Document:

Exhibit 10.3 

PLEDGE
AGREEMENT 

THIS PLEDGE
AGREEMENT (herein “Agreement”) made and
entered into this 30th day of June, 2017, by and between
SOUTHERN FIRST BANCSHARES,
INC., a South Carolina corporation (herein
“Pledgor” or “Borrower”), having an address of 100 Verdae Boulevard, Suite 100,
Greenville, South Carolina 29606 and CENTERSTATE BANK, NATIONAL ASSOCIATION, a national banking association (herein “Bank”), having an address of 1101
1st Street South, Winter Haven, Florida 33880. 

RECITALS: 

A. Pledgor has requested Bank to make a
secured revolving line of credit loan to Pledgor in the principal amount of
$15,000,000.00 (the “Loan”) the terms of which are governed by that certain
Loan and Security Agreement by and between the Pledgor/Borrower and the Bank
dated the date hereof (the “Loan Agreement”). 

B. As a condition for Bank making the
Loan to Pledgor, Pledgor is required to secure payment thereof by a pledge of
shares of stock (the “Pledged Instruments”). 

C. Pledgor has executed and delivered
to Bank a Promissory Note in the principal amount of the Loan (the “Note”).

NOW, THEREFORE, in consideration of the premises and mutual covenants herein
contained, and in order to induce Bank to make the Loan to Pledgor and in
consideration of other Loan, advances and extensions of credit, and renewals and
modifications thereof, made or to be made by Bank to Pledgor, the parties hereto
agree as follows: 

SECTION 1.
PLEDGE. To secure the payment and
performance of the Obligations described in Section 2 below, Pledgor hereby
pledges, hypothecates, assigns, transfers, sets over and delivers unto Bank and
grants to Bank a security interest in (in each case, for the benefit of Bank and
any other holder or holders of the Obligations described in Section 2) the
following: 

(A) The Pledged Instruments hereinafter
described and the certificates, if any, representing the Pledged Instruments,
and all cash, securities, dividends, options, rights, warrants, interest, notes
and other property at any time and from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged
Instruments: 

100% of the issued and outstanding
stock (consisting of 850,000 shares) of SOUTHERN FIRST BANK, a South Carolina
banking corporation, represented by Share Certificate No. 001; and 

(B) All securities which Pledgor may be
entitled to, in substitution for, or in addition to any of the foregoing, and
all certificates and instruments representing or evidencing such securities,
together with the interest coupons (if any) attached thereto, and all cash,
securities, interest, dividends, options, rights, warrants, notes and other
property at any time and from time to time received, receivable, deposited to
the account of Pledgor with the Issuer or with a financial intermediary or
otherwise distributed in respect of or in exchange for any or all thereof.

All of the foregoing together with any
products of proceeds thereof being herein collectively called the “Pledged
Collateral”. 

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	SOUTHERN
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SECTION 2. SECURITY FOR
OBLIGATION. This Agreement secures the
payment and performance of: 

(A) The due and punctual payment of the
Note including any renewals, extensions, modifications or changes in the form of
indebtedness, together with accrued interest thereon and all other agreements
executed in conjunction with the Loan and extension of credit evidenced by the
Note (and all renewals, extensions,
modifications, or changes in the form thereof); 

(B) The full and prompt payment of all
other obligations of Borrower to Bank, whether now existing or hereafter
arising, whether direct or indirect, contingent or absolute; 

(C) All other obligations, debts, and
liabilities of Pledgor arising out of, in connection with or relating to this
Agreement or other obligations of Borrower to Bank (and all renewals,
extensions, and modifications thereof); 

(D) All reasonable costs and expenses,
including without limitation, reasonable attorney fees (including in-house legal
counsel), paralegal fees and costs incurred by Bank in connection with the
preparation and administration of this Agreement and enforcement of any of the
rights of Bank hereunder whether incurred prior to or on any trial, appellate
proceedings, any proceedings in bankruptcy or any post judgment
proceedings;

(E) All indebtedness, liabilities and
obligations arising or in connection with the Loan between Borrower/Pledgor and
Bank and any other documents executed in conjunction with the Loan; and

All of the foregoing shall constitute
the “Obligations” secured hereby. 

SECTION 3. REPRESENTATIONS AND
WARRANTIES. Pledgor hereby represents and
warrants as follows: 

(A) Pledgor is the legal and beneficial
owner of the Pledged Collateral, free and clear of all liens, security
interests, charges and encumbrances of every kind and nature; each share of
stock, bond, promissory note or other type of security comprising the Pledged
Collateral is duly authorized, validly issued, fully paid and non-assessable;
and Pledgor has legal title to the Pledged Collateral and good right and lawful
authority to pledge, assign and deliver the Pledged Collateral in the manner
hereby contemplated; 

(B) The execution and delivery of this
Agreement and the performance of its terms will not result in any violation of
any provision of the articles of incorporation or bylaws of the issuer of any
Pledged Collateral, or any other agreement, the subject of which is the Pledged
Collateral; 

(C) When other or substituted Pledged
Collateral is pledged hereunder, Pledgor will be the legal and beneficial owner
of such Pledged Collateral, free and clear or all liens, security interests,
charges and encumbrances of every kind and nature; and each share of stock,
bond, promissory note or other type of security comprising such Pledged
Collateral will have been duly authorized, validly issued and be fully paid and
non-assessable; 

(D) This Agreement constitutes a legal,
valid and binding obligation of Pledgor and upon delivery of the Pledged
Instruments to Bank or its agents, or if the Pledged Instruments are in
possession of a financial intermediary when it makes book entry or otherwise
identifies the Pledged Instruments as being subject to Bank’s security interest,
or if the Pledged Instruments are uncertificated, upon registration of the
pledge with the issuer of the Pledged Instruments, this Agreement shall create a
valid first lien upon and a perfected security interest in the Pledged
Instruments and the proceeds thereof, subject to no prior security interest,
lien charge, encumbrance or agreement purporting to grant to any third party a
security interest in the property or assets of Pledgor which constitute the
Pledged Collateral; 

