Document:

Amendment No. 2 to the Second Amended and Restated Loan and Security Agreement

 EXHIBIT 10.3 
  
 AMENDMENT NO. 2 TO SECOND AMENDED 
 AND RESTATED LOAN AND SECURITY AGREEMENT 
  
 This AMENDMENT NO. 2 TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) dated as of March 16, 2005 is by and among Remy International, Inc. (f/k/a Delco Remy International
Inc.), a Delaware corporation (“Parent”), the following Subsidiaries of Parent: Remy Inc. (f/k/a Delco Remy America, Inc.), a Delaware corporation, Remy Sales, Inc. (f/k/a DR Sales, Inc.), a Delaware corporation, Franklin Power
Products, Inc., an Indiana corporation, HSG I, Inc, a Delaware corporation, HSG II, Inc, a Delaware corporation, International Fuel Systems, Inc., an Indiana corporation, M. & M. Knopf Auto Parts, L.L.C., a Delaware limited liability company,
Nabco, Inc., a Michigan corporation, Powrbilt Products, Inc., a Texas corporation, Remy Logistics, L.L.C., a Delaware limited liability company, Remy Reman, L.L.C., a Delaware limited liability company, Western Reman Industrial, LLC, a Delaware
limited liability company (“Western Reman”), World Wide Automotive, L.L.C., a Virginia limited liability company, UPC Acquisition Corp., a Delaware corporation (to be renamed Unit Parts Company, “UPC”) (each individually,
together with the Parent, a “Borrower” and collectively, the “Borrowers”), Congress Financial Corporation (Central), an Illinois corporation, as agent for Lenders referenced below (in such capacity and as US
Collateral Agent, as defined in the Loan Agreement referenced below, the “Agent”), and the financial institutions (each individually, a “Lender” and collectively, the “Lenders”) party to that
certain Second Amended and Restated Loan and Security Agreement, dated as of April 23, 2004 (as amended or otherwise modified prior to the date hereof, the “Loan Agreement”). Capitalized terms used and not defined herein shall have
the meanings assigned to them in the Loan Agreement. 
  
 R E C I T
A L S: 
  
 WHEREAS, Borrowers have requested that Agent and
Lenders agree to certain amendments to the Loan Agreement as set forth herein; and 
  
 WHEREAS, Agent and Lenders have agreed to such amendments upon the terms and conditions contained herein. 

 NOW, THEREFORE, in consideration of the premises contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 Section 1 Amendments to the Loan Agreement. Immediately upon the satisfaction of each of the conditions precedent set forth in Section 2
below, the Loan Agreement is hereby amended as follows: 
  
 (a) Section 1 of the Loan Agreement is hereby amended by amending and restating the definition of “Applicable Margin” to read as follows: 
  
 “Applicable Margin” shall mean, at any time, as to the Interest Rate for Prime Rate Loans,
Eurodollar Rate Loans and Letter of Credit Accommodations, the applicable row of percentages set forth below if the Monthly Excess Availability as of the last Business Day of the immediately preceding calendar month is at or within the amounts
indicated for such row: 
  

							
	 Monthly Excess Availability

	  	 Applicable Margin
 for Prime
 Rate Loans

	 	 Applicable Margin
 for Eurodollar
 Rate Loans

	 	 Letter of Credit
 Accommodations

	 (a)    $75,000,000 or more
	  	0.00%	 	2.00%	 	1.75%
				
	 (b)    Greater than or equal to $50,000,000 and less than $75,000,000
	  	0.00%	 	2.25%	 	2.00%
				
	 (c)    Greater than or equal to $25,000,000 and less than $50,000,000
	  	0.25%	 	2.50%	 	2.25%
				
	 (d)    Less than $25,000,000
	  	0.50%	 	2.75%	 	2.50%

  
 provided,
that, the Applicable Margin shall be calculated and established on the first Business Day following the end of each calendar month in accordance with the definition of “Interest Rate”. 
  
 (b) Section 1 of the Loan Agreement is hereby amended
by amending and restating clause (d) of the definition of “Borrowing Base” and adding a new clause (e) therein, in each case to read as follows: 
  
 (d) Reserves established by Agent; minus  
  
 (e) $15,000,000; provided, that for purposes of determining Excess Availability under the definition of “Applicable Margin” and for
purposes of determining Average Excess Availability under the definition of “Trigger Event”, such amount shall be $0.” 
  
 (c) Section 1 of the Loan Agreement is hereby amended by amending the definition of “Financing Agreements” to add the
following new sentence at the end thereof to read as follows: 
  
 “Notwithstanding the foregoing, in no event shall the term Financing Agreements be deemed to include any Hedging Agreements.” 
  

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 (d) Section 1 of the Loan Agreement is hereby amended by amending the definition
of “Obligations” to add the following new sentence at the end hereof to read as follows: 
  
 “Notwithstanding the foregoing, the term “Obligations” shall include, for purposes only of Section 5.1 hereof and subject to the priority
in right of payment set forth in Section 6.4 hereof, all obligations, liabilities and indebtedness of every kind, nature and description owing by any or all of Borrowers to Agent, any Lender, any Affiliate of any Lender or any other financial
institution acceptable to Agent (and in each case as to any such Lender, Affiliate of any Lender or other financial institution only to the extent approved by Agent) arising under or pursuant to a Hedging Agreement, whether now existing or hereafter
arising, provided, that, (i) such obligations, liabilities and indebtedness shall only be included within the Obligations upon Parent’s request and if upon Agent’s request, Agent shall have entered into an agreement, in form
and substance satisfactory to Agent, with any Lender, any Affiliate of any Lender or any other financial institution acceptable to Agent that is a counterparty to such Hedging Agreement, as acknowledged and agreed to by Borrowers, providing for the
delivery to Agent by such counterparty of information with respect to the amount of such obligations and providing for the other rights of Agent and such Lender, Affiliate of any Lender or any other financial institution acceptable to Agent, as the
case may be, in connection with such arrangements and (ii) in no event shall the party to such Hedging Agreement to whom such obligations, liabilities or indebtedness are owing be deemed a Lender for purposes hereof to the extent of and as to such
obligations, liabilities or indebtedness other than for purposes of Section 5.1 hereof and other than for purposes of Sections 12.1, 12.2, 12.3(b), 12.6, 12.7, 12.9 and 12.12 hereof and in no event shall the approval of any such Person be required
in connection with the release or termination of any security interest or lien of Agent.” 
  
 (e) Section 1 of the Loan Agreement is hereby amended by amending the definition of “Reserves” to add the following new
language at the end of the first sentence therein (before the period) to read as follows: 
  
 “or (h) to reflect obligations, liabilities or indebtedness (contingent or otherwise) of Borrowers to Agent, any Lender, any Affiliate of any Lender or any other financial institution acceptable to Agent (and in
each case as to any such, Lender, Affiliate of any Lender or other financial institution only to the extent approved by Agent) arising under or in connection with any Hedging Agreement of any Borrower with Agent, any Lender, any Affiliate of any
Lender or 
  

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any other financial institution acceptable to Agent or as such Person may otherwise require in connection therewith to the extent that such obligations,
liabilities or indebtedness constitute Obligations as such term is defined herein.” 
  
 (f) Section 1 of the Loan Agreement is hereby amended by adding two new definitions of “UPC” and “Vendor Purchase
Arrangements” in their proper alphabetical places to read as follows: 
  
 “UPC” shall mean UPC Acquisition Corp., a Delaware corporation, to be renamed Unit Parts Company. 
  
 “Vendor Purchase Arrangements” shall mean Inventory of UPC that is subject to (a) those certain vendor agreements between UPC and O’Reilly
Automotive, Inc. dated as of June 23, 2003 (as amended or modified from time to time) and (b) those certain vendor agreements between UPC and Autozone Parts, Inc. dated as of June 11, 2003 (as amended or modified from time to time), in each case
pursuant to which UPC has purchased Inventory on credit from such vendors to be sold by such vendors on a consignment basis.” 
  
 (g) Section 2.1(a) of the Loan Agreement is hereby amended by amending and restating clause (iii) therein to read as follows:

  
 “(iii) $145,000,000 or” 
  
 (h) Section 2.1(c) of the Loan Agreement is hereby
amended by amending and restating clause (i)(C) therein to read as follows: 
  
 “(C) $145,000,000 or” 
  
 (i) Section 5.1 of the Loan Agreement is hereby amended by adding the following new sentence to the end of the last paragraph in Section 5.1 to read as follows: 
  
 “Notwithstanding the foregoing, the definition of Collateral shall not
include the Capital Stock of iPower Technologies, Inc.” 
  

