Document:

Exhibit 10.1

 

FURNITURE BRANDS INTERNATIONAL, INC.

EXECUTIVE SEVERANCE PLAN

 

	
            1.
 	
            Purpose.
 

The Furniture Brands International, Inc. Executive Severance Plan (“Plan”) is a top hat welfare plan under the Employee Retirement Income Security Act of 1974 and is intended to provide severance benefits to certain key employees of Furniture Brands International, Inc. (“Company”) in the event of their termination of employment.  The provisions herein are being offered and provided at the sole discretion of the Company.  This Plan is effective May 3, 2007.

	
            2.
 	
            Definitions.
 

As used herein, the terms identified below shall have the meanings indicated:

	
             
  	
            (a)
 	
            “Applicable Amount” means two times the lesser of:
 

	
             
  	
            (i)
 	
            the Eligible Executive’s annualized compensation (as defined within the meaning of Section 409A of the Code) based upon the Eligible Executive’s annual rate of pay for the year preceding the year in which the Eligible Executive’s employment with the Company terminates (adjusted for any increase during that year that was expected to continue indefinitely if the Eligible Executive’s employment had not terminated); or
 

	
             
  	
            (ii)
 	
            the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which the Eligible Executive’s employment is terminated ($225,000 in 2007).
 

	
             
  	
            (b)
 	
            “Administrator” means the Human Resources Committee of the Board of Directors of the Company (unless and until the Board appoints another committee to administer this Plan).
 

	
             
  	
            (c)
 	
            “Board” means the Board of Directors of the Company.
 

	
             
  	
            (d)
 	
            “Cause” means the Company’s termination of an Eligible Executive’s employment with the Company as a result of:
 

	
             
  	
            (i)
 	
            the willful and continuous failure by an Eligible Executive to substantially perform the Eligible Executive’s duties with the Company (other than any such failure resulting from the Eligible Executive’s incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Eligible Executive by the Company which specifically identifies the manner in which the Company believes that the Eligible Executive has not substantially performed his other duties,
 

 

1

 

 

	
             
  	
            (ii)
 	
            gross misconduct or gross negligence by an Eligible Executive provided (A) the Board has determined that the resulting harm to the Company from the Eligible Executive’s gross misconduct or gross negligence cannot be adequately remedied, or (B) the Eligible Executive fails to correct any resulting harm to the Company within thirty (30) days after a written demand for correction is delivered to the Eligible Executive by the Company which specifically identifies both the manner in which the Company believes that the Eligible Executive has engaged in gross misconduct or gross negligence and an appropriate method of correcting any resulting harm to the Company, or
 

	
             
  	
            (iii)
 	
            an Eligible Executive’s conviction of or the entering of a plea of guilty or nolo contendere to the commission of a felony.  
 

	
             
  	
            (e)
 	
            “COBRA” means the Consolidated Budget Reconciliation Act of 1985.
 

	
             
  	
            (f)
 	
            “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and other guidance promulgated by the Treasury Department and the Internal Revenue Service thereunder.
 

	
             
  	
            (g)
 	
            “Constructive Termination” means the Eligible Executive’s voluntary termination of employment with the Company as a result of:
 

	
             
  	
            (i)
 	
            a material diminution in the Eligible Executive’s authority, duties, or responsibilities, or a material change to the direct supervisor to whom the Executive is required to report, except as part of, and consistent with, an organizational change; 
 

	
             
  	
            (ii)
 	
            a change, caused by the Company, in geographic location of greater than 50 miles of the location at which the Eligible Executive primarily performs services for the Company; or
 

	
             
  	
            (iii)
 	
            a material reduction in the Eligible Executive’s base pay, incentive compensation, or benefits except as part of, and consistent with, an organizational change.
 

	
             
  	
            (h)
 	
            “Disability” means any medically determinable physical or mental impairment resulting in the Eligible Executive’s inability to perform the duties of his or her position or any substantially similar position, where such impairment is expected to result in death or is expected to last for a continuous period of not less than six (6) months.
 

	
             
  	
            (i)
 	
            “Eligible Executive” means a key employee of the Company who:
 

	
             
  	
            (i)
 	
            is expressly designated as an ‘Eligible Executive’ by the Company for the purposes of this Plan pursuant to resolutions duly adopted by the Board, and 
 

 

2

 

 

	
             
  	
            (ii)
 	
            receives written notice of his or her status as an Eligible Executive.
 

	
             
  	
            (j)
 	
            “Severance Payment” means the aggregate gross amount of severance payments determined in accordance with Section 4 of this Plan to be paid to an Eligible Executive who is entitled to receive such severance benefits under this Plan.  Under no circumstances shall and Eligible Executive be entitled to any benefits under this Plan if the Eligible Executive has already been provided with, or will be provided, benefits under a Change of Control Agreement between the Company and the Eligible Executive.
 

	
             
  	
            (k)
 	
            “Specified Employee” means any Company employee that the Company determines is a Specified Employee within the meaning of Section 409A of the Code.  The Company shall determine whether an employee is a Specified Employee by applying reasonable, objectively determinable identification procedures set forth in a resolution of the Board issued before December 31, 2007.
 

	
             
  	
            (l)
 	
            “Termination Date” means the date on which an Eligible Executive has a termination of employment from the Company.
 

	
            3.
 	
            Eligibility.
 

	
             
  	
            (a)
 	
            Eligible Executives.  Only Eligible Executives shall be eligible to receive benefits under this Plan.
 

	
             
  	
            (b)
 	
            Qualifying Termination.  The Company will pay severance benefits under Section 4 of this Plan on account of either: 
 

	
             
  	
            (i)
 	
            involuntary termination of an Eligible Executive’s employment by the Company, or 
 

	
             
  	
            (ii)
 	
            voluntary separation of an Eligible Executive as a result of a Constructive Termination. 
 

	
             
  	
            (c)
 	
            Non-Qualifying Termination.  Notwithstanding Section 3(b) of this Plan, nothing in this Plan shall be construed to require the Company to pay severance benefits to an Eligible Executive if the Eligible Executive terminates Employment with the Company as the result of:
 

	
             
  	
            (i)
 	
            voluntary separation (a separation, including retirement, initiated by the Eligible Executive), other than a voluntary separation pursuant to Section 3(b)(ii);
 

	
             
  	
            (ii)
 	
            retirement, whether early retirement, retirement at normal retirement age or retirement following normal retirement age;
 

	
             
  	
            (iii)
 	
            the Company having terminated such Eligible Executive’s employment for Cause; 
 

 

3

 

 

	
             
  	
            (iv)
 	
            death; or
 

	
             
  	
            (v)
 	
            Disability.
 

	
            4.
 	
            Amount and Payment of Benefits.
 

	
             
 	
            (a)
 	
            Severance Payment.  Unless otherwise provided herein, an Eligible Executive who is entitled to receive severance benefits under this Plan shall receive a Severance Payment in an amount equal to the sum of: 
 

	
             
  	
            (i)
 	
            one times the Eligible Executive’s annual base salary as of the Eligible Executive’s Termination Date;
 

	
             
  	
            (ii)
 	
            the average annual bonus or incentive paid to the Eligible Executive under the Short-Term Incentive Plan over the three year period (or such shorter period of time as the Eligible Executive was eligible for that payment under the Short-Term Incentive Plan)  immediately  preceding the year of the Eligible Executive’s Termination Date;
 

	
             
  	
            (iii)
 	
            an amount equal to the premiums that the Eligible Executive would pay in order to secure COBRA continuation coverage under the Company’s medical plan for one year following termination of employment; and
 

	
             
  	
            (iv)
 	
            the additional federal, state, and local income and other taxes (other than taxes under Section 409A of the Code) that will result from the payment of the amount listed in subsection (a)(iii) of this Section 4.
 

	
             
 	
            (b)
 	
            Method of Payment.  Any Severance Payment made under this Plan shall be paid in a single lump-sum cash payment, less all applicable withholding taxes, thirty (30) days following the Eligible Executive’s Termination Date or as soon as administratively practicable thereafter.
 

