Document:

Employment Agreement

 Exhibit 10.3 
 AGREEMENT BETWEEN NORTH STATE BANK 
 AND LARRY
BARBOUR 
 THIS AGREEMENT is made and entered into on this lst day of June, 2000, by and between North State Bank
(hereinafter referred to as “the Bank”) and Larry D. Barbour (hereinafter referred to as “Barbour”). 
 WITNESSETH THAT: 
 WHEREAS, as of the effective date of this Agreement, Larry D. Barbour is employed by North State
Bank as President and Chief Executive Officer, and as of the date of execution of this Agreement is employed in such capacity and is serving as a director of the Bank; 
 WHEREAS, the Bank desires to retain the services of Larry D. Barbour; and 
 WHEREAS, the parties to this Agreement desire to establish mutually satisfactory arrangements in the event there is a termination of services of Larry D. Barbour under circumstances provided for hereinafter; 
 NOW, THEREFORE, for and in consideration of the premises and the following covenants, the parties do hereby mutually agree: 
 1.     Capitalized terms used in this Agreement shall have the following definitions: 
  

	 	(a)	The term “Base Salary” means the annualized salary paid to Larry D. Barbour by the Bank during the twelve-month period ending on the last day of the last full
month immediately preceding the termination date. Such Base Salary shall be reviewed annually by the Compensation Committee or such other committee with the equivalent responsibilities. 

  

	 	(b)	The term “Bonuses” shall mean any and all incentive bonuses or discretionary bonuses granted by the Compensation Committee or the Board of Directors to
Barbour within the most current twelve month period during the term of this Agreement. 

  

	 	(c)	The term “Cause” means (i) the breach of or negligent inattention to duties as the President and Chief Executive Officer of the Bank;
(ii) malfeasance of office or disloyalty to the Bank; (iii) commission of a felony or an unlawful act involving fraud or moral turpitude; or (iv) removal of Barbour by federal or state regulators following a takeover of the Bank by
such regulators. 

  

	 	(d)	 “Change in Control” means (A) the acquisition at any time by a “person” or “group” (as such terms are used in
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)) who or which are

	 	 
the beneficial owners (as defined in Rule 13(d)-3 under the Exchange Act), directly or indirectly, of securities representing more than 40% of the combined voting power in the election of
directors of the then outstanding securities of the Bank or any successor of the Bank, unless the acquisition of securities resulting in such ownership by such person or group had been approved by the Board of Directors of the Bank; (B) the
termination of service of directors, for any reason other than death, disability or retirement from the Board of Directors, during any period of two consecutive years or less, of individuals who at the beginning of such period constituted a majority
of the Board of Directors, unless the election of or nomination for election of each new director during such period was approved by a vote of at least a majority of the directors still in office who were directors at the beginning of the period;
(C) approval by the shareholders of the Bank of any sale or disposition of substantially all of the assets or earning power of the Bank; or (D) approval by the shareholders of the Bank of any merger, consolidation, or statutory share
exchange to which the Bank is a party as a result of which the persons who were stockholders immediately prior to the effective date of the merger, consolidation or share exchange shall have beneficial ownership of less than 50% of the combined
voting power in the election of directors of the surviving corporation. Each determination concerning whether an event constitutes a Change in Control shall be made in a consistent manner as to the particular event with respect to all participants
at the time of the event. 

  

	 	(e)	The term “Total Compensation” shall mean Base Salary plus any Bonuses. 

 2.     The Bank agrees to employ Barbour as President and Chief Executive Officer of the Bank or such other position as
may be assigned to him by the Board of Directors of the Bank during the term of this Agreement. Barbour agrees to carry out such duties to the best of his abilities, as may be assigned to him from time to time by the Board of the Bank and to devote
his full working time and energies to the business of the Bank, provided such duties shall be consistent with his position as President and Chief Executive Officer of the Bank. In addition, the Bank shall use its best efforts to cause Barbour to be
nominated and elected as a Director of the Bank and its subsidiaries and affiliates or their successors during the term of this Agreement. 
 3.     The term of employment provided for in this Agreement shall commence on June 1, 2000, and shall remain in full force for a period of three years thereafter. Such term shall
be automatically extended for an additional year on each anniversary of the term commencement date and shall continue to renew as such, unless 30 days written notice of nonextension is provided by the Bank to Barbour. 
 4.     In the event of termination of Barbour’s employment by the Board of Directors of the Bank for any reason
other than Cause, death, Total and Permanent Disability, Retirement, or