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 (j) Section 6.4 of the Loan Agreement is hereby amended by amending and restating
the first paragraph sentence only of Section 6.4 to read as follows: 
  
 “All Obligations shall be payable to the Agent Payment Account as provided in Section 6.3 or such other place as Agent may designate from time to time in writing to Administrative Borrower. Agent shall apply payments received or
collected from any Borrower for the account of any Borrower (including the monetary proceeds of collections or of realization upon any Collateral) as follows: first, to pay any fees, indemnities or expense reimbursements then due to Agent and
Lenders from any Borrower; second, to pay interest due in respect of any Loans (and including Special Agent Advances); third, to pay principal due in respect of the Special Agent Advances; fourth, to pay principal in respect of
the Loans and to pay or prepay Obligations arising under or pursuant to any Hedging Agreement of a Borrower with Agent, any Lender, any Affiliate of any Lender or any other financial institution acceptable to Agent (up to the amount of any then
effective Reserve established in respect of such Obligations), on a pro rata basis; and fifth, to pay or prepay any other Obligations whether or not then due, in such order and manner as Agent determines or to be held as cash
collateral in connection with any Letter of Credit Accommodations or other contingent Obligations (but not including for this purpose any Obligations arising under or pursuant to any Hedging Agreements); and sixth, to pay or prepay any
Obligations arising under or pursuant to Hedging Agreements (other than to the extent provided for above) on a pro rata basis.” 
  
 (k) Section 7.3 of the Loan Agreement is hereby amended by amending and restating clause (d) therein to read as follows:

  
 “(d) upon Agent’s request, Borrower shall, at
their expense, no more than one (1) time in any twenty-four (24) month period (or once in any twelve (12) month period in respect of core Inventory), but at any time or times as Agent may request during the existence of a Trigger Event, deliver or
cause to be delivered to Agent written appraisals as to the Inventory by an independent appraiser acceptable to Agent applying an approach to valuation which is consistent to the approach used in the appraisals of Borrowers’ Inventory prepared
for Agent prior to Original Closing Date, addressed to Agent and Lenders and upon which Agent and Lenders are expressly permitted to rely;” 
  
 (l) Section 8.4 of the Loan Agreement is hereby amended by amending and restating clause (c) therein to read as follows:

  
 “(c) liens and encumbrances described in Section 9.8(j)
with respect to real property acquired after the date hereof and other liens and encumbrances permitted under Section 9.8 which are junior to the Agent’s liens in the Collateral.” 
  

 5 

 (m) Section 9.8 of the Loan Agreement is hereby amended by (i) adding the
language; “; and” in place of the period at the end of clause (o) therein and (ii) adding a new clause (p) at the end of such Section 9.8 to read as follows: 
  
 “(p) liens consisting of (i) purchase money security interests in Inventory of UPC located at locations owned or
controlled by O’Reilly Automotive, Inc. or Autozone Parts, Inc. and (ii) Accounts owing to UPC from O’Reilly Automotive, Inc. or Autozone Parts, Inc., arising from Indebtedness permitted under Section 9.9(s) hereof; provided such Inventory
and Accounts shall be excluded from the Borrowing Base.” 
  
 (n) Section 9.9 of the Loan Agreement is hereby amended by (i) adding the language “; and” in place of the period at the end of clause (r) therein ad (ii) adding a new clause (s) at the end of such
Section 9.9 to read as follows: 
  
 “(s) purchase
money Indebtedness not to exceed $50,000,000 in the aggregate outstanding under the Vendor Purchase Arrangements.” 
  
 (o) Section 9.17 of the Loan Agreement is hereby deleted and replaced with the phrase “Intentionally Deleted.”

  
 (p) Section 9.18 of the Loan Agreement
is hereby deleted and replaced with the phrase “Intentionally Deleted.” 
  
 (q) Section 11.3(a) of the Loan Agreement is hereby amended by (i) adding the language “, or” in place of the period at
the end of clause (vii) therein and (ii) adding a new clause (viii) at the end of such Section 11.3(a) to read as follows: 
  
 “(viii) decrease the availability block set forth in clause (e) of the definition of Borrowing Base, without the consent of Agent and all Lenders.

  
 (r) Section 12.8 of the Loan Agreement
is hereby amended by deleting reference to “$120,000,000” set forth therein and replacing it with the amount of “$145,000,000”. 
  

 6 

 (s) Section 13.1(a) of the Loan Agreement is hereby amended by replacing the date
“June 30, 2007” set forth in clause (a) of Section 13.1 with the date “June 30, 2008”. 
  
 (t) Section 13.1(a) of the Loan Agreements is hereby amended by amending the fourth sentence set forth in such Section 13.1(a) to
add the following new language at the end of such sentence (before the period) to read as follows: 
  
 “and for any of the Obligations arising under or in connection with any Hedging Agreement in such amounts as the other party to such Hedging
Agreement may require (unless such Obligations arising under or in connection with any Hedging Agreement are paid in full in cash and terminated in a manner satisfactory to such other party).” 
  
 (u) Section 13.1(c) of the Loan Agreement is hereby
amended by amending and restating the calculation of the termination fee to read as follows: 
  

			
	 “Amount

	 	 Period

	 (i) 1.0% of Maximum Credit
	 	From March 16, 2005 to and including March 16, 2006
		
	 (ii) 0.25% of Maximum Credit
	 	From and after March 16, 2006 to and including March 16, 2007”

  
 (v)
Pursuant to Section 9.10(j) of the Loan Agreement, Agent hereby approves of the inclusion by UPC of its assets into the Borrowing Base subject to all terms and conditions of the Loan Agreement. 
  
 (w) Upon effectiveness of the name change of UPC Acquisition
Corp. to Unit Parts Company, all references in the Financing Agreements to UPC Acquisition Corp., a Delaware corporation, shall be deemed a reference to Unit Parts Company, a Delaware corporation. 
  
 Section 2 Conditions to Effectiveness. The effectiveness of the
amendments set forth in Section 1 above are subject to the satisfaction of each of the following conditions: 
  
 (a) Agent shall have received a duly executed counterpart of this Amendment from Borrowers and the Lenders; 
  
 (b) Agent shall have received a reaffirmation of guaranty
from each guarantor of the Obligations in form and substance satisfactory to the Agent; 
  
 (c) In consideration of the amendments provided herein, Borrowers shall have paid to Agent, for the ratable benefit of the Lenders
executing this Amendment, an amendment fee equal to $275,000; 
  

 7 

 (d) Agent shall have received an executed copy of the Asset Purchase Agreement
(“APA”) among Parent, UPC and the Sellers named therein (“Sellers”), together with all exhibits and schedules thereto, in each case in form and substance satisfactory to Agent; 
  
 (e) Agent shall have received a Joinder Agreement executed
by UPC in favor of Agent, together with amendments to the Information Certificate relating to UPC and Western Reman, in each case in form and substance satisfactory to Agent; 
  
 (f) Agent shall have received Uniform Commercial Code, tax, judgment and bankruptcy searches against UPC and
each of the domestic “Sellers” under the APA, with results satisfactory to Agent; 
  
 (g) Agent shall have received executed trademark, patent and copyright security agreements, as applicable, with respect to all registered
intellectual property owned by UPC, in each case in form and substance satisfactory to Agent; 
  
 (h) Agent shall have received evidence that a UCC-1 financing statement has been properly filed against UPC and Western Reman with the
Delaware Secretary of State’s office; 
  
 (i) Agent shall have received an executed amendment to the existing Pledge Agreement of June 28, 2002 among Parent, the other “Pledgors” named therein and Agent, pursuant to which all the Capital Stock of UPC and the membership
interests of Western Reman together with delivery of stock certificates and executed stock powers for UPC shall be pledged to Agent as security for the Obligations; 
  
 (j) Agent shall have received executed Deposit Account Control Agreements with respect to all bank accounts
maintained by UPC, in each case in form and substance satisfactory to Agent; 
  
 (k) Agent shall have received executed Collateral Access Agreements with respect to each leased location or processor location where UPC maintains Inventory, in each case in form and substance satisfactory to Agent;
provided, that if such Collateral Access Agreements are not received, Agent may elect to exclude (or include with appropriate Reserves) Inventory at such locations from the Borrowing Base. 
  
 (l) Agent shall have received payoff letters from any prior
lenders to the Sellers along with evidence that all liens held by such Sellers on the assets acquired by UPC have been terminated and released; 
  
 (m) Agent shall have received any existing environmental reports with respect to the real property acquired by UPC, which shall be in form
and substance satisfactory to Agent; and 
  
 (n)
Agent shall have received (i) good standing certificates as of a recent date from each jurisdiction where UPC and Western Reman is incorporated or formed, as applicable, and qualified to do business and (ii) an executed officer’s 
  

 8 

 certificate certifying and attaching (A) certified copy of UPC’s Certificate of Incorporation or
formation, as applicable, (B) bylaws or operating agreement, as applicable, (C) resolutions adopted by the board of directors of UPC and the sole stockholder of Western Reman authorizing the transactions described herein and (D) incumbency of
officers of UPC and Western Reman. 
  
 Section 3
Representations, Warranties and Covenants. In order to induce Agent and Lenders to enter into this Amendment, Borrowers represent, warrant and covenant to Agent and Lenders, upon the effectiveness of this Amendment, which representations,
warranties and covenants shall survive the execution and delivery of this Amendment that: 
  
 (a) No Default; etc. No Default or Event of Default has occurred and is continuing after giving effect to this Amendment or would
result from the execution or delivery of this Amendment or the consummation of the transactions contemplated hereby. 
  
