Exhibit 10.2
SOUTHERN COMMUNITY BANK & TRUST
ORGANIZATIONAL INVESTORS WARRANT PLAN
Article I
PURPOSE
The Organizational Investors Warrant Plan (the “Plan”) is intended to reward and foster the long-term relationship and loyalty of the forty-seven individuals who, through their initial aggregate purchase of 140,000 shares of common stock (the “Organizational Investors”), facilitated the organization of Southern Community Bank & Trust (the “Bank”).
Article II
GENERAL PROVISIONS
2.01
General. The Plan authorizes the Board of Directors of the Bank (the “Board”) to issue warrants that grant each of the Organizational Investors the right to purchase common stock of the Bank in an amount equal to the number of shares originally purchased by that individual for a purchase price of $10.00 per share.
2.02
Grants.
The Board shall designate individuals to whom warrants are to be granted and will specify the number of shares of common stock of the Bank subject to each warrant. All warrants granted under the Plan shall be evidenced by Agreements which shall be subject to applicable provisions of the Plan and to such other provisions as the Board may adopt.
2.03
Shares Subject to the Plan. Upon the exercise of any warrant, the Bank shall deliver to the individual to whom the warrant is granted authorized but unissued shares of common stock of the Bank. The maximum aggregate number of shares of common stock of the Bank that may be issued pursuant to the exercise of warrants under the Plan is 140,000, subject to the adjustments set forth in Article V.
Article III
ADMINISTRATION
The Board shall administer the Plan and shall have the authority to grant warrants upon such terms, not inconsistent with the provisions of the Plan, as the Board may consider appropriate. Such terms may include without limitation conditions on the exercisability of all or any part of the warrants. In addition, the Board shall have complete authority to interpret all provisions of the Plan; to adopt, amend and rescind rules and regulations pertaining to the administration of the Plan; and to make all other determinations necessary or advisable for the administration of the Plan. Any decision made, or action taken, by the Board in connection with the administration of the Plan shall be final and conclusive. No member of the Board shall be liable for any act done with respect to the Plan. All expenses of administering the Plan shall be borne by the Bank.
Article IV
EXERCISE OF WARRANTS
4.01.
Expiration. No warrant issued pursuant to the Plan shall be exercised after April 30, 2008.
4.02
Nontransferability. Any warrant issued under the Plan shall be nontransferable except by will or by the laws of descent and distribution. During the lifetime of each of the Organizational Investors to whom the warrant is granted, the warrant may be exercised only by that individual. No right or interest of that individual in the warrants shall be subject to, any lien, obligation, or liability of such individual.
Article V
ADJUSTMENTS
Should the Bank effect one or more stock dividends, stock splits, subdivisions or consolidations of shares, the number of shares as to which warrants may be granted under the Plan shall be proportionately adjusted and the terms of the warrants shall be adjusted as the Board shall determine to be equitably required. Any determination made under this Article V by the Board shall be final and conclusive.
The issuance by the Bank of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property or for labor or services, either upon direct sale or upon the exercise of rights, options or warrants to subscribe therefor, or upon conversion of shares or obligations of the Bank convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the warrants.
Article VI
AMENDMENT
The Board may amend the Plan from time to time; provided, however, that no amendment may become effective until shareholder approval of such amendment is obtained if the amendment increases the aggregate number of shares that may be issued pursuant to warrants, except as set forth in Article V.
2