Notwithstanding the foregoing, if the Eligible Executive is a Specified Employee when his or her employment with the Company is terminated, the Severance Payment shall be paid on the first day of the seventh month following the Eligible Executive’s termination of employment or, if earlier, the date the Eligible Executive dies following such termination of employment.  Notwithstanding the foregoing, if the Company determines that the Eligible Executive’s termination constitutes an involuntary separation from service under Section 409A of the Code, the portion of the sum of the Severance Payment described in subsection (a) of this Section 4 shall, when combined with any other lump-sum payments previously paid to Eligible Executive as a result of such involuntary separation, be paid 30 days following the Eligible Executive’s Termination Date, or as soon as administratively
practicable thereafter, to the extent it does not exceed the Applicable Amount.

 

4

 

 

	
             
 	
            (c)
 	
            Equity Award Vesting.  An Eligible Executive shall vest in any and all non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, performance shares, performance units, and restricted stock units (collectively “Equity Awards”) previously granted to the Eligible Executive by the Company which are outstanding on the Eligible Executive’s Termination Date in accordance with the terms of the plan(s) under which such Equity Awards were granted. 
 

	
             
 	
            (d)
 	
            Long Term Cash Plans.  An Eligible Executive shall be entitled to receive a  Payment equal to the pro-rata portion (determined as of the Termination Date) of the  payment otherwise payable under the terms of the Company’s Long-Term Incentive Plan to that Eligible Executive.  Such  Payment will be paid at the same time that the payment would have been paid under the Company’s Long-Term Incentive Plan had the Eligible Executive continued employment through end of the performance period during which the Termination Date occurred.
 

	
             
 	
            (e)
 	
            Benefits Continuation.  The Company (at its expense) shall, for a period of twelve months following the Eligible Executive’s Termination Date:
 

	
             
  	
            (i)
 	
            Reimburse the Eligible Executive for the reasonable costs of outplacement services, reasonable job hunting expenses, travel costs, and financial counseling costs associated with employment transition not to exceed $40,000.  All reimbursements shall be made as soon as practicable after submission of appropriate expense reports but in no event later than the end of the Eligible Executive’s third taxable year following the year in which the Eligible Executive terminates employment with the Company; and
 

	
             
  	
            (ii)
 	
            Allow the Eligible Executive to participate in the welfare plans the Company generally makes available to its key employees on substantially the same terms as an actively employed key employee, except that Eligible Executive may not continue to participate in the Company’s Short-Term Disability and Long-Term Disability Plans.
 

	
            5.
 	
            Non-Disclosure of Confidential Information.  
 

The Eligible Executive expressly recognizes and acknowledges that during the Eligible Executive’s employment with the Company, the Eligible Executive became entrusted with, had access to, or gained possession of confidential and proprietary information, data, documents, records, materials, and other trade secrets and/or other proprietary business information of the Company that is not readily available to competitors, outside third parties and/or the public, including without limitation, information about (i) current or prospective customers and/or suppliers, (ii) employees, research, goodwill, production, and prices, (iii) business methods, processes, practices or procedures; (iv) computer software and technology development, and (v) business strategy, including acquisition, merger and/or divestiture strategies, (collectively or with respect to any of the
foregoing, the “Confidential Information”).  The Eligible Executive agrees, by acceptance of the benefits under this Plan, to protect and maintain as confidential all Confidential Information concerning the business 

 

5

 

 

activities of the Company which were acquired in connection with or as a result of the performance of service for the Company for a period of twelve months from the Termination Date.

	
            6.
 	
            Non-Compete.
 

For a period of 12 months following termination of the Eligible Executive’s employment hereunder, the Eligible Executive shall not engage, or attempt to engage, on his or her own behalf or on behalf of a third party in any “Competitive Activity”.  The term “Competitive Activity” shall mean participation by the Eligible Executive, without written consent of the Company, in the part time or full time management or consulting of or for any business operation of any enterprise if such operation engages in the design, manufacture, marketing or retail of furniture.

	
            7.
 	
            Administration/Amendment/Termination.
 

	
             
  	
            (a)
 	
            Administrator.  The Administrator has the sole discretionary authority to construe and interpret the Plan and to make any and all determinations related to administration of the Plan, including all questions of eligibility for participation and benefits, to the maximum extent permitted by law.  The decisions, actions and interpretations of the Administrator are final and binding on all parties.
 

	
             
  	
            (b)
 	
            Amendment/Termination.  The Company reserves the right to amend or terminate this Plan, in whole or in part, at any time.  No such amendment may impair the rights of an Eligible Employee who has terminated employment pursuant to Section 3(b) unless such amendment is agreed to in a writing signed by the Eligible Executive and the Company.
 

	
            8.
 	
            Claims for Benefits.
 

In the event an Eligible Executive disputes or otherwise disagrees with the Company’s determination of the severance benefits payable to him or her and desires to make a claim (a “claimant”) with respect to any of the benefits provided hereunder, the claimant shall so notify, in writing, the Administrator by actual receipt or registered mail (addressed to the “Human Resources Committee, Furniture Brands International, Inc., 101 South Hanley Road, 19th Floor, St. Louis, MO 63105”) and shall submit evidence of events constituting a termination of employment with the Company.  Any claim with respect to any of the benefits provided under this Plan shall be made in writing within 180 days of the later of his/her becoming aware of the event which the claimant asserts entitles him or her to severance benefits or the Company notifying him or her of its determination of
the severance benefits payable to him or her under this Plan as a result of the occurrence of that event.  Failure by the claimant to submit his/her claim within such 180-day period shall bar the claimant from disputing the Company’s notification to him or her of its determination of the severance benefits payable to him or her under this Plan as a result of the occurrence of that event.

 

6

 

 

Upon receipt of a claim, the Administrator shall advise the claimant that a reply will be forthcoming within a reasonable period of time, but ordinarily not later than ninety (90) days, and shall, in fact, deliver such reply within such period.  However, the Administrator may extend the reply period for an additional ninety days for reasonable cause.  If the reply period will be extended, the Administrator shall advise the claimant in writing during the initial 90-day period indicating the special circumstances requiring an extension and the date by which the Administrator expects to render the benefit determination. The Administrator will inform the claimant in writing of his or her determination and the reasons therefor in terms calculated to be understood by the claimant.  The notice shall set forth the specific reasons for the denial, make specific reference to the pertinent Plan
provisions on which the denial is based, and describe any additional material or information necessary for the claimant to perfect the claim and explain why such material or such information is necessary.  Such notice shall, in addition, inform the claimant what procedure the claimant should follow to take advantage of the review procedures set forth below in the event the claimant desires to contest the denial of the claim.

The claimant or his/her duly authorized representative may appeal the denial of the claim to the Administrator at any time within 60 days after the receipt by the claimant of written notice from the Administrator of the denial of the claim.  In connection therewith, the claimant or his/her duly authorized representative may request a review of the denied claim, may review pertinent documents, and may submit issues and comments in writing.  Upon receipt of a request for review of a denied claim, the Administrator shall make a decision with respect thereto and, not later than 60 days after receipt of a request for review, shall furnish the claimant with a decision on the review in writing, including the specific reasons for the decision written in a manner reasonably calculated to be understandable by the claimant or the claimant’s attorney or accountant, as well as specific reference
to the pertinent provisions of this Plan upon which the decision is based.  If special circumstances require that the 60-day time period be extended, the Administrator will so notify the claimant within the initial 60-day period indicating the special circumstances requiring an extension and the date by which the Administrator expects to render its decision on review, which will be as soon as possible but not later than 120 days after receipt of the request for review.  In reaching its decision, the Administrator shall have the discretionary authority in good faith to determine on behalf of the Company all questions arising under this Plan.

	
            9.
 	
            Miscellaneous Provisions.
 

