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Exhibit 10.9.2    
    

SECOND AMENDMENT TO CREDIT AGREEMENT  

        SECOND AMENDMENT dated as of September 7, 2005 (this "Second Amendment") among VERIFONE INTERMEDIATE
HOLDINGS, INC., a Delaware corporation ("Holdings"), VERIFONE, INC., a Delaware corporation (the
"Borrower"), the Lenders signatory hereto and BANK OF AMERICA, N.A., as Administrative Agent for the Lenders (in such capacity, the
"Administrative Agent"). 

        Holdings,
the Borrower, the lenders party thereto from time (each a "Lender" and, collectively, the
"Lenders"), the Administrative Agent, Credit Suisse First Boston, Cayman Islands Branch, as Syndication Agent, and Wells Fargo Bank, N.A., as
Documentation Agent, are parties to a Credit Agreement dated as of June 30, 2004, as amended by a First Amendment dated as of March 23, 2005 (the "Credit
Agreement"). Holdings and the Borrower have requested that the Lenders agree to certain amendments to, and waivers of, the Credit Agreement, and each of the Lenders signatory
hereto (which Lenders collectively constitute the Required Lenders referred to in the Credit Agreement), have agreed, subject to the terms and conditions set forth herein, to amend the Credit
Agreement and consent to such waivers as herein provided. Accordingly, Holdings, the Borrower and the Lenders signatory hereto agree as follows: 

ARTICLE I

DEFINITIONS  

        Section 1.01 Definitions.    Unless otherwise defined herein, capitalized
terms defined in the Credit Agreement have the same meanings when used in this Second Amendment. The flowing additional term, as used herein, as the following meaning: 

        "Consenting Lender" means each Senior Lender that consents to this Second Amendment on or prior to September 2, 2005, as evidenced
by the receipt by Fried, Frank, Harris, Shriver & Jacobson LLP,
counsel to the Administrative Agent, of an executed counterpart signature page to this Second Amendment from such Lender prior to 5:00 P.M. (Local time in New York City) on September 2,
2005. 

ARTICLE II

AMENDMENTS TO THE CREDIT AGREEMENT  

 Section 2.01 Amendments to the Credit Agreement.

        (a)   The
definition of Excluded Equity Issuance in Section 1.01 of the Credit Agreement is hereby amended to read in
full as follows: 

        "Excluded Equity Issuance" means (i) any issuance by any Subsidiary of the Borrower of its Equity Interests to the Borrower or any
other Subsidiary of the Borrower, (ii) the receipt by any Subsidiary of the Borrower of a capital contribution from the Borrower or a Subsidiary of the Borrower, (iii) any issuance of
Equity Interests in Parent Holdings or Holdings (other than Debt Equivalents) to management or employees of Parent Holdings or Holdings, the Borrower or any of its Subsidiaries under any employee
stock option or stock purchase plan or other employee benefit plan in existence from time to time, the Net Cash Proceeds of which are contributed promptly to the common equity (whether through
issuance of common shares or capital contribution) of the Borrower, (iv) any Qualifying Equity Issuance by Parent Holdings, (v) any issuance of common stock of Parent Holdings or
Holdings pursuant to a Qualifying Public Offering, (vi) any issuance of Equity Interests to qualify directors where required by applicable Law or to satisfy other requirements of applicable Law
with respect to the ownership of Equity Interests of Foreign Subsidiaries and (vii) any issuance of Equity Interests by Parent Holdings to, or any receipt by Parent Holdings of a capital
contribution from, the Sponsor in an aggregate amount not exceeding $30,000,000 from and after the Closing Date, the Net Cash Proceeds of which are contributed 

 

promptly
to the common equity (whether through issuance of common shares or capital contribution) of the Borrower. 

        (b)   Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of "Excluded IPO Proceeds". 

        (c)   The
definition of "Leverage Ratio" in Section 1.01 of the Credit
Agreement is hereby amended by adding the phrase ", less the amount of Holdings' consolidated unrestricted cash and cash equivalents as of such date in excess of $10,000,000," immediately after
the word "date" in clause (i) of such definition. 