  

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a Change in Control, the Bank agrees to provide and Barbour shall receive from the Bank ail amount as follows: 
  

	 	(a)	If Barbour is terminated pursuant to this Section 4 prior to the first anniversary of this Agreement, he shall receive one year of Total Compensation.

  

	 	(b)	If Barbour is terminated pursuant to this Section 4 subsequent to the first anniversary of this Agreement, but prior to the second anniversary of this Agreement,
he shall receive two years of Total Compensation. 

  

	 	(c)	If Barbour is terminated pursuant to this Section 4 subsequent to the second anniversary of this Agreement, he shall receive three years of Total Compensation.

 Any amounts payable pursuant to this Section 4 may be paid in the sole discretion of the Bank in either a
lump sum or in equal monthly amounts for the period that the Total Compensation is owed. 
 5.     In the
event of termination of Barbour’s employment by reason due to death, Total and Permanent Disability or Retirement, Barbour (or Barbour’s Estate in the event of his death), shall be entitled to receive: 
  

	 	(a)	payment of any previously unpaid Base Salary through the date of termination; 

  

	 	(b)	payment of any life insurance, disability or other benefits, if any, for which Barbour is then eligible under the terms of the Bank’s employee retirement, benefit
and welfare plans; and, in the case of death or Total and Permanent Disability, a right to immediately vest in 100% of all options to purchase Common Stock of the Bank that have been granted to Barbour by the Bank, to be exercised in accordance with
the terms of any grant documents. 

 For purposes of this Section 5, “Total and Permanent
Disability” shall have occurred if Barbour (i) has established to the satisfaction of the Board of Directors that he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to last for a continuous period of not less than 6 months and (ii) has satisfied any requirement imposed by the Board of Directors in regard to evidence of such disability. For purposes of this section,
“Retirement” shall mean the date Barbour reaches 65 or the date Barbour retires in accordance with the Bank’s retirement arrangements established for Barbour with Barbour’s consent. 
 6.     In the event of termination of Barbour’s employment for Cause, Barbour shall receive only the payment of any
previously unpaid Base Salary through the date of termination. 
  

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 7.     In the event, but only in the event, that Barbour’s
employment is terminated at any time within three years following a Change in Control under circumstances stated in section (a) or (b) below of this Section 7, and only in such circumstances, Barbour shall be entitled to receive those
payments and benefits from the Bank as set forth in Section 8 herein. The circumstances to which this Section 7 applies are: 
  

	 	(a)	Termination by the Board of Directors of the Bank for reasons other than for Cause or other than as a consequence of Barbour’s death, or attainment of normal
Retirement as provided under any Bank retirement plan as in effect immediately preceding such date or the attainment of Retirement as defined above; or 

  

	 	(b)	Termination voluntarily by Barbour following the occurrence of any of the following events: 

  

	 	(i)	the assignment of Barbour to any duties or responsibilities with his position, duties, responsibilities or status immediately preceding such Change in Control, or a
change in his reporting responsibilities or titles in effect at such time resulting in a reduction of his responsibilities or position; 

  

	 	(ii)	the reduction of Barbour’s annual salary (including any deferred portions thereof) or level of benefits or supplemental compensation; 

  

	 	(iii)	the transfer of Barbour to a location requiring a change in his residence or a material increase in the amount of travel normally required of Barbour in connection with
his employment; or 

  

	 	(iv)	the good faith determination by Barbour that due to a Change in Control (including any changes in circumstances at the Bank that directly or indirectly affect
Barbour’s position, duties, responsibilities or status immediately preceding such Change in Control) he is no longer able effectively to discharge his duties and responsibilities. 