	
             
 	
            (a)
 	
            Release.  In consideration of the covenants under this Plan and as a condition precedent to receiving any payments under this Plan, an Eligible Executive shall execute a release of all claims in such form as requested by the Company.
 

	
             
 	
            (b)
 	
            Waiver.  The failure of the Company to enforce at any time any of the provisions of this Plan, or to require at any time performance of any of the provisions of this Plan, shall in no way be construed to be a waiver of these provisions, nor in any way to affect the validity of this Plan or any part thereof, or the right of the Company thereafter to enforce every provision.
 

 

7

 

 

	
             
 	
            (c)
 	
            Benefits Not Transferable.  Except as may be required by law, no benefit which shall be payable under this Plan to any Eligible Executive shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to alienate, sell, transfer, assign, pledge, encumber or charge all or any part of the benefit shall be void; provided, however, in the event of the death of a terminated Eligible Executive prior to the end of the period over which such Eligible Executive is entitled to receive severance benefits under this Plan, the severance benefits payable hereunder shall be paid to the estate of such Eligible Executive or to the person who acquired the rights to such benefits by bequest or inheritance.  Except as may be provided by law, no
benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any Eligible Executive, nor shall it be subject to attachment or legal process for, or against, the Eligible Executive and the same shall not be recognized under this Plan.
 

	
             
 	
            (d)
 	
            Successors of the Company.  The rights and obligations of the Company under the Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company.
 

	
             
 	
            (e)
 	
            No Contract of Employment.  The definitions and criteria set forth herein are solely for the purpose of defining Plan eligibility.  No legal rights to employment are created or implied by this Plan, nor are any conditions or restrictions hereby placed on termination of employment.  Unless the employee has a written employment agreement binding on the Company which provides otherwise, employment with the Company is employment-at-will.  As such, termination of employment may be initiated by the Eligible Executive or by the Company at any time for any reason which is not unlawful, with or without Cause.
 

	
             
 	
            (f)
 	
            Governing Law.  To the extent not pre-empted by federal law, this Plan shall be construed, administered and governed in accordance with and governed by the laws of the State of Missouri, without regard for any conflict of law principles.  Any action concerning this Plan shall be brought in a court of competent jurisdiction in Saint Louis County, Missouri and each party consents to the venue and jurisdiction of such courts.
 

	
             
 	
            (g)
 	
            Entire Plan.  This Plan constitutes the Company’s entire Executive Severance Plan for the Eligible Executive and, except as provided in Section 9(h), supersedes any and all previous representations, understandings and plans with respect to general severance for the Eligible Executives, and any such representations, understandings and plans with respect to officer severance are hereby canceled and terminated in all respects. 
 

	
             
 	
            (h)
 	
            Severability and Interpretation. In the event of a conflict between the terms of this Plan and any of the definitions or provisions in the Company’s Change in Control Agreement, the terms of the Change in Control Agreement shall prevail.  Whenever possible, each provision of this Plan and any portion hereof shall be interpreted in 
 

 

8

 

 

such a manner as to be effective and valid under applicable law, rules and regulations.  If any covenant or other provision of this Plan (or portion thereof) shall be held to be invalid, illegal, or incapable of being enforced, by reason of any rule of law, rule, regulation, administrative order, judicial decision or public policy, all other conditions and provisions of this Plan shall, nevertheless, remain in full force and effect, and no covenant or provision shall be deemed dependent upon any other covenant or provision (or portion) unless so expressed herein.  The parties hereto desire and consent that the court or other body making such determination shall, to the extent necessary to avoid any unenforceability, so reform such covenant or other provision or portions of this Plan to the minimum extent necessary so as to render the same enforceable in accordance with the intent herein expressed.

	
             
 	
            (i)
 	
            No Mitigation Required.  The Eligible Executive shall not be required to mitigate the amount provided for in Section 4 hereof by seeking other employment or otherwise, nor shall the amount of any payment provided for in Section 4 hereof be reduced by any compensation earned by the Eligible Executive as the result of employment by another employer after the date of termination, or otherwise.
 

	
             
 	
            (j)
 	
            Validity.  In the event any provision of the Plan is held invalid, void or unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other provisions of the Plan.
 

	
             
 	
            (k)
 	
            Captions and Titles. Captions and titles have been used in the Plan only for convenience, and in no way define, limit or describe the meaning of the Plan or any part thereof.
 

	
             
 	
            (l)
 	
            Section 409A Savings Clause. This Plan is intended to comply with the provisions of 409A of the Code.  If any compensation or benefits provided by this Plan may result in the application of Section 409A of the Code, the Company shall, in consultation with the Eligible Executive, modify the Plan in the least restrictive manner necessary in order to exclude such compensation from the definition of “deferred compensation” within the meaning of such Section 409A of the Code or in order to comply with the provisions of Section 409A of the Code, other applicable provision(s) of the Code and/or any rules, regulations or other regulatory guidance issued under such statutory provisions and without any diminution in the value of the payments to the Eligible Executive.
 

FURNITURE BRANDS INTERNATIONAL, INC.

 

 

By:_____________________________

Title:___________________________

 

 

	
             
 	
            Date: ___________________, 2007
 	
             
 

 

9EX-10.2 FGBC BANCSHARES, INC 2007 EQUITY PLAN

 

Exhibit 10.2

FGBC BANCSHARES, INC.

2007 EQUITY PLAN

     THIS PLAN is made this 11th day of April, 2007, by FGBC Bancshares, Inc., a Georgia
corporation (the “Company”).

ARTICLE I.

PURPOSE AND EFFECTIVE DATE

1.1. Purpose. The purpose of the Plan is to provide financial incentives for selected Employees,
Consultants/Advisors and Non-Employee Directors, thereby promoting the long-term growth and
financial success of the Company by (1) attracting and retaining Employees, Consultants/Advisors
and Non-Employee Directors of outstanding ability, (2) strengthening the Company’s capability to
develop, maintain, and direct a competent management team, (3) providing an effective means for
selected Employees, Consultant/Advisors and Non-Employee Directors to acquire and maintain
ownership of Company Stock, (4) motivating Employees to achieve long-range Performance Goals and
objectives, and (5) providing incentive compensation opportunities competitive with peer financial
institution holding companies.

1.2. Effective Date and Expiration of Plan. The Plan will be effective upon its adoption by the
Board and approval by affirmative vote of the Stockholders under applicable rules and procedures,
including those prescribed under Section 162(m) and 422 of the Code. Unless earlier terminated by
the Board pursuant to Section 12.2, the Plan shall terminate on the tenth anniversary of its
Effective Date. No Award shall be made pursuant to the Plan after its termination date, but Awards
made prior to the termination date may extend beyond that date. Notwithstanding the foregoing, no
Incentive Stock Options may be granted more than ten years after the earlier of (a) the adoption of
this Plan by the Board or (b) the Effective Date.

ARTICLE II.

DEFINITIONS

     The following words and phrases, as used in the Plan, shall have the meanings set forth in
this section. When applying these definitions and any other word, term or phrase used in this
Plan, the form of any word, term or phrase will include any and all of its other forms.

2.1. Award means, individually or collectively, any Option, Stock Appreciation Right (SAR),
Restricted Stock, Restricted Performance Stock, unrestricted Company Stock or Performance Unit
Award.

2.2. Award Agreement means the written agreement between the Company and each Participant that
describes the terms and conditions of each Award. If there is a conflict between the terms of the
Plan and the Award Agreement, the terms of the Plan will govern.

2.3. Board means the Board of Directors of the Company.

 

 

2.4. Cause, with respect to any Participant, means: (a) Gross negligence or gross neglect of
duties; or (b) Commission of a felony or of a gross misdemeanor involving moral turpitude in
connection with the Participant’s employment or service, as the case may be, with the Company or
any of its Subsidiaries; or (c) Fraud, disloyalty, dishonesty or willful violation of any law or
significant Company policy committed in connection with the Participant’s employment or provision
of services, as the case may be; or (d) Issuance of an order for removal of the Participant by the
Company’s banks regulators. Any determination of “Cause” under this Plan shall be made by the
Committee in its sole discretion.

