Document:

Exhibit 10.3

 

Exhibit 10.3

AMENDED AND RESTATED CHANGE-IN-CONTROL AGREEMENT

     THIS AMENDED AND RESTATED CHANGE-IN-CONTROL AGREEMENT is made and entered into as of the 29th
day of August 2007 and amends and restates the Change-in-Control Agreement dated May 23, 2007 by
and between TSB FINANCIAL CORPORATION (the “Company”), a North Carolina corporation, and Janet H.
Hollar (“Employee”), an individual residing in Charlotte, North Carolina.

Background Statement

     WHEREAS, The Scottish Bank (the “Bank”) is a wholly owned subsidiary of the Company, and
Employee is a valued employee of the Bank.

     WHEREAS, Employee and the Company wish to amend and restate the Original Agreement to assure
compliance with Section 409A of the Internal Revenue Code and to correct minor typographical
errors.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, and of other good
and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the
Company and Employee agree as follows:

	 	1.	 	Termination following a Change-in-Control. If a Change-in-Control (as
defined in Section 1(iii) hereof) occurs and if, within one year following the
Change-in-Control, the employment of Employee is terminated (x) by the Company or the
Bank other than for Cause or (y) by Employee for Good Reason, Employee’s Compensation
shall continue to be paid, subject to applicable withholding, by the Company for a
period of 12-months following such termination of employment. In lieu of receiving
payment of Compensation for such 12-month period in installments, the Employee may
elect, at any time prior to the earlier to occur of a Change-in-Control or action by
the Board of Directors of the Company with respect to an event which would, upon
consummation, result in a Change-in-Control (which election shall be evidence by
notice filed with the Company), to be paid the present value of any such Compensation
in a lump sum within 30 days of termination of the Employee’s employment under
circumstances entitling such Employee to Compensation hereunder. The calculation of
the amount due shall be made by the independent accounting firm then performing the
Company’s independent audit, and such calculation, including by not limited to the
discount factor used to determine present value, shall be conclusive.
	 
	 	 	 	For purposes of this Agreement, the following terms shall have the meanings
indicated:

 

 

	 	(i)	 	Cause. Termination by the Company or the Bank for “Cause”
shall mean (A) termination on account of willful misconduct of a material
nature by the Employee in connection with performance of her duties as an
employee; (B) use of alcohol or narcotics that affects her ability to perform
her duties as an employee; (C) conviction of a felony or serious misdemeanor
involving moral turpitude; (D) embezzlement or theft from the Company or the
Bank; (E) gross inattention to or dereliction of duty; or (F) performance by
the Employee of any other willful acts which Employee knew or reasonably
should have known would be materially detrimental to the Company or the Bank.
	 
	 	(ii)	 	Good Reason. Termination by the Employee for “Good Reason”
shall mean termination of Employee’s employment by Employee following the
failure of the Company to rectify any of the following changes in Employee’s
employment within 30 days after receipt of notice by the Company from Employee
of such change given within 90 days after the effective date of such change:
(A) a material diminution in Employee’s authority, duties or responsibilities
as in effect immediately preceding the Change-in-Control; (B) a material
diminution in the rate of Employee’s base salary as in effect immediately
preceding the Change-in-Control, (C) a material diminution in the authority,
duties or responsibilities of the supervisor to whom Employee is required to
report, (D) a material diminution in the budget over which Employee has
authority, or (E) the relocation of Employee, without Employee’s consent, to a
location outside a 25 mile radius the Company’s principal location immediately
preceding the Change-in-Control.
	 
	 	(iii)	 	Change-in-Control. For purposes of the Agreement,
“Change-in-Control” shall mean (A) the consummation of a merger,
consolidation, share exchange or similar transaction of the Company with any
other corporation as a result of which the holders of the voting capital stock
of the Company as a group would receive less than 50% of the voting capital
stock of the surviving or resulting corporation; (B) the sale or transfer
(other than as security for obligations of the Company) of substantially all
the assets of the Company; (C) in the absence of a prior expression of
approval by the Board of Directors, the acquisition of more than 20% of the
Company’s voting capital stock by any person within the meaning of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), other than a person, or group including a person, who beneficially
owned, as of May 23, 2007, more than 5% of the Company’s securities; (D)
during any period of two consecutive years, individuals who at the beginning
of such period constitute the Board of Directors of the Company cease for any
reason to constitute at least a majority thereof unless

 

 

	 	 	 	the election, or the nomination for election by the Company’s
shareholders, of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the
beginning of the period; or (E) any other change-in-control of the Company
of a nature that would be required to be reported in response to Item 6(e)
of Schedule 14A of Regulation 14A promulgated under the Exchange Act or
the acquisition of control, within the meaning of Section 2(a)(2) of the
Bank Holding company Act of 1956, as amended, or Section 602 of the Change
in Bank Control Act of 1978, of the Company by any person, company or
other entity.