        (d)   Section 1.01 of the Credit Agreement is hereby amended by adding the following definition: 

        "Qualifying Public Offering" means an underwritten primary public offering (or an offering to management or employees of Parent Holdings,
Holdings, the Borrower or any of its Subsidiaries under any employee stock option or stock purchase plan or other employee benefit plan in existence from time to time pursuant to a registration
statement on Form S-8 (or any successor form)) of the common stock of Parent Holdings or Holdings pursuant to an effective registration statement filed with the SEC in accordance
with the Securities Act (whether alone or in conjunction with a secondary public offering). 

        (e)   The
definition of "Senior Leverage Ratio" in Section 1.01 of the
Credit Agreement is hereby amended by adding the phrase ", less the amount of Holdings' consolidated unrestricted cash and cash equivalents as of such date in excess of $10,000,000,"
immediately after the word "date" in clause (i) of such definition. 

        (f)    The
definition of "Senior Secured Leverage Ratio" in Section 1.01
of the Credit Agreement is hereby amended by adding the phrase ", less the amount of Holdings' consolidated unrestricted cash and cash equivalents as of such date in excess of $10,000,000,"
immediately after the word "date" in clause (i) of such definition. 

        (g)   Section 2.09(b)(ii) of the Credit Agreement is hereby amended by changing the reference to a ratio of "2.5 to 1.0"
to a ratio of "3.0 to 1.0". 

        (h)   Section 2.09(b)(iii) is hereby amended by changing the $1,000,000 limitation specified therein to $5,000,000. 

        (i)    Section 2.09(b)(v) of the Credit Agreement is hereby amended to read in full as follows: 

        "(v)
Equity Issuances. Within five Business Days after receipt by any Group Company of Net Cash Proceeds from any Equity Issuance (other
than in respect of any Excluded Equity Issuance), the Borrower shall prepay the Senior Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to 50% of the Net Cash Proceeds
of such Equity Issuance." 

        (j)    Section 2.09(b)(vii)(B) of the Credit Agreement is hereby amended by deleting the phrase "(first sentence)"
immediately after the reference to clause (v) therein. 

        (k)   Section 2.09(n)(vii)(C) of the Credit Agreement is hereby amended by deleting the clause "or (v)" therein. 

        (l)    Section 2.10(a)(i) of the Credit Agreement is hereby amended by substituting the limit on aggregate Facilities
Increases from $100,000,000 to $150,000,000. 

        (m)  Section 7.14(b) of the Credit Agreement is hereby amended by changing the "50%" limitation therein to "100%". 

2

 

        (n)   The
Schedule of Applicable Basket Amounts constituting Schedule 1.01D to the Credit Agreement is hereby amended by
changing certain basket amounts applicable to the Senior Lenders to the respective amounts set forth below: 

	Credit Agreement Section
 
	 	Senior Lenders

	7.01(iii) Capital Leases etc.	 	$10,000,000
	

7.01(xi) Debt of Foreign Subs	
 	

$20,000,000
	

7.01(xvii) General Unsecured Debt Basket	
 	

$15,000,000
	

7.02(xxiv) General Lien Basket	
 	

$10,000,000
	

7.06(a)(xi) Foreign Subsidiaries	
 	

$15,000,000

ARTICLE III

CONDITIONS TO EFFECTIVENESS  

        Section 3.01 Conditions to Effectiveness of this Second Amendment.    This Second Amendment, and
the amendments, waivers and consents contained herein, shall become effective as of the date hereof on the date (the "Second Amendment Effective Date")
when each of the following conditions precedent have been fulfilled to the reasonable satisfaction of the Administrative Agent: 

        (a)    Execution and Delivery of this Second Amendment.    Holdings, the Borrower and the Required Lenders shall have
signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile transmission) the same to Fried, Frank, Harris, Shriver &
Jacobson, LLP, One New York Plaza, 10004 Attention: Joyce Chang (facsimile 212-859-8586). 

        (b)    Acknowledgement.    The Administrative Agent shall have received counterparts of an Acknowledgement and
Agreement, substantially in the form of Exhibit A hereto, duly executed by each of the Loan Parties (other than Holdings and the Borrower). 