(E) (i) That all certificates and
instruments evidencing the Pledged Collateral and delivered to Bank hereunder
shall be accompanied by proper instruments of assignment and/or stock and/or
bond powers executed by Pledgor in accordance with Bank’s instructions with
Pledgor’s signature guaranteed by a national bank or a firm that is a member of
the New York Stock Exchange; and (ii) that with respect to any of the Pledged
Collateral represented by uncertificated securities or registered in the name of
or in the possession of a financial intermediary, Pledgor shall execute all such
written notices or instructions to the issuer of financial intermediary for such
Pledged Collateral as Bank may deem necessary or desirable in order to perfect
and maintain the security interest in same 

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	SOUTHERN
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SECTION 4. COVENANTS OF
PLEDGOR. Pledgor hereby covenants that
until all of the Obligations to Bank have been satisfied in full: 

(A) It will NOT: (i) sell, convey or
otherwise dispose of any of the Pledged Collateral or any interest therein or
create, incur or permit to exist any pledge, mortgage, lien, charge, encumbrance
or any security interest whatsoever in or with respect to any of the Pledged
Collateral or the proceeds thereof, other than that created hereby; or (ii) if
the Pledged Collateral is a security not traded in an established market,
consent to or approve the authorization and issuance of: 

		(1)	Any additional shares of any class of capital stock in
      the issuer of the Pledged Collateral,
	          	          	
		(2)	Any securities convertible voluntarily by the holder
      thereof or automatically upon the occurrence or nonoccurrence of any event
      or condition into, or exchangeable for any such shares of corporate stock;
      and
		 
		(3)	Any warrants, option, rights or other commitments
      entitling any person to purchase or otherwise acquire any such shares of
      corporate stock.

(B) It will: (i) at its own expense,
defend Bank’s right, title, and security interest in an to the Pledged
Collateral against the claims of any person, firm, corporation or other entity;
(ii) pay promptly when due all taxes, assessments and charges affecting the
Pledged Collateral; (iii) procure, execute, and deliver from time to time any
endorsement, assignment, financing statement, and other writing deemed necessary
or appropriate by Bank to perfect, maintain and protect the security interest
granted hereunder and the priority thereof; and (iv) promptly pay to Bank the
amount of all costs and expenses of Bank, including but not limited to,
reasonable attorneys’ fees incurred by Bank in connection with this Agreement
and the enforcement of the rights of Bank hereunder. 

SECTION 5. AUTHORIZED ACTION BY
BANK.

(A) Upon an Event of Default, Pledgor
is deemed to appoint Bank as Pledgor’s attorney-in-fact for the purpose of
carrying out the provisions of this Agreement and taking any action and
executing any instrument which Bank may deem necessary or advisable to
accomplish the purposes hereof, which appointment shall be irrevocable and
coupled with an interest. 

(B) Bank shall have the right to:
appoint one or more sub-agents for the purpose of retaining physical possession
of the certificates or instruments representing or evidencing the Pledged
Collateral, which may be held (in the discretion of Bank) in the name of
Pledgor, endorsed, and assigned in blank or in favor of Bank, or in the name of
Bank or any nominee or nominees of Bank or a sub-agent appointed by Bank.

So long as no Event of Default has
occurred, Bank shall deliver promptly to Pledgor, upon written demand from
Pledgor, all notices statements, or other communications received by Bank or its
nominee as registered owner, such proxy or proxies to vote and take action with
respect to the Pledged Collateral that is not otherwise prohibited by the
provisions of this Agreement. 

SECTION 6.
INCOME. 

(A) So long as there is no occurrence
of an Event of Default, or any such event which with the giving of notice or
lapse of time or both would become an Event of Default, shall occur and be
continuing, Pledgor shall be entitled to receive and retain any and all ordinary
cash dividends and regularly scheduled interest payable on the Pledged
Collateral, but any and all stock and/or liquidating dividends, distributions in
property, returns of capital or other distributions made on or in respect of the
Pledged Collateral, are to be held as additional Pledged Collateral subject to
the terms of this Agreement; 

(B) Upon the occurrence and during the
continuance of an Event of Default, or any such event which with the giving of
notice or lapse of time or both would become an Event of Default, shall occur
and be continuing, Pledgor shall be entitled to receive and retain any and all
ordinary cash dividends and regularly scheduled interest payable on the Pledged
Collateral, but any and all stock and/or liquidating dividends, distributions in
property, return of capital or other distribution made on or in respect of the
Pledged Collateral, are to be held as additional Pledged Collateral subject to
the terms of this Agreement; 

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	SOUTHERN
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(C) Upon the occurrence and during the
continuance of Event of Default, or an event which with the giving of notice or
lapse of time or both would become an Event of Default, all right of Pledgor to
receive the ordinary cash dividends and regularly scheduled interest payable on
the Pledged Collateral pursuant to Section 6(A) shall cease, and all such rights
shall thereupon become vested in Bank. Any and all money and other property paid
over to or received by Bank pursuant to the provisions of this Section 6 (C)
shall be retained by Bank as part of the Pledged Collateral and applied to such
Obligations of Pledgor and in such order as Bank shall determine in its sole
discretion. 

SECTION 7. EVENTS OF
DEFAULT. If the Pledged Collateral shall
at any time become unsatisfactory to Bank, or if Bank shall at any time deem
itself insecure, or upon the happening of any of the following events, or the
occurrence of an event of default as defined in the Note, or any other written
agreement between Bank and Pledgor or Bank and Borrower, or a breach in any
material respect of any representation, warranty, or covenant of Pledgor
contained in this Agreement shall have occurred and be continuing, each of which
shall constitute a default hereunder (herein referred to as an “Event of
Default’), then Bank shall have the right as to Pledgor, and notwithstanding
that Borrower may not be in default of the Loan or any other Obligation to Bank,
to deem all Obligations of Pledgor to Bank, at the option of Bank, without
notice or demand, due and payable: 

(A) Failure of Borrower to pay in full,
when due, whether at maturity or acceleration, any principal installment of the
Note or interest installment thereon; 

(B) A default or an event of default as
defined in the Note, the Loan Agreement or other evidence of an Obligation held
by Bank should occur and not be remedied within any cure period, if any,
provided in such Note or other evidence of an Obligation; 

(C) Any material default shall occur on
the part of Pledgor in the due observance or performance of any covenant,
agreement or other provision of this Agreement, or any other document, agreement
or instrument executed and delivered in connection with this Agreement;