2.5. Company means FGBC Bancshares, Inc., a Georgia corporation.

2.6. Company Director means a non-employee member of the Board of Directors of the Company.

2.7. Company Stock means the Company’s common shares, without par value per share.

2.8. Consultant/Advisor means any consultant or advisor who renders bona fide services to the
Company and/or one or more of the Subsidiaries and who is neither an Employee nor a director of the
Company or any Subsidiary.

2.9. Code means the Internal Revenue Code of 1986, as amended or superseded after the Effective
Date, and any applicable rulings or regulations issued thereunder.

2.10. Committee means the Compensation Committee of the Board or a subcommittee thereof.

2.11. Effective Date means the date on which the Plan is approved by the Shareholders of the
Company, as provided in Section 1.2.

2.12. Employee means any person who, on any applicable date, is a common law employee of the
Company or any Subsidiary. A worker who is classified as other than a common law employee but who
is subsequently reclassified as a common law employee of the Company or any Subsidiary for any
reason and on any basis will be treated as a common law employee only from the date that
reclassification occurs and will not retroactively be reclassified as an Employee for any purpose
of this Plan.

2.13. Early Retirement means any person that is at least 55 years old and has at least 30 years of
service with the Company.

2.14. Exchange Act means the Securities Exchange Act of 1934, as amended.

2.15. Exercise Price means the amount, if any, that a Participant must pay to exercise an Award
(other than an Option).

2.16. Fair Market Value means, as of any specified date, an amount equal to the reported closing
price of a share of Company Stock on an established stock exchange or quotation system on the
specified date or, if no shares of Company Stock have been traded on such date, the closing price
of a share of Company Stock on an established stock exchange or quotation system as reported on the
first day prior thereto on which shares of Company Stock were so traded. If

2

 

the preceding sentence does not apply, Fair Market Value shall be determined in good faith by the
Committee using other reasonable means.

2.17. Fiscal Year means the fiscal year of the Company, which is the 52- or 53-week period ending
on December 31.

2.18. Incentive Stock Option means an option within the meaning of Section 422 of the Code.

2.19. Non-Employee Director means either a Company Director or a Subsidiary Director.

2.20. Nonqualified Stock Option means an option granted under the Plan other than an Incentive
Stock Option.

2.21. Normal Retirement means any person who is at least 65 years old.

2.22. Option means either a Nonqualified Stock Option or an Incentive Stock Option to purchase
Company Stock.

2.23. Option Price means the price at which Company Stock may be purchased under an Option.

2.24. Participant means an Employee, a Consultant/Advisor or a Non-Employee Director to whom an
Award has been made under the Plan.

2.25. Performance Goals means goals established by the Committee pursuant to Section 4.5.

2.26. Performance Period means a period of time over which performance is measured.

2.27. Performance Unit means the unit of measure determined under Article IX by which is expressed
the value of a Performance Unit Award.

2.28. Performance Unit Award means an Award granted under Article IX.

2.29. Personal Representative means the person or persons who, upon the death, Disability, or
incompetency of a Participant, shall have acquired, by will or by the laws of descent and
distribution or by other legal proceedings, the right to exercise an Option or SAR or the right to
any Restricted Stock Award or Performance Unit Award theretofore granted or made to such
Participant.

2.30. Plan means the FGBC Bancshares, Inc. 2007 Equity Plan.

2.31. Predecessor Plan means the Company’s 2004 Stock Option Plan.

2.32. Restricted Performance Stock means Company Stock subject to Performance Goals.

2.33. Restricted Stock means Company Stock subject to the terms and conditions provided in Article
VI and including Restricted Performance Stock.

2.34. Restricted Stock Award means an Award granted under Article VI.

3

 

2.35. Restriction Period means a period of time determined under Section 6.2 during which
Restricted Stock is subject to the terms and conditions provided in Section 6.3.

2.36. Retirement means any normal or early retirement by a Participant pursuant to the terms of any
pension plan or policy of the Company or any Subsidiary that is applicable to such Participant at
the time of the Participant’s Termination.

2.37. SAR means a stock appreciation right granted under Section 5.7.

2.38. Shareholders mean the shareholders of the Company.

2.39. Subsidiary means a corporation or other entity the majority of the voting stock of which is
owned directly or indirectly by the Company.

2.40. Subsidiary Director means a non-employee member of the board of directors of a Subsidiary who
is not also a Company Director.

2.41. Termination means a “separation from service” as defined under Section 409A of the Code.

ARTICLE III.

ADMINISTRATION

3.1. Committee to Administer. The Plan shall be administered by the Committee, in accordance with
its Charter, as adopted from time to time by the Board; provided, however, that the Board has the
authority to grant Awards to Company Directors. The Board may reserve to itself any or all
authority and responsibility of the Committee under the Plan or may act as administrator of the
Plan for any and all purposes. To the extend that the Board has reserved any authority or
responsibility during any time that the Board is acting as administrator of the Plan, it shall have
all the powers of the Committee hereunder, and reference herein to the Committee (other than in
this Section 3.1) shall include the Board. To the extent any action of the Board under the Plan
conflicts with actions taken by the Committee, the actions of the Board shall control.

3.2. Powers of Committee.

	(a)	 	The Committee and the Board shall have full power and authority to interpret and administer
the Plan and to establish and amend rules and regulations for its administration. Any action
or decision by the Board or the Committee shall be final, binding and conclusive with respect
to the interpretation of the Plan and any Award made under it.

	(b)	 	Subject to the provisions of the Plan, the Committee or the Board, as the case may be, shall
have authority, in its discretion, to determine those Employees, Consultants/Advisors and
Non-Employee Directors who shall receive an Award, the time or times when such Award shall be
made, the vesting schedule, if any, for the Award and the type of Award to be granted, the
number of shares to be subject to each Option and

4

 

	 	 	Restricted Stock Award, the value of each Performance Unit and all other terms and
conditions of any Award.

	 
	(c)	 	The Committee or the Board, as the case may be, shall determine and set forth in an Award
Agreement the terms of each Award, including such terms, restrictions, and provisions as shall
be necessary to cause certain Options to qualify as Incentive Stock Options. The Committee or
the Board, as the case may be, may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any Award Agreement, in such manner and to the extent the
Committee shall determine in order to carry out the purposes of the Plan. The Committee or
the Board, as the case may be, may, in its discretion, accelerate (i) the date on which any
Option or SAR may be exercised, (ii) the date of termination of the restrictions applicable to
a Restricted Stock Award, or (iii) the end of a Performance Period under a Performance Unit
Award, if the Committee determines that to do so will be in the best interests of the Company
and the Participants in the Plan.

ARTICLE IV.

AWARDS

4.1. Awards. Awards under the Plan shall consist of Incentive Stock Options, Nonqualified Stock
Options, SARs, Restricted Stock, Restricted Performance Stock, unrestricted Company Stock and
Performance Units. All Awards shall be subject to the terms and conditions of the Plan and to such
other terms and conditions consistent with the Plan as the Committee deems appropriate. Awards
under a particular section of the Plan need not be uniform and Awards under two or more sections
may be combined in one Award Agreement. Any combination of Awards may be granted at one time and
on more than one occasion to the same Employee, Consultant/Advisor or Non-Employee Director.

4.2. Eligibility for Awards. An Award may be made to any Employee or Consultant/Advisor selected
by the Committee. In making this selection and in determining the form and amount of the Award,
the Committee may give consideration to the functions and responsibilities of the respective
Employee and/or Consultant/Advisor, his or her present and potential contributions to the success
of the Company, the value of his or her services to the Company, and such other factors deemed
relevant by the Committee. Non-Employee Directors are eligible to receive Awards pursuant to
Article VII.

