Document:

Exhibit 10.3

 

February 13, 2009

 

[Name
of Executive]

BankGreenville
Financial Corporation

499
Woodruff Road

Greenville,
South Carolina 29607

 

Dear                            ,

 

BankGreenville
Financial Corporation (the “Company”) anticipates entering into a Securities
Purchase Agreement (the “Participation Agreement”) with the United States
Department of Treasury (the “Treasury”) that provides, among other things, for
the purchase by the Treasury of securities issued by the Company. This purchase
is anticipated to occur as part of the Company’s participation in the Treasury’s
Troubled Asset Relief Program - Capital Purchase Program (the “CPP”).

 

As
a condition to the closing of the investment contemplated by the Participation
Agreement, the Company is required to take certain actions with respect to
compensation arrangements of its senior executive officers. The Company has
determined that you are or may be a senior executive officer for purposes of
the CPP. To comply with the requirements of the CPP, and in consideration of
the benefits that you will receive as a result of the Company’s participation
in the CPP and for other good and valuable consideration, the sufficiency of
which you hereby acknowledge, you agree as follows:

 

(1)           No Golden Parachute Payments. You will not be
entitled to receive from the Company any golden parachute payment (as defined
below) during any period in which the Treasury holds an equity or debt position
acquired from the Company in the CPP (the “CPP Covered Period”) (or during the year
following any acquisition of the Company, to the extent required by the CPP
Limitations (as defined below)).

 

(2)           Recovery of Bonus and Incentive Compensation.
You will be required to and shall return to the Company any bonus or incentive
compensation to which you receive a legally binding right to payment during the
CPP Covered Period (whether or not paid during the CPP Covered Period) if such
bonus or incentive compensation is paid to you by the Company based on
materially inaccurate financial statements or any other materially inaccurate
performance metric criteria.

 

(3)           Compensation Program Amendments. Each of the
Company’s compensation, bonus, incentive and other benefit plans, arrangements
and agreements , including your Employment Agreement (all such plans,
arrangements and agreements, the “Benefit Plans”) are hereby amended to the
extent necessary to give effect to provisions (1) and (2) of this
letter.

 

The
Company is also required as a condition to participation in the CPP to review
the Benefit Plans to ensure that the Benefit Plans do not encourage its senior
executive officers to take unnecessary and excessive risks that threaten the
value of the Company. To the extent that the Company determines that the
Benefit Plans must be revised as a result of such review, or determines that
the Benefit Plans

 

 

must
otherwise be revised to comply with Section 111(b) of the EESA (as
defined below) as implemented by any guidance or regulation thereunder that has
been issued and is in effect as of the closing date of the Company’s issuance
of preferred stock and warrants to acquire common stock to the Treasury
pursuant to the CPP (the “CPP Limitations”), you and the Company agree to
negotiate and effect such changes promptly and in good faith.

 

(4)                                  Definitions and Interpretation. This letter
shall be interpreted as follows:

 

·                  “Senior executive officer” means the Company’s
“senior executive officers” as defined in Q&A 2 of the Interim Final Rule issued
by the Treasury at 31 CFR Part 30, effective on October 20, 2008, as
amended and clarified on January 16, 2009 (the “Interim Final Rule”).

 

·                  “Golden parachute payment” shall have the
meaning set forth in Q&A 9 of the Interim Final Rule.

 

·                  The term “Company” includes any entities
treated as a single employer with the Company under Q&A 1 and Q&A 11 of
the Interim Final Rule.

 

·                  This letter is intended to, and shall be
interpreted, administered and construed to comply with Section 111 of the
Emergency Economic Stabilization Act of 2008 (the “EESA”) and the regulations
and guidance promulgated thereunder (and, to the maximum extent consistent with
the preceding, to permit operation of the Benefit Plans in accordance with
their terms before giving effect to this letter).

 

(5)                                  Miscellaneous. To the extent not subject to
federal law, this letter will be governed by and construed in accordance with
the laws of the State of South Carolina. This letter may be executed in two or
more counterparts, each of which will be deemed to be an original. A signature
transmitted by facsimile will be deemed an original signature.

 

(6)                                  If the Treasury does not purchase the
securities contemplated by the Participation Agreement, then this letter shall
be of no force or effect. In addition, upon such time as the Treasury no longer
holds securities or debt of the Company acquired under the CPP, this letter shall
be of no further force or effect, except to the extent required by the CPP
Limitations. If you cease to be a senior executive officer of the Company for
purposes of the CPP, you shall be released from the restrictions and
obligations set forth in this letter to the extent permissible under the CPP.
If it is determined that you are not a senior executive officer of the Company
as of the date hereof, this letter shall be of no force or effect.

 

The
Company appreciates the concessions you are making and looks forward to your
continued leadership during these financially turbulent times.

 

[Signature page follows]

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  BANKGREENVILLE
  FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Russel
  T. Williams

  
	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
				

 

 

Intending
to be legally bound, I agree with and accept the  foregoing terms on the date set forth below.

 

	
  By:

  	
   

  	
   

  
	
   

  
	
  Name:
  [Name of Executive]

  
	
  Title:

  
	
  Date:
   February 13, 2009EXHIBIT 10.3.9

 

***PORTIONS OF THIS EXHIBIT MARKED BY
BRACKETS (“[***]”) OR OTHERWISE INDICATED HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT.  THE
OMITTED PORTIONS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.***

 

AMENDMENT NO. 1 TO LICENSE
AGREEMENT

 

        This
Amendment No. 1 to License Agreement (this “Amendment”), effective as of
the date of the last signature (the “Amendment Effective Date”), amends that
certain License Agreement dated May 27, 2008 (the “Agreement”) between
Callaway Golf Company (“Callaway Golf’) and Sport Haley, Inc. (“Licensee”).
Callaway Golf and Licensee are sometimes hereinafter together referred to as
the “Parties”.