(D) The issuing of any attachment, levy
of execution, garnishment or other judicial process against any of the Pledged
Collateral, 

(E) Pledgor or Borrower shall (i) have
an order for relief entered with respect to it under the United States
Bankruptcy Code; (ii) not pay, or admit in writing its inability to pay its
debts generally as they become due; (iii) make an assignment for the benefit of
creditors; (iv) apply for, seek, consent to, or acquiesce in the appointment of
a receiver, custodian, trustee, examiner, liquidator or similar official for it
or any substantial part of its property; (v) institute any proceeding seeking an
order for relief under the United States Bankruptcy Code or seeking to
adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up
liquidation, reorganization, arrangement, adjustment or composition of it or its
debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors, or fail to file an answer or other pleading denying the
material allegations of any such proceeding filed against it; (vi) be
“Insolvent” as such term is defined in the United States Bankruptcy Code; (vii)
have concealed, removed, or permitted to be concealed or removed, any part of
its properties or assets, with intent to hinder, delay or defraud its creditors
or any of them or made or suffered a transfer of any of its property which may
be fraudulent under any bankruptcy, fraudulent assets, with intent to hinder,
delay or defraud its creditors or any of them or made or suffered a transfer of
any of its property which may be fraudulent under any bankruptcy, fraudulent
conveyance or similar law; or shall have made any transfer of its property to or
for the benefit of a creditor at a time when other creditors similarly situated
have not been paid; (viii) take any corporate action to authorize or effect any
of the foregoing actions set forth in this subsection, or (ix) fail to contest
in good faith any appointment or proceeding described in any subsection;

(F) Without the application, approval
or consent, a receiver, trustee, examiner, liquidator or similar official shall
be appointed for Pledgor or Borrower or any part of its property or a proceeding
described in subsection (E)(v) shall he instituted against Pledgor and such
appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of thirty (30) consecutive days; 

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(G) Pledgor further grants a security
interest in any of the Pledged Collateral; 

(H) Pledgor fails to do all things
necessary to preserve and maintain the value and collectability of the Pledged
Collateral, including, but not limited to, the payment of taxes and premiums on
policies of insurance on the due date without benefit of the grace period, and

(I) Failure of Pledgor after request by
Bank, to furnish financial information or to permit Inspection of Pledgor’s
books and records, which failure shall continue uncured for ten (10) days after
notice of such default from Bank to Pledgor. 

SECTION 8. REMEDIES UPON
DEFAULT. Upon the occurrence of any Event
of Default, then, in addition to having the right to exercise any rights and
remedies of a secured party upon default under the Uniform Commercial Code in
effect in the State of Florida, or any other applicable statute or rule of law
or equity, Bank may, in its sole discretion, foreclose or otherwise enforce
Bank’s security interest in the Pledged Collateral (without resorting to any
other property or proceeding against any other party primarily or secondarily
liable under or securing the Loan) in any manner permitted by law or provided
for in this Agreement, sell the Pledged Collateral, or any part thereof, at any
public or private sale or at any broker’s board or on any securities exchange,
for cash, upon credit or for future delivery, as Bank shall deem appropriate. To
the extent that notice of sale shall be required to be given by law, Bank shall
give Pledgor at least (5) business days’ written notice of Bank’s intention to
make any such public or private sale or sale at any broker’s board or on any
such securities exchange. Notwithstanding the foregoing, Pledgor recognizes that
Bank may be unable to effect a public sale of all or part of the Pledged
Collateral and maybe compelled to resort to a private sale to a restricted group
of purchasers. Pledgor acknowledges that any such private sale maybe at prices
and on terms less favorable than those of public sale, and agrees that such
private sale shall be deemed to have been made in a commercially reasonable
manner and that Bank has no obligation to delay sale of any Pledged Collateral
to permit the issuer thereof to register it for public sale under any applicable
laws Pledgor hereby acknowledges that sale of the Pledged Collateral by any
methods described in this Section 8 would constitute a commercially reasonable
disposition thereof within the meaning of the Uniform Commercial Code as in
effect in the State of Florida 

SECTION 9. APPLICATION OF
PROCEEDS OF SALE. The proceeds of Pledged
Collateral sold pursuant to Section 8 herein shall be applied by Bank as
follows: 

(A) First, to the payment of the costs
and expenses of such sale, including the out-of-pocket expenses of Bank and the
reasonable fees and out-of-pocket expenses of counsel employed in connection
with enforcing its right under this Agreement; 

(B) Second, to the payment or
prepayment of the Note, with proceeds to be applied to interest accrued and
unpaid to the date of application, then in payment of principal of the Note and
thereafter to the payment or prepayment of any other Obligations of Borrower and
Pledgor to Bank in such order as Bank may determine in its sole discretion; and,

(C) Third, the balance (if any), of
such proceeds shall be paid to Pledgor, its successors or assigns, or as a court
of competent jurisdiction may direct. 

SECTION 10. NO WAIVER; CUMULATIVE
REMEDIES. No failure on the part of Bank
to exercise, and no delay in exercising, any right power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy by Bank preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided
bylaw. 

SECTION 11. EXTENT OF
OBLIGATION. Pledgor hereby agrees that
from time to time, without notice or demand and without affecting or impairing
in anyway the rights of Bank with respect to the Pledged Collateral or the
Obligations of Pledgor hereunder, Bank may: 

(A) Renew, compromise, extend,
accelerate or change the time for payment or the terms of the Obligations
secured hereby, or any part thereof; 

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(B) Exchange, enforce, waive, release
apply and direct the order or manner of sale of any and all collateral for the
Obligations, including, without limitation, in the case of foreclosure after the
occurrence of an Event of Default hereunder, the Pledged Collateral, as Bank, in
its sole discretion, may determine; and/or 

(C) Release or substitute Borrower or
any one or more endorsers. Pledgor waives any right to require Bank to (a)
proceed against Borrower; (b) proceed against or exhaust any security held for
the Obligations, or (c) pursue any other remedy whatsoever. Pledgor waives any
defense based upon or arising out of disability or other defense or the
cessation of liability of either Borrower or any other person, and, until
payment in full of the Obligations, waives any right of subrogation or right to
proceed against Borrower or any other person or to participate in any security
for the Obligations. Pledgor hereby acknowledges and agrees that Bank may
foreclose on any security held by it by one or more judicial or nonjudicial
sales, or exercise any other right or remedy it may have against Borrower or
Pledgor or any security held by it for the Obligations without affecting or
impairing in anyway the rights of Bank with respect to the Pledged Collateral or
the Obligations of Pledgor hereunder, Pledgor waives any defense arising out of
any such election by Bank, even though such election operates to impair or
extinguish any right of reimbursement or subrogation or other right or remedy of
Pledgor against Borrower or any such security. 

