Document:

ex10-1123009.htm

  
    
      

      

    

    

    Exhibit
10.1

    

    

    

    

    

    

    

    

    

    

    

    MEDTOX
SCIENTIFIC, INC.

    SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

    

    

    

    

    Effective
January 1, 2004

    

    Amended
and Restated Effective January 1, 2008

    

    Further
Amended and Restated Effective January 1, 2010

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    MEDTOX
SCIENTIFIC, INC.

    SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

    PLAN
DOCUMENT

    (EFFECTIVE
AS OF JANUARY 1, 2004;

    AMENDED
AND RESTATED AS OF JANUARY 1, 2008;

    FURTHER
AMENDED AND RESTATED AS OF JANUARY 1, 2010)

    

    

    

    THIS SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("Plan") is
adopted by MEDTOX SCIENTIFIC, INC., a corporation organized and existing under
the laws of the State of Delaware (hereinafter referred to as the "Employer")
effective as of January 1, 2004 and amended and restated as of January 1,
2008.  This Plan is further amended and restated as of January 1,
2010:

    

    WITNESSETH:

    

    WHEREAS,
the Employer wishes to provide compensation and incentives to certain selected
executives; and

    

    WHEREAS,
the Employer’s 401(k) plan places limits on benefits provided to certain
executives due to certain provisions of the Internal Revenue Code;
and

    

    WHEREAS,
the Employer, in addition to providing other benefits, wishes to replicate the
full benefits that certain executives could have received if they had
participated under the Employer’s 401(k) plan;

    

    WHEREAS,
the Employer also wishes to permit certain executives to defer a portion of
their base salary and short-term bonuses;

    

    WHEREAS,
the Employer also intends to comply with the requirements of Section 409A of the
Internal Revenue Code;

    

    NOW,
THEREFORE, in consideration of the promises herein contained, it is hereby
declared as follows:

    

    

    
      
        
           

        

        
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    ARTICLE
I

    

    Definitions

    

    When used
herein, the words and phrases defined hereinafter shall have the following
meaning unless a different meaning is clearly required by the
context.

    

    
      	
              1.01  

            	
              "Account" shall mean the
      Account established pursuant to Section 3.06 of the
  Plan.

            

    

    

    
      	
              1.02  

            	
              “Annual Supplemental Retirement
      Contribution Amount” shall mean the amount determined in accordance
      with Section 3.02 of the Plan.

            

    

    

    
      	
              1.03  

            	
              “Annual 401(k) Restoration
      Amount” shall mean the amount determined in accordance with Section
      3.03 of this Plan.

            

    

    

    
      	
              1.04  

            	
              "Beneficiary" shall mean
      the person or persons last designated by a Participant, by written notice
      filed with the Committee, to receive a Plan Benefit upon his or her
      death.  In the event a Participant fails to designate a person
      or persons as provided above or if no Beneficiary so designated survives
      the Participant, then for all purposes of this Plan, the Beneficiary shall
      be the person(s) designated as the beneficiaries by the Participant under
      the MEDTOX 401(k) Plan, or, if none, the Participant's
    estate.

            

    

    

    
      	
              1.05  

            	
              “Benefits” shall mean
      the value of the Participant’s Account as credited to the investment
      options selected by the Participant from among the investment options
      authorized by the Committee from time-to-time under the Plan as reflected
      in the records of the Participant’s Account as described in Sections 3.06
      and 3.07 of the Plan.

            

    

    

    
      	
              1.06  

            	
              “Board” shall mean the
      Board of Directors of MEDTOX Scientific,
Inc.

            

    

     
 

    
      	
              1.07  

            	
              “Cause” shall, solely in
      the context of the termination by the Employer of an executive’s
      employment for purposes of vesting under Section 3.08, mean termination
      upon:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      willful and continued failure by the executive to substantially perform
      the executive's duties with the Employer (other than any such failure
      resulting from executive's incapacity due to physical or mental illness)
      after a written demand for substantial performance is delivered to the
      executive by the Board, which demand specifically identifies the manner in
      which the Employer believes that the executive has not substantially
      performed the executive's duties;
or

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      willful engaging by the executive in conduct, which is demonstrably and
      materially injurious to the Employer, monetarily or
    otherwise.

            

    

    

    
      
        
           

        

        
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              For
      purposes of this Section, no act, or failure to act, on the executive's
      part shall be deemed "willful" unless done, or omitted to be done, by the
      executive not in good faith and without reasonable belief that the
      executive's action or omission was in the best interest of the
      Employer.

            

    

    

    
      	
              1.08  

            	
              “Committee” shall mean
      the Compensation Committee of the
Board.

            

    

    

    
      	
              1.09  

            	
              “Compensation” shall
      mean the sum of:

            

    

    

    
      	
              (a)  

            	
              the
      Employee’s basic or regular rate of compensation for each payroll period
      during that portion of a Plan Year in which the Employee is a Participant
      in the Plan, plus

            

    

    

    
      	
              (b)  

            	
              all
      overtime, lead time, sales commissions and shift differential income
      received during that portion of a Plan Year in which the Employee is a
      Participant in the Plan.

            

    

    

    
      	
               
      

            	
              Unless
      otherwise specified, Compensation does not include Incentive
      Awards.

            

    

    

    
      	
              1.10  

            	
              “Deferred Compensation
      Amount” shall mean the amount determined in accordance with Section
      3.04 of this Plan.

            

    

    

    
      	
              1.11  

            	
              “Deferred Short-Term Bonus
      Amount” shall mean the amount determined in accordance with Section
      3.05 of this Plan.

            

    

    

    
      	
              1.12  

            	
              “Effective Date” shall
      mean January 1, 2004, and the Effective Date of this Further Amended and
      Restated Plan is January 1, 2010.

            

    

    

    1.13        “Employer” shall mean MEDTOX
Scientific, Inc.

    

    
      	
              1.14

            	
              “Grantor Trust” shall
      mean a grantor trust, of the type commonly referred to as a “rabbi trust”,
      that is maintained in connection with an unfunded deferred compensation
      arrangement and is intended to avoid constructive receipt of income and
      the incurrence of an economic benefit solely on account of the adoption or
      maintenance of the trust.

            

    

    

    
      	
              1.15

            	
              “Incentive Award” shall
      mean an amount payable to an Employee as a short-term or long-term bonus,
      or other incentive pay not included in Section 1.08(a) or (b) of this
      Plan.

            

    

    

    
      	
              1.16

            	
              “MEDTOX 401(k) Plan”
      shall mean the MEDTOX Laboratories, Inc. 401(k) Plan, or any successor
      plan (or plans) thereto.

            

    

    

    
      	
              1.17

            	
              “Participant” shall mean
      an eligible Employee of the Employer who satisfies the eligibility
      requirements of Section 2.01 of the
Plan.

            

    

    

    
      
        
           

        

        
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    1.18        “Plan” shall mean the MEDTOX
Scientific, Inc. Supplemental Executive Retirement Plan, as amended from time to
time.

    

    1.19        “Plan Year” shall mean the
calendar year.

    

    
      	
              1.20

            	
              “Retirement” shall,
      solely for purposes of vesting under Section 3.08, mean the attainment of
      age 60 after completing 5 years of service with the Employer or its
      affiliates.

            

    

    

    

    

    
      
        
           

        

        
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    ARTICLE
II

    

    Eligibility

    

    

    
      	
              2.01  

            	
              Eligibility

            

    

    

    Participation
in the Plan is limited solely to officers and employees of the Employer who are
designated by the Committee.  An officer shall become eligible as of
the date specified by the Committee.

    

    
      	
              2.02  

            	
              Enrollment

            

    

    

    
      	
              A.  

            	
              Annual
      Supplemental Retirement Contribution Amount and Annual 401(k) Restoration
      Amount

            

    

    

    An
eligible Employee is automatically enrolled in the Annual Supplemental
Retirement Contribution Amount and the Annual 401(k) Restoration
Amount.  However, by December 31 prior to each applicable Plan Year, a
Participant shall make an election regarding the timing of payments of such
amounts (in accordance with Section 4.01), and the form of payment of such
amounts (in accordance with Section 4.06).  If a timely election is
not made, amounts with regard to a Plan Year shall be paid in the form of a lump
sum payment at the Participant’s termination of employment (as provided in
Section 4.02); provided, however, that an election made with respect to a
previous Plan Year shall remain in effect until the Participant modifies or
revokes his election.  Notwithstanding the foregoing, in the case of a
Participant who becomes eligible under Section 2.01 prior to January 1, 2005,
amounts with regard to the Plan Years ending December 31, 2004, and December 31,
2005, shall be paid as a lump sum on January 1, 2010.

