RESTRICTED STOCK
LOAN AGREEMENT
THIS RESTRICTED STOCK LOAN AGREEMENT ("Agreement") is made this 22 day of
October, 1998, by and between ANCHOR FINANCIAL CORPORATION, a South Carolina
corporation ("Anchor") and XXXXXXX X. XXXXXX of Myrtle Beach, South Carolina
("Executive").
In conjunction with the recently awarded restricted stock grant in the amount of
12,500 shares, Anchor hereby agrees to provide the Executive a loan sufficient
to pay the taxes associated with his Election to Include Value of Restricted
Property and Gross Income in Year of Transfer under Code Section 83(b). The
terms of the loan are as follows:
1. Xxxxxxx X. Xxxxxx may borrow up to an amount equivalent to the
income taxes due as a result of his execution and filing of
the Election to Include Value of Restricted Property and Gross
Income in Year of Transfer under Code Section 83(b). The
maximum amount of the loan will be $225,000.
2. The loan will accrue interest at the prime rate as determined
on the date of the loan.
3. The Executive agrees to repay the loan in five equal
installments. The first installment will be due one year from
the date the loan is provided to the Executive; the second
installment will be due two years from the date of the loan;
the third installment will be due three years from the date of
the loan; the fourth installment will be due four years from
the date of the loan; and the fifth installment will be due
five years from the date of the loan.
4. Notwithstanding the above repayment schedule, on each loan
repayment due date that the Executive is still employed by
Anchor, the Executive's payment due will be forgiven (both
principal and interest).
5. On each date on which a loan repayment is forgiven pursuant to
paragraph 4 above, Anchor will pay a bonus sufficient to pay
any taxes associated with the forgiven debt.
6. If during the repayment period the Executive dies or becomes
disabled (as defined in the Executive's disability coverage
provided through Anchor), the remaining balance (both
principal and interest) will be immediately forgiven.
7. Upon Change in Control (as defined in the Executive's
employment agreement), the remaining balance (both principal
and interest) will be immediately forgiven.
8. In the event the Executive voluntarily terminates employment
prior to full repayment, the remaining principal and interest
due and owing will be forgiven on the date the Restricted
Shares are returned to Anchor pursuant to paragraph 2c(ii) of
the Anchor Financial Corporation Restricted Stock Agreement
entered into between the Executive and Anchor on October 22,
1998.
Date of Loan:
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Amount of Loan:
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Interest Rate of Loan:
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IN WITNESS WHEREOF, the Executive and Anchor (by action of its duly authorized
representative) have executed this Agreement on the date first above written.
ANCHOR FINANCIAL CORPORATION
ATTEST: /s/ Xxxxxx X. Xxxxxxx By: /s/ Xxxxxx X. Xxxxxx
Name: Xxxxxx X. Xxxxxx
Title: Vice Chairman
EXECUTIVE
ATTEST: /s/ Xxxxxxxx Xxxxxxx /s/ Xxxxxxx X. Xxxxxx
XXXXXXX X. XXXXXX