4.3. Shares Available Under the Plan.

	(a)	 	The Company Stock to be offered under the Plan pursuant to Options, SARs, Performance Unit
Awards, Restricted Performance Stock and Restricted Stock and unrestricted Company Stock
Awards must be (i) Company Stock previously issued and outstanding and reacquired by the
Company or (ii) authorized but unissued Company Stock not reserved for any other purpose.
Subject to adjustment under Section 12.2, the number of shares of Company Stock that may be
issued pursuant to Awards under the Plan (the “Section 4.3 Limit”) shall not exceed, in the
aggregate, 362,662 shares.

5

 

	(b)	 	No awards shall be granted under the Predecessor Plan on and after the date on which the Plan
is approved by the Shareholders.

4.4. Limitation on Awards. The maximum aggregate dollar value of, and the maximum number of shares
of Company Stock subject to, Restricted Stock and Performance Units awarded to any Employee or
Consultant/Advisor with respect to a Performance Period or Restriction Period may not exceed $1
million or [one million] shares of Company Stock for each Fiscal Year included in such Performance
Period or Restriction Period. The maximum number of shares for which Options or SARs may be
granted to any Participant in any one Fiscal Year shall not exceed one million.

4.5. General Performance Goals.

	(a)	 	Performance Goals relating to the payment or vesting of an Award that is intended to qualify
as “performance-based compensation” under Section 162(m) of the Code will be comprised of one
or more of the following performance criteria as the Committee may deem appropriate:

	 	(i)	 	Earnings per share (actual or targeted growth);

	 
	 	(ii)	 	Net income after capital costs;

	 
	 	(iii)	 	Net income (before or after taxes);

	 
	 	(iv)	 	Return measures (including, but not limited to, return on average assets,
risk-adjusted return on capital, or return on average equity);

	 
	 	(v)	 	Efficiency ratio;

	 
	 	(vi)	 	Full-time equivalency control;

	 
	 	(vii)	 	Noninterest expense

	 
	 	(viii)	 	Noninterest income compared to net interest income ratio;

	 
	 	(ix)	 	Expense targets;

	 
	 	(x)	 	Operating efficiency;

	 
	 	(xi)	 	EVA®;

	 
	 	(xii)	 	Credit quality measures;

	 
	 	(xiii)	 	Customer satisfaction measures;

	 
	 	(xiv)	 	Loan growth;

	 
	 	(xv)	 	Deposit growth;

6

 

	 	(xvi)	 	Net interest margin;

	 
	 	(xvii)	 	Fee income; and

	 
	 	(xviii)	 	Operating expense.

	(b)	 	For any Awards not intended to qualify as “performance-based compensation” under Section
162(m) of the Code, the Committee may establish Performance Goals based on the performance
criteria listed in Section 4.5(a) or other performance criteria as it deems appropriate.

	 
	(c)	 	Any of the performance criteria listed in Section 4.5(a) may be applied solely with reference
to the Company and/or any Subsidiary or relatively between the Company and/or any Subsidiary
and one or more unrelated entities. In addition, different performance criteria may be
applied to individual Participants or to groups of Participants and, as specified by the
Committee, may be based on results achieved (i) separately by the Company or any Subsidiary,
(ii) any combination of the Company and the Subsidiaries or (iii) any combination of business
units or divisions of the Company and the Subsidiaries.

	 
	(d)	 	With respect to each Performance Period, the Committee will establish the Performance Goals
in writing no later than the earlier of (i) 90 days after the beginning of the Performance
Period or (ii) expiration of 25 percent of the Performance Period.

	 
	(e)	 	Except as otherwise provided in the Plan or the Award Agreement, as of the end of each
Performance Period, the Committee will certify in writing the extent to which a Participant
has or has not met the Participant’s Performance Goal. To the extent permitted under Section
162(m) of the Code, if applicable, the Committee may disregard or offset the effect of any
special charges or cumulative effect of a change in accounting in determining the attainment
of Performance Goals.

	 
	(f)	 	To the extent permitted under Section 162(m) of the Code, if applicable, the Committee shall
make (i) appropriate adjustments to performance criteria to reflect the effect on any
performance criteria of any stock dividend or stock split affecting Company Stock,
recapitalization, merger, consolidation, combination, spin-off, distribution of assets to
Shareholders, exchange of shares or similar corporate change and (ii) similar adjustments to
any portion of performance criteria that is not based on Company Stock but which is affected
by an event having an effect similar to those just described.

ARTICLE V.

STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

5.1. Award of Stock Options. The Committee may, from time to time, and on such terms and
conditions as the Committee may prescribe, award (a) Incentive Stock Options, subject to Section
5.5, to any eligible Employee of the Company or any parent or subsidiary corporation (as permitted
under Sections 422 and 424 of the Code); and (b) Nonqualified Stock Options to any Employee,
Consultant/Advisor or Non-Employee Director (as permitted in Article VII).

7

 

5.2. Period of Option.

	(a)	 	An Option granted under the Plan shall be exercisable only in accordance with the vesting
schedule approved by the Committee. The Committee may in its discretion prescribe additional
conditions, restrictions or terms on the vesting of an Option, including the full or partial
attainment of Performance Goals pursuant to Section 4.5. After the Option vests, the Option
may be exercised at any time during the term of the Option, in whole or in installments, as
specified in the related Award Agreement. Subject to Article X and except as provided in
Section 5.5, the duration of each Option shall not be more than ten years from the date of
grant.

	 
	(b)	 	Except as provided in Article X, a Participant may not exercise an Option unless such
Participant is then, and continually (except for sick leave, military service, or other
approved leave of absence) after the grant of the Option has been, an Employee,
Consultant/Advisor, or Non-Employee Director.

5.3. Award Agreement. Each Option shall be evidenced by an Award Agreement. The Award Agreement
shall specify whether the Option is intended to be an Incentive Stock Option or a Nonqualified
Stock Option.

5.4. Option Price, Exercise and Payment.

	(a)	 	Except as provided in Section 5.5, the Option Price of Company Stock under each Option shall
be determined by the Committee but shall be a price not less than 100 percent of the Fair
Market Value of Company Stock at the date such Option is granted.

	 
	(b)	 	Subject to Section 12.2, the Committee may not (i) amend an Option to reduce its Option
Price, (ii) cancel an Option and regrant an Option with a lower Option Price than the original
Option Price of the cancelled Option, or (iii) take any other action (whether in the form of
an amendment, cancellation or replacement grant) that has the effect of “repricing” an Option,
as defined under NASDAQ rules or the rules of the exchange or quotation system on which the
Company Stock is then traded.

	 
	(c)	 	Vested Options may be exercised from time to time by giving written notice to the Chief
Financial Officer or Secretary, Compensation Committee of the Company, or his or her designee,
specifying the number of shares to be purchased. The notice of exercise shall be accompanied
by payment in full of the Option Price in cash or the Option Price may be paid in whole or in
part through the transfer to the Company of shares of Company Stock in accordance with
procedures established by the Committee from time to time. In addition, in accordance with
the rules and procedures established by the Committee for this purpose, an Option may also be
exercised through a cashless exercise procedure involving a broker or dealer, that affords
Participants the opportunity to sell immediately some or all of the shares underlying the
exercised portion of the Option in order to generate sufficient cash to pay the Option Price
and/or to satisfy withholding tax obligations related to the Option.

	 
	(d)	 	In the event such Option Price is paid in whole or in part, with shares of Company Stock, the
portion of the Option Price so paid shall be equal to the value, as of the date of

8

 

	   	 	exercise of the Option, of such shares. The value of such shares shall be equal to the
number of such shares multiplied by the Fair Market Value of such shares on the trading day
coincident with the date of exercise of such Option (or the immediately preceding trading
day if the date of exercise is not a trading day). The Company shall not issue or transfer
Company Stock upon exercise of an Option until the Option Price is fully paid.

