SEC Contract Filing

Filing Date: 2016-06-01

Document Content:
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<TYPE>EX-10.1
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><I>Execution Copy</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><U>NONCOMPETE
AGREEMENT</U></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">THIS NONCOMPETE AGREEMENT (this &ldquo;Agreement&rdquo;)
dated as of May 26, 2016, is made by and among <B>HCSB Financial Corporation</B>, a South Carolina corporation (the &ldquo;Company&rdquo;),
<B>Horry County State Bank</B>, a South Carolina state-chartered commercial bank, which is a wholly owned subsidiary of the Company
(the &ldquo;Bank&rdquo; and collectively with the Company, the &ldquo;Employer&rdquo;), and <B>Janet H. Hollar</B>, an individual
resident of South Carolina (the &ldquo;Executive&rdquo;).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">WHEREAS, Executive is presently employed
as the Chief Executive Officer of the Company and the Bank, having been hired to such positions on April 11, 2016 pursuant to the
terms of that certain employment agreement between the Executive, the Bank, and the Company (the &ldquo;Employment Agreement&rdquo;)
entered into on or about the date hereof.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">WHEREAS, during the course of her employment,
Executive will develop relationships with employees and customers of the Employer, which the Employer desires to protect following
the termination of the Executive&rsquo;s employment with the Employer.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">WHEREAS, the Executive acknowledges that
(i) the Employer invests significant time, effort, and resources in obtaining customers of the Bank, (ii) the Employer&rsquo;s
success depends upon obtaining, developing, and maintaining its customer base, (iii) the Executive&rsquo;s contact with customers
in performing services under the Employment Agreement constitutes a position of trust which may result in the establishment of
a relationship whereby the Executive could influence the future actions of customers relative to continued support and investment
and as a customer of the Bank, and (iv) that if a business relationship between the Employer and a customer at which or for whom
the Executive performed services under the Employment Agreement is terminated because the Executive solicited or agreed to perform
similar services as provided for under the Employment Agreement, then the Employer would be damaged and the solicitation by the
Executive would constitute a breach of trust and duty of loyalty by the Executive and an interference with the relationship between
the customer and the Employer.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">WHEREAS, the Executive is willing to forego
her rights to compete with the Employer for a period of one year following the termination of the Executive&rsquo;s employment with the
Employer for that certain consideration stated below.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">NOW, THEREFORE, in consideration of the
premises, the mutual covenants and agreements set forth in this Agreement, and other good and valuable consideration the receipt,
mutuality and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">1.</TD><TD><U>Restrictive Covenants</U>.</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.8in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Solicitation of Customers</U>.
During the Executive&rsquo;s employment with the Employer and for a period of 12 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&rsquo;s own behalf
or in the service or on behalf of others, (i) solicit, divert, or appropriate to or for a C