 8.     In the event of termination of Barbour’s employment under the circumstances set forth in Section 7
above, the Bank agrees to provide or to cause to be provided to Barbour the following rights and benefits: 
  

	 	(a)	 Barbour shall be entitled to receive payment from the Bank, in his sole discretion, in cash, either (i) an amount equal to three years of Total
Compensation within 30 days after such termination or (ii) an amount equal to three years of Total Compensation, payable monthly, over such three year period. In the event of Barbour’s death prior to the time that such payments are made
under this Section 8(a), all such sums shall be distributed to such beneficiary as Barbour may from time to time designate

  

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in writing to the Bank, and if no such beneficiary is named, such sums shall be paid to Barbour’s estate. 

  

	 	(b)	Unless prohibited by law, in the event that Barbour is entitled to receive any sums or awards pursuant to compensation plans presently in place or which shall
hereinafter be approved by the Board of Directors of the Bank, any and all vesting or maturity schedules or other rights conditioned upon the passage of time set forth in such compensation plans shall immediately lapse or be deemed to have a vesting
schedule of three years, and Barbour shall be entitled to receive all benefits previously granted to him thereunder. In the event any such immediate lapse or three-year vesting schedule would cause any such compensation plan that is then a
“qualified” plan under the Internal Revenue Code to become non-qualified or would cause any materially adverse consequences to the Bank or its other employees, then such immediate lapse or three-year vesting shall not occur, but, instead,
the Bank shall make such payments or otherwise provide such additional or substantially equivalent benefits or payments as may be, in the opinion of a mutually acceptable qualified third party, necessary to make the payments or benefits to Barbour
substantially equal to those to which he would have been entitled if such immediate lapse or three-year vesting had occurred. 

  

	 	(c)	In the event termination should occur prior to the grant of options and awards designated to Barbour, the Bank shall provide such substantially equivalent payments or
benefits as may be, in the opinion of a mutually acceptable qualified third party, necessary to make the payments or benefits to Barbour substantially equal to those to which he would have been entitled if such options and awards had been adopted by
the Board and approved by the shareholders, and if such options and awards had been granted as of the effective date of this Agreement. 

  

	 	(d)	In the event there are payments of whatever nature arising from this Agreement due on or after the date of termination from the Bank or any parent or subsidiary of the
Bank to Barbour, the receipt of which has been deferred by means of an instrument in writing signed by Barbour, such payment shall be paid within 30 days of termination in a lump sum to Barbour. In the event there are obligations (whether or not
arising from this Agreement) of the Bank or any parent or subsidiary of the Bank to Barbour outstanding on or after the date of termination, all such obligations shall immediately be accelerated to maturity and become due and payable in full as of
the date of termination. 

  

	 	(e)	 Until Barbour reaches age 65, Barbour shall continue to be covered by such life insurance, medical insurance, and accident and disability insurance
plans of the Bank or any successor plans or programs in effect at

  

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or after termination for employees in the same class or category as was Barbour prior to his termination, subject to Barbour making payments thereunder required of employees in the same class or
category as Barbour was prior to his termination. In the event Barbour is ineligible for continuation of such coverage under the terms of such benefit plan or in the event Barbour is eligible but the benefits applicable to Barbour under such plans
or programs after termination are not substantially equivalent to the benefits applicable to Barbour immediately prior to termination, then, until Barbour’s normal retirement date, the Bank shall provide such substantially equivalent benefits
or such additional benefits as may be, in the opinion of a mutually acceptable qualified third party, necessary to make the benefits applicable to Barbour substantially equal to those in effect before termination, provided, however, that if during
such period Barbour shall enter into the employ of another company or firm which provides substantially similar benefit coverage, Barbour’s participation in the comparable benefit provided by the Bank either directly or through other sources
shall cease. 

  

	 	(f)	The ownership of all club memberships, automobiles and other perquisites which were assigned to Barbour prior to termination shall be transferred to Barbour, at no cost
to him (other than any income tax cost he may incur as a consequence of such transfer) within 30 days of his termination. 

