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Exhibit 10.2  

 
 

EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT (this "Agreement") dated as of July 1, 2005, is made by and between BankGreenville Financial Corporation, a South Carolina
corporation (the "Employer" or "Company"), which will be the holding company for BankGreenville (Proposed), a proposed South Carolina state bank (the "Bank"), and Paula S. King, an individual
resident of South Carolina (the "Executive"). 

        The
Employer is in the process of organizing the Bank, and the Executive has agreed to serve as Executive Vice President and Chief Financial Officer of the Bank and the Company. Upon
completion of the organization of the Bank, the Bank will automatically become a party to this Agreement, and all references to the term "Employer" as used herein shall refer to the Company and the
Bank. 

        The
Employer recognizes that the Executive's contribution to the growth and success of the Bank during its organization and initial years of operations will be a significant factor in
the success of the Bank. The Employer desires to provide for the employment of the Executive in a manner which will reinforce and encourage the dedication of the Executive to the Bank and promote the
best interests of the Bank and its shareholders. The Executive is willing to serve the Employer on the terms and conditions herein provided. Certain terms used in this Agreement are defined in
Section 17 hereof. 

        This
Agreement will be submitted to the FDIC and the South Carolina Board of Financial Institutions in connection with the regulatory applications related to the formation of the Bank.
The parties hereto agree to any amendments to this Agreement as may be required in connection with obtaining such regulatory approvals. 

        In
consideration of the foregoing, the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows: 

        1.    Employment.    The Employer shall employ the Executive, and the Executive shall serve the Employer, as Executive
Vice President and Chief Financial Officer of the Bank and as Executive Vice President and Chief Financial Officer of the Company upon the terms and conditions set forth herein. The Executive shall
also serve on the Board of Directors of the Company and the Bank. The Executive shall have such authority and responsibilities consistent with her position as are set forth in the Company's or the
Bank's Bylaws or assigned by the Company's or the Bank's Board of Directors (collectively, the "Board") from time to time. The Executive shall devote her full business time, attention, skill and
efforts to the performance of her duties hereunder, except during periods of illness or periods of vacation and leaves of absence consistent with Bank policy. The Executive may devote reasonable
periods to service as a director or advisor to other organizations, to charitable and community activities, and to managing her personal investments,  provided that such activities do not materially
interfere with the performance of her duties hereunder and are not in conflict or competitive with, or
adverse to, the interests of the Company or the Bank. Any association with financial-related entities or organizations must have prior approval from the Board of Directors. 

        2.    Term.    Unless earlier terminated as provided herein, the Executive's employment under this Agreement shall
commence on the date hereof and be for a term of three (3) years (the "Initial Term"). The employment shall be extended for additional terms of one (1) year each ("Additional Term")
unless a Notice of Termination shall be delivered by Employer to Executive not less than six (6) months prior to the end of the Initial Term or six (6) months prior to the end of any
Additional Term, if applicable. Notwithstanding the foregoing, the Term of employment hereunder will end on the date that the Executive attains the retirement age, if any, specified in the Bylaws of
the Bank or by the Directors of the Bank. 

 

        3.    Compensation and Benefits.    

        (a)   Starting
July 1, 2005, the Employer shall pay the Executive an initial annual base salary of $93,000. Beginning on the Opening Date of the Bank, the Company shall
increase the Executive's annual base salary to $106,000. Prior to the date the Bank opens for business to the public (the "Opening Date"), the salary will be paid monthly. Following the Opening Date,
the salary will be paid in accordance with the Bank's standard payroll procedures. Beginning January 1, 2007, the Board (or an appropriate committee of the Board) shall review the Executive's
performance and salary at least annually and may increase, but not decrease, the Executive's base salary if it determines in its sole discretion that an increase is appropriate. 

        (b)   Beginning
in the year of the Opening Date of the Bank, the Executive shall be eligible each year to receive a cash bonus equaling up to 45% of her annual salary if the
Bank achieves certain performance levels established by the board of directors from time to time, with such bonus to be paid no later than March 31st of the following calendar
year. 

        (c)   The
Executive shall participate in the Employer's long-term equity incentive program and be eligible for the grant of stock options, restricted stock, and
other awards thereunder or under any similar plan adopted by the Employer. As soon as an appropriate stock option plan is adopted by the Board, the Company shall grant to the Executive an option to
purchase a number of shares of Common Stock equal to 4% of the number of shares actually sold in the offering. The award agreement for the stock option shall provide that one-third of the
shares subject to the option will vest on each of the first three anniversaries of the Opening Date, but only if the Executive remains employed by the Company or one of its subsidiaries on such date,
and shall contain other customary terms and conditions. Nothing herein shall be deemed to preclude the granting to the Executive of warrants or options under a director or employee option plan in
addition to the options granted hereunder. The exercise price of the options will be equal to the fair market value of the stock on the date of grant. 

