Document:

Exhibit 10.2

 

THIRD AMENDMENT TO FOURTH
 AMENDED AND RESTATED CREDIT AGREEMENT

 

This Third Amendment to Fourth Amended and Restated Credit Agreement (the “Amendment”) is made as of June 23, 2011, by and among Inland Real Estate Corporation (the “Borrower”), KeyBank National Association, individually and as “Administrative Agent,” and the “Lenders” as shown on the signature pages hereof.

 

R E C I T A L S

 

A.            Borrower, Administrative Agent and the Lenders have entered into a Fourth Amended and Restated Credit Agreement dated as of June 24, 2010, as amended by a First Amendment thereto dated as of August 13, 2010 and a Second Amendment thereto dated as of March 11, 2011 (as it may be further amended from time to time, the “Credit Agreement”).  All capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Credit Agreement.

 

B.            The Borrower, Administrative Agent and the Lenders now desire to amend the Credit Agreement in order to extend the maturity thereof, modify certain aspects of the fees and applicable interest rates thereunder and amend certain of the covenants therein.

 

NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

AGREEMENTS

 

1.             The foregoing Recitals to this Amendment hereby are incorporated into and made part of this Amendment.

 

2.             This Amendment shall be effective from and after the date (the “Effective Date”) on which (i) this Amendment has been executed by Borrower and the Lenders and (ii) Borrower has paid to the Administrative Agent for the benefit of the Lenders a modification fee equal to one quarter of one percent (0.25%) of the then-current Aggregate Commitment.

 

3.             Article I, titled Definitions, of the Credit Agreement is hereby amended by deleting the existing versions of the following definitions and replacing them with the following:

 

“ABR Applicable Margin” means the applicable margin set forth in the pricing schedule contained in Schedule 8 attached hereto (as added by the Third Amendment hereto) used in calculating the interest rate applicable to the Floating Rate Advances, subject to the conditions set forth in such Schedule 8 with respect to the effective date of changes in such applicable margins.

 

“Capitalization Rate” means .0775.

 

“Facility Termination Date” means June 21, 2014.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of the Third Amendment to this Agreement and any regulations or official interpretations thereof.

 

 

“Implied Debt Service means, as of any date, an imputed annual amount of principal and interest that would be due on a principal amount equal to all Unsecured Indebtedness outstanding on such date (including without limitation all reimbursement obligations on account of letters of credit then outstanding) if such principal amount were a fully amortizing loan with equal monthly payments of principal and interest over a period of thirty years at a per annum interest rate equal to the greater of (a) 7.00% and (b) the sum of (i) the then current yield on obligations of the United States Treasury having the closest maturity date to the tenth (10th) anniversary of such date of calculation, and (ii) 2.50%.

 

“LIBOR Applicable Margin” means the applicable margin set forth in the pricing schedule contained in Schedule 8 attached hereto (as added by the Third Amendment hereto) used in calculating the interest rate applicable to LIBOR Advances, subject to the conditions set forth in such Schedule 8 with respect to the effective date of changes in such applicable margins.

 

“Unused Fee Percentage” means, with respect to any day during a calendar quarter, (i) 0.25% per annum, if the sum of the Advances and Facility Letter of Credit Obligations outstanding on such day is 50% or more of the Aggregate Commitment, or (ii) 0.35% per annum if the sum of the Advances and Facility Letter of Credit Obligations outstanding on such day is less than 50% of the Aggregate Commitment.

 

4.             Section 3.2 of the Credit Agreement is hereby amended by adding the following sentence at the end thereof:

 

                Notwithstanding anything in this Agreement to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines and directives promulgated thereunder shall be deemed to be a “Change”, regardless of the date enacted or adopted.

