Document:

[ATRINSIC
LETTERHEAD]

     

     

    December
18, 2009

     

    Mr.
Andrew Zaref

     

    Re:
Separation and Release Agreement

     

    Dear
Andrew:

     

    As you
have been informed, your employment with Atrinsic, Inc. (the
“Company”) will terminate effective December 16, 2009 (the “Separation
Date”).  You are eligible to receive a cash severance payment,
contingent upon certain conditions.  One such condition is your
execution and return of this Separation and Release Agreement (the “Release
Agreement”) to the Company.

     

    1. 
Regular
Pay.  You will be paid all accrued salary, less standard
payroll deductions and withholdings, earned through the Separation Date on the
next scheduled pay date on December 31, 2009.  You are entitled to
these payments regardless of whether or not you sign this Release
Agreement.

     

    2. 
Severance
Allowance.  You will receive a basic severance allowance (the
“Severance Benefits”) in the amount of $192,500,
less applicable federal, state and local taxes and other amounts which
may be required to be withheld.  This amount includes a 5% increase in
your Base Salary from July 14, 2009 through the Separation Date.  Your
Severance Benefits will be paid in a lump sum form, less applicable federal,
state and local taxes and other amounts which may be required to be
withheld.  The Severance Benefits payment will be made on the
Company’s first regular payday after:  (a) the Effective Date (as
defined in Section 12); and (b) your return to the Company and the
Company’s verification of your return of the items listed in Section
9.

     

    3. 
Paid
Time Off.  The Company acknowledges that you are entitled to
receive the cash equivalent of all accrued but unused paid time off through
December 16, 2009, pursuant to the Company’s policy and practice.  The
Company agrees to make this payment in the December 31, 2009 payroll in the
amount of $30,770.00, less applicable federal, state and local taxes and other
amounts which may be required to be withheld.

     

    4. 
Health
Insurance.  The Company will continue your family medical,
dental and vision benefits, if applicable, for a period of up to one (1) year
following the Separation Date, provided, however, that in the event you obtain
employment prior to the expiration of this one (1) year term, and you are
afforded health insurance by your new employer, these benefits will terminate
upon the earliest date substitute benefits become available to
you.  In the event you are eligible for alternative medical, dental or
vision plans, you must enroll and notify the Company in writing within fifteen
(15) business days from the date on which you receive alternative medical,
dental and vision coverage.  In the event you do not obtain substitute
employment upon the expiration of the one (1) year term, once these medical,
dental and vision benefits, if applicable, cease, you will be eligible for
statutory COBRA continuation healthcare benefits.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    5. 
401(k)
Plan. You acknowledge that active participation in the Company’s 401(k)
Plan ends on the Separation Date, and your vested benefits accruing up to the
Separation Date are not
affected.

     

    6. 
Other
Compensation or Benefits.

     

    (a)           You
acknowledge that, except as expressly provided in this Release Agreement, you
will not receive any additional compensation, severance or benefits from the
Company.  You acknowledge and agree that You hold no options to
purchase securities of the Company and that all option agreements entered into
between the Company and You and options granted by the Company to You have been
(or are hereby)
terminated.

     

    (b)           The
Company granted You:  (i) restricted stock units for 200,000 shares of
common stock on June 25, 2009 and (ii) restricted stock units for 66,667 shares
of common stock on June 25, 2009 (the “RSUs”).  You acknowledge and
agree, effective as of the Separation Date, the RSUs, and all of Your rights to
receive shares or common stock of the Company thereunder, are
terminated.

     

    7. 
Expense
Reimbursements.  You agree that, within fifteen (15) days of
the Separation Date, you will submit your final documented expense reimbursement
statement reflecting all business expenses you incurred through the Separation
Date, if any, for which you seek reimbursement.  The Company will
reimburse you for these expenses pursuant to its regular business
practice.

     

    8. 
Signing
Bonus.  The Company waives any rights that it may have to a
refund by you to the Company of your Signing
Bonus.

     

    9. 
Return
of Company Property.  Within fifteen (15) days of the
Separation Date, you agree to return to the Company all Company documents
(whether prepared by the Company, the Company’s affiliates, you, or a third
party) in any form including, but not limited to, electronic, digital, and paper
form (and all copies thereof) and other Company property which you have had in
your possession or in your control at any time relating to the Company or any of
its affiliates or any of their businesses or property.  The items that
fall within the scope of this Section 9 include, but are not limited to, files,
notes, drawings, records, business plans and forecasts, financial information,
specifications, computer-recorded information, tangible property (including, but
not limited to, computers, credit cards, entry cards, identification badges and
keys); and any materials of any kind which contain or embody any proprietary or
confidential information of the Company (and all reproductions
thereof).

     

    10. 
References.  You
agree to forward all requests for a reference or employment verification to the
Human Resources Department in New York (“HR”).  HR will provide your
dates of service and the last position held at the Company by you, and no
further information.

     

    11. 
Confidentiality.  The
provisions of this Release Agreement shall be held in strictest confidence by
you and shall not be publicized or disclosed in any manner whatsoever; provided,
however, that you may disclose this Release Agreement:  (a) to your
immediate family; (b) in confidence to your respective attorneys, accountants,
auditors, tax preparers, and financial advisors; and (c) as otherwise required
by law.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    12. 
Release.  In
exchange for the payments and other consideration under this Release Agreement
to which you would not otherwise be entitled, subject to applicable law, you
hereby release and forever discharge the Company, its parents and subsidiaries,
and its respective officers, directors, agents, servants, employees, attorneys,
members, successors, assigns and affiliates, of and from any and all claims,
liabilities, demands, causes of action, costs, expenses, attorneys fees,
damages, indemnities and obligations of every kind and nature, in law, equity,
or otherwise, known and unknown, suspected and unsuspected, disclosed and
undisclosed, arising out of or in any way related to events, acts or conduct at
any time prior to and including the execution date of this Release Agreement,
including but not limited to:  all such claims and demands directly or
indirectly arising out of or in any way connected with your employment with the
Company or the termination of that employment; claims or demands related to
salary, bonuses, commissions, stock, stock options, or any other ownership
interests in the Company, vacation pay, fringe benefits, expense reimbursements,
severance pay, or any other form of compensation; claims pursuant to any
federal, state or local law, statute, or cause of action including, but not
limited to, the federal Civil Rights Act of 1964, as amended, including without
limitation claims for attorneys’ fees; the federal Americans with Disabilities
Act of 1990; the federal Age Discrimination in Employment Act of 1967, as
amended (“ADEA”); the New York State Human Rights Law; any provision in the New
York State Labor Law; whistleblower laws; tort law; contract law; wrongful
discharge; discrimination; harassment; fraud; defamation; emotional distress;
and breach of the implied covenant of good faith and fair dealing.  As
of the date of this Release Agreement, the Company is not aware of any claims
against you.

