<SEC-DOCUMENT>0001206774-17-001950.txt : 20170703
<SEC-HEADER>0001206774-17-001950.hdr.sgml : 20170703
<ACCEPTANCE-DATETIME>20170703133944
ACCESSION NUMBER:		0001206774-17-001950
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20170630
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170703
DATE AS OF CHANGE:		20170703

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOUTHERN FIRST BANCSHARES INC
		CENTRAL INDEX KEY:			0001090009
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				582459561
		STATE OF INCORPORATION:			SC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27719
		FILM NUMBER:		17945024

	BUSINESS ADDRESS:	
		STREET 1:		100 VERDAE BOULEVARD
		STREET 2:		SUITE 100
		CITY:			GREENVILLE
		STATE:			SC
		ZIP:			29607
		BUSINESS PHONE:		8646799000

	MAIL ADDRESS:	
		STREET 1:		100 VERDAE BOULEVARD
		STREET 2:		SUITE 100
		CITY:			GREENVILLE
		STATE:			SC
		ZIP:			29607

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GREENVILLE FIRST BANCSHARES INC
		DATE OF NAME CHANGE:	19990707
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>southern3279391-8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>

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<P align=center><B><FONT face=Arial size=4>UNITED STATES<BR></FONT></B><B><FONT face=Arial size=4>SECURITIES AND EXCHANGE COMMISSION</FONT></B><FONT face=Arial size=5> <BR></FONT><B><FONT face=Arial size=2>WASHINGTON, DC
20549</FONT></B></P>
<P align=center><B><FONT face=Arial size=4>FORM 8-K</FONT></B></P>
<P align=center><B><FONT face=Arial>CURRENT REPORT PURSUANT</FONT></B><FONT face=Arial> <BR></FONT><B><FONT face=Arial>TO SECTION 13 OR 15(D) OF THE
<BR>SECURITIES EXCHANGE ACT OF 1934</FONT></B><FONT face=Arial> </FONT></P>
<P align=center><FONT face=Arial size=2>Date of report (Date of earliest event
reported</FONT><U><FONT face=Arial size=2>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; June 30,
2017&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></U><FONT face=Arial size=2> </FONT></P>
<P align=center><IMG src="southern3279391-8kx1x1.jpg" border=0></P>
<DIV align=center>
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  <TR style="PADDING-BOTTOM: 2pt" vAlign=bottom>
    <TD style="WIDTH: 100%; BORDER-BOTTOM: black 1.5pt solid; TEXT-ALIGN: center" noWrap width="100%"><B><FONT face=Arial size=5>Southern First Bancshares,
      Inc.</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="100%"><FONT face=Arial size=2>(Exact name of registrant as specified in its
  charter)</FONT></TD></TR></TABLE></DIV><BR>
<DIV align=center>
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    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="100%"><B><FONT face=Arial size=2>South Carolina</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="100%"><FONT face=Arial size=2>(State or other jurisdiction of
incorporation)</FONT></TD></TR></TABLE></DIV><BR>
<DIV align=center>
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  <TR>
    <TD style="TEXT-ALIGN: center" noWrap width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%"><STRONG><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      000-27719&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></STRONG></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="5%">&nbsp;</TD>
    <TD noWrap align=right width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%"><STRONG><FONT face=Arial size=2>58-2459561</FONT></STRONG></TD></TR>
  <TR>
    <TD noWrap width="5%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="9%"><FONT face=Arial size=2>(Commission File Number)</FONT></TD>
    <TD noWrap width="5%">&nbsp;</TD>
    <TD noWrap align=right width="71%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="9%"><FONT face=Arial size=2>(IRS Employer Identification No.)</FONT></TD></TR>
  <TR>
    <TD style="TEXT-ALIGN: center" noWrap width="19%" colSpan=3>&nbsp;</TD>
    <TD noWrap align=right width="71%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="9%">&nbsp;</TD></TR>
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    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="19%" colSpan=3><B><FONT face=Arial size=2>100 Verdae Boulevard, Suite 100,
      Greenville, SC</FONT></B></TD>
    <TD noWrap align=right width="71%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%"><B><FONT face=Arial size=2>29607</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="19%" colSpan=3><FONT face=Arial size=2>(Address of principal executive offices)</FONT></TD>
    <TD noWrap align=right width="71%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="9%"><FONT face=Arial size=2>(Zip Code)</FONT></TD></TR></TABLE></DIV>
<DIV align=center>&nbsp;</DIV>
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  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="33%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="33%">&nbsp;<STRONG><FONT face=Arial size=2>(864)
      679-9000</FONT></STRONG></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="33%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="99%" colSpan=3><FONT face=Arial size=2>(Registrant's telephone number, including area
      code)</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="33%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="33%"><STRONG><FONT face=Arial size=2>Not
    Applicable</FONT></STRONG></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="33%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="TEXT-ALIGN: center" noWrap width="99%" colSpan=3><FONT face=Arial size=2>(Former name or former address, if changed since last
      report)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=Arial size=2>Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction
A.2. below):</FONT></P>
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    <TD style="BORDER-RIGHT: #ffffff 8pt solid; WIDTH: 1%; TEXT-ALIGN: left" noWrap><FONT face=Arial>&#9744;</FONT></TD>
    <TD vAlign=top noWrap align=left width="98%"><FONT face=Arial size=2>Written communications pursuant to Rule 425 under the Securities
      Act (17 CFR 230.425)</FONT></TD></TR>
  <TR>
    <TD style="BORDER-RIGHT: #ffffff 8pt solid; WIDTH: 1%; TEXT-ALIGN: left" noWrap></TD>
    <TD vAlign=top noWrap align=left width="98%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #ffffff 8pt solid; WIDTH: 1%; TEXT-ALIGN: left" noWrap><FONT face=Arial>&#9744;</FONT></TD>
    <TD vAlign=top noWrap align=left width="98%"><FONT face=Arial size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)</FONT></TD></TR>
  <TR>
    <TD style="BORDER-RIGHT: #ffffff 8pt solid; WIDTH: 1%; TEXT-ALIGN: left" noWrap></TD>
    <TD vAlign=top noWrap align=left width="98%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #ffffff 8pt solid; WIDTH: 1%; TEXT-ALIGN: left" noWrap><FONT face=Arial>&#9744;</FONT></TD>
    <TD vAlign=top noWrap align=left width="98%"><FONT face=Arial size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17CFR 240.14d-2(b))</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #ffffff 8pt solid; WIDTH: 1%; TEXT-ALIGN: left" noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="98%"><FONT face=Arial size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-RIGHT: #ffffff 8pt solid; WIDTH: 1%; TEXT-ALIGN: left" noWrap><FONT face=Arial>&#9744;</FONT></TD>
    <TD vAlign=top noWrap align=left width="98%"><FONT face=Arial size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
  <TR style="VERTICAL-ALIGN: bottom">
    <TD style="BORDER-RIGHT: #ffffff 8pt solid; TEXT-ALIGN: left" noWrap>&nbsp;</TD>
    <TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: left" noWrap>&nbsp;</TD></TR>
  <TR style="VERTICAL-ALIGN: bottom; LINE-HEIGHT: normal">
    <TD style="TEXT-ALIGN: justify" colSpan=2><FONT face=Arial size=2>Indicate
      by check mark whether the registrant is an emerging growth company as
      defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this
      chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2
      of this chapter).</FONT></TD></TR>
  <TR>
    <TD style="TEXT-ALIGN: right" align=right colSpan=2><FONT face=Arial>Emerging growth company&nbsp;&#9744;&nbsp;&nbsp;</FONT></TD></TR>
  <TR style="VERTICAL-ALIGN: bottom">
    <TD style="TEXT-ALIGN: left" noWrap>&nbsp;</TD>
    <TD style="VERTICAL-ALIGN: top; TEXT-ALIGN: left">&nbsp;</TD></TR>
  <TR style="VERTICAL-ALIGN: bottom">
    <TD style="LINE-HEIGHT: normal; TEXT-ALIGN: justify" colSpan=2><FONT face=Arial size=2>If an emerging growth company, indicate by check mark if
      the registrant has elected not to use the extended transition period for
      complying with any new or revised financial accounting standards provided
      pursuant to Section 13(a) of the Exchange Act. <FONT face=Arial>&#9744;</FONT></FONT></TD></TR></TABLE><BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><B><FONT face=Arial size=2>ITEM 1.01 Entry into a Material
Definitive Agreement.</FONT></B></P>
<P align=justify><FONT face=Arial size=2>On June 30, 2017, Southern First
Bancshares, Inc. (the "Company") entered into a Loan and Security Agreement (the
"Loan Agreement") with CenterState Bank, National Association (the "Lender")
providing for a revolving multiple advances loan of up to an aggregate principal
amount of $15,000,000. Borrowings under the Loan Agreement accrue interest at
LIBOR plus 2.50% per annum. In connection with entering into the Loan Agreement,
the Company issued to the Lender a Promissory Note dated as of June 30, 2017
(the &#147;Promissory Note&#148;) in the amount of up to $15,000,000. In addition, the
Company paid an upfront commitment fee of $15,000, or 0.10% of the aggregate
commitment amount, upon closing. Maturity of the Loan Agreement will be 36
months from the closing date. During this time, interest only payments will be
due quarterly. The Company may at its option prepay the Promissory Note, in
whole or in part, at any time without penalty, plus accrued interest in the
amount prepaid to the date of prepayment. </FONT></P>
<P align=justify><FONT face=Arial size=2>The Loan Agreement contains customary
representations, warranties, covenants and events of default, including, without
limitation, covenants pertaining to investments and acquisitions and certain
financial and capital ratios. An event of default will occur under the Loan
Agreement if, among other things, the Company fails to timely comply with its
obligations under the Loan Agreement or breaches its representations or
covenants under the Loan Agreement (in each case, subject to applicable cure
periods), or either the Company or its wholly-owned banking subsidiary, Southern
First Bank (the &#147;Bank&#148;), commences or becomes the subject a bankruptcy or
similar proceeding. </FONT></P>
<P align=justify><FONT face=Arial size=2>The obligations of the Company under
the Loan Agreement are secured by a pledge of all of the capital stock of the
Bank pursuant to a Pledge Agreement dated as of June 30, 2017 between the
Company and the Lender (the "Pledge Agreement"). In the event of a default by
the Company under the Loan Agreement, the Lender may terminate the commitments
made under the Loan Agreement, declare all amounts outstanding to be payable
immediately and exercise or pursue any other remedy permitted under the Loan
Agreement or the Pledge Agreement, or conferred upon Lender by operation of law.
</FONT></P>
<P align=justify><FONT face=Arial size=2>The descriptions contained herein of
the Loan Agreement, the Promissory Note and the Pledge Agreement are qualified
in their entirety by reference to the terms of such documents, each of which is
attached hereto as an exhibit and incorporated herein by this reference.
</FONT></P>
<P align=justify><B><FONT face=Arial size=2>Item 2.03 Creation of a Direct
Financial Obligation.</FONT></B></P>
<P align=justify><FONT face=Arial size=2>The relevant disclosure set forth in
Item 1.01 above is incorporated herein by reference in response to this Item
2.03. </FONT></P>
<P align=justify><B><FONT face=Arial size=2>ITEM 9.01(d)
Exhibits.</FONT></B></P>
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    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>Exhibit No.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="3%" STYLE="border-bottom: #000000 1pt solid; text-align: justify"><FONT face=Arial size=2>Exhibit</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="95%" STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD VALIGN="TOP" NOWRAP ALIGN="LEFT" WIDTH="1%"><A HREF="southern3279391-ex101.htm"><FONT face=Arial size=2>10.1</FONT></A></TD>
    <TD VALIGN="TOP" NOWRAP ALIGN="LEFT" WIDTH="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD VALIGN="TOP" ALIGN="LEFT" WIDTH="98%" COLSPAN="2" STYLE="text-align: justify"><A HREF="southern3279391-ex101.htm"><FONT face=Arial size=2>Loan and Security Agreement, dated as of June 30, 2017,
      by and between Southern First Bancshares, Inc. and CenterState Bank,
      National Association.</FONT></A></TD></TR>
  <TR>
    <TD VALIGN="TOP" WIDTH="100%" COLSPAN="4">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><A HREF="southern3279391-ex102.htm"><FONT face=Arial size=2>10.2</FONT></A></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD VALIGN="TOP" ALIGN="LEFT" WIDTH="98%" COLSPAN="2" STYLE="text-align: justify"><A HREF="southern3279391-ex102.htm"><FONT face=Arial size=2>Promissory Note, dated as
      of June 30, 2017, by and between Southern First Bancshares, Inc. and
      CenterState Bank, National Association.</FONT></A></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=4>&nbsp; </TD></TR>
  <TR>
    <TD VALIGN="TOP" NOWRAP ALIGN="LEFT" WIDTH="1%"><A HREF="southern3279391-ex103.htm"><FONT face=Arial size=2>10.3</FONT></A></TD>
    <TD VALIGN="TOP" NOWRAP ALIGN="LEFT" WIDTH="1%"></TD>
    <TD VALIGN="TOP" ALIGN="LEFT" WIDTH="98%" COLSPAN="2" STYLE="text-align: justify"><A HREF="southern3279391-ex103.htm"><FONT face=Arial size=2>Pledge Agreement, dated as of June 30, 2017, by and
      between Southern First Bancshares, Inc. and CenterState Bank, National
      Association.</FONT></A></TD></TR></TABLE>
      </div>
      <BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P STYLE="text-align: left"><B><FONT face=Arial size=2>SIGNATURES </FONT></B></P>
<P align=justify><FONT face=Arial size=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.</FONT></P>
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    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="49%" colSpan=2><B><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES, INC.</FONT></B></TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="48%"><FONT face=Arial size=2>/s/&nbsp;Michael D. Dowling</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>Name: &nbsp;</FONT></TD>
    <TD noWrap align=left width="48%"><FONT face=Arial size=2>Michael D.