 (b) Corporate or Limited Liability Company Power and Authority; Authorization. Each Borrower has the power and authority to execute
and deliver this Amendment and to carry out the terms and provisions of the Financing Agreements, as amended by this Amendment, to which it is a party and the execution and delivery by such Borrower of this Amendment, and the performance by such
Borrower of its obligations hereunder have been duly authorized by all requisite action by such Borrower. 
  
 (c) Execution and Delivery. Each Borrower has duly executed and delivered this Amendment. 
  
 (d) Enforceability. This Amendment and the Financing
Agreements, as amended by this Amendment, constitute the legal, valid and binding obligations of each Borrower, enforceable against each Borrower in accordance with their respective terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ right generally, and by general principles of equity. 
  
 (e) Representations and Warranties. All of the representations and warranties contained in the Financing Agreements (other than
those which speak expressly only as of a different date) are true and correct as of the date hereof after giving effect to this Amendment and the transactions contemplated hereby. 
  
 Section 4 Miscellaneous. 
  
 (a) Effect; Ratification. Borrowers acknowledge that all of the reasonable legal expenses incurred by Agent in connection herewith
shall be reimbursable under Section 9.21 of the Loan Agreement. The amendments set forth herein are effective solely for the purposes set forth herein and shall be limited precisely as written, and shall not be deemed to (i) be a consent to
any amendment, waiver or modification of any other term or condition of any Financing Agreement or (ii) prejudice any right or rights that any Lender may now have or may have in the future under or in 
  

 9 

 connection with any Financing Agreement. Each reference in the Financing Agreements to “this
Agreement”, “herein”, “hereof” and words of like import shall mean such Financing Agreement as amended hereby. This Amendment shall be construed in connection with and as part of the Financing Agreements and all terms,
conditions, representations, warranties, covenants and agreements set forth in the Financing Agreements, except as herein amended are hereby ratified and confirmed and shall remain in full force and effect. 
  
 (b) Counterparts; etc. This Amendment may be executed
in any number of counterparts, each such counterpart constituting an original but all together one and the same instrument. Delivery of an executed counterpart of this Amendment by fax shall have the same force and effect as the delivery of an
original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by fax shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or
binding effect of this Amendment. 
  
 (c)
Governing Law. This Amendment shall be deemed a Financing Agreement and shall be governed by, and construed and interpreted in accordance with the internal laws of the State of New York but excluding any principles of conflicts of law or
other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York. 
  
 Section 5 Post Closing Matters. Within thirty (30) days after the date hereof Borrowers agree (a) to execute and deliver to Agent such mortgages
and/or deeds of trust, as applicable, with respect to all real property owned by UPC, together with appropriate title insurance, surveys and related documents as Agent shall require, in each case in form and substance satisfactory to Agent and (b)
to deliver to Agent Uniform Commercial Code, tax, judgment and bankruptcy searches against Western Reman with results satisfactory to Agent. 
  
 Section 6 Subordination Agreements. Each of the Lenders authorizes Agent to enter into subordination agreements with O’Reilly Automotive, Inc.
and Autozone Parts, Inc., on behalf of such Lenders (including any and all modifications of amendments thereto), pursuant to which the Agent’s Liens on Inventory and Accounts subject to Vendor Purchase Arrangements will be subordinate to liens
of such vendors and each Lender agrees to be bound by the terns of such subordination agreements. 
  
 [Signature Pages Follow] 
  

 10 

 IN WITNESS WHEREOF, Agent, Lenders, and Borrowers have caused these presents to be duly executed as of
the day and year first above written. 
  

					
	 BORROWERS
	 	 
		
	 REMY INTERNATIONAL, INC. (f/k/a
 Delco Remy International
Inc.)
  
 M. & M. KNOPF AUTO PARTS, L.L.C.
  
 NABCO, INC.
  
 REMY REMAN, L.L.C.
  
 REMY INC. (f/k/a Delco Remy America, Inc.)
	 	 FRANKLIN POWER PRODUCTS, INC.
  
 INTERNATIONAL FUEL SYSTEMS, INC.
  
 POWRBILT PRODUCTS, INC.
  
 REMY LOGISTICS, L.L.C.
  
 WORLD WIDE AUTOMOTIVE,
L.L.C.
  
 WESTERN REMAN INDUSTRIAL, LLC

	 REMY SALES, INC. (f/k/a DR SALES, INC.)
  
 HSG I, INC.
  
 HSG II, INC.
  
 UPC ACQUISITION
CORP.
	 	  
  
 For each of the entities above, by Craig Hart,
 as Treasurer for each entity

	 	 	By:	 	 /s/ Craig Hart

	 	 	 	 	Craig Hart

  
 [Signature Page to
Amendment No. 2 to 
 Second Amended and Restated Loan and Security Agreement] 

							
	 	 	 	 	AGENT
			
	 	 	 	 	 CONGRESS FINANCIAL CORPORATION
 (Central), as
Administrative Agent and US
 Collateral Agent

				
	 	 	 	 	By:	 	 /s/Anthony Vizgirda

	 	 	 	 	Title:	 	First Vice President
		
	LENDERS	 	LENDERS
		
	THE CIT GROUP/BUSINESS CREDIT, INC.	 	WACHOVIA BANK, NATIONAL ASSOCIATION
				
	By:	 	 /s/ Carmen Caporrino

	 	By:	 	 /s/ Mark Fagnani

	Title:	 	Vice President	 	Title:	 	Executive Vice President
		
	WELLS FARGO FOOTHILL	 	GMAC BUSINESS CREDIT, LLC
				
	By:	 	 /s/ Sanat S. Amladi

	 	By:	 	 /s/ Daniel J. Manella

	Title:	 	Vice President	 	Title:	 	Senior Vice President
		
	NATIONAL CITY BANK	 	UPS CAPITAL CORPORATION
				
	By:	 	 /s/ Christopher A. Susott

	 	By:	 	 /s/ John P. Holloway

	Title:	 	Vice President	 	Title:	 	Director of Portfolio Management
			
	RZB FINANCE LLC	 	 	 	 
				
	By:	 	 /s/ Christoph Hoedl and Nicolas Moriatis

	 	 	 	 
	Title:	 	Group Vice President	 	 	 	 

  
 [Signature Page to
Amendment No. 2 to 
 Second Amended and Restated Loan and Security Agreement] 

 REAFFIRMATION OF GUARANTY  
 {U.S. Subsidiaries of Remy International, Inc. (f/k/a Delco Remy International Inc.)} 
  
 March 16, 2005 
  
 Congress Financial Corporation (Central), 
     as Agent 
 150 S. Wacker Drive 
 Chicago, Illinois 60606 
  

	 	Re:	Guaranty 

  
 Please refer to (1) the Second Amended and Restated Loan and Security Agreement dated as of April 23, 2004 (as amended, supplemented, restated or
otherwise modified from time to time, the “Loan Agreement”), by and among Remy International, Inc. (f/k/a Delco Remy International Inc.), a Delaware corporation, Remy Inc. (f/k/a Delco Remy America, Inc.), a Delaware corporation,
Remy Sales, Inc. (f/k/a DR Sales, Inc.), a Delaware corporation, Franklin Power Products, Inc., an Indiana corporation, HSG I, Inc, a Delaware corporation, HSG II, Inc, a Delaware corporation, International Fuel Systems, Inc., an Indiana
corporation, M. & M. Knopf Auto Parts, L.L.C., a Delaware limited liability company, Nabco, Inc., a Michigan corporation, Powrbilt Products, Inc., a Texas corporation, Remy Logistics, L.L.C., a Delaware limited liability company, Remy Reman,
L.L.C., a Delaware limited liability company, Western Reman Industrial, LLC, a Delaware limited liability company, World Wide Automotive, L.L.C., a Virginia limited liability company, UPC Acquisition Corp., a Delaware corporation (to be renamed Unit
Parts Company, “UPC”) (each individually a “Borrower” and collectively, “Borrowers”), Congress Financial Corporation (Central), an Illinois corporation, as agent for Lenders referenced below (in such
capacity and as US Collateral Agent, “Agent”), the financial institutions (each individually, a “Lender” and collectively, “Lenders”) which are party thereto (capitalized terms used and not defined
herein shall have the meanings assigned to them in the Loan Agreement) and (2) the Guaranty dated June 28, 2002 (as amended, supplemented, restated or otherwise modified from time to time, “Guaranty”) by each of the undersigned, as
guarantors (collectively “Guarantors”), in favor of Agent. Pursuant to an Amendment No. 2 to Second Amended and Restated Loan and Security Agreement and the other Financing Agreements dated as of the date hereof (the
“Amendment”) among Agent, Lenders and Borrowers, the Financing Agreements have been amended in accordance with the terms and conditions of the Amendment. 
  