SECTION 12.
TERMINATION. This Agreement shall
terminate when the Note and all other Obligations of Borrower to Bank have been
fully paid and performed, at which time Bank shall reassign and redeliver,
without recourse upon or warranty by Bank and at the expense of Pledgor, such of
the Pledged Collateral (if any) still held by it hereunder, together with
appropriate instrument(s) of reassignment and release. 

SECTION 13.
NOTICES. Any written notice, demand or
request that is required to be made in any of the Loan Documents shall be served
in person, or by registered or certified mail, return receipt requested, or by
express mail or similar service, addressed to the party to be served at the
address set forth in the first paragraph hereof. The addresses stated herein may
be changed as to the applicable party by providing the other party with notice
of such address change in the manner provided in this paragraph. In the event
that written notice, demand or request is made as provided in this paragraph,
then in the event that such notice is returned to the sender by the United
States postal system or the courier service because of insufficient address or
because the party has moved or otherwise, other than for insufficient postage or
payment to the courier, such writing shall be deemed to have been received by
the party to whom it was addressed three (3) days after such writing was
initially placed in the United states postal system or one (1) day after it was
deposited with the courier service with the postage or cost thereof prepaid in
full by the sender. 

SECTION 14. DEGREE OF
CARE. Beyond the exercise of reasonable
care to assure the safe custody of the Pledged Collateral while held hereunder,
Bank shall have no duty or liability to preserve the right pertaining thereto
including but not limited to the failure or refusal to exercise any conversion,
options, or warrants, present any Pledged Collateral for redemption, sell any of
the Pledged Collateral at the request of Pledgor, and is relieved of all
responsibility to Pledgor. 

SECTION 15. BINDING
AGREEMENT. This Agreement and the terms,
covenants and conditions hereof, shall be binding upon and inure to the benefit
of the parties hereto, Bank and to each holder of the Note, and their respective
successors and assigns. 

SECTION 16.
MISCELLANEOUS. The Recitals are hereby
incorporated herein by reference and made a part hereof. Neither this Agreement
nor any provisions hereof may be amended, modified, waived, discharged or
terminated orally, nor may any of the Pledged Collateral be released except by
an instrument in writing duly signed by or on behalf of Bank hereunder (which
signing may be done only upon the request or with the concurrence of Bank). The
Section headings used herein are for convenience of reference only and shall not
define or limit the provisions of this Agreement. This Agreement embodies the
entire agreement between the parties concerning the matter dealt with herein and
supersedes all prior agreements or understandings as may relate to the proposed
transaction completed hereby. 

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SECTION 17.
SEVERABILITY. In case any lien, security
interest or other right of any party hereto shall be held to be invalid, illegal
or unenforceable, such invalidity, illegality, or unenforceability shall not
affect any other lien, security interest or other right granted hereby.

SECTION 18. WAIVER OF VENUE;
JURISDICTION. Pledgor hereby waives any
plea of jurisdiction or venue as not being a resident of Polk County Florida
where suit is instituted and hereby specifically authorizes any action brought
upon the enforcement of this Agreement by Bank to be instituted and prosecuted
in either the Circuit Court of Polk County in the State of Florida or the United
States District Court situated in the State of Florida at the election of Bank
and submits to the jurisdiction of such Court. 

SECTION 19.
EFFECTIVENESS. The terms “Pledgor”,
“Borrower’ and the ‘Bank” as used herein shall include all parties to this
instrument, legal representatives and the successors and assigns of a
corporation. 

SECTION 20. GOVERNING
LAW. This Agreement shall be governed by
and construed in accordance with the laws of the State of Florida without giving
effect to principles of conflict of laws, regardless of the citizenship,
residency, location or domicile of Pledgor. 

SECTION 21. WAIVER OF JURY TRIAL.
BANK AND PLEDGOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT
EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY AGREEMENT
CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF EITHER
PARTY, THIS PROVISION IS A MATERIAL INDUCEMENT FOR’BANK ENTERING INTO THIS
AGREEMENT. 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written. 

REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK. 

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	SOUTHERN
      FIRST BANCSHARES, INC.	

	“PLEDGOR/BORROWER”
	 
	SOUTHERN FIRST BANCSHARES,
      INC.,
	a South Carolina
      corporation
	 
	 
	By: 	/s/ Michael D. Dowling
		Michael D.
      Dowling, Chief Financial Officer

	Pledge Agreement	Page 9 of 9
	SOUTHERN FIRST BANCSHARES,
      INC.	

ACKNOWLEDGMENT BY ISSUER OF
PLEDGE OF SHARES/STOCK 

The undersigned issuer, SOUTHERN FIRST BANK, a
South Carolina banking corporation (“SFB” and/or “Issuer”), hereby acknowledges
and agrees that certain securities, consisting of 100% of the issued and
outstanding common stock of SFB held by SOUTHERN FIRST BANCSHARES, INC., a
South Carolina corporation (the “Pledgor”), and more particularly described on
Exhibit A
("Securities") attached hereto and incorporated herein by this reference
together with all renewals, extensions, rollovers, reinvestments and proceeds of
the securities including without limitation, any other documents or instruments
at any time purchased or obtained in replacement, exchange or substitution
thereof or with any of the proceeds thereof), and all monies and other proceeds
due or becoming due or to become due under any of the foregoing and all sums due
or to become due thereon or therefrom by way of dividend, interest, bonus,
redemption, repurchase, repayment or otherwise have been assigned for security
purposes, pledged and hypothecated to CENTERSTATE BANK, NATIONAL ASSOCIATION, a national banking association ("Lender") pursuant to the terms and
provisions of the Pledge Agreement ("Pledge Agreement") a copy of which is
attached hereto as Exhibit B and incorporated herein by this reference. Hereafter, all of
the foregoing property may be described collectively as the "Collateral."