      Dowling</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>Title:</FONT></TD>
    <TD noWrap align=left width="48%"><FONT face=Arial size=2>Chief Financial
      Officer</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=Arial size=2>July 3,
      2017<FONT face="Times New Roman" size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%"></TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>southern3279391-ex101.htm
<DESCRIPTION>LOAN AND SECURITY AGREEMENT, DATED AS OF JUNE 30, 2017
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<P STYLE="text-align: right"><B><FONT face=Arial size=2>Exhibit 10.1 </FONT></B></P>
<P align=center><B><U><FONT face=Arial size=2>LOAN AND SECURITY
AGREEMENT</FONT></U></B><B><FONT face=Arial size=2> </FONT></B></P>
<P align=justify><B><FONT face=Arial size=2>THIS LOAN AND SECURITY
AGREEMENT</FONT></B><FONT face=Arial size=2> made this 30th day of June, 2017,
by and between </FONT><B><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES,
INC., </FONT></B><FONT face=Arial size=2>a South Carolina corporation, having
its principal place of business in 100 Verdae Boulevard, Suite 100, Greenville,
South Carolina 29606 (hereinafter referred to as the &#147;Borrower&#148;), and
</FONT><B><FONT face=Arial size=2>CENTERSTATE BANK, NATIONAL
ASSOCIATION,</FONT></B><FONT face=Arial size=2> a national banking association,
having its principal place of business in 1101 1<SUP>st</SUP> Street South,
Winter Haven, Florida 33880 (hereinafter referred to as the &#147;Lender&#148;).
</FONT></P>
<P align=justify><FONT face=Arial size=2>The parties, in consideration of the
making of the loans hereinafter specified and of the promises and undertakings
to be set forth, do hereby agree, it being expressly understood that all
covenants and undertakings herein will survive and remain in full force and
effect, so far as material or appropriate, until such time as all indebtedness
(principal and all accrued interest) direct or indirect, of the Borrower to the
Lender shall have been paid in full as follows: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>I.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><B><U><FONT face=Arial size=2>Representations
      and Warranties</FONT></U></B><B><FONT face=Arial size=2>. </FONT></B><FONT face=Arial size=2>The Borrower hereby represents and warrants
    that:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>A.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Financial
      Statements</FONT></U><FONT face=Arial size=2>. The audited consolidated
      financial statements of the Borrower as of and for the fiscal year ended
      December 31, 2016, and the unaudited consolidated financial statements of
      the Borrower as of and for the nine months ending March 31, 2017 which it
      has submitted to the Lender, are complete and correct, and fairly present
      the financial condition of Borrower as of the respective dates stated
      herein.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>B.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Changes in Financial
      Condition</FONT></U><FONT face=Arial size=2>. There have been no
      substantial changes in its financial condition or in that of any of its
      consolidated subsidiaries since that reflected in the most recent balance
      sheet submitted to the Lender nor are, to the knowledge of the Borrower,
      any such changes threatened.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>C.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Liens or
      Encumbrances</FONT></U><FONT face=Arial size=2>. The Borrower and its
      consolidated subsidiaries have good marketable title to, or valid
      leasehold interest in, all of their respective properties and assets
      subject to no liens or encumbrances, including but not limited to the
      mortgaging of real or personal properties, assignment of accounts
      receivable, pledging of personal properties, etc., except as provided
      herein or except as otherwise disclosed by the financial statements
      submitted to the Lender and by the information submitted to the Lender in
      the form of </FONT><B><I><U><FONT face=Arial size=2>Exhibit &#147;A&#148;
      </FONT></U></I></B><FONT face=Arial size=2>attached hereto.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>D.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Guaranty
      Agreements</FONT></U><FONT face=Arial size=2>. Neither the Borrower nor
      any of its consolidated subsidiaries is a party to any suretyship,
      guaranty, or other similar type agreement nor have any of them offered its
      endorsement to any individual or concern which would in any way create a
      contingent liability that does not appear in the financial statements
      referred to in Paragraph A above or in the information submitted to the
      Lender in the form of </FONT><B><I><U><FONT face=Arial size=2>Exhibit &#147;A&#148;
      </FONT></U></I></B><FONT face=Arial size=2>attached hereto.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>E.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Organization</FONT></U><FONT face=Arial size=2>. The Borrower and each of its consolidated subsidiaries
      is a duly organized corporation and the execution and delivery of this
      Agreement is for a valid corporate purpose and will not violate any laws,
      Borrower&#146;s charter, bylaws, or any other agreement to which it or any of
      its consolidated subsidiaries is a party.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>F.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Litigation</FONT></U><FONT face=Arial size=2>. There is no litigation or proceeding pending against
      the Borrower or any of its consolidated subsidiaries nor, to the knowledge
      of the Borrower, are any threatened, financial or otherwise, which might
      have a material adverse effect on the Borrower&#146;s or any of its
      consolidated subsidiaries&#146; financial condition or business affairs except
      as shown on </FONT><B><I><U><FONT face=Arial size=2>Exhibit &#147;A&#148;
      </FONT></U></I></B><FONT face=Arial size=2>attached hereto.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>G.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Taxes</FONT></U><FONT face=Arial size=2>. The Borrower and each of its
    consolidated subsidiaries        has filed all required (Federal, State and Local) tax returns and has paid        all taxes
    as shown on such returns as they have become due. No claims have        been assessed and remain unpaid with respect to such
    taxes except as        disclosed by the financial statements submitted to the Lender or by        <B><I><U><FONT face=Arial size=2>Exhibit
    &#147;A&#148;</FONT></U></I></B><FONT face=Arial size=2> attached hereto.</FONT></FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 2 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>H.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%" colSpan=2><U><FONT face=Arial size=2>Corporate
      Action</FONT></U><FONT face=Arial size=2>. The Borrower has full power,
      authority and legal right to execute, deliver, and perform this Agreement,
      the Note (as defined below) and all other Loan Documents (this Agreement,
      the Note and any and all other documents executed in connection with this
      loan accommodation shall hereinafter be referred to as, the &#147;Loan
      Documents&#148;) and to borrow hereunder and has taken all necessary corporate
      action to authorize the borrowings hereunder on the terms and conditions
      of this Agreement and to authorize the execution, delivery and performance
      of this Agreement and the Note. This Agreement and the Note have been duly
      authorized, executed and delivered by the Borrower and constitute legal,
      valid and binding obligations of the Borrower enforceable in accordance
      with their respective terms.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="TEXT-ALIGN: justify" width="100%" colSpan=2></TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>I.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%" colSpan=2><U><FONT face=Arial size=2>Subsidiaries</FONT></U><FONT face=Arial size=2>. The subsidiaries
      of the Borrower and the Borrower&#146;s percentage of ownership thereof are as
      listed in </FONT><B><I><U><FONT face=Arial size=2>Exhibit &#147;B&#148;
      </FONT></U></I></B><FONT face=Arial size=2>attached hereto.</FONT></TD></TR>
  <TR>
    <TD ></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>J.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%" colSpan=2><U><FONT face=Arial size=2>Governmental
      Laws</FONT></U><FONT face=Arial size=2>. The Borrower and its consolidated
      subsidiaries are in compliance in all material respects with all
      applicable governmental laws and regulations.</FONT></TD></TR>
  <TR>
    <TD ></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>K.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%" colSpan=2><U><FONT face=Arial size=2>Stock of
      Southern First Bank </FONT></U><FONT face=Arial size=2>(hereinafter
      referred to as "SFB").</FONT></TD></TR>
  <TR>
    <TD ></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD ></TD>
    <TD></TD>
    <TD style="TEXT-ALIGN: justify" vAlign=top noWrap><FONT face=Arial size=2>1.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%"><FONT face=Arial size=2>The common stock of SFB pledged
      to Lender (herein "Collateral") represents 100% of the outstanding common
      stock of SFB, represented by Share Certificate No. 001 of SFB. SFB has no
      other capital stock or securities issued or outstanding.</FONT></TD></TR>
  <TR>
    <TD ></TD>
    <TD></TD>
    <TD style="TEXT-ALIGN: justify" vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="TEXT-ALIGN: justify" width="100%"></TD></TR>
  <TR>
    <TD ></TD>
    <TD></TD>
    <TD style="TEXT-ALIGN: justify" vAlign=top noWrap><FONT face=Arial size=2>2.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%"><FONT face=Arial size=2>The Collateral has been duly
      authorized and validly issued and is fully paid and
    non-assessable.</FONT></TD></TR>
  <TR>
    <TD ></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD ></TD>
    <TD></TD>
    <TD style="TEXT-ALIGN: justify" vAlign=top noWrap><FONT face=Arial size=2>3.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%"><FONT face=Arial size=2>Other than those imposed by the
      Change in Bank Control Act of 1978, there are no restrictions upon the
      transfer of the Collateral.</FONT></TD></TR>
  <TR>
    <TD ></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>L.</FONT></TD>
    <TD style="TEXT-ALIGN: justify" width="100%" colSpan=2><FONT face=Arial size=2>The pledge of the
      Collateral pursuant to this Agreement creates a valid and perfected first
      priority security interest in the Collateral.</FONT></TD></TR>
  <TR>
    <TD ></TD>
    <TD colSpan=3>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>II.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><B><U><FONT face=Arial size=2>The
      Loan</FONT></U></B><B><FONT face=Arial size=2>. </FONT></B><FONT face=Arial size=2>Subject to the terms and conditions of the Agreement,
      the Lender agrees to make a revolving line of credit loan to the Borrower
      as of the date hereof in the maximum principal amount of
      </FONT><B><U><FONT face=Arial size=2>$15,000,000.00 </FONT></U></B><FONT face=Arial size=2>(the "Loan").</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>A.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>The Note</FONT></U><FONT face=Arial size=2>. The Loan shall be evidenced by that certain promissory
      note substantially in the form attached hereto as </FONT><B><I><U><FONT face=Arial size=2>Exhibit &#147;C&#148; </FONT></U></I></B><FONT face=Arial size=2>(hereinafter called the "Note"). The Note shall (a) be dated as of
      the date hereof; (b) be stated to be due on June 30, 2020 (the &#147;Maturity
      Date&#148;); (c) bear interest (at the applicable interest rate provided herein
      below) from the date hereof on the unpaid principal amount thereof, with
      quarterly payments of interest only, based on the outstanding principal
      balance of the Note, payable beginning on September 30, 2017 and on the
      thirtieth (30<SUP>th </SUP>) day of each of December, March and June
      during the term hereof; and (d) be due and payable in full as to the
      unpaid principal amount on the Maturity Date.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD STYLE="text-align: justify"></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Floating Rate of 30-day LIBOR
      Base Rate</FONT></U><FONT face=Arial size=2>. Interest shall accrue on the
      unpaid principal balance of the Note at a variable per annum rate equal to
      the One Month LIBOR Base Rate (as hereinafter defined), plus a margin of
      250 basis points (or 2.50%) (the &#147;Interest Rate&#148;). The Interest Rate may
      change as often as monthly. The interest rate hereunder shall be adjusted
      monthly in accordance with fluctuations in the One Month LIBOR Base Rate.
