Document:

ex10_1.htm

 

                                                       EXHIBIT 10.1

                                                       REDACTED COPY

 

  

DEVELOPMENT AND OPTION AGREEMENT

 

This Development and Option Agreement (“Agreement”) is entered into as of August 6, 2010 (“Effective Date”) by and between Biosara Corporation, a Delaware corporation, with a principal place of business in Corinth, Texas (“Biosara”) and Quick-Med Technologies, Inc., a Nevada corporation, having its principal office at 902 NW 4th Street, Gainesville, Florida 32601 (hereinafter referred to as “Quick-Med”).

WHEREAS

	
-  

	
Quick-Med is in the business of developing and commercializing technologies related to wound care and other health care and consumer applications.

	
-  

	
Biosara wishes Quick-Med to assist it in developing new products using numerous Quick Med patented products.

	
-  

	
Biosara is interested in incorporating Quick-Med’s NIMBUS® Technology (“Quick-Med Technology” which includes *****, into certain wound care products to be manufactured by or for Biosara.

	
-  

	
Quick-Med and Biosara plan to enter into a license agreement for NIMBUS and related technologies for use in applications and products arising from the development activities contemplated by this Agreement

	
-  

	
The Parties wish to commence with the tasks and responsibilities described in the Statement of Work which is attached hereto as Attachment A.

	
  

	
NOW THEREFORE the Parties hereto hereby agree as follows.

1.           Performance of Statement of Work.  The parties agree to perform in accordance with the terms of the Agreement, as set forth in Attachment A – Statement of Work, commencing immediately, and Biosara agrees to pay the sums set forth in the Agreement when they become due and owing as provided in the Agreement.  For the purpose of clarity, the performance of the Agreement by both Parties is understood as being an integral part of an ongoing cooperative project aimed at resulting in a commercially viable technology to be incorporated in the certain Biosara products under a U.S. patent and technology license (“License Agreement”) of Quick-Med Technology.

2.           Term.  This Agreement shall remain in force until December 31, 2010 or until superseded by another signed agreement between the Parties, whether via a licensing agreement or another product development agreement, whichever is first.

3.           Results from Agreement.  The information, data, results, reports, deliverables and other outputs or outcomes from the performance of the Agreement shall be jointly owned by both Parties during the of this Agreement, and shall be considered Confidential Information by both Parties. Intellectual Property rights shall be as stipulated in section 6 of the Agreement.

 

 

  

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***** This material has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

 

 

 

4.           Grant of Option.

4.1           Quick-Med hereby grants to Biosara an exclusive option (the “Option”) during the term of this Agreement (the “Option Period) to enter into a License Agreement, which   includes the essence of the terms set forth on Attachment B – License Agreement Term Sheet.

        4.2          During the Term of this Agreement and any mutually agreed extensions thereof, Quick-Med agrees not to license the Quick-Med Technology to any third party ***** within the United States and Canada.

4.3           If it is mutually agreed by Quick-Med and Biosara during the term of the development process of this Agreement to use *****.  This passage will not obligate Quick-Med if it has already granted a license, option or other rights to another party for *****.

5.           Exercise of Option.

5.1           Biosara may exercise the Option by sending Quick-Med written notice (the “Option Notice”) of such exercise any time between the date of execution of this Agreement and the expiration of the Option Period.

 

                               5.2           Upon Quick-Med’s receipt of the Option Notice, the parties, acting reasonably and in good faith, shall develop and execute the License Agreement within 60 days that includes the essence of the terms stated in the License Agreement Term Sheet. The License Agreement shall be dated with the date of the Option Notice. Upon execution and delivery of signed originals of the License Agreement to each other, the License Agreement shall thereupon become retroactively effective.

 

5.3           If Biosara fails to exercise the Option prior to the expiration of the Option Period, this Agreement and all rights granted hereunder (not including any rights related to any intellectual property), including without limitation the Option, shall immediately terminate and neither Party shall have any further obligation to the other except to the extent such obligation was incurred prior to the effective date of such termination.

