Document:

Form of  Series B Convertible Preferred Stock Certificate

 Exhibit 4.2 
 SERIES B MANDATORY CONVERTIBLE 7% NON-CUMULATIVE PERPETUAL 
 PREFERRED STOCK 
 WACCAMAW BANKSHARES, INC. 
 INCORPORATED UNDER THE LAWS OF THE STATE OF NORTH CAROLINA 
 This Certifies that ____________ is the owner of ________________
(            ) fully paid and non-assessable shares of the Series B Mandatory Convertible 7% Non-cumulative Perpetual Preferred Stock, no par value per share, hereinafter called the
Series B Preferred Stock, each of Waccamaw Bankshares, Inc., hereinafter called the Company, transferable only on the books of the Company by the holder hereof in person or by duly authorized attorney, upon the surrender of this certificate properly
endorsed. 
 This certificate and the shares represented hereby are issued and shall be held, subject to all of the provisions of the Articles of
Incorporation and Bylaws of the Company, as amended or to be amended hereafter (copies of which may be obtained by any shareholder, upon request and without charge, at the principal office of the Company), to all of which the holder by acceptance
hereof assents. 
 This certificate shall not be valid until signed by the Chairman and Secretary of Waccamaw Bankshares, Inc. 
 WITNESS, the facsimile seal of the Company and the signatures of its duly authorized officers. 
  

									
	Dated: 	 	 	 		 	 
		 		 		 	Chairman
		 	 	 		 	
		 	Secretary	 		 	

  

									
	Corporate Seal:	 		 		 	

 Number: __________ 

 The Company will, upon request, furnish any shareholder, without charge, information in writing as to the designations,
preferences, limitations, and relative rights of all classes of shares and any series thereof and the authority of the board of directors to determine the variations for future series. 
 KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN OR DESTROYED THE COMPANY WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE. 
 The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to
applicable laws or regulations. 
 TEN COM – as tenants in common 
 TEN ENT – as tenants by the entireties 
 JT TEN – as joint tenants with rights of survivorship and not as tenants in common 
 UNIF GIFT MIN ACT – custodian under Uniform Gift to Minors Act 
 For
value received, ________________ hereby sell, assign and transfer unto ____________________ (                    ) shares of the capital stock
represented by the within Certificate, and do hereby irrevocably constitute and appoint _______________ attorney to transfer the said stock on the books of the within named Company with full power of substitution in the premises. 
  

									
	Signature: 	 	 	 		 	Date: 	 	__________________________

 NOTICE: THE SIGNATURE ON THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THIS
CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATEVER. 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE NOT SAVINGS
ACCOUNTS, DEPOSITS, OR OTHER OBLIGATIONS OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. 
 THE
RIGHTS, PREFERENCES, PRIVILEGES AND RESTRICTIONS OF THE SERIES B PREFERRED STOCK ARE DESCRIBED MORE FULLY IN THE ARTICLES OF INCORPORATION OF THE COMPANY AND THE AMENDMENTS THERETO. THE FOLLOWING IS ONLY A SUMMARY OF THE RIGHTS, PRIVILEGES AND
RESTRICTIONS OF THE SERIES B PREFERRED STOCK. THE SHARES OF SERIES B PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE RANK SENIOR TO THE COMMON STOCK OF THE COMPANY WITH RESPECT TO LIQUIDATION RIGHTS. IN THE EVENT OF LIQUIDATION, DISSOLUTION OR
WINDING UP OF THE COMPANY, HOLDERS OF THE SERIES B PREFERRED STOCK SHALL BE ENTITLED TO RECEIVE A LIQUIDATION PREFERENCE OF $25.00 PER SHARE, SUBJECT TO ADJUSTMENT, FROM AVAILABLE FUNDS AFTER SATISFACTION OF ALL CLAIMS OF DEPOSITORS AND CREDITORS.
SHARES OF THE SERIES B PREFERRED STOCK DO NOT CARRY VOTING RIGHTS, UNLESS OTHERWISE REQUIRED BY LAW. IF HOLDERS OF THE COMPANY’S SERIES B PREFERRED STOCK ARE ENTITLED TO VOTING RIGHTS AS REQUIRED BY LAW, THE COMPANY MAY, IN ITS SOLE DISCRETION,
ELECT TO CONVERT THE OUTSTANDING SHARES OF PREFERRED STOCK INTO SHARES OF ITS COMMON STOCK, NO PAR VALUE PER SHARE, UPON NOTICE TO THE HOLDERS. EACH SHARE OF THE SERIES B PREFERRED STOCK IS CONVERTIBLE INTO SIX (6) SHARES OF THE COMPANY’S
COMMON STOCK AT ANY TIME AFTER ISSUE OF THE SERIES B PREFERRED STOCK. AFTER THREE YEARS FROM THE DATE HOLDERS ARE FIRST ISSUED A SHARE OR SHARES OF SERIES B PREFERRED STOCK, EACH SHARE OF THE SERIES B PREFERRED STOCK SHALL MANDATORILY CONVERT INTO
SIX (6) SHARES OF THE COMPANY’S COMMON STOCK WITHOUT ANY ACTION ON THE PART OF THE SHAREHOLDER OR THE COMPANY.Form of  Warrant Certifcate