	 	(iv)	 	Compensation. Employee’s Compensation shall consist of the
following: (A) Employee’s annual base salary, as paid by the Company or the
Bank, in effect immediately preceding the Change-in-Control and (B) the
average of any bonus paid by the Company or the Bank to Employee during the
two most recent fiscal year ending prior to such Change-in-Control pursuant to
any of the Company’s incentive bonus plan.

	 	2.	 	Additional Benefits. Upon termination of Employee’s employment entitling
Employee to Compensation set forth in Section 1 hereof, the Company shall maintain in
full force and effect for the continued benefit of Employee for such 12-month period
health insurance (including coverage for Employee’s dependents to the extent dependent
coverage is provided by the Company for its employees generally) under such plans and
programs in which Employee was entitled to participate immediately prior to the date
of such termination of employment, provided that Employee’s continued participation is
possible under the general terms and provisions of such plans and programs. In the
event that Employee’s participation in any such plan or program is barred, the Company
shall arrange to provide Employee with health insurance benefits for such 12-month
period substantially similar to those which Employee would otherwise have been
entitled to receive under such plans and programs from which her continued
participation is barred. However, in no event will Employee receive from the Company
the health insurance contemplated by this Section 2 if Employee received comparable
insurance from any other source.
	 
	 	3.	 	Limit on Payments. It is the intention of the Company and Employee that no
portion of the payment made under this Agreement, or payments to or for Employee under
any other agreement or plan, be deemed to be an excess parachute payment as defined in
Section 280G of the Internal Revenue Coded of 1986, as amended (the “Code”) or any
successor provision. The Company and Employee agree that the present value of any
payment hereunder and any other payment to or for the benefit of Employee in the
nature of compensation, receipt of which is contingent or

 

 

	 	 	 	a Change-in-Control of the Company, and to which Section 280G of the Code or any
successor provision thereto applies, shall not exceed an amount equal to one dollar
less than the maximum amount that Employee may receive without becoming subject to
the tax imposed by Section 4999 of the Code or any successor provision or which the
Company may pay without loss of deduction under Section 280G of the Code or any
successor provisions. Present value for purposes of this Agreement shall be
calculated in accordance with Section 1274(b)(2) of the Code or any successor
provision. In the event that the provisions of Section 280G and 4999 of the Code
or any successor provisions are repealed without succession, this Section 3 shall
be of no further force or effect.

	 	4.	 	Effect of Agreement. Nothing contained in this Agreement shall confer upon
Employee any rights to continued employment by the Company or the Bank or shall
interfere in any way with the right of the Company or the Bank to terminate her
employment at any time for any reason. The provisions of this Agreement shall not
affect in any way the right or power of the company to change its business structure
or to effect a merger, consolidation, share exchange or similar transaction, or to
dissolve or liquidate, or sell or transfer all or part of its business or assets.
	 
	 	5.	 	Source of Payment. All payments provided for under this Agreement shall be
paid in cash from the general funds of the Company, and no special or separate fund
shall be established, and no other segregation of assets shall be made to assure
payment, except as provided to the contrary in funded benefits plans. Employee shall
have no right, title or interest whatsoever in or to any investments that the Company
may make to aid the Company in meeting its obligations hereunder. Nothing contained
herein, and no action taken pursuant to the provisions hereof, shall create or be
construed to create a trust of any kind or a fiduciary relationship between the
Company and Employee or any other person. To the extent that any person acquires a
right to receive payments from the Company hereunder, such right shall be no greater
than the right of an unsecured creditor of the Company.
	 
	 	6.	 	General Provisions.
	 
	 	(i)	 	Binding Effect. This Agreement shall be binding upon, and inure to the
benefit of, Employee and the Company and their respective permitted successors and
assigns. Neither this Agreement nor any right or interest hereunder shall be
assignable by Employee, her beneficiaries, or legal representatives without the
Company’s prior written consent. As used in the Agreement, “Company” shall mean that
company as defined herein and any successor to its business and/or assets as aforesaid
that executes and delivers the agreement provided for in the Section 6(i) or that

 

 

	 	 	 	otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law.