        (d)   The
Executive shall participate in all retirement, welfare and other benefit plans or programs of the Employer now or hereafter applicable generally to employees of the
Employer or to a class of employees that includes senior executives of the Employer. The Employer shall pay 100% of the Executive's premiums for such plans or programs and shall pay dependent premiums
in accordance with the plans and programs offered to employees of the Employer. The Executive shall also be paid directors' fees in the same amount as outside directors at such time that the Employer
begins paying directors' fees. 

        (e)   The
Employer shall obtain key man insurance on the Executive with a term life insurance policy providing for death benefits totaling $500,000 payable to the Employer,
and the Executive shall cooperate with the Employer in the securing and maintenance of such policy. The Employer shall require and pay the cost of an annual physical for the Executive. 

        (f)    Beginning
on the Opening Date of the Bank, the Employer shall pay an automobile allowance of $500 per month to the Executive. 

        (g)   The
Employer shall pay the Executive's annual dues related to her CPA designation. In addition, the Employer shall reimburse the Executive for all reasonable costs
associated with her annual forty hours of continuing professional education requirements necessary to maintain her CPA designation. 

        (h)   The
Employer shall reimburse the Executive for reasonable travel and other expenses related to the Executive's duties, including cell phone expenses, which are incurred
and accounted for in accordance with the normal practices of the Employer. 

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        (i)    The
Employer shall provide the Executive with four weeks' paid vacation per year, which shall be taken in accordance with any banking rules or regulations governing
vacation leave. 

        4.    Termination.    

        (a)   The
Executive's employment under this Agreement may be terminated prior to the end of the Term only as provided in this Section 4. 

        (b)   The
Agreement will be terminated upon the death of the Executive. In this event, the Executive's estate shall receive any sums due her as base salary and/or
reimbursement of expenses through the end of the month during which death occurred, plus any bonus earned or accrued through the date of death (including any amounts awarded for previous years but
which were not yet vested). 

        (c)   The
Employer may terminate this Agreement upon the disability of the Executive for a period of 180 days which, in the opinion of the Board of Directors, renders
her unable to perform the essential functions of her job and for which reasonable accommodation is unavailable. For purposes of this Agreement, a "disability" is defined as a physical or mental
impairment that substantially limits one or more major life activities, and a "reasonable accommodation" is one that does not impose an undue hardship on the Employer. During the period of any
incapacity leading up to the termination of the Executive's employment under this provision, the Employer shall continue to pay the Executive her full base salary at the rate then in effect and all
perquisites and other benefits (other than any bonus) until the Executive becomes eligible for benefits under any long-term disability plan or insurance program maintained by the Employer,
provided that the amount of any such payments to the Executive shall be reduced by the sum of the amounts, if any, payable to the Executive for the same period under any other disability benefit or
pension plan covering the Executive. Furthermore, the Executive shall receive any bonus earned or accrued through the date of incapacity (including any amounts awarded for previous years but which
were not yet vested). 

        (d)   The
Employer may terminate this Agreement for Cause upon delivery of a Notice of Termination to the Executive. If the Executive's employment is terminated for Cause
under this provision, the Executive shall receive only any sums due her as base salary and/or reimbursement of expenses through the date of such termination. 

        (e)   The
Employer may terminate this Agreement without Cause upon delivery of a Notice of Termination to the Executive. If the Executive's employment is terminated without
Cause under this provision, the Employer shall pay to the Executive severance compensation in an amount equal to 100% of her then current monthly base salary each month for 24 months from the
date of termination, plus any bonus earned or accrued through the date of termination (including any amounts awarded for previous years but which were not yet vested). 

        (f)    The
Executive may terminate this Agreement at any time by delivering a 90-day Notice of Termination. If the Executive resigns under this provision, the
Executive shall receive any sums due her as base salary and/or reimbursement of expenses through the date of such termination. 

        (g)   The
Executive may terminate this Agreement for Good Reason upon delivery of a Notice of Termination to the Employer within a 90-day period beginning on the
30th day after the occurrence of a Change in Control or within a 90-day period beginning on the one year anniversary of the occurrence of a Change in Control. If the Executive's employment
is terminated by the Executive pursuant to this provision, in addition to other rights and remedies available in law or equity, the Executive shall be entitled to the following: 

          (i)  the
Employer shall pay the Executive in cash within fifteen days of the date of termination severance compensation in an amount equal to her then current monthly base 

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salary
multiplied by 36, plus any bonus earned or accrued through the date of termination (including any amounts awarded for previous years but which were not yet vested); 

         (ii)  for
a period of three years, the Employer shall at its expense continue on behalf of the Executive and her dependents and beneficiaries the life insurance, disability,
medical, dental, and hospitalization benefits provided (x) to the Executive at any time during the 90-day period prior to the Change in Control or at any time thereafter or
(y) to other similarly situated executives who continue in the employ of the Employer. Such coverage and benefits (including deductibles and costs) shall be no less favorable to the Executive
and her dependents and beneficiaries than the most favorable of such coverages and benefits referred to above. The Employer's obligation hereunder with respect to the foregoing benefits shall be
limited to the extent that the Executive obtains any such benefits pursuant to a subsequent employer's benefit plans, in which case the Employer may reduce the coverage of any benefits it is required
to provide the Executive hereunder as long as the aggregate coverages and benefits of the combined benefit plans is no less favorable to the Executive than the coverages and benefits required to be
provided hereunder. This subsection (ii) shall not be interpreted so as to limit any benefits to which the Executive or her dependents or beneficiaries may be entitled under any of the
Employer's employee benefit plans, programs, or practices following the Executive's termination of employment, including, without limitation, retiree medical and life insurance benefits; and 