 Exhibit 4.3 
  

			
	CUSIP # _______________	  	_______________ WARRANTS
	No. W _________________	  	

 Waccamaw Bankshares, Inc. 
 WARRANTS TO PURCHASE COMMON STOCK 
 VOID FOR ANY PURPOSE AFTER 5:00 PM, EASTERN
TIME, ON __________, 2014 
 This Certificate certifies that, for value received,
____________________________________________________________, or registered assigns, is the registered holder of the number of warrants (the “Warrants”) set forth above. Each Warrant entitles the registered holder thereof to receive from
Waccamaw Bankshares, Inc., a North Carolina corporation with its principal office at 110 North J. K. Powell Boulevard, Whiteville, North Carolina 28472 (the “Corporation”), on and after the issuance date one (1) fully paid and
nonassessable share of the common stock, no par value, of the Corporation (the “Common Stock”), at the purchase price of $5.00 (the “Purchase Price”) upon surrender of this Warrant Certificate, with the form of election to
purchase set forth on the reverse hereof properly completed and duly executed and payment of the Purchase Price at the principal office of the Transfer Agent, or its successors as Transfer Agent, as provided in the Warrant Agreement (the
“Warrant Agreement”), dated _________, 2009 by and between the Corporation and First-Citizens Bank & Trust Company (the “Transfer Agent”), a copy of which may be obtained from the Corporation, by a written request from
the registered holder hereof or which may be inspected by any registered holder or his or her agent at the principal office of the Corporation. Payment of the Purchase Price may be made at the option of the registered holder in cash, by certified or
official bank check payable to the order of the Corporation. 
 The Purchase Price and the number of shares of Common Stock purchasable upon
exercise of the Warrants set forth above are based on the Common Stock of the Corporation outstanding as of the issuance date of this Warrant Certificate and are subject to adjustment provided in Section 5 of the Warrant Agreement. 

Upon surrender of this Warrant Certificate and payment of the Purchase Price, the Corporation shall issue and cause to be delivered to the registered
holder of this Warrant Certificate a certificate for the number of shares of Common Stock issuable for the Warrants then being exercised. 
 No Warrant may be exercised after 5:00 P.M., Eastern Time, on __________, 2014 (the “Expiration Date”). If such date is not a Business Day as defined in the Warrant Agreement, the Expiration date shall mean 5:00 P.M., Eastern
Time, the next following Business Day. The Expiration Date may be accelerated as provided in the Warrant Agreement under certain specifically defined circumstances upon notice to the registered holder hereof. To the extent not exercised and
delivered to the Transfer Agent by the Expiration Date, the Warrants shall be null and void. 

 The further provisions of this Warrant Certificate are set forth on the reverse hereof, and the further
provisions of the Warrant Agreement shall for all purposes have the same effect as if set forth fully at this place. 
 This Warrant
Certificate is not valid unless countersigned by the Transfer Agent. 
 IN WITNESS WHEREOF, Waccamaw Bankshares, Inc. has caused this Warrant
Certificate to be duly executed under its corporate seal. 
  

									
	Countersigned:	 		 	
	First-Citizens Bank & Trust Company	 		 	Waccamaw Bankshares, Inc.
	as Transfer Agent	 		 	
					
	By:	 	 	 		 	By: 	 	 
	Authorized Signature	 		 		 	President
					
	Dated: 	 	 	 		 	By: 	 	 
		 		 		 		 	Secretary

 (SEAL) 

 Waccamaw Bankshares, Inc. 
 This Warrant Certificate and each Warrant represented hereby are issued pursuant to and are subject in all respects to the terms and conditions set forth
in the Warrant Agreement, which is incorporated herein by reference. Please refer to the Warrant Agreement for a description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Transfer Agent, the Corporation
and the registered holders of the Warrants. In the event the registered holders do not comply with the terms of the Warrant Agreement, the Warrants shall immediately become null and void. 
 The Warrant Agreement provides that upon the occurrence of certain events, the Purchase Price set forth on the face hereof may, under certain conditions,
be adjusted. If the Purchase Price is adjusted, the Warrant Agreement provides that the Purchase Price in effect immediately prior to such event shall be adjusted so that the registered holder of each Warrant may receive the number of shares of
Common Stock of the Corporation to which it would have been entitled upon such action if such registered holder had so exercised the Warrant immediately prior to the event. No fractional shares of Common Stock will be issued upon exercise of the
Warrant. If any fraction of a share of Common Stock would be issuable upon the exercise of the Warrants (or any specified portion thereof), the Corporation shall pay an amount in cash equal to the product of (a) such fraction and (b) the
fair market value of the Common Stock, as determined in good faith by the Board of Directors of the Corporation, on the Business Day prior to the date the Warrant is exercised. 
 Upon surrender of this Warrant Certificate and similar Warrant Certificates at the principal office of the Transfer Agent, by the registered holder
hereof in person or by an attorney duly authorized in writing, such Warrant Certificates may be transferred or exchanged in the manner and subject to the limitations provided in the Warrant Agreement, for another Warrant Certificate or Warrant
Certificates of like tenor, evidencing in the aggregate the number of Warrants evidenced by the Warrant Certificates so surrendered and registered in the name or names as requested by the then registered owner thereof or by an attorney duly
authorized in writing. In the case of the exercise of less than all the Warrants represented hereby, the registered holder shall be entitled to receive upon surrender of this Warrant Certificate another Warrant Certificate or Warrant Certificates
for the balance of the Warrants evidenced by this Warrant Certificate. 
 Prior to the exercise of any Warrant represented hereby, the
registered holder shall not be entitled to any rights of a stockholder of the Corporation, including, without limitation, the right to vote or to receive dividends or other distributions, and shall not be entitled to receive any notice of any
proceedings of the Corporation, except as provided in the Warrant Agreement. 
 The Corporation and the Transfer Agent shall treat the
registered holder as the absolute owner hereof and of each Warrant represented hereby for all purposes and shall not be affected by any notice to the contrary. 
 This Warrant Certificate shall be governed by and construed in accordance with the laws of the State of North Carolina.

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