     

    You
acknowledge that you are knowingly and voluntarily waiving and releasing any
rights you may have under the ADEA, as amended.  You also acknowledge
that the consideration given for the waiver and release in the preceding
paragraph hereof is in addition to anything of value to which you were already
entitled.  You acknowledge that you have been advised by this writing,
as required by the ADEA, that:  (a) your waiver and release do
not apply to any rights or claims that may arise after the execution date of
this Release Agreement; (b) you have been advised hereby to consult with an
attorney prior to executing this Release Agreement; (c) you have twenty-one
(21) days to consider this Release Agreement (although you may choose to
voluntarily execute this Release Agreement earlier); (d) you have seven (7)
days following the execution of this Release Agreement by the parties to revoke
the Release Agreement, which can be done by sending a certified letter to that
effect to Jeffrey Schwartz, Interim CEO; and (e) this Release Agreement
shall not be effective until the date upon which the revocation period has
expired, which shall be the eighth (8th) day after this Release Agreement is
executed by you, provided that the Company has also executed this Release
Agreement by that date (“Effective Date”).  This Release Agreement
excludes your rights arising hereunder and any rights to indemnification arising
pursuant to your employment agreement.

     

    13. 
Waiver
of Known and Unknown Claims.  YOU UNDERSTAND THAT THIS RELEASE
AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN
CLAIMS.

     

    14. 
Acknowledgement
Regarding Existing Claims.  You represent and warrant that, to
date, no claim or demand has been asserted, and no proceeding of any kind
against any Releasee has been commenced, instituted or caused to be comments,
based upon any matter released by this Release Agreement, and you covenant that
you will not seek to recover on any claim released in this Release
Agreement.  If you violate this Release Agreement by instituting any
such claims, proceedings or lawsuits, you agree to return to the Company all
payments received by you under this Release Agreement, except for your Accrued
but Unused Vacation pay, and any obligation by the Company to provide any
further benefits or payments will immediately cease.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    15. 
Non-Disparagement. 
We both agree that we will not publicly or privately disparage each
other.  Specifically, you agree that you will not publicly or
privately disparage the Company’s products, services, divisions, affiliates,
related companies or current or former officers, directors, trustees, employees,
agents, administrators, representatives or fiduciaries nor will any of the
Company’s current or future officers, directors, trustees, employees, agents,
administrators, representatives or fiduciaries publicly or privately disparage
you.

     

    16. 
Confidential
Information.  You acknowledge that, as a result of the your
services to the Company, you obtained Confidential Information (as defined
below) as to the Company and that, because of the nature of the information
known to you it is necessary for the Company to be protected by the restrictions
set forth herein.

     

    (a)           Following
the Separation Date, you shall not at any time, directly or indirectly, divulge
or disclose, for any purpose whatsoever, any secret, confidential or proprietary
information, knowledge or data relating to the Company, and their respective
businesses, affairs, accounts, products or services (including any confidential
information of customers of the Company) that you obtained during your
employment by the Company and that is not otherwise public knowledge or not
generally known within the Company’s industry (“Confidential
Information”).  Unless compelled pursuant to the order of a court or
other governmental or legal body having authority over such matter, you shall
not either before or after the Separation Date, without the prior written
consent of the Company, communicate or divulge any such Confidential Information
to anyone other than the Company and those designated by it, nor use the
Confidential Information for your own benefit or for the benefit of any other
person, firm, corporation or entity.  If you are requested or
compelled by order of a court or other governmental or legal body to communicate
or divulge any Confidential Information to anyone other than the Company and
those designated by it, you shall promptly notify the Company of any such order,
and you shall cooperate fully with the Company in protecting such information to
the extent possible under applicable law.

     

    (b)           You
acknowledge that this Section 16 is reasonable and necessary for the furtherance
of the Company’s business and for the protection of the business of the Company,
and that part of the Severance Benefits are in consideration for your agreements
in this Section 16.  In the event of any breach by you of this Section
16, the Company shall be entitled to immediately cease payment of the Severance
Benefits.

     

    17. 
Non-Competition. 
The Company agrees to waive Paragraph 2, subsections (i)-(v) and (viii) of your
Non-Competition, Non-Solicitation and Confidentiality Agreement, dated July 14,
2008 (the “Non-Competition Agreement”).  The Company also agrees that
its rights pursuant to Paragraph 17 of the Non-Competition Agreement are hereby
terminated.

     

    18. 
Injunctive
Relief.  In the event of a breach or threatened breach of
Section 16 of this Release Agreement, you acknowledge that the Company will be
caused irreparable harm which is not capable of being calculated and which
cannot be fully or adequately compensated by the recovery of damages
alone.  Accordingly, you agree that the Company shall be entitled to
interim and permanent injunctive relief, specific performance and other
equitable remedies to have the provisions of Section 16 of this Release
Agreement enforced, in addition to its other remedies at
law.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    19. 
Successors;
Binding Release Agreement.  This Release Agreement shall bind
the heirs, personal representatives, successors and assigns of both you and the
Company, and inure to the benefit of both you and the Company, their heirs,
successors and assigns.

     

    20. 
Section
409 A.  To the extent that the Company and/or you reasonably
determine that any amount payable under this Release Agreement would trigger the
additional tax imposed by Section 409A of the Internal Revenue Code of 1986, as
amended, the Company and you will promptly agree in good faith on appropriate
modifications to the Release Agreement (including delaying or restructuring
payments) to avoid such additional tax yet preserve (to the nearest extent
reasonably possible) the intended benefit payable to
you.

     

    21. 
Miscellaneous.  This
Release Agreement may not be modified, waived or discharged unless such
modification, waiver, or discharge is agreed to in writing and signed by both
you and a duly authorized officer of the Company.

     

    22. 
Entire
Agreement. This
Release Agreement, including Exhibit A, constitutes the complete, final and
exclusive embodiment of the entire agreement between you and the Company with
regard to this subject matter provided, however, that nothing in this Release
Agreement is intended to or may be construed to modify, impair or terminate any
of your obligations under any non-solicitation, confidentiality, non-competition
or intellectual property agreements between you and the Company.  This
Release Agreement shall supersede all prior or contemporaneous agreements and
understandings among the Parties and any Releasees, whether written or oral,
express, or implied.  It is entered into without reliance on any
promise or representation, written or oral, other than those expressly contained
herein, and it supersedes any other such promises, warranties or
representations.