        (iii)  the
restrictions on any outstanding incentive awards (including restricted stock) granted to the Executive under the Company's or the Bank's long-term
equity incentive program or any other incentive plan or arrangement shall lapse and such awards shall become 100% vested, all stock options and stock appreciation rights granted to the Executive shall
become immediately exercisable and shall become 100% vested, all performance units granted to the Executive shall become 100% vested, and the restrictive covenants contained in Section 9 shall
not apply to the Executive. 

        (h)   The
Employer may terminate this Agreement if its effort to organize the Bank is abandoned, or if the Company or the Bank receives notice or otherwise has reason to
believe that it will not receive approval of any bank regulatory application in connection with the formation of the Bank and the Board determines in good faith that the Executive's actions,
inactions, lack of experience, or background was a material factor in the failure to obtain such approval. Notwithstanding any other provision in this Agreement, if the Executive's employment is
terminated under this provision, the Employer shall not be obligated to pay any amounts to the Executive. 

        (i)    With
the exceptions of the provisions of this Section 4, and the express terms of any benefit plan under which the Executive is a participant, it is agreed that,
upon termination of the Executive's employment, the Employer shall have no obligation to the Executive for, and the Executive waives and relinquishes, any further compensation or benefits (exclusive
of COBRA benefits). Unless otherwise stated in this Section 4, the effect of termination on any outstanding incentive awards, stock options, stock appreciation rights, performance units, or
other incentives shall be governed by the terms of the applicable benefit or incentive plan and/or the agreements governing such incentives. At the time of termination of employment, the Employer and
the Executive shall enter into a mutually satisfactory form of release acknowledging such remaining obligations and discharging both parties, as well as the Employer's officers, directors and
employees with respect to their actions for or on behalf of the Employer, from any other claims or obligations arising out of or in connection with the Executive's employment by the Employer,
including the circumstances of such termination. 

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        (j)    In
the event that the Executive's employment is terminated for any reason, the Executive shall tender her resignation as a director of the Company and the Bank and
effective as of the date of termination. 

        (k)   The
parties intend that the severance payments and other compensation provided for herein are reasonable compensation for the Executive's services to the Employer and
shall not constitute "excess parachute payments" within the meaning of Section 280G of the Internal Revenue Code of 1986 and any regulations thereunder. In the event that the Employer's
independent accountants acting as auditors for the Employer on the date of a Change in Control determine that the payments provided for herein constitute "excess parachute payments," then the
compensation payable hereunder shall be reduced to an amount the value of which is $1.00 less than the maximum amount that could be paid to the Executive without the compensation being treated as
"excess parachute payments" under Section 280G. The allocations of the reduction required hereby among the termination benefits payable
to the Executive shall be determined by the Executive. In the event that the Bank becomes in troubled condition, any severance payment will be in conformance with federal and state regulating
guidelines. 

        5.    Ownership of Work Product.    The Employer shall own all Work Product arising during the course of the
Executive's employment (prior, present or future). For purposes hereof, "Work Product" shall mean all intellectual property rights, including all Trade Secrets, U.S. and international copyrights,
patentable inventions, and other intellectual property rights in any programming, documentation, technology or other work product that relates to the Employer, its business or its customers and that
the Executive conceives, develops, or delivers to the Employer at any time during her employment, during or outside normal working hours, in or away from the facilities of the Employer, and whether or
not requested by the Employer. If the Work Product contains any materials, programming or intellectual property rights that the Executive conceived or developed prior to, and independent of, the
Executive's work for the Employer, the Executive agrees to point out the pre-existing items to the Employer and the Executive grants the Employer a worldwide, unrestricted,
royalty-free right, including the right to sublicense such items. The Executive agrees to take such actions and execute such further acknowledgments and assignments as the Employer may
reasonably request to give effect to this provision. 

        6.    Protection of Trade Secrets.    The Executive agrees to maintain in strict confidence and, except as necessary
to perform her duties for the Employer, the Executive agrees not to use or disclose any Trade Secrets of the Employer during or after her employment. "Trade Secret" means information, including a
formula, pattern, compilation, program, device, method, technique, process, drawing, cost data or customer list, that: (i) derives economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable
under the circumstances to maintain its secrecy. 

        7.    Protection of Other Confidential Information.    In addition, the Executive agrees to maintain in strict
confidence and, except as necessary to perform her duties for the Employer, not to use or disclose any Confidential Business Information of the Employer during her employment and for a period of
24 months following termination of the Executive's employment. "Confidential Business Information" shall mean any internal, non-public information (other than Trade Secrets already
addressed above) concerning the Employer's financial position and results of operations (including revenues, assets, net income, etc.); annual and long-range business plans; product or
service plans; marketing plans and methods; training, educational and administrative manuals; customer and supplier information and purchase histories; and employee lists. The provisions of Sections 6
and 7 shall also apply to protect Trade Secrets and Confidential Business Information of third parties provided to the Employer under an obligation of secrecy. 