6.           Intellectual Property.

6.1           Existing Intellectual Property.  All intellectual property (whether or not patentable) owned by either party as of the Effective Date including, without limitation, ideas, concepts, know-how, trade secrets, inventions, discoveries, processes, methods, compositions, formulae, information, data, developments and improvements, patent applications, patents, copyrights and designs (“Existing Intellectual Property”) shall remain the property of that party.

6.2           Quick-Med Ownership.  Quick-Med shall retain sole and exclusive ownership of all NIMBUS or other Quick-Med antimicrobial technology and any improvements or modifications thereto related developed during this development program.

6.3           Any wound dressing products, wound dressing technology, or wound dressing improvements or modifications, exclusive of the antimicrobial technology developed during this development program shall be owned by Biosara.

 

7.           Confidentiality.

7.1           Unless otherwise agreed in writing, the Parties specifically covenant and agree to hold all Confidential Information, and any records and documents containing Confidential Information, in the strictest confidence, and will not disclose, divulge or reveal Confidential Information to any person or persons whomsoever other than (a) to its employees as necessary and appropriate for the exclusive purpose of enabling such employees to perform their ordinary, day-to-day duties associated with performing Quick-Med’s work for or directly related to Biosara; or (b) as specifically authorized by the non-disclosing Party in writing.

7.2           “Confidential Information” as used herein means ideas, designs, records, plans, drawings, intellectual property, products, product samples, processes, systems, documents, writings, manuals, inventions, discoveries, formulae, prices, price lists, practices,   business plans, business methods, trade secrets, and all other information designated by the Parties individually or jointly to be “Confidential Information” (in writing, orally, or otherwise), with the sole exception of information available to the general public, without restriction.

 

 

  

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***** This material has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

 

 

 

8.           Disclaimer Of Warranties; Limitation Of Liability

	 	
8.1

	
NEITHER BIOSARA NOR QUICK-MED SHALL UNDER ANY CIRCUMSTANCES BE LIABLE TO EACH OTHER OR THEIR RESPECTIVE AFFILIATES FOR INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOSS OF PRODUCTION TIME, PROFITS, REVENUE, OR BUSINESS) RESULTING FROM OR IN ANY WAY RELATED TO THIS AGREEMENT, OR THE TERMINATION OF THIS AGREEMENT, OR ARISING OUT OF OR ALLEGED TO HAVE ARISEN OUT OF (I) BREACH OF THIS AGREEMENT OR (II) THE FAILURE BY EITHER PARTY TO DEVELOP ANY PRODUCTS OR PROCESSES IN ACCORDANCE WITH THE JOINT DEVELOPMENT PROGRAM.  THIS LIMITATION APPLIES REGARDLESS OF WHETHER SUCH DAMAGES ARE SOUGHT BASED ON BREACH OF CONTRACT, NEGLIGENCE, OR ANY OTHER LEGAL THEORY.

	 	
8.2

	
BIOSARA ACKNOWLEDGES THAT THE DEVELOPMENT ACTIVITIES ARE EXPERIMENTAL IN NATURE AND THAT QUICK-MED MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO QUICK-MED ANTIMICROBIAL TECHNOLOGY, OR ANY DATA, PRODUCTS OR OTHER RESULTS OF THE DEVELOPMENT ACTIVITIES HEREUNDER.

9.           Cooperation.

9.1           If applicable, Biosara shall provide reasonable cooperation with Quick-Med in preparing and filing any patent applications on antimicrobial technology.

9.2           If applicable, Quick-Med shall provide reasonable cooperation with Biosara in preparing and filing any patent applications on wound dressing technology.