    

    
      	
              B.  

            	
              Deferred
      Compensation Amount

            

    

    

    A
Participant may enroll in the Plan for purposes of deferring Compensation by
December 31, or such other date that is specified by the Committee (“enrollment
date”), prior to the end of any calendar year, to be effective as of January 1,
of the next succeeding calendar year, by using such enrollment process as
established by the Committee for this purpose.  Such enrollment
process shall provide for the election of the percentage of the Compensation
that shall be deferred, the timing for payment of Compensation (in accordance
with Section 4.01), and the form of payment of Compensation (in accordance with
Section 4.06).

    

    
      	
              1.  

            	
              Once
      a Participant has enrolled in the Plan for the purpose of deferring
      Compensation, the election made by
the

            

    

    

    
      
        
           

        

        
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    Participant
shall remain in effect until the Participant modifies or revokes his
election.  Any modification or revocation by the Participant must be
made by the enrollment date of the calendar year preceding the effective date of
such modification or revocation.

    

    
      	
              2.  

            	
              In
      the case of the first Plan Year in which an Employee meets the eligibility
      requirements of Section 2.01 of the Plan, the Employee may make an
      election to begin participation within 30 days after the Employee becomes
      eligible to participate in the Plan.  Such election shall apply
      to services to be performed subsequent to the
      election.  Otherwise, an Employee who becomes eligible after an
      enrollment date will be required to wait until the next available
      enrollment date to participate in the
Plan.

            

    

    

    
      	
              C.  

            	
              Deferred
      Short-Term Bonus Amount

            

    

    

    A
Participant may enroll in the Plan for purposes of deferring a short-term bonus
respect to a particular fiscal year of the Employer no later than 6 months
before the end of the fiscal year of the Employer (if such short-term bonus
constitutes “performance-based compensation” within the meaning of Section
409A(a)(4)(iii) of the Internal Revenue Code), by using such enrollment process
as established by the Committee for this purpose.  If such short-term
bonus does not constitute performance-based compensation, the election timing
under the first sentence of Section 2.02B. shall apply.  Such
enrollment process shall provide for the election of the percentage of the
short-term bonus that shall be deferred, the timing for payment of the
short-term bonus (in accordance with Section 4.01), and the form of payment of
the short-term bonus (in accordance with Section 4.06).  A new
election must be completed for each fiscal year for which a deferral of a
short-term bonus is desired.

    

    
      
        
           

        

        
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    ARTICLE
III

    

    Benefits

    

    

    
      	
              3.01  

            	
              Benefits

            

    

    

    The
maximum Benefits under this Plan to which a Participant shall be entitled shall
be equal to the sum of:

    

    
      	
              (a)  

            	
              the
      Participant’s Annual Supplemental Retirement Contribution Amount credited
      pursuant to Section 3.02;

            

    

    

    
      	
              (b)  

            	
              the
      Participant’s Annual 401(k) Restoration Amount credited pursuant to
      Section 3.03;

            

    

    

    
      	
              (c)  

            	
              the
      Participant’s Deferred Compensation Amount credited pursuant to Section
      3.04;

            

    

    

    
      	
              (d)  

            	
              the
      Participant’s Deferred Short-Term Bonus Amount credited pursuant to
      Section 3.05; and

            

    

    

    
      	
              (e)  

            	
              earnings
      and losses credited to the Participant’s Account in accordance with
      Section 3.07.

            

    

    

    
      	
              3.02  

            	
              Annual
      Supplemental Retirement Contribution
Amount

            

    

    

    The
Annual Supplemental Retirement Contribution Amount to which a Participant shall
be entitled for a Plan Year shall be a discretionary amount determined by the
Committee.

    

    
      	
              3.03  

            	
              Annual
      401(k) Restoration Amount

            

    

    

    The
401(k) Restoration Amount to which a Participant shall be entitled for a Plan
Year shall be equal to (a) plus (b) plus (c), where

    

    
      	
               
      

            	
              (a)

            	
              is
      an amount equal to the maximum contribution permitted to a 401(k) plan
      under Section 402(g)(1)(B) of the Internal Revenue Code for the taxable
      year ending with the Plan Year,

            

    

    

    
      	
               
      

            	
              (b)

            	
              is
      an amount equal to the maximum catch-up contribution permitted to a 401(k)
      plan under Section 414(v)(2)(B)(i) of the Internal Revenue Code for the
      taxable year ending with the Plan Year,
and

            

    

    

    
      	
               
      

            	
              (c)

            	
              is
      (at the discretion of the Committee) an amount equal to 10% of the
      Participant's Compensation in excess of the limit on compensation under
      Section 401(a)(17) of the Internal Revenue
Code.

            

    

    

    
      
        
           

        

        
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    For
purposes of the preceding sentence, Compensation shall also include (i) taxable
short-term bonuses with respect to the Plan Year, (ii) Deferred Compensation
Amounts under this Plan with respect to the Plan Year, and (iii) Deferred
Short-Term Bonus Amounts under this Plan with respect to the Plan
Year.

    

    
      	
              3.04  

            	
              Deferred
      Compensation Amounts

            

    

    

    The
Deferred Compensation Amount which shall be credited for a Plan Year shall be
equal to the elected percentage of the Participant’s Compensation for the entire
calendar year in which the Participant’s election applies.  Such
Participant may elect any whole percentage of his Compensation between 0% and
50%.

    

    3.05           Deferred
Short-Term Bonus Amounts

    

    The
Deferred Short-Term Bonus Amount which shall be credited for a Plan Year shall
equal the elected percentage of the short-term bonus with respect to the
Employer’s fiscal year ending with the Plan Year.  Such Participant
may elect any whole percentage of his short-term bonus between 0% and
100%.

    

    3.06           Participant’s
Account

    

    The
Employer shall create and maintain adequate records to reflect the interest of
each Participant in the Plan.  Such records shall be in the form of
individual Accounts.  When appropriate, a Participant's Account shall
consist of separate calendar class year subaccounts with respect to each Plan
Year for which an Annual Supplemental Retirement Contribution Amount, Annual
401(k) Restoration Amount, Deferred Compensation Amount or Deferred Short-Term
Bonus Amount is credited under the Plan.  Such Accounts shall be kept
for recordkeeping purposes only and shall reflect amounts allocated under
Section 3.07, distributions under Article IV, and divestments under Section
6.07.  Any Accounts maintained in trust by the Employer shall not be
construed as providing for assets to be held in trust or escrow or any other
form of asset segregation for the Participant or Beneficiary to whom benefits
are to be paid pursuant to the terms of the Plan.

    

    3.07           Allocation
to Participant Account

    

    The
Participant's Deferred Compensation Amount and Deferred Short-Term Bonus Amount
shall be credited to the Participant's Account as of the pay date such amount
would have been paid to such Participant absent a deferral under the
Plan.  A corresponding contribution of such amount shall be made to a
Grantor Trust under this Plan, as provided below, as soon as reasonably
practicable (and no later than 30 days) after such amount is credited to the
Participant’s Account.

    

    
      
        
           

        

        
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    The
Participant's Annual Supplemental Retirement Contribution Amount  and
Annual 401(k) Restoration Amount shall be credited to the Participant's Account
as of the date granted by the Committee, but in no event later than April 1
after the close of the Plan Year.  A corresponding contribution of
such amount shall be made to a Grantor Trust under this Plan, as provided
below,
 no later than December 31 after
the close of the Plan Year.

    

    (a)           Cash
Contribution to Grantor Trust

    

    Except as
provided in Section 3.07(b), contributions shall be made in cash to a Grantor
Trust.  The Committee shall determine the earnings to be credited to a
Participant’s Account each Plan Year.  Alternatively, if permitted by
the Committee, each Participant may advise the Committee, in accordance with
procedures established by the Committee, on how he wishes his Account to be
allocated among the investment options authorized by the Committee and such
Participant’s Account shall be credited with earnings and losses at such time
and in such manner as determined in the sole discretion of the Committee and
shall reflect the allocation of investments made there under.  The
Participant may change his investment allocation in accordance with procedures
established by the Committee.  Notwithstanding the foregoing, the
Committee reserves the right to determine the Plan’s investment options and the
specific process for making investments without regard to the advice received
from Participants.