 Each Guarantor hereby (i) acknowledges and reaffirms all of its obligations and undertakings under the Guaranty, and (ii)
acknowledges and agrees that subsequent to, and taking into account all of the terms and conditions of the Amendment, the Guaranty is and shall remain in full force and effect in accordance with the terms thereof. 
  
 [Signature Page Follows] 

 IN WITNESS WHEREOF, each Guarantor has executed and delivered this Reaffirmation of Guaranty as of the
day and year first above written. 
  

					
	 REMY INTERNATIONAL, INC.
 (f/k/a Delco Remy International
Inc.)
  
 M. & M. KNOPF AUTO PARTS, L.L.C.
  
 NABCO, INC.
  
 REMY REMAN, L.L.C.
  
 REMY INC. (f/k/a Delco Remy America, Inc.)
  
 REMY SALES, INC. (f/k/a DR SALES, INC.)
  
 HSG I, INC.
  
 HSG II, INC.
  
 UPC ACQUISITION CORP.

 
 FRANKLIN POWER PRODUCTS, INC.
  
 INTERNATIONAL FUEL SYSTEMS, INC.
  
 POWRBILT PRODUCTS, INC.
  
 REMY LOGISTICS, L.L.C.
  
 WORLD WIDE AUTOMOTIVE, L.L.C.
  
 WESTERN REMAN INDUSTRIAL, LLC
	 	 BALLANTRAE CORPORATION, a
 Delaware
corporation
  
 REMAN HOLDINGS, L.L.C., a Delaware
 limited liability company
  
 REMY KOREA HOLDINGS, L.L.C., a
 Delaware limited liability company
  
 REMY INTERNATIONAL HOLDINGS, INC.
 (f/k/a Remy International, Inc.), a
 Delaware corporation
  
 REMY POWERTRAIN, L.P., a Delaware
 limited partnership, by its general partner
  
 HSG I, Inc., a Delaware corporation
  
 MARINE CORPORATION OF AMERICA, an
 Indiana corporation
  
 REMY LOGISTICS, L.L.C., a Delaware
 limited liability company
  
 POWER INVESTMENTS, INC., an
 Indiana corporation
  
 POWER INVESTMENTS MARINE,
 INC., a New Jersey
corporation

		
	 	 	 For each of the entities above, by Craig
 Hart, as Treasurer for each entity

			
	 	 	By:	 	 /s/ Craig Hart

	 	 	 	 	Craig Hart

  
 [Signature Page to
the Reaffirmation of Guarantee] 

 REAFFIRMATION OF GUARANTY  
 {Remy International, Inc. (f/k/a Delco Remy International Inc.)} 
  
 March 16, 2005 
  
 Congress Financial Corporation (Central), 
     as Agent 
 150 S. Wacker Drive 
 Chicago, Illinois 60606 
  

	 	Re:	Guaranty 

  
 Please refer to (1) the Second Amended and Restated Loan and Security Agreement dated as of April 23, 2004 (as amended, supplemented, restated or otherwise modified from time to time, the “Loan
Agreement”), by and among Remy International, Inc. (f/k/a Delco Remy International Inc.), a Delaware corporation, Remy Inc. (f/k/a Delco Remy America, Inc.), a Delaware corporation, Remy Sales, Inc. (f/k/a DR Sales, Inc.), a Delaware
corporation, Franklin Power Products, Inc., an Indiana corporation, HSG I, Inc, a Delaware corporation, HSG II, Inc, a Delaware corporation, International Fuel Systems, Inc., an Indiana corporation, M. & M. Knopf Auto Parts, L.L.C., a Delaware
limited liability company, Nabco, Inc., a Michigan corporation, Powrbilt Products, Inc., a Texas corporation, Remy Logistics, L.L.C., a Delaware limited liability company, Remy Reman, L.L.C., a Delaware limited liability company, Western Reman
Industrial, LLC, a Delaware limited liability company, World Wide Automotive, L.L.C., a Virginia limited liability company, UPC Acquisition Corp., a Delaware corporation (to be renamed Unit Parts Company, “UPC”) (each individually a
“Borrower” and collectively, “Borrowers”), Congress Financial Corporation (Central), an Illinois corporation, as agent for Lenders referenced below (in such capacity and as US Collateral Agent,
“Agent”), the financial institutions (each individually, a “Lender” and collectively, “Lenders”) which are party thereto (capitalized terms used and not defined herein shall have the meanings
assigned to them in the Loan Agreement) and (2) the Guaranty dated June 28, 2002 (“Guaranty”) by the undersigned, as guarantor (“Guarantor”), in favor of Agent. Pursuant to an Amendment No. 2 to Second Amended and
Restated Loan and Security Agreement and the other Financing Agreements dated as of the date hereof (the “Amendment”) among Agent, Lenders and Borrowers, the Financing Agreements have been amended in accordance with the terms and
conditions of the Amendment. 
  
 Guarantor hereby (i) acknowledges
and reaffirms all of its obligations and undertakings under the Guaranty, and (ii) acknowledges and agrees that subsequent to, and taking into account all of the terms and conditions of the Amendment, the Guaranty is and shall remain in full force
and effect in accordance with the terms thereof. 
  
 [Signature
Page Follows] 

 IN WITNESS WHEREOF, Guarantor has executed and delivered this Reaffirmation of Guaranty as of the day and
year first above written. 
  

			
	 REMY INTERNATIONAL, INC. (f/k/a Delco
 Remy International Inc.), a Delaware corporation

		
	By:	 	 /s/ Craig Hart

	 	 	Craig Hart
	Title:	 	Treasurer

  
 [Signature
Page to the Reaffirmation of Guarantee]Executive Employment Agreement dated as of May 11, 2005

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of the 11th day of May, 2005, by and between ABC
BANCORP, a Georgia corporation (“Employer”), and JOHNNY R. MYERS, an individual resident of the State of Georgia (“Executive”). 
  

W I T N E S S E T H: 
  
 WHEREAS, Employer wishes to employ Executive as its Executive Vice
President and Regional Executive, and Executive wishes to serve in such position, on the terms and conditions set forth herein; 
  
 WHEREAS, Executive desires to be assured of a secure minimum compensation from Employer for his services over a defined term; 
  
 WHEREAS, Employer desires to assure the continued services of
Executive on behalf of Employer on an objective and impartial basis and without distraction or conflict of interest in the event of an attempt by any person or entity to obtain control of Employer; 
  
 WHEREAS, Employer desires to provide fair and reasonable benefits to
Executive on the terms and subject to the conditions set forth in this Agreement; and 
  
 WHEREAS, Employer desires reasonable protection of its confidential business and customer information which it has developed over the years at substantial expense and assurance that Executive will not compete
with Employer for a reasonable period of time after termination of his employment with Employer, except as otherwise provided herein; 
  
 NOW, THEREFORE, in consideration of these premises, the mutual covenants and undertakings herein contained, Employer and Executive, each intending
to be legally bound, covenant and agree as follows: 
  
 1.
Employment. Upon the terms and subject to the conditions set forth in this Agreement, Employer employs Executive as its Executive Vice President and Regional Executive, and Executive hereby accepts such employment. 
  
 2. Position and Duties. Executive agrees to serve as the
Executive Vice President and Regional Executive of Employer as set forth in Section 1 hereof and to perform such duties as may reasonably be assigned to him by the Board of Directors (the “Board”) or the Chief Executive Officer of
Employer; provided, however, that such duties shall be of the same character as those generally associated with the office held by Executive. Employee shall be based, and shall perform his duties, at Employer’s principal regional
executive offices, which are currently located in Moultrie, Georgia, and Employer shall not, without the written consent of Executive, relocate or transfer Executive to a location other than its principal regional executive offices. During the Term
(as hereinafter defined) of this Agreement, Executive agrees that he will serve Employer faithfully and to the best of his ability and that he will devote his full 

 business time, attention and skills to Employer’s business; provided, however, that the foregoing
shall not be deemed to restrict Executive from devoting a reasonable amount of time and attention to the management of his personal affairs and investments, so long as such activities do not interfere with the responsible performance of
Executive’s duties hereunder; and provided further, however, that Executive may serve as a director or officer of any charitable, religious, civic, educational, or trade organizations to the extent that such activities,
individually or in the aggregate, do not interfere with the performance of Executive’s duties and responsibilities under this Agreement. 
  
 3. Term. The term of Executive’s employment under this Agreement shall commence on the date hereof (the “Effective Date”),
and shall continue thereafter for a continuously (on a daily basis) renewing, one (1) year term, without any further action by either Employer or Executive, unless either Executive or Employer shall provide written notice to terminate to the other
parties hereto not to renew such term, specifying in such notice the date of such non-renewal, in which case this Agreement shall expire on the date that is one (1) year after the date specified in such non-renewal notice. Notwithstanding the
foregoing, this Agreement may be earlier terminated by Employer or Executive in accordance with the terms of Section 8 hereof; provided, however, that, notwithstanding any notice by Employer not to extend, the Term shall not expire
prior to the expiration of twelve (12) months after the occurrence of a Change of Control (as defined in Subsection 23(B) hereof); and provided further, however, that this Agreement shall automatically terminate (and the Term
shall thereupon end) without notice when Executive attains 65 years of age. For purposes of this Agreement, references to the “Term” of the Executive’s employment hereunder shall mean the period commencing on the Effective Date and
ending at the end of such one-year term. 
  