 

5.             Section 3.5 of the Credit Agreement is hereby amended by adding the following new subsection (h) at the end thereof:

 

(h)           If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Administrative Agent, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Administrative Agent as may be necessary for the Administrative Agent to comply with its obligations under FATCA, to determine that such Lender has or has not complied with such Lender’s 

 

2

 

obligations under FATCA and, as necessary, to determine the amount to deduct and withhold from such payment.  Solely for purposes of this Section 3.5(h), “FATCA” shall include any amendments made to FATCA after the date of the Third Amendment to this Agreement.

 

6.             Section 6.20 of the Credit Agreement is hereby amended by deleting the existing Section 6.20 in its entirety and replacing it with the following:

 

6.20  Consolidated Net Worth.  The Borrower shall maintain a Consolidated Net Worth of not less than $570,004,788 plus eighty percent (80%) of the equity contributions or sales of treasury stock received by the Borrower after the “Effective Date” of the Third Amendment to this Agreement.

 

7.             Subsection 6.21(i) of the Credit Agreement is hereby amended by deleting the existing Subsection 6.21(i) in its entirety and replacing it with the following:

 

(i)  Consolidated Outstanding Indebtedness to be more than 0.60 times Total Asset Value;

 

8.             Section 8.5 of the Credit Agreement is hereby amended by deleting existing subsections (d), (e) and (f) thereof and replacing them with the following:

 

(d)           to payment of that portion of the Obligations constituting unpaid principal of the Loans and that portion of the Obligations constituting Related Swap Obligations which are directly related to this Agreement and which have an aggregate notional amount not in excess of the Aggregate Commitment, such payment to be made ratably among the Lenders and Affiliates of Lenders holding such Related Swap Obligations in proportion to the respective unpaid principal amounts and net amounts due on termination of the related Swap Contracts owing to them;

 

(e)           to the payment of that portion of the Obligations constituting any  remaining Related Swap Obligations not paid under clause (d) ratably among the Lenders and Affiliates of Lenders holding such Related Swap Obligations in proportion to the respective net obligations due on termination of the related Swap Contracts owing to them; and

 

(f)            the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law.

 

9.             Schedule 8, titled Applicable Margins, attached to this Amendment is hereby deemed to be attached to and made a part of the Credit Agreement as Schedule 8 thereto.

 

10.           Borrower hereby represents and warrants that, as of the Effective Date, there is no Default or Unmatured Default, the representations and warranties contained in Article V of the Credit Agreement are true and correct in all material respects as of such date and Borrower has no offsets or claims against any of the Lenders.

 

3

 

11.           As expressly modified as provided herein, the Credit Agreement shall continue in full force and effect.

 

12.           This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Amendment by signing any such counterpart.

 

[Signature pages follow.]

 

4

 

 

IN WITNESS WHEREOF, the Borrower and the Lenders have executed this Amendment as of the date first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
INLAND REAL ESTATE CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brett A. Brown
    
	
 
    	
Print Name: Brett A. Brown
    
	
 
    	
Title: Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
2901 Butterfield Road
    
	
 
    	
Oak Brook, Illinois
    
	
 
    	
Phone: 630-218-7351
    
	
 
    	
Facsimile: 630-218-7350
    
	
 
    	
Attention: Mark E. Zalatoris
    
	
 
    	
zalatoris@inlandrealestate.com
    

 

5

 

	
 
    	
KEYBANK NATIONAL ASSOCIATION,
    
	
 
    	
Individually and as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kevin Murray
    
	
 
    	
Print Name:
    	
Kevin Murray
    
	
 
    	
Title:
    	
SVP
    
	
 
    	
 
    
	
 
    	
1200 Abernathy Rd NE, Suite 1550
    
	
 
    	
Atlanta, GA 30328
    
	
 
    	
Phone: 216-689-4660
    
	
 
    	
Facsimile: 216-689-3566
    
	
 
    	
Attention: Kevin Murray
    
	
 
    	
Kevin_P_Murray@KeyBank.com
    
	
 
    	
 
    
	
 
    	
With a copy to:
    
	
 
    	
 