     

    23. 
Severability.  If
any provision of this Release Agreement is determined to be invalid or
unenforceable, in whole or in part, this determination will not affect any other
provision of this Release Agreement and the provision in question shall be
modified by the court so as to be rendered
enforceable.

     

    24. 
Counterparts.  This
Release Agreement may be executed in several counterparts (including via
facsimile), each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     

    25. 
Governing
Law.  This Release Agreement is made and entered into and shall
be interpreted, enforced and governed by and under the laws of the State of New
York.  The parties in any action arising from this Release Agreement
shall be subjected to the jurisdiction and venue of the federal and state
courts, as applicable, in the State of New York.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    You
should consult with an attorney regarding the terms of this Release
Agreement.  Your signature below indicates that you are entering into
this Release Agreement freely, knowingly and voluntarily, with a full
understanding of its terms.  If this Release Agreement is acceptable
to you, please sign on the line provided below and return the original to
Jeffrey Schwartz, Interim CEO.  The Release Agreement must be returned
twenty-one (21) days from the date that you receive it.

     

     

    Sincerely,

     

    
      
        
          
            	   
        	 
	
                    Jeffrey
      Schwartz

                  	 
	
                    Interim
      Chief Executive Officer

                  	 
	
                    Atrinsic,
      Inc.

                  	 

          

        

      

    

     

    
      
        
          
            
              
                
                  	
                          Agreed:

                        	 
      	 
      
	
                           

                          /s/
      Andrew
      Zaref

                        	 
      	
                          Dated: December
      18, 2009

                        
	
                          Andrew
      Zaref

                        	 
      	 
      

                

              

            

          

        

      

    

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    Name:
Andrew Zaref

     

    SEPARATION
ALLOWANCE STATEMENT

     

    Cash
Payments

     

    Severance
Benefits

     

    Entitlement
to Severance Benefits is contingent upon your execution of the attached
Separation Agreement and General Release and return to Jeffrey Schwartz, Interim
Chief Executive Officer, within twenty-one (21) days of receipt and you not
revoking the agreement within seven (7) days after signing it.

     

    
      
        
          
            	
                    TOTAL
      SEVERANCE BENEFITS

                  	 	$	192,500.00	 

          

        

      

    

     

    (Subject to the applicable
actual or hypothetical withholding tax deductions)

     

    I understand my Severance
Benefits.  I also understand that my Severance Benefits will be made
payable in the form of a lump sum (Subject
to the applicable actual or hypothetical withholding tax
deductions).

     

    Accrued
Paid
Time Off

     

    
      
        
          
            	
                    160
      hours.

                  	 	$	30,770.00	 

          

        

      

    

     

    (Subject
to the applicable actual or hypothetical withholding tax
deductions)

     

    
      
        
          
            
              
                	
                        Total:

                      	 	$	223,270.00	 

              

            

          

        

      

    

     

    (Subject
to the applicable actual or hypothetical withholding tax
deductions)

     

    Non-cash

     

    In
addition to the Severance Benefit, you will to be eligible for continuation of
family medical, dental and vision benefits, if applicable, under the Company’s
group medical, dental and vision plans, is applicable, for a period of up to one
(1) year following the Separation Date, provided, however, that in the event you
obtain employment prior to the expiration of this one (1) year term, and you are
afforded health insurance by your new employer, these benefits will terminate
upon the earliest date substitute benefits become available to
you.  Upon cessation of medical and dental benefits, you, your spouse,
and your eligible dependents will be entitled to exercise their rights (if any)
under Section 4980B of the Internal Revenue Code of 1986, as amended and
Sections 601–607 of the Employee Retirement Income Security Act of 1974, as
amended (collectively, “COBRA”).

     

    
      
        
          
            
              	

                      /s/
      Andrew
      Zaref

                    	 
      	12/18/09	 
      
	
                      Signature

                    	 
      	
                      Date

                    	 
      

            

          

        

      

    

    
      
         

      

      
        -7-Unassociated Document

     

    Exhibit
10.24

    EMPLOYMENT
AGREEMENT

    

    This Employment
Agreement (the “Agreement”) is effective on June 2, 2008 (the “Effective
Date”), by and between First Reliance Bank, a South Carolina-chartered bank and
wholly owned subsidiary of First Reliance Bancshares, Inc. (the “Bank”),
and Craig S. Evans an officer of the Bank (the “Executive”).

    

    WHEREAS,
the Executive is being employed as an officer of the Bank, possessing unique
skills, knowledge, and experience relating to the Bank’s business, and the
Executive is expected to make major contributions to the profitability, growth,
and financial strength of the Bank and affiliates,

    

    WHEREAS,
none of the conditions or events included in the definition of the term “golden
parachute payment” that is set forth in Section 18(k)(4)(A)(ii) of the Federal
Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit
Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists or,
to the best knowledge of the Bank, is contemplated insofar as the Bank or any
affiliates are concerned.

    

    NOW
THEREFORE, in consideration of these premises, the mutual covenants
contained herein, and other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows.

    

    ARTICLE
1

    EMPLOYMENT

    

    1.1           Employment.  Effective
on the date above and continuing for the term as specified in section 1.3 of the
Agreement, the Bank hereby employs the Executive to serve as Chief Operating
Officer of the Bank according to the terms and conditions of this Employment
Agreement.  The Executive hereby accepts employment according to the
terms and conditions of this Agreement.

    

    1.2           Duties.  As Chief
Operating Officer of the Bank, the Executive shall serve in accordance with the
Bank’s Articles of Incorporation and Bylaws, as each may be amended or restated
from time to time, and under the direction of the Bank’s President and Chief
Executive Officer.  The Executive shall serve the Bank faithfully,
diligently, competently, and to the best of the Executive’s
ability.  The Executive shall exclusively devote full working time,
energy, and attention to the business of the Bank and to the promotion of the
Bank’s interests throughout the term of this Agreement.  Without the
written consent of the Bank’s Chief Executive Officer, during the term of this
Agreement the Executive shall not render services to or for any person, firm,
corporation, or other entity or organization in exchange for compensation,
regardless of the form in which the compensation is paid and regardless of
whether it is paid directly or indirectly to the Executive.  Nothing
in this Article 1 shall prevent the Executive from managing personal investments
and affairs, provided that doing so does not interfere with the proper
performance of the Executive’s duties and responsibilities under this
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.3           Term of
Agreement.  The initial term of employment under this Agreement
shall be for the period commencing upon the effective date of this Agreement and
ending three calendar years from the effective date of this Agreement, unless
terminated as provided in Article 3 of this Agreement.  Thereafter,
upon each anniversary date of the effective date, this Agreement shall
automatically be extended for an additional year unless terminated as provided
in Article 3 of this Agreement.