	 	(ii)	 	Entire Agreement and Amendment. This Agreement replaces any and all previous
agreements, representations and understandings relating to the same or similar subject
matter which the Employee and the Company may have entered into with the Company in
connection with Employee’s employment by the Bank. This Agreement may not be modified
or amended except by an instrument in writing signed by the parties hereto.
	 
	 	(iii)	 	Headings and Gender. The headings of paragraphs herein are included solely
for convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement.
	 
	 	(iv)	 	Governing Law. This agreement has been executed and delivered in the State of
North Carolina, and its validity, interpretation, performance and enforcement shall be
governed by the laws of such state.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the day
and year first above stated.

	 	 	 	 	 
	 	TSB FINANCIAL CORPORATION

 	 
	 	By:  	/s/ James H. Barnhardt, Jr.
 	 
	 	 	James H. Barnhardt, Jr., 	 
	 	 	Chairman of the Board of Directors 	 
	 
	 	EMPLOYEE:

 	 
	 	/s/ Janet H. Hollar
 	 
	 	Janet H. HollarEX-4.1

 

Exhibit 4.1

FOURTH AMENDMENT

TO CREDIT AGREEMENT

     This Fourth Amendment to Credit Agreement (“Amendment”), is entered into as of July
31, 2007, by and between LaSalle Bank National Association (the “Lender”) and Telvent
Traffic North America Inc., a corporation organized and existing under the laws of the State of
Texas (the “Borrower”).

WITNESSETH:

     WHEREAS, the Borrower and the Lender have entered into a Credit Agreement, dated as of May 31,
2006 (as amended, extended, modified or supplemented from time to time, the “Credit
Agreement”);

     WHEREAS, the Borrower and the Lender desire to amend certain provisions of the Credit
Agreement to extend the Termination Date within the meaning thereof to November 1, 2007 as set
forth under the terms and conditions stated herein;

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1. Definitions. Capitalized terms used herein but not defined herein shall have the
meaning ascribed thereto in the Credit Agreement, as amended hereby.

2. Amendment.

     (a) Section 1.01 of the Credit Agreement is hereby amended to delete the reference to the
definition of “Termination Date” contained therein and to replace said reference as follows:

     “Termination Date’ means November 1, 2007.”

3. Conditions Precedent. This Amendment shall not become effective until:

     (a) This Amendment shall have been executed and delivered by the Borrower and the Lender;

     (b) Certificate. A certificate signed by a Responsible Officer, dated as of the time
of execution and delivery of this Amendment, stating that:

          (1) the representations and warranties contained in Article V of the Credit Agreement
are true and correct on and as of such date, as though made on and as of such date;

 

 

          (2) no Default or Event of Default exists or would result from the execution, delivery and
performance of this Amendment; and

          (3) no event or circumstance that has resulted or could reasonably be expected to result in a
Material Adverse Effect;

     (c) Such other approvals, opinions, documents, financial statements or materials as the Lender
may reasonably request.

     (d) An executed Affirmation of Guaranty substantially in the form of Annex 1 to this Amendment
(the “Affirmation”);

     (e) Resolutions; Incumbency.

          (1) Copies of the resolutions, powers of attorney or other analogous action of the board of
directors, members or other governing body of the Guarantor authorizing the transactions
contemplated hereby, certified as of the date hereof by the Secretary, Assistant Secretary or other
analogous official of the Guarantor; and

          (2) A certificate of the Secretary, Assistant Secretary or other analogous official of the
Guarantor, certifying the names and true signatures of the officers or other persons of the
Guarantor authorized to execute, deliver and perform, the Affirmation.

4. Representations and Warranties. The Borrower represents and warrants to the Lender
(which representations and warranties shall become part of the representations and warranties made
by the Borrower under the Credit Agreement) that:

     (a) The execution, delivery and performance of this Amendment has been duly authorized by all
necessary company action and will not require any consent or approval of its shareholders, violate
in any material respect any provision of any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award presently in effect having applicability to it or
constitute a default under any indenture or loan or credit agreement or any other agreement, lease
or instrument to which the Borrower is a party or by which it or its properties may be bound or
affected;

     (b) No consent, approval or authorization of or declaration or filing with any governmental
authority or any non-governmental person or entity, including without limitation, any creditor or
partner of the Borrower is required on the part of the Borrower in connection with the execution,
delivery and performance of this Amendment or the transactions contemplated hereby and the
execution, delivery and performance of this Amendment will not violate the terms of any contract or
agreement to which the Borrower is a party;