    
	
 
    	
KeyBank National Association
    
	
 
    	
KeyBank Real Estate Capital
    
	
 
    	
Mailcode OH-01-49-0424
    
	
 
    	
4900 Tiedeman Road 4th Floor
    
	
 
    	
Brooklyn, OH 44144
    
	
 
    	
Phone: 216-813-1603
    
	
 
    	
Facsimile: 216-370-6206
    
	
 
    	
Attention: John P. Hyland
    
					

 

6

 

	
 
    	
WELLS FARGO BANK, N.A.,
    
	
 
    	
successor by merger to Wachovia Bank, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marla S. Bergrin
    
	
 
    	
Name: Marla S. Bergrin
    
	
 
    	
Title: Vice President
    
	
 
    	
 
    
	
 
    	
Wells Fargo Bank
    
	
 
    	
123 N. Wacker Drive, Suite 1900
    
	
 
    	
Chicago, IL 60606
    
	
 
    	
Phone: (312) 827-1538
    
	
 
    	
Facsimile: (312) 782-0969
    
	
 
    	
Attention: Beth Davis
    
	
 
    	
beth.m.davis@wellsfargo.com
    

 

7

 

	
 
    	
BANK OF AMERICA, N.A.
    
	
 
    	
Individually and as Co-Syndication Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patricia H. Gardenhire
    
	
 
    	
Name:
    	
Patricia H. Gardenhire
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
Bank of America, N.A.
    
	
 
    	
101 South Tryon Street
    
	
 
    	
NC1-002-33-87
    
	
 
    	
Charlotte, NC 28255
    
	
 
    	
Phone: (704) 386-6994
    
	
 
    	
Facsimile: (704) 386-6434
    
	
 
    	
Attention: Linda J. Frixen
    
	
 
    	
linda.j.frixen@bankofamerica.com
    

 

8

 

	
 
    	
WELLS FARGO BANK,
    
	
 
    	
NATIONAL ASSOCIATION
    
	
 
    	
Individually and as Co-Syndication Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marla S. Bergrin
    
	
 
    	
Name: Marla S. Bergrin
    
	
 
    	
Title: Vice President
    
	
 
    	
 
    
	
 
    	
Wells Fargo Bank
    
	
 
    	
123 N. Wacker Drive, Suite 1900
    
	
 
    	
Chicago, IL 60606
    
	
 
    	
Phone: (312) 827-1538
    
	
 
    	
Facsimile: (312) 782-0969
    
	
 
    	
Attention: Beth Davis
    
	
 
    	
beth.m.davis@wellsfargo.com
    

 

9

 

	
 
    	
RBS CITIZENS, NATIONAL ASSOCIATION,
    
	
 
    	
D/B/A CHARTER ONE
    
	
 
    	
Individually and as Co-Documentation Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Erin L. Mahon
    
	
 
    	
Name: Erin L. Mahon
    
	
 
    	
Title: Vice President
    
	
 
    	
 
    
	
 
    	
RBS Citizens, d/b/a Charter One
    
	
 
    	
1215 Superior Avenue 6th Floor
    
	
 
    	
Cleveland, Ohio 44114
    
	
 
    	
Phone: (216) 277-0199
    
	
 
    	
Facsimile: (216) 277-4607
    
	
 
    	
Attention: Don Wood
    
	
 
    	
Donald.w.woods@charteronebank.com
    
	
 
    	
mjawyn@charteronebank.com
    

 

10

 

	
 
    	
BMO   HARRIS FINANCING, INC. (formerly known as BMO Capital Markets Financing,   Inc.)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Aaron Lanski
    
	
 
    	
Name: Aaron Lanski
    
	
 
    	
Title: Director
    
	
 
    	
 
    
	
 
    	
BMO Harris Financing, Inc.
    