      The effective date of any rate change will be the last Business Day (as
      defined below) of each month.</FONT></TD></TR>
</TABLE><BR>

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  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD NOWRAP ALIGN="LEFT" WIDTH="36%" STYLE="text-align: right"><FONT face=Arial size=2>Page 3 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" STYLE="text-align: justify">
      <P STYLE="text-align: justify"><FONT face=Arial size=2>For purposes hereof, &#147;One Month LIBOR Base
      Rate&#148; means the percentage rate of interest at which one (1) month
      deposits in United States dollars in an amount equal to the principal
      balance of the Loan on the effective date of this Agreement (or the next
      higher amount for which quotes are available in the London Interbank
      Market) are offered to major banks in the London Interbank Market as
      published in the <B><I><U><FONT face=Arial size=2>Wall Street Journal
      </FONT></U></I></B><FONT face=Arial size=2>on the first Business Day of
      each month. Such One Month LIBOR Base Rate is established by
      </FONT><B><FONT face=Arial size=2>CENTERSTATE BANK </FONT></B><FONT face=Arial size=2>as an index or base rate and may or may not at any time
      be the best or lowest rate of interest offered by the
      Lender.</FONT></FONT></P>
      <P STYLE="text-align: justify"><FONT face=Arial size=2>The LIBOR Base Rate shall be the &#147;offered to&#148;
      rate reported by a reliable source for LIBOR quotes selected by the Lender
      in its sole discretion. If two or more applicable &#147;offered to&#148; rates are
      reported by that source, the LIBOR Base Rate shall be the arithmetic mean
      of such rates. &#147;Business Day&#148; means any day on which dealings in deposits
      in United States Dollars are conducted in the London Interbank Market
      other than Saturday, Sunday, or a day on which national banks are
      authorized or required by law to be closed in the city where the Lender&#146;s
      office, as identified above, is located, and any performance which would
      otherwise be required on a day other than a Business Day shall be timely
      performed in such instance, if performed on the next succeeding Business
      Day. Notwithstanding such timely performance, interest shall continue to
      accrue hereunder until such payment or performance has been
      made.</FONT></P>
      <P STYLE="text-align: justify"><FONT face=Arial size=2>All interest accruing under this Note shall be
      computed on a 360 day basis (i.e., interest for each day during which the
      principal amount of the Note is outstanding shall be computed at the
      Interest Rate divided by 360, for the actual number of days elapsed) and
      the applicable Interest Rate shall not exceed the maximum rate of interest
      permitted by law.</FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>B.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Commitment Fee</FONT></U><FONT face=Arial size=2>. 0.10% ($15,000.00) paid upon execution hereof, prior
      to any funding of the Loan.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>C.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Prepayments; Revolving Nature
      of Loan</FONT></U><FONT face=Arial size=2>. The Borrower may at its option
      prepay the Note, in whole or in part, without penalty, plus accrued
      interest in the amount prepaid to the date of prepayment. Prepayments are
      to be applied to principal installments in inverse order of maturity. The
      Note represents a non-revolving line of credit loan whereby any sums
      advance hereunder may be repaid but not re-borrowed.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>D.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Proceeds of the Loan.
      </FONT></U><FONT face=Arial size=2>The proceeds of the Loan made to the
      Borrower under this Agreement shall be used by the Borrower to fund future
      growth, stock repurchases, and other general corporate
  purposes.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>E.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Non-Usage Fee.
      </FONT></U><FONT face=Arial size=2>None.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>III.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><B><U><FONT face=Arial size=2>Collateral</FONT></U></B><B><FONT face=Arial size=2>.
      </FONT></B><FONT face=Arial size=2>As security for the payment of the Loan
      as described herein (and the other &#147;Obligations&#148; as defined in the Pledge
      Agreement defined herein below), the Borrower has pledged or deposited
      with Lender and hereby grants to Lender a security interest in the shares
      of common stock of SFB (herein referred to as "Pledge Agreement"),
      described in </FONT><B><I><U><FONT face=Arial size=2>Exhibit &#147;D&#148;
      </FONT></U></I></B><FONT face=Arial size=2>attached hereto (including all
      cash, stock and other dividends and all rights to subscribe for securities
      incident to, declared or granted in connection with such shares of common
      stock) which shares of common stock, together with all additions and
      substitutions thereafter pledged or deposited with the Lender is the
      Collateral. Upon the occurrence of any default under this Agreement,
      Lender shall have the remedies of a secured party under this Agreement,
      Lender shall have the remedies of a secured party under the Uniform
      Commercial Code and, without limiting the generality of the foregoing,
      Lender shall have the right, immediately and without further action by it,
      to set off against the Loan all the money owed by Lender in any capacity
      to Borrower; and Lender shall be deemed to have exercised such right of
      set-off and to have made a charge against any such money immediately upon
      the occurrence of such defaults even though such a charge is made or
      entered on the books of Lender subsequent thereto. The giving of five (5)
      Business Days written notice to the Borrower shall constitute reasonable
      notice to the Borrower. </FONT></TD></TR></TABLE><BR>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 4 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>

<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>IV.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><B><U><FONT face=Arial size=2>Conditions of
      Borrowing</FONT></U></B><B><FONT face=Arial size=2>. </FONT></B><FONT face=Arial size=2>It shall have been determined prior to funding of the
      Loan, that SFB&#146;s pro-forma Tier I Leverage Ratio is 9.0% or better and
      their Classified Asset Ratio is 40% or less and the Borrower shall have
      furnished to the Lender:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>a copy, certified by the
      Secretary of the Borrower and dated the date hereof, of the resolutions of
      the Board of Directors of the Borrower authorizing the borrowings herein
      provided for and the execution, delivery and performance of this Agreement
      and the Note, in form and substance satisfactory to the
  Lender,</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>a copy of all approvals, if any,
      from all regulatory agencies with jurisdiction over the Borrower and
      SFB.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colSpan=3></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(c)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>a summary copy of the SFB&#146;s watch
      list loans, it&#146;s top ten (10) lending relationships and ten (10) largest
      non-performing assets, which said summary shall also include the
      loan-to-value ratio and debt service coverage ratio of each
      loan/non-performing asset included in such summary and Lender shall be
      permitted to independently review the bank files pertaining to said ten
      (10) largest NPAs.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colSpan=3></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>V.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><B><U><FONT face=Arial size=2>Affirmative
      Covenants</FONT></U></B><B><FONT face=Arial size=2>. </FONT></B><FONT face=Arial size=2>Until payment in full of the Note and interest thereon,
      the Borrower agrees that it will:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>A.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Annual Financial
      Statements</FONT></U><FONT face=Arial size=2>. Borrower agrees to supply
      to Lender (i) within one hundred twenty (120) days of its fiscal year end
      of each year, fully completed audited unqualified financial statements on
      Borrower and subsidiaries and related management letter to accountants for
      the recently completed calendar year prepared by an certified public
      accountant selected by the Borrower and satisfactory to the Lender in
      conformity with generally accepted accounting principles, applied on a
      basis consistent with that of the preceding year or containing disclosure
      of the effect on the financial position or results of operations of any
      change in the application of such accounting principles during the year,
      (ii) the annual operating budget for the Borrower and SFB within 30 days
      of board of directors approval, and (iii) quarterly covenant compliance
      certificates as to the terms and conditions of this Agreement within 20
      days following the end of each calendar quarter commencing with the
      calendar quarter of June 30, 2017.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>B.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Other
      Information</FONT></U><FONT face=Arial size=2>. Upon written request on
      the part of the Lender, deliver to the Lender promptly such other
      information about the financial condition and operations of the Borrower
      and its consolidated subsidiaries as the Lender may, from time to time,
      reasonably request, subject to the restrictions in Section VIII.Q
      hereof.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>C.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Inspection</FONT></U><FONT face=Arial size=2>. The Borrower and SFB will make available, during
      normal office hours, for inspection to a duly authorized officer of the
      Lender, any of its books of account and financial records and any of the
      books of account and financial records of the consolidated subsidiaries,
      when so requested.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>D.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Payment of
      Obligations</FONT></U><FONT face=Arial size=2>. Duly pay and discharge,
      and will cause each of its consolidated subsidiaries to duly pay and
      discharge, all their respective obligations and liabilities, including
      taxes, assessments and governmental charges prior to the date on which
      penalties attach thereto, unless and to the extent only that the same
      shall be contested in good faith and by appropriate proceedings diligently
      prosecuted and against which, if requested by the Lender, the Borrower
      will set up reasonable reserves satisfactory to the Lender.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>E.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Corporate
      Existence</FONT></U><FONT face=Arial size=2>. Maintain its corporate
      existence, continue to engage in business of the same general type as now
      conducted by it and keep its properties in good repair, working order and
      condition, and cause each of its consolidated subsidiaries to do the
      same.</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 5 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>F.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Insurance</FONT></U><FONT face=Arial size=2>. Maintain and cause
      SFB to maintain, with financially sound and reputable insurance carriers,
      insurance, in such amounts against such risks, including but not limited
      to, public liability, property damage and business interruption insurance,
      as is satisfactory to the Lender, and as is customarily carried by
      companies engaged in the same or similar business similarly situated, and
      will upon request of the Lender deliver to it the policies concerned or a
      schedule of all insurance in force. Upon failure of the Borrower or SFB to
      maintain adequate insurance, the Lender may obtain such policies it deems
      necessary as long as the face value of such policies is consistent with
      the actual value of the assets to be covered, and the Borrower agrees that
      the cost thereof may be added to the principal of the Loan.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>G.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Notice</FONT></U><FONT face=Arial size=2>. Except when prohibited
      by Section VIII.Q. herein, promptly notify the Lender in writing of (i)
      any litigation, proceeding or action by any regulator that will restrict
      the ability of SFB to pay dividends, (ii) any litigation or proceeding
      brought against the Borrower or any of its consolidated subsidiaries
      which, if adversely determined, would have a material adverse effect on
      the financial condition, business or operations of the Borrower or any of
      its consolidated subsidiaries, and shall, if requested by the Lender, set
      up such reasonable reserves as are satisfactory to the Lender, and (iii)
      the occurrence of any Event of Default hereunder or any event or condition
      which, with notice or lapse of time, or both, would constitute such an
      Event of Default.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>H.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Financial
      Ratios</FONT></U><FONT face=Arial size=2>. At all times during the term of
      the Loan, the Borrower or SFB, as the case may be, shall comply with the
      following:</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>1.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>SFB shall maintain a Classified
      Assets to Tier 1 Capital + ALLL not to exceed 40% (measured
      quarterly).</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>2.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>SFB shall maintain a Tier I
      Leverage Ratio of at least 9%.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>3.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>SFB shall maintain a Total
      Risk-Based Ratio of at least 12%.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>4.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>Borrower shall maintain a fixed
      charge coverage ratio of at least 1.5:1 times, to be tested on an annual
      basis, based on the fiscal year end financials. The ratio is defined as
      SFB&#146;s annual net profit after taxes minus any gains on sale of securities,
      minus Borrower shareholder distributions, all divided by the Borrower&#146;s
      annual fixed charges. (Fixed charges are defined as the sum total of
      Borrower&#146;s operating expenses and all debt service payments).</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><FONT face=Arial size=2>For purposes of this
      Section V.H. the ratios set forth in subsections 1, 2, and 3 above shall
      each be tested </FONT><U><FONT face=Arial size=2>quarterly</FONT></U><FONT face=Arial size=2>. The ratio set forth in subsection 4 above shall be
      tested annually at Borrower&#146;s fiscal year end.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>I.</FONT></TD>
    <TD WIDTH="101%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Financial
      Covenants</FONT></U><FONT face=Arial size=2>. At all times during the term
      of the Loan, the Borrower shall comply with the following:</FONT></TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>1.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>Neither the Borrower nor SFB
      shall be a party to or under any investigation with respect to any
      corrective, suspension or cease-and-desist order, agreement, consent
      agreement, memorandum of understanding or other regulatory enforcement
      action, proceeding or order with or by, or a party to any commitment
      letter or similar undertaking to, or subject to any directive by, or have
      been a recipient of any supervisory letter from, or have adopted any board
      resolutions at the request of, any Regulatory Agency (other than civil
      fees and flood type violations). A Regulatory Agency means any federal or
      state agency charged with the supervision or regulation of depository
      institutions or holding companies of depository institutions, or engaged
      in the insurance of depository institution deposits, or any court,
      administrative agency or commission or other authority, body or agency
      having supervisory or regulatory authority with respect to the Borrower or
      any of its subsidiaries.</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 6 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD></TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>2.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>Beginning June 30, 2017 Borrower
      shall maintain at least </FONT><B><FONT face=Arial size=2>FIVE HUNDRED
      THOUSAND DOLLARS AND NO/100 ($500,000.00) </FONT></B><FONT face=Arial size=2>in liquid assets (e.g., cash and marketable securities) at all
      times during the term of the Loan.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>J.</FONT></TD>
    <TD WIDTH="101%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Governmental
      Laws</FONT></U><FONT face=Arial size=2>. Comply, and cause each of its
      consolidated subsidiaries to comply, in all material respects, with all
      applicable governmental laws and regulations.</FONT></TD></TR></TABLE><BR>

<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>VI.</FONT></TD>
    <TD WIDTH="101%" COLSPAN="3" STYLE="text-align: justify"><B><U><FONT face=Arial size=2>Negative
      Covenants</FONT></U></B><B><FONT face=Arial size=2>. </FONT></B><FONT face=Arial size=2>Until payment in full of the Note and interest thereon
      the Borrower agrees that, without prior written approval of the Lender,
      which approval will not be unreasonably withheld, it will
not:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="101%" COLSPAN="3" STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>A.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Contingent
      Liabilities</FONT></U><FONT face=Arial size=2>. Guarantee, endorse or
      become liable, directly or indirectly, contingently or otherwise, for the