     

    (b)           Stock
Election

    

    A
Participant may advise the Committee that he wishes some or all of his Account
to be allocated to Employer stock. The corresponding cash contribution (or
designated portion of his Account held under the Grantor Trust holding amounts
described in Section 3.07(a)) shall be applied to a purchase by the Employer of
its stock in the open market or in private transactions, including, but not
limited to, purchases by the Employer of its stock held by officers or directors
of the Employer. The acquired stock shall be contributed (or transferred from
the Grantor Trust holding amounts described in Section 3.07(a)) to a Grantor
Trust (hereinafter “Trust B”) separate from the Grantor Trust holding amounts
described in Section 3.07(a).  An election directing the Employer to
acquire stock and contribute it to Trust B shall be made pursuant to procedures
established by the Committee and shall be irrevocable.  The investment
of amounts in Trust B shall be limited to Employer stock, and distributions
therefrom shall be settled by delivery of a fixed number of shares of Employer
stock.

    

    

    
      
        
           

        

        
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    3.08           Vested
Percentage

    

    Notwithstanding
anything herein to the contrary, a Participant shall be 100% vested at all times
in his Deferred Compensation Amount and his Deferred Short-Term Bonus
Amount.

    

    A
Participant shall be vested in 1/12th of his Annual Supplemental Retirement
Contribution Amount and Annual 401(k) Restoration Amount for Plan Years prior to
January 1, 2008, for each full month the Participant is employed by the Employer
during the calendar year that such amounts are contributed to a Grantor Trust
under this Plan; provided, however, that forfeited amounts shall not be
reallocated among Plan Participants, or be restored to the forfeiting
Participant upon reemployment.

    

    Effective
on and after January 1, 2008, a Participant shall be vested in 1/36th of his
Annual Supplemental Retirement Contribution Amount and Annual 401(k) Restoration
Amount for a Plan Year for each full month the Participant is employed by the
Employer during the calendar year that such amounts are contributed to a Grantor
Trust under this Plan, and the two immediately succeeding calendar years
following such calendar year; provided, however, that forfeited amounts shall
not be reallocated among Plan Participants, or be restored to the forfeiting
Participant upon reemployment.

    

    Notwithstanding
the foregoing, the Committee, in its sole discretion, may accelerate the vesting
of the Annual Supplemental Retirement Contribution Amount and Annual 401(k)
Restoration Amount with regard to one or more Plan Years.  In
addition, a Participant shall be 100% vested immediately upon:

    

    (a)           a
Change in Control (as defined in Section 4.05); or

    

    
      	
               
      

            	
              (b)

            	
              involuntary
      termination other than for Cause (as defined in Section 1.07);
      or

            

    

    

    (c)           the
Participant’s death; or

    

    (d)           the
Participant’s becoming disabled (as defined in Section 4.02).

    

    Except as
provided above, a Participant who terminates service (other than for Retirement
as defined in Section 1.20) prior to becoming vested with regard to the Annual
Supplemental Retirement Contribution Amount or Annual 401(k) Restoration Amount
for a Plan Year or a Plan Year shall forfeit such Annual Supplemental Retirement
Contribution Amount and Annual 401(k) Restoration Amount for a Plan
Year.

    

    

    

    
      
        
           

        

        
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    ARTICLE
IV

    

    Distribution
of Benefits

    

    

    
      	
              4.01  

            	
              Benefit
      Commencement Date

            

    

    

    Except as
provided in Section 4.04 or Section 4.05, Benefits under the Plan will, as
elected by the Participant, be paid on:

    

    
      	
               
      

            	
              (a)

            	
              the
      Participant’s termination of employment (as provided in Section
      4.02);

            

    

    
      	
               
      

            	
              (b)

            	
              a
      date pre-selected by the Participant (as provided in Section 4.03), in
      accordance with the election made by the Participant pursuant to Section
      2.02;

            

    

    
      	
               
      

            	
              (c)

            	
              the
      earlier of (a) or (b); or

            

    

    
      	
               
      

            	
              (d)

            	
              the
      later of (a) or (b) (as permitted by Section 409A of the Internal Revenue
      Code).

            

    

    

    If an
election is made to have Benefits commence on a date pre-selected by the
Participant (as provided in Section 4.03), such election subsequently may be
modified to defer payment until the Participant’s termination of employment (as
provided in Section 4.02), provided such election modification is made by the
Participant in writing at least 12 months prior to the pre-selected date, such
election modification may not take effect for at least 12 months, and
commencement of Benefits is deferred for at least 5 years.

    

    
      	
              4.02  

            	
              Termination
      of Employment

            

    

    

    Except as
otherwise provided in Section 4.01 and 4.03 of this Article, Benefits shall be
distributed upon Participant’s death, becoming disabled (as defined in Section
409A(a)(2)(C) of the Internal Revenue Code), or separating from service, subject
to the requirements of Section 409A(a)(2)(A)(i) and (B)(i) of the Internal
Revenue Code (requiring a 6-month delay in payments on separation from service
to a Specified Employee).  For purposes of the preceding sentence,
“Specified Employee” shall mean any Participant who is determined to be a “key
employee” (as defined under Section 416(i) of the Internal Revenue Code without
regard to paragraph (5) thereof) for the applicable period, as determined
annually by the Committee in accordance with Treasury Regulation
Section1.409A-1(i).  Payments on separation from service to a
Specified Employee that are delayed for 6 months pursuant to this Section 4.02,
shall be paid on the first day of the month following such 6-month
period

    

    
      	
              4.03  

            	
              Date
      Pre-Selected by the Participant

            

    

    

    A
Participant may elect to have payment of a Benefit for a particular Plan Year
commence prior to termination of employment, provided that the commencement date
is at least two full calendar years after the end of the calendar year to which
such Benefits relate.

    

    
      
        
           

        

        
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    4.04         Unforeseeable
Emergency

    

    Subject
to the requirements of Section 409A of the Internal Revenue Code, payment of
part or all of the Benefits under this Plan may be made in a lump sum in the
case of an unforeseeable emergency (as defined in Section 409A(a)(2)(B)(ii) of
the Internal Revenue Code).

    

    
      	
              4.05  

            	
              Change
      in Control

            

    

    

    Payment
of all the Benefits under this Plan shall be made in a lump sum upon a change of
control as defined in Section 409A(a)(2)(A)(v) of Internal Revenue Code (or
applicable guidance from the Internal Revenue Service), but only to the extent
permitted thereunder.

    

    
      	
              4.06  

            	
              Form
      of Payment

            

    

    

    Benefits
shall be distributed to a Participant in either a lump sum, or in annual
installment payments of at least two (2) years, but not more than ten (10)
years, in accordance with the election made by the Participant pursuant to
Section 2.02; provided, however, that the Participant’s election under Section
2.02 as to the form of payment of Benefits subsequently may be modified to
provide for another permissible form of payment, provided such payment
modification is made by the Participant in writing at least 12 months prior to
the Benefit payment date, such modification may not take effect for at least 12
months, and affected payments are deferred for at least 5 years.

    

    If
installment payments are elected, the first installment shall be made within 60
days after the event giving rise to the distribution and all subsequent
installments shall be paid at the beginning of each subsequent calendar year as
soon as is administratively feasible.  Annual installment payments
shall be equal to the then remaining Account balance, divided by the number of
years remaining in the installment period.  To the extent Benefits are
not paid in installments, the Account balance will be paid in a lump sum within
60 days after the event giving rise to the distribution.

    

    Subject
to Section 409A of the Internal Revenue Code, benefits may be distributed in
cash or in kind.

    

    
      	
              4.07  

            	
              Beneficiary
      Entitlement

            

    

    

    In the
event a Participant dies before receiving all Benefits under the Plan, the
unpaid balance will be paid in a lump sum to such Participant's Beneficiary as
soon as is administratively feasible following the Participant's
death.

    

    

    
      
        
           

        

        
          - 12
-

          
            

          

        

        
           

        

      

    

    

    ARTICLE
V

    

    Administration;
Amendments and Termination; Rights Against the Employer

    

    

    
      	
              5.01  

            	
              Administration

            

    

    

    The
Committee shall administer this Plan.  With respect to the Plan, the
Committee shall have, and shall exercise and perform, all the powers, rights,
authorities and duties of the administrator of the MEDTOX 401(k) Plan, as set
forth in the MEDTOX 401(k) Plan, with the same effect as if set forth in full
herein with respect to this Plan.  Except as expressly set forth
herein, any determination or decision by the Committee shall be conclusive and
binding on all persons who at any time have or claim to have any interest
whatsoever under this Plan.