By the signature of Issuer herein
below, Issuer acknowledges its confirmation and agreement that: 

	          	(a)	 the assignment for security
      purposes, pledge, lien and security interest in favor of Lender in the
      Securities and the other Collateral is and will be registered in the
      records of Issuer;
		          	 
		(b)	the records of Issuer do not
      reflect, and Issuer has not received any notice of, any other assignment,
      conveyance, sale or transfer of or pledge, lien or security interest in
      the Securities;
		 
		(c)	Issuer will not take any action
      to pay, redeem, reinvest, assign, transfer or encumber the Securities or
      any other Collateral except in accordance with the written instructions of
      Lender;
		 
		(d)	the Collateral is not and will
      not be subject to any present or future assignment for security purposes,
      pledge, lien, security interest, claim, defense, setoff or counterclaim in
      favor of Issuer; and
		 
		(e)	the Pledgor's signatures
      appearing on the Pledge Agreement have been compared with Issuer's
      signature records and the same compares favorably therewith, and is
      sufficient to authorize the renewal, rollover, reinvestment, redemption or
      other right to payment pursuant to the Collateral, and/or assignment of
      the Collateral, by Lender in accordance with the terms of such Pledge
      Agreement.
		 

	READ, CONFIRMED AND AGREED
      TO:
	 
	SOUTHERN FIRST
      BANK,
	a South Carolina banking
      corporation (“Issuer”)
	 
	 
	By: 	/s/ Michael D. Dowling
		Michael D.
      Dowling, Chief Financial OfficerExhibit

Exhibit 10.1
Execution Version

KEANE GROUP CONTINGENT VALUE RIGHTS AGREEMENT 
 
BY AND AMONG 
 
KEANE GROUP INC.
ROCKPILE ENERGY HOLDINGS, LLC
AND
THE OTHER PERMITTED HOLDERS PARTY HERETO 

 
 
 
 
 
 
 
 
 
DATED AS OF July 3, 2017

 

TABLE OF CONTENTS
	
					
	 
	 
	Page
	 

	ARTICLE I DEFINITIONS
	1
	

	 
	Section 1.1
	Definitions
	1
	

	ARTICLE II CONTINGENT VALUE RIGHTS
	4
	

	 
	Section 2.1
	CVRs
	4
	

	 
	Section 2.2
	Nontransferable
	4
	

	 
	Section 2.3
	No Certificate
	4
	

	 
	Section 2.4
	CVR Payment Amount
	4
	

	 
	Section 2.5
	Payment Procedures
	5
	

	 
	Section 2.6
	Adjustments
	5
	

	 
	Section 2.7
	No Voting, Dividends or Interest; No Equity or Ownership Interest in the Company
	5
	

	ARTICLE III COVENANTS
	6
	

	 
	Section 3.1
	Payment of Amounts, if any, to the Holders
	6
	

	 
	Section 3.2
	Certain Purchases and Sales
	6
	

	ARTICLE IV AMENDMENTS
	6
	

	 
	Section 4.1
	Amendments  and Modification
	6
	

	 
	Section 4.2
	Effect of Amendments
	6
	

	ARTICLE V CONSOLIDATION, MERGER, SALE OR CONVEYANCE
	7
	

	 
	Section 5.1
	Company Consolidation, Merger, Sale or Conveyance
	7
	

	 
	Section 5.2
	Successor Substituted
	8
	

	ARTICLE VI OTHER PROVISIONS OF GENERAL APPLICATION
	8
	

	 
	Section 6.1
	Notices to the Company and the Holders
	8
	

	 
	Section 6.2
	Counterparts; Headings
	9
	

	 
	Section 6.3
	Assignment; Successors
	10
	

	 
	Section 6.4
	Benefits of Agreement
	10
	

	 
	Section 6.5
	Governing Law
	10
	

	
			
	 
	 
	 

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	Section 6.6
	Waiver of Jury Trial
	10
	

	 
	Section 6.7
	Remedies
	11
	

	 
	Section 6.8
	Severability Clause
	11
	

	 
	Section 6.9
	Termination
	12
	

	 
	Section 6.10
	Entire Agreement
	12
	

	
			
	 
	 
	 

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KEANE GROUP CONTINGENT VALUE RIGHTS AGREEMENT
THIS KEANE GROUP CONTINGENT VALUE RIGHTS AGREEMENT, dated as of July 3, 2017 (this "Agreement"), is entered into by and among Keane Group Inc., a Delaware corporation (the "Company"), RockPile Energy Holdings, LLC, a Delaware limited liability company (the "Principal Seller") and the Permitted Holders (as defined herein). 
RECITALS
WHEREAS, the Company, the Principal Seller, RockPile Management NewCo, LLC, a Delaware limited liability company, and RockPile Energy Services, LLC, a Colorado limited liability company, on behalf of itself and its subsidiaries, have entered into an Purchase Agreement, dated as of May 18, 2017 (as amended, the "Purchase Agreement"),
WHEREAS, subject to the terms and conditions of the Purchase Agreement, the Seller Parties desire to sell, and the Company desires to purchase, the Acquired Interests (as defined in Purchase Agreement)  in exchange for the consideration specified in the Purchase Agreement, including certain rights to the CVR Payment Amount (as defined below) if and when payable pursuant to this Agreement, and
NOW, THEREFORE, for and in consideration of the agreements contained herein and the consummation of the transactions contemplated by the Purchase Agreement, it is mutually covenanted and agreed as follows:

 ARTICLE I
DEFINITIONS

Section 1.1    Definitions.
(a)    For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:
(i)    the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;
(ii)    the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision;
(iii)    unless the context otherwise requires, words describing the singular number shall include the plural and vice versa, words denoting any gender shall include 

	
			
	 
	 
	 

