means the Person responsible for supervising or managing all work performed with respect to a development on the Property, including but not limited to any activity related to drilling, exploration or development of a Well;

 

(p) “Person” means an individual, corporation, trust, partnership, limited liability company, contractual mining company, joint venture, unincorporated organization, firm, estate, Governmental Authority or any agency or political subdivision thereof, or other entity;

 

(q) “Petroleum Substances” means petroleum, natural gas and every other mineral or substance or, any of them, in which an interest in or the right to explore for is granted or acquired under the Leases;

 

(r) “Pre-Existing Well” means a Well existing on the Property as of the date of this Agreement;

 

(s) “Press release” has the meaning ascribed thereto in §6.3 hereof;

 

(t) “Property” has the meaning ascribed thereto in Recital A hereof;

 

(u) “Regulations” means all statutes, laws, rules, orders and regulations in effect from time to time and made by governments or governmental boards or agencies having jurisdiction over the Property, and over the operations to be conducted thereon;

 

(v) “Third Party” means a person, partnership, joint venture, corporation or other form of enterprise that is not a Party to this Agreement or an Affiliate of any such entity, and does not include a Governmental Authority;

 

(w) “Transaction” means the transaction to be carried out by the Parties in accordance with the terms of this Agreement and each other agreement, document or instrument executed in connection herewith, whereby Lornex will grant 100% legal title in consideration of the terms, conditions, representations and warranties, and mutual covenants contained herein;

 

(x) “Transfer” means to transfer, sell, convey, assign, mortgage, pledge, create a security interest in or grant an option in respect of a right to purchase or in any other manner transfer, alienate or dispose of or otherwise dispose of;

  

3

  

 

(y) “Well” means a Pre-existing Well and a New Well on the Property;

 

(z) “Wholly Owned Affiliate” means an Affiliate of a Party that is wholly-owned by such Party or such Party’s parent company or companies;

 

Interpretation

 

1.2 For the purposes of this Agreement, except as otherwise expressly provided herein:

 

(a) The words “herein”, “hereof”, and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Part, clause, subclause or other subdivision or Exhibit;

 

(b) A reference to a Part means a Part of this Agreement and the symbol § followed by a number or some combination of numbers and letters refers to the section, paragraph or subparagraph of this Agreement so designated;

 

(c) The headings are for convenience only, do not form a part of this Agreement and are not intended to interpret, define or limit the scope, extent or intent of this Agreement or any of its provisions;

 

(d) The word “including”, when following a general statement, term or matter, is not to be construed as limiting such general statement, term or matter to the specific items or matters set forth or to similar items or matters (whether or not qualified by non-limiting language such as “without limitation” or “but not limited to” or words of similar import) but rather as permitting the general statement or term to refer to all other items or matters that could reasonably fall within its possible scope;

 

(e) Where the phrase “to the knowledge of” or phrases of similar import are used in respect of the parties, it will be a requirement that the party in respect of who the phrase is used will have made such due inquiries as is reasonably necessary to enable such party to make the statement or disclosure;

 

(f) A reference to currency means currency of the United States of America; and

 

(g) Words importing the masculine gender include the feminine or neuter, words in the singular include the plural, words importing a corporate entity include individuals, and vice versa.

 

Exhibits

 

1.3 The following Exhibits are attached hereto and made part of this Agreement:

 

(a) Exhibit “A” – Property and Land Map;

 

(b) Exhibit “B” – Encumbrances on the Property.

 

  

4

  

 

PART 2

 

TITLE, ENCUMBRANCES AND REPRESENTATIONS AND WARRANTIES

 

Title and Encumbrances

 

2.1 Freedom will not earn any better interest in the Property than Lornex has at the date hereof, and, except as may be provided herein, will acquire any interest earned by it hereunder subject to the royalties and encumbrances specifically listed in Exhibit “B” (the “Encumbrances”).