5.5. Limitations on Incentive Stock Options. Each provision of the Plan and each Award Agreement
relating to an Incentive Stock Option shall be construed so that each Incentive Stock Option shall
be an incentive stock option as defined in Section 422 of the Code, and any provisions of the Award
Agreement thereof that cannot be so construed shall be disregarded. No Incentive Stock Option may
be granted to any Employee who, at the time of such grant, owns stock possessing more than 10
percent of the total combined voting power of all classes of stock of the Company or of its parent
or subsidiary corporation (as determined under Sections 422 and 424 of the Code), unless (a) the
Option Price for such Incentive Stock Option is at least 110 percent of the Fair Market Value of a
share of Company Stock on the date the Incentive Stock Option is granted and (b) such Incentive
Stock Option may not be exercised more than five years after it is granted. Notwithstanding
anything in the Plan to the contrary, to the extent required by the Code, the vesting of Incentive
Stock Options granted under the Plan shall be subject to the $100,000 calendar year limit as set
forth in Section 422 of the Code; provided that, to the extent any such vesting exceeds such
$100,000 calendar year limit, the portion of such granted Option shall be deemed a Nonqualified
Stock Option in accordance with Section 422 of the Code.

5.6. Rights and Privileges. A Participant shall have no rights as a Shareholder with respect to
any shares of Company Stock covered by an Option until the issuance of such shares to the
Participant.

5.7. Award of SARs.

	(a)	 	The Committee may, from time to time, and on such terms and conditions as the Committee may
prescribe, award SARs to any Employee, Consultant/Advisor or Non-Employee Director (as
provided in Article VII).

	 
	(b)	 	A SAR shall represent the right to receive payment of an amount equal to (i) the amount by
which the Fair Market Value of one share of Company Stock on the trading day immediately
preceding the date of exercise of the SAR exceeds the Exercise Price multiplied by (ii) the
number of shares covered by the SAR. Payment of the amount to which a Participant is entitled
upon the exercise of a SAR shall be made in cash, Company Stock, or partly in cash and partly
in Company Stock at the discretion of the Committee. The shares shall be valued in the manner
specified in this Section 5.7(b).

	 
	(c)	 	SARs awarded under the Plan shall be evidenced by an Award Agreement between the Company and
the Participant.

	 
	(d)	 	The Committee may prescribe conditions and limitations on the exercise of any SAR. SARs may
be exercised only when the Fair Market Value of a share of Company Stock exceeds the Exercise
Price. Such value shall be determined in the manner specified in Section 5.7(b).

9

 

	(e)	 	A SAR shall be exercisable only by written notice to the Chief Financial Officer, Secretary
or Committee of the Company or his or her designee.

	 
	(f)	 	To the extent not previously exercised, all SARs shall automatically be exercised on the last
trading day prior to their expiration, so long as the Fair Market Value of a share of Company
Stock exceeds the Exercise Price, unless prior to such day the holder instructs the Chief
Financial Officer, Secretary or Committee otherwise in writing. Such value shall be
determined in the manner specified in Section 5.7(b).

	 
	(g)	 	Subject to Article X, each SAR shall expire on a date determined by the Committee at the time
of grant.

ARTICLE VI.

RESTRICTED STOCK

6.1. Award of Restricted Stock. The Committee may make a Restricted Stock Award to any Employee,
Consultant/Advisor or Non-Employee Director (as provided in Article VII), subject to this Article
VI and to such other terms and conditions as the Committee may prescribe.

6.2. Restriction Period. At the time of making a Restricted Stock Award, the Committee shall
establish the Restriction Period applicable to such Award. The Committee may establish different
Restriction Periods from time to time and each Restricted Stock Award may have a different
Restriction Period, in the discretion of the Committee. Restriction Periods, when established for
a Restricted Stock Award, shall not be changed except as permitted by Section 6.3.

6.3. Other Terms and Conditions. Company Stock, when awarded pursuant to a Restricted Stock Award,
will be represented in a book entry account in the name of the Participant who receives the
Restricted Stock Award. The Participant shall be entitled to receive dividends during the
Restriction Period and shall have the right to vote such Restricted Stock and shall have all other
Shareholder rights, with the exception that (i) unless otherwise provided by the Committee, if any
dividends are paid in shares of Company Stock, those shares will be subject to the same
restrictions as the shares of Restricted Stock with respect to which they were issued, (ii) the
Participant will not be entitled to delivery of the stock certificate during the Restriction
Period, (iii) the Company will retain custody of the Restricted Stock during the Restriction
Period, and (iv) a breach of a restriction or a breach of the terms and conditions established by
the Committee pursuant to the Restricted Stock Award will cause a forfeiture of the Restricted
Stock Award. The Committee may, prescribe additional restrictions, terms, or conditions upon or to
the Restricted Stock Award including the attainment of Performance Goals in accordance with Section
4.5.

6.4. Restricted Stock Award Agreement. Each Restricted Stock Award shall be evidenced by an Award
Agreement.

6.5. Payment for Restricted Stock. Restricted Stock Awards may be made by the Committee under
which the Participant shall not be required to make any payment for the Company Stock or, in the
alternative, under which the Participant, as a condition to the Restricted Stock Award, shall pay
all (or any lesser amount than all) of the Fair Market Value of

10

 

the Company Stock, determined as of the date the Restricted Stock Award is made. If the latter,
such purchase price shall be paid in cash as provided in the Award Agreement.

ARTICLE VII.

AWARDS FOR NON-EMPLOYEE DIRECTORS

7.1. Awards to Non-Employee Directors. The Board shall determine all Awards to Company Directors
and the Committee shall determine all Awards to Subsidiary Directors. The Board or the Committee,
as the case may be, retains the discretionary authority to make Awards to Non-Employee Directors
and any type of Award (other than Incentive Stock Options) may be granted to Non-Employee Directors
under this Plan. All such Awards shall be subject to the terms and conditions of the Plan and to
such other terms and conditions consistent with the Plan as the Board or the Committee, as the case
may be, deems appropriate.

7.2. No Right to Continuance as a Director. None of the actions of the Company in establishing the
Plan, the actions taken by the Company, the Board, or the Committee under the Plan, or the granting
of any Award under the Plan shall be deemed (i) to create any obligation on the part of the Board
or the board of directors of the applicable Subsidiary to nominate any Non-Employee Director for
reelection or (ii) to be evidence of any agreement or understanding, express or implied, that the
Non-Employee Director has a right to continue as a Non-Employee Director for any period of time or
at any particular rate of compensation.

ARTICLE VIII.

UNRESTRICTED COMPANY STOCK AWARDS FOR EMPLOYEES

AND/OR CONSULTANT/ADVISORS

8.1. The Committee may make awards of unrestricted Company Stock to Employees and/or
Consultants/Advisors on such terms and conditions as the Committee may prescribe.

ARTICLE IX.

AWARD OF PERFORMANCE UNITS

9.1. Award of Performance Units. The Committee may award Performance Units to any Employee and/or
Consultant/Advisor. Each Performance Unit shall represent the right of a Participant to receive an
amount equal to the value of the Performance Unit, determined in the manner established by the
Committee at the time of Award.

9.2. Performance Period. At the time of each Performance Unit Award, the Committee shall
establish, with respect to each such Award, a Performance Period during which performance shall be
measured. There may be more than one Performance Unit Award in existence at any one time, and
Performance Periods may differ.

9.3. Performance Measures. Performance Units shall be awarded to a Participant and earned
contingent upon the attainment of Performance Goals in accordance with Section 4.5.

9.4. Performance Unit Value. Each Performance Unit shall have a maximum dollar value established
by the Committee at the time of the Award. Performance Units earned will be determined by the
Committee in respect of a Performance Period in relation to the degree of

11

 

attainment of Performance Goals. The measure of a Performance Unit may, in the discretion of the
Committee, be equal to the Fair Market Value of one share of Company Stock.

9.5. Award Criteria. In determining the number of Performance Units to be granted to any
Participant, the Committee shall take into account the Participant’s responsibility level,
performance, potential, cash compensation level, other incentive awards, and such other
considerations as it deems appropriate.