        (c)    Fees in Respect of Second Amendment.    The Borrower shall have paid to the Administrative Agent for the
account of each Consenting Lender a fee equal to 5.0 basis points on each such Consenting Lender's Revolving Commitment and on the aggregate outstanding principal amount of its Term B Loans on the
Second Amendment Effective Date. 

        (d)    Counsel Fees.    The Administrative Agent shall have received full payment from the Borrower of the fees and
expenses of Fried, Frank, Harris, Shriver & Jacobson LLP described in Section 5.05 of the First Amendment and this Second Amendment which
are billed through the Second Amendment Effective Date. 

        (e)    Other.    The Administrative Agent shall have received such other documents, instruments, agreements or
information as may be reasonably requested by the Administrative Agent. 

        Section 3.02 General Conditions.    All corporate and legal proceedings and all instruments and
agreements relating to the transactions contemplated by this Second Amendment or in any other document delivered in connection therewith shall be reasonably satisfactory in form and substance to the
Administrative Agent and its counsel, and the Administrative Agent shall have received all information, if any, which the Administrative Agent may reasonably have requested. The documents referred to
in this Section shall be delivered to the Administrative Agent no later than the Second Amendment Effective Date. 

3

 

 Section 3.03 Effects of this Second Amendment.

        (a)   On
the Second Amendment Effective Date, the Credit Agreement will be automatically amended to reflect the amendments thereto provided for in this Second Amendment. On
and after the Second Amendment Effective Date, the rights and obligations of the parties hereto shall be governed by the Credit Agreement, as amended by this Second Amendment. Once the Second
Amendment Effective Date has occurred, all references to the Credit Agreement in any document, instrument, agreement, or writing shall be deemed to refer to the Credit Agreement as amended by this
Second Amendment. Promptly after the Second Amendment Effective Date occurs, the Administrative Agent shall notify the Borrower and the Lenders of the Second Amendment Effective Date, and such notice
shall be conclusive and binding on all parties hereto. 

        (b)   Other
than as specifically provided herein, this Second Amendment shall not operate as a waiver or amendment of any right, power or privilege of the Administrative Agent
or any Lender under the Credit Agreement or any other Loan Document or of any other term or condition of the Credit Agreement or any other Loan Document, nor shall the entering into of this Second
Amendment preclude the Administrative Agent and/or any Lender from refusing to enter into any further waivers or amendments with respect thereto. This Second Amendment is not intended by any of the
parties hereto to be interpreted as a course of dealing which would in any way impair the rights or remedies of the Administrative Agent or any Lender except as expressly stated herein, and no Lender
shall have any obligation to extend credit to the Borrower other than pursuant to the strict terms of the Credit Agreement and the other Senior Finance Documents, as amended or supplemented to date
(including by means of this Second Amendment). 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES  

        Section 4.01 Representations and Warranties.    In order to induce the Lenders to consent to the
amendments and waivers contained herein and to enter into this Second Amendment, each of Holdings and the Borrower represents and warrants as set forth below: 

        (a)   After
giving effect to this Second Amendment, the amendment of the Credit Agreement does not impair the validity, effectiveness or priority of the Liens granted pursuant
to the Collateral Documents, and such Liens continue unimpaired with the same priority to secure repayment of all Finance Obligations, whether heretofore or hereafter incurred. The position of the
Lenders with respect to such Liens, the Collateral in which a security interest was granted pursuant to the Collateral Documents and the ability of the Administrative Agent to realize upon such Liens
pursuant to the terms of the Collateral Documents have not been adversely affected in any material respect by the amendment of the Credit Agreement effected pursuant to this Second Amendment or by the
execution, delivery, performance or effectiveness of this Second Amendment. 

        (b)   Each
of Holdings and the Borrower reaffirms as of the Second Amendment Effective Date its covenants and agreements contained in the Credit Agreement and each Collateral
Document and other Senior Finance Document to which it is a party, including, in each case, as such covenants and agreements may be modified by this Second Amendment on the Second Amendment Effective.
Each of Holdings and the Borrower further confirms that each such Senior Finance Document to which it is a party is, and shall continue to be, in full force and effect, and the same are hereby
ratified, approved and confirmed in all respects, except as the Credit Agreement may be modified by this Second Amendment. 