  

	 	(g)	The specific arrangements referred to in this Section 8 are not intended to exclude Barbour’s participation in other benefit plans in which Barbour currently
participates or which may become available to Barbour, nor to preclude other compensation or benefits which may be authorized by the Board of Directors from time to time. 

  

	 	(h)	Notwithstanding the provisions of law or any provisions hereunder, Barbour’s entitlement to benefits hereunder shall not be governed by a duty to mitigate those
damages by seeking further employment nor offset by any compensation he may receive from future employment. 

 9.     The Bank has and shall have no responsibility or obligation for any income tax or other tax costs or liabilities incurred by Barbour as a result of or in connection with any payments or payment obligations by the
Bank to Barbour under this Agreement, and all such payments and payment obligations shall be computed without regard to any tax effects to Barbour. 
 10.     The Bank’s promise to pay or cause to be paid to Barbour pursuant to the provisions of Section 8 are absolute and unconditional, and shall not be affected by any
circumstances, including, without limitation, any rights of off-set, counterclaim, recoupment, defense, or other rights which the Bank may have against him or others. All such amounts payable or to be payable by the Bank hereunder shall be paid
without notice or demand, and each

  

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and every such payment made by the Bank shall be final, and the Bank shall not have any reason whatsoever to seek to recover any payment from Barbour or whomever shall be entitled thereto.

 11.     Bank and Barbour recognize that there may be significant legal issues or restrictions arising
under banking, securities, corporate or other laws that may affect the Bank’s and Barbour’s ability to effectuate their mutual intent as expressed in this Agreement, particularly with respect to the stock option and restricted stock award
plans, but that have not been deter-mined at the time this Agreement is executed, and thus certain modified or additional undertakings may later be determined necessary. Further, it is the desire of the Bank and Barbour that the provisions of this
Agreement be effectuated in a fashion that will not adversely affect the interests of the Bank’s other employees and its shareholders, but that this Agreement be carried out in such a manner as will benefit those constituencies. Accordingly,
the Bank and Barbour agree that the undertakings of such actions and execution and delivery of such agreements, instruments or other documents as they may mutually deem necessary or appropriate to accomplish all such purposes, shall not be deemed to
be in derogation of or inconsistent with this Agreement, but in fulfillment thereof. 
 12.     This
Agreement constitutes the entire Agreement between the parties and supersedes all memoranda, discussion, correspondence and agreements prior to the date of execution of this Agreement. This Agreement shall be binding on the heirs, executors,
administrators, successors and assigns of the parties. This Agreement is to be governed by the laws of the state of North Carolina. In the event that any part of this Agreement shall be held invalid or unenforceable, it shall not affect the validity
of this Agreement as a whole or other remaining parts thereof. This Agreement may not be changed orally, but only by an instrument in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is
sought. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above
written. 
  

			
	NORTH STATE BANK
		
	BY:	 	/s/ CHARLES T. FRANCIS
		 	Charles T. Francis
		 	Executive Committee
		
	BY:	 	/s/ JACK M. STANCIL
		 	Jack M. Stancil
		 	Executive Committee
		
		 	/s/ LARRY D. BARBOUR
		 	Larry D. Barbour

  

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 AMENDMENT NO. 1 TO THE 
 AGREEMENT BETWEEN NORTH STATE BANK 
 AND LARRY BARBOUR

 THIS AMENDMENT NO. 1 to the Agreement between North State Bank (hereinafter referred to as “the Bank”) and Larry D.
Barbour (“Barbour”) is made and entered into on this 30th day of December, 2009. 
 WITNESSETH: 
 WHEREAS, the Bank and Barbour entered into that certain Agreement dated as of June 1, 2000 (the “Agreement”); 
 WHEREAS, capitalized terms used in this First Amendment shall have the same meaning as assigned to them in the Agreement; 
 WHEREAS, Section 12 of the Agreement permits modification of the Agreement in a writing signed by the parties to the Agreement; and