10.           Independent Contractors.  When performing under this Agreement, Quick-Med and Biosara shall act at all times as independent parties.  Nothing contained herein shall be construed or applied so as to create the relationship of principal and agent or of employer and employee between Quick-Med and Biosara.  Neither party shall make any commitment or incur any charge or expense in the name of the other party.

11.           Controlling Law.  The validity and interpretation of this Agreement shall be governed by and construed in accordance with the laws of Florida, without reference to the choice of law or conflicts principles of such state which might be otherwise applicable.

12.           Notices.  All notices, reports and receipts shall be in writing and shall be deemed duly given on (i) the date of personal or courier delivery; (ii) the date of transmission by facsimile or other electronic transmission service, provided a confirmation copy if also sent no later than the next business day by postage paid, return receipt requested first-class mail; or (iii) three (3) business days after the date of deposit in the United States mails, by postage paid, return receipt requested first-class mail, addressed as follows:

If to Biosara:

Scott Anderson, COO

Biosara

4251 FM 2181

Suite 230-307

Corinth, TX 76210

Facsimile: (888) 600-0913

If to Quick-Med:

Jerry Olderman, VP R&D

Quick-Med Technologies, Inc.

902 NW Fourth Street

Gainesville, FL 32601

Facsimile: (561) 416-1390

Either party may change its mailing address by written notice to the other party in accordance with this Section 10.

 

  

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***** This material has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

 

 

 

13.           Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

14.           Captions or Headings.  The captions and/or headings in this Agreement are for convenience only, and are not to be construed as part of the Agreement and shall not limit, characterize or in any way affect the interpretation of this Agreement.  If any conflict exists between the headings and the contents of a provision, the contents shall prevail.

15.           Counterparts.  This Agreement may be executed in counterparts, including by means of facsimiled signature pages, any one of which need not contain the signature of more than one party, each of which shall be deemed an original, but all of which together shall constitute the entire Agreement.

16.           Waiver.  The failure or delay of either party to insist upon the other party’s strict performance of the provisions in this Agreement or to exercise in any respect any right, power, privilege, or remedy provided for under this Agreement shall not operate as a waiver or relinquishment thereof, nor shall any single or partial exercise of any right, power, privilege or remedy preclude other or further exercise thereof, or the exercise of any other right, power, privilege, or remedy; provided, however, that the obligations and duties of either party with respect to the performance of any term or condition in this Agreement shall continue in full force and effect.

17.           Assignment.  The rights and obligations under this Agreement shall accrue to be binding upon the assigns and successors to the business of the respective parties; provided, however that neither party may assign this Agreement or any right or duty hereunder without the express written consent of the other party to this Agreement which consent shall not be unreasonably withheld.

18.           Entire Agreement.  This Agreement constitutes the entire agreement and understanding between the parties regarding the subject matter hereof, and supersedes all prior discussions and agreements between them relating thereto.  No waiver, modification or amendment to this Agreement shall be valid unless in writing, signed by authorized representatives of the parties hereto.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers as of the date first above written.

BIOSARA CORPORATION

 

By:           TED PAPPAS                                                                

Its:           PRESIDENT AND CEO                                                      

QUICK-MED TECHNOLOGIES, INC.

By:           J LADD GREENO                                                      

Its:           CEO                                                      

 

 

 

  

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***** This material has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

 

 

 

Attachment A

Statement of Work

*****

 

 

 

 

 

  

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***** This material has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

 

 

 

Attachment B

License Agreement Term Sheet

 

Biosara - Quick-Med Patent and Technology License Agreement

Agreed Terms

	
Licensee

	
Biosara Corporation (“Biosara”)

	
Licensor

	
Quick-Med Technologies, Inc. (“Quick-Med”)

	
Technology

	
NIMBUS® (Novel Intrinsically Micro-Bonded Utility Substrate), *****.