        (c)   Both
immediately before and immediately after giving effect to this Second Amendment, the representations and warranties set forth in  Article V of the Credit Agreement and each other Senior Finance
Document are, in each case, true and correct in all material respects (unless
stated to relate 

4

 

solely
to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date). 

        (d)   This
Second Amendment constitutes the legal, valid and binding obligation of each of Holdings and the Borrower enforceable in accordance with its terms, subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors' rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 

        (e)   The
parties signatory to the Acknowledgment and Agreement delivered pursuant to Section 3.01(b) of this Second
Amendment constitute all of the Persons who (together with Holdings and the Borrower) are or are required under the terms of the Senior Finance Documents to be Loan Parties. 

        (f)    The
written statements and information contained in this Second Amendment and the other documents, certificates and statements furnished to the Administrative Agent and
the Lenders on or prior to the Second Amendment Effective Date by or on behalf of any Loan Party for use in connection with the transactions contemplated by this Second Amendment, taken as a whole, do
not, as of the Second Amendment Effective Date, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not
materially misleading. 

ARTICLE V

MISCELLANEOUS  

        Section 5.01 Headings.    The various headings of this Second Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this Second Amendment or any provisions hereof. 

        Section 5.02 Execution in Counterparts.    This Second Amendment may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. A counterpart hereof executed and delivered
by facsimile shall be effective as an original. 

        Section 5.03 Successors and Assigns.    This Second Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. 

        Section 5.04 Governing Law; Entire Agreement.    THIS SECOND AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. This Second Amendment and the other Senior Finance Documents
constitute the entire understanding among the parties hereto with respect to the subject matter hereof and supersede any prior agreements, written or oral, with respect thereto. 

        Section 5.05 Fees and Expenses.    The Borrower agrees to pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation, negotiation, execution, delivery and enforcement of this Second Amendment and
the other documents and instruments referred to herein or contemplated hereby, including, but not limited to, the fees and disbursements of Fried, Frank, Harris, Shriver & Jacobson LLP, counsel
to the Administrative Agent. 

        Section 5.06 Senior Finance Document Pursuant to Credit Agreement.    This Second Amendment is a
Senior Finance Document executed pursuant to the Credit Agreement and shall be construed, administered and applied in accordance with all of the terms and provisions of the Credit Agreement (and,
following the date hereof, the Credit Agreement, as amended hereby). 

[Signature
Pages Follow] 

5

   
        IN WITNESS WHEREOF, the signatories hereto have caused this Second Amendment to be executed by their respective officers thereunto duly authorized as of the day and year first above
written. 

	HOLDINGS:	 	VERIFONE INTERMEDIATE HOLDINGS, INC.
	

 	
 	

By:	

/s/  B. ZWARENSTEIN      

	 	 	 	Name:	B. Zwarenstein
	 	 	 	Title:	Chief Financial Officer
	

BORROWER:	
 	

VERIFONE, INC.
	

 	
 	

By:	

/s/  B. ZWARENSTEIN      

	 	 	 	Name:	B. Zwarenstein
	 	 	 	Title:	Chief Financial Officer
	

ADMINISTRATIVE AGENT:	
 	

BANK OF AMERICA, N.A.,

as Administrative Agent
	

 	
 	

By:	

/s/  JOAN MOK      

	 	 	 	Name:	Joan Mok
	 	 	 	Title:	Assistant Vice President

S-1

 

	LENDERS:	 	SIGNATURE PAGE TO THE SECOND AMENDMENT DATED AS OF SEPTEMBER 7, 2005 TO THE CREDIT AGREEMENT DATED AS OF JUNE 30, 2004, AS AMENDED AS OF MARCH 23, 2005, AMONG VERIFONE INTERMEDIATE HOLDINGS, INC., VERIFONE,
INC., THE LENDERS PARTY THERETO FROM TIME, BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT, CREDIT SUISSE FIRST BOSTON, CAYMAN ISLANDS BRANCH, AS SYNDICATION AGENT, AND WELLS FARGO BANK, N.A., AS DOCUMENTATION AGENT BANK OF AMERICA, N.A., AS
ADMINISTRATIVE AGENT
	