 WHEREAS, the parties hereto now desire to amend the Agreement upon the terms and conditions enumerated below. 
 NOW, THEREFORE, in consideration of the foregoing, the mutual promises herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
 1. Section 4. of the Agreement is hereby amended by deleting the last paragraph and substituting the following two (2) new paragraphs for it: 
 Any amounts payable pursuant to this Section 4 shall be paid in equal monthly amounts for the period that the Total
Compensation is owed. 
 However, if the payments payable pursuant to this Section 4 to Barbour in
connection with his termination of employment are determined, in whole or in part, to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code, and Barbour is a “specified employee” as
defined in Section 409A(2)(B)(i) of the Code, such payments shall not be paid before the day that is six (6) months plus one (1) day after the termination date (the “New Payment Date”). The aggregate of any payments that
otherwise would have been paid to Barbour during the period between the termination date and the New Payment Date shall be paid to Barbour in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day
immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. 

 2. Section 8 of the Agreement is hereby deleted and replaced in its entirety with the
following new Section 8: 
  

	 	8.	In the event of termination of Barbour’s employment under the circumstances set forth in Section 7 above, the Bank agrees to provide or to cause to be
provided to Barbour the following rights and benefits: 

  

	 	(a)	Barbour shall be entitled to receive payment from the Bank in cash in an amount equal to three (3) years of Total Compensation, payable monthly, over the
three-year period beginning immediately after the Termination Date. In the event of Barbour’s death before the Bank can complete all required payments under this Section 7(a), any remaining payments due Barbour shall be distributed to such
beneficiary as Barbour may from time to time designate in writing to the Bank, and if no such beneficiary is named, such sums shall be paid to Barbour’s estate; 

  

	 	(b)	Unless prohibited by law, in the event that Barbour is entitled to receive any sums or awards pursuant to compensation plans presently in place or which shall
hereinafter be approved by the Board of Directors of the Bank, any and all vesting or maturity schedules or other rights conditioned upon the passage of time set forth in such compensation plans shall immediately lapse or be deemed to have a vesting
schedule of three years, and Barbour shall be entitled to receive all benefits previously granted to him thereunder. In the event any such immediate lapse or three year vesting schedule would cause any such compensation plan that is then a
“qualified” plan under the Internal Revenue Code to become non qualified or would cause any materially adverse consequences to the Bank or its other employees, then such immediate lapse or three year vesting shall not occur, but, instead,
the Bank shall make such payments or otherwise provide such additional or substantially equivalent benefits or payments as may be, in the opinion of a mutually acceptable qualified third party, necessary to make the payments or benefits to Barbour
substantially equal to those to which he would have been entitled if such immediate lapse or three year vesting had occurred. 

  

	 	(c)	In the event termination should occur prior to the grant of options and awards designated to Barbour, the Bank shall provide such substantially equivalent payments or
benefits as may be, in the opinion of a mutually acceptable qualified third party, necessary to make the payments or benefits to Barbour substantially equal to those to which he would have been entitled if such options and awards had been adopted by
the Board and approved by the shareholders, and if such options and awards had been granted as of the effective date of this Agreement. 

  

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	 	(d)	In the event there are payments of whatever nature arising from this Agreement due on or after the date of termination from the Bank or any parent or subsidiary of the
Bank to Barbour, the receipt of which has been deferred by means of an instrument in writing signed by Barbour, such payment shall be paid within 30 days of termination in a lump sum to Barbour. In the event there are obligations (whether or not
arising from this Agreement) of the Bank or any parent or subsidiary of the Bank to Barbour outstanding on or after the date of termination, all such obligations shall immediately be accelerated to maturity and become due and payable in full as of
the date of termination. 

  

	 	(e)	Until Barbour reaches age 65, Barbour shall continue to be covered by such life insurance, medical insurance, and accident and disability insurance plans of the Bank or
any successor plans or programs in effect at or after termination for employees in the same class or category as was Barbour prior to his termination, subject to Barbour making payments thereunder required of employees in the same class or category
as Barbour was prior to his termination. In the event Barbour is ineligible for continuation of such coverage under the terms of such benefit plan or in the event Barbour is eligible but the benefits applicable to Barbour under such plans or
programs after termination are not substantially equivalent to the benefits applicable to Barbour immediately prior to termination, then, until Barbour’s normal retirement date, the Bank shall provide such substantially equivalent benefits or
such additional benefits as may be, in the opinion of a mutually acceptable qualified third party, necessary to make the benefits applicable to Barbour substantially equal to those in effect before termination, provided, however, that if during such
period Barbour shall enter into the employ of another company or firm which provides substantially similar benefit coverage, Barbour’s participation in the comparable benefit provided by the Bank either directly or through other sources shall
cease. 