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        8.    Return of Materials.    The Executive shall surrender to the Employer, promptly upon its request and in any
event upon termination of the Executive's employment, all media, documents, notebooks, computer programs, handbooks, data files, models, samples, price lists, drawings, customer lists, prospect data,
or other material of any nature whatsoever (in tangible or electronic form) in the Executive's possession or control, including all copies thereof, relating to the Employer, its business, or its
customers. Upon the request of the Employer, the Executive shall certify in writing compliance with the foregoing requirement. 

        9.    Restrictive Covenants.    

        (a)   No Solicitation of Customers.    During the Executive's employment with the Employer and for a period of
24 months thereafter, the Executive shall not (except on behalf of or with the prior written consent of the Employer), either directly or indirectly, on the Executive's own behalf or in the
service or on behalf of others, (A) solicit, divert, or appropriate to or for a Competing Business, or (B) attempt to solicit, divert, or appropriate to or for a Competing Business, any
person or entity that is or was a customer of the Employer or any of its Affiliates at any time during the 12 months prior to the date of termination. 

        (b)   No Recruitment of Personnel.    During the Executive's employment with the Employer and for a period of
24 months thereafter, the Executive shall not, either directly or indirectly, on the Executive's own behalf or in the service or on behalf of others, (A) solicit, divert, or hire away,
or (B) attempt to solicit, divert, or hire away, to any Competing Business located in the Territory, any employee of or consultant to the Employer or any of its Affiliates, regardless of
whether the employee or consultant is full-time or temporary, the employment or engagement is pursuant to written agreement, or the employment is for a determined period or is at will. 

        (c)   Non-Competition Agreement.    During the Executive's employment with the Employer and for a period
of 24 months thereafter, the Executive shall not (without the prior written consent of the Employer) compete with the Employer or any of its Affiliates by, directly or indirectly, forming,
serving as an organizer, director or officer of, or consultant to, or acquiring or maintaining more than a 1% passive investment in, a depository financial institution or holding company therefore if
such depository institution or holding company has one or more offices or branches located in the Territory. Notwithstanding the foregoing, the Executive may serve as an officer of or consultant to a
depository institution or holding company therefore even though such institution operates one or more offices or branches in the Territory, if the Executive's employment does not directly involve, in
whole or in part, the depository financial institution's or holding company's operations in the Territory. 

        10.    Independent Provisions.    The provisions in each of the above Sections 9(a), 9(b), and 9(c) are independent,
and the unenforceability of any one provision shall not affect the enforceability of any other provision. 

        11.    Successors; Binding Agreement.    The rights and obligations of this Agreement shall bind and inure to the
benefit of the surviving corporation in any merger or consolidation in which the Employer is a party, or any assignee of all or substantially all of the Employer's business and properties. The
Executive's rights and obligations under this Agreement may not be assigned by her, except that her right to receive accrued but unpaid compensation, unreimbursed expenses and other rights, if any,
provided under this Agreement which survive termination of this Agreement shall pass after death to the personal representatives of her estate. 

        12.    Notice.    For the purposes of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective
addresses last given by each party to the other; provided, however, that all notices to the 

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Employer
shall be directed to the attention of the Employer with a copy to the Secretary of the Employer. All notices and communications shall be deemed to have been received on the date of delivery
thereof. 

        13.    Governing Law.    This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of South Carolina without giving effect to the conflict of laws principles thereof. Any action brought by any party to this Agreement shall be brought and maintained in a court of competent
jurisdiction in State of South Carolina. 

        14.    Non-Waiver.    Failure of the Employer to enforce any of the provisions of this Agreement or any
rights with respect thereto shall in no way be considered to be a waiver of such provisions or rights, or in any way affect the validity of this Agreement. 

        15.    Enforcement.    The Executive agrees that in the event of any breach or threatened breach by the Executive of
any covenant contained in Section 9(a), 9(b), or 9(c) hereof, the resulting injuries to the Employer would be difficult or impossible to estimate accurately, even though irreparable injury or
damages would certainly result. Accordingly, an award of legal damages, if without other relief, would be inadequate to protect the Employer. The Executive, therefore, agrees that in the event of any
such breach, the Employer shall be entitled to obtain from a court of competent jurisdiction an injunction to restrain the breach or anticipated breach of any such covenant, and to obtain any other
available legal, equitable, statutory, or contractual relief. Should the Employer have cause to seek such relief, no bond
shall be required from the Employer, and the Executive shall pay all attorney's fees and court costs which the Employer may incur to the extent the Employer prevails in its enforcement action. 