      obligations of others (except by the endorsement of negotiable instruments
      payable at sight for deposit or collection) or become a party to any
      suretyship, guaranty or other similar type agreement, nor permit any
      consolidated subsidiary to do the same (except as may be provided for
      herein).</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>B.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Other
      Debts</FONT></U><FONT face=Arial size=2>. Hereafter create or assume any
      debt or other liability for money borrowed or the equivalent.</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>C.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Disposal of
      Assets</FONT></U><FONT face=Arial size=2>. Sell, lease, convey or
      otherwise dispose of any of its assets or property except for leases
      entered into in the ordinary course of business, the sale of mortgages in
      the secondary market or other banking transactions in the usual course of
      business, nor permit SFB to do the same; provided, however, should the
      Borrower or SFB propose to sell certain real estate interests, which it
      owns or they own or at any time during the term hereof use to conduct
      business operations, but is not then required for the successful conduct
      of its business, they may do so at prices consistent with the then
      existing market values.</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>D.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Retirement of Term
      Debt</FONT></U><FONT face=Arial size=2>. Retire any long term or funded
      debt entered into prior to or subsequent to the date of this Agreement, at
      a date in advance of its legal obligation to do so, other than retirement
      of the Treasury Securities and the debt evidenced by the
Note.</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>E.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Encumbrances</FONT></U><FONT face=Arial size=2>. Create or permit,
      or permit SFB to create or permit, to exist against any of their
      respective assets now owned or hereafter acquired, any pledge, mortgage,
      lien, encumbrance, or security interest of any kind whatsoever
      except:</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD STYLE="text-align: justify"></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>1.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>existing liens evidenced by
      </FONT><B><I><U><FONT face=Arial size=2>Exhibit
      &#147;A&#148;</FONT></U></I></B><FONT face=Arial size=2>;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD STYLE="text-align: justify"></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>2.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>security interests in favor of
      the Lender which is required by this Agreement;</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD STYLE="text-align: justify"></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>3.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>liens for taxes being contested
      in good faith;</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD STYLE="text-align: justify"></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>4.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>liens accruing under provisions
      of the law in connection with employee benefits; and</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD STYLE="text-align: justify"></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>5.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2>transactions in the normal course
      of banking business, including but not limited to securing public
      deposits, secured borrowing at the discount window and repurchase
      agreements.</FONT></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>F.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Investments</FONT></U><FONT face=Arial size=2>. Make, or permit any
      consolidated subsidiary to make, investments in any other company or
      entity, except: (i) as permitted by this Agreement and (ii) investments
      made by SFB in the ordinary course of
business.</FONT></TD></TR></TABLE><BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 7 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>G.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Conduct of
      Business</FONT></U><FONT face=Arial size=2>. Make, nor permit any
      consolidated subsidiary to make, material changes in the general conduct
      of their respective business.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>H.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Dividends, Stock Purchases,
      etc</FONT></U><FONT face=Arial size=2>. Directly or indirectly declare,
      order, pay or make any cash dividend distribution on account of any shares
      of its capital stock of any class now or hereafter outstanding, if such
      transaction will cause the Borrower to not be in compliance with any of
      its obligations under this Agreement. Redeem, purchase or otherwise
      acquire any shares of its capital stock of any class now or hereafter
      outstanding, if such transaction will cause the Borrower to not be in
      compliance with of any of its obligations under this
  Agreement.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>I.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Acquisition of
      Assets</FONT></U><FONT face=Arial size=2>. Acquire or transfer assets from
      any consolidated subsidiary that would cause the Borrower to not be in
      compliance with the ratios in Section V, Paragraph H.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>J.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Merger or Sale</FONT></U><FONT face=Arial size=2>. Become a party to, or permit SFB to become a party to,
      a sale, a merger, or a consolidation with any other company or sell all or
      substantially all of their assets, except (i) a merger with a consolidated
      subsidiary in which the Borrower is the surviving company (ii) a merger or
      consolidation of two or more subsidiaries of Borrower with each other or
      (iii) where the Loan is to be paid in full as a condition of the sale,
      merger or consolidation.</FONT></TD></TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 border=0>
   <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>VII.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=Arial size=2><B><U>Events of
      Default. </U></B> It shall be considered an Event of Default under this Agreement if: (i) the Borrower
fails to pay any interest or principal within 10 days of the day when due under the terms of the Note; (ii)
the Borrower or consolidated subsidiary fails to pay any other indebtedness of the Borrower or any
consolidated subsidiary to the Lender within 20 days of due date; (iii) any covenant, condition or
provisions, contained in Section V or VI hereof shall be breached or defaulted and such breach or default
shall continue unremedied for a period of thirty (30) days after the occurrence thereof; (iv) any covenant,
condition or provision elsewhere contained in this Agreement shall be breached or defaulted by the
Borrower and such breach or default shall continue unremedied for a period of thirty (30) days after
written notice thereof shall have been given to the Borrower by the Lender; (v) any covenant, condition
or provision contained in any other agreement is breached or defaulted by Borrower or any consolidated
subsidiary the effect of which is to permit any indebtedness of the Borrower of any consolidated
subsidiary to become due prior to its stated maturity; (vi) any representation or warranty made by the
Borrower in this Agreement or any certificate, financial or other statement furnished by the Borrower
pursuant hereto shall prove to be false in any material respect at the time when made; (vii) any
proceeding or action is commenced by or against the Borrower or any of its consolidated subsidiaries
in bankruptcy or seeking reorganization, arrangement, readjustment of its debts, dissolution, liquidation,
winding-up, composition or any other relief under any federal or state bankruptcy or insolvency,
reorganization, liquidation, dissolution, arrangement, composition, readjustment of debtor or any similar
act or law and such action is not stayed within thirty (30) days of the filing thereof, (viii) any judgment
shall be entered against the Borrower or any of its consolidated subsidiaries, or any attachment shall be
made against any property of the Borrower or any of its consolidated subsidiaries, if such judgment or
attachment is in excess of $750,000.00 when entered or made, and if the same remains unappealed,
undischarged, unbounded, or undismissed for a period of thirty (30) days, or (ix) the Borrower shall be
in breach or in default of any non-payment related covenant, condition, or provisions contained in the
Note, the Pledge Agreement or any other agreement between the Borrower and the Lender and such
default remains uncured or unremedied for a period of thirty (30) days after the occurrence thereof.
Upon any Event of Default hereinabove, the Lender may elect after thirty (30) days&#146; notice to cure such
default, except that as to (i), (ii) and (vi) above there are no days to cure, to <i>(i)</i> make immediately due
and payable all sums owned to the Lender hereunder and under the Note without demand, presentment,
protest or notice of any type, all of which are hereby expressly waived, and/or <i>(ii)</i> require the Borrower
to pledge additional collateral to the Lender as security for the payment of such sums, from the
Borrower&#146;s assets and properties, the acceptability and sufficiency of such collateral to be determined
solely by the Lender. The rights and remedies provided in the Loan Documents are cumulative,
concurrent and not exclusive of any rights or remedies provided by law, and may be pursued separately,
successively or together against any Borrower, any property encumbered by the Loan Documents or
any part or parcel thereof, any other collateral, or any one or more of them, at the sole discretion of
Lender, and may be exercised as often as occasion therefor shall arise, all to the maximum extent
permitted by the laws of the State of Florida.
</FONT></TD></TR>
</TABLE><BR>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 8 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>

<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>VIII.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><B><U><FONT face=Arial size=2>Miscellaneous</FONT></U></B><B><FONT face=Arial size=2>.</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>A.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Indirect Acts</FONT></U><FONT face=Arial size=2>. Any act which the Borrower is prohibited from doing
      hereunder shall not be done indirectly through a consolidated subsidiary
      or by any other indirect means.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>B.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>No Waiver</FONT></U><FONT face=Arial size=2>. Neither the failure nor any delay on the part of the
      Lender to exercise any right, power or privilege shall preclude any other
      or further exercise thereof or the exercise of any other right, power or
      privilege. The rights and remedies herein provided are cumulative and not
      exclusive of any rights or remedies provided by law.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>C.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Severability</FONT></U><FONT face=Arial size=2>. In case any one or more of the provisions contained in
      the Agreement or the Note shall be held invalid, illegal or unenforceable
      in any respect, the validity, legality and enforceability of the remaining
      provisions contained in the Note and this Agreement shall not in any way
      be affected or impaired thereby, and this Agreement and the Note shall
      otherwise remain in full force and effect.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>D.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Applicable Law</FONT></U><FONT face=Arial size=2>. This Agreement and the Note and the rights and
      obligations of the parties hereunder, and under the Note and any other
      instruments or documents issued hereunder shall be construed and
      interpreted in accordance with the laws of the State of Florida and shall
      be binding upon and inure to the benefit of the successors and assigns of
      the parties hereto, provided, however, that no rights or obligations under
      this Agreement may be assigned or transferred by the Borrower without the
      prior written consent of the Lender.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>E.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Holidays</FONT></U><FONT face=Arial size=2>. Whenever any payment to be made hereunder shall be
      stated to be due on a Saturday, Sunday or a public holiday under the laws
      of the State of Florida, such payment may be made on the next succeeding
      business day and such extension of time shall in such case be included in
      computing interest, if any, in connection with such payment.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>F.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Waiver</FONT></U><FONT face=Arial size=2>. The Lender may, by written notice to the Borrower, at
      any time and from time to time, waive any Event of Default hereunder. Any
      such waiver shall be for such period and subject to such conditions as
      shall be specified in any such notice, but no such waiver shall extend to
      any subsequent or other Event of Default, or impair any right consequent
      thereon.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>G.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Expense</FONT></U><FONT face=Arial size=2>. The Borrower agrees to pay, or reimburse the Lender
      for, actual out-of-pocket expenses (including legal fees) incurred by the
      Lender in connection with the preparation of, the enforcement of, or the
      preservation of any rights under this Agreement and the Note.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>H.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Counterparts; Effective
      Date</FONT></U><FONT face=Arial size=2>. This Agreement may be signed in
      any number of separate counterparts, no one of which need contain all of
      the signatures of the parties, and as many of such counterparts as shall
      together contain all of the signatures of the parties shall be deemed to
      constitute one and the same instrument. A set of counterparts of this
      Agreement signed by all parties hereto shall be lodged with Lender. This
      Agreement shall become effective upon the receipt by Lender of signed
      counterparts of this Agreement from each of the parties hereto or telex
      confirmation of the signing of counterparts of this Agreement by each of
      the parties hereto.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>I.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Participations</FONT></U><FONT face=Arial size=2>. Borrower recognizes that Lender may enter into a
      participation agreement with other financial institutions, including one
      or more banks or other lenders, whereby Lender will allocate a portion of
      the Loan contemplated hereunder. For the benefit of such other banks and
      lenders, Borrower agrees that such other banks and lenders shall have the
      same rights of set off against Borrower granted Lender in Section III
      hereof. Upon the written request of Borrower, Lender will advise Borrower
      of the names of any participants and the extent of their interest
      herein.</FONT></TD></TR></TABLE><BR>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 9 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>J.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Venue</FONT></U><FONT face=Arial size=2>. The parties hereto agree that venue for any and all actions,
      suits, or other legal proceedings arising under the Loan Documents or
      related thereto shall lie in the appropriate court of competent
      jurisdiction in Polk County, Florida.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>K.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Complete
      Agreement</FONT></U><FONT face=Arial size=2>. The Loan Documents contain
      the final, complete, and exclusive expression of the understanding of
      Borrower and Lender with respect to the transactions contemplated by the
      Loan Documents and supersede any prior or contemporaneous agreement or
      representation, oral or written, by or between the parties related to the
      subject matter hereof.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>L.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Relief from Automatic
      Stay</FONT></U><FONT face=Arial size=2>. The Borrower hereby agrees that,
      in consideration of the Lender funding the Loan, in the event that the
      Borrower shall: (i) file with any bankruptcy court of competent
      jurisdiction or be the subject of any petition under Title 11 of the
      United States Code, as amended ("Title 11"); (ii) be the subject of any
      order for relief issued under Title 11; (iii) file or be the subject of any petition seeking any
      reorganization, arrangement, composition, readjustment, liquidation,
      dissolution or similar relief under any present or future federal or state
      act or law relating to insolvency or bankruptcy, or other relief from
      creditors for debtors; (iv) have sought or consented to or acquiesced in the
      appointment of any trustee, receiver, conservator, or liquidator; or (v)
      be the subject of any order, judgment, or decree entered by any court of
      competent jurisdiction approving a petition filed against such party for
      any reorganization, arrangement, composition, readjustment, liquidation,
      dissolution, or similar relief under any present or future federal or
      state act or law relating to insolvency or bankruptcy, or other relief
      from creditors for debtors, the Lender shall thereupon be entitled to
      relief from any automatic stay imposed by Section 362 of Title 11, or
      otherwise, on or against the exercise of the rights and remedies otherwise
      available to the Lender under this Loan Agreement and the Loan Documents,
      and as otherwise provided by law.</FONT></TD></TR>





    <TR>
    <TD NOWRAP STYLE="vertical-align: top">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>M.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>No Claims/Set Off, Etc.