 

2.2 Lornex represents to Freedom that:

 

(a) Except for the Encumbrances and this Agreement, Lornex has not granted any interest (or the right to earn any interest) in the Property whereby a Third Party may acquire any portion of Lornex’s interest right in the Property, a Well, or in the Petroleum Substances produced there from or attributable thereto and that, except for the Encumbrances, no encumbrances, royalties or other burdens affecting the Property have been created by, through or under Lornex, or of which Lornex has knowledge;

 

(b) Lornex is not aware of any act or omission whereby it is or would be in default under (i) the terms of any agreement under which Lornex has earned, or has the right to earn, any interest in the Leases, the Property or a Well, or (ii) any applicable laws or regulations of adverse effect and is not aware of any fact or circumstance giving rise to such default; and

 

(c) Lornex, on or before the Effective Date, has not received or otherwise become aware of, any notice of default of adverse effect for or in respect of the Property or the Leases that has not been remedied or that has not been addressed specifically herein.

 

Reimbursement of Payments on Property

 

2.3 From the Effective Date, Freedom shall make on behalf of the Parties all payments, including but not limited to all payments of security, penalty or compensatory royalty, required to maintain in good standing such portion of the Property or any Well subject to the payments.

 

Mutual Representations

 

2.4 Each Party represents and warrants to the other Party that:

 

(a) It is a legal entity duly incorporated and validly existing under the laws of its jurisdiction of organization and has power to carry on its business and to own its property and assets;

 

(b) It is not insolvent under the laws of the place of its establishment or incorporation and is able to pay its debts as they fall due;

  

5

  

 

(c) It has all requisite power and authority required to enter into this Agreement and each other document or instrument delivered in connection herewith and has all requisite power and authority to perform fully each and every one of its obligations hereunder;

 

(d) It has taken all internal actions necessary to authorize it to enter into this Agreement and its representative whose signature is affixed hereto is fully authorized to sign this Agreement and to bind such Party thereby;

 

(e) Neither the entering into this Agreement nor the performance of the obligations hereunder will conflict with, or result in a breach of, or constitute a default under, any provision of its constituent documents, articles or by-laws, or any law, regulation, rule, authorization or approval of any governmental authority, or of any contract or agreement, to which it is a party or is subject; and

 

(f) This Agreement and each other agreement, document or instrument delivered in connection herewith, when executed and delivered, will constitute, valid and legally binding obligations of each Party, enforceable in accordance with their respective terms.

 

PART 3

 

FUNDING OF OBLIGATIONS AND ACQUISITION OF THE PROPERTY

 

Purchase Price

 

3.1 On and from the Effective Date, Lornex, subject to the terms hereof, hereby agrees to execute the Acquisition Agreement and to sell to Freedom and, on the Closing Date, to cause Lornex to transfer to Freedom, a 100% undivided right, title and interest (100% Working Interest) in and to the Property, and to the best of its knowledge, free from all liens, mortgages, charges, pledges, encumbrances, claims, liabilities, adverse interests or other burdens, with the exception of landowner’s royalty to Lornex  who will deliver an 90% net revenue interest in the Leases to Freedom.

 

Freedom agrees to purchase the Property and pay the consideration hereinafter specified.

 

3.2 Freedom will pay Lornex the sum of FOUR HUNDRED THOUSAND DOLLARS (US $400,000) as follows:

 

(a) SEVENTY FIVE THOUSAND DOLLARS (US $75,000) in cash within Fifteen (15) business days of Lornex’s compliance with the conditions precedent set forth in Section 5.3;

 

(b) SEVENTY FIVE THOUSAND DOLLARS (US $75,000) in cash within Forty Five (45) days of Lornex’s compliance with the conditions precedent set forth in Section 5.3;

  

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(c) SEVENTY FIVE THOUSAND DOLLARS (US $75,000) in cash within One Hundred and Twenty (120) days of Lornex’s compliance with the conditions precedent set forth in Section 5.3;

 

(d) SEVENTY FIVE THOUSAND DOLLARS (US $75,000) in cash within One Hundred and Eighty (180) days of Lornex’s compliance with the conditions precedent set forth in Section 5.3.

 

(e) FIFTY THOUSANDS DOLLARS (US $50,000) in cash within Two Hundred and Forty (240) days of Lornex’s compliance with the conditions precedent set forth in Section 5.3; and

 

(f) FIFTY THOUSANDS DOLLARS (US $50,000) in cash within Three Hundred (300) days of Lornex’s compliance with the conditions precedent set forth in Section 5.3;

 

(g) Provided, however, that for all payments due from Freedom to Lornex, as set forth in Section 3.2(a) through (f), Freedom shall be permitted a five (5) business day grace period in which to cure any default and that if payment is made within such grace period, such payment shall be considered timely under this Agreement.