     (c) The Credit Agreement, as amended pursuant to this Amendment, is the legal, valid and
binding obligation of the Borrower, enforceable against it in accordance with the terms thereof;

-2-

 

     (d) After giving effect to the Amendment contained herein and effective pursuant hereto, the
representations and warranties contained in Article V of the Credit Agreement (other than those
made solely in reference to an express date) are true and correct on and as of the Effective Date
hereof in the same force and effect as if made on and as of such Effective Date; and

     (e) After giving effect to this Amendment no Event of Default has occurred or exists under the
Credit Agreement as of the date hereof.

5. Expenses. The Borrower agrees to pay and save the Lender harmless from liability for
the payment of all costs and expenses arising in connection with this Amendment, including the
reasonable fees and expenses of Baker & McKenzie LLP, counsel to the Lender, in connection with the
preparation and review of this Amendment and any related documents.

6. Governing Law. This Amendment shall be governed by and construed in accordance with the
internal laws of the State of Illinois.

7. Miscellaneous. This Amendment may be executed in one or more counterparts, each of
which together shall constitute the same agreement. One or more counterparts of this Amendment may
be delivered by facsimile, with the intention that such delivery shall have the same effect as
delivery of an original counterpart thereof. The Borrower hereby ratifies and affirms all of its
obligations and the terms of the Credit Agreement and all amendments and modifications thereto.

-3-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered as of the day and year first above written.

	 	 	 
	LASALLE BANK NATIONAL ASSOCIATION

	By:
	 	/s/ Scott McCarty
	 

	 	 

	Its:
	 	First Vice President
	 

	 	 

	TELVENT TRAFFIC NORTH AMERICA INC.

	By:
	 	/s/ David Jardine
	 

	 	 

	Its:

	 	Chairman & President
	 

	 	 

	By:

	 	/s/ Cameron Demcoe
	 

	 	 

	Its:

	 	Secretary
	 

	 	 

-4-

 

ANNEX 1

FORM OF AFFIRMATION

OF GUARANTY

     Telvent GIT, S.A., a company organized under the laws of the Kingdom of Spain (the
“Guarantor”) hereby acknowledges, agrees and affirms the following for the benefit of
LaSalle Bank National Association (the “Lender”) in its capacity as the Lender under the
Credit Agreement (the “Credit Agreement”), dated May 31, 2006, by and between the Lender
and Telvent Traffic North America Inc., a corporation organized and existing under the laws of the
State of Texas (the “Borrower”). Capitalized terms appearing herein but not defined herein
shall have the respective meanings ascribed thereto in the Credit Agreement.

     WHEREAS, pursuant to the Guaranty, dated as of May 31, 2006, entered into by the Guarantor in
favor of the Lender (the “Guaranty”), the Guarantor unconditionally guarantees the
“Guaranteed Obligations” as defined therein, which include, among other things, certain obligations
of the Borrower arising under or described in the Credit Agreement;

     WHEREAS, the Guarantor is familiar with the terms and conditions contained in the Credit
Agreement;

     WHEREAS, pursuant to that certain Fourth Amendment to Credit Agreement (the
“Amendment”) the Lender has agreed to extend the Termination Date to November 1, 2007, from
which extension the undersigned derives a financial benefit and accordingly the Guarantor desires
to reaffirm its obligations under the Guaranty after giving effect to the Amendment.

     NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Guarantor and the Bank agree as follows:

     1. Reaffirmation After giving effect to the Amendment and the increase to the
Commitment contemplated thereby, all of the Guaranteed Obligations under and within the meaning of
the Guaranty are hereby unconditionally ratified and affirmed and remain in full force and effect,
enforceable against the undersigned in accordance with their terms.

[The remainder of this page has been left blank intentionally.]

 

 

     2. Miscellaneous This Affirmation shall be governed by and construed in accordance
with the internal laws of the State of Illinois. Signatures to this Affirmation may be delivered
in counterparts, with the intention that all such counterparts, when taken together, shall
constitute one and the same instrument. One or more executed counterparts of this Affirmation may
be delivered by facsimile or by e-mail, with the intention that such delivery shall have the same
effect as delivery of an original counterpart thereof.

     Executed as of July ___, 2007

	 	 	 	 	 
	 	 	TELVENT GIT, S.A.

	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Its:

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