      </FONT></U><FONT face=Arial size=2>The Borrower acknowledges by the
      execution hereof that as of the date hereof all principal and interest
      evidenced by the Note through the date of this Agreement are
      unconditionally due and owing to the Lender as provided in the said Note
      and that the Borrower has no actions, defenses, demands and/or claims of
      set-off or deduction whatsoever, against (a) the Lender, or (b) the
      indebtedness evidenced by the Note and owed to the Lender, or (c) the
      Pledge Agreement. Furthermore, the Borrower acknowledges that, as of the
      date hereof, the Lender has in no way defaulted or performed any act or
      omission under the Note, the Pledge Agreement or the other Loan Documents
      or any other agreements between the Borrower and the Lender which would
      give rise to any action or actions, cause or causes of actions, suits,
      debts, sums of money, damages, claims, costs, expenses and or demands
      whatsoever, in law or in equity or otherwise, by the Borrower against the
      Lender.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>N.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>WAIVER OF RIGHT TO JURY TRIAL.
      </FONT></U><FONT face=Arial size=2>BORROWER AND LENDER HEREBY KNOWINGLY,
      VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL
      BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
      UNDER OR IN CONNECTION WITH THIS LOAN AGREEMENT AND ANY AGREEMENT
      CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF
      CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
      ACTIONS OF EITHER PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
      LENDER ENTERING INTO THIS AGREEMENT AND MAKING THE LOAN OR EXTENSION OF
      CREDIT EVIDENCED BY THE NOTE.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>O.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Notices</FONT></U><FONT face=Arial size=2>. All notices, requests, and demands to or upon the
      respective parties hereto shall be deemed to have been given or made when
      deposited in the mail, certified and postage prepaid, addressed as follows
      or to such other address as may hereafter be designated in writing by the
      respective parties hereto:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify">
      <P STYLE="text-align: justify"><FONT face=Arial size=2>The Borrower: </FONT></P>
      <P STYLE="text-align: justify"><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES, INC.
      <BR>100 Verdae Boulevard <BR>Suite 100 <BR>Greenville, South Carolina,
      29606 <BR></FONT><FONT face=Arial size=2>Attention: Michael D. Dowling,
      Chief Financial Officer</FONT></P></TD></TR></TABLE><BR>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="37%"><FONT face=Arial size=2>Page 10 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="37%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify">
      <P STYLE="text-align: justify"><FONT face=Arial size=2>The Lender: </FONT></P>
      <P STYLE="text-align: justify"></P>
      <P STYLE="text-align: justify"><FONT face=Arial size=2>CENTERSTATE BANK, NATIONAL
      ASSOCIATION <BR>1101 1<SUP>st</SUP> Street South <BR>Winter Haven, Florida
      33880 <BR>Attention: Ted A. Hicks, Vice President</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=Arial size=2>P.</FONT></TD>
    <TD WIDTH="100%" COLSPAN="2" STYLE="text-align: justify"><U><FONT face=Arial size=2>Definitions</FONT></U><FONT face=Arial size=2>. The following
      definitions shall be used when calculating the ratios in Section V
      Paragraph H.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>1.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><B><FONT face=Arial size=2>Tier I Leverage Ratio
      </FONT></B><FONT face=Arial size=2>= the ratio of Tier 1 capital to total
      assets, as calculated under Part 324 of Title 12 Code of Federal
      Regulations.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>2.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><B><FONT face=Arial size=2>Tier 1 Capital
      </FONT></B><FONT face=Arial size=2>= the meaning given to such term as set
      forth in 12 CFR Section 324.2 and any successor regulation.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>3.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><B><FONT face=Arial size=2>Total Risk-Based Ratio
      </FONT></B><FONT face=Arial size=2>= the meaning given to such term as set
      forth in 12 CFR Section 324.2 and any successor regulation.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>4.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><B><FONT face=Arial size=2>Classified Assets
      </FONT></B><FONT face=Arial size=2>= nonperforming assets, plus loans
      classified as &#147;substandard&#148; or lower as such terms maybe defined in 12 CFR
      Section 324.2.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD VALIGN="TOP" NOWRAP STYLE="text-align: justify"><FONT face=Arial size=2>5.</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><B><FONT face=Arial size=2>ALLL</FONT></B><FONT face=Arial size=2>= allowance for loan losses computed in accordance with
      generally accepted accounting principles, applied on a consistent
      basis.</FONT></TD></TR></TABLE>
<P STYLE="text-align: justify; text-indent: 15pt"><FONT face=Arial size=2>Q. </FONT><U><FONT face=Arial size=2>Confidential Supervisory Information</FONT></U><FONT face=Arial size=2>.
No disclosure, representation, or warranty shall be required to be made (or any
other action taken) pursuant to this Agreement that would involve the disclosure
of confidential supervisory information of a Regulatory Agency by any Party
hereto to the extent prohibited by applicable Law, and to the extent legally
permissible, appropriate substitute disclosures or actions shall be made or
taken under circumstances in which the limitations of this sentence apply.
Confidential supervisory information is defined as any information that is
prepared by, on behalf of, or for the use of the Federal Reserve Board, a
Reserve Bank, or a state or federal banking supervisor, including any
information related to an examination, inspection, or visitation of an
institution. Confidential supervisory information also includes any
correspondence between an institution and its regulators.</FONT></P>
<P align=center><B><FONT face=Arial size=2>REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK. </FONT></B></P>
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    <TD noWrap align=left width="62%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="37%"><FONT face=Arial size=2>Page 11 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="37%"></TD></TR></TABLE><BR>
<P STYLE="text-align: justify"><B><FONT face=Arial size=2>IN WITNESS WHEREOF</FONT></B><FONT face=Arial size=2>, Borrower and Lender have caused these presents to be
executed by their proper officers under due corporate authority, and their
corporate seals to be affixed, this the day and year first above written.
</FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="48%" colSpan=2><B><FONT face=Arial size=2>&#147;BORROWER&#148;</FONT></B></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES,
      INC.,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face=Arial size=2>a South Carolina
      corporation</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>By:&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%"><FONT face=Arial size=2>/s/ Michael D. Dowling</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="47%" ><FONT face=Arial size=2>Michael D.
      Dowling, Chief Financial Officer</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=Arial size=2>(CORPORATE SEAL)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><B><FONT face=Arial size=2>&#147;LENDER&#148;</FONT></B></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><B><FONT face=Arial size=2>CENTERSTATE
  BANK,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><B><FONT face=Arial size=2>NATIONAL
    ASSOCIATION</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face=Arial size=2>a national banking
      association</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%"><FONT face=Arial size=2>/s/ Ted A. Hicks</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="47%" ><FONT face=Arial size=2>Ted A. Hicks,
      Vice President</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="37%"><FONT face=Arial size=2>Page 12 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="37%"></TD></TR></TABLE><BR>
<P STYLE="text-align: center"><B><U><FONT face=Arial size=2>EXHIBIT
&#147;A&#148;</FONT></U></B><B><FONT face=Arial size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(A)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Liens or
      Encumbrances</FONT></U><FONT face=Arial size=2>. Neither Borrower nor SFB,
      its wholly-owned subsidiary, has any liens or encumbrances on their
      respective properties and assets, except for the following: (i) liens for
      taxes, assessments, or governmental charges, carriers&#146;, warehousemen&#146;s,
      repairmen&#146;s, mechanics&#146;, materialmen&#146;s and other like liens, which are
      either not delinquent or are being contested in good faith by appropriate
      proceedings which will prevent foreclosure of such liens, and against
      which adequate cash reserves have been provided; (ii) easements,
      restrictions, minor title irregularities and similar matters which have no
      material adverse effect upon the ownership and use of the affected
      property; (iii) liens or deposits in connection with worker&#146;s
      compensation, unemployment insurance, social security or other insurance
      or to secure customs duties, public or statutory obligations in lieu of
      surety, stay or appeal bonds, or to secure performance of contracts or
      bids, other than contracts for the payment of money borrowed, or deposits
      required by law as a condition to the transaction of business or other
      liens or deposits of a like nature made in the ordinary course of
      business; (iv) liens in favor of the Lender pursuant to the Loan
      Documents; (v) liens evidenced by conditional sales, purchase money
      mortgages or other title retention agreements on, or leases with respect
      to, machinery and equipment (acquired in the ordinary course of business
      and otherwise permitted to be acquired hereunder) which are created at the
      time of the acquisition of such property solely for the purposes of
      securing the Indebtedness incurred to finance the cost of such property,
      provided no such lien shall extend to any property other than the property
      so acquired and identifiable proceeds; (vi) liens granted to the Federal
      Home Loan Bank; (vii) government deposit security pledges; and (viii)
      liens and pledges made in connection with repurchase agreements entered
      into by SFB.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(B)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Guaranty
      Agreements</FONT></U><FONT face=Arial size=2>. Neither Borrower nor SFB,
      its wholly owned subsidiary, is a party to any suretyship, guaranty, or
      other similar type agreement, nor has either of them offered their
      endorsement to any individual or concern which would in any way create a
      contingent liability that does not appear in their financial
      statements.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(C)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Litigation</FONT></U><FONT face=Arial size=2>. To the knowledge of the Borrower, there is no
      litigation or proceeding pending or threatened, financial or otherwise,
      which might have a material adverse effect on the financial condition or
      business affairs of Borrower or SFB, its wholly-owned subsidiary, except
      for the following: None</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(D)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><U><FONT face=Arial size=2>Taxes</FONT></U><FONT face=Arial size=2>. No claims have been assessed and remain unpaid with
      respect to any federal, state and local taxes assessed against Borrower or
      SFB, its wholly-owned subsidiary, except for the following:
  None</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="37%"><FONT face=Arial size=2>Page 13 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="37%"></TD></TR></TABLE><BR>
<P align=center><B><U><FONT face=Arial size=2>EXHIBIT &#147;B&#148;</FONT></U></B><B><FONT face=Arial size=2> </FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><B><U><FONT face=Arial size=2>Subsidiaries of Borrower</FONT></U></B></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="31%"><B><FONT face=Arial size=2>Ownership
  Percentage</FONT></B></TD></TR>
  <TR>
    <TD NOWRAP ALIGN="LEFT" WIDTH="68%"><FONT face=Arial size=2>Southern First Bank</FONT></TD>
    <TD NOWRAP WIDTH="1%" STYLE="text-align: center"></TD>
    <TD NOWRAP WIDTH="31%" STYLE="text-align: center"><FONT face=Arial size=2>100%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><FONT face=Arial size=2>Greenville
      Statutory Trusts I and II</FONT></TD>
    <TD noWrap style="text-align: center" width="1%"></TD>
    <TD noWrap style="text-align: center" width="31%"><FONT face=Arial size=2>100%</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>Loan and Security
Agreement</FONT></TD>
    <TD noWrap align=right width="37%"><FONT face=Arial size=2>Page 14 of 15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES,
      INC.</FONT></TD>
    <TD noWrap align=left width="37%"></TD></TR></TABLE><BR>
<P align=center><B><U><FONT face=Arial size=2>EXHIBIT &#147;C&#148;</FONT></U></B><B><FONT face=Arial size=2> </FONT></B></P>
<P align=justify><FONT face=Arial size=2>The form of the Promissory Note.