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all genders and words denoting natural Persons shall include corporations, partnerships and other Persons and vice versa; 
(iv)    all references to "including" shall be deemed to mean including without limitation; and 
(v)    to the extent permitted by the terms of this Agreement, references to any Person include such Person's successors and permitted assigns. 
(b)    Capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Purchase Agreement.  The following terms shall have the meanings ascribed to them as follows:
"Agreement" has the meaning given to such term in the Preamble.
"Aggregate CVR Payment Amount" has the meaning set forth in Section 2.4.
"Acquisition Shares" means the 8,684,210 Shares initially acquired by the Principal Seller as part of the consideration as set forth in the Purchase Agreement.
"Acquisition Share Value Amount" is the amount equal to the (i)  aggregate gross proceeds received in connection with the resale of any Acquisition Shares during the term of this Agreement plus (ii)  product of the Outstanding Acquisition Shares and the Twenty-Day VWAP plus (iii)  Aggregate CVR Payment Amount.
"Board of Directors" means the board of directors of the Company.
"Board Resolution" means a copy of a resolution certified by the secretary or an assistant secretary of the Company to have been duly adopted by the Board of Directors.
"Company" has the meaning given to such term in the Preamble.
"Company Common Stock" or "Shares" refer to the Company's common stock, par value $0.01 per share.
"CVR" has the meaning set forth in Section 2.1.
"CVR Payment Amount" has the meaning set forth in Section 2.4.
"CVR Strike Price" means $19.00.
"Early Termination Date" means (I)(A) the fifteenth consecutive trading day from the Lock-up Period Termination Date for which the Weighted Average Price of the Company's 

	
			
	 
	 
	 

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Common Stock is above the CVR Strike Price and (B) the Acquisition Shares (i) have been registered under the Securities Act or (ii) are not subject to the re-sale limitations set forth in Rule 144 of the Securities Act or (II) the date on which all of the Acquisition Shares have been sold, transferred, disposed of or otherwise canceled.
“Holder” means the Principal Seller and the Permitted Holders, as applicable. 
"Lock-up Period Termination Date" means the earlier of (i) January 3, 2018 and (ii) the date on which Keane Investor Holdings LLC, a Delaware limited liability company, consummates a sale of any or all of its Shares.
"Maturity Date" means April 3, 2018.
"Officer's Certificate" means a certificate signed by the chief executive officer, president, chief financial officer, any vice president, the controller, the treasurer or the secretary of the Company, in his or her capacity as such an officer.
"Outstanding" when used with respect to (i) the CVRs and/or (ii) Acquisition Shares, means, as of the date of determination, an amount equal to the Acquisition Shares that are then held by the Holders which has not been sold, transferred, disposed of or otherwise canceled.
"Permitted Holders" means the persons listed on signature pages hereto as "Permitted Holders". 
"Principal Market" means the New York Stock Exchange, or if the Company Common Stock is not traded on the New York Stock Exchange, then the principal securities exchange or trading market for the Common Stock.
"Principal Seller " has the meaning given to such term in the Preamble.
"Principal Seller Change of Ownership" means one or more the members of the Principal Seller as of the Closing Date fail at any time to own 100% of the interests (both economic and voting) of the Principal Seller. 
"Purchase Agreement" has the meaning given to such term in the Recitals
"Surviving Person" has the meaning given to such term in Section 5.1(a)(i).
"Twenty-Day VWAP" means the arithmetic average of the Weighted Average Price of the Company's Common Stock on each trading day during twenty (20) trading days randomly selected by the Company during the thirty (30) trading day period immediately preceding the last Business Day prior to the Maturity Date.

	
			
	 
	 
	 

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"Value Cap" has the meaning given to such term in Section 2.4.
"Weighted Average Price" means, for any security as of any date, the dollar volume weighted average price for such security on the Principal Market during the period beginning at 9:30 a.m., New York City Time, and ending at 4:00 p.m., New York City Time, as Reported by Bloomberg Financial Markets, or any successor thereto ("Bloomberg"), through its "Volume at Price" functions or, if the foregoing does not apply, the dollar volume weighted average price of such security in the over the counter market on the electronic bulletin board for such security during the period beginning at 9:30 a.m., New York City time, and ending at 4:00 p.m., New York City Time, as reported by Bloomberg. If the Weighted Average Price cannot be calculated for such security on such date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as mutually agreed upon by Company and the Principal Seller. All such determinations to be appropriately adjusted for any stock dividend, stock split or other similar transaction during such period.

ARTICLE II
CONTINGENT VALUE RIGHTS

Section 2.1    CVRs.
The Company agrees that this Agreement shall entitle the Holders to one contingent value right ("CVR") at the Closing Date (as defined in the Purchase Agreement) in connection with each Acquisition Share. Each CVR shall represent the contractual right of the Holders to receive the CVR Payment Amount if and when payable pursuant to this Agreement.  The administration of the CVRs shall be handled pursuant to this Agreement in the manner set forth in this Agreement.

Section 2.2    Nontransferable.
The CVRs or any interest therein shall not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole or in part. 

Section 2.3    No Certificate.
The CVRs shall not be evidenced by a certificate or other instrument.

Section 2.4    CVR Payment Amount.
(a)    Subject to Section 2.4(b), if the Twenty-Day VWAP is less than the CVR Strike Price, the Holders, in respect of their then Outstanding CVRs,  shall be entitled to and shall receive an aggregate cash amount equal to the product of (I) the CVR Strike Price 

	
			
	 
	 
	 

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minus the Twenty-Day VWAP (such amount, the "CVR Payment Amount") multiplied by the then Outstanding CVRs (such amount, the "Aggregate CVR Payment Amount"); provided that the CVR Payment Amount shall not exceed $2.30.
(b)    Notwithstanding anything to the contrary set forth in the Purchase Agreement or this Agreement, if the Acquisition Share Value Amount exceeds $165 million (the "Value Cap"), the Aggregate CVR Payment Amount, if applicable, shall be reduced on a dollar for dollar basis such that the Acquisition Share Value Amount does not exceed the Value Cap.

Section 2.5    Payment Procedures
To the extent required pursuant to Section 2.4, the Company shall make the Aggregate CVR Payment Amount to the Holders the fifth Business Day following the Maturity Date. Such payment shall be made to the Holders in accordance with the instructions set forth on Annex A hereto and  shall be made by wire transfer. 