    

    ARTICLE
2

    COMPENSATION AND
OTHER BENEFITS

    

    2.1           Base Salary.  In
consideration of the Executive’s performance of the obligations under this
Agreement, the Bank shall pay or cause to be paid to the Executive a salary at
the annual rate of not less than $200,000.00.  The Executive’s salary
shall be reviewed annually by the Bank’s Chief Executive Officer or by the board
of directors or the board committee having jurisdiction over executive
compensation.  The Executive’s salary, as the same may be increased or
decreased from time to time, is referred to in this Agreement as the “Base
Salary”.

    

    2.2           Benefit Plans.

    

    (a)           The
Executive shall be eligible throughout the term of this Agreement to participate
in any and all officer or employee compensation, bonus, incentive, and benefit
plans in effect from time to time, including without limitation plans providing
pension, retirement, medical, dental, disability, and group life benefits, and
to receive any and all other fringe benefits provided from time to time,
provided that the Executive satisfies the eligibility requirements for the plans
or benefits.

    

    2.3           Allowances
and Reimbursement.

    

    (a)           The
Executive will receive a monthly cell phone allowance of $75.00 and the Bank
will pay the monthly dues for the Executive’s membership in a local Country
Club.

    

    (b)           Upon
submission of appropriate documentation by the Executive and approval by the
Bank’s President and Chief Executive Officer or by board of directors or board
committee appointed for such purpose, the Bank agrees to reimburse the Executive
for all out-of-pocket expenses incurred performing the obligations under this
Agreement, including but not limited to all reasonable business travel and
entertainment expenses incurred while acting at the request of or in the service
of the Bank and reasonable expenses for attendance at annual and other periodic
meetings of trade associations.  To be reimbursable each expense must
be of a nature qualifying it as a proper deduction on the Bank’s income tax
returns as a business expense rather than deductible compensation to the
Executive.  The records and other documentary evidence submitted by
the Executive to the Bank with each request for reimbursement shall be in the
form required by applicable statutes and regulations issued by appropriate
taxing authorities for the substantiation of expenditures as deductible business
expenses of the Bank rather than deductible compensation to the
Executive.

    
      
         

      

      
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    2.4           Vacation.  The
Executive shall be entitled to paid annual vacation and sick leave in accordance
with policies established from time to time by the Bank.  The
Executive shall not be entitled to any additional compensation for failure to
use allotted vacation, nor shall the Executive be allowed to carry over unused
vacation allowance from one calendar year to the next.  The Executive
shall be entitled to carry over sick leave in accordance with policies
established from time to time by the Bank.

    

    2.5           Stock Ownership. The
Executive is expected to assist in showing confidence and support of the Bank by
annual purchases of Bank stock as determined appropriate for senior level
officers.

    

    2.6           Stock
Compensation.  In addition to Executive’s Base Salary, Bank
shall provide Executive with $50,000.00 of restricted stock in Bank, subject to
Executive meeting the “Employment Requirement” (as hereinafter
defined).  The terms and conditions to Executive’s restricted stock
shall be those applicable to all shares of the same class.  The
restricted stock will be valued as of the date purchased (within two (2) months
of this Agreement) based upon the most recently published price on the OTC
Bulletin Board as of the purchase date.  For purposes of this section
2.5, “Employment Requirement” shall mean Executive’s continuous employment by
Bank for a period of five (5) years from the date of this
Agreement.  Said restricted shares will be distributed within
forty-five (45) days of Executive meeting the Employment
Requirement.  Should the Executive not meet the Employment
Requirement, the restricted stock shall revert back to the Bank and be
cancelled.

    

    2.7           Taxes.  All
compensation of the Executive shall be subject to withholding and other
employment taxes imposed by federal, state, and local law.

    

    ARTICLE
3

    TERMINATION
OF EMPLOYMENT

    

    3.1           Termination.  The
Executive is employed for an initial three (3) year term, followed by automatic
one year terms, unless notice of termination of this Agreement is made by a
Party as provided in this Article.  All notices of termination shall
be in writing, and provide thirty (30) days notice.  Should the
Executive give less than thirty (30) days written notice, the Bank may terminate
this Agreement immediately without further compensation as may be provided in
subsections of this section 3.1.  Should Executive give thirty (30) or
more days written notice of termination of this Agreement, the Bank may elect to
immediately remove all job duties from Executive and pay Executive through the
effective date of the Termination, followed by any applicable additional
compensation as provided in the subsections of this section
3.1.  Should Bank elect to give thirty (30) days notice of
termination, it may elect to immediately remove all job duties from Executive
and pay Executive through the effective date of the Termination, followed by any
applicable additional compensation as provided in the subsections of this
section 3.1.  All payments of Base Salary under this Article shall be
made in the normal course of the Bank’s payroll schedule and not by way of lump
sum.

    

    (a)           Termination Within Initial
Term.  Should the Executive terminate this Agreement within the
initial 3 year term, no further compensation shall be due.  Should the
Bank terminate this Agreement within the initial 3 year term, the Bank shall pay
Executive the remaining Base Salary due through the initial term of this
Agreement or one calendar year of Base Salary, whichever is
greater.  All covenants agreed upon within this Agreement, including
but not limited to those covenants contained in Articles 4 and 5 shall survive
any termination of this Agreement pursuant to this subsection
3.1(a).

    
      
         

      

      
        3 of
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    (b)           Termination by Executive Following
Initial Term.   Should Executive terminate this Agreement
following the initial 3 year term no further compensation shall be
due.

    

    (c)           Termination by Bank Following
Initial Term but Before Eligibility Under Salary Continuation
Agreement.  Should the Bank terminate this Agreement following
the initial 3 year term, but before Executive is eligible for benefits under the
Salary Continuation Agreement, Executive shall be paid 12 months (1 year) Base
Salary.  Should Executive obtain other employment during the 12 months
of continued Base Salary, all payments under this subsection 3.1(c) shall cease
at the time Executive begins other employment.  Executive
affirmatively agrees to immediately notify Bank of any other employment under
this subsection 3.1(c).

    

    (d)           Termination by Bank Following
Initial Term and Executive is Eligible Under Salary Continuation
Agreement.  Following the initial 3 year term, and if Executive
is eligible to receive benefits under the Salary Continuation Agreement, should
Executive or Bank terminate this Agreement, no further Base Salary or other
compensation under this Agreement shall be paid.