	
 
    	
115 South LaSalle Street, 18W
    
	
 
    	
Chicago, IL  60603
    
	
 
    	
Phone:  (312) 461-6364
    
	
 
    	
Facsimile:  (312) 461-2968
    
	
 
    	
Attention:  Aaron Lanski
    
	
 
    	
aaron.lanski@harrisbank.com
    

 

11

 

SCHEDULE 8

 

APPLICABLE MARGINS

 

The interest due hereunder with respect to the Advances shall vary from time to time and shall be determined by reference to the Type of Advance and the then-current Leverage Ratio.  Any such change in the Applicable Margin shall be made on the fifth (5th) day subsequent to the date on which the Administrative Agent receives a compliance certificate pursuant to Section 6.1(e) with respect to the preceding fiscal quarter of Borrower, provided that the Administrative Agent does not object to the information provided in such certificate.  Such changes shall be given prospective effect only, and no recalculation shall be done with respect to interest or Facility Letter of Credit Fees accrued prior to the date of such change in the Applicable Margin.  If any such compliance certificate shall later be determined to be incorrect and as a result a higher Applicable Margin should have been in effect for any period, Borrower shall pay to the Administrative Agent for the benefit of the Lenders all additional interest and fees which would have accrued if the original compliance certificate had been correct, as shown on an invoice to be prepared by the Administrative Agent and delivered to Borrower, on the next Payment Date following delivery of such invoice. If Borrower shall fail to deliver to the Administrative Agent any such compliance certificate by the date required under Section 6.1(v), the highest Applicable Margins set forth below shall apply until such compliance certificate has been delivered. The per annum Applicable Margins that will be either added to the Alternate Base Rate to determine the Floating Rate or added to LIBOR Base Rate (as adjusted for any Reserve Requirement) to determine the LIBOR Rate for any LIBOR Interest Period shall be determined as follows:

 

	
Leverage Ratio
    	
 
    	
LIBOR Applicable Margin
    	
 
    	
ABR
   Applicable Margin
    	
 
    
	
< 45% 
    	
 
    	
2.00
    	
%
    	
1.00
    	
%
    
	
> 45%, < 50%
    	
 
    	
2.25
    	
%
    	
1.25
    	
%
    
	
> 50%, < 55%
    	
 
    	
2.50
    	
%
    	
1.50
    	
%
    
	
> 55%, < 60%
    	
 
    	
2.75
    	
%
    	
1.75
    	
%
    

 

As of the Effective Date of the Third Amendment to this Agreement, based on the Leverage Ratio shown on the most recent compliance certificate delivered to the Administrative Agent by Borrower, the LIBOR Applicable Margin is 2.75% and the ABR Applicable Margin is 1.75%.Exhibit 4.7

 

FIRST COMMUNITY CORPORATION

2011 STOCK INCENTIVE PLAN

 

Form of Stock Option Agreement

 

FIRST COMMUNITY CORPORATION

STOCK OPTION AGREEMENT

 

THIS STOCK OPTION AGREEMENT (this “Agreement”) is entered into as of this [    ] day of [              ], 20          , between First Community Corporation, a South Carolina corporation (the “Company”), and [                    ] (the “Optionee”).

 

WHEREAS, on March 15, 2011, the Board of Directors of the Company adopted a Stock Incentive Plan known as the “First Community Corporation 2011 Stock Incentive Plan” (the “Plan”), and recommended that the Plan be approved by the Company’s shareholders; and

 

WHEREAS, the Committee has granted the Optionee a stock option to purchase the number of shares of the Company’s common stock as set forth below, and in consideration of the granting of that stock option the Optionee intends to remain in the employ of the Company; and

 

WHEREAS, the Company considers it desirable and in its best interest that the Optionee be provided an inducement to acquire an ownership interest in the Company and an additional incentive to advance the interest of the Company through the grant of an option to purchase shares of common stock of the Company pursuant to the Plan; and

 

WHEREAS, the Company and the Optionee desire to enter into a written agreement with respect to such option in accordance with the Plan.