    

    
      	
              5.02  

            	
              Amendment
      and Termination Prior to a Change in
Control

            

    

    

    The
Committee, solely, and without the approval of any Participant or Beneficiary,
shall have the right to amend this Plan at any time and from
time-to-time.  Any such amendment shall become effective upon the date
stated therein.  Notwithstanding the foregoing, no amendment shall
adversely affect the rights of any Participant or Beneficiary who was previously
receiving Benefits under this Plan to continue to receive such Benefits or of
all other Participants and Beneficiaries to receive the Benefits promised under
the Plan immediately prior to the later of the effective date or the date of
adoption of the amendment.

    

    The
Employer has established this Plan with the bona fide intention and expectation
that from year-to-year it will deem it advisable to continue it in
effect.  However, circumstances not now foreseen or circumstances
beyond the Employer's control may make it impossible or inadvisable to continue
the Plan.  Therefore, the Committee, in its sole discretion, reserves
the right to terminate the Plan in its entirety at any time; provided, however,
that in such event any Participant or Beneficiary who was receiving benefits
under this Plan as of the termination date, shall continue to receive such
Benefits, and all other Participants and Beneficiaries shall remain entitled to
receive the Benefits promised under the Plan immediately prior to the
termination of the Plan.

    

    
      	
              5.03  

            	
              Rights
      Against the Employer

            

    

    

    The
establishment of this Plan shall not be construed as giving to any Participant,
Beneficiary, Employee or any person whomsoever, any legal, equitable or other
rights against the Employer, or its officers, directors, agents or shareholders,
except as specifically provided for herein, or its giving to any Participant any
equity or other interest in the assets, business or shares of the Employer or
giving any Employee the right to be retained in the employment of the
Employer.  All terms relating to short-term bonus awards that do not
involve the deferral of receipt of such awards shall be governed by the regular
policies of the Employer relating to such awards, as the case may
be.  All Employees and Participants shall be subject to discharge to
the same extent that they would have been if this Plan had never been
adopted.  Subject to the rights of the Employer to terminate this Plan
or any benefit hereunder, the rights of a Participant hereunder shall be solely
those of an unsecured creditor of the Employer.

    

    
      
        
           

        

        
          - 13
-

          
            

          

        

         

      

    

    

     

    ARTICLE
VI

    

    General
and Miscellaneous

    

    

    
      	
              6.01  

            	
              Spendthrift
      Clause

            

    

    

    No right,
title or interest of any kind in the Plan shall be transferable or assignable by
any Participant or Beneficiary or any other person or be subject to alienation,
anticipation, encumbrance, garnishment, attachment, execution or levy of any
kind, whether voluntary or involuntary.  Any attempt to alienate,
sell, transfer, assign, pledge, garnish, attach or otherwise encumber or dispose
of any interest in the Plan shall be void.

    

    
      	
              6.02  

            	
              Restrictions
      on Transfer of Employer Stock

            

    

    

    Shares of
Employer stock acquired under this Plan may not be sold or otherwise disposed of
except pursuant to an effective registration statement under the Securities Act
of 1933, as amended, or in a transaction which, in the opinion of counsel
acceptable to the Employer, is exempt from registration under said
Act.  All certificates evidencing shares deliver pursuant to the Plan
shall bear an appropriate legend evidencing such transfer
restriction.

    

    
      	
              6.03  

            	
              Representations

            

    

    

    The
Committee may require that each Participant receiving shares under the Plan to
represent and agree with the Employer in writing that such Participant is
acquiring the shares for his or her own account for investment purposes only and
without a view to the distribution thereof.  Delivery of such
representations as may be requested by the Committee pursuant to this Section
6.03 shall be a condition precedent to the right of any Participant to receive
shares awarded under the Plan.

    

    
      	
              6.04  

            	
              Severability

            

    

    

    In the
event that any provision of this Plan shall be declared illegal or invalid for
any reason, said illegality or invalidity shall not affect the remaining
provisions of this Plan but shall be fully severable, and this Plan shall be
construed and enforced as if said illegal or invalid provision had never been
inserted herein.

    

    
      	
              6.05  

            	
              Construction
      of Plan

            

    

    

    The
article and section headings and numbers are included only for convenience of
reference and are not to be taken as limiting or extending the meaning of any of
the terms and provisions of this Plan.  Whenever appropriate, words
used in the singular shall include the plural or the plural may be read as the
singular.

    

    
      
        
           

        

        
          
            -
14 -

          

          
            

          

        

        
           

        

      

    

    

    

    
      	
              6.06  

            	
              Gender

            

    

    

    The
personal pronoun of the masculine gender shall be understood to apply to women
as well as men except where specific reference is made to one or the
other.

    

    
      	
              6.07  

            	
              Governing
      Law

            

    

    

    THE
VALIDITY AND EFFECT OF THIS PLAN AND THE RIGHTS AND OBLIGATIONS OF ALL PERSONS
AFFECTED HEREBY SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE LAWS OF
THE UNITED STATES AND THE LAWS OF THE STATE OF MINNESOTA, WITHOUT REGARD TO ITS
OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS.

    

    
      	
              6.08  

            	
              Unfunded
      Top Hat Plan

            

    

    

    It is the
Employer's intention that this Plan be a Top Hat Plan, defined as an unfunded
plan maintained primarily for the purpose of providing deferred compensation for
a select group of management or highly compensated employees, as provided in
Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income
Security Act of 1974, as amended from time-to-time.  The Employer may
establish and fund one or more trusts for the purpose of paying some or all of
the benefits promised to Participants and Beneficiaries under the Plan;
provided, however, that (i) any such trust(s) shall at all times be subject
to the claims of the Employer's general creditors in the event of the insolvency
or bankruptcy of the Employer, and (ii) notwithstanding the creation or
funding of any such trust(s), the Employer shall remain primarily liable for any
obligation hereunder.  Notwithstanding the establishment of any such
trust(s), the Participants and Beneficiaries shall have no preferred claim on,
or any beneficial ownership interest in, any assets of any such trust or of the
Employer.

    

    
      	
              6.09  

            	
              Divestment
      for Cause

            

    

    

    Notwithstanding
any other provisions of this Plan to the contrary, the right of any Participant,
former Participant, or Beneficiary of either, to receive any Benefits, or to
have paid to any other person any Benefits, or the right of any such other
person to receive any Benefits under this Plan, shall be forfeited, if such
Participant's employment with the Employer is terminated because of, or the
Participant is discovered to have engaged in, fraud, embezzlement, dishonesty
against the Employer, obtaining funds or property under false pretenses,
assisting a competitor without permission, or interfering with the relationship
of the Employer or any subsidiary or affiliate thereof with a
customer.  A Participant's or Beneficiary's Benefits shall be
forfeited for any of the above reasons regardless of whether such act is
discovered prior to or subsequent to the Participant's termination from the
Employer or the payment of Benefits under the Plan.  If payment has
been made, such payment shall be restored to the Employer by the Participant or
Beneficiary.

    

    
      
        
           

        

        
          - 15
-

          
            

          

        

        
           

        

      

    

    

    As
evidence of its adoption of this Plan, the Employer has caused this amended Plan
to be signed this 30th day
of December, 2009.

    

    

    MEDTOX SCIENTIFIC, INC.

    

    

    

    By:           /s/ Richard J.
Braun

    Richard J. Braun

    President and Chief Executive
Officer

    

    

    

    

    By:           /s/ Robert A.
Rudell

    Robert A. Rudell

    Chairman, Compensation
Committee

    

     

    - 16 -fgbloanagreement.htm

Exhibit 10.1

BUSINESS LOAN AGREEMENT

	
Principal
	
Loan Date
	
Maturity
	
Loan No
	
Call / Coll
	
Account
	
Officer
	
Initials

	
$1,000,000.00
	
12-31-2009
	
06-30-2011
	
25962264
	
4A / 54
	  	
EJD
	  
	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “ * * * “ has been omitted due to text length limitations

	
Borrower:
	
Premier Financial Bancorp, Inc.