	
Product

	
***** with NIMBUS technology

	
License

	
Right to use technology in return for the specified royalty fees. Also, use of patents and know-how to produce the Product in the Field of Use in the Territory

	
Field of Use

	
Professional (institutional) wound care market

	
Territory

	
USA and Canada

*****

	
License Fees

	
*****

	
Royalty

	
***** Net Sales

	
Exclusivity

	
Exclusive, subject to Minimum Royalty payments of *****.

 

*****

 

	
Intellectual Property Ownership

	
The know-how and Patents relating to the NIMBUS technology as well as any improvements or modifications thereto are the sole property of Quick-Med and  Biosara shall have no proprietary or equitable rights or goodwill therein except for the licenses provided hereunder.

	
Regulatory

	
Biosara will obtain marketing clearance for the Product. Biosara shall be solely responsible and shall bear all costs with respect to regulatory filings. Quick-Med will cooperate in providing documentation related to the predicate device(s).

	
Trademarks and Product Labeling

 

	
Licensor’s shall remain the owner of all right, title and interest to the common law trademark associated with the name NIMBUS®, and any other marks it developed in association with the Licensor’s intellectual property. Biosara shall include Quick-Med’s name, relevant Quick-Med marks and patent numbers on all product packaging and promotional material in accordance with Quick-Med’s Trademark Standards.

	
Technical Support

	
Quick-Med to provide support and guidance as specified in the Statement of Work. After the first commercial sale of the new product substrate, Quick-Med will provide technical support requested by Biosara and agreed by Quick-Med at *****.

	
Supply

	
Biosara will be responsible for manufacturing and supply of its Products in the territory. Biosara will purchase chemicals for NIMBUS treatment from suppliers authorized by Quick-Med.

	
Term

	
*****.

	
Termination

	
By either party in the event of a material breach that is not cured in a timely manner by the other party.

	
Confidentiality

	
All project related work, documents, discussions, samples, terms of this deal, product and commercial information, market information etc to be held as confidential.

	
Controlling Law

	
State of Florida

	
Standard Provisions

	
The license agreement will contain mutually agreeable provisions, conditions, representations, warranties and covenants typically included in transactions of this type, including, but not limited to, those relating to regulatory compliance, audit rights, confidentiality, indemnity and insurance.

 

  

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***** This material has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.Exhibit 4.6

 

 

 

 

 

 

Exhibit 4.6

 

SOUTHERN FIRST
BANCSHARES, INC.

2010 STOCK
INCENTIVE PLAN

 

Form of Stock
Option Agreement

 

SOUTHERN FIRST
BANCSHARES, INC.

STOCK OPTION
AGREEMENT

 

         THIS STOCK OPTION AGREEMENT (this “Agreement”) is
entered into as of this [__] day of [_______],  2010, between Southern First
Bancshares, Inc., a South Carolina corporation (the “Company”), and
[__________] (the “Optionee”).

 

         WHEREAS, on May 18, 2010, the Board of Directors of
the Company adopted a Stock Incentive Plan known as the “Southern First
Bancshares, Inc. 2010 Stock Incentive Plan” (the “Plan”), and recommended that
the Plan be approved by the Company’s shareholders; and

 

         WHEREAS, the Committee has granted the Optionee a
stock option to purchase the number of shares of the Company’s common stock as
set forth below, and in consideration of the granting of that stock option the
Optionee intends to remain in the employ of the Company; and

 

         WHEREAS, the Company considers it desirable and in
its best interest that the Optionee be provided an inducement to acquire an
ownership interest in the Company and an additional incentive to advance the
interest of the Company through the grant of an option to purchase shares of
common stock of the Company pursuant to the Plan; and

 

         WHEREAS, the Company and the Optionee desire to
enter into a written agreement with respect to such option in accordance with
the Plan.

 

         NOW, THEREFORE, as an employment incentive and to
encourage stock ownership, and also in consideration of the mutual covenants
contained herein, the Company and the Optionee agree as follows.