    

    (e)           Termination by Bank For
Cause.  The Bank may terminate the Executive’s employment
immediately without the thirty (30) days notice in section 3.1 for any of the
following –

    

    
      	
               
      

            	
              1)

            	
              an
      intentional act of fraud, embezzlement, or theft by the Executive in the
      course of employment.  For purposes of this Agreement no act or
      failure to act on the part of the Executive shall be deemed to have been
      intentional if it was due primarily to an error in judgment or
      negligence.  An act or failure to act on the Executive’s part
      shall be considered intentional if it is not in good faith and if it is
      without a reasonable belief that the action or failure to act is in the
      best interests of the Bank,

            

    

    

    
      	
               
      

            	
              2)

            	
              intentional
      violation of any law or significant policy of the Bank committed in
      connection with the Executive’s employment, which in the Bank’s judgment
      has a material adverse effect on the
Bank,

            

    

    

    
      	
               
      

            	
              3)

            	
              the
      Executive’s gross negligence in the performance of the Executive’s duties
      to the Bank,

            

    

    

    
      	
               
      

            	
              4)

            	
              intentional
      wrongful damage by the Executive to the business or property of the Bank,
      including without limitation the reputation of the Bank, which in the
      Bank’s sole judgment causes material harm to the
  Bank,

            

    

     

    
      
         

      

      
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              5)

            	
              a
      breach by the Executive of fiduciary duties or misconduct involving
      dishonesty, in either case whether in the Executive’s capacity as an
      officer or as a director of the
Bank,

            

    

    

    
      	
               
      

            	
              6)

            	
              a
      breach by the Executive of this Agreement that in the sole judgment of the
      Bank is a material breach, which breach is not corrected by the Executive
      within 30 days after receiving written notice of the breach from the
      Bank,

            

    

    

    
      	
               
      

            	
              7)

            	
              removal
      of the Executive from office or permanent prohibition of the Executive
      from participating in the Bank’s affairs by an order issued under section
      8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
      1818(e)(4) or (g)(1),

            

    

    

    
      	
               
      

            	
              8)

            	
              conviction
      of the Executive for or plea of no contest to a felony or conviction of or
      plea of no contest to a misdemeanor involving moral turpitude, or the
      actual incarceration of the Executive,
or

            

    

    

    
      	
               
      

            	
              9)

            	
              the
      occurrence of any event that results in the Executive being excluded from
      coverage, or having coverage limited for the Executive as compared to
      other executives of the  Bank, under the Bank’s blanket bond or
      other fidelity or insurance policy covering its directors, officers, or
      employees.

            

    

    

    
      	
               
      

            	
              10)

            	
              The
      death of Executive.

            

    

    

    Should
termination occur under this subsection 3.1(e), no further Base Salary or other
compensation shall be paid effective immediately upon
termination.  All covenants agreed upon within this Agreement,
including but not limited to those covenants contained in Articles 4 and 5 shall
survive any termination of this Agreement pursuant to this subsection
3.1(e).

    

    (f)           Voluntary Termination with Good
Reason.  Voluntary Termination with Good Reason shall mean a
termination by Executive with 24 months after a Change of Control, as defined in
Article 6 of this Agreement, if the following conditions (x) and (y) are satisfied: (x) a voluntary termination
will be considered a Voluntary Termination with Good Reason if any of the
following occur without the Executive’s advance written consent –

    

    (1)           a
material diminution of the Executive’s Base Salary,

    

    (2)           a
material diminution of the Executive’s authority, duties, or
responsibilities,

    

    (3)           a
material diminution in the authority, duties, or responsibilities of the
supervisor to whom the Executive is required to report,

    

    (4)           a
material diminution in the budget over which the Executive retains
authority,

    
      
         

      

      
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    (5)           a
material change in the geographic location at which the Executive must perform
services for the Bank, or

    

    (6)           any
other action or inaction that constitutes a material breach by the Bank of this
Agreement.

    

    (y)           the
Executive must give notice to the Bank of the existence of one or more of the
conditions described in clause (x) within 90 days after the
initial existence of the condition, and the Bank shall have 30 days thereafter
to remedy the condition.  In addition, the Executive’s voluntary
termination because of the existence of one or more of the conditions described
in clause (x) must
occur within 24 months of the date of the Change of Control, as defined in
Article 6 of this Agreement.  Should Voluntary Termination with Good
Reason occur under this subsection 3.1(f), compensation shall be as provided in
Article 6 of this Agreement.  All covenants agreed upon within this
Agreement, including but not limited to those covenants contained in Articles 4
and 5 shall survive any termination of this Agreement pursuant to this
subsection 3.1(f).

    

    ARTICLE
4

    CONFIDENTIALITY
AND CREATIVE WORK

    

    4.1           Non-disclosure.  The
Executive covenants and agrees not to reveal to any person, firm, or corporation
any confidential information of any nature concerning the Bank or its business,
or anything connected therewith.  As used in this Article 4 the term
“confidential
information” means all of the Bank’s and its affiliates’ confidential and
proprietary information and trade secrets in existence on the date hereof or
existing at any time during the term of this Agreement, including but not
limited to –

    

    (a)           the
whole or any portion or phase of any business plans, financial information,
purchasing data, supplier data, accounting data, or other financial
information,

    

    (b)           the
whole or any portion or phase of any research and development information,
design procedures, algorithms or processes, or other technical
information,

    

    (c)           the
whole or any portion or phase of any marketing or sales information, sales
records, customer lists, prices, sales projections, or other sales information,
and

    

    (d)           trade
secrets, as defined from time to time by the laws of the State of South
Carolina.

    

    This
section 4.1 does not prohibit disclosure required by an order of a court having
jurisdiction or a subpoena from an appropriate governmental agency or disclosure
made by the Executive in the ordinary course of business and within the scope of
the Executive’s authority.

    

    4.2           Return of
Materials.  The Executive agrees to deliver or return to the
Bank upon termination of Executive’s employment, or as soon thereafter as
possible, all written information and any other similar items furnished by the
Bank or prepared by the Executive in connection with the Executive’s services
hereunder.  The Executive will retain no copies thereof after
termination of the Executive’s employment.