</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>Loan and
      Security Agreement</FONT></TD>
    <TD noWrap align=right width="37%"><FONT face=Arial size=2>Page 15 of
      15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="62%"><FONT face=Arial size=2>SOUTHERN FIRST
      BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="37%"></TD></TR></TABLE><BR>
<P align=center><B><U><FONT face=Arial size=2>EXHIBIT &#147;D&#148;</FONT></U></B><B><FONT face=Arial size=2> </FONT></B></P>
<P align=justify><FONT face=Arial size=2>The Collateral </FONT></P>
<P align=justify><FONT face=Arial size=2>850,000 shares of Southern First Bank,
Share Certificate No. 001 </FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>southern3279391-ex102.htm
<DESCRIPTION>PROMISSORY NOTE, DATED AS OF JUNE 30, 2017
<TEXT>

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<BR>
<P align=right><B><FONT face=Arial size=2>Exhibit 10.2 </FONT></B></P>
<P align=center><B><U><FONT face=Arial size=2>PROMISSORY
NOTE</FONT></U></B><B><FONT face=Arial size=2> </FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="3%"><FONT face=Arial size=2>$15,000,000.00</FONT></TD>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=right width="47%"><FONT face=Arial size=2>June 30, 2017</FONT></TD></TR></TABLE><BR>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><B><FONT face=Arial size=2>FOR VALUE RECEIVED</FONT></B><FONT face=Arial size=2>, the undersigned, </FONT><B><FONT face=Arial size=2>SOUTHERN
FIRST BANCSHARES, INC.,</FONT></B><FONT face=Arial size=2> a South Carolina
corporation (the "Borrower"), promises to pay to the order of </FONT><B><FONT face=Arial size=2>CENTERSTATE BANK, NATIONAL ASSOCIATION</FONT></B><FONT face=Arial size=2>, a national banking association (the "Lender"), in lawful
money of the United States of America and in immediately available funds, the
principal amount of </FONT><B><FONT face=Arial size=2>FIFTEEN MILLION AND 00/100
DOLLARS ($15,000,000.00) </FONT></B><FONT face=Arial size=2>, or such lesser
principal amount as may then constitute the unpaid aggregate principal amount of
the Loan made by the Lender to the Borrower pursuant to the Loan and Security
Agreement (defined herein below) on each designated installment payment date
provided in the Loan Agreement, on the &#147;Maturity Date&#148; (as defined in the Loan
Agreement). This Promissory Note represents a secured revolving line of credit
loan and may revolve; thus, any and all sums advanced hereunder may be repaid
and re-borrowed subject to the terms and conditions hereof and of the Loan
Agreement (as defined in the &#147;Loan Agreement&#148; described and defined below).
</FONT></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><FONT face=Arial size=2>The Borrower further agrees to pay
interest, in like money, on the unpaid principal amount owing hereunder from
time to time on the dates and at the rates and at the times specified in Section
II, A of the Loan Agreement, and after the occurrence of an Event of Default, as
otherwise specified in the Loan Agreement. </FONT></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><FONT face=Arial size=2>If any payment of this Note becomes due
and payable on a day other than a business day, the maturity thereof shall be
extended to the next succeeding business day, and with respect to payments of
principal, interest thereon shall be payable at the then applicable rate during
such extension. </FONT></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><FONT face=Arial size=2>This Note is the &#147;Note&#148; referred to in
that certain Loan and Security Agreement, dated as of the date hereof (as
amended, restated, modified or supplemented from time to time, the "Loan
Agreement"), by and between the Borrower and the Lender. This Note is subject
to, and entitled to, all provisions and benefits of the Loan Agreement
(including all indemnities contained therein) and is subject to optional and
mandatory prepayment in whole or in part as provided therein. Capitalized terms
used herein and not defined shall have the respective meanings given such terms
in the Loan Agreement. The Loan Agreement, among other things, provides for the
making of a loan by the Lender to Borrower from time to time in an amount not to
exceed at any time outstanding the dollar amount first above mentioned.
</FONT></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><FONT face=Arial size=2>Upon the occurrence and during the
continuance of any one or more of the Events of Default specified in the Loan
Agreement, the Lender or any other holder of this Note shall have the right, in
addition to its rights under applicable law and the Loan Agreement, to take any
and all of the following actions, to enforce its claims against Borrower: (a)
declare the Loan immediately due and payable without presentment, demand,
protest or any other action or obligation of the Lender; and (b) immediately
terminate any commitment to fund additional sums under the Loan Agreement.
</FONT></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><FONT face=Arial size=2>This Note shall be entitled to the
benefits of the Loan Agreement and to the other Loan Documents (to the extent
and with the effect as therein defined and provided). </FONT></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><FONT face=Arial size=2>The Borrower hereby waives presentment,
demand, protest and notice of any kind. No failure to exercise, and no delay in
exercising any rights hereunder on the part of the holder hereof shall operate
as a waiver of such rights. </FONT></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><B><FONT face=Arial size=2>THE VALIDITY, INTERPRETATION, AND
ENFORCEMENT OF THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF FLORIDA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF. </FONT></B></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=Arial size=2>Promissory Note</FONT></TD>
    <TD noWrap align=right width="35%"><FONT face=Arial size=2>Page 2 of 3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=Arial size=2>PROGRESS FINANCIAL CORPORATION</FONT></TD>
    <TD noWrap align=left width="35%"></TD></TR></TABLE><BR>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><B><FONT face=Arial size=2>THE BORROWER ACKNOWLEDGES THAT ANY
DISPUTE OR CONTROVERSY BETWEEN THE BORROWER AND THE LENDER WOULD BE BASED ON
DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT. ACCORDINGLY, BY EXECUTION OR
ACCEPTANCE HEREOF, AS THE CASE MAY BE, THE LENDER AND THE BORROWER HEREBY WAIVE
TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR
TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST THE BORROWER ARISING
OUT OF THIS NOTE OR ANY OTHER LOAN DOCUMENT OR IN CONNECTION WITH THE COLLATERAL
OR ANY LIEN OR BY REASON OF ANY OTHER CAUSE OR DISPUTE WHATSOEVER BETWEEN THE
BORROWER AND THE LENDER OF ANY KIND OR NATURE. </FONT></B></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><B><FONT face=Arial size=2>THE BORROWER AND THE LENDER EACH
HEREBY AGREE THAT THE CIRCUIT COURT IN AND FOR POLK COUNTY, FLORIDA AND THE
UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, SHALL HAVE
EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE
BORROWER AND THE LENDER, PERTAINING DIRECTLY OR INDIRECTLY TO THIS NOTE, THE
LOAN AND SECURITY AGREEMENT, OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING
HEREFROM OR THEREFROM OR THE COLLATERAL. THE BORROWER EXPRESSLY SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED
IN SUCH COURTS. THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE
DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE LENDER FOR THE ENFORCEMENT
BY THE LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE
JURISDICTION. </FONT></B></P>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><B><FONT face=Arial size=2>THE FOREGOING WAIVERS HAVE BEEN MADE
WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL
CONSEQUENCES THEREOF. </FONT></B></P>
<P align=center><B><FONT face=Arial size=2>REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK.</FONT></B></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=Arial size=2>Promissory Note</FONT></TD>
    <TD noWrap align=right width="35%"><FONT face=Arial size=2>Page 3 of 3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=Arial size=2>PROGRESS FINANCIAL CORPORATION</FONT></TD>
    <TD noWrap align=left width="35%"></TD></TR></TABLE><BR>
<P ALIGN="JUSTIFY" STYLE="text-indent: 15pt"><B><FONT face=Arial size=2>IN WITNESS WHEREOF,</FONT></B><FONT face=Arial size=2> the undersigned hereby executes this Note under seal as of
the date written above. </FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><B><FONT face=Arial size=2>&#147;BORROWER&#148;</FONT></B></TD></TR>
  <TR style="VERTICAL-ALIGN: bottom">
    <TD style="TEXT-ALIGN: left" noWrap width="50%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: left" noWrap width="2%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: left" noWrap width="48%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="48%" colSpan=2><B><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES,
      INC.,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp;</TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face=Arial size=2>a South Carolina
      corporation</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>By:&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%"><FONT face=Arial size=2>/s/ Michael D. Dowling</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="47%"><FONT face=Arial size=2>Michael D.
      Dowling, Chief Financial Officer</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=Arial size=2>(CORPORATE SEAL)</FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="48%" colSpan=2></TD></TR></TABLE><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>southern3279391-ex103.htm
<DESCRIPTION>PLEDGE AGREEMENT, DATED AS OF JUNE 30, 2017
<TEXT>

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<P align=right><B><FONT face=aRIAL size=2>Exhibit 10.3 </FONT></B></P>
<P align=center><B><U><FONT face=aRIAL size=2>PLEDGE
AGREEMENT</FONT></U></B><B><FONT face=aRIAL size=2> </FONT></B></P>
<P align=justify><B><FONT face=aRIAL size=2>THIS PLEDGE
AGREEMENT</FONT></B><FONT face=aRIAL size=2> (herein &#147;Agreement&#148;) made and
entered into this 30<SUP>th</SUP> day of June, 2017, by and between
</FONT><B><FONT face=aRIAL size=2>SOUTHERN FIRST BANCSHARES,
INC.</FONT></B><FONT face=aRIAL size=2>, a South Carolina corporation (herein
&#147;Pledgor&#148; or &#147;Borrower&#148;), having an address of 100 Verdae Boulevard, Suite 100,
Greenville, South Carolina 29606 and </FONT><B><FONT face=aRIAL size=2>CENTERSTATE BANK, NATIONAL ASSOCIATION, </FONT></B><FONT face=aRIAL size=2>a national banking association (herein &#147;Bank&#148;), having an address of 1101
1<SUP>st</SUP> Street South, Winter Haven, Florida 33880. </FONT></P>
<P align=center><B><U><FONT face=aRIAL size=2>RECITALS</FONT></U></B><B><FONT face=aRIAL size=2>: </FONT></B></P>
<P align=justify><FONT face=aRIAL size=2>A. Pledgor has requested Bank to make a
secured revolving line of credit loan to Pledgor in the principal amount of
</FONT><B><U><FONT face=aRIAL size=2>$15,000,000.00</FONT></U></B><FONT face=aRIAL size=2> (the &#147;Loan&#148;) the terms of which are governed by that certain
Loan and Security Agreement by and between the Pledgor/Borrower and the Bank
dated the date hereof (the &#147;Loan Agreement&#148;). </FONT></P>
<P align=justify><FONT face=aRIAL size=2>B. As a condition for Bank making the
Loan to Pledgor, Pledgor is required to secure payment thereof by a pledge of
shares of stock (the &#147;Pledged Instruments&#148;). </FONT></P>
<P align=justify><FONT face=aRIAL size=2>C. Pledgor has executed and delivered
to Bank a Promissory Note in the principal amount of the Loan (the &#147;Note&#148;).
</FONT></P>
<P align=justify><B><FONT face=aRIAL size=2>NOW, THEREFORE</FONT></B><FONT face=aRIAL size=2>, in consideration of the premises and mutual covenants herein
contained, and in order to induce Bank to make the Loan to Pledgor and in
consideration of other Loan, advances and extensions of credit, and renewals and
modifications thereof, made or to be made by Bank to Pledgor, the parties hereto
agree as follows: </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 1.
PLEDGE</FONT></U></B><FONT face=aRIAL size=2>. To secure the payment and
performance of the Obligations described in Section 2 below, Pledgor hereby
pledges, hypothecates, assigns, transfers, sets over and delivers unto Bank and
grants to Bank a security interest in (in each case, for the benefit of Bank and
any other holder or holders of the Obligations described in Section 2) the
following: </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) The Pledged Instruments hereinafter
described and the certificates, if any, representing the Pledged Instruments,
and all cash, securities, dividends, options, rights, warrants, interest, notes
and other property at any time and from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged
Instruments: </FONT></P>
<P ALIGN="JUSTIFY" STYLE="margin-left: 15pt; margin-right: 15pt"><FONT face=aRIAL size=2>100% of the issued and outstanding
stock (consisting of 850,000 shares) of </FONT><B><FONT face=aRIAL size=2>SOUTHERN FIRST BANK, </FONT></B><FONT face=aRIAL size=2>a South Carolina
banking corporation, represented by Share Certificate No. 001; and </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(B) All securities which Pledgor may be
entitled to, in substitution for, or in addition to any of the foregoing, and
all certificates and instruments representing or evidencing such securities,
together with the interest coupons (if any) attached thereto, and all cash,
securities, interest, dividends, options, rights, warrants, notes and other
property at any time and from time to time received, receivable, deposited to
the account of Pledgor with the Issuer or with a financial intermediary or
otherwise distributed in respect of or in exchange for any or all thereof.