 4.
Compensation. 
  
 (A) Executive shall receive an annual
salary of One Hundred Forty Thousand and no/100 Dollars ($140,000.00) (“Base Compensation”) payable at regular intervals in accordance with Employer’s normal payroll practices now or hereafter in effect. Employer may consider and
declare from time to time increases in the salary it pays Executive and thereby increase the Base Compensation. Any and all increases in Executive’s salary pursuant to this Section 4(A) shall cause the level of Base Compensation to be increased
by the amount of each such increase for purposes of this Agreement. The increased level of Base Compensation as provided in this Section 4(A) shall become the level of Base Compensation for the remainder of the Term until there is a further increase
in Base Compensation as provided herein. 
  
 (B) In addition to
his Base Compensation, Executive shall be awarded, during each calendar year during the Term hereof, an annual bonus (an “Annual Bonus”) either pursuant to a bonus or incentive plan of Employer or otherwise on terms no less favorable than
those awarded to other executive officers of Employer. 
  
 5.
Other Benefits. So long as Executive is employed by Employer pursuant to this Agreement, he shall be included as a participant in all present and future employee benefit, retirement and compensation plans of Employer generally available
to its employees, consistent with his Base Compensation and his position with Employer, including, without limitation, 
  

 2 

 Employer’s 401(k) Profit Sharing Plan, and Executive and his dependents shall be included in Employer’s
hospitalization, major medical, disability and group life insurance plans. Executive acknowledges that, notwithstanding any of the provisions of this Agreement, any of Employer’s benefit plans and programs may be modified from time to time and
that Employer is not required to continue any plan or program currently in effect or adopted hereafter; provided, however, that each of the above benefits shall continue in effect on terms no less favorable than those for other
executive officers of Employer (as permitted by law) during the Term hereof. 
  
 6. Expenses. So long as Executive is employed by Employer pursuant to this Agreement, Executive shall receive reimbursement from Employer for all reasonable business expenses incurred in the course of
his employment by Employer upon proper submission to Employer of written vouchers and statements for reimbursement. In addition, Employer shall (A) provide to Executive an automobile and pay for all costs associated therewith during the Term hereof,
and (B) reimburse Executive for all mileage driven by Executive in his personal automobile in connection with his duties hereunder in accordance with Employer’s mileage reimbursement policy as in effect from time to time. Employer shall also
use its reasonable best efforts to provide to Executive a country club membership for business and personal use and shall pay for all initiation fees and monthly dues related thereto for business purposes; provided, however, that, if
such membership is not already owned by Executive as of the date hereof, then such membership shall be and remain the sole property of Employer. 
  
 7. Vacation. Executive shall be entitled to four (4) weeks paid vacation during each calendar year of Executive’s employment hereunder.

  
 8. Termination. Subject to the respective
continuing obligations of the parties hereto, including, without limitation, those set forth in Subsections 10(A), 10(B), 10(C) and 10(D) hereof, Executive’s employment by Employer hereunder may be terminated prior to the expiration of the Term
hereof as follows: 
  
 (A) Employer, by action of the Board and
upon written notice to Executive, may terminate Executive’s employment with Employer immediately for cause. For purposes of this Subsection 8(A), “cause” for termination of Executive’s employment shall exist (a) if Executive is
convicted of (from which no appeal may be taken), or pleads guilty or nolo contendere to, any act of fraud, misappropriation or embezzlement, or any felony, (b) if, in the determination of the Board, Executive has engaged in gross or willful
misconduct materially damaging to the business of Employer (it being understood, however, that neither conduct pursuant to Executive’s exercise of his good faith business judgment nor unintentional physical damage to any property of Employer by
Executive shall be a ground for such a determination by the Board), or (c) if Executive has failed, without reasonable cause, to follow reasonable written instructions of the Board consistent with Executive’s position with Employer and, after
written notice from the Board of such failure, Executive at any time thereafter again so fails. 
  

 3 

 (B) Executive, by written notice to Employer, may terminate his employment with Employer immediately for
good reason. For purposes of this Subsection 8(B), “good reason” for termination shall mean a good faith determination by Executive, in Executive’s sole and absolute judgment, that any one or more of the following events has occurred,
without Executive’s express written consent: 
  
 (1) after a Change of Control, a change in Executive’s reporting responsibilities, titles or offices as in effect immediately prior to the Change of Control, or any removal of Executive from, or any failure to re-elect Executive to,
any of Executive’s positions that he held immediately prior to the Change of Control, which has the effect of diminishing Executive’s responsibility or authority; 
  
 (2) after a Change of Control, a reduction by Employer in Executive’s Base Compensation as in effect
immediately prior to the Change of Control or as the same may be increased from time to time or a change in the eligibility requirements or performance criteria under any bonus, incentive or compensation plan, program or arrangement under which
Executive is covered immediately prior to the Change of Control which adversely affects Executive; 
  
 (3) at the time of a Change of Control, Employer requires Executive to be based anywhere other than within a fifty (50) mile radius of
Moultrie, Georgia or Employer’s principal regional executive offices; 
  
 (4) after a Change of Control and without replacement by a plan providing benefits to Executive substantially equal to or greater than those discontinued, the failure by Employer to continue in effect, within its
maximum stated term, any pension, bonus, incentive, stock ownership, purchase, option, life insurance, health, accident, disability, or any other employee benefit plan, program or arrangement in which Executive is participating at the time of the
Change of Control, or the taking of any action by Employer after a Change of Control that would adversely affect Executive’s participation or materially reduce Executive’s benefits under any of such plans; 
  
 (5) after a Change of Control, the taking of any action by
Employer that would materially adversely affect the physical conditions existing at the time of the Change of Control in or under which Executive performs his employment duties, provided that Employer may take action with respect to such
conditions after a Change of Control so long as such conditions are at least commensurate with the conditions in or under which an officer of Executive’s status would customarily perform his employment duties; or 
  
 (6) after a Change of Control, a material change in the
fundamental business philosophy, direction and precepts of Employer and its subsidiaries, considered as a whole, as the same existed prior to the Change of Control. 
  
 Any event described in Subsection 8(B)(1) through (6) hereof which occurs prior to a Change of Control but which Executive reasonably
demonstrates (x) was at the request of a third party who has indicated an intention, or taken steps reasonably calculated, to effect a Change of Control or (y) otherwise arose in connection with, or in anticipation of, a Change of Control which
actually occurs, shall constitute good reason for purposes hereof, notwithstanding that it occurred prior to a Change of Control. 
  

 4 

 (C) Executive, upon ninety (90) days written notice to Employer, may terminate his employment with
Employer without good reason. 
  
 (D) Employer, upon ninety (90)
days written notice to Executive, may terminate Executive’s employment with Employer without cause. 
  
 (E) Executive’s employment with Employer shall terminate in the event of Executive’s death or disability. For purposes of this Agreement,
“disability” shall be defined as Executive’s inability by reason of illness or other physical or mental incapacity to perform the duties required by his employment for any consecutive one hundred eighty (180) day period. 

 
 9. Compensation Upon Termination. In the event of
termination of Executive’s employment with Employer pursuant to Section 8 hereof, compensation shall continue to be paid by Employer to Executive as follows: 
  
 (A) In the event of a termination pursuant to Subsection 8(A) or Subsection 8(C) hereof, compensation provided for herein
(including, without limitation, Base Compensation and an Annual Bonus) shall continue to be paid, and Executive shall continue to participate in the employee benefit, retirement, compensation plans and other perquisites as provided in Section 5
hereof, through and including the Date of Termination (as hereinafter defined) specified in the Notice of Termination (as hereinafter defined). Any benefits payable under insurance, health, retirement and bonus plans as a result of Executive’s
participation in such plans through the Date of Termination specified in the Notice of Termination shall be paid when due under such plans. 
  