    
      
         

      

      
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    4.3           Creative Work.  The
Executive agrees that all creative work and work product, including but not
limited to all technology, business management tools, processes, software,
patents, trademarks, and copyrights developed by the Executive during the term
of this Agreement and in the course and scope of the Executive’s duties
hereunder, regardless of when or where such work or work product was produced,
constitutes work made for hire, all rights of which are owned by the
Bank.  The Executive hereby assigns to the Bank all rights, title, and
interest, whether by way of copyrights, trade secret, trademark, patent, or
otherwise, in all such work or work product, regardless of whether the same is
subject to protection by patent, trademark, or copyright laws.

    

    4.4           Injunctive
Relief.  The Executive acknowledges that it is impossible to
measure in money the damages that will be suffered by the Bank if the Executive
fails to observe the obligations imposed by this Article
4.  Accordingly, if the Bank institutes an action to enforce the
provisions hereof, the Executive hereby waives the claim or defense that an
adequate remedy at law is available to the Bank and the Executive agrees not to
urge in any such action the claim or defense that an adequate remedy at law
exists.

    

    4.5           Affiliates’ Confidential Information
is Covered; Confidentiality Obligation Survives
Termination.  For purposes of this Agreement, the term “affiliate”
includes First Reliance Bancshares, Inc., the Bank, and any entity that directly
or indirectly through one or more intermediaries controls, is controlled by, or
is under common control with First Reliance Bancshares, Inc. or the
Bank.  The rights and obligations set forth in this Article 4 shall
survive termination of this Agreement.

    

    ARTICLE
5

    COMPETITION
AFTER EMPLOYMENT TERMINATION

    

    5.1           Covenant Not to Solicit
Employees.  Should this Agreement be terminated by either
Executive or Bank during the initial 3 year term, the Executive agrees not to
solicit the services of any officer or employee of the Bank for two (2) years
after the Executive’s employment is terminated.

    

    5.2           Covenant Not to
Compete.

    

    (a)           Should
this Agreement be terminated by either Executive or Bank during the initial 3
year term, the Executive covenants and agrees not to compete directly or
indirectly with the Bank without advance written consent of the Bank for two
years after employment is terminated, plus any period during which the Executive
is in violation of this covenant not to compete and any period during which the
Bank seeks by litigation to enforce this covenant not to compete.  For
purposes of this section –

    

    
      	
               
      

            	
              1)

            	
              the
      term “compete” means

            

    

    
      
         

      

      
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    (a)           providing
financial products or services on behalf of any financial institution for any
person residing in the territory,

    

    (b)           assisting
(other than through the performance of ministerial or clerical duties) any
financial institution in providing financial products or services to any person
residing in the territory, or

    

    (c)           inducing
or attempting to induce any person who was a customer of the Bank at the date of
the Executive’s employment termination to seek financial products or services
from another financial institution.

    

    
      	
               
      

            	
              2)

            	
              the
      words “directly or indirectly” means
–

            

    

    

    (a)           acting
as a consultant, officer, director, independent contractor, or employee of any
financial institution in competition with the Bank in the territory,
or

    

    (b)           communicating
to such financial institution the names or addresses or any financial
information concerning any person who was a customer of the Bank at the
Executive’s employment termination.

    

    
      	
               
      

            	
              3)

            	
              the
      term “customer” means any person to whom the Bank is providing financial
      products or services on the date of the Executive’s employment
      termination.

            

    

    

    
      	
               
      

            	
               4)

            	
              the
      term “financial institution” means any bank, savings association, or bank
      or savings association holding company, or any other institution, the
      business of which is engaging in activities that are financial in nature
      or incidental to such financial activities as described in section 4(k) of
      the Bank Holding Company Act of 1956, other than the Bank or any of its
      affiliated corporations.

            

    

    

    
      	
               
      

            	
               5)

            	
              “financial
      product or service” means any product or service that a financial
      institution or a financial holding company could offer by engaging in any
      activity that is financial in nature or incidental to such a financial
      activity under section 4(k) of the Bank Holding Company Act of 1956 and
      that is offered by the Bank or an affiliate on the date of the Executive’s
      employment termination, including but not limited to banking activities
      and activities that are closely related and a proper incident to
      banking.

            

    

     

    
      
         

      

      
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               6)

            	
              the
      term “person” means any individual or individuals, corporation,
      partnership, fiduciary or
association.

            

    

    

    
      	
               
      

            	
               7)

            	
              the
      term “territory” means the State of South Carolina.  Executive
      agrees to this territory since he is a senior officer with
      responsibilities over all offices and is involved in plans and decisions
      for future expansion of the Bank.

            

    

    

    (b)           If
any provision of this section or any word, phrase, clause, sentence or other
portion thereof (including, without limitation, the geographical and temporal
restrictions contained therein) is held to be unenforceable or invalid for any
reason, the unenforceable or invalid provision or portion shall be modified or
deleted so that the provisions hereof, as modified, are legal and enforceable to
the fullest extent permitted under applicable law.

    

    5.3           Remedies.  Because
of the unique character of the services to be rendered by the Executive
hereunder, the Executive understands that the Bank would not have an adequate
remedy at law for the material breach or threatened breach by the Executive of
any one or more of the Executive’s covenants in this Article
5.  Accordingly, the Executive agrees that the Bank’s remedies for a
material breach or threatened breach of this Article 5 include but are not
limited to forfeiture of any money representing accrued salary, contingent
payments, or other fringe benefits due and payable to the Executive, and a suit
in equity by the Bank to enjoin the Executive from the breach or threatened
breach of such covenants.  The Executive hereby waives the claim or
defense that an adequate remedy at law is available to the Bank and the
Executive agrees not to urge in any such action the claim or defense that an
adequate remedy at law exists.  Nothing herein shall be construed to
prohibit the Bank from pursuing any other remedies for the breach or threatened
breach.

    

    5.4           Article 5 Survives
Termination.  The rights and obligations set forth in this
Article 5 shall survive termination of this Employment Agreement during the
initial 3 year term, unless otherwise provided in Section 3.1.