  

	 	(f)	The ownership of all club memberships, automobiles and other perquisites which were assigned to Barbour prior to termination shall be transferred to Barbour, at no cost
to him (other than any income tax cost he may incur as a consequence of such transfer) within 30 days of his termination. 

  

	 	(g)	The specific arrangements referred to in this Section 8 are not intended to exclude Barbour’s participation in other benefit plans in which Barbour currently
participates or which may become available to Barbour, nor to preclude other compensation or benefits which may be authorized by the Board of Directors from time to time. 

  

	 	(h)	Notwithstanding the provisions of law or any provisions hereunder, Barbour’s entitlement to benefits hereunder shall not be governed by a duty to mitigate those
damages by seeking further employment nor offset by any compensation he may receive from future employment. 

  

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 However, payment of any benefits under this Section shall be subject to the
following restrictions and reductions: 
  

	 	(a)	If the payments otherwise payable to Barbour hereunder would be subject to the excise tax imposed by Section 4999 of the Code, such payments shall be reduced to
the extent necessary to prevent imposition of such excise tax. 

  

	 	(b)	If the payments otherwise payable to Barbour in connection with his termination of employment are determined, in whole or in part, to constitute “nonqualified
deferred compensation” within the meaning of Section 409A of the Code, and Barbour is a “specified employee” as defined in Section 409A(2)(B)(i) of the Code, such payments shall not be paid before the day that is six
(6) months plus one (1) day after the termination date (the “New Payment Date”). The aggregate of any payments that otherwise would have been paid to Barbour during the period between the termination date and the New Payment Date
shall be paid to Barbour in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in
accordance with the terms of this Agreement. 

 3. No Other Amendment. Except as specifically amended pursuant to
this First Amendment, the Agreement remains in full force and effect in accordance with its terms. 
 4. Governing Law. This
First Amendment shall be governed, construed and interpreted in accordance with the laws of the State of North Carolina, without giving effect to principles of conflicts of laws. 
 5. Counterparts. This First Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 6. Binding Effect. This First Amendment shall be binding upon
and shall inure to the benefit of the parties hereto and their heirs, successors and assigns. 
 7. Effect of Amendment. Except
as expressly amended herein, the terms of the Agreement are incorporated herein by reference as if fully set out and shall remain in full force and effect in accordance with their terms. 
 IN WITNESS WHEREOF, the parties have executed this First Amendment to the Agreement effective as of the Effective Date. 
  

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	 NORTH STATE BANK:
  
  

	BY:	 	  

		 	Member
		 	 Executive Committee
  
  

	BY:	 	  

		 	Member
		 	 Executive Committee
  
  

		 	Larry D. Barbour

  

 5Change in Control Agreement

 Exhibit 10.4 

 Exhibt 10.4 
 AMENDMENT NO. 1 TO AGREEMENT 
 THIS AMENDMENT NO. 1 TO
AGREEMENT (the “Agreement”) is made and entered into on this 29th day of October 2002 (the “Effective Date”), by and between North State Bank, a North Carolina banking corporation (the “ Bank”) and Kirk A. Whorf
(“Executive”). 
 WITNESSETH: 
 WHEREAS, the Bank and Executive entered into that certain Agreement dated as of June 1, 2000 (the “Agreement”); 
 WHEREAS, capitalized terms used in this First Amendment shall have the same meaning as assigned to them in the Agreement; 
 WHEREAS, the Bank and Executive agree that Section 7(e) of the Agreement contained a mutual mistake and that neither party hereto
intended the benefits described in Section 7(e) of the Agreement to continue until Executive’s Retirement (as defined in the Agreement) or beyond the date that Executive began receiving comparable benefit coverage with a new employer;