 (B) In the event of a termination pursuant to Subsection 8(B) or Subsection 8(D) hereof, compensation provided for herein (including, without limitation,
Base Compensation and an Annual Bonus) shall continue to be paid, and Executive shall continue to participate in the employee benefit, retirement, compensation plans and other perquisites as provided in Section 5 hereof, through the Date of
Termination specified in the Notice of Termination, and any benefits payable under insurance, health, retirement and bonus plans as a result of Executive’s participation in such plans through the Date of Termination specified in the Notice of
Termination shall be paid when due under such plans. In addition, if the event of termination pursuant to Subsection 8(B) hereof occurs within twelve (12) months after the date of a Change of Control, then, subject to the terms of Section 12 hereof,
(1) Executive shall be entitled to continue to receive from Employer for one (1) additional 12-month period his Base Compensation at the rates in effect at the time of termination plus an Annual Bonus in accordance with the Company’s Incentive
Plan as of the date of the event of termination, payable in accordance with Employer’s standard payment practices then existing; (2) Executive shall be entitled to continue to participate for one (1) additional 12-month period in each employee
welfare benefit plan (as such term is defined in the Employment Retirement Income Security Act of 1974, as amended) in which Executive was entitled to participate immediately prior to the date of his termination, unless an essentially equivalent and
no less favorable benefit is provided by a subsequent employer of Executive, provided that if the terms of any such employee welfare 
  

 5 

 benefit plan or applicable laws do not permit continued participation by Executive, Employer will arrange to provide to
Executive a benefit substantially similar to, and no less favorable than, the benefit he was entitled to receive under such plan at the end of the period of coverage; (3) Employer shall contribute the maximum contributions allowable under
Employer’s 401(k) Profit Sharing Plan, or any successor plans thereto, for the benefit of Executive; and (4) Executive shall be entitled to receive payment from Employer for reasonable relocation expenses if Executive relocates within five
hundred (500) miles of his job location at the time of such Change of Control if such relocation occurs within one hundred eighty (180) days after the Date of Termination specified in the Notice of Termination. 
  
 (C) In the event of a termination pursuant to Subsection 8(E) hereof,
compensation provided for herein (including, without limitation, Base Compensation and an Annual Bonus) shall continue to be paid, and Executive shall continue to participate in the employee benefit, retirement, and compensation plans and other
perquisites as provided in Section 5 hereof, (1) in the event of Executive’s death, through the date of death, or (2) in the event of Executive’s disability, through the Date of Termination specified in the Notice of Termination. Any
benefits payable under insurance, health, retirement and bonus plans as a result of Executive’s participation in such plans through the date of death or the Date of Termination specified in the Notice of Termination, as the case may be, shall
be paid when due under those plans. 
  
 (D) Employer will permit
Executive or his personal representative(s) or heirs, during a period of ninety (90) days following the Date of Termination of Executive’s employment by Employer (as specified in the Notice of Termination) for the reasons set forth in
Subsection 8(B) or Subsection 8(D) hereof, to purchase all of the stock of Employer that would be issuable under all outstanding stock options, if any, previously granted by Employer to Executive under any Employer stock option plan then in effect,
whether or not such options are then exercisable, at a cash purchase price equal to the purchase price as set forth in such outstanding stock options. 
  
 10. Restrictive Covenants. 
  
 (A) Executive acknowledges that (1) Employer has separately bargained and paid additional consideration for the restrictive covenants herein; and (2)
Employer will provide certain benefits to Executive hereunder in reliance on such covenants in view of the unique and essential nature of the services Executive will perform on behalf of Employer and the irreparable injury that would befall Employer
should Executive breach such covenants. 
  
 (B) Executive further
acknowledges that his services are of a special, unique and extraordinary character and that his position with Employer will place him in a position of confidence and trust with employees of Employer and its subsidiaries and affiliates and with
Employer’s other constituencies and will allow him access to trade secrets and confidential information concerning Employer and its subsidiaries and affiliates. 
  
 (C) Executive further acknowledges that the type and periods of restrictions imposed by the covenants in this Section 10 are
fair and reasonable and that such restrictions will not prevent Executive from earning a livelihood. 
  

 6 

 (D) Having acknowledged the foregoing, Executive covenants and agrees with Employer as follows:

  
 (1) For a period of two (2) years after the
termination of Executive’s employment by Employer for any reason or for no reason, Executive shall not divulge or furnish any confidential information of Employer acquired by him while employed by Employer to any person, firm or corporation,
other than to Employer or upon its written request, or use any such confidential information (which shall at all times remain the property of Employer) directly or indirectly for Executive’ own benefit or for the benefit of any person, firm or
corporation other than Employer. For purposes hereof, the term “confidential information” means data and information relating to the Banking Business (as hereinafter defined) (which does not rise to the status of a Trade Secret, as such
term is defined in Section 10-1-761 of the Official Code of Georgia Annotated) which is or has been disclosed to Executive or of which Executive became aware as a consequence of or through Executive’s relationship to Employer and which has
value to Employer and is not generally known to its competitors. Without limiting the foregoing, “confidential information” shall include: (a) all items of information that could be classified as a Trade Secret pursuant to Georgia law; (b)
the names, addresses and banking requirements of the customers of Employer or its subsidiaries and the nature and amount of business done with such customers; (c) the names and addresses of employees and other business contacts of Employer or its
subsidiaries; (d) the particular names, methods and procedures utilized by Employer or its subsidiaries in the conduct and advertising of their business; (e) application, operating system, communication and other computer software and derivatives
thereof, including, without limitation, sources and object codes, flow charts, coding sheets, routines, subrouting and related documentation and manuals of Employer or its subsidiaries; and (f) marketing techniques, purchasing information, pricing
policies, loan policies, quoting procedures, financial information, customer data and other materials or information relating to Employer’s or its subsidiaries’ manner of doing business. Confidential information shall not include any data
or information that has been voluntarily disclosed to the public by Employer (except where such public disclosure has been made by Executive without authorization) or that has been independently developed and disclosed by others, or that otherwise
enters the public domain through lawful means. 
  
 (2) Executive hereby agrees that he will not directly or indirectly disclose to anyone, or use or otherwise exploit for his own benefit or for the benefit of anyone other than Employer and its subsidiaries any trade secrets (as defined in
§10-1-761 of the Official Code of Georgia Annotated and applicable code sections for any states where Employer has business locations) of Employer for as long as they remain trade secrets. 
  
 (3) While Executive is employed by Employer and for a period
of one (1) year after termination of Executive’s employment pursuant to Subsection 8(A), 8(C) or 8(E) hereof, Executive shall not (except on behalf of or with the prior written consent of Employer), on Executive’s own behalf or in the
service or on behalf of others, solicit, divert or appropriate, or attempt to solicit, divert or appropriate, directly or by assisting others, any Banking Business from any of the customers of Employer or its subsidiaries, 
  

 7 

 including actively sought prospective customers, with whom Executive has or had material contact during
the last two (2) years of Executive’s employment, for purposes of providing products or services that are competitive with those provided by Employer or its subsidiaries. The term “Banking Business” shall mean the business conducted
by Employer and its subsidiaries, which is the business of banking, including the solicitation of time and demand deposits and the making of residential, consumer, commercial and corporate loans. 
  
 (4) While Executive is employed by Employer and for a period
of one (1) year after termination of Executive’s employment pursuant to Subsection 8(A), 8(C) or 8(E) hereof, Executive shall not, either directly or indirectly, on his own behalf or in the service or on behalf of others, as an executive
employee or in any other capacity which involves duties and responsibilities similar to those undertaken for Employer, engage in any business which is the same as or essentially the same as the Banking Business within a fifty (50) mile radius of
Moultrie, Georgia or Employer’s principal regional executive offices. 
  
 (5) While Executive is employed by Employer and for a period of one (1) year after termination of Executive’s employment pursuant to Subsection 8(A), 8(C) or 8(E) hereof, Executive will not on Executive’s
own behalf or in the service or on behalf of others, solicit, recruit or hire away, or attempt to solicit, recruit or hire away, directly or by assisting others, any employee of Employer or its subsidiaries, whether or not such employee is a
full-time employee or a temporary employee of Employer or its subsidiaries and whether or not such employment is pursuant to a written agreement and whether or not such employment is for a determined period or is at will. 
  
 (6) If Executive’s employment is terminated pursuant to
Subsection 8(A), 8(C) or 8(E) hereof, and Executive subsequently (a) solicits, diverts or appropriates, or attempts to solicit, divert or appropriate, directly or by assisting others, on Executive’s own behalf or in the service or on behalf of
others, any Banking Business from any of the customers of Employer or its subsidiaries, including actively sought prospective customers, with whom Executive has or had material contact during the last two (2) years of Executive’s employment,
for purposes of providing products or services that are competitive with those provided by Employer or its subsidiaries, (b) engages, either directly or indirectly, on his own behalf or in the service or on behalf of others, as an executive employee
or in any other capacity which involves duties and responsibilities similar to those undertaken for Employer, in any business which is the same as or essentially the same as the Banking Business within a fifty (50) mile radius of Moultrie, Georgia
or Employer’s principal regional executive offices, or (c) solicits, recruits or hires away, or attempts to solicit, recruit or hire away, directly or by assisting others, on Executive’s own behalf or in the service or on behalf of others,
any employee of Employer or its subsidiaries, whether or not such employee is a full-time employee or a temporary employee of Employer or its subsidiaries and whether or not such employment is pursuant to written agreement and whether or not such
employment is for a determined period or is at will, then, in addition to any other remedies available to Employer hereunder, Employer may immediately terminate and shall not be required to continue on 
  

 8 

 behalf of the Executive or his dependents and beneficiaries any compensation provided for herein
(including, without limitation, Base Compensation and any Annual Bonus) and any employee benefit, retirement and compensation plans and other prerequisites provided in Section 5 hereof other than those benefits that Employer may be required to
maintain for Executive under applicable federal or state law. 
  