    

    ARTICLE
6

    CHANGE
IN CONTROL

    

    6.1           Change in Control
Defined. For
purposes of this Agreement the term “Change in
Control” means a change in control as defined in Internal Revenue Code
section 409A and rules, regulations, and guidance of general application
thereunder issued by the Department of the Treasury, including –

    

    (a)           Change in ownership: a change
in ownership of First Reliance Bancshares, Inc., a South Carolina corporation of
which the Bank is a wholly owned subsidiary, occurs on the date any one person
or group accumulates ownership of First Reliance Bancshares, Inc. stock
constituting more than 50% of the total fair market value or total voting power
of First Reliance Bancshares, Inc. stock, or

     

    
      
         

      

      
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    (b)           Change in effective control:
(x) any one person or
more than one person acting as a group acquires within a 12-month period
ownership of First Reliance Bancshares, Inc. stock possessing 30% or more of the
total voting power of First Reliance Bancshares, Inc., or (y) a majority of First
Reliance Bancshares, Inc.’s board of directors is replaced during any 12-month
period by directors whose appointment or election is not endorsed in advance by
a majority of First Reliance Bancshares, Inc.’s board of directors,
or

    

    (c)           Change in ownership of a substantial
portion of assets: a change in ownership of a substantial portion of
First Reliance Bancshares, Inc.’s assets occurs if in a 12-month period any one
person or more than one person acting as a group acquires from First Reliance
Bancshares, Inc. assets having a total gross fair market value equal to or
exceeding 40% of the total gross fair market value of all of First Reliance
Bancshares, Inc.’s assets immediately before the acquisition or
acquisitions.  For this purpose, gross fair market value means the
value of First Reliance Bancshares, Inc.’s assets, or the value of the assets
being disposed of, determined without regard to any liabilities associated with
the assets.

    

    6.2           Change in
Control.

    

    (a)  If a Change in Control
occurs during the term of this Agreement and if within 24 months thereafter the
Bank terminates this Agreement other than a Termination for Cause, as defined in
subsection 3.1(e), or Executive terminates this Agreement as a Voluntarily
Termination with Good Reason, as defined in subsection 3.1(f), the Bank shall
make or cause to be made a lump-sum payment to the Executive in an amount in
cash equal to two times the Executive’s annual compensation.  For this
purpose annual compensation means (x) the Executive’s Base
Salary on the date of the Change in Control or on the date of the Executive’s
employment termination (at whichever date the Executive’s Base Salary is
greater, but excluding any compensation earned in the Executive’s capacity as a
director), plus (y) any
bonus awarded for the most recent whole calendar year before the year in which
the Change in Control occurred or for the most recent whole calendar year before
the year in which employment termination occurred (whichever is greater),
regardless of whether the bonus is paid in the year earned or in a later
calendar year and regardless of whether the bonus is subject to elective
deferral or vesting.  Annual compensation shall be calculated without
regard to any deferrals under qualified or nonqualified plans, but annual
compensation shall not include interest or other earnings credited to the
Executive under qualified or nonqualified plans.  The amount payable
to the Executive hereunder shall not be reduced to account for the time value of
money or discounted to present value.  The payment required under this
paragraph (a) is payable no later than five business days after employment
termination, but if the Bank determines that payment must be delayed to comply
with Internal Revenue Code section 409A the payment required by this paragraph
(a) shall be made on the first day of the seventh month after the month in which
employment termination occurs.  The Bank and the Executive acknowledge
and agree that all other payments following termination, under section 3.1 shall
not be payable if the Executive’s employment termination occurs within 24 months
after a Change in Control or if compensation and benefits are payable or shall
have been paid previously to the Executive under this section 6.2.

    

    (b)           If
a Change in Control occurs and within 24 months thereafter the Bank terminates
the Executive’s employment other than for Cause or the Executive terminates
employment Voluntarily with Good Reason, the Bank shall cause the Executive to
become fully vested in awards under any stock option, stock incentive, or other
non-qualified plans, programs, or arrangements in which the Executive
participated if (x) the
plan, program, or arrangement does not address the effect of a change in control
or termination after a change in control and (y) award vesting occurs
automatically with the passage of time or years of service.  Provided
the Executive is at the time a covered employee within the meaning of Internal
Revenue Code section 162(m), accelerated vesting in or entitlement to awards
shall not occur under this section 6.2(b) in the case of any award for which
vesting or entitlement is based on achievement of performance conditions,
whether the conditions have to do with individual performance or corporate
performance measures, including but not limited to stock price or financial
statement or other financial measures.

    
      
         

      

      
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    ARTICLE
7

    MISCELLANEOUS

    

    7.1           Successors and
Assigns.

    

    (a)           This Agreement is binding on the
Bank’s successors.  This Agreement shall be binding upon the
Bank and any successor to the Bank, including any persons acquiring directly or
indirectly all or substantially all of the business or assets of the Bank by
purchase, merger, consolidation, reorganization, or otherwise.  But
this Agreement and the Bank’s obligations under this Agreement are not otherwise
assignable, transferable, or delegable by the Bank.  By agreement in
form and substance satisfactory to the Executive, the Bank shall require any
successor to all or substantially all of the business or assets of the Bank to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent the Bank would be required to perform if no such succession had
occurred.

    

    (b)           This Agreement is personal in nature
and is not assignable.  This Agreement is personal in
nature.  Without written consent of the other parties, no party shall
assign, transfer, or delegate this Agreement or any rights or obligations under
this Agreement except as expressly provided herein.  Without limiting
the generality or effect of the foregoing, the Executive’s right to receive
payments hereunder is not assignable or transferable, whether by pledge,
creation of a security interest, or otherwise, except for a transfer by the
Executive’s will or by the laws of descent and distribution.  If the
Executive attempts an assignment or transfer that is contrary to this section
6.1, the Bank shall have no liability to pay any amount to the assignee or
transferee.

    

    7.2           Governing Law, Jurisdiction, and
Forum.  This Agreement shall be construed under and governed by
the laws of the State of South Carolina, without giving effect to any conflict
of laws provision or rule (whether of the State of South Carolina or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of South Carolina.  By entering into this
Agreement, the Executive acknowledges that he is subject to the jurisdiction of
both the federal and state courts in the State of South Carolina.  Any
actions or proceedings instituted under this Employment Agreement shall be
brought and tried solely in courts located in Florence County, South Carolina or
in the federal court having jurisdiction in Florence, South
Carolina.  The Executive expressly waives the right to have any such
actions or proceedings brought or tried elsewhere.

    
      
         

      

      
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    7.3           Entire
Agreement.  This Agreement sets forth the entire agreement of
the parties concerning the employment of the Executive.  Any oral or
written statements, representations, agreements, or understandings made or
entered into prior to or contemporaneously with the execution of this Agreement
are hereby rescinded, revoked, and rendered null and void by the
parties.

    

    7.4           Notices.  All
notices, requests, demands, and other communications hereunder shall be in
writing and shall be deemed to have been duly given if delivered by hand or
mailed, certified or registered mail, return receipt requested, with postage
prepaid.  Unless otherwise changed by notice, notice shall be properly
addressed to the Executive if addressed to the address of the Executive on the
books and records of the Bank at the time of the delivery of notice, and
properly addressed to the Bank if addressed to the Board of Directors, First
Reliance Bancshares, Inc., 2170 West Palmetto Street, Florence, South Carolina
29501.

