EXHIBIT 10.6
NOTICE: THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT
TO THE SOUTH CAROLINA UNIFORM ARBITRATION ACT
SEVERANCE AGREEMENT
This Severance Agreement is entered into as of the 5th day of November,
2001, by and between ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ("▇▇. ▇▇▇▇▇▇") and Carolina National
Corporation ("CNC").
For and in consideration of the agreements contained herein, intending
to be legally bound hereby, the parties agree as follows:
1. ▇▇. ▇▇▇▇▇▇ hereby resigns as president and a director of CNC and as an
organizer and officer of Carolina National Bank & Trust Company (Proposed) (the
"Bank"). ▇▇. ▇▇▇▇▇▇ hereby resigns from each and every other office or position
he holds with CNC or the Bank.
2. For a period of one year from the date hereof, CNC will:
(a) continue to pay ▇▇. ▇▇▇▇▇▇ $11,250.00 per month (less any
required withholding for taxes or similar obligations);
(b) furnish or pay for health and dental insurance for ▇▇. ▇▇▇▇▇▇ on
the same terms and conditions as was being provided on November
1, 2001; and
(c) continue to make lease payments on the automobile used by ▇▇.
▇▇▇▇▇▇ on November 1, 2001.
In order to assure the availability of funds to make such payments, within
fifteen days of the date of this Agreement CNC will deposit the sum of
$145,000.00 with Haynsworth ▇▇▇▇▇▇▇ ▇▇▇▇, P.A., to be held in its trust account
and disbursed upon written orders signed by the president of CNC certifying (i)
that the amount to be disbursed is for a current payment or reimbursement of
payment to or on behalf of ▇▇. ▇▇▇▇▇▇ pursuant to this Section, or (ii) that all
amounts due or to become due to ▇▇. ▇▇▇▇▇▇ pursuant to this Section have been
paid.
3. Within twenty business days of the date of this Agreement, CNC will
redeem 5,000 shares of CNC common stock from ▇▇. ▇▇▇▇▇▇ for $50,000.00. The
redemption is conditional upon ▇▇. ▇▇▇▇▇▇'▇ surrender to CNC of certificates for
5,000 shares duly assigned to CNC.
4. ▇▇. ▇▇▇▇▇▇ is hereby released from any and every obligation he had not
to compete with CNC or the Bank and every obligation under the Organizers'
Agreement and Subscription Agreement.
5. (a) ▇▇. ▇▇▇▇▇▇ agrees that he will maintain in confidence all non-public
information in his possession about CNC, the Bank and any director or organizer
of either. ▇▇. ▇▇▇▇▇▇ agrees not to disparage CNC, the Bank or any director,
organizer or other person connected with CNC or the Bank.
(b) CNC agrees that it will not and it will cause the Bank and each
officer, director and organizer of CNC or the Bank to not disparage ▇▇. ▇▇▇▇▇▇
or disclose any confidential information about ▇▇. ▇▇▇▇▇▇ to a third party.
(c) Nothing in this Section 5 shall prevent any person from providing
truthful information to the OCC, FDIC or Federal Reserve.
6. ▇▇. ▇▇▇▇▇▇ acknowledges that the payments and release in Sections 2, 3
and 4 hereby are in full satisfaction of each and every obligation to him of
CNC, the Board and, to the extent arising out of or being in connection with CNC
or the Bank, every director, officer or organizer of either.
7. Any dispute arising under this Agreement shall be resolved by binding
arbitration conducted in Columbia, South Carolina under the rules of the
American Arbitration Association then in effect.
8. This Agreement constitutes the entire agreement between the parties with
respect to the matters covered hereby.
9. This Agreement shall inure to the benefit of the parties hereto their
respective heirs, successors and assigns. This Agreement shall also inure to the
benefit of each officer, director or organizer of CNC or the Bank.
In witness whereof, the parties have executed Severance Agreement as of the
date first above written.
[SIGNATURES OMITTED]
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