2883 Fifth Avenue

Huntington, WV  25702
	  	
Lender:
	
FIRST GUARANTY BANK

First Guaranty Square Banking Center – Commercial Lending

400 East Thomas Street

P O Box 2009

Hammond, LA 70404-2009

(985) 345-7685

THIS BUSINESS LOAN AGREEMENT dated December 31, 2009, is made and executed between PREMIER FINANCIAL BANCORP, INC. ("Borrower") and FIRST GUARANTY BANK ("Lender") on the following terms and conditions. Borrower has applied to Lender for a loan or loans or other financial accommodations, including
those which may be described on any exhibit or schedule attached to this Agreement. Borrower understands and agrees that: (A) in granting, renewing, or extending any Loan, Lender is relying upon Borrower's representations, warranties, and agreements as set forth in this Agreement; (B) the granting, renewing, or extending of any Loan by Lender at all times shall be subject to Lender's sole judgment and discretion; and (C) all such Loans shall be and remain subject to the terms and conditions of this Agreement.

 

ADVANCE AUTHORITY. The following person or persons are authorized to request advances and authorize payments under the revolving line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority: ROBERT
W. WALKER, President & CEO of PREMIER FINANCIAL BANCORP, INC.

 

APPLICATION FOR AND PURPOSE OF THE LOAN. Borrower has applied to Lender for a Loan in the aggregate principal amount of $1,000,000.00 for the following purpose: REVOLVING LINE OF CREDIT FOR WORKING CAPITAL.

 

BORROWER'S NOTE. Lender has agreed to consider making Loan Advances to Borrower, from time to time, one or more times, on a revolving line of credit basis up to a maximum principal amount outstanding at any one or more times not to exceed $1,000,000.00, or such
other amounts as to which Lender may agree. Borrower agrees to be bound and obligated under the terms and conditions of this Agreement and Lender's procedures and additional requirements for requesting Loan Advances, as well as any and all Security Agreements directly or indirectly securing repayment of the same.

 

LINE OF CREDIT. Borrower's Note shall be considered for all purposes as a "master note" and shall evidence any and all Loan Advances made by Lender to Borrower from time to time on a self-replenishing line of credit basis. Loan Advances under Borrower's Note may
be requested orally or in writing. Lender may, but need not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums advanced by Lender under Borrower's Loan and Note in accordance with the instructions of any officer or other representative of Borrower or credited to Borrower's deposit account(s) with Lender. Borrower additionally agrees that the unpaid principal balance outstanding under Borrower's Loan and Note shall at all times be evidenced by endorsements on the
Note, or alternatively, by Lender's internal records, including Lender's daily computer print-out. Borrower additionally agrees that Lender may, within its sole judgment, refuse to extend Loan Advances to Borrower whenever Lender determines or has reason to believe that any one or more of the following conditions exists or will occur: (a) the amount of the requested Loan Advance will result in Borrower exceeding its maximum line of credit; (b) Borrower is not complying or has not complied with Lender's procedures
and additional requirements for requesting Loan Advances; (c) Borrower has failed to provide Lender with satisfactory documentation to support the requested Loan Advance; (d) Lender has reason to believe that Borrower is not presently complying, or has not complied with the terms and conditions of this Agreement, or has committed or is in the process of committing an Event of Default hereunder or under any Security Agreement directly or indirectly securing repayment of Borrower's Loan and Note; or (e) Lender
deems itself to be insecure with regard to the repayment of Borrower's Loan and Note. Lender shall have no obligation or liability to Borrower or to any other person or persons arising out of or in any way accruing from Lender's reasonable refusal to extend Loan Advances to Borrower for any of the reasons stated above.

 

TERM. This Agreement shall be effective as of December 31, 2009, and shall continue in full force and effect until such time as all of Borrower's Loans in favor of Lender have been paid in full, including principal, interest, costs, expenses, attorneys' fees, and
other fees and charges, or until such time as the parties may agree in writing to terminate this Agreement.

 

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial Advance and each subsequent Advance under this Agreement shall be subject to the fulfillment to Lender's satisfaction of all of the conditions set forth in this Agreement and in the Related
Documents.

 

Loan Documents. Borrower shall provide to Lender the following documents for the Loan: (1) the Note; (2) Security Agreements granting to Lender security interests in the Collateral; (3) financing statements and all other documents perfecting Lender's Security
Interests; (4) evidence of insurance as required below; (5) together with all such Related Documents as Lender may require for the Loan; all in form and substance satisfactory to Lender and Lender's counsel.

 

Borrower's Authorization. Borrower shall have provided in form and substance satisfactory to Lender properly certified resolutions, duly authorizing the execution and delivery of this Agreement, the Note and the Related Documents. In addition, Borrower shall have
provided such other resolutions, authorizations, documents and instruments as Lender or its counsel, may require.

 

Payment of Fees and Expenses. Borrower shall have paid to Lender all fees, charges, and other expenses which are then due and payable as specified in this Agreement or any Related Document.

 

Representations and Warranties. The representations and warranties set forth in this Agreement, in the Related Documents, and in any document or certificate delivered to Lender under this Agreement are true and correct.

 

No Event of Default. There shall not exist at the time of any Advance a condition which would constitute an Event of Default under this Agreement or under any Related Document.

 

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness
exists:

 

Organization. Borrower is a corporation for profit which is, and at all times shall be, duly organized, validly existing, and in good standing under and by virtue of the laws of the Commonwealth of Kentucky. Borrower is duly authorized to transact business in
all other states in which Borrower is doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which Borrower is doing business. Specifically, Borrower is, and at all times shall be, duly qualified as a foreign corporation in all states in which the failure to so qualify would have a material adverse effect on its business or financial condition. Borrower has the full power and authority to own its properties and to transact the business in which it is presently
engaged or presently proposes to engage. Borrower maintains its principal office at 2883 FIFTH AVENUE, HUNTINGTON, WV 25702. Unless Borrower has designated otherwise in writing, this is the principal office at which Borrower keeps its books and records including its records concerning the Collateral. Borrower will notify Lender prior to any change in the location of Borrower's state of organization or any change in Borrower's name. Borrower shall do all things necessary to preserve and to keep in full force and
effect its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to Borrower and Borrower's business activities.

 

Assumed Business Names. Borrower has filed or recorded all documents or filings required by law relating to all assumed business names used by Borrower. Excluding the name of Borrower, the following is a complete list of all assumed business names under which
Borrower does business: None.

 

Authorization. Borrower's execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized by all necessary action by Borrower and do not conflict with, result in a violation of, or constitute a default under (1) any
provision of (a) Borrower's articles of incorporation or organization, or bylaws, or (b) any agreement or other instrument binding upon Borrower or (2) any law, governmental regulation, court decree, or order applicable to Borrower or to Borrower's properties.

 

Financial Information. Each of Borrower's financial statements supplied to Lender truly and completely disclosed Borrower's financial condition as of the date of the statement, and there has been no material adverse change in Borrower's financial condition subsequent
to the date of the most recent financial statement supplied to Lender. Borrower has no material contingent obligations except as disclosed in such financial statements.

 

  

  

  

Exhibit 10.1

BUSINESS LOAN AGREEMENT

(Continued)

	
Loan No. 25962264
	  	
Page 2

 

Legal Effect. This Agreement constitutes, and any instrument or agreement Borrower is required to give under this Agreement when delivered will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective
terms.

 

Properties. Except as contemplated by this Agreement or as previously disclosed in Borrower's financial statements or in writing to Lender and as accepted by Lender, and except for property tax liens for taxes not presently due and payable, Borrower owns and has
good title to all of Borrower's properties free and clear of all Security Interests, and has not executed any security documents or financing statements relating to such properties. All of Borrower's properties are titled in Borrower's legal name, and Borrower has not used or filed a financing statement under any other name for at least the last five (5) years.

 

Hazardous Substances. Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (1) During the period of Borrower's ownership of the Collateral, there has been no use, generation, manufacture, storage, treatment, disposal,
release or threatened release of any Hazardous Substance by any person on, under, about or from any of the Collateral. (2) Borrower has no knowledge of, or reason to believe that there has been (a) any breach or violation of any Environmental Laws; (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Collateral by any prior owners or occupants of any of the Collateral; or (c) any actual or threatened litigation
or claims of any kind by any person relating to such matters. (3) Neither Borrower nor any tenant, contractor, agent or other authorized user of any of the Collateral shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from any of the Collateral; and any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations, and ordinances, including without limitation all Environmental Laws. Borrower authorizes
Lender and its agents to enter upon the Collateral to make such inspections and tests as Lender may deem appropriate to determine compliance of the Collateral with this section of the Agreement. Any inspections or tests made by Lender shall be at Borrower's expense and for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Borrower or to any other person. The representations and warranties contained herein are based on Borrower's due diligence
in investigating the Collateral for hazardous waste and Hazardous Substances. Borrower hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Borrower becomes liable for cleanup or other costs under any such laws, and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the
Agreement or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the Collateral. The provisions of this section of the Agreement, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the termination, expiration or satisfaction of this Agreement and shall not be affected by Lender's acquisition of any interest in any of the Collateral, whether by foreclosure or otherwise.