9.6. Payment.

	(a)	 	Following the end of Performance Period, a Participant holding Performance Units will be
entitled to receive payment of an amount, not exceeding the maximum value of the Performance
Units, based on the achievement of the Performance Goals for such Performance Period, as
determined by the Committee.

	 
	(b)	 	Payment of Performance Units shall be made in cash, except that Performance Units which are
measured using Company Stock shall be paid in Company Stock. Payment shall be made in a lump
sum or in installments and shall be subject to such other terms and conditions as shall be
determined by the Committee.

9.7. Performance Unit Award Agreements. Each Performance Unit Award shall be evidenced by an Award
Agreement.

ARTICLE X.

GENERAL TERMINATION PROVISIONS

10.1. Termination of Employment. Subject to Article XI and unless otherwise specified in the
applicable Award Agreement, the following provisions will govern the treatment of a Participant’s
outstanding Awards following a Participant’s Termination.

	(a)	 	If the Participant’s Termination is due to death or Normal Retirement all of the
Participant’s outstanding Awards shall become fully vested and, if applicable, exercisable.
Upon the Participant’s Termination for Early Retirement, all of the Participant’s outstanding
Awards shall vest on a pro-rata basis as determined by the vesting schedule per each
Participant’s Award Agreement. Upon the Participant’s Termination for any other reason, any
Awards that are not vested and/or exercisable on the date of such Termination will immediately
terminate and be of no further force and effect.

	 
	(b)	 	If the Participant Terminates for any reason other than (i) death, (ii) discharge for Cause,
or (iii) or Normal Retirement, such Participant’s outstanding SARs or Options may be exercised
at any time within three months after such Termination, to the extent that the number of
shares covered by such Options or SARs are vested and exercisable at the date of such
Termination; except that an Option or SAR shall not be exercisable on any date beyond the
expiration date of such Option or SAR.

	 
	(c)	 	Upon a Termination for Cause, any Options or SARs held by the Participant (whether or not
then exercisable) shall expire and any rights thereunder shall terminate immediately.

12

 

	 	 	Any non-vested Restricted Stock Awards of such Participant shall immediately be forfeited
and any rights thereunder shall terminate.

	 
	(d)	 	Upon a Termination due to the Participant’s death, any SARs or Options that are then
exercisable may be exercised by the Participant’s Personal Representative at any time before
the earlier of (i) three months after the Participant’s death or (ii) the expiration date of
the Award.

	 
	(e)	 	Upon a Termination due to Normal Retirement, Early Retirement, or if the Participant is
terminated without Cause, any SARs or Options that are then exercisable may be exercised by
the Participant at any time before the earlier of (i) three months after the termination event
or (ii) the expiration date of the Award.

	 
	(f)	 	If a Participant who Terminates due to Retirement dies prior to exercising all of his or her
outstanding Options or SARs, then such Options or SARs may be exercised by the Participant’s
Personal Representative at any time before the earlier of (i) three months after the
Participant’s death or (ii) the expiration date of the Award.

	 
	(g)	 	Subject to Article XI, a Performance Unit Award shall terminate for all purposes if the
Participant Terminates at any time during the applicable Performance Period, except as may
otherwise be determined by the Committee. In the event that a Participant holding a
Performance Unit Terminates following the end of the applicable Performance Period but prior
to full payment according to the terms of the Performance Unit Award, the Performance Unit
Award shall terminate.

ARTICLE XI.

CHANGE IN CONTROL OF THE COMPANY

11.1. Contrary Provisions. Notwithstanding anything contained in the Plan to the contrary, the
provisions of this Article XI shall govern and supersede any inconsistent terms or provisions of
the Plan.

11.2. Definitions.

	(a)	 	Change in Control. For purposes of this Plan, Change in Control shall mean a Change in the
Actual Control of the Company, as described in Section 11.2(a)(i), a Change in Effective
Control, as described in Section 11.2(a)(ii), or a Change in the Ownership of the Company’s
Assets, as described in Section 11.2(a)(iii).

	 	(i)	 	Change in Actual Control shall mean the acquisition by any one person, or more
than one person acting as a group (as defined in Section (iv), below) of ownership of
stock of the Company that, together with stock held by such person or group,
constitutes more than 50 percent of the total fair market value or total voting power
of the stock of the Company. However, if any one person, or more than one person
acting as a group, is considered to own more than 50 percent of the total fair market
value or total voting power of the stock of the Company, the acquisition of additional
stock by the same person or persons is not considered to cause a change in the
ownership of the Company (or to cause a change in the

13

 

	 	 	 	effective control of the Company (within the meaning of Section 11.2(a)(ii)). An
increase in the percentage of stock owned by any one person, or persons acting as a
group, as a result of a transaction in which the Company acquires its stock in
exchange for property will be treated as an acquisition of stock for purposes of
this section.

	 
	 	(ii)	 	Change in Effective Control shall mean:

          (A) The acquisition by any one person, or more than one person acting as a group (as
defined in Section (iv), below), during any 12-month period of ownership of stock of the
Company possessing 35 percent or more of the total voting power of the stock of the Company;
or

          (B) The replacement of a majority of members of the Board during any 12-month period by
directors whose appointment or election is not endorsed by a majority of the members of the
Board prior to the date of the appointment or election in accordance with Treasury
Regulation § 1.409A-1(g)(5)(iv)(A)(2).

	 	 	Notwithstanding the foregoing, if any one person, or more than one person acting as a group,
is considered to effectively control the Company (within the meaning of this Section (ii)),
the acquisition of additional control of the Company by the same person or persons is not
considered to cause a Change in Control.

	 	(iii)	 	Change in the Ownership of the Company’s Assets shall mean the acquisition by
any one person, or more than one person acting as a group (as defined in Section (iv),
below), during any 12-month period of assets from the Company that have a total gross
fair market value equal to or more than 40 percent of the total gross fair market value
of all of the assets of the Company immediately prior to such acquisition or
acquisitions. Notwithstanding the foregoing, there is no change in control event under
this section when there is a transfer to an entity that is controlled by the
Shareholders immediately after the transfer.

	 
	 	(iv)	 	Persons acting as a group. For purposes of this Section 11.2(a), persons will
not be considered to be acting as a group solely because they purchase or own stock of
the same corporation at the same time, or as a result of the same public offering.
However, persons will be considered to be acting as a group if they are owners of a
corporation that enters into a merger, consolidation, purchase or acquisition of stock,
or similar business transaction with the corporation. If a person, including an
entity, owns stock in both corporations that enter into a merger, consolidation,
purchase or acquisition of stock, or similar transaction, such shareholder is
considered to be acting as a group with other shareholders in a corporation only with
respect to the ownership in that corporation prior to the transaction giving rise to
the change and not with respect to the ownership interest in the other corporation.

14

 

11.3. Effect of Change in Control on Certain Awards.

	(a)	 	Immediately prior to a Change in Control (or at such earlier time as the Committee may
determine in its absolute discretion) all or any part of the Awards theretofore granted
pursuant to this Plan shall become immediately exercisable in full (or in the case of
Restricted Stock, fully vested) and may thereafter be exercised at any time before the
effective time of consummation of the Change in Control. Any Award that has not been fully
exercised at or before the effective time of consummation of the Change in Control shall
terminate on such date, unless a provision has been made in writing in connection with such
transaction for the assumption of all Awards theretofore granted, or the substitution for such
Awards of similar awards with respect to the voting stock of a successor employer corporation,
or a parent or a subsidiary thereof, with appropriate adjustments as to the number and kind of
shares and prices, in which event the Awards theretofore granted shall continue in the manner
and under the terms so provided. In the case of Restricted Performance Stock and Performance
Units, the target payout opportunities under all outstanding Awards of Restricted Performance
Stock and Performance Units shall be deemed to have been fully earned based on targeted
performance being attained as of the effective date of the Change in Control. In addition,
the Board or its designee may, in its sole discretion, provide for a cash payment to be made
to each Participant for the outstanding Options, Restricted Stock, Restricted Performance
Stock, SARs or Performance Units upon the consummation of the Change in Control, determined on
the basis of the fair market value that would be received in such Change in Control by the
holders of the Company’s securities relating to such Awards. Notwithstanding the foregoing,
any Option intended to be an Incentive Stock Option under Section 422 of the Code shall be
adjusted in a manner to preserve such status.