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>All of the foregoing together with any
products of proceeds thereof being herein collectively called the &#147;Pledged
Collateral&#148;. </FONT></P>
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    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge
      Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 2 of
      9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN
      FIRST BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 2. SECURITY FOR
OBLIGATION</FONT></U></B><FONT face=aRIAL size=2>. This Agreement secures the
payment and performance of: </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) The due and punctual payment of the
Note including any renewals, extensions, modifications or changes in the form of
indebtedness, together with accrued interest thereon and all other agreements
executed in conjunction with the Loan and extension of credit evidenced by the
Note (and all renewals, </FONT><FONT face=aRIAL size=2>extensions,
modifications, or changes in the form thereof); </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(B) The full and prompt payment of all
other obligations of Borrower to Bank, whether now existing or hereafter
arising, whether direct or indirect, contingent or absolute; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(C) All other obligations, debts, and
liabilities of Pledgor arising out of, in connection with or relating to this
Agreement or other obligations of Borrower to Bank (and all renewals,
extensions, and modifications thereof); </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(D) All reasonable costs and expenses,
including without limitation, reasonable attorney fees (including in-house legal
counsel), paralegal fees and costs incurred by Bank in connection with the
preparation and administration of this Agreement and enforcement of any of the
rights of Bank hereunder whether incurred prior to or on any trial, appellate
proceedings, any proceedings in bankruptcy or any post judgment
proceedings;</FONT></P>
<P align=justify><FONT face=aRIAL size=2>(E) All indebtedness, liabilities and
obligations arising or in connection with the Loan between Borrower/Pledgor and
Bank and any other documents executed in conjunction with the Loan; and
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>All of the foregoing shall constitute
the &#147;Obligations&#148; secured hereby. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 3. REPRESENTATIONS AND
WARRANTIES</FONT></U></B><FONT face=aRIAL size=2>. Pledgor hereby represents and
warrants as follows: </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) Pledgor is the legal and beneficial
owner of the Pledged Collateral, free and clear of all liens, security
interests, charges and encumbrances of every kind and nature; each share of
stock, bond, promissory note or other type of security comprising the Pledged
Collateral is duly authorized, validly issued, fully paid and non-assessable;
and Pledgor has legal title to the Pledged Collateral and good right and lawful
authority to pledge, assign and deliver the Pledged Collateral in the manner
hereby contemplated; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(B) The execution and delivery of this
Agreement and the performance of its terms will not result in any violation of
any provision of the articles of incorporation or bylaws of the issuer of any
Pledged Collateral, or any other agreement, the subject of which is the Pledged
Collateral; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(C) When other or substituted Pledged
Collateral is pledged hereunder, Pledgor will be the legal and beneficial owner
of such Pledged Collateral, free and clear or all liens, security interests,
charges and encumbrances of every kind and nature; and each share of stock,
bond, promissory note or other type of security comprising such Pledged
Collateral will have been duly authorized, validly issued and be fully paid and
non-assessable; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(D) This Agreement constitutes a legal,
valid and binding obligation of Pledgor and upon delivery of the Pledged
Instruments to Bank or its agents, or if the Pledged Instruments are in
possession of a financial intermediary when it makes book entry or otherwise
identifies the Pledged Instruments as being subject to Bank&#146;s security interest,
or if the Pledged Instruments are uncertificated, upon registration of the
pledge with the issuer of the Pledged Instruments, this Agreement shall create a
valid first lien upon and a perfected security interest in the Pledged
Instruments and the proceeds thereof, subject to no prior security interest,
lien charge, encumbrance or agreement purporting to grant to any third party a
security interest in the property or assets of Pledgor which constitute the
Pledged Collateral; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(E) (i) That all certificates and
instruments evidencing the Pledged Collateral and delivered to Bank hereunder
shall be accompanied by proper instruments of assignment and/or stock and/or
bond powers executed by Pledgor in accordance with Bank&#146;s instructions with
Pledgor&#146;s signature guaranteed by a national bank or a firm that is a member of
the New York Stock Exchange; and (ii) that with respect to any of the Pledged
Collateral represented by uncertificated securities or registered in the name of
or in the possession of a financial intermediary, Pledgor shall execute all such
written notices or instructions to the issuer of financial intermediary for such
Pledged Collateral as Bank may deem necessary or desirable in order to perfect
and maintain the security interest in same </FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge
      Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 3 of
      9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN
      FIRST BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 4. COVENANTS OF
PLEDGOR</FONT></U></B><FONT face=aRIAL size=2>. Pledgor hereby covenants that
until all of the Obligations to Bank have been satisfied in full: </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) It will NOT: (i) sell, convey or
otherwise dispose of any of the Pledged Collateral or any interest therein or
create, incur or permit to exist any pledge, mortgage, lien, charge, encumbrance
or any security interest whatsoever in or with respect to any of the Pledged
Collateral or the proceeds thereof, other than that created hereby; or (ii) if
the Pledged Collateral is a security not traded in an established market,
consent to or approve the authorization and issuance of: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(1)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>Any additional shares of any class of capital stock in
      the issuer of the Pledged Collateral,</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(2)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>Any securities convertible voluntarily by the holder
      thereof or automatically upon the occurrence or nonoccurrence of any event
      or condition into, or exchangeable for any such shares of corporate stock;
      and</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(3)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>Any warrants, option, rights or other commitments
      entitling any person to purchase or otherwise acquire any such shares of
      corporate stock.</FONT></TD></TR></TABLE>
<P align=justify><FONT face=aRIAL size=2>(B) It will: (i) at its own expense,
defend Bank&#146;s right, title, and security interest in an to the Pledged
Collateral against the claims of any person, firm, corporation or other entity;
(ii) pay promptly when due all taxes, assessments and charges affecting the
Pledged Collateral; (iii) procure, execute, and deliver from time to time any
endorsement, assignment, financing statement, and other writing deemed necessary
or appropriate by Bank to perfect, maintain and protect the security interest
granted hereunder and the priority thereof; and (iv) promptly pay to Bank the
amount of all costs and expenses of Bank, including but not limited to,
reasonable attorneys&#146; fees incurred by Bank in connection with this Agreement
and the enforcement of the rights of Bank hereunder. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 5. AUTHORIZED ACTION BY
BANK</FONT></U></B><FONT face=aRIAL size=2>.</FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) Upon an Event of Default, Pledgor
is deemed to appoint Bank as Pledgor&#146;s attorney-in-fact for the purpose of
carrying out the provisions of this Agreement and taking any action and
executing any instrument which Bank may deem necessary or advisable to
accomplish the purposes hereof, which appointment shall be irrevocable and
coupled with an interest. </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(B) Bank shall have the right to:
appoint one or more sub-agents for the purpose of retaining physical possession
of the certificates or instruments representing or evidencing the Pledged
Collateral, which may be held (in the discretion of Bank) in the name of
Pledgor, endorsed, and assigned in blank or in favor of Bank, or in the name of
Bank or any nominee or nominees of Bank or a sub-agent appointed by Bank.
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>So long as no Event of Default has
occurred, Bank shall deliver promptly to Pledgor, upon written demand from
Pledgor, all notices statements, or other communications received by Bank or its
nominee as registered owner, such proxy or proxies to vote and take action with
respect to the Pledged Collateral that is not otherwise prohibited by the
provisions of this Agreement. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 6.
INCOME</FONT></U></B><FONT face=aRIAL size=2>. </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) So long as there is no occurrence
of an Event of Default, or any such event which with the giving of notice or
lapse of time or both would become an Event of Default, shall occur and be
continuing, Pledgor shall be entitled to receive and retain any and all ordinary
cash dividends and regularly scheduled interest payable on the Pledged
Collateral, but any and all stock and/or liquidating dividends, distributions in
property, returns of capital or other distributions made on or in respect of the
Pledged Collateral, are to be held as additional Pledged Collateral subject to
the terms of this Agreement; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(B) Upon the occurrence and during the
continuance of an Event of Default, or any such event which with the giving of
notice or lapse of time or both would become an Event of Default, shall occur
and be continuing, Pledgor shall be entitled to receive and retain any and all
ordinary cash dividends and regularly scheduled interest payable on the Pledged
Collateral, but any and all stock and/or liquidating dividends, distributions in
property, return of capital or other distribution made on or in respect of the
Pledged Collateral, are to be held as additional Pledged Collateral subject to
the terms of this Agreement; </FONT></P>
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    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge
      Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 4 of
      9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN
      FIRST BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<P align=justify><FONT face=aRIAL size=2>(C) Upon the occurrence and during the
continuance of Event of Default, or an event which with the giving of notice or
lapse of time or both would become an Event of Default, all right of Pledgor to
receive the ordinary cash dividends and regularly scheduled interest payable on
the Pledged Collateral pursuant to Section 6(A) shall cease, and all such rights
shall thereupon become vested in Bank. Any and all money and other property paid
over to or received by Bank pursuant to the provisions of this Section 6 (C)
shall be retained by Bank as part of the Pledged Collateral and applied to such
Obligations of Pledgor and in such order as Bank shall determine in its sole
discretion. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 7. EVENTS OF
DEFAULT</FONT></U></B><FONT face=aRIAL size=2>. If the Pledged Collateral shall
at any time become unsatisfactory to Bank, or if Bank shall at any time deem
itself insecure, or upon the happening of any of the following events, or the
occurrence of an event of default as defined in the Note, or any other written
agreement between Bank and Pledgor or Bank and Borrower, or a breach in any
material respect of any representation, warranty, or covenant of Pledgor
contained in this Agreement shall have occurred and be continuing, each of which
shall constitute a default hereunder (herein referred to as an &#147;Event of
Default&#146;), then Bank shall have the right as to Pledgor, and notwithstanding
that Borrower may not be in default of the Loan or any other Obligation to Bank,
to deem all Obligations of Pledgor to Bank, at the option of Bank, without
notice or demand, due and payable: </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) Failure of Borrower to pay in full,
when due, whether at maturity or acceleration, any principal installment of the
Note or interest installment thereon; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(B) A default or an event of default as
defined in the Note, the Loan Agreement or other evidence of an Obligation held
by Bank should occur and not be remedied within any cure period, if any,
provided in such Note or other evidence of an Obligation; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(C) Any material default shall occur on
the part of Pledgor in the due observance or performance of any covenant,
agreement or other provision of this Agreement, or any other document, agreement
or instrument executed and delivered in connection with this Agreement;
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>(D) The issuing of any attachment, levy
of execution, garnishment or other judicial process against any of the Pledged
Collateral, </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(E) Pledgor or Borrower shall (i) have
an order for relief entered with respect to it under the United States
Bankruptcy Code; (ii) not pay, or admit in writing its inability to pay its
debts generally as they become due; (iii) make an assignment for the benefit of
creditors; (iv) apply for, seek, consent to, or acquiesce in the appointment of
a receiver, custodian, trustee, examiner, liquidator or similar official for it
or any substantial part of its property; (v) institute any proceeding seeking an
order for relief under the United States Bankruptcy Code or seeking to
adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up
liquidation, reorganization, arrangement, adjustment or composition of it or its
debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors, or fail to file an answer or other pleading denying the
material allegations of any such proceeding filed against it; (vi) be
&#147;Insolvent&#148; as such term is defined in the United States Bankruptcy Code; (vii)
have concealed, removed, or permitted to be concealed or removed, any part of
its properties or assets, with intent to hinder, delay or defraud its creditors
or any of them or made or suffered a transfer of any of its property which may
be fraudulent under any bankruptcy, fraudulent assets, with intent to hinder,
delay or defraud its creditors or any of them or made or suffered a transfer of
any of its property which may be fraudulent under any bankruptcy, fraudulent
conveyance or similar law; or shall have made any transfer of its property to or
for the benefit of a creditor at a time when other creditors similarly situated
have not been paid; (viii) take any corporate action to authorize or effect any
of the foregoing actions set forth in this subsection, or (ix) fail to contest
in good faith any appointment or proceeding described in any subsection;
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>(F) Without the application, approval
or consent, a receiver, trustee, examiner, liquidator or similar official shall
be appointed for Pledgor or Borrower or any part of its property or a proceeding
described in subsection (E)(v) shall he instituted against Pledgor and such
appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of thirty (30) consecutive days; </FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge
      Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 5 of
      9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN
      FIRST BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<P align=justify><FONT face=aRIAL size=2>(G) Pledgor further grants a security
interest in any of the Pledged Collateral; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(H) Pledgor fails to do all things
necessary to preserve and maintain the value and collectability of the Pledged
Collateral, including, but not limited to, the payment of taxes and premiums on
policies of insurance on the due date without benefit of the grace period, and
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>(I) Failure of Pledgor after request by
Bank, to furnish financial information or to permit Inspection of Pledgor&#146;s
books and records, which failure shall continue uncured for ten (10) days after
notice of such default from Bank to Pledgor. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 8. REMEDIES UPON
DEFAULT</FONT></U></B><FONT face=aRIAL size=2>. Upon the occurrence of any Event
of Default, then, in addition to having the right to exercise any rights and
remedies of a secured party upon default under the Uniform Commercial Code in
effect in the State of Florida, or any other applicable statute or rule of law
or equity, Bank may, in its sole discretion, foreclose or otherwise enforce
Bank&#146;s security interest in the Pledged Collateral (without resorting to any
other property or proceeding against any other party primarily or secondarily
liable under or securing the Loan) in any manner permitted by law or provided
for in this Agreement, sell the Pledged Collateral, or any part thereof, at any
public or private sale or at any broker&#146;s board or on any securities exchange,
for cash, upon credit or for future delivery, as Bank shall deem appropriate. To
the extent that notice of sale shall be required to be given by law, Bank shall
give Pledgor at least (5) business days&#146; written notice of Bank&#146;s intention to
make any such public or private sale or sale at any broker&#146;s board or on any
such securities exchange. Notwithstanding the foregoing, Pledgor recognizes that
Bank may be unable to effect a public sale of all or part of the Pledged
Collateral and maybe compelled to resort to a private sale to a restricted group
of purchasers. Pledgor acknowledges that any such private sale maybe at prices
and on terms less favorable than those of public sale, and agrees that such
private sale shall be deemed to have been made in a commercially reasonable
manner and that Bank has no obligation to delay sale of any Pledged Collateral
to permit the issuer thereof to register it for public sale under any applicable
laws Pledgor hereby acknowledges that sale of the Pledged Collateral by any
methods described in this Section 8 would constitute a commercially reasonable
disposition thereof within the meaning of the Uniform Commercial Code as in
effect in the State of Florida </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 9. APPLICATION OF
PROCEEDS OF SALE</FONT></U></B><FONT face=aRIAL size=2>. The proceeds of Pledged
Collateral sold pursuant to Section 8 herein shall be applied by Bank as
follows: </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) First, to the payment of the costs
and expenses of such sale, including the out-of-pocket expenses of Bank and the
reasonable fees and out-of-pocket expenses of counsel employed in connection
with enforcing its right under this Agreement; </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(B) Second, to the payment or
prepayment of the Note, with proceeds to be applied to interest accrued and
unpaid to the date of application, then in payment of principal of the Note and
thereafter to the payment or prepayment of any other Obligations of Borrower and
Pledgor to Bank in such order as Bank may determine in its sole discretion; and,
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>(C) Third, the balance (if any), of
such proceeds shall be paid to Pledgor, its successors or assigns, or as a court
of competent jurisdiction may direct. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 10. NO WAIVER; CUMULATIVE
REMEDIES</FONT></U></B><FONT face=aRIAL size=2>. No failure on the part of Bank
to exercise, and no delay in exercising, any right power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy by Bank preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided
bylaw. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 11. EXTENT OF
OBLIGATION</FONT></U></B><FONT face=aRIAL size=2>. Pledgor hereby agrees that
from time to time, without notice or demand and without affecting or impairing
in anyway the rights of Bank with respect to the Pledged Collateral or the
Obligations of Pledgor hereunder, Bank may: </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(A) Renew, compromise, extend,
accelerate or change the time for payment or the terms of the Obligations
secured hereby, or any part thereof; </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge
      Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 6 of
      9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN
      FIRST BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<P align=justify><FONT face=aRIAL size=2>(B) Exchange, enforce, waive, release
apply and direct the order or manner of sale of any and all collateral for the
Obligations, including, without limitation, in the case of foreclosure after the
occurrence of an Event of Default hereunder, the Pledged Collateral, as Bank, in
its sole discretion, may determine; and/or </FONT></P>
<P align=justify><FONT face=aRIAL size=2>(C) Release or substitute Borrower or
any one or more endorsers. Pledgor waives any right to require Bank to (a)
proceed against Borrower; (b) proceed against or exhaust any security held for
the Obligations, or (c) pursue any other remedy whatsoever. Pledgor waives any
defense based upon or arising out of disability or other defense or the
cessation of liability of either Borrower or any other person, and, until
payment in full of the Obligations, waives any right of subrogation or right to
proceed against Borrower or any other person or to participate in any security
for the Obligations. Pledgor hereby acknowledges and agrees that Bank may
foreclose on any security held by it by one or more judicial or nonjudicial
sales, or exercise any other right or remedy it may have against Borrower or
Pledgor or any security held by it for the Obligations without affecting or
impairing in anyway the rights of Bank with respect to the Pledged Collateral or
the Obligations of Pledgor hereunder, Pledgor waives any defense arising out of
any such election by Bank, even though such election operates to impair or
extinguish any right of reimbursement or subrogation or other right or remedy of
Pledgor against Borrower or any such security. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 12.