 

NOW, THEREFORE, as an employment incentive and to encourage stock ownership, and also in consideration of the mutual covenants contained herein, the Company and the Optionee agree as follows.

 

1.                                       Incorporation of Plan. This option is granted pursuant to the provisions of the Plan and the terms and definitions of the Plan are incorporated herein by reference and made a part hereof. A copy of the Plan has been delivered to, and receipt is hereby acknowledged by, the Optionee.

 

2.                                       Grant of Option.  Subject to the provisions stated in this Agreement, the Company hereby evidences its grant to the Optionee, not in lieu of salary or other compensation, of the right and option (the “Option”) to purchase the number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), set forth below, exercisable in the amounts and at the time specified below.  [This Option is intended to be an Incentive Stock Option, as defined in the Code.]

 

	
Number of Shares:
    	
 
    	
[                          ]
    

 

 

	
Exercise Price:
    	
$
    	
[              ]   per share
    
	
 
    	
 
    	
 
    
	
Option Vesting   Schedule:
    	
 
    	
Options are exercisable with respect the   shares of Common Stock as follows, subject in each case to continued   employment by the Company or a subsidiary of the Company through such date,   and subject to the provisions of Section 7 of this Agreement:
    

 

	
No. of Shares
    	
 
    	
Vesting Date
    
	
 
    	
 
    	
[                  ],   2011
    
	
 
    	
 
    	
[                  ],   2012
    
	
 
    	
 
    	
[                  ],   2013
    
	
 
    	
 
    	
[                  ],   2014
    
	
 
    	
 
    	
[                  ],   2015
    

 

	
Option Exercise   Period:
    	
 
    	
All options expire and are void unless   exercised on or before   [                      ],   20[    ].
    

 

3.                                       Exercise Terms.  The Optionee must exercise the Option for at least the lesser of 100 shares or the number of shares of Stock as to which the Option remains unexercised but exercisable.  If this Option is not exercised with respect to all or any part of the shares subject to this Option prior to its expiration, the shares with respect to which this Option was not exercised shall no longer be subject to this Option.

 

4.                                       Restrictions on Transferability.  No Option shall be transferable by an Optionee other than by will or the laws of descent and distribution or pursuant to a Qualified Domestic Relations Order.  During the lifetime of an Optionee, Options shall be exercisable only by such Optionee (or by such Optionee’s guardian or legal representative, should one be appointed).  [The shares purchased pursuant to the exercise of an Incentive Stock Option are transferred by the Optionee except pursuant to the Optionee’s will, or the laws of descent and distribution, prior to such date which is the later of two years after the grant of such Incentive Stock Option or one year after the transfer of the shares to the Optionee pursuant to the exercise of such Incentive Stock Option, the transfer is a “disqualifying disposition” for tax purposes and Optionee shall report such transfer to the Company.]

 

5.                                       Notice of Exercise of Option.  This Option may be exercised by the Optionee, or by the Optionee’s administrators, executors or personal representatives, by a written notice (in substantially the form of a Notice of Exercise approved by the Company) signed by the Optionee, or by such administrators, executors or personal representatives, and delivered or mailed to the Company as specified in this Agreement to the attention of the President or such other officer as the Company may designate.  Any such notice shall (a) specify the number of shares of Common Stock which the Optionee or the Optionee’s administrators, executors or personal representatives, as the case may be, then elects to purchase hereunder, (b) contain such information as may be reasonably required by the Company pursuant to this Agreement, and (c) 

 

 

be accompanied by (i) a certified or cashier’s check payable to the Company in payment of the total Exercise Price applicable to such shares as provided herein, (ii) shares of stock owned by the Optionee and duly endorsed or accompanied by stock transfer powers, or constructively delivered through an attestation, having a Fair Market Value equal to the total Exercise Price applicable to such Shares purchased hereunder, or (iii) a certified or cashier’s check accompanied by the number of shares of stock where Fair Market Value when added to the amount of the check equals the total Exercise Price applicable to such shares purchased hereunder. Upon receipt of any such notice and accompanying payment, and subject to the terms hereof, the Company agrees to issue to the Optionee or the Optionee’s administrators, executors or personal representatives, as the case may be, stock certificates for the number of shares specified in such notice registered in the name of the person exercising this Option.