 

Litigation. There are no suits or proceedings pending, or to the knowledge of Borrower, threatened against or affecting Borrower or Borrower's assets, before any court or by any governmental agency, other than those previously disclosed to Lender in writing, which,
if adversely determined, may have a material adverse effect on Borrower's financial condition or business.

 

Taxes. To the best of Borrower's knowledge, all of Borrower's tax returns and reports that are or were required to be filed, have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently being or to be
contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided.

 

Information. All information heretofore or contemporaneously herewith furnished by Borrower to Lender for the purposes of or in connection with this Agreement or any transaction contemplated hereby is, and all information hereafter furnished by or on behalf of
Borrower to Lender will be, true and accurate in every material respect on the date as of which such information is dated or certified; and none of such information is or will be incomplete by omitting to state any material fact necessary to make such information not misleading.

 

Lien Priority. Unless otherwise previously disclosed to Lender in writing, Borrower has not entered into or granted any Security Agreements, or permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly
securing repayment of Borrower's Loan and Note, that would be prior or that may in any way be superior to Lender's Security Interests and rights in and to such Collateral.

 

Binding Effect. This Agreement, the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers thereof, as well as upon their successors, representatives and assigns, and are legally enforceable in accordance with their respective
terms.

 

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, so long as this Agreement remains in effect, Borrower will:

 

Notices of Claims and Litigation. Promptly inform Lender in writing of (1) all material adverse changes in Borrower's financial condition, and (2) all existing and all threatened litigation, claims, investigations, administrative proceedings or similar actions
affecting Borrower or any Guarantor which could materially affect the financial condition of Borrower or the financial condition of any Guarantor.

 

Financial Records. Maintain its books and records in accordance with GAAP, applied on a consistent basis, and permit Lender to examine and audit Borrower's books and records at all reasonable times.

 

Financial Statements. Furnish Lender with the following:

 

Annual Statements. As soon as available, but in no event later than ninety (90) days after the end of each fiscal year, Borrower's balance sheet and income statement for the year ended, audited by a certified public accountant satisfactory to Lender.

 

Interim Statements. As soon as available, but in no event later than 45 days after the end of each fiscal quarter, Borrower's balance sheet and profit and loss statement for the period ended, prepared by Borrower.

 

Tax Returns. As soon as available, but In no event later than ninety (90) days after the applicable filing date for the tax reporting period ended, Federal and other governmental tax returns, prepared by a certified public accountant satisfactory to Lender.

 

All financial reports required to be provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent basis, and certified by Borrower as being true and correct.

 

Additional Information. Furnish such additional information and statements, as Lender may request from time to time.

 

Insurance. Maintain fire and other risk insurance, public liability insurance, and such other insurance as Lender may require with respect to Borrower's properties and operations, in form, amounts, coverages and with insurance companies acceptable to Lender. Borrower,
upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Borrower or any other person. In connection with all policies covering
assets in which Lender holds or is offered a security interest for the Loans, Borrower will provide Lender with such lender's loss payable or other endorsements as Lender may require.

 

Insurance Reports. Furnish to Lender, upon request of Lender, reports on each existing insurance policy showing such information as Lender may reasonably request, including without limitation the following: (1) the name of the insurer; (2) the risks insured; (3)
the amount of the policy; (4) the properties insured; (5) the then current property values on the basis of which insurance has been obtained, and the manner of determining those values; and (6) the expiration date of the policy. In addition, upon request of Lender (however not more often than annually), Borrower will have an independent appraiser satisfactory to Lender determine, as applicable, the actual cash value or replacement cost of any Collateral. The cost of such appraisal shall be paid by Borrower.

 

Other Agreements. Comply with all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower and any other party and notify Lender immediately in writing of any default in connection with any other such agreements.

 

Loan Fees, Charges and Expenses. In addition to all other agreed upon fees, charges, and expenses, pay the following: A Covenant Default Fee of $500.00 may be charged by Lender if Borrower fails to comply with the Financial Statements covenant within the time as stated in the Affirmative Covenants
above.

 

Loan Proceeds. Use all Loan proceeds solely for the following specific purposes: WORKING CAPITAL.

 

Taxes, Charges and Liens. Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments, taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income,
or profits, prior to the date on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrowers properties, income, or profits. Provided however, Borrower will not be required to pay and discharge any such assessment, tax, charge, levy, lien or claim so long as (1) the legality of the same shall be contested in good faith by appropriate proceedings, and (2) Borrower shall have established on Borrower's books adequate reserves with respect to such contested
assessment, tax, charge, levy, lien, or claim

  

  

  

Exhibit 10.1

BUSINESS LOAN AGREEMENT

(Continued)

	
Loan No. 25962264
	  	
Page 3

 

in accordance with GAAP.

 

Performance. Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the Related Documents, and in all other instruments and agreements between Borrower and Lender. Borrower shall notify Lender immediately
in writing of any default in connection with any agreement.

 

Operations. Maintain executive and management personnel with substantially the same qualifications and experience as the present executive and management personnel; provide written notice to Lender of any change in executive and management personnel; conduct its
business affairs in a reasonable and prudent manner.

 

Environmental Studies. Promptly conduct and complete, at Borrower's expense, all such investigations, studies, samplings and testings as may be requested by Lender or any governmental authority relative to any substance, or any waste or by-product of any substance
defined as toxic or a hazardous substance under applicable federal, state, or local law, rule, regulation, order or directive, at or affecting any property or any facility owned, leased or used by Borrower.

 

Compliance with Governmental Requirements. Comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the conduct of Borrower's properties, businesses and operations, and to the use or occupancy
of the Collateral, including without limitation, the Americans With Disabilities Act. Borrower may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Borrower has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Collateral are not jeopardized. Lender may require Borrower to post adequate security or a surety bond, reasonably satisfactory to Lender,
to protect Lenders interest.

 

Inspection. Permit employees or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower's other properties and to examine or audit Borrower's books, accounts, and records and to make copies and memoranda of
Borrower's books, accounts, and records. If Borrower now or at any time hereafter maintains any records (including without limitation computer generated records and computer software programs for the generation of such records) in the possession of a third party, Borrower, upon request of Lender, shall notify such party to permit Lender free access to such records at all reasonable times and to provide Lender with copies of any records it may request, all at Borrower's expense.

 

Compliance Certificates. Unless waived in writing by Lender, provide Lender within thirty (30) days after the end of each fiscal year, with a certificate executed by Borrower's chief financial officer, or other officer or person acceptable to Lender, certifying
that the representations and warranties set forth in this Agreement are true and correct as of the date of the certificate and further certifying that, as of the date of the certificate, no Event of Default exists under this Agreement.

 

Environmental Compliance and Reports. Borrower shall comply in all respects with any and all Environmental Laws; not cause or permit to exist, as a result of an intentional or unintentional action or omission on Borrower's part or on the part of any third party,
on property owned and/or occupied by Borrower, any environmental activity where damage may result to the environment, unless such environmental activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal, state or local governmental authorities; shall furnish to Lender promptly and in any event within thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation, directive, letter or other communication from any governmental agency or instrumentality
concerning any intentional or unintentional action or omission on Borrower's part in connection with any environmental activity whether or not there is damage to the environment and/or other natural resources.

 

Additional Assurances. Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, assignments, financing statements, instruments, documents and other agreements as Lender or its attorneys may reasonably request to
evidence and secure the Loans and to perfect all Security Interests.