        16.    Saving Clause.    The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision or clause of this Agreement, or portion thereof, shall be held by any
court or other tribunal of competent jurisdiction to be illegal, void, or unenforceable in such jurisdiction, the remainder of such provision shall not be thereby affected and shall be given full
effect, without regard to the invalid portion. It is the intention of the parties that, if any court construes any provision or clause of this Agreement, or any portion thereof, to be illegal, void,
or unenforceable because of the duration of such provision or the area or matter covered thereby, such court shall reduce the duration, area, or matter of such provision, and, in its reduced form,
such provision shall then be enforceable and shall be enforced. The Executive and the Employer hereby agree that they will negotiate in good faith to amend this Agreement from time to time to modify
the terms of Sections 9(a), 9(b), and 9(c), the definition of the term "Territory," and the definition of the term "Business," to reflect changes in the Employer's business and affairs so that the
scope of the limitations placed on the Executive's activities by Section 9 accomplishes the parties' intent in relation to the then current facts and circumstances. Any such amendment shall be
effective only when completed in writing and signed by the Executive and the Employer. 

        17.    Certain Definitions.    

        (a)   "Affiliate" shall mean any business entity controlled by, controlling or under common control with the Employer. 

        (b)   "Business" shall mean the operation of a depository financial institution, including, without limitation, the
solicitation and acceptance of deposits of money and commercial paper, the solicitation and funding of loans and the provision of other banking services, and any other related business engaged in by
the Employer or any of its Affiliates as of the date of termination. 

        (c)   "Cause" shall consist of any of (A) the commission by the Executive of a willful act (including, without
limitation, a dishonest or fraudulent act) or a grossly negligent act, or the willful or grossly negligent omission to act by the Executive, which is intended to cause, causes or is reasonably likely
to cause material harm to the Employer (including harm to its business 

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reputation),
(B) the indictment of the Executive for the commission or perpetration by the Executive of any felony or any crime involving dishonesty, moral turpitude or fraud, (C) the
material breach by the Executive of this Agreement that, if susceptible of cure, remains uncured ten days following written notice to the Executive of such breach, (D) the receipt of any form
of notice, written or otherwise, that any regulatory agency having jurisdiction over the Employer intends to institute any form of formal or informal
(e.g., a memorandum of understanding which relates to the Executive's performance) regulatory action against the Executive or the Employer
(provided that the Board of Directors determines in good faith, with the Executive abstaining from participating in the consideration of and vote on the
matter, that the subject matter of such action involves acts or omissions by or under the supervision of the Executive or that termination of the Executive would materially advance the Employer's
compliance with the purpose of the action or would materially assist the Employer in avoiding or reducing the restrictions or adverse effects to the Employer related to the regulatory action);
(E) the exhibition by the Executive of a standard of behavior within the scope of her employment that is materially disruptive to the orderly conduct of the Employer's business operations
(including, without limitation, substance abuse or sexual misconduct) to a level which, in the Board of Directors' good faith and reasonable judgment, with the Executive abstaining from participating
in the consideration of and vote on the matter, is materially detrimental to the Employer's best interest, that, if susceptible of cure remains uncured ten days following written notice to the
Executive of such specific inappropriate behavior; or (F) the failure of the Executive to devote her full business time and attention to her employment as provided under this Agreement that, if
susceptible of cure, remains uncured 30 days following written notice to the Executive of such failure. In order for the Board of Directors to make a determination that termination shall be for
Cause, the Board must provide the Executive with an opportunity to meet with the Board in person. 

        (d)   "Change in Control" shall mean the occurrence during the Term of any of the following events, unless such event is a
result of a Non-Control Transaction: 

          (i)  The
individuals who, as of the date of this Agreement, are members of the Board of Directors of the Company (the "Incumbent Board") cease for any reason to constitute
at least 50% of the Board of Directors of the Company; provided, however, that if the election, or
nomination for election by the Company's shareholders, of any new director was approved in advance by a vote of at least 50% of the Incumbent Board, such new director shall, for purposes of this
Agreement, be considered as a member of the Incumbent Board; provided, further, that no individual shall
be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened election contest, or other actual or threatened solicitation of
proxies or consents by or on behalf of any person other than the Board of Directors of the Company, including by reason of any agreement intended to avoid or settle any election contest or proxy
contest. 

         (ii)  An
acquisition (other than directly from the Company) of any voting securities of the Company (the "Voting Securities") by any "Person" (as the term "person" is used
for purposes of Section 13(d) or 14(d) of the Exchange Act) immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of 20% or more of the combined voting power of the Company's then outstanding Voting Securities; provided,  however, that in determining
whether a Change in Control has occurred, Voting Securities which are acquired in a Non-Control Acquisition
shall not constitute an acquisition which would cause a Change in Control. 

        (iii)  Consummation
of: (i) a merger, consolidation, or reorganization involving the Company; (ii) a complete liquidation or dissolution of the Company; or
(iii) the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary). 

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        (iv)  A
notice of an application is filed with the South Carolina Board of Financial Institutions or the Federal Reserve Board or any other bank or thrift regulatory approval
(or notice of no disapproval) is granted by the Federal Reserve, South Carolina Board of Financial Institutions, the OCC, the Federal Deposit Insurance Corporation, or any other regulatory authority
for permission to acquire control of the Company or any of its banking subsidiaries; provided that if the application is filed in connection with a transaction which has been approved by the Board,
then the Change in Control shall not be deemed to occur until consummation of the transaction. 