 

6.                                       Adjustment in Option.  The number of Shares subject to this Option, the Exercise Price, and other matters are subject to adjustment during the term of this Option in accordance with Section 4 of the Plan.

 

7.                                       Termination of Employment.

 

(a)                                  In the event of the termination of the Optionee’s employment (including due to retirement) with the Company or any of its Subsidiaries, other than a termination that is either (i) for Cause, or (ii) for reasons of death or Permanent and Total Disability, all vesting of the Option shall cease and the Optionee may exercise this Option at any time within a period ending on the earlier of (a) the last day of the period ending 90 days after such termination or (b) the expiration date of this Option, to the extent of the number of shares which were purchasable (vested) as of the date of such termination (and thereafter this Option shall be deemed terminated and shall not be or become exercisable).

 

(b)                                 In the event of a termination of the Optionee’s employment for Cause, this Option, to the extent not previously exercised, shall terminate immediately and shall not thereafter be or become exercisable.

 

(c)                                  In the event of termination of employment because of the Optionee’s Permanent and Total Disability, all vesting of the Option shall cease and the Optionee (or his or her personal representative) may exercise this Option, within a period ending on the earlier of (a) the last day of the twelve-month period following the Optionee’s Permanent and Total Disability or (b) the expiration date of this Option, to the extent of the number of shares which were purchasable (vested) as of the date of such termination.

 

(d)                                 In the event of the Optionee’s death while employed by the Company or any of its Subsidiaries or within 90 days after a termination of such employment (if such termination was not for Cause), the appropriate persons described in Section 5 hereof or persons to whom all or a portion of this Option is transferred in accordance with Section 4 hereof may exercise this Option, to the extent vested, at any time within a period ending on the earlier of (a) the last day of the twelve-month period following the Optionee’s death or (b) the expiration date of this Option.  If the Optionee was an employee of the Company at the time of death, all vesting of the Option shall cease as of the date of death, and this Option may be so exercised to the 

 

 

extent of the number of shares that were purchasable (vested) as of the date of death.  If the Optionee’s employment terminated prior to his or her death, all vesting of the Option shall have ceased as of the date of termination, and this Option may be exercised only to the extent of the number of shares covered by this Option which were purchasable (vested) as of the date of such termination.

 

This Option does not confer upon the Optionee any right with respect to continuance of employment by the Company or by any of its Subsidiaries.  This Option shall not be affected by any change of employment so long as the Optionee continues to be an employee of the Company or one of its Subsidiaries.

 

8.                                       Compliance with Regulatory Matters.  The Optionee acknowledges that the issuance of capital stock of the Company is subject to limitations imposed by federal and state law and the Optionee hereby agrees that the Company shall not be obligated to issue any shares of Stock upon exercise of this Option that would cause the Company to violate law or any rule, regulation, order or consent decree of any regulatory authority (including without limitation the Securities and Exchange Commission) having jurisdiction over the affairs of the Company. The Optionee agrees that he or she will provide the Company with such information as is reasonably requested by the Company or its counsel to determine whether the issuance of Stock complies with the provisions described by this Section 8.