 (7) If Executive’s employment is terminated pursuant to Subsection 8(B) or Subsection 8(D) hereof, then Executive may thereafter (a) solicit, divert or appropriate, or attempt to solicit, divert or appropriate,
directly or by assisting others, on Executive’s own behalf or in the service or on behalf of others, any Banking Business from any of the customers of Employer or its subsidiaries, including actively sought prospective customers, with whom
Executive has or had material contact during the last two (2) years of Executive’s employment, for purposes of providing products or services that are competitive with those provided by Employer or its subsidiaries, (b) engage, either directly
or indirectly, on his own behalf or in the service or on behalf of others, as an executive employee or in any other capacity which involves duties and responsibilities similar to those undertaken for Employer, in any business which is the same as or
essentially the same as the Banking Business within a fifty (50) mile radius of Moultrie, Georgia or Employer’s principal regional executive offices, or (c) solicit, recruit or hire away, or attempt to solicit, recruit or hire away, directly or
by assisting others, on Executive’s own behalf or in the service or on behalf of others, any employee of Employer or its subsidiaries, whether or not such employee is a full-time employee or a temporary employee of Employer or its subsidiaries
and whether or not such employment is pursuant to a written agreement and whether or not such employment is for a determined period or is at will; provided, however, that if Executive engages in the activities described in clause (a),
(b) or (c) of this Subsection 10(D)(7), then Employer may immediately terminate and shall not be required to continue on behalf of Executive or his dependents and beneficiaries any compensation provided for herein (including, without limitation,
Base Compensation, any Annual Bonus and any payments pursuant to Subsection 9(B) hereof) and any employee benefit, retirement and compensation plans and other perquisites provided in Section 5 hereof other than those benefits that Employer may be
required to maintain for Executive under applicable federal or state law. 
  
 (8) If Executive’s employment by Employer is terminated for any reason or for no reason, Executive will turn over immediately thereafter to Employer all business correspondence, letters, papers, reports, customer
lists, financial statements, credit reports or other confidential information or documents of Employer in the possession or control of Executive, all of which writings are and will continue to be the sole and exclusive property of Employer.

  
 (E) Executive acknowledges that irreparable loss and injury
would result to Employer upon the breach of any of the covenants contained in this Section 10 and that damages arising out of such breach would be difficult to ascertain. Executive hereby agrees that, in addition to all other remedies provided at
law or in equity, Employer may petition and obtain from a court of law or equity, without the necessity of proving actual damages and without posting any bond or other security, both temporary and permanent injunctive relief to prevent a breach by
Executive 
  

 9 

 of any covenant contained in this Section 10, and shall be entitled to an equitable accounting of all earnings, profits
and other benefits arising out of any such breach. In the event that the provisions of this Section 10 should ever be deemed to exceed the time, geographic or any other limitations permitted by applicable law, then such provisions shall be deemed
reformed to the maximum extent permitted thereby. 
  
 11.
Notice of Termination and Date of Termination. Any termination of Executive’s employment with Employer as contemplated by Section 8 hereof, except in the circumstances of Executive’s death, shall be communicated by written
notice of termination (the “Notice of Termination”) by the terminating party to the other party hereto. Any Notice of Termination given pursuant to Subsections 8(A), 8(B) or 8(E) hereof shall indicate the specific provisions of this
Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for such termination. Any Notice of Termination given pursuant to Subsections 8(C) or 8(D) hereof shall indicate the provision of
this Agreement relied upon, but need not state any basis for such termination. For purposes of this Agreement, “Date of Termination” shall mean: (A) if Executive’s employment is terminated because of disability, thirty (30) days after
Notice of Termination is given (unless Executive shall have returned to the performance of Executive’s duties on a full-time basis during such thirty (30) day period); or (B) if Executive’s employment is terminated for cause, good reason
or pursuant to Subsection 8(C) or Subsection 8(D) hereof, the date specified in the Notice of Termination; provided, however, that if within thirty (30) days after any such Notice of Termination is given, the party receiving such
Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be the date on which the dispute is finally resolved, either by mutual agreement of the parties or by a final judgment,
order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected). 
  
 12. Excess Parachute Payments and One Million Dollar Deduction Limit. 
  
 (A) Notwithstanding anything contained herein to the contrary, if any portion of the payments and benefits provided
hereunder and benefits provided to, or for the benefit of, Executive under any other plan or agreement of Employer (such payments or benefits are collectively referred to as the “Payments”) would be subject to the excise tax (the
“Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or would be nondeductible by Employer pursuant to Section 280G of the Code, the Payments shall be reduced (but not below
zero) if and to the extent necessary so that no portion of any Payment to be made or benefit to be provided to Executive shall be subject to the Excise Tax or shall be nondeductible by Employer pursuant to Section 280G of the Code (such reduced
amount is hereinafter referred to as the “Limited Payment Amount”). Unless Executive shall have given prior written notice specifying a different order to Employer to effectuate the Limited Payment Amount, Employer shall reduce or
eliminate the Payments, by first reducing or eliminating those payments or benefits which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be
paid the farthest in time from the Determination (as hereinafter defined). Any notice given by Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing
Executive’s rights and entitlements to any benefits or compensation. 
  

 10 

 (B) An initial determination as to whether the Payments shall be reduced to the Limited Payment Amount
pursuant to the Code and the amount of such Limited Payment Amount shall be made by an accounting firm at Employer’s expense selected by Employer which is designated as one of the four largest accounting firms in the United States (the
“Accounting Firm”). The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations and documentation to Employer and Executive within thirty (30) days of the Termination
Date, if applicable, and if the Accounting Firm determines that no Excise Tax is payable by Executive with respect to a Payment or Payments, it shall furnish Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be
imposed with respect to any such Payment or Payments. Within ten (10) days of the delivery of the Determination to Executive, Executive shall have the right to dispute the Determination (the “Dispute”). If there is no Dispute, the
Determination shall be binding, final and conclusive upon Employer and Executive subject to the application of Subsection 12(C) below. 
  
 (C) As a result of the uncertainty in the application of Sections 4999 and 280G of the Code, it is possible that the Payments to be made to, or provided
for the benefit of, Executive either have been made or will not be made by Employer which, in either case, will be inconsistent with the limitations provided in Section 12(A) hereof (hereinafter referred to as an “Excess Payment” or
“Underpayment”, respectively). If it is established pursuant to a final determination of a court or an Internal Revenue Service (the “IRS”) proceeding which has been finally and conclusively resolved that an Excess Payment has
been made, such Excess Payment shall be deemed for all purposes to be a loan to Executive made on the date Executive received the Excess Payment, and Executive shall repay the Excess Payment to Employer on demand (but not less than ten (10) days
after written notice is received by Executive), together with interest on the Excess Payment at the “Applicable Federal Rate” (as defined in Section 1274(d) of the Code) from the date of Executive’s receipt of such Excess Payment
until the date of such repayment. In the event that it is determined (1) by the Accounting Firm, Employer (which shall include the position taken by Employer, or together with its consolidated group, on its federal income tax return) or the IRS; (2)
pursuant to a determination by a court; or (3) upon the resolution of the Dispute to Executive’s satisfaction, that an Underpayment has occurred, Employer shall pay an amount equal to the Underpayment to Executive within ten (10) days of such
determination or resolution, together with interest on such amount at the Applicable Federal Rate from the date such amount would have been paid to Executive until the date of payment. 
  
 (D) Notwithstanding anything contained herein to the contrary, if any portion of the Payments would be nondeductible by
Employer pursuant to Section 162(m) of the Code, the Payments to be made to Executive in any taxable year of Employer shall be reduced (but not below zero) if and to the extent necessary so that no portion of any Payment to be made or benefit to be
provided to Executive in such taxable year of Employer shall be nondeductible by Employer pursuant to Section 162(m) of the Code. The amount by which any Payment is reduced pursuant to the immediately preceding sentence, together with interest
thereon at the Applicable Federal Rate, shall be paid by Employer to Executive on or before the fifth business 
  

 11 

 day of the immediately succeeding taxable year of Employer, subject to the application of the limitations of the
immediately preceding sentence and this Section 12. Unless Executive shall have given prior written notice specifying a different order to Employer to effectuate this Section 12, Employer shall reduce or eliminate the Payments in any one taxable
year of Employer by first reducing or eliminating those payments or benefits which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the
farthest in time from the Section 162(m) Determination (as hereinafter defined). Any notice given by Executive pursuant to the immediately preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement
governing Executive’s rights and entitlements to any benefits or compensation. 
  
 (E) The determination as to whether the Payments shall be reduced pursuant to Section 12(D) hereof and the amount of the Payments to be made in each taxable year after the application of Section 12(D) hereof shall be
made by the Accounting Firm at Employer’s expense. The Accounting Firm shall provide its determination (the “Section 162(m) Determination”), together with detailed supporting calculations and documentation to Employer and Executive
within thirty (30) days of the termination date specified in the Notice of Termination. The Section 162(m) Determination shall be binding, final and conclusive upon Employer and Executive. 
  
