Document:

Unassociated Document

    
      

    

    FNB
UNITED CORP.

    150
South Fayetteville Street

    Asheboro,
North Carolina 27203

    

    

    [Date]

    

    

    [Name of
officer]

    [Address]

    

    Dear
[officer]:

    

    FNB
United Corporation (“FNB United”) anticipates entering into a Letter Agreement
and Securities Purchase Agreement – Standard Terms incorporated into the Letter
Agreement with the United States Department of the Treasury (the “Treasury”),
which provides for FNB United’s participation in the Capital Purchase Program
(the “CPP”) of the Treasury’s Troubled Asset Relief Program.  A copy
of the Letter Agreement and Securities Purchase Agreement – Standard Terms is
attached to this letter as Exhibit A and the documents are referred to
collectively in this letter as the “Participation Agreement.”

    

    For FNB
United to participate in the CPP, and as a condition to closing the Treasury’s
investment in FNB United contemplated by the Participation Agreement, FNB United
is required to establish specified standards for executive compensation payable
to Senior Executive Officers and to make certain changes to its compensation
arrangements as described below:

    

    
      	
               
      

            	
              ●

            	
              No Golden Parachute
      Payments.  FNB United is prohibited from making any
      Golden Parachute Payment to you during the CPP Covered
    Period.

            

    

    

    
      	
               
      

            	
              ●

            	
              Recovery of Bonus and
      Incentive Compensation.  Any bonus or incentive
      compensation paid to you during a CPP Covered Period is subject to
      recovery by FNB United if the payments were based on materially inaccurate
      financial statements or any other materially inaccurate performance metric
      criteria.

            

    

    

    
      	
               
      

            	
              ●

            	
              No Unnecessary or
      Excessive Risk.  FNB United is required to review its
      Benefit Plans to ensure that they do not encourage Senior Executive
      Officers to take unnecessary and excessive risks that threaten the value
      of FNB United.

            

    

    

    This
letter is intended to comply with the requirements imposed by the
CPP.  In consideration of the benefits that you will receive as a
result of FNB United’s participation in the CPP, by signing this letter, you
agree that each of FNB United’s compensation, bonus, incentive and other benefit
plans, arrangements and agreements

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (including
golden parachute, severance, change-of-control and employment agreements
(collectively, “Benefit Plans”) with respect to you is hereby amended to the
extent necessary to give effect to the first two bullet points
above.  For your reference, the affected Benefit Plans are listed on
Exhibit B, attached to this letter.  In addition, you and FNB United
agree to negotiate in good faith any revisions to a Benefit Plan that may be
required to ensure compliance with the third bullet point above.

    

    The three
bullet points listed above are intended to, and will be interpreted,
administered and construed to, comply with Section 111 of EESA.  To
the maximum extent consistent with the foregoing, they will also be interpreted,
administered and construed to permit operation of the Benefit Plans in
accordance with their terms before giving effect to this letter.

    

    The
following capitalized terms shall have the meanings set forth
below:

    

    “CPP Covered Period” is any
period during which: (a) you are a Senior Executive Officer and (b) the Treasury
holds an equity or debt position acquired from FNB United under the
CPP.  The term “CPP Covered Period” shall be limited by, and
interpreted in a manner consistent with, 31 C.F.R. § 30.11, as in effect on the
Closing Date.

    

    “Closing Date” shall have the
meaning given to it in the Participation Agreement.

    

    “EESA” means the Emergency
Economic Stabilization Act of 2008, as published in the Federal Register on
October 20, 2008, and as implemented by guidance or regulation issued by the
Treasury.

    

    “FNB United” includes FNB
United Corp. and any entity treated as a single employer with FNB United Corp.
under 31 C.F.R. § 30.1(b), as in effect on the Closing Date.

    

    “Golden Parachute Payment” is
used with the same meaning as in Section 111(b)(2)(C) of EESA, as supplemented
by 31 C.F.R. §
30.9, as in effect on the Closing Date.

    

    “Senior Executive Officer”
means FNB United’s “senior executive officers” as defined in Section 111(b)(3)
of EESA, as supplemented by 31 C.F.R. § 30.2, as in effect on the Closing
Date.

    

    To the
extent not governed by federal law, this letter will be governed by and
construed in accordance with the laws of the State of North
Carolina.  This letter may be executed in multiple counterparts, each
of which will be deemed to be an original.  A signature transmitted by
facsimile will be deemed an original signature.

    

    If FNB
United does not participate or ceases at any time to participate in the CPP,
this letter shall be of no further force or effect.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FNB
United appreciates your willingness to agree to the terms of this letter and
looks forward to your continued leadership.

    

    
      
        	 
      	
                Very
      truly yours,

              
	 
      	 
      	 
      
	 
      	
                FNB
      UNITED CORP.

              
	 
      	 
      	 
      
	 
      	
                By

              	 
      	 
      
	 
      	 
      	
                [Name
      of officer executing agreement on

              
	 
      	 
      	
                behalf
      of FNB United]

              
	 
      	 
      	
                 [Title]

              

      

    

    

    

    
      
        	
                Agreed
      and accepted:

              	 
      
	 
      	 
      
	 
      	 
      
	
                [Name
      of officer]

              	 
      
	 
      	 
      
	
                [Date]

              	 
      

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    

    Letter
Agreement, and Securities Purchase

    Agreement
– Standard Terms incorporated into the

    Letter
Agreement, with the United States Department of the Treasury

    

    

    

    

    [Intentionally
omitted; included as Exhibit 10.1 to the Current Report on Form 8-K of FNB
United Corp. filed with the Securities and Exchange Commission on February 13,
2009]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

    

    

    Benefit
Plans

    

    The
benefit plans described in this letter include, without limitation, the
following plans, agreements, and arrangements:

    

    Supplemental
Executive Retirement Plans and Benefit Agreements

    

    FNB
United/CommunityONE Short-Term Incentive Plan

    

    FNB
United Long-Term Incentive Plan

    

    Performance
Compensation Plan for Stakeholdersex-10.htm

    

     

    Exhibit
10(d)(viii)

     

     

    AGREEMENT

     

    

    THIS AGREEMENT is made effective as of
November 17, 2008, by and between Southern Missouri Bank & Trust Co. (the
“Bank”) and Dennis C. Robison (the “Director”).