        (e)   "Competing Business" shall mean any business that, in whole or in part, is the same or substantially the same as the
Business. 

        (f)    "Good Reason" shall mean the occurrence after a Change in Control of any of the events or conditions described in
subsections (i) through (viii) hereof: 

          (i)  a
change in the Executive's status, title, position or responsibilities (including reporting responsibilities) which, in the Executive's reasonable judgment, represents
an adverse change from her status, title, position or responsibilities as in effect at any time within ninety days preceding the date of a Change in Control or at any time thereafter; the assignment
to the Executive of any duties or responsibilities which, in the Executive's reasonable judgment, are inconsistent with her status, title, position or responsibilities as in effect at any time within
ninety days preceding the date of a Change in Control or at any time thereafter; any removal of the Executive from or failure to reappoint or reelect him to any of such offices or positions, except in
connection with the termination of her employment for Disability or Cause, as a result of her death, or by the Executive other than for Good Reason, or any other change in condition or circumstances
that in the Executive's reasonable judgment makes it materially more difficult for the Executive to carry out the duties and responsibilities of her office than
existed at any time within ninety days preceding the date of Change in Control or at any time thereafter; 

         (ii)  a
reduction in the Executive's base salary or any failure to pay the Executive any compensation or benefits to which he is entitled within five days of the date due; 

        (iii)  the
Employer's requiring the Executive to be based at any place outside a 30-mile radius from the executive offices occupied by the Executive immediately
prior to the Change in Control, except for reasonably required travel on the Employer's business which is not materially greater than such travel requirements prior to the Change in Control; 

        (iv)  the
failure by the Employer to (A) continue in effect (without reduction in benefit level and/or reward opportunities) any material compensation or employee
benefit plan in which the Executive was participating at any time within ninety days preceding the date of a Change in Control or at any time thereafter, unless such plan is replaced with a plan that
provides substantially equivalent compensation or benefits to the Executive, or (B) provide the Executive with compensation and benefits, in the aggregate, at least equal (in terms of benefit
levels and/or reward opportunities) to those provided for under each other employee benefit plan, program and practice in which the Executive was participating at any time within ninety days preceding
the date of a Change in Control or at any time thereafter; 

         (v)  the
insolvency or the filing (by any party, including the Company or the Bank) of a petition for bankruptcy of the Company or the Bank, which petition is not dismissed
within sixty days; 

        (vi)  any
material breach by the Employer of any material provision of this Agreement; 

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       (vii)  any
purported termination of the Executive's employment for Cause by the Employer which does not comply with the terms of this Agreement; or 

      (viii)  the
failure of the Employer to obtain an agreement, satisfactory to the Executive, from any successor or assign to assume and agree to perform this Agreement, as
contemplated in Section 11 hereof. 

        Any
event or condition described in clause (i) through (viii) above which occurs prior to a Change in Control but which the Executive reasonably demonstrates (A) was
at the request of a third party, or (B) otherwise arose in connection with, or in anticipation of, a Change in Control which actually occurs, shall constitute Good Reason for purposes of this
Agreement, notwithstanding that it occurred prior to the Change in Control. The Executive's right to terminate her employment for Good Reason shall not be affected by her incapacity due to physical or
mental illness. 

        (g)   "Non-Control Transaction" shall mean a transaction described below: 

          (i)  the
shareholders of the Company, immediately before such merger, consolidation or reorganization, own, directly or indirectly, immediately following such merger,
consolidation or reorganization, at least 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such merger, consolidation or reorganization (the
"Surviving Corporation") in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation or reorganization; and 

         (ii)  immediately
following such merger, consolidation or reorganization, the number of directors on the board of directors of the Surviving Corporation who were members of
the Incumbent Board shall at least equal the number of directors who were affiliated with or appointed by the other party to the merger, consolidation or reorganization. 

        (h)   "Territory" shall mean a radius of 25 miles from (i) the main office of the Employer or (ii) any branch
office of the Employer. 

        (i)    "Notice of Termination" shall mean a written notice of termination from the Employer or the Executive which specifies an
effective date of termination, indicates the specific termination provision in this Agreement relied upon, and, in the case of a termination for Good Reason or for Cause, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated. 

        18.    Entire Agreement.    This Agreement constitutes the entire agreement between the parties hereto and supersedes
all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof. 

        19.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument. 

10

 

        IN
WITNESS WHEREOF, the Employer has caused this Agreement to be executed and its seal to be affixed hereunto by its officers thereunto duly authorized, and the Executive has signed and
sealed this Agreement, effective as of the date first above written. 

	 	 	 	 	BankGreenville Financial Corporation
	

ATTEST:	
 	

 	
 	

 
	

By:	
 	

 	
 	

By:	
 	

/s/  ARTHUR L. HOWSON, JR.      
	 	 	