	 
	(b)	 	Outstanding Options or SARs which vest in accordance with this Section 11.3 and which are
assumed by the surviving entity may be exercised by the Participant in accordance with Article
X.

11.4. Amendment or Termination. Except as provided in Section 12.2(c), this Article XI shall not
be amended or terminated at any time if any such amendment or termination would adversely affect
the rights of any Participant under the Plan.

ARTICLE XII.

MISCELLANEOUS PROVISIONS

12.1. Adjustments Upon Changes in Stock. In case of any reorganization, recapitalization,
reclassification, stock split, stock dividend, distribution, combination of shares, merger,
consolidation, rights offering, or any other changes in the corporate structure or shares of the
Company, appropriate adjustments shall be made by the Committee (or if the Company is not the
surviving corporation in any such transaction, the board of directors of the surviving corporation)
in the aggregate number and kind of shares subject to the Plan, and the number and kind of shares
and the Option Price per share subject to outstanding Options or which may be issued under
outstanding Restricted Stock Awards or pursuant to unrestricted Company Stock Awards. Appropriate
adjustments shall also be made by the Committee in the terms of any Awards under

15

 

the Plan, subject to Article XI, to reflect such changes and to modify any other terms of
outstanding Awards on an equitable basis. Any such adjustments made by the Committee pursuant to
this Section 12.1 shall be conclusive and binding for all purposes under the Plan.

12.2. Amendment, Suspension, and Termination of Plan.

	(a)	 	The Board may suspend or terminate the Plan or any portion thereof at any time, and may amend
the Plan from time to time in such respects as the Board may deem advisable in order that any
Awards thereunder shall conform to any change in applicable laws or regulations or in any
other respect the Board may deem to be in the best interests of the Company; provided,
however, that no such amendment shall, without approval, (i) except as provided in Section
12.1, increase the number of shares of Company Stock which may be issued under the Plan, (ii)
expand the types of awards available to Participants under the Plan, (iii) materially expand
the class of employees, consultants/advisors or directors eligible to participate in the Plan,
(iv) materially change the method of determining the Option Price of Options; (v) delete or
limit the provision in Section 5.4 prohibiting the repricing of Options; (vi) extend the
termination date of the Plan or (vii) be made to the extent that Shareholder approval is
required to satisfy applicable law, regulation or any securities exchange, market or other
quotation system on or through which the Company Stock is listed or traded. No such
amendment, suspension, or termination shall materially adversely alter or impair any
outstanding Options, SARs, shares of Restricted Stock, or Performance Units without the
consent of the Participant affected thereby.

	 
	(b)	 	The Committee may amend or modify any outstanding Options, SARs, Restricted Stock Awards, or
Performance Unit Awards in any manner to the extent that the Committee would have had the
authority under the Plan initially to award such Options, SARs, Restricted Stock Awards, or
Performance Unit Awards as so modified or amended, including without limitation, to change the
date or dates as of which such Options or SARs may be exercised, to remove the restrictions on
shares of Restricted Stock, or to modify the manner in which Performance Units are determined
and paid.

	 
	(c)	 	Notwithstanding the foregoing, the Plan and any Award Agreements may be amended without any
additional consideration to affected Participants to the extent necessary to comply with, or
avoid penalties under, Section 409A of the Code, even if those amendments reduce, restrict or
eliminate rights granted prior to such amendments.

12.3. Nonuniform Determinations. The Committee’s (or, if applicable, the Board’s) determinations
under the Plan, including without limitation, (i) the determination of the Employees,
Consultants/Advisors and Non-Employee Directors to receive Awards, (ii) the form, amount, and
timing of any Awards, (iii) the terms and provisions of any Awards and (iv) the Award Agreements
evidencing the same, need not be uniform and may be made by it selectively among Employees,
Consultants/Advisors and/or Non-Employee Directors who receive, or who are eligible to receive,
Awards under the Plan, whether or not such Employees, Consultants/Advisors and Non-Employee
Directors are similarly situated.

16

 

12.4. General Restriction. Each Award under the Plan shall be subject to the condition that, if at
any time the Committee shall determine that (i) the listing, registration, or qualification of the
shares of Company Stock subject or related thereto upon any securities exchange or under any state
or federal law, (ii) the consent or approval of any government or regulatory body, or (iii) an
agreement by the Participant with respect thereto, is necessary or desirable, then such Award shall
not become exercisable in whole or in part unless such listing, registration, qualification,
consent, approval, or agreement shall have been effected or obtained free of any conditions not
acceptable to the Committee.

12.5. No Right To Employment. None of the actions of the Company in establishing the Plan, the
actions taken by the Company, the Board or the Committee under the Plan, or the granting of any
Award under the Plan shall be deemed (i) to create any obligation on the part of the Company or any
Subsidiary to retain any person in the employ of, or continue the provision of services to, the
Company or any Subsidiary, or (ii) to be evidence of any agreement or understanding, express or
implied, that the person has a right to continue as an employee, consultant, or advisor for any
period of time or at any particular rate of compensation.

12.6. Governing Law. The provisions of the Plan shall take precedence over any conflicting
provision contained in an Award Agreement. All matters relating to the Plan or to Awards granted
hereunder shall be governed by and construed in accordance with the laws of the State of Georgia
without regard to the principles of conflict of laws.

12.7. Trust Arrangement. All benefits under the Plan represent an unsecured promise to pay by the
Company. The Plan shall be unfunded and the benefits hereunder shall be paid only from the general
assets of the Company resulting in the Participants having no greater rights than the Company’s
general creditors; provided, however, nothing herein shall prevent or prohibit the Company from
establishing a trust or other arrangement for the purpose of providing for the payment of the
benefits payable under the Plan.

12.8. Indemnification of Board and Committee. Indemnification shall be in accordance with the
Company’s articles of incorporation and bylaws as amended by the Shareholders from time to time.

12.9. No Impact on Benefits. Awards are not compensation for purposes of calculating a
Participant’s rights under any employee benefit plan that does not specifically require the
inclusion of Awards in calculating benefits.

12.10. Beneficiary Designation. Each Participant may name a beneficiary or beneficiaries to
receive or exercise any vested Award that is unpaid or unexercised at the Participant’s death.
Unless otherwise provided in the beneficiary designation, each designation will revoke all prior
designations made by the same Participant, must be made on a form prescribed by the Committee and
will be effective only when filed in writing with the Committee. If a Participant has not made an
effective beneficiary designation, the deceased Participant’s beneficiary will be the Participant’s
surviving spouse or, if none, the deceased Participant’s estate. The identity of a Participant’s
designated beneficiary will be based only on the information included in the latest beneficiary
designation form completed by the Participant and will not be inferred from any other evidence.

17

 

12.11. Tax Withholding. The Company shall have the power and the right to deduct or withhold, or
require a Participant to remit to the Company, the minimum statutory amount to satisfy federal,
state and local taxes required by law or regulation to be withheld with respect to any taxable
event arising as a result of the Plan. With respect to withholding required upon any taxable event
arising as a result of an Award granted hereunder, a Participant may elect, subject to the approval
of the Committee, to satisfy the withholding requirement, in whole or in part, by having the
Company withhold shares of Company Stock having a Fair Market Value on the date the tax is to be
determined equal to the minimum statutory total tax that could be imposed on the transaction. All
such elections shall be irrevocable, made in writing and signed by the Participant, and shall be
subject to any restrictions or limitations that the Committee, in its sole discretion, deems
appropriate.

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]