    

    WHEREAS, the Bank wishes to assure
itself of the services of the Director and to induce the Director to remain in
office until he voluntarily terminates his service on the Board or is not
reelected to the Board.

    

    NOW, THEREFORE, in consideration of the
mutual covenants herein contained, and upon the other terms and conditions
hereinafter provided, the parties hereby agree as follows:

    

    Section
1.     Definitions

    

    The
following words and phrases when used in this Agreement with an initial capital
letter, shall have the meaning set forth below unless the context clearly
indicates otherwise.  Wherever appropriate, the masculine pronoun
shall include the feminine pronoun and the singular shall include the
plural.

    

    “Beneficiary”
means the person or persons designated by the Director to receive any benefits
payable under the Agreement in the event of such Director’s
death.  Such person or persons shall be designated by the Director in
writing on forms provided for this purpose by the Committee and may be changed
from time to time by similar written notice to the Committee. In the absence of
a written designation, the Beneficiary shall be the Director’s surviving spouse,
if any, or if none, his estate.

    

    “Board”
means the Board of Directors of the Bank.

    

    “Termination
for Cause” means the Director’s termination upon intentional failure to perform
stated duties, personal dishonesty which results in loss to the Bank or one of
its affiliates, willful violation of any law, rule, regulation, (other than
traffic violations or similar offenses) or, a final cease and desist order which
results in substantial loss to the Bank or one of its affiliates.

    

    “Vested
Percentage” means the following:

    

    
      
        	
                Years
      of Service

              	 
      
	
                as a Director

              	
                Vested Percentage

              
	
                5

              	
                50%

              
	
                10

              	
                75%

              
	
                15
      or more

              	
                100%

              

      

    

    

    “Years of
Service” means the total number of years of service by the Director on the
Board, including years of service prior to the Bank’s mutual-to-stock
conversion.

    

    Section
2.     Benefits

    

    (a) Upon
the Director’s termination of service on the Board on or after the date the
Director attains age 60, the Director (or in the event of his death, his
Beneficiary) shall receive five payments, in cash, equal to the product of (i)
his Vested Percentage and (ii) the total cash fees paid to the Director for
attendance at regular meetings of the Board during the calendar year preceding
his termination of service on the Board.  Such payments shall commence
on the first anniversary and end on the fifth anniversary of the date of the
Director’s termination of service on the Board.  Notwithstanding the
foregoing, no benefits shall be payable under the Agreement to the Director in
the event of the Director’s Termination for Cause.

    

    (b)  The
benefits payable under the Agreement shall constitute an unfunded, unsecured
promise by the Bank to provide such benefits in the future, as and to the extent
such benefits become payable.  Benefits shall be paid from the general
assets of the Bank, and no person shall, by virtue of this Agreement, have any
interest in such assets (other than as an unsecured creditor of the
Bank).

    

    (c)  Except
as otherwise provided by this Agreement, it is agreed that neither the Director
nor his Beneficiaries (if any) shall have any right to commute, sell, assign,
transfer, encumber and pledge or otherwise convey the right to receive any
benefits hereunder, which benefits and the rights thereto are expressly declared
to be nonassignable and nontransferable.

     

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

     

    
 

    (d)  The
rights of the Director and of his Beneficiary (if any) under this Agreement
shall be solely those of an unsecured creditor of the Bank.

    

    

    Section
3.     Miscellaneous

    

    (a)  This
Agreement may not be modified or amended except by an instrument in writing
signed by the parties hereto.

    

    (b)  This
Agreement shall not be deemed to constitute a contract, express or implied, for
future services by the Director.

    

    (c)  No
member of the Board shall be liable for any determination made in good faith
with respect to the Agreement or the benefits payable hereunder.  If a
member of the Board is a party of is threatened to be made a party to any
threatened, pending or completed actions, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of anything done or not
done by him in such capacity under or with respect to the Agreement, the Bank
shall indemnify such member against expenses (including attorneys’ fees),
judgements, finds and amounts paid in settlement actually and reasonable
incurred by him or her in connection with such action ,suit or proceeding if he
or she acted in good faith and in a manner he or she reasonably believed to be
in the best interests of the Bank and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was
unlawful.

    

    (d)  The
Agreement shall be governed and construed under the laws of the State of
Missouri.

    

    (e)  This
Agreement shall be effective as of the date first written above.

    

    IN
WITNESS WHEREOF, the Bank has caused this Agreement to be signed in its
corporate name by its duly authorized officer, impressed with its corporate
seal, and properly attested to as of the 17th day of
November, 2008.

    

    
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              SOUTHERN
      MISSOURI BANK & TRUST CO.

            
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Attest:

            	
              /s/
      Lorna J. Brannum

            	 
      	 
      	
              By:

            	
              /s/
      Greg A. Steffens

            
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Witness:

            	
              /s/
      Dennis C. Robison

            	 
      	 
      	 
      	 
      
	 
      	
              Dennis
      C. Robison

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