Section 2.6    Adjustments
If at any time during the period between the date of this Agreement and the Maturity Date, any change in the outstanding Shares shall occur as a result of any reclassification, recapitalization, stock-split (including a reverse stock split) or combination, exchange or readjustment of Shares, or any stock dividend or stock distribution (other than a quarterly dividend)  with a record date during such period, the CVR Strike Price and the CVR Payment Amount, in each case, shall be equitably adjusted. All calculations and determinations of this Section 2.6 shall be mutually agreed upon by the Company and the Principal Seller in good faith.

Section 2.7    No Voting, Dividends or Interest; No Equity or Ownership Interest in the Company.
(a)    The CVRs shall not have any voting or dividend rights, and interest shall not accrue on any amounts payable on the CVRs to the Holders.
(b)    The CVRs shall not represent any equity or ownership interest in Company or any of their Affiliates.

	
			
	 
	 
	 

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ARTICLE III
COVENANTS

Section 3.1    Payment of Amounts, if any, to the Holders.
The Company will duly and punctually pay the Aggregate CVR Payment Amount, if any, in the manner provided in Section 2.5. 

Section 3.2    Certain Purchases and Sales.
Unless consented to by the Company, the Holders will not, and will not permit any of its members or their respective Affiliates, (1) offer to purchase, purchase, contract to purchase, purchase any option or contract to sell, sell any option or contract to purchase, grant any option, right or warrant to sell, or otherwise acquire or purchase, directly or indirectly, any Shares or any securities convertible into or exercisable or exchangeable for Shares, or (2) enter into any swap or other arrangement that acquires from another, in whole or in part, any of the economic consequences of ownership of the Shares, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Shares or such other securities, in cash or otherwise. The foregoing restrictions are expressly agreed to preclude the Holders and their respective Affiliates during the applicable periods from engaging in any hedging or other transaction which is designed to or reasonably expected to lead to or result in a purchase or acquisition of Shares even if such Shares would be acquired by someone other than the Holders  or their Affiliates. Such prohibited hedging or other transactions would include without limitation any purchase or any purchase, sale or grant of any right (including without limitation any put option or put equivalent position or call option or call equivalent position) with respect to any of the Shares or with respect to any security that includes, relates to, or derives any significant part of its value from such Shares.

ARTICLE IV
AMENDMENTS

Section 4.1    Amendments  and Modification.
(a)    Subject to Section 4.1(b), this Agreement may be amended, modified or supplemented only by written agreement of the Company and the Principal Seller.
(b)    Without the consent of the Principal Seller, the Company (when authorized by a Board Resolution), at any time and from time to time, may enter into one or more amendments hereto for the following purposes:

	
			
	 
	 
	 

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(i)     subject to Section 5.1, to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein;
(ii)    to cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Agreement; provided, that, in each case, such provisions shall not adversely affect the interests of the Holders; or
(iii)    as may be necessary to ensure that the CVRs are not subject to registration under the Securities Act or the Exchange Act.
(c)    Promptly after the execution by the Company, of any amendment pursuant to the provisions of this Section 4.1, the Company will provide the Principal Seller a summary of such amendment.

Section 4.2    Effect of Amendments.
Upon the execution of any amendment permitted under this ARTICLE IV, this Agreement shall be modified in accordance therewith, such amendment shall form a part of this Agreement for all purposes and the Holders and the Company shall be bound thereby.

ARTICLE V
CONSOLIDATION, MERGER, SALE OR CONVEYANCE

Section 5.1    Company Consolidation, Merger, Sale or Conveyance.
(a)    From and after the date hereof until such time as all of the Company's payment obligations shall have been discharged, the Company shall not consolidate with or merge into any other Person or convey, assign, transfer or lease its properties and assets substantially as an entirety to any Person, unless:
(i)    in the case that the Company shall consolidate with or merge into any other Person or convey, assign, transfer or lease its properties and assets substantially as an entirety to any Person, the Person formed by such consolidation or into which the Company is merged or the Person that acquires by conveyance or transfer, or that leases, the properties and assets of the Company substantially as an entirety (the "Surviving Person") shall expressly assume payment of amounts on all the CVRs and the performance of every duty and covenant of this Agreement on the part of the Company to be performed or observed; and

	
			
	 
	 
	 

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(ii)    prior to such transaction, the Company has delivered to the Principal Seller an Officer's Certificate stating that such consolidation, merger, conveyance, transfer or lease complies with this ARTICLE V and that all conditions precedent herein provided for relating to such transaction have been complied with.
(b)    For purposes of this Section 5.1, "convey, transfer or lease its properties and assets substantially as an entirety" shall mean properties and assets contributing in the aggregate of at least 66.66% of the Company's and its subsidiaries' total consolidated revenues as reported in the last available periodic financial report (quarterly or annual, as the case may be).
(c)    In the event the Company conveys, transfers or leases its properties and assets substantially as an entirety in accordance with the terms and conditions of this Section 5.1, the Company and the Surviving Person shall be jointly and severally liable for the payment of the Aggregate CVR Payment Amount, if any, and the performance of every duty and covenant of this Agreement on the part of the Company to be performed or observed.  

Section 5.2    Successor Substituted.
Upon any consolidation of or merger by the Company with or into any other Person, or any conveyance, transfer or lease of the properties and assets substantially as an entirety to any Person in accordance with Section 5.1, the Surviving Person shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Agreement with the same effect as if the Surviving Person had been named as the Company herein; provided, that notwithstanding any such transaction, if the Company is a surviving entity in the transaction, the Company shall also remain liable for the performance by the Company hereunder.

ARTICLE VI
OTHER PROVISIONS OF GENERAL APPLICATION

Section 6.1    Notices to the Company and the Holders.
All communications, notices and disclosures required or permitted by this Agreement shall be in writing and will be deemed to have been given when delivered by first class mail or one (1) Business Day after having been dispatched for next-day delivery by a nationally recognized overnight courier service to the appropriate party at the address specified below: 

	
			
	 
	 
	 

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If to the Company, to:
    	
	
	Keane Group, Inc.