 

3.3 All payments made shall be subject to the terms of paragraph 3.2 herein and shall be deemed non-refundable as liquidated damages and not as a penalty until the Total Purchase Price is paid by Freedom within the time frames set forth above. Freedom may pay the Total Purchase Price earlier than required without penalty, and upon payment of the Total Purchase Price, Closing shall occur within thirty (30) days. Freedom shall make all payments by wire transfer to Lornex using the following wiring instruction:

[Lornex bank wiring instructions provided]

3.4  Lornex will pay all rentals due on any of the Leases before closing of the Agreement, however, Freedom shall reimburse Lornex for delay rentals it paid subsequent to executing said Agreement.

 

3.5 At closing, which shall be no later than Three Hundred (300) days of executing the Agreement, after Freedom makes the payments as set out in §3.2(a) to §3.2(a) above, Lornex shall immediately transfer the Property, without warranty of title, to Freedom and execute and deliver, or cause to be executed and delivered, all documents, agreements and instruments as required to obtain a Transfer in registerable form. Lornex shall prepare and record all such documents necessary to transfer title and assign royalties.

  

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Title to the Leases may be conveyed to Freedom using standard assignment forms for such type of assignments and, to the best of Lornex’s knowledge, shall be free and clear of all liens, mortgages, encumbrances or other adverse claims. Prior to Closing, Freedom shall review the assignments on the Leases as to form and review title to the Leases to its satisfaction.  Freedom will forward the assignments for approval and recordation in the appropriate county, and BLM offices.  After recording or governmental approval, as applicable, Freedom will forward to Lornex a copy of the recorded instrument and/or a copy of the approved governmental assignment form.

 

3.6 In the event that Freedom desires to surrender in whole or part any of the Leases by non-payment of delay rentals, Freedom agrees to give Lornex written notice of at least 60 days prior to the surrender date.  Lornex shall then have fifteen (15) days from receipt of such notice, to deliver its written election to Freedom as to whether Lornex desires to receive a reassignment of such portion of said Lease(s) to be surrendered.  In the event that Lornex does not agree to the surrender, Freedom shall assign all interest conveyed pursuant to this agreement on the Lease(s) to Lornex absolutely free and clear of any liens, overriding royalty or other encumbrances of any kind whatsoever other than those in existence at the time of this agreement or placed thereon under the terms of this agreement.

 

3.7 Lornex shall hold the interests Transferred to Freedom pursuant to §3.1 in trust for Freedom, together with all benefits and advantages there under and any and all obligations pursuant thereto from the Effective Date and until such time as the Transfer is either completed or terminated in accordance with the terms of this Agreement.

 

3.8 Lornex shall execute in favour of Freedom, a declaration of trust agreement, or such other documents as may be reasonably required, to give effect to the intent of §3.7, all in forms acceptable to Freedom.

 

3.9 If any term or condition of a Transfer of an interest in the Property conflicts with any term or condition of a subject Lease or this Agreement, the terms or conditions of the subject Lease and this Agreement will prevail and the Transfer will be deemed to be amended accordingly.

 

Encumbrance Responsibility

 

3.10 If the interest of either Party in the Property is now or hereafter becomes encumbered (other than pursuant to the Encumbrances), the Parties covenant and agree that such encumbrance will at all times during the term of this Agreement remain the sole responsibility of the Party who creates such encumbrance or whose interest is now encumbered and in no event will such encumbrance be considered to be borne jointly by the Parties.

 

  

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PART 4

 

OPERATIONS

 

Disclosure of Property Data

 

4.1 Lornex shall provide Freedom with all technical data and information reports in the possession of Lornex relating to the Property, or relating to any Development activities proposed in respect of any Lease, and Lornex shall provide Freedom full access to all Property, data and accounting records relating to the Property.

 

4.2 Each Party shall immediately inform the other Party of any Development, whether proposed or ongoing, occurring on or in relation to the Property upon learning about the Development up until Closing of the Agreement.  During this period, each Party shall immediately provide the other Party with all material information related to every stage of a Development not in the other Party’s possession, including but not limited to detailed descriptions of all Development activities, progress reports, information reports, all technical data and accounting records related to the Development. For greater certainty, each Party shall be obligated to immediately disclose to the other Party all material information related to a Well drilled, or proposed to be drilled, on or in relation to the Property.