 WHEREAS, Section 12 of the Agreement permits modification in a writing signed by both parties to the Agreement; and

 WHEREAS, the parties hereto now desire to amend the Agreement upon the terms and conditions enumerated below. 
 NOW, THEREFORE, in consideration of the foregoing, the mutual promises herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
 1.    Consideration to Executive. In consideration of Executive’s agreement to amend the Agreement to correct the mutual mistake in Section 7(e) of the Agreement, the Bank shall pay Executive the sum of
One Hundred Dollars ($100.00), less any withholdings required by law. 
 2.    Amendment.
Section 7(e) of the Agreement is hereby deleted and replaced in its entirety with the following provision: 
 For three (3) year(s)
after Executive’s termination, the Bank shall continue Executive’s coverage under such life insurance, medical insurance, and accident and disability insurance plans at the level in effect on the Termination Date, subject to Executive
making payments thereunder required of any employees in comparable positions to Executive; provided, however, that if Executive commences employment with a new employer during that three-year period and receives comparable benefit
coverage to that being provided by the Bank, then Executive’s participation in the benefit plans provided by Bank shall cease immediately upon the date Executive begins participation in his new employer’s plan(s). 

 3.    No Other Amendment. Except as specifically amended pursuant
to this First Amendment, the Agreement remains in full force and effect in accordance with its terms. 
 4.    Governing Law. This First Amendment shall be governed, construed and interpreted in accordance with the laws of the State of North Carolina, without giving effect to principles of conflicts of laws.

 5.    Counterparts. This First Amendment may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 6.    Binding Effect. This First Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their heirs, successors and assigns. 
 7.    Effect of Amendment. Except as expressly amended herein, the terms of the Agreement are incorporated herein
by reference as if fully set out and shall remain in full force and effect in accordance with their terms. 
 IN WITNESS
WHEREOF, the parties have executed this First Amendment to the Agreement effective as of the Effective Date. 
  

			
	 NORTH STATE BANK:

		
	BY:	 	/S/ LARRY D. BARBOUR
		 	Larry D. Barbour
		 	President and Chief Executive Officer

  

	
	 EXECUTIVE:

	
	/S/ KIRK A. WHORF
	Kirk A. Whorf

  

 2 

 CHANGE IN CONTROL AGREEMENT BETWEEN NORTH STATE BANK 
 AND KIRK WHORF 
 THIS CHANGE IN CONTROL AGREEMENT (the “Agreement”) is made and entered into on this 30th day of December, 2009, (“Effective Date”) by and between North State Bank (the “Bank”) and Kirk A. Whorf
(“Executive”). 
 WHEREAS, as of the Effective Date, Executive is employed by the Bank as Senior Vice President and
Chief Financial Officer, and as of the date of execution of this Agreement is employed in such capacity; 
 WHEREAS, the Bank
desires to retain the services of Executive; and 
 WHEREAS, the parties to this Agreement desire to establish mutually
satisfactory arrangements in the event there is a termination of services of Executive under circumstances provided for hereinafter. 
 NOW, THEREFORE, for and in consideration of the premises and the following covenants, the parties do hereby mutually agree: 
 1. Definitions. Capitalized terms used in this Agreement shall have the following definitions: 
  

	 	(a)	“Base Salary” means the annualized salary paid to Executive by the Bank during the last full month immediately preceding the Termination Date.

  

	 	(b)	“Bonuses” shall mean any and all incentive bonuses or discretionary bonuses granted to Executive within the most current 12-month period during
the term of this Agreement. 

  

	 	(c)	“Cause” means (i) the breach of or negligent inattention to Executive’s duties as Senior Vice President and Chief Financial Officer of
the Bank; (ii) malfeasance of office or disloyalty to the Bank; (iii) plea of guilty or no contest to either a felony or an unlawful act involving fraud or moral turpitude; or (iv) removal of Executive by federal or state regulators
following a takeover of the Bank by such regulators. 