 	
 	

BANK OF AMERICA, N.A., as Administrative Agent, for and on behalf of the Required Lenders as provided in Section 10.01 of the Credit Agreement
	

 	
 	

By:	

/s/  JOAN MOK      

	 	 	 	Name:	Joan Mok
	 	 	 	Title:	Assistant Vice President

S-2

Exhibit A  

ACKNOWLEDGEMENT AND AGREEMENT  

        Each Loan Party listed below hereby acknowledges that it has reviewed the Second Amendment to the Credit Agreement to which this Acknowledgement and Agreement is
attached as an exhibit (the "Amendment") and hereby consents to the execution, delivery and performance thereof by each of Holdings and the Borrower.
Each Loan Party hereby confirms its obligation under each Senior Finance Document to which it is a party and agrees that, after giving effect to the Amendment, neither the modification of the Credit
Agreement or any other Senior Finance Document effected pursuant to the Amendment, nor the execution, delivery, performance or effectiveness of the Amendment or any other Senior Finance Document
impairs the validity or effectiveness of any Senior Finance Document to which it is a party or impairs the validity, effectiveness or priority of the Liens granted pursuant to any other Senior Finance
Document to which it is a party or by which it is otherwise bound. Each Loan Party hereby further agrees that the Liens created pursuant to the Senior Finance Documents continue unimpaired with the
same enforceability and priority to secure repayment of all Loans and other obligations arising thereunder, whether heretofore or hereafter incurred. Under the foregoing circumstances, the position of
the Administrative Agent and the Lenders with respect to such Liens, the Collateral in which a security interest was granted pursuant to the Senior Finance Documents, and the ability of the
Administrative Agent to enforce the provisions of the Senior Finance Documents and to realize upon such Liens pursuant to the terms of the Senior Finance Documents, have not been adversely affected in
any material respect by the modification of the Credit Agreement, the modification of any other Senior Finance Document effected pursuant to the Amendment or the execution, delivery, performance or
effectiveness of the Amendment. 

	 	 	[LOAN PARTY NAME]
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	

[LOAN PARTY NAME]
	

 	
 	

By:	

    
 Name:

Title:

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Exhibit 10.4  

 
 

ORGANIZER CONTRIBUTION AND
  JOINT VENTURE AGREEMENT    
    

        THIS ORGANIZER CONTRIBUTION AND JOINT VENTURE AGREEMENT (the "Agreement") is entered into among the Organizers (as defined below) of a proposed bank to be located
in Greenville, South Carolina (the "Bank"). 

 
 

PREAMBLE    
    

        The undersigned organizers of the Bank, and those who may hereafter join in the execution of this Agreement as additional organizers of the Bank at the invitation
of the original organizers (collectively, the "Organizers"), have agreed to join together for the purpose of preparing and filing an application with the appropriate authorities to organize the Bank
and, if deemed desirable, a holding company for the Bank. The Organizers have agreed among themselves to underwrite the organizational and pre-opening expenses of the Bank, subject to
being reimbursed out of the proceeds of the initial capitalization of the Bank. The Organizers anticipate obtaining a line of credit, guaranteed by the Organizers, to be used to fund these expenses,
but will be subject to capital calls for the expenses if necessary. The Organizers desire to divide among themselves responsibility for payment of such expenses in the event the proposed organization
of the Bank is unsuccessful. 

        FOR
AND IN CONSIDERATION of the foregoing, the undersigned agree as follows: 

        1.    Formation.    The Organizers hereby form and create a joint venture for the purposes and on the terms and
conditions herein set forth (the "Venture"). The name of the Venture shall be NGCB Partners. If the Organizers determine to form a holding company for the Bank, the organizational activities
described in this Agreement will be conducted through the holding company, in accordance with its articles of incorporation and bylaws. If deemed appropriate by the Manager (as defined below), the
Organizers may form a limited liability company through which to conduct these organizational activities. 