 

RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law, rule, regulation or guideline, or the interpretation or application of any thereof by any court or administrative or governmental authority (including any request or policy not having
the force of law) shall impose, modify or make applicable any taxes (except federal, state or local income or franchise taxes imposed on Lender), reserve requirements, capital adequacy requirements or other obligations which would (A) increase the cost to Lender for extending or maintaining the credit facilities to which this Agreement relates, (B) reduce the amounts payable to Lender under this Agreement or the Related Documents, or (C) reduce the rate of return on Lender's capital as a consequence of Lender's
obligations with respect to the credit facilities to which this Agreement relates, then Borrower agrees to pay Lender such additional amounts as will compensate Lender therefor, within five (5) days after Lender's written demand for such payment, which demand shall be accompanied by an explanation of such imposition or charge and a calculation in reasonable detail of the additional amounts payable by Borrower, which explanation and calculations shall be conclusive in the absence of manifest error.

 

LENDER'S EXPENDITURES. Borrower recognizes and agrees that Lender may incur certain expenses in connection with Lender's exercise of rights under this Agreement. If any action or proceeding is commenced that would materially affect Lender's interest in the Collateral
or if Borrower fails to comply with any provision of this Agreement or any Related Documents, including but not limited to Borrower's failure to discharge or pay when due any amounts Borrower is required to discharge or pay under this Agreement or any Related Documents, Lender on Borrower's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, Encumbrances and other claims, at any time levied or placed on any Collateral
and paying all costs for insuring, maintaining and preserving any Collateral, including without limitation, the purchase of insurance protecting only Lender's interest in any Collateral. Lender may further take such other action or actions and incur such additional expenditures as Lender may deem to be necessary and proper to cure or rectify any actions or inactions on Borrower's part as may be required under this Agreement. Nothing under this Agreement or otherwise shall obligate Lender to take any such actions
or to incur any such additional expenditures on Borrower's behalf, or as making Lender in any way responsible or liable for any loss, damage, or injury to any Collateral, to Borrower, or to any other person or persons, resulting from Lender's election not to take such actions or to incur such additional expenses. In addition, Lender's election to take any such actions or to incur such additional expenditures shall not constitute a waiver or forbearance by Lender of any Event of Default under this Agreement. All
such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Borrower. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining
term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity.

 

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower shall not, without the prior written consent of Lender:

 

Indebtedness and Liens. (1) Except for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this Agreement, create, incur or assume Indebtedness for borrowed money, Including capital leases, (2) sell, transfer, mortgage,
assign, pledge, lease, grant a security interest in, or encumber any of Borrower's assets (except as allowed as Permitted Liens), or (3) sell with recourse any of Borrower's accounts, except to Lender.

 

Continuity of Operations. (1) Engage in any business activities substantially different than those in which Borrower is presently engaged, (2) cease operations, liquidate, merge, transfer, acquire or consolidate with any other entity, change its name, dissolve
or transfer or sell Collateral out of the ordinary course of business.

 

Agreements. Enter into any agreement containing any provisions which would be violated or breached by the performance of Borrower's obligations under this Agreement or in connection herewith.

 

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor
is in default under the terms of this Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender; (B) Borrower or any Guarantor dies, becomes incompetent or becomes insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse change in Borrower's financial condition, in the financial condition of any

 

  

  

  

Exhibit 10.1

BUSINESS LOAN AGREEMENT

(Continued)

	
Loan No. 25962264
	  	
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Guarantor, or in the value of any Collateral securing any Loan; or (D) any Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any other loan with Lender; or (E) Lender in good faith deems itself insecure, even though no Event of Default shall have occurred.

 

DEPOSIT ACCOUNTS. As collateral security for repayment of Borrower's Note and all renewals and extensions, as well as to secure any and all other loans, notes, Indebtedness and obligations that Borrower may now and In the future owe to Lender or incur in Lender's
favor, whether direct or indirect, absolute or contingent, due or to become due, of any nature and kind whatsoever (with the exception of any indebtedness under a consumer credit card account), and to the extent permitted by law, Borrower is granting Lender a continuing security interest in any and all funds that Borrower may now and in the future have on deposit with Lender or in certificates of deposit or other deposit accounts as to which Borrower is an account holder (with the exception of IRA, pension, and
other tax-deferred deposits). Borrower further agrees that, to the extent permitted by law, Lender may at any time apply any funds that Borrower may have on deposit with Lender or in certificates of deposit or other deposit accounts as to which Borrower is an account holder against the unpaid balance of Borrower's Note and any and all other present and future indebtedness and obligations that Borrower may then owe to Lender, in principal, interest, fees, costs, expenses, and reasonable attorneys' fees.

 

EVENTS OF DEFAULT. The following actions or inactions or both shall constitute Events of Default under this Agreement:

 

Default Under the Note. Should Borrower default in the payment of principal or interest under the Note or any of the Indebtedness.

 

Default Under this Agreement. Should Borrower violate, or fail to comply fully with any of the terms and conditions of, or default under this Agreement.

 

Default Under other Agreements. Should any default occur or exist under any Related Document which directly or indirectly secures repayment of the Loan and any of the Indebtedness.

 

Other Defaults in Favor of Lender. Borrower or any guarantor defaults under any other loan, extension of credit, security right, instrument, document, or agreement, or obligation in favor of Lender.

 

Insolvency. Should the suspension, failure or insolvency, however evidenced, of Borrower or any Guarantor occur or exist.

 

Readjustment of Indebtedness. Should proceedings for readjustment of indebtedness, reorganization, composition or extension under any insolvency law be brought by or against Borrower or any Guarantor.

 

Assignment for Benefit of Creditors. Should Borrower or any Guarantor file proceedings for a respite or make a general assignment for the benefit of creditors.

 

Receivership. Should a receiver of all or any part of Borrower's property, or the property of any Guarantor, be applied for or appointed.

 

Dissolution Proceedings. Proceedings for the dissolution or appointment of a liquidator of Borrower or any guarantor are commenced.

 

False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf, the Note, is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at
any time thereafter.

 

Insecurity. Lender in good faith believes itself insecure with regard to repayment of the Loan.

 

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related Documents, all commitments and obligations of Lender under this Agreement or the Related Documents or any other agreement immediately
will terminate (including any obligation to make further Loan Advances or disbursements), and, at Lender's option, all Indebtedness immediately will become due and payable, all without notice of any kind to Borrower, except that in the case of an Event of Default of the type described in the "Insolvency" subsection above, such acceleration shall be automatic and not optional. In addition, Lender shall have all the rights and remedies provided in the Related Documents or available at law, in equity, or otherwise.

 

Lender shall have the right at its sole option, to accelerate payment of Borrower's Note in full, in principal, interest, costs, expenses, attorneys' fees, and other fees and charges, as well as to accelerate the maturity of any and all other loans and/or obligations that Borrower may then owe to Lender, whether direct
or indirect, or by way of assignment or purchase of a participation interest, and whether absolute or contingent, liquidated or unliquidated, voluntary or involuntary, determined or undetermined, due or to become due, and whether now existing or hereafter arising, and whether Borrower is obligated alone or with others on a "solidary" or "joint and several" basis, as a principal obligor or as a surety, of every nature and kind whatsoever, whether any such indebtedness may be barred under any statute of limitations
or otherwise may be unenforceable or voidable for any reason whatsoever.

 

Lender shall have the additional right, again at its sole option, to file an appropriate collection action against Borrower and/or against any guarantor or guarantors of Borrower's Loan and Note, and/or to proceed or exercise any rights against any Collateral then securing repayment of Borrower's Loan and Note. Borrower
and each guarantor further agree that Lender's remedies shall be cumulative in nature and nothing under this Agreement or otherwise, shall be construed as to limit or restrict the options and remedies available to Lender following any event of default under this Agreement or otherwise.

 

Except as may be prohibited by applicable law, all of Lender's rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation
of Borrower or of any Grantor shall not affect Lender's right to declare a default and to exercise its rights and remedies.

 

MODIFICATIONS TO THIS BUSINESS LOAN AGREEMENT. 1. In the section entitled "Miscellaneous Provisions" under the subtopic "Attorneys' Fees; Expenses" this paragraph shall read as follows: "Borrower agrees to pay upon demand all of Lender's costs and expenses, including
Lender's reasonable attorneys' fees in an amount not exceeding 10.000% of the principal balance due on the Loan and Lender's legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement, and Borrower shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's reasonable attorneys' fees in an amount not exceeding 10.000% of the principal balance due on the Loan and legal expenses whether or not there
is a lawsuit, including reasonable attorneys' fees in an amount not exceeding 10.000% of the principal balance due on the Loan and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Borrower also shall pay all court costs and such additional fees as may be directed by the court."