	2121 Sage Road, Suite 370

	Houston, TX 77056

	Attn: General Counsel

with a copy (which shall not constitute notice) to:
    	
	
	Schulte Roth & Zabel LLP

	919 Third Avenue

	New York, NY 10022

	Attention:  Stuart D. Freedman and Antonio L. Diaz-Albertini

	Email:  Stuart.Freedman@srz.com and Antonio.Diaz-Albertini@srz.com

	Facsimile:  (212) 593-5955

If to the Holders, to:
	
	
	RockPile Energy Holdings, LLC

	700 Louisiana, Suite 4770

	Houston, Texas 77002

	Attention: General Counsel

	Facsimile: (713) 581-6901

With copies (which shall not constitute notice) to: 
	
	
	Vinson & Elkins LLP

	666 Fifth Avenue, 26th Floor

	New York, NY 10103

	Attention: Robert Seber, Esq.

	Email:  rseber@velaw.com
Facsimile:  (917) 849-5340

Section 6.2    Counterparts; Headings.
This Agreement may be executed in one or several counterparts (whether by facsimile, pdf or otherwise), each of which shall be deemed an original, but such counterparts shall 

	
			
	 
	 
	 

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together constitute but one and the same Agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties (including by facsimile or other electronic image scan transmission).  The Article and Section headings in this Agreement are inserted for convenience of reference only and shall not constitute a part hereof.

Section 6.3    Assignment; Successors.
Subject to Section 5.1, neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned by any of the parties (whether by operation of Law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by all of the parties and their respective successors and assigns.

Section 6.4    Benefits of Agreement.
Nothing in this Agreement, is intended to or be deemed to confer upon any Person other than the parties hereto and their respective successors and permitted assigns any rights or remedies hereunder. 

Section 6.5    Governing Law.
This Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware, without regard to Laws that may be applicable under conflicts of laws principles (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware.  Each of the parties agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 6.1. Nothing in this Agreement will affect the right of any Party to this Agreement to serve process in any other manner permitted by Law.

Section 6.6    Waiver of Jury Trial.
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY 

	
			
	 
	 
	 

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CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (II) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (III) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.6

Section 6.7    Remedies.
The parties hereto agree that irreparable damage would occur in the event that the parties hereto do not perform their obligations under the provisions of this Agreement (including failing to take such actions as are required of them hereunder) in accordance with its specified terms or otherwise breach such provisions. The parties acknowledge and agree that prior to the termination of this Agreement in accordance with Section 6.9, (a) the Parties shall be entitled to an injunction, specific performance, or other equitable relief, to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof without proof of damages or the posting of any collateral, bond or other security, this being in addition to any other remedy available at law, in equity, under this Agreement or otherwise and (b) the right of injunctive relief, specific enforcement and other equitable relief is an integral part of this Agreement and transactions related hereto. The parties also agree that the non-prevailing party (as determined by a court of competent jurisdiction in a final, non-appealable order) in any litigation relating to the enforcement of this Agreement shall reimburse the prevailing party for all costs incurred by the prevailing party (including reasonable legal fees in connection with any litigation). 

Section 6.8    Severability Clause.
If any term or other provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other terms, provisions and conditions of this Agreement shall nevertheless remain in full force and effect.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end that the transactions contemplated by the Purchase Agreement and this Agreement are fulfilled to the extent possible.

	
			
	 
	 
	 

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Section 6.9    Termination.
This Agreement and each CVR shall be terminated and of no further force or effect, and the parties hereto shall have no liability hereunder, upon the earliest of (i) the Early Termination Date, (ii) the Maturity Date, (iii) the date on which a Principal Seller Change of Ownership  occurs and (iv) the date on which there is a written agreement between the Company and the Principal Seller to terminate this Agreement.

Section 6.10    Entire Agreement.
This Agreement, the Purchase Agreement, all documents and instruments referenced herein and therein, and the annex attached to the foregoing, constitute the entire agreement of the parties and supersede all other prior agreements and understandings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof and thereof.  If and to the extent that any provision of this Agreement is inconsistent or conflicts with the Purchase Agreement, this Agreement shall govern and be controlling.  
[Remainder of Page Intentionally Left Blank]

	
			
	 
	 
	 

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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its duly authorized officers as of the day and year first above written.

	
				
	 
	COMPANY:

	 
	 

	 
	KEANE GROUP, INC.

	 
	 

	 
	 

	 
	By:
	/s/ Gregory L. Powell

	 
	Name:
	Gregory L. Powell

	 
	Title:
	President and Chief Financial Officer

[Signature Page to Keane Group Contingent Value Rights Agreement]

 

	
				
	 
	PRINCIPAL SELLER:

	 
	 

	 
	ROCKPILE ENERGY HOLDINGS, LLC

	 
	 

	 
	By:
	/s/ Dustin M. Nygard

	 
	Name:
	Dustin M. Nygard

	 
	Title:
	General Counsel

	
				
	 
	PERMITTED HOLDERS:

	 
	 

	 
	WDE RockPile Aggregate, LLC

	 
	 

	 
	By:  Edelman & Guill Energy L.P. II, its Manager

	 
	By:  Edelman & Guill Energy Ltd., its General

	 
	Partner

	 
	 

	 
	By:
	/s/ James K. McNeely III

	 
	Name:
	James K. McNeely III

	 
	Title:
	Authorized Representative

	 
	Address:
	700 Louisiana Street, Suite 4770

	 
	 
	 
	Houston, Texas 77002

	
				
	 
	/s/ Paul J. Able, Jr.

	 
	Name:
	Paul J. Able, Jr.

	 
	Address:
	6735 Olympus Drive

	 
	 
	 
	Evergreen, Colorado 80439

	
				
	 
	/s/ Robert Curt Dacar

	 
	Name:
	Robert Curt Dacar

	 
	Address:
	20042 Ridgefield Loop

	 
	 
	Spearfish, South Dakota 57783

	
				
	 
	/s/ Paul George

	 
	Name:
	Paul George

	 
	Address:
	915 S. Milwaukee Way

	 
	 
	Denver, Colorado 80209

	
				
	 
	/s/ Howard Rough

	 
	Name:
	Howard Rough

	 
	Address:
	1662 Montane Drive East

	 
	 
	Golden, Colorado 80401

	
				
	 
	/s/ David Sobernheim

	 
	Name:
	David Sobernheim

	 
	Address:
	5575 S. Forest Lane

	 
	 
	Greenwood Village, Colorado 80121

[Signature Page to Keane Group Contingent Value Rights Agreement]

 

Annex A

Payment Instructions

[To Be Provided Under Separate Cover]

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