        2.    Purposes.    The purposes of this Venture are to fund and administer the organization of the Bank, to pay the
expenses incident thereto, and to acquire for the benefit of the Bank (or in the event of the unsuccessful organization of the Bank, for investment and subsequent disposition) real property for use as
the Bank's offices, and to enter into agreements and execute other instruments and documents incident to these purposes. 

        3.    Service on the Board of Directors of the Holding Company and the Bank.    It is currently anticipated that each
of the Organizers will serve as a member of the board of directors of the holding company and the Bank. However, execution of this Agreement does not entitle the person signing it to serve on the
board of either the holding company or the Bank. These decisions will be made by a majority vote of the Organizers. As noted in Paragraph 8 below, any Organizer may be removed as an Organizer
of the Venture by majority vote of the Organizers. 

        4.    Contribution to Capital.    With the exception of Russ Williams and Paula King, each of the Organizers shall
contribute $10,000 (the "Share") to the Venture at the time such Organizer executes this Agreement. The Organizers contemplate that these funds will be invested in an account to be used for
organizational expenses to the extent necessary. In lieu of a $10,000 contribution to the Venture, Russ Williams and Paula King will forego salaries and contribute their full time and effort to the
Venture until July 1, 2005. The Organizers also contemplate that the Venture or the holding company will obtain a line of credit from another financial institution (the "Lender"), which line of
credit will be or has been guaranteed by each of the Organizers and which may be secured by the organizational bank account. The Organizers contemplate that the line of credit will be used for all
organizational expenses and will be repaid by the Bank once it opens, but the Organizers acknowledge that they will be responsible for the organizational expenses to the extent they are not covered by
the line of credit. 

        5.    Rights of Contribution.    

        (a)   The
Organizers agree that if any Organizer shall at any time have paid to the Lender, with respect to the line of credit, an amount in excess of his Share of the total
amount paid by the Organizers ("Total Payment"), such Organizer shall have a right of contribution against the other Organizers as set forth in Paragraph 5(b) below. The Organizers further
agree that the rights and obligations set forth in the foregoing sentence shall be in full force and effect notwithstanding any provision of applicable law or any provision in any other loan document
to the contrary, or any such provision which might be implied or construed to suggest a contrary result, including any provisions whereby the parties, as Organizers, waive any rights against, or any
obligations of, the Lender, except to the extent this right of contribution is subordinate to the Lender's rights. 

        (b)   Each
of the Organizers agrees that if one or more Organizers (the "Paying Parties") have paid an amount which exceeds his or their Shares of the Total Payment at any
given time ("Excess Amount"), the remaining Organizers shall, on demand, collectively pay the Excess Amount to the Paying Parties,
so that after such payments to the Paying Parties each of the Organizers ultimately bears a pro rata portion (based on the total number of Organizers) of the Total Payment. The rights and obligations
set forth in this Paragraph 5(b) shall apply to all payments made by an Organizer whether made voluntarily or involuntarily, including amounts realized by the Lender through execution on one or
more judgments obtained to enforce the guaranties. 

        (c)   In
the event of any payment of an Excess Amount under this Agreement, the Paying Party shall be subrogated to all of rights of recovery of the Lender and its
subsidiaries and affiliates under the Guaranty, and such right of subrogation may be enforced pursuant to any cause of action in law or equity. 

        6.    Management.    

        (a)   Control
of the Venture and all of its affairs shall be in the Organizers. Except as specified below, decisions shall be made and actions approved by a majority in number
of the Organizers, except that no Organizer shall be entitled to vote until he or she has contributed the amount of capital required under Paragraph 4. 

        (b)   If
the Organizers determine it to be in the best interest of the Venture, the Organizers may form an Executive Committee for the Venture. The Executive Committee shall
have the authority to conduct those organizational activities delegated to it by Organizers. The members of the Executive Committee shall be appointed by a vote of the majority of Organizers. 