 

            1.         Incorporation of Plan. This
option is granted pursuant to the provisions of the Plan and the terms and
definitions of the Plan are incorporated herein by reference and made a part
hereof. A copy of the Plan has been delivered to, and receipt is hereby
acknowledged by, the Optionee.

 

            2.         Grant of Option.  Subject to
the provisions stated in this Agreement, the Company hereby evidences its grant
to the Optionee, not in lieu of salary or other compensation, of the right and
option (the  “Option”)  to  purchase  the number of shares of the Company’s
common stock,  par value $0.01 per share (the “Common Stock”), set forth below,
exercisable in the amounts and at the time specified below.  This Option is
intended to be an Incentive Stock Option, as defined in the Code.

 

            Number of Shares:                    
[_____________]

 

 

 

 

 

 

 

            Exercise Price:                       $ 
[_______] per share

 

Option
Vesting Schedule:          Options are exercisable with respect the shares of
Common Stock as follows, subject in each case to continued employment by the
Company or a subsidiary of the Company through such date, and subject to the
provisions of Section 7 of this Agreement:

 

	
  No.
  of Shares

  	
  Vesting
  Date

  
	
   

  	
  [_________], 2010

  
	
   

  	
  [_________], 2011

  
	
   

  	
  [_________], 2012

  
	
   

  	
  [_________], 2013

  
	
   

  	
  [_________], 2014

  

 

 

            Option
Exercise Period:              All options expire and are void unless exercised
on or before [___________], 20[__].

 

 

            3.         Exercise Terms.  The Optionee
must exercise the Option for at least the lesser of 100 shares or the number of
shares of Stock as to which the Option remains unexercised but exercisable.  If
this Option is not exercised with respect to all or any part of the shares
subject to this Option prior to its expiration, the shares with respect to
which this Option was not exercised shall no longer be subject to this Option.

 

            4.         Restrictions on Transferability. 
No Option shall be transferable by an Optionee other than by will or the laws
of descent and distribution or pursuant to a Qualified Domestic Relations
Order.  During the lifetime of an Optionee, Options shall be exercisable only
by such Optionee (or by such Optionee’s guardian or legal representative,
should one be appointed).  The shares purchased pursuant to the exercise of an
Incentive Stock Option shall not be transferred by the Optionee except pursuant
to the Optionee’s will, or the laws of descent and distribution, until such
date which is the later of two years after the grant of such Incentive Stock
Option or one year after the transfer of the shares to the Optionee pursuant to
the exercise of such Incentive Stock Option.

 

 

2

 

 

 

 

 

            5.         Notice of Exercise of Option. 
This Option may be exercised by the Optionee, or by the Optionee’s administrators,
executors or personal representatives, by a written notice (in substantially
the form of a Notice of Exercise approved by the Company) signed by the
Optionee, or by such administrators, executors or personal representatives, and
delivered or mailed to the Company as specified in this Agreement to the
attention of the President or such other officer as the Company may designate. 
Any such notice shall (a) specify the number of shares of Common Stock which
the Optionee or the Optionee’s administrators, executors or personal
representatives, as the case may be, then elects to purchase hereunder, (b)
contain such information as may be reasonably required by the Company pursuant
to this Agreement, and (c) be accompanied by (i) a certified or cashier’s check
payable to the Company in payment of the total Exercise Price applicable to
such shares as provided herein, (ii) shares of stock owned by the Optionee and
duly endorsed or accompanied by stock transfer powers, or constructively
delivered through an attestation, having a Fair Market Value equal to the total
Exercise Price applicable to such Shares purchased hereunder, or (iii) a
certified or cashier’s check accompanied by the number of shares of stock where
Fair Market Value when added to the amount of the check equal the total
Exercise Price applicable to such shares purchased hereunder. Upon receipt of
any such notice and accompanying payment, and subject to the terms hereof, the
Company agrees to issue to the Optionee or the Optionee’s administrators,
executors or personal representatives, as the case may be, stock certificates
for the number of shares specified in such notice registered in the name of the
person exercising this Option.