 

2. In the section "AFFIRMATIVE COVENANTS" under the subtopic "Financial Statements: Interim Statements" the following sentence will be added: "In lieu of an interim statement the Borrower shall provide and Lender shall accept the Borrower's 10Q statement as filed with the Securities and Exchange Commission."

 

OTHER TERMS AND CONDITIONS:   1.    FIRST GUARANTY BANK LOAN TO BOOK VALUE OF BOONE COUNTY BANK STOCK SHALL NOT TO EXCEED 60%.

 

2.      BOONE COUNTY BANK MAY NOT DIVIDEND EARNINGS TO PREMIER BANCORP IF LOAN TO BOOK VALUE EXCEEDS 60%.

 

3.      ANY SPECIFIC LANGUAGE LINED OUT AN INITIALED SHALL BE CONSIDERED AMENDED OR EXCLUDED FROM THIS CONTRACT.

 

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Agreement:

 

Amendments. No amendment, modification, consent or waiver of any provision of this Agreement, and no consent to any departure by Borrower therefrom, shall be effective unless the same shall be in writing signed by a duly authorized officer of Lender, and then
shall be effective only as to the specific instance and for the specific purpose for which given.

 

Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.

 

Consent to Loan Participation. Borrower agrees and consents to Lender's sale or transfer, whether now or later, of one or more participation interests in the Loan to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without

  

  

  

Exhibit 10.1

BUSINESS LOAN AGREEMENT

(Continued)

	
Loan No. 25962264
	  	
Page 5

 

any limitation whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy Borrower may have with respect to such matters. Borrower additionally waives
any and all notices of sale of participation interests, as well as all notices of any repurchase of such participation interests. Borrower also agrees that the purchasers of any such participation interests will be considered as the absolute owners of such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the sale of such participation interests. Borrower further waives all rights of offset or counterclaim that it may have now or later against
Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such purchaser may enforce Borrower's obligation under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan. Borrower further agrees that the purchaser of any such participation interests may enforce its interests irrespective of any personal claims or defenses that Borrower may have against Lender.

 

Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Louisiana without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of Louisiana.

 

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right
or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Borrower, or between Lender and any Grantor, shall constitute a waiver of any of Lender's rights or of any of Borrower's or any Grantor's obligations as to any future transactions. Whenever the consent of Lender
is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

 

Notices. To give Borrower any notice required under this Agreement, Lender may hand deliver or mail the notice to Borrower at Borrower's last address in Lender's records. If there is more than one Borrower under this Agreement, notice to a single Borrower shall
be considered as notice to all Borrowers. To give Lender any notice under this Agreement, Borrower (or any Borrower) shall mail the notice to Lender by registered or certified mail at the address specified in this Agreement, or at any other address that Lender may have given to Borrower (or any Borrower) by written notice as provided in this section. All notices required or permitted under this Agreement must be in writing and will be considered as given on the day it is delivered by hand or deposited in the
U.S. Mail as provided herein.

 

Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term hereof, such provision shall be fully severable. This Agreement shall be construed and enforceable as if the
illegal, invalid or unenforceable provision had never comprised a part of it, and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement, a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and
legal, valid and enforceable.

 

Subsidiaries and Affiliates of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including without limitation any representation, warranty or covenant, the word "Borrower" as used in this Agreement shall include all
of Borrower's subsidiaries and affiliates. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to require Lender to make any Loan or other financial accommodation to any of Borrower's subsidiaries or affiliates.

 

Successors and Assigns. All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents shall bind Borrower's successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Borrower
shall not, however, have the right to assign Borrower's rights under this Agreement or any interest therein, without the prior written consent of Lender.

 

Survival of Representations and Warranties. Borrower understands and agrees that in extending Loan Advances, Lender is relying on all representations, warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered
by Borrower to Lender under this Agreement or the Related Documents. Borrower further agrees that regardless of any investigation made by Lender, all such representations, warranties and covenants will survive the extension of Loan Advances and delivery to Lender of the Related Documents, shall be continuing in nature, shall be deemed made and redated by Borrower at the time each Loan Advance is made, and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full, or
until this Agreement shall be terminated in the manner provided above, whichever is the last to occur.

 

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically staled to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America.
Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Louisiana Commercial Laws (La. R.S. 10: 9-101, et seq.). Accounting words and terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with generally accepted accounting principles as in effect on the date of this Agreement:

 

Advance. The word "Advance" means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower's behalf on a line of credit or multiple advance basis under the terms and conditions of this Agreement.

 

Agreement. The word "Agreement" means this Business Loan Agreement, as this Business Loan Agreement may be amended or modified from time to time, together with all exhibits and schedules attached or to be attached to this Business Loan Agreement from time to time.

 

Borrower. The word "Borrower" means PREMIER FINANCIAL BANCORP, INC. and includes all co-signers and co-makers signing the Note and all their successors and assigns.

 

Collateral. The word "Collateral" means all property and assets granted as collateral security for a Loan, whether real or personal property, whether granted directly or indirectly, whether granted now or in the future, and whether granted in the form of a security
interest, mortgage, collateral mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien, charge, lien or title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever, whether created by law, contract, or otherwise.

 

Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, at seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.

 

Event of Default. The words "Event of Default" mean any of the events of default set forth in this Agreement in the default section of this Agreement.

 

GAAP. The word "GAAP" means generally accepted accounting principles.

 

Grantor. The word "Grantor" means each and all of the persons or entities granting a Security Interest in any Collateral for the Loan, including without limitation all Borrowers granting such a Security Interest.

 

Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Loan.

 

Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly
used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used In their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.

 

Indebtedness. The word "Indebtedness" means the indebtedness evidenced by the Note or Related Documents, In principal, Interest, costs, expenses and attorneys' fees and all other fees and charges together with all other indebtedness and costs and expenses for
which Borrower is responsible under this Agreement or under any of the Related Documents.

 

Lender. The word "Lender" means FIRST GUARANTY BANK, its successors and assigns, and any subsequent holder or holders of Borrower's Loan and Note, or any interest therein.

 

Loan. The word "Loan" means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter

 

  

  

  

Exhibit 10.1

BUSINESS LOAN AGREEMENT

(Continued)

	
Loan No. 25962264
	  	
Page 6

 

existing, and however evidenced, including without limitation those loans and financial accommodations described herein or described on any exhibit or schedule attached to this Agreement from time to time.

 

Note. The word "Note" means the Note executed by PREMIER FINANCIAL BANCORP, INC. in the principal amount of $1,000,000.00 dated December 31, 2009, together with all renewals, extensions, modifications, refinancings,
consolidations and substitutions of and for the note or credit agreement.

 

Permitted Liens. The words "Permitted Liens" mean (1) liens and security interests securing Indebtedness owed by Borrower to Lender; (2) liens for taxes, assessments, or similar charges either not yet due or being contested in good faith; (3) liens of materialmen,
mechanics, warehousemen, or carriers, or other like liens arising in the ordinary course of business and securing obligations which are not yet delinquent; (4) purchase money liens or purchase money security interests upon or in any property acquired or held by Borrower in the ordinary course of business to secure indebtedness outstanding on the date of this Agreement or permitted to be incurred under the paragraph of this Agreement titled "Indebtedness and Liens"; (5) liens and security interests which, as of
the date of this Agreement, have been disclosed to and approved by the Lender in writing; and (6) those liens and security interests which in the aggregate constitute an immaterial and insignificant monetary amount with respect to the net value of Borrower's assets.

 

Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Loan.

 

Security Agreement. The words "Security Agreement" mean and include individually, collectively, interchangeably and without limitation any agreements, promises, covenants, arrangements, understandings or other agreements, whether created by law, contract, or otherwise,
evidencing, governing, representing, or creating a Security Interest.

 

Security Interest. The words "Security Interest" mean, without limitation, any and all types of collateral security, present and future, whether in the form of a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge,
chattel mortgage, collateral chattel mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien or title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever whether created by law, contract, or otherwise.

 

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED DECEMBER 31, 2009.

 

BORROWER:

 

 

PREMIER FINANCIAL BANCORP, INC.

 

By:  /s/ Robert W. Walker                                                                                                                                       

 

     ROBERT W. WALKER, President & CEO of PREMIER FINANCIAL BANCORP, INC.

 

 

LENDER:

 

 

FIRST GUARANTY BANK

 

By:  /s/ Eric J. Dosch                                                                                                                                     

 

     ERIC J. DOSCH, Loan Officer

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