        (c)   The
Organizers designate Russel T. Williams as manager of the Venture (the "Manager"). The Manager is to serve in such capacity until such time as the Organizers
designate a new Manager by a vote of at least 70% of the Organizers. The Manager shall not receive a salary or any other compensation for serving as the Manager, except as determined from time to time
by the affirmative vote of at least 70% of the Organizers. However, the Organizers also intend to enter into employment agreements with Russel T. Williams and Paula S. King. If the Organizers
determine to form a holding company for the Bank, these employment agreements will be entered into with or assigned to the holding company, and the organizational activities described in this
Agreement will be conducted through the holding company, in accordance with its articles of incorporation and bylaws. Nevertheless, until the opening of the Bank, each Organizer will be personally
responsible for a pro rata portion (based on the total number of Organizers) of the amounts due under the employment agreements in the event such amounts are not paid by the holding company. 

        (d)   The
Organizers hereby delegate to the Manager the responsibility for the day-to-day management and ministerial acts of the Venture, and all
questions relating to the usual daily business affairs and ministerial acts of the Venture shall rest in the Manager. Subject to the express limitations of this Agreement, the Manager is authorized to
do any and all things and to execute and deliver on behalf of the Venture any and all agreements, instruments and other documents necessary to effectuate the purposes of the Venture. The Manager shall
keep accurate books of account of the Venture's collections and expenditures, which shall be open to inspection 

by
any Organizer at any reasonable time. The Manager shall furnish periodic reports of the Venture's collections and expenditures to the Organizers. 

        (e)   No
Organizer (including the Manager) shall, without the consent of a majority of the Organizers (or the Executive Committee, if one is formed): 

	(i)
	do
any act in contravention of this Agreement;

	(ii)
	do
any act which would make it impossible to carry on the business of the Venture;

	(iii)
	borrow
money in the Venture's name, or utilize collateral owned by the Venture as security for such loans (except for the line of credit from the Lender referenced in
Paragraph 4 above, which the Organizers hereby approve and authorize the Manager to obtain);

	(iv)
	enter
into any contract on behalf of or which binds the Venture; or

	(v)
	pledge
or transfer his or her interest in the Venture, except pursuant to this Agreement. 

        7.    Reimbursement of Contributions.    The Organizers contemplate that, upon preliminary approval by the regulatory
authorities of the application to organize the Bank, the initial capitalization of the Bank will be accomplished through a public offering of common stock of the Bank or its holding company. Upon
completion of the offering, the Organizers contemplate that the holding company or Bank will promptly reimburse the Organizers (including any Organizer who has withdrawn or been removed from the
Venture) for the organizational expenses advanced by them. Each of the Organizers contemplates that he or she will purchase at least the dollar amount of stock in the offering set out beside his or
her name on the signature page hereto. This is a nonbinding statement of intent, and the stock of the Bank or holding company will be offered only pursuant to a prospectus or offering circular. If the
application to organize does not receive regulatory approval, or if the offering of stock is not successful in raising the minimum capitalization required to open the Bank, or if the Organizers by
majority vote elect to abandon the Venture, then the organizational expenses will be borne by the Organizers. Such expenses will be paid first from the account referenced in Paragraph 4 above
and, to the extent necessary, each Organizer will be responsible for his or her pro rata portion (based on the total number of Organizers) of any remaining expenses. The amount of any deficit due the
organizational expense fund or any surplus from the expense fund which may be reimbursed to the Organizers shall be computed by the Manager and shall be promptly paid after abandonment of the Venture. 

        8.    Withdrawal or Removal of an Organizer.    Any Organizer may withdraw from the Venture upon written notice to the
Manager. A withdrawing Organizer shall not be entitled to any refund of any funds paid into the Venture, reimbursement for funds paid for the Venture, or release from the line of credit or other
obligations as an Organizer except as set forth in Paragraph 7 above. Any Organizer may be removed as an Organizer of the Venture upon a vote of a majority of the remaining Organizers. In such
event, the remaining Organizers shall reimburse the removed Organizer for all funds paid into the Venture and cause such removed Organizer to be released from the line of credit and other obligations
as an Organizer. 

        9.    Additional Organizers.    This Agreement will remain open for execution by additional Organizers who are invited
to join the organizing group by the consent of a majority of the then existing Organizers. 