 

            6.         Adjustment in Option.  The
number of Shares subject to this Option, the Exercise Price, and other matters
are subject to adjustment during the term of this Option in accordance with
Section 4 of the Plan.

 

            7.         Termination of Employment. 

 

                        (a)        In the event of the
termination of the Optionee’s employment (including due to retirement) with the
Company or any of its Subsidiaries, other than a termination that is either (i)
for Cause, or (ii) for reasons of death or Permanent and Total Disability, all
vesting of the Option shall cease and the Optionee may exercise this Option at
any time within a period ending on the earlier of (a) the last day of the
period ending three months after such termination or (b) the expiration date of
this Option, to the extent of the number of shares which were purchasable
(vested) as of the date of such termination (and thereafter this Option shall
be deemed terminated and shall not be or become exercisable).

 

                        (b)        In the event of a
termination of the Optionee’s employment for Cause, this Option, to the extent
not previously exercised, shall terminate immediately and shall not thereafter
be or become exercisable.

 

                        (c)        In the event of
termination of employment because of the Optionee’s Permanent and Total
Disability, all vesting of the Option shall cease and the Optionee (or his or
her personal representative) may exercise this Option, within a period ending
on the earlier of (a) the last day of the one year period  following the
Optionee’s Permanent and Total Disability or (b) the expiration date of this
Option, to the extent of the number of shares which were purchasable (vested)
as of the date of such termination.

 

 

3

 

 

 

 

 

                        (e)        In the event of the
Optionee’s death while employed by the Company or any of its  Subsidiaries or
within three months after a termination of such employment (if such 
termination was not for Cause), the appropriate persons described in Section 5
hereof or persons to whom all or a portion of this Option is transferred in
accordance with Section 4 hereof may exercise this Option, to the extent
vested, at any time within a period ending on the earlier of (a) the last day
of the one year period following the Optionee’s death or (b) the expiration
date of this Option.  If the Optionee was an employee of the Company at the time
of death, all vesting of the Option shall cease as of the date of death, and,
this Option may be so exercised to the extent of the number of shares that were
purchasable (vested) as of the date of death.  If the Optionee’s employment
terminated prior to his or her death, all vesting of the Option shall have
ceased as of the date of termination, and this Option may be exercised only to
the extent of the number of shares covered by this Option which were
purchasable (vested) as of the date of such termination.

 

            This Option does not confer upon the Optionee
any right with respect to continuance of employment by the Company or by any of
its Subsidiaries.  This Option shall not be affected by any change of
employment so long as the Optionee continues to be an employee of the Company
or one of its Subsidiaries.

 

            8.         Compliance with Regulatory Matters. 
The Optionee acknowledges that the issuance of capital stock of the Company is
subject to limitations imposed by federal and state law and the Optionee hereby
agrees that the Company shall not be obligated to issue any shares of Stock
upon exercise of this Option that would cause the Company to violate law or any
rule, regulation, order or consent decree of any regulatory  authority
(including without limitation the Securities and Exchange  Commission) having
jurisdiction over the affairs of the Company. The  Optionee agrees that he or
she will provide the Company with such information as is reasonably  requested
by the Company or its counsel to determine whether the issuance of Stock
complies with the provisions described by this Section 8.

 

            9.         Forfeiture.  The purpose of
the Plan is to attract, retain, and reward employees, to increase stock
ownership and identification with the Company’s interests, and to provide
incentive for remaining with and enhancing the value of the Company over the
long-term.  Therefore, the Company and the Optionee agree as follows:

 

 

4

 

 

 

 

 