 

        The
Parties desire to amend the Agreement to (1) amend Section 1.1 concerning
exclusivity; (2) amend Section 1.9 concerning sole dealings; (3) amend
the Term; (4) add TOUR EDITION as a Licensed Trademark; and (5) adjust
Minimum Annual Royalties. Therefore, for good and valuable consideration,
receipt of which is acknowledged, the Parties agree as follows:

 

        1.         Amendment Concerning Exclusivity.
Section 1.1 of the Agreement is amended by deleting it in its entirety and
replacing it with the following:

 

        “1.1     Grant of Non-Exclusive License. For
the term of this Agreement and subject to the other terms and conditions of
this Agreement, Callaway Golf hereby grants to Licensee a non-exclusive in the
Territory (hereafter defined), non-transferable, non-assignable, terminable (in
accordance with the terms of this Agreement), royalty-bearing right and license
to use the Licensed Trademarks (hereafter defined) solely in connection with
developing, manufacturing, marketing and distributing the Licensed Products
(hereafter defined) only in the Authorized Distribution Channels (hereafter defined)
throughout the Territory. Callaway Golf reserves the right to use and/or
license others to use the Licensed Trademarks in the Territory on any products
including, without limitation, any products listed as Licensed Products herein.
Callaway Golf represents and warrants that it has the full rights, ownership
and power to grant a non-exclusive license to Licensee to use the Licensed
Trademarks and to develop, manufacture, market and distribute the Licensed
Products in the Territory.”

 

        In
addition to the above, nothing in the Agreement including, without limitation,
use of the term “Exclusive Products” anywhere in the Agreement or any Exhibits,
shall be construed to grant Licensee an exclusive license or any exclusive
rights with respect to the Licensed Trademarks from and after the Amendment
Effective Date, it being understood and agreed that the Agreement and Licensee’s
license and rights under it shall be and remain non-exclusive for the duration
of the Term.

 

        2.         Amendment Concerning Sole Dealings.
Section 1.9 of the Agreement is amended by deleting it in its entirety and
replacing it with the following:

 

        “1.9     Sole Dealings. Subject to the
provisions of Section 4.2 hereof, Licensee agrees that it will not enter
into any agreement or arrangement with any competitors of Callaway Golf to
develop, market, and/or sell Golf-Related Products bearing the marks of
Licensee and a competitor without the prior written consent of Callaway Golf in
each instance.”

 

        3.         Amendment to Term. Section 8.1
of the Agreement is amended by deleting it in its entirety and replacing it
with the following:

 

        “8.1     Term. Unless sooner terminated in
accordance with the terms of this Agreement, this Agreement shall commence on
the Effective Date and shall continue in effect until December 31, 2013
(the “Term”).  Upon expiration of the
Term, this Agreement shall expire. Notwithstanding the foregoing, Callaway Golf
shall have the right, at any time, for any reason, or for no reason whatsoever,
to sooner terminate this Agreement by giving Licensee sixty (60) days advance
written notice to that effect. The parties acknowledge that upon termination or
expiration of this Agreement (whether prior to, or upon expiration of, the
Term, or at any other time), Callaway Golf shall have no obligation to
reimburse or otherwise pay Licensee any amount in connection with, or as a
result of, such termination or expiration.”

 

*** CONFIDENTIAL
TREATMENT REQUESTED ***

 

 

        4.         Addition of Licensed Trademark. Exhibit B
of the Agreement is amended by adding TOUR EDITION as a Licensed Trademark.

 

        5.         Adjustment to Minimum Annual
Royalties. Exhibit F of the Agreement is amended by deleting it in its
entirety and replacing it with the following:

 

	
  Period

  	
   

  	
  Minimum
  Annual

  Royalties (US$)

  
	
  2008

  	
   

  	
  $

  	
  [***]

  
	
  2009

  	
   

  	
  $

  	
  [***]

  
	
  2010

  	
   

  	
  $

  	
  [***]

  
	
  2011

  	
   

  	
  $

  	
  [***]

  
	
  2012

  	
   

  	
  $

  	
  [***]

  
	
  2013

  	
   

  	
  $

  	
  [***]

  

 

 

        6.         Miscellaneous. All terms and
conditions of the Agreement that have not been amended by this Amendment shall
remain unchanged and shall continue in full force and effect. All initially
capitalized terms used, but not defined, in this Amendment, have the meanings
assigned to them in the Agreement.

 

        IN
WITNESS WHEREOF, the Parties have caused this Amendment to be signed on the
dates indicated below, to be effective as of the Amendment Effective Date.

 

	
  SPORT HALEY, INC.

  	
   

  	
  CALLAWAY GOLF COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LEGAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/paa

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Donald W. Jewell

  	
   

  	
  By:

  	
  /s/ Steven C. McCracken

  
	
  Donald W. Jewell

  	
   

  	
  Steven C. McCracken

  	
   

  
	
  President and Chief Executive Officer

  	
   

  	
  Senior Executive Vice President and

  	
   

  
	
   

  	
   

  	
  Chief Administrative Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date Signed: February 17, 2009

  	
   

  	
  Date Signed: February 18, 2009

  	
   

  
							

 

*** CONFIDENTIAL TREATMENT REQUESTED ***

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