 

PART 5

 

ASSIGNMENT

 

Transfers to Related Entities

 

5.1 Each Party (each a “Transferring Party”) may Transfer all or part of its rights under this Agreement, or all or part of its interests in the Property acquired hereunder or otherwise, to a Wholly Owned Affiliate or Related Body Corporate without the consent of the other Party provided that the transferee covenants to be bound by this Agreement to the extent of the relevant interest transferred, and notwithstanding such Transfer, the Transferring Party will remain liable for all its obligation and liabilities hereunder prior to the date of the Transfer.

 

Transfers to Third Parties

 

5.2 Each Party may Transfer all or part of its rights under this Agreement, or all or part of its interests in the Property acquired hereunder or otherwise, to a Third Party as follows:

 

(a) Freedom may Transfer all or part of its rights under this Agreement, or all or part of its interests in the Property acquired hereunder, to a Third Party;

  

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(b) Lornex may Transfer all or part of its rights under this Agreement, or all or part of its interests in the Property, to a Third Party, including but not limited to its right to collect the payments set out in §3.2(a) to §3.2(f); and,

 

(c) If a Transfer to a Third Party is effected in conformity with the preceding provisions of this 5.2, the Transferring Party will only be released from all obligations and liabilities assigned to and assumed by the Third Party under this Agreement to the extent of the right or interest transferred when the Third Party has covenanted to be bound by the terms of this Agreement.

 

CONDITIONS PRECEDENT

 

5.3 The terms and conditions of this Agreement and the obligations of the Parties hereunder, are subject to receipt by Lornex and Freedom of all required corporate and regulatory approvals necessary to effect the Transaction and Lornex providing financial information with regard to the Property, Leases and related operations to Freedom sufficient for Freedom, in its sole judgment, to comply with its obligations under the Securities Exchange Act of 1934, as amended.

 

PART 6

 

MISCELLANEOUS PROVISIONS

 

Force Majeure

 

6.1 In this §6.1, the term “event of force majeure” means any event the occurrence or subsistence of which prevents a party from performing any obligation described in this Agreement and which is not reasonably within the control of such Party, and includes, without limitation, an act of God, a governmental directive or restriction, a labour dispute, and an act of war or other unlawful act against public order or authority.  Any Party which is at any time prevented by an event of force majeure from conducting any operation or activity, or from performing any obligation hereunder will promptly so notify the other Party, providing reasonable particulars of the event of force majeure and the operation, activity or obligation the conduct or performance of which is prevented thereby, and will take all such steps as may be reasonable in the circumstances to remedy such event of force majeure; provided, however, that no party will be required by the provisions hereof to settle any strike, lockout or other labour dispute on terms which it would not otherwise so settle.  If either Party is at any time prevented by an event of force majeure from performing any obligation hereunder (other than an obligation to pay money), such obligation will, to the extent that its performance is prevented by such event of force majeure, be suspended for so long as the event of force majeure continues to prevent such performance, and the non-performance of such obligation to such extent during such period of suspension will not constitute a breach of default hereunder.

  

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Confidentiality

 

6.2 The Parties will keep confidential from Third Parties all information obtained in the course of or as a result of any operations conducted pursuant to this Agreement or supplied by one Party to the other hereunder, except information which the Parties have expressly agreed to release or are required to disclose by applicable law or regulation.  Each Party will take measures in connection with operations and internal security as will be advisable in the circumstances to maintain such confidentiality.

 

6.3 Each Party may issue a press release or, in the case of Freedom, a Current Report on Form 8-K, relating to this Agreement and any operation subject to this Agreement at any time and without the prior approval of the other Party if the press release is drafted and issued in accordance with all applicable laws, Regulations, regulatory authorities and stock exchanges having jurisdiction over the press release, the Parties, the Property, the Transaction and this Agreement. Notwithstanding each Party’s right to issue a press release or Current Report at its sole discretion, each Party shall use its best efforts to consult with the other Party regarding the content of a press release or Current Report prior to issuing it if the issuing Party has reason to believe that the press release could affect the other Party in a material way. For the purposes of this §6.3, “press release”, will include any release of information or dissemination to the public by the media including, without limitation, the press, internet, radio or television media or any one or more of them.