 13. Payments After Death. Should Executive die after
termination of his employment with Employer while any amounts are payable to him hereunder, this Agreement shall inure to the benefit of and be enforceable by Executive’s executors, administrators, heirs, distributees, devisees and legatees,
and all amounts payable hereunder shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee or, if there is no such designee, to his estate. 
  
 14. Full Settlement. The respective obligations of the parties
hereto to make payments or otherwise to perform hereunder shall not be affected by any rights of set-off, counterclaim, recoupment, defense or other claim, right or action which one party hereto may have against the other party hereto. In no event
shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts which may be payable to Executive by Employer hereunder. 
  
 15. Notices. For purposes of this Agreement, notices and all other communications provided for herein shall be
in writing and shall be deemed to have been given when delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	           If to Executive:
	 	 Johnny R. Myers

	 	 	 Holly Cove Apartments

	 	 	 Apt. # W-2

	 	 	 2809 5th Street, S. E.

	 	 	 Moultrie, Georgia 31768

  

 12 

			
	           If to Employer:
	 	 ABC Bancorp

	 	 	 24 Second Avenue, S.E.

	 	 	 Moultrie, Georgia 31768

	 	 	 Attention: Chief Executive Officer

  
 or to such address as either party
hereto may have furnished to the other party in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  

16. Governing Law. The validity, interpretation and performance of this Agreement shall be governed by the laws of the State of Georgia,
without giving effect to the conflicts of laws principles thereof. 
  
 17. Successors. Employer shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of Employer, by agreement in form and
substance reasonably satisfactory to Executive, to expressly assume and agree to perform this Agreement in the same manner and same extent that Employer would be required to perform it if no such succession had taken place. Failure of Employer to
obtain such agreement prior to the effectiveness of any such succession shall be a material, intentional breach of this Agreement and shall entitle Executive to terminate his employment with Employer for good reason pursuant to Subsection 8(B)
hereof. All references to Employer in this Agreement shall include, unless the context otherwise requires, all subsidiaries and controlled affiliates of Employer. 
  
 18. Modification and Waiver. No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing signed by Executive and Employer. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of dissimilar provisions or conditions at the same or any prior subsequent time. No agreements or representation, oral or otherwise, express or implied, with respect to the subject matter
hereof have been made by either party which are not set forth expressly in this Agreement. 
  
 19. Severability. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement, which shall remain in
full force and effect. 
  
 20. Counterparts. This
Agreement may be executed (and delivered via facsimile) in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same Agreement. 
  
 21. Assignment. This Agreement is personal in nature, and
neither party hereto shall, without the prior written consent of the other, assign or transfer this Agreement or any rights or obligations hereunder except as provided in Sections 13 and 17 above. Without limiting the foregoing, Executive’s
right to receive compensation hereunder shall not be assignable or transferable, whether by pledge, creation of a security interest or otherwise, other than a transfer by his will or by the laws of descent or distribution as set forth in Section 13
hereof, and in the event of any attempted assignment or transfer contrary to this Section 21, Employer shall have no liability to pay any amounts so attempted to be assigned or transferred. 
  

 13 

 22. Entire Agreement. This Agreement constitutes the entire agreement between the parties
hereto and supersedes all prior agreements, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof. 
  
 23. Construction; Definition of Change of Control. 
  
 (A) Whenever the singular number is used in this Agreement and when required
by the context, the same shall include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa. The headings in this Agreement are for convenience only and are in no way intended to describe,
interpret, define or limit the scope, extent or intent of this Agreement or any of its provisions. All references to Employer in this Agreement shall include, unless the context otherwise requires, all subsidiaries and controlled affiliates of
Employer. 
  
 (B) For purposes of this Agreement, a “Change
of Control” shall have occurred if: 
  
 (1) a
majority of the directors of Employer shall be persons other than persons: (a) for whose election proxies shall have been solicited by the Board, or (b) who are then serving as directors appointed by the Board to fill vacancies on the Board caused
by death or resignation (but not by removal) or to fill newly-created directorships; 
  
 (2) twenty-five percent (25%) of the outstanding voting power of Employer shall have been acquired or beneficially owned (as defined in
Rule 13d-3 under the Securities Exchange Act of 1934, as amended, or any successor rule thereto) by any person (other than Employer, a subsidiary of Employer or Executive) or by any two or more persons acting as a partnership, limited partnership,
syndicate or other group acting in concert for the purpose of acquiring, holding or disposing of any voting stock of Employer (hereinafter a “Group”), which Group does not include Executive; or 
  
 (3) there shall have occurred: 
  
 (a) a merger or consolidation of Employer with or into
another corporation (other than (i) a merger or consolidation with a subsidiary of Employer or (ii) a merger or consolidation in which (aa) the holders of voting stock of Employer immediately prior to the merger as a class continue to hold
immediately after the merger at least a majority of all outstanding voting power of the surviving or resulting corporation or its parent and (bb) all holders of each outstanding class or series of voting stock of Employer immediately prior to the
merger or consolidation have the right to receive substantially the same cash, securities or other property in exchange for their voting stock of Employer as all other holders of such class or series); 
  

 14 

 (b) a statutory exchange of shares of one or more classes or series of outstanding voting
stock of Employer for cash, securities or other property; 
  
 (c) the sale or other disposition of all or substantially all of the assets of Employer (in one transaction or a series of transactions); or 
  
 (d) the liquidation or dissolution of Employer; 
  
 unless twenty-five percent (25%) or more of the voting stock (or the voting equity interest)
of the surviving corporation or the corporation or other entity acquiring all or substantially all of the assets of Employer (in the case of a merger, consolidation or disposition of assets) or of Employer or its resulting parent corporation (in the
case of a statutory share exchange) is beneficially owned by the Executive or a Group that includes the Executive. 
  
 24. Compliance with Code Section 409A. Employer and Executive acknowledge and agree that (i) it is their mutual intent that no benefit
arising under this Agreement shall be subject to the provisions of Section 409A(a)(1)(B) of the Code; and (ii) notwithstanding any provision of this Agreement to the contrary, this Agreement shall be interpreted, operated and administered consistent
with this intent and any inconsistent provision of this Agreement may be modified or amended by Employer in its sole discretion and without further consent of Executive; provided, however, that Employer shall have no liability
whatsoever to Executive or any other person in the event that any benefit hereunder is determined to be subject to and not in compliance with Section 409A of the Code. In furtherance, and not limitation, of the foregoing, Employer and Executive
agree that in the event that it is determined by Employer that, as a result of Section 409A of the Code (and any related regulations or other pronouncements thereunder), any of the payments that Executive is entitled to under the terms of this
Agreement may not be made at the time contemplated by the terms thereof without causing Executive to be subject to excise tax and interest under Section 409A(1)(B) of the Code, Employer will make such payment on the first day determined to be
permissible by Employer under Section 409A of the Code without Executive incurring such a penalty. 
  
 25. Representations and Warranties of Employer. Employer hereby represents and warrants to Executive that: (i) this Agreement has been duly
authorized by the Board, executed and delivered by Employer, and constitutes the valid and binding agreement of Employer, enforceable against Employer in accordance with its terms; and (ii) Employer has the full power authority to execute, deliver
and perform this Agreement and has taken all necessary action to secure all approvals required in connection herewith. 
  
 26. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by
arbitration in Moultrie, Georgia in accordance with the commercial arbitration rules of the American Arbitration Association then in effect. The decision of the arbitrators shall be final and binding as to any matter submitted to them under this
Agreement, and judgment on any award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 
  

 15 

 27. Attorneys’ Fees. If there is any legal action, arbitration or proceeding between
Executive and the Employer arising from or based on this Agreement or the interpretation or enforcement of any provisions hereof, then the unsuccessful party to such action, arbitration or proceeding shall pay to the prevailing party all costs and
expenses, including, without limitation, reasonable attorneys’ fees, incurred by such prevailing party in such action, arbitration or proceeding, in any appeal in connection therewith and in any action or proceeding taken to enforce any
judgment or order so obtained by the prevailing party. If such prevailing party recovers a judgment in any such action, arbitration, proceeding or appeal, then such costs, expenses and attorneys’ fees shall be included in and as a part of such
judgment. 
  
 [Signatures next page] 
  

 16 

 IN WITNESS WHEREOF, Executive has executed, sealed and delivered this Agreement, and Employer has
caused this Agreement to be executed, sealed and delivered, all as of the day and year first above set forth. 
  

			
	ABC BANCORP
		
	 By:
	 	 /s/ Edwin W. Hortman,
Jr.                

	 	 	 Edwin W. Hortman, Jr., President and

	 	 	 Chief Executive Officer

  
 [Corporate Seal] 
  

			
	 Attest:
	 	         /s/ Cindi H. Lewis

	 	 	 Cindi H. Lewis, Corporate Secretary

  
  

			
	         /s/ Johnny R. Myers

	 	(SEAL)
	Johnny R. Myers	 	 

  

 17

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