TERMINATION</FONT></U></B><FONT face=aRIAL size=2>. This Agreement shall
terminate when the Note and all other Obligations of Borrower to Bank have been
fully paid and performed, at which time Bank shall reassign and redeliver,
without recourse upon or warranty by Bank and at the expense of Pledgor, such of
the Pledged Collateral (if any) still held by it hereunder, together with
appropriate instrument(s) of reassignment and release. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 13.
NOTICES.</FONT></U></B><FONT face=aRIAL size=2> Any written notice, demand or
request that is required to be made in any of the Loan Documents shall be served
in person, or by registered or certified mail, return receipt requested, or by
express mail or similar service, addressed to the party to be served at the
address set forth in the first paragraph hereof. The addresses stated herein may
be changed as to the applicable party by providing the other party with notice
of such address change in the manner provided in this paragraph. In the event
that written notice, demand or request is made as provided in this paragraph,
then in the event that such notice is returned to the sender by the United
States postal system or the courier service because of insufficient address or
because the party has moved or otherwise, other than for insufficient postage or
payment to the courier, such writing shall be deemed to have been received by
the party to whom it was addressed three (3) days after such writing was
initially placed in the United states postal system or one (1) day after it was
deposited with the courier service with the postage or cost thereof prepaid in
full by the sender. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 14. DEGREE OF
CARE</FONT></U></B><FONT face=aRIAL size=2>. Beyond the exercise of reasonable
care to assure the safe custody of the Pledged Collateral while held hereunder,
Bank shall have no duty or liability to preserve the right pertaining thereto
including but not limited to the failure or refusal to exercise any conversion,
options, or warrants, present any Pledged Collateral for redemption, sell any of
the Pledged Collateral at the request of Pledgor, and is relieved of all
responsibility to Pledgor. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 15. BINDING
AGREEMENT</FONT></U></B><FONT face=aRIAL size=2>. This Agreement and the terms,
covenants and conditions hereof, shall be binding upon and inure to the benefit
of the parties hereto, Bank and to each holder of the Note, and their respective
successors and assigns. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 16.
MISCELLANEOUS</FONT></U></B><FONT face=aRIAL size=2>. The Recitals are hereby
incorporated herein by reference and made a part hereof. Neither this Agreement
nor any provisions hereof may be amended, modified, waived, discharged or
terminated orally, nor may any of the Pledged Collateral be released except by
an instrument in writing duly signed by or on behalf of Bank hereunder (which
signing may be done only upon the request or with the concurrence of Bank). The
Section headings used herein are for convenience of reference only and shall not
define or limit the provisions of this Agreement. This Agreement embodies the
entire agreement between the parties concerning the matter dealt with herein and
supersedes all prior agreements or understandings as may relate to the proposed
transaction completed hereby. </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge
      Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 7 of
      9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN
      FIRST BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 17.
SEVERABILITY</FONT></U></B><FONT face=aRIAL size=2>. In case any lien, security
interest or other right of any party hereto shall be held to be invalid, illegal
or unenforceable, such invalidity, illegality, or unenforceability shall not
affect any other lien, security interest or other right granted hereby.
</FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 18. WAIVER OF VENUE;
JURISDICTION</FONT></U></B><FONT face=aRIAL size=2>. Pledgor hereby waives any
plea of jurisdiction or venue as not being a resident of Polk County Florida
where suit is instituted and hereby specifically authorizes any action brought
upon the enforcement of this Agreement by Bank to be instituted and prosecuted
in either the Circuit Court of Polk County in the State of Florida or the United
States District Court situated in the State of Florida at the election of Bank
and submits to the jurisdiction of such Court. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 19.
EFFECTIVENESS</FONT></U></B><FONT face=aRIAL size=2>. The terms &#147;Pledgor&#148;,
&#147;Borrower&#146; and the &#145;Bank&#148; as used herein shall include all parties to this
instrument, legal representatives and the successors and assigns of a
corporation. </FONT></P>
<P align=justify><B><U><FONT face=aRIAL size=2>SECTION 20. GOVERNING
LAW</FONT></U></B><FONT face=aRIAL size=2>. This Agreement shall be governed by
and construed in accordance with the laws of the State of Florida without giving
effect to principles of conflict of laws, regardless of the citizenship,
residency, location or domicile of Pledgor. </FONT></P>
<P align=justify><B><FONT face=aRIAL size=2>SECTION 21. WAIVER OF JURY TRIAL.
BANK AND PLEDGOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT
EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY AGREEMENT
CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF EITHER
PARTY, THIS PROVISION IS A MATERIAL INDUCEMENT FOR&#146;BANK ENTERING INTO THIS
AGREEMENT. </FONT></B></P>
<P align=justify><B><FONT face=aRIAL size=2>IN WITNESS WHEREOF</FONT></B><FONT face=aRIAL size=2>, the parties hereto have caused this Agreement to be duly
executed as of the date first above written. </FONT></P>
<P align=center><B><FONT face=aRIAL size=2>REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK. </FONT></B></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge
      Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 8 of
      9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN
      FIRST BANCSHARES, INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<DIV align=right>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="48%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><B><FONT face=Arial size=2>&#147;PLEDGOR/BORROWER&#148;</FONT></B></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><B><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES,
      INC.,</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=Arial size=2>a South Carolina
      corporation</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>By:&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%"><FONT face=Arial size=2>/s/ Michael D. Dowling</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="99%"><FONT face=Arial size=2>Michael D.
      Dowling, Chief Financial Officer</FONT></TD></TR></TABLE></DIV><BR>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>Pledge Agreement</FONT></TD>
    <TD noWrap align=right width="36%"><FONT face=Arial size=2>Page 9 of 9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=Arial size=2>SOUTHERN FIRST BANCSHARES,
      INC.</FONT></TD>
    <TD noWrap align=left width="36%"></TD></TR></TABLE><BR>
<P STYLE="text-align: center"><B><U><FONT face=aRIAL size=2>ACKNOWLEDGMENT BY ISSUER OF
PLEDGE OF SHARES/STOCK</FONT></U></B><B><FONT face=aRIAL size=2> </FONT></B></P>
<P align=justify><FONT face=aRIAL size=2>The undersigned issuer, </FONT><B><FONT face=aRIAL size=2>SOUTHERN FIRST BANK</FONT></B><FONT face=aRIAL size=2>, a
South Carolina banking corporation (&#147;SFB&#148; and/or &#147;Issuer&#148;), hereby acknowledges
and agrees that certain securities, consisting of 100% of the issued and
outstanding common stock of SFB held by </FONT><B><FONT face=aRIAL size=2>SOUTHERN FIRST BANCSHARES, INC.</FONT></B><FONT face=aRIAL size=2>, a
South Carolina corporation (the &#147;Pledgor&#148;), and more particularly described on
</FONT><B><FONT face=aRIAL size=2>Exhibit A</FONT></B><FONT face=aRIAL size=2>
("Securities") attached hereto and incorporated herein by this reference
together with all renewals, extensions, rollovers, reinvestments and proceeds of
the securities including without limitation, any other documents or instruments
at any time purchased or obtained in replacement, exchange or substitution
thereof or with any of the proceeds thereof), and all monies and other proceeds
due or becoming due or to become due under any of the foregoing and all sums due
or to become due thereon or therefrom by way of dividend, interest, bonus,
redemption, repurchase, repayment or otherwise have been assigned for security
purposes, pledged and hypothecated to </FONT><B><FONT face=aRIAL size=2>CENTERSTATE BANK, NATIONAL ASSOCIATION, </FONT></B><FONT face=aRIAL size=2>a national banking association ("Lender") pursuant to the terms and
provisions of the Pledge Agreement ("Pledge Agreement") a copy of which is
attached hereto as </FONT><B><FONT face=aRIAL size=2>Exhibit B</FONT></B><FONT face=aRIAL size=2> and incorporated herein by this reference. Hereafter, all of
the foregoing property may be described collectively as the "Collateral."
</FONT></P>
<P align=justify><FONT face=aRIAL size=2>By the signature of Issuer herein
below, Issuer acknowledges its confirmation and agreement that: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(a)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>&nbsp;the assignment for security
      purposes, pledge, lien and security interest in favor of Lender in the
      Securities and the other Collateral is and will be registered in the
      records of Issuer;</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(b)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>the records of Issuer do not
      reflect, and Issuer has not received any notice of, any other assignment,
      conveyance, sale or transfer of or pledge, lien or security interest in
      the Securities;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(c)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>Issuer will not take any action
      to pay, redeem, reinvest, assign, transfer or encumber the Securities or
      any other Collateral except in accordance with the written instructions of
      Lender;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(d)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>the Collateral is not and will
      not be subject to any present or future assignment for security purposes,
      pledge, lien, security interest, claim, defense, setoff or counterclaim in
      favor of Issuer; and</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=aRIAL size=2>(e)</FONT></TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face=aRIAL size=2>the Pledgor's signatures
      appearing on the Pledge Agreement have been compared with Issuer's
      signature records and the same compares favorably therewith, and is
      sufficient to authorize the renewal, rollover, reinvestment, redemption or
      other right to payment pursuant to the Collateral, and/or assignment of
      the Collateral, by Lender in accordance with the terms of such Pledge
      Agreement.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="48%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=Arial size=2>READ, CONFIRMED AND AGREED
      TO:</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><B><FONT face=Arial size=2>SOUTHERN FIRST
      BANK</FONT></B><FONT face=Arial size=2>,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=2><FONT face=Arial size=2>a South Carolina banking
      corporation (&#147;Issuer&#148;)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>By:&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%"><FONT face=Arial size=2>/s/ Michael D. Dowling</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="99%"><FONT face=Arial size=2>Michael D.
      Dowling, Chief Financial Officer</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade size="2">

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