 

Notice

 

6.4 Any notice, consent, waiver, direction or other communication required or permitted to be given under this Agreement by a party will be in writing and will be delivered by hand to the party to which the notice is to be given at the following address or sent by facsimile to the following numbers or to such other address or facsimile number as will be specified by a party by like notice. Any notice, consent, waiver, direction or other communication aforesaid will, if delivered, be deemed to have been given and received on the date on which it was delivered to the address provided herein (if a Business Day or, if not, then the next succeeding Business Day) and if sent by facsimile be deemed to have been given and received at the time of receipt (if a Business Day or, if not, then the next succeeding Business Day) unless actually received after 4:00 p.m. (Vancouver time) at the point of delivery in which case it will be deemed to have been given and received on the next Business Day.

 

The address for sending notice to each Party will be as follows:

 

(a)

 

To: Lornex Financial Ltd.

Henville Building

Charlestown, Nevis

Attention:  Cliff Wilkins

 

  

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To: Freedom Petroleum.

Office 15, Suite 1400

650 Poydras St

The Poydras Center

New Orleans, Louisiana - 70130

Attention: Anton Lin

Any Party may at any time and from time to time notify the other parties in writing of a change of address and the new address to which notice will be given to it thereafter until further change.

 

Supersedes Prior Agreements

 

6.5 All the agreements, arrangements and understandings between the Parties hereto which are the subject matter of this Agreement are embodied in this Agreement and this document will supersede all prior agreements, arrangements and understandings and any modification or amendment hereof will not be valid or binding on the Parties unless made in writing and duly signed by or on behalf of that Party.

 

Laws and Regulations

 

6.6 This Agreement and the respective rights and obligations of the Parties created by it, will be subject to all applicable Regulations, and in the event that any of the provisions contained in this Agreement or the operations contemplated under it are found to be inconsistent with or contrary to any such Regulation, the Regulations will be deemed to control and this Agreement will be regarded as modified accordingly and as so modified will continue in full force and effect.

 

6.7 This Agreement will be interpreted and construed in accordance with the laws of the state of New York and the federal laws of the United States as applicable therein.  The Parties agree to submit to the jurisdiction in any actions related to this Agreement.

 

Further Assurances

 

6.8 Each of the Parties will from time to time and at all times do such further acts and execute and deliver all such further deeds and documents as will be reasonably required in order to fully perform and carry out the terms of this Agreement.

 

Enurement

 

6.9 Subject to the terms of this Agreement, this Agreement will be binding upon and enure to the benefit of the parties and their respective successors and permitted assigns.

 

Time

 

6.10 Time will be of the essence in this Agreement.

  

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Entire Agreement

 

6.11 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes and replaces all previous understandings and agreements, whether written or oral, between the parties with respect to the subject matter hereof.

 

No Partnership

 

6.12 This Agreement will not be construed for any purpose to give rise to a partnership, association or any other relationship in which the Parties hereto may be liable for the acts or omissions of the other Party hereto nor to constitute a Party, the agent or legal representative of the other Party and each Party will be individually and severely responsible only for its obligations as set out in this Agreement.

 

Waiver

 

6.13 No waiver by either Party of any default by the other Party in the performance of this Agreement will operate or be construed as a waiver of any future default or defaults by that Party whether of a like or of a different character.

 

Costs

 

6.14 Each Party will be solely responsible for all costs, expenses and fees of any nature, including but not limited to legal fees, payable by such Party in connection with the preparation and negotiation of this Agreement.

 

Counterpart Execution

 

6.15 This Agreement may be executed in separate counterparts and all of the executed counterparts (including facsimile copies thereof) will together constitute one instrument and have the same force and effect as if all executed counterparts were of the same instrument.

 

 

 

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IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute these presents on the day and year above first written.

 

 

28TH APRIL 2014

 

LORNEX FINANCIAL LTD.

 

Per: /s/ Cliff Wilkins               

 Cliff Wilkins, President

 

FREEDOM PETROLEUM INC.

 

Per: /s/ Anton Lin               

Anton Lin, CEO

  

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EXHIBIT “A”

 

PROPERTY AND LAND MAP

 

This is Exhibit “A” to the Agreement for Purchase and Sale dated 28TH APRIL 2014 between Lornex and Freedom. (the “Agreement”).

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