	 	 	 	

	

Name:	
 	

 	
 	

Name:	
 	

Arthur L. Howson, Jr.
	 	 	
	 	 	 	

	

 	
 	

 	
 	

Title:	
 	

Chairman of the Board
	 	 	 	 	 	 	

	

 	
 	

 	
 	

EXECUTIVE
	

 	
 	

 	
 	

/s/  PAULA S. KING      
 Paula S. King

11

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Exhibit 10.3  

 
 

BANKGREENVILLE FINANCIAL CORPORATION    
    
    STOCK WARRANT AGREEMENT    
    

                        , 2005  

	Warrant Holder:	 	 	 	No. of Shares:	 	 
	 	 	
	 	 	 	

        BankGreenville
Financial Corporation (the "Company"), a South Carolina corporation and the holding company for BankGreenville (proposed) (the "Bank"), hereby grants to the person
identified above as the Warrant Holder warrants (the "Warrants") to purchase the number of shares set forth above, representing three shares of common stock for every four shares of common stock
purchased by the Warrant Holder in the Company's initial public offering (provided that the maximum number of shares which may be covered by this Warrant is 10,000 shares), in consideration of the
financial risk associated with Warrant Holder's investment in the Company during its organizational stage and the time, expertise, and continuing involvement of the Warrant Holder in the management of
the Bank. Such Warrants are granted on the following terms and conditions: 

        1.    Exercise of Warrants.    All of the shares (the "Shares")
subject to the Warrants granted in this Agreement shall be immediately vested. Exercise of the Warrants is subject to the following: 

	(a)
	Exercise Price.    The exercise price (the "Exercise Price") shall be $10.00 per Share, subject to
adjustment pursuant to Section 2 below.

	(b)
	Expiration of Warrant Term.    The Warrants will expire at 5:00 p.m. Eastern Standard Time on the tenth anniversary of
the opening date of the bank (subject to earlier termination in certain circumstances pursuant to Section 5 below), and may not be exercised thereafter (the "Expiration Date").

	(c)
	Payment.    The purchase price for Shares as to which the Warrants are being exercised shall be paid
in cash, by wire transfer, by certified or bank cashier's check, or by personal check drawn on funds on deposit with the Bank.

	(d)
	Method of Exercise.    The Warrants shall be exercisable by a written notice delivered to the Chief
Executive Officer or Secretary of the Company which shall: 

          (i)  State
the owner's election to exercise the Warrants, the number of Shares with respect to which it is being exercised, the person in whose name the stock certificate
for such Shares is to be registered, and such person's address and tax identification number (or, if more than one, the names, addresses and tax identification numbers of such persons); 

         (ii)  Be
signed by the person or persons entitled to exercise the Warrants and, if the Warrants are being exercised by any person or persons other than the original holder
thereof, be accompanied by proof satisfactory to counsel for the Bank of the right of such person or persons to exercise the Warrants; and 

        (iii)  Be
accompanied by the originally executed copy of this Stock Warrant Agreement. 

	(e)
	Partial Exercise.    In the event of a partial exercise of the Warrants, the Company shall either
issue a new agreement for the balance of the Shares subject to this Stock Warrant Agreement after such partial exercise, or it shall conspicuously note hereon the date and number of Shares purchased
pursuant to such exercise and the number of Shares remaining covered by this Stock Warrant Agreement.

	(f)
	Restrictions on Exercise.    The Warrants may not be exercised (i) if the issuance of the
Shares upon such exercise would constitute a violation of any applicable federal or state securities or banking laws or other law or regulation or (ii) unless the Bank or the holder hereof, as 

 

applicable,
obtains any approval or other clearance which the Bank determines to be necessary or advisable from the Federal Reserve Board, the Federal Deposit Insurance Corporation or any other state
or federal banking regulatory agency with regulatory authority over the operation of Company or the Bank (collectively the "Regulatory Agencies"). The Company may require representations and
warranties from the Warrant Holder as required to comply with applicable laws or regulations, including the Securities Act of 1933 and state securities laws. 

        2.    Anti-Dilution; Merger.    If, prior to the exercise
of Warrants hereunder, the Company (i) declares, makes or issues, or fixes a record date for the determination of holders of common stock entitled to receive, a dividend or other distribution
payable on the Shares in shares of its capital stock, (ii) subdivides the outstanding Shares, (iii) combines the outstanding Shares, (iv) issues any shares of its capital stock by
reclassification of the Shares, capital reorganization or otherwise (including any such reclassification or reorganization in connection with a consolidation or merger or and sale of all or
substantially all of the Company's assets to any person), then the Exercise Price, and the number and kind of shares receivable upon exercise, in effect at the time of the record date for such
dividend or of the effective date of such subdivision, combination or reclassification shall be proportionately adjusted so that the holder of any Warrant exercised after such time shall be entitled
to receive the aggregate number and kind of shares which, if such Warrant had been exercised immediately prior to such time, he would have owned upon such exercise and been entitled to receive by
virtue of such dividend, distribution, subdivision, combination, reclassification, reorganization, consideration, merger or sale. 