 

9.                                       Forfeiture.  The purpose of the Plan is to attract, retain, and reward employees, to increase stock ownership and identification with the Company’s interests, and to provide incentive for remaining with and enhancing the value of the Company over the long-term.  Therefore, the Company and the Optionee agree as follows:

 

(a)                                  If, at any time within the later of (i) one year after termination of the Optionee’s employment or (ii) one year after the Optionee’s exercise of any portion of this Option, the Optionee engages in any activity which constitutes a violation of any confidentiality, noncompetition, nonsolicitation, or similar provision of any employment or other agreement between the Company and the Optionee (or, if no agreement is in place between the Company and the Optionee, any Company policies pertaining to such matters), or if the Optionee engages in any illegal or prohibited activity which is inimical, contrary, or harmful to the interests of the Company (including conduct related to the Optionee’s employment for which either criminal or civil penalties against the Optionee may be sought or violation of the Company’s policies, including the Company’s insider trading policy), then (1) this Option shall terminate effective the date on which the Optionee enters into such activity, unless terminating sooner by operation of another term or condition of this Option or the Plan, and (2) any Option Gain realized by the Optionee from exercising all or a portion of this Option shall be paid by the Optionee to the Company.  “Option Gain” shall mean the gain represented by the mean market price on the date of exercise over the Exercise Price, multiplied by the number of shares purchased through exercise of the Option, without regard to any subsequent market price decrease or increase.  The forfeiture provisions described in this Section 9 shall apply even if the Company does not elect otherwise to enforce the employment agreement or take other action against the Optionee, but shall not apply if termination of the Optionee’s employment with the Company occurs in 

 

 

connection with or following a Change in Control involving the Company (as defined in the Plan).

 

(b)                                 Section 12(d) of the Plan applies with respect to withholding tax payments (if any) with respect to this Option.  The Optionee hereby appoints the Company as its attorney-in-fact to execute any documents or do any acts necessary to exercise its rights under this Section.

 

(c)                                  The Optionee may be released from its obligations under this Section 9 only if the Board of Directors (or its duly appointed agent) determines in its sole discretion that such action is in the best interests of the Company.

 

10.                                 Miscellaneous.

 

(a)                                  This Agreement shall be binding upon the parties hereto and their representatives, successors and assigns.

 

(b)                                 Unless the context clearly indicates to the contrary, all capitalized terms used herein shall have the meanings as set forth in this Agreement, or in the event a capitalized term is not clearly described in this Agreement, the meanings as set forth in the Plan.

 

(c)                                  This Agreement is executed and delivered in, and shall be governed by the laws of, the State of South Carolina.

 

(d)                                 Income realized by the Optionee pursuant to this Agreement shall not be included in the Grantee’s earnings for the purpose of any benefit plan of the entity in which the Optionee may be enrolled or for which the Optionee may become eligible unless otherwise specifically provided for in such plan.

 

(e)                                  Any requests or notices to be given hereunder shall be deemed given, and any elections or exercises to be made or accomplished shall be deemed made or accomplished, upon actual delivery thereof to the designated recipient, or three days after deposit thereof in the United States mail, registered, return receipt requested and postage prepaid, addressed, if to the Optionee, at the address set forth below and, if to the Company, to the executive offices of the Company at 5455 Sunset Blvd., Lexington, South Carolina 29072.

 

(f)                                    This Agreement may not be modified except in writing executed by each of the parties hereto.  Notwithstanding the previous sentence, the Administrator reserves the right to amend the terms of this Agreement as may be necessary or appropriate to avoid adverse tax consequences under Section 409A of the Code or to comply with any requirements under the Company’s “clawback” policy regarding incentive compensation, or such “clawback” requirements under the Sarbanes—Oxley Act of 2002 or the Dodd-Frank Wall Street Reform and Consumer Protection Act

 

*                                                                                         *                                                                                         *                                                                                         *                                                                                         *

 

 

IN WITNESS WHEREOF, the Board of Directors of the Company has caused this Stock Option Agreement to be executed on behalf of the Company and the Company’s seal to be affixed hereto and attested by the Secretary or an Assistant Secretary of the Company, and the Optionee has executed this Stock Option Agreement under seal, all as of the day and year first above written.

 

	
 
    	
FIRST COMMUNITY CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OPTIONEE
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Address:

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