    

    7.5           Severability.  If
there is a conflict between any provision of this Agreement and any statute,
regulation, or judicial precedent, the latter shall prevail, but the affected
provisions of this Agreement shall be curtailed and limited solely to the extent
necessary to bring them within the requirements of law.  If any
provision of this Agreement is held by a court of competent jurisdiction to be
indefinite, invalid, void or voidable, or otherwise unenforceable, the remainder
of this Agreement shall continue in full force and effect unless that would
clearly be contrary to the intentions of the parties or would result in an
injustice.

    

    7.6           Captions and
Counterparts.  The captions in this Agreement are solely for
convenience.  The captions in no way define, limit, or describe the
scope or intent of this Agreement.  This Agreement may be executed in
several counterparts, each of which shall be deemed to be an original but all of
which together shall constitute one and the same instrument.

    

    7.7           Amendment and
Waiver.  This Agreement may not be amended, released,
discharged, abandoned, changed, or modified in any manner, except by an
instrument in writing signed by each of the parties hereto.  The
failure of any party hereto to enforce at any time any of the provisions of this
Agreement shall not be construed to be a waiver of any such provision, nor
affect the validity of this Agreement or any part thereof or the right of any
party thereafter to enforce each and every such provision.  No waiver
or any breach of this Agreement shall be held to be a waiver of any other or
subsequent breach.

    

    7.8           Payment of Legal
Fees.  The Bank is aware that after a Change in Control
management could cause or attempt to cause the Bank to refuse to comply with its
obligations under this Agreement, or could institute or cause or attempt to
cause the Bank to institute litigation seeking to have this Agreement declared
unenforceable, or could take or attempt to take other action to deny Executive
the benefits intended under this Agreement.  In these circumstances
the purpose of this Agreement would be frustrated.  The Bank desires
that the Executive not be required to incur the expenses associated with the
enforcement of rights under this Agreement, whether by litigation or other legal
action, because the cost and expense thereof would substantially detract from
the benefits intended to be granted to the Executive hereunder.  The
Bank desires that the Executive not be forced to negotiate settlement of rights
under this Agreement under threat of incurring expenses.  Accordingly,
if after a Change in Control occurs it appears to the Executive that (x) the Bank has failed to
comply with any of its obligations under this Agreement, or (y) the Bank or any other
person has taken any action to declare this Agreement void or unenforceable, or
instituted any litigation or other legal action designed to deny, diminish, or
to recover from the Executive the benefits intended to be provided to the
Executive hereunder, the Bank irrevocably authorizes the Executive from time to
time to retain counsel of the Executive’s choice, at the Bank’s expense as
provided in this section 7.8, to represent the Executive in the initiation or
defense of any litigation or other legal action, whether by or against the Bank
or any director, officer, stockholder, or other person affiliated with the Bank,
in any jurisdiction.  Despite any existing or previous attorney-client
relationship between the Bank and any counsel chosen by the Executive under this
section 7.8, the Bank irrevocably consents to the Executive entering into an
attorney-client relationship with that counsel and the Bank and the Executive
agree that a confidential relationship shall exist between the Executive and
that counsel.  The fees and expenses of counsel selected from time to
time by the Executive as provided in this section shall be paid or reimbursed to
the Executive by the Bank on a regular, periodic basis upon presentation by the
Executive of a statement or statements prepared by counsel in accordance with
counsel’s customary practices, up to a maximum aggregate amount of $100,000,
whether suit be brought or not, and whether or not incurred in trial,
bankruptcy, or appellate proceedings.  The Bank’s obligation to pay
the Executive’s legal fees provided by this section 7.8 operates separately from
and in addition to any legal fee reimbursement obligation the Bank may have with
the Executive under any separate severance or other
agreement.  Despite anything in this Agreement to the contrary
however, the Bank shall not be required to pay or reimburse Executive’s legal
expenses if doing so would violate section 18(k) of the Federal Deposit
Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit
Insurance Corporation [12 CFR 359.3].

    
      
         

      

      
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    7.9           Consultation with Counsel and
Interpretation of this Agreement.  The Executive acknowledges
and agrees that the Executive has had the assistance of counsel of the
Executive’s choosing in the negotiation of this Agreement, or the Executive has
chosen not to have the assistance of the Executive’s own
counsel.  Both the Bank and the Executive have participated in the
negotiation and drafting of this Agreement, and they hereby agree that there
shall not be strict interpretation against either party in connection with any
review of this Agreement in which interpretation thereof is an
issue.

    

    7.10           Compliance with Internal Revenue Code
Section 409A.  The Bank and the Executive intend that their
exercise of authority or discretion under this Agreement shall comply with
section 409A of the Internal Revenue Code of 1986.  If when the
Executive’s employment terminates the Executive is a specified employee, as
defined in section 409A of the Internal Revenue Code of 1986, and if any
payments under this Agreement, including Articles 4 or 5, will result in
additional tax or interest to the Executive because of section 409A, then
despite any provision of this Agreement to the contrary the Executive shall not
be entitled to the payments until the earliest of (x) the date that is at least
six months after termination of the Executive’s employment for reasons other
than the Executive’s death, (y) the date of the
Executive’s death, or (z) any earlier date that does
not result in additional tax or interest to the Executive under section
409A.  As promptly as possible after the end of the period during
which payments are delayed under this provision, the entire amount of the
delayed payments shall be paid to the Executive in a single lump
sum.  If any provision of this Agreement does not satisfy the
requirements of section 409A, the provision shall nevertheless be applied in a
manner consistent with those requirements.  If any provision of this
Agreement would subject the Executive to additional tax or interest under
section 409A, the Bank shall reform the provision.  However, the Bank
shall maintain to the maximum extent practicable the original intent of the
applicable provision without subjecting the Executive to additional tax or
interest, and the Bank shall not be required to incur any additional
compensation expense as a result of the reformed provision.

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.

    

    
      	 
      	
              EXECUTIVE

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	      
              /s/ Craig S.
Evans

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              FIRST
      RELIANCE BANK

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ F. R. Saunders Jr.

            
	 
      	 
      	
              F.
      R. Saunders Jr.

            
	 
      	
              Its:

            	
              President
      and Chief Executive Officer

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              FIRST
      RELIANCE BANCSHARES, INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ F. R. Saunders Jr.

            
	 
      	 
      	
              F.
      R. Saunders Jr.

            
	 
      	
              Its:

            	
              President
      and Chief Executive Officer

            

    

    
      
         

      

      
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]