        3.    Valid Issuance of Common Stock.    The Company possesses the full authority and legal
right to issue this Warrant and the Shares issuable pursuant to this Warrant. The issuance of this Warrant vests in the holder the entire legal and beneficial interests in this Warrant, free and clear
of any liens, claims, and encumbrances and subject to no legal or equitable restrictions of any kind except as described herein. The Shares that are issuable upon exercise of this Warrant, when
issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and
validly issued, fully paid, and non-assessable, and will be free of restrictions on transfer other than restrictions under applicable state and federal securities. 

        4.    Restrictions on Transferability.    This Agreement and the
Warrants may not be assigned, transferred, pledged, or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment, or similar process. Any
attempted assignment, transfer, pledge, hypothecation, or other disposition of these Warrants contrary to the provisions hereof shall be without legal effect. 

        5.    Mandatory Exercise; Termination.    

        (a)   Warrant
Holder shall exercise all of Warrant Holder's then exercisable Warrants within 90 days of the date that Warrant Holder ceases to serve the Company as an
executive officer, or director, or the then exercisable Warrants shall terminate; provided that such 90 day period shall be extended to one year if the cessation of service was a result of the
Warrant Holder's death or disability. In the event the Warrant Holder fails to exercise any of the Warrants referred to in this subparagraph within the specified day period, such Warrants shall be
forfeited. 

        (b)   The
Company may be required to increase its capital to meet capital requirements imposed by statute, rule, regulation, or guideline. In order to achieve such capital
increase, the Regulatory Agencies may direct the Company to require, or the Company on its on volition may decide to require, the Warrant Holders to either (i) exercise all or part of their
Warrants or (ii) allow the Warrants to be terminated. In such an event, the Warrant Holder must exercise or forfeit the Warrants as set forth below. 

2

 

        (c)   When
the Company is required or determines to increase its capital as described in subsection (b) above, the Company shall send a notice (the "Notice") to the
Warrant Holder (i) specifying the number of Shares relating to the Warrants for which the Warrants must be exercised (the "Number") (if less than all shares relating to warrants held by all
holders of warrants of the Company under agreements substantially similar to this one are required by the Company to be exercised or cancelled, the Number for the Warrant Holder shall reflect a
proportionate allocation based on the number of Shares subject to this Agreement as compared to the total number of shares subject to warrants held by all such warrant holders as a group);
(ii) specifying the date prior to which the Warrants must be totally or partially exercised, as the case may be (the "Deadline"); and (iii) stating that the failure of the Warrant holder
to exercise the Warrants shall result in their automatic termination. 

        (d)   If
the Warrant Holder does not exercise the Warrants pursuant to the terms of the Notice, this Agreement shall be automatically terminated on the Deadline, without
further act or action by the Warrant Holder or the Company, and the Warrant Holder shall deliver this Agreement to the Company for cancellation. If the Number is less than the total number of Shares
that are then subject to exercise under this Agreement, the Company shall issue a new Stock Warrant Agreement in compliance with Section 1(e) hereof. 

        6.    Covenants of the Company.    During the term of the Warrants, the Company shall: 

        (a)   at
all times authorize, reserve and keep available, solely for issuance upon exercise of this Warrant, sufficient shares of common stock from time to time issuable upon
exercise of this Warrant; 

        (b)   on
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft, or
destruction, on delivery of any indemnity agreement or bond reasonably satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, at
its expense execute and deliver, in lieu of this Warrant, a new Warrant of like tenor; and 

        (c)   on
surrender for exchange of this Warrant or any Warrant substituted therefor pursuant hereto, properly endorsed, to the Company, at its expense, issue and deliver to or
on the order of the holder thereof a new Warrant or Warrants of like tenor, in the name of such holder, calling in the aggregate on the face or faces thereof for the issuances of the number of shares
of common stock issuable pursuant to the terms of the Warrant or Warrants so surrendered. 

        7.    No Dilution or Impairment.    The Company shall not amend its Articles of Incorporation
or participate in any reorganization, transfer of assets, consolidation, merger, dissolution, issuance or sale of securities or any other voluntary action for the purpose of avoiding or seeking to
avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in carrying out all such action as may be
reasonably necessary in order to protect the exercise rights of the holder against improper dilution or other impairment. 

        8.    Amendment.    Neither this Agreement nor the rights granted hereunder may be amended,
changed or waived except in writing signed by each party hereto. 

3

 

        IN
WITNESS WHEREOF, the Company has executed and the holder has accepted this Stock Warrant Agreement as of the date and year first above written. 

	 	 	BANKGREENVILLE FINANCIAL CORPORATION
	

 	
 	

By:	
 	

    
 Russel T. Williams, Chief Executive Officer
	(CORPORATE SEAL)	 	 	 	 
	 	 	Attest:	 	    
 Paula S. King, Secretary
	

 	
 	
WARRANT HOLDER:
	

 	
 	

By:	
 	

    

	 	 	Signature
	

 	
 	

 Print Name

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BANKGREENVILLE FINANCIAL CORPORATION STOCK WARRANT AGREEMENT

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