                        (a)        If, at any time within
the later of (i) one year after termination of the  Optionee’s employment or
(ii) one year after the Optionee’s exercise of any portion of this  Option, the
Optionee engages in any activity which constitutes a violation of any
confidentiality,   noncompetition, nonsolicitation, or similar provision of any
employment or other agreement between the Company and the Optionee (or, if no
agreement is in place between the Company and the Optionee, any Company
policies pertaining to such matters), or if the Optionee engages in any illegal
or prohibited activity which is inimical, contrary, or harmful to the interests
of the Company (including  conduct related to the Optionee’s  employment for
which either criminal or civil penalties  against the Optionee may be sought or
violation of the  Company’s  policies, including the Company’s insider trading
policy), then (1) this Option shall terminate effective the date on which the
Optionee enters into such activity, unless terminating sooner by operation of
another term or condition of this Option or the Plan, and (2) any Option Gain
realized by the Optionee from exercising all or a portion of this Option shall
be paid by the Optionee to the Company.  “Option Gain” shall mean the gain
represented by the mean market price on the date of exercise over the Exercise
Price, multiplied by the number of shares purchased through exercise of the
Option, without regard to any subsequent market price decrease or increase. 
The forfeiture  provisions described in this Section shall apply even if the
Company does not elect otherwise to enforce the employment agreement or take
other action against the Optionee, but shall not apply if termination of the
Optionee’s employment with the Company occurs in connection with or following a
Change in Control involving the Company (as defined in the Plan).

 

                        (b)        Section 12(d) of the Plan
applies with respect to withholding tax payments (if any) with respect to this
Option.  The Optionee hereby appoints the Company as its attorney-in-fact to
execute any documents or do any acts necessary to exercise its rights under
this Section.

 

                        (c)        The Optionee
may be released from its obligations under this Section only if the Board
of Directors (or its duly appointed agent) determines in its sole discretion
that such action is in the best interests of the Company.

 

            10.       Miscellaneous.

 

                        (a)        This Agreement shall be
binding upon the parties hereto and their representatives, successors and
assigns.

 

                        (b)        Unless the context
clearly indicates to the contrary, all capitalized  terms  used herein shall
have the  meanings as set forth in this Agreement, or in the event a
capitalized term is not clearly described in this Agreement, the meanings as
set forth in the Plan.

 

                        (c)        This Agreement is executed
and delivered in, and shall be governed by the laws of, the State of South Carolina.

 

                        (d)       Income realized by the
Optionee pursuant to this Agreement shall not be included in the Grantee’s
earnings for the purpose of any benefit plan of the entity in which the
Optionee may be enrolled or for which the Optionee may become eligible unless
otherwise specifically provided for in such plan.

 

                        (e)        Any requests or notices
to be given hereunder shall be deemed given, and any elections or exercises to
be made or accomplished shall be deemed made or accomplished,  upon actual
delivery thereof to the designated recipient, or three days after deposit
thereof in the  United States mail, registered, return receipt requested and
postage prepaid, addressed, if to the Optionee, at the address set forth below
and, if to the Company, to the executive offices of the Company at Post Office
Box 17465, Greenville, South Carolina 29606.

 

                        (f)        This Agreement may not be
modified except in writing executed by each of the parties hereto.

 

 

 

            IN WITNESS WHEREOF, the Board of Directors of
the Company has caused this Stock Option Agreement to be executed on behalf of
the Company and the Company’s seal to be affixed hereto and attested by the
Secretary or an Assistant Secretary of the Company, and the Optionee has
executed this Stock Option Agreement under seal, all as of the day and year
first above written.

 

5

 

 

 

 

 

 

                                                                                                                                                        SOUTHERN
FIRST BANCSHARES, INC.

 

                                                                                                                                                        By:
__________________________________

                                                                     
                                                                                  Name:  R. Arthur Seaver, Jr.

                                                                                                                                                        Title:   
Chief Executive Officer

 

 

                                                                                                                                                        OPTIONEE

 

                                                                                                                                                        By: 
________________________________

 

                                                                                                                                                        Name:
_______________________________

 

                                                                                                                                                        Address:______________________________

 

 

 

 

6

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