        10.    Miscellaneous.    This Agreement shall be construed under and in accordance with the laws in the state of South
Carolina. This Agreement may be executed by the Organizers in two or more counterparts, each of which shall be an original but all of which shall constitute one and the same instrument. 

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

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Jeffrey Dezen

Address: 103 Holbrook Trail

Greenville, SC 29605

Email:                .	 	/s/ Jeffrey Dezen

April 13, 2005	 	$150,000
	Telephone:	 	864-271-4109(H)

864-                (C)

864-233-3776(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Roger H. Gower, MD

Address: 140 Seven Oaks Drive

Greenville, SC 29605	 	/s/ Roger H. Gower April 13, 2005	 	$200,000
	Email: rhg1031@aol.com	 	 	 	 
	Telephone:	 	864-235-0708(H)

864-270-3548(C)

864-295-4210(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Frank B. Halter, Jr.

Address: 22 Victory Avenue

Greenville, SC 29601	 	/s/ Frank B. Halter, Jr.

April 13, 2005	 	$100,000
	Email: bhalter@coldwellbankercaine.com	 	 	 	 
	Telephone:	 	864-271-5076(H)

864-270-2088(C)

864-250-4640(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Rodger Bruce Harman

Address: 205 Terramont Drive

Greenville, SC 29615	 	/s/ Rodger Bruce Harman

April 13, 2005	 	$200,000
	Email: bruce@rlkunz.com	 	 	 	 
	Telephone:	 	864-268-3086(H)

864-630-9577(C)

864-271-2590(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Arthur L. Howson, Jr.

Address: 13 Woodvale Avenue

Greenville, SC 29605	 	/s/ Arthur L. Howson, Jr.

April 13, 2005	 	$100,000
	Email: ahowson@gwblawfirm.com	 	 	 	 
	Telephone:	 	864-233-3129(H)

864-                (C)

864-271-5352(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Paula S. King

Address: 33 Chosen Court

Greer, SC 29650	 	/s/ Paula S. King

April 13, 2005	 	$150,000
	Email: pking@netscape.com	 	 	 	 
	Telephone:	 	864-268-0469(H)

864-230-9433(C)

864-268-0469(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Robert Lee Kunz

Address: 248 Ingleside Way

Greenville, SC 29615	 	/s/ Robert Lee Kunz

April 13, 2005	 	$135,000
	Email: rkunz@aol.com	 	 	 	 
	Telephone:	 	864-271-4230(H)

864-363-6591(C)

864-271-2590(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Jon T. McClure

Address: 1008 North Main Street

Greenville, SC 29609	 	/s/ Jon T. McClure

April 13, 2005	 	$134,000
	Email: jon@isopoly.com	 	 	 	 
	Telephone:	 	864-233-8097(H)

864-430-5050(C)

864-876-4300(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: David A. Merline, Jr.

Address: 56 Round Pond Road

Greenville, SC 29607	 	/s/ David A. Merline, Jr.

April 13, 2005	 	$150,000
	Email: dmerlinejr@merlineandmeacham.com	 	 	 	 
	Telephone:	 	864-458-7503(H)

864-                (C)

864-242-4080(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: William H. Pelham

Address: 92 Forest Lane

Greenville, SC 29605	 	/s/ William H. Pelham

April 13, 2005	 	$200,000
	Email: bill.pelham@pelhamarchitects.com	 	 	 	 
	Telephone:	 	864-242-9944(H)

864-                (C)

864-271-7633(O)	 	 	 	 

	Organizer
	 	Signature

and Date
	 	Anticipated

Stock

Purchase

	Name: Russel T. Williams

Address: 14 Parkins Glen Court

Greenville, SC 29607	 	/s/ Russel T. Williams April 13, 2005	 	$250,000
	Email: rtjgwilliams@msn.com	 	 	 	 
	Telephone:	 	864-422-1675(H)

864-979-7117(C)

864-422-1675(O)	 	 	 	 

QuickLinks

ORGANIZER CONTRIBUTION AND JOINT VENTURE AGREEMENT

PREAMBLE

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