  

	 	(d)	 “Change in Control” means (A) the acquisition at any time by a “person” or “group” (as such terms are
used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)) who or which are the beneficial owners (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities representing
more than 40% of the combined voting power in the election of directors of the then outstanding securities of the Bank or North State Bancorp (“Bancorp”) or any

	 	 
successor of the Bank or Bancorp, unless the acquisition of securities resulting in such ownership by such person or group had been approved by the Board of Directors of Bancorp (the
“Board”); (B) the termination of service of directors, for any reason other than death, disability or retirement from the Board, during any period of two consecutive years or less, of individuals who at the beginning of such period
constituted a majority of the Board, unless the election of or nomination for election of each new director during such period was approved by a vote of at least a majority of the directors still in office who were directors at the beginning of the
period; (C) approval by the shareholders of Bancorp or the Bank, respectively, of any sale or disposition of substantially all of the assets or earning power of the Bank or Bancorp; or (D) approval by the shareholders of Bancorp or the
Bank of any merger, consolidation, or statutory share exchange to which Bancorp or the Bank, respectively, is a party as a result of which the persons who were stockholders immediately prior to the effective date of the merger, consolidation or
share exchange shall have beneficial ownership of less than 50% of the combined voting power in the election of directors of the surviving corporation. Each determination concerning whether an event constitutes a Change in Control shall be made in a
consistent manner as to the particular event with respect to all participants at the time of the event. 

  

	 	(e)	“Compensation Committee” shall mean the Compensation Committee of the Board of Directors of Bancorp. 

  

	 	(e)	“Retirement” shall mean the date that Executive reaches the age of 65 or the date Executive retires in accordance with the Bank’s normal
retirement provisions of any retirement plans established for Executive. 

  

	 	(f)	“Termination Date” shall mean the date on which Executive’s employment with the Bank is terminated. 

  

	 	(g)	“Total Compensation” shall mean Base Salary plus any Bonuses. 

  

	 	(h)	“Total and Permanent Disability” shall have occurred if Executive (i) has established to the satisfaction of the Compensation Committee
that he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than six months; and (ii) has satisfied any
requirement imposed by the Compensation Committee in regard to evidence of such disability. 

 2. Executive
Duties. In consideration of the Bank’s obligations under this Agreement, Executive agrees to carry out his duties to the best of his abilities, as may be assigned to his from time to time by the Bank. Executive further agrees to devote his
full working time and energies to the business of the Bank, provided such duties shall be consistent with his position as Senior Vice President and Chief Financial Officer of the Bank. 
  

 2 

 3. Term of Agreement. The term of this Agreement shall commence on December 1,
2009 (the “Commencement Date”), and shall remain in full force for a period of three (3) years thereafter. Such term shall be automatically renewed for an additional year on each anniversary of the Commencement Date and shall
continuously renew thereafter, unless the Bank provides Executive with 30 days’ advance written notice of non-renewal. The parties hereto specifically agree and acknowledge that nothing in this Agreement shall mean that Executive is employed
for any specific term and further that Executive is an employee at-will. If Executive’s employment with the Bank is terminated by the Bank or if Executive resigns voluntarily, the Bank shall pay Executive any accrued Base Salary through the
Termination Date. Except for any accrued, unpaid Base Salary and except as otherwise provided in Sections 4 and 7 hereof, the Bank has no obligation to make any payment to Executive in connection with the termination of employment with the Bank.

 4. Termination due to Death, Disability or Retirement. If the Executive’s employment with Bank is terminated due
to Executive’s death, Total and Permanent Disability or Retirement, Executive (or Executive’s heirs or beneficiaries in the event of Executive’s death), shall be entitled to receive: 
  

	 	(a)	payment of any accrued, unpaid Base Salary through the Termination Date; and 

  

	 	(b)	payment of any life insurance, disability or other benefits, if any, for which Executive is then eligible under the terms of the Bank’s employee retirement,
benefit and welfare plans; and, in the case of death or Total and Permanent Disability, a right to immediately vest in 100% of all options to purchase Common Stock of Bancorp that have been granted to Executive, to be exercised in accordance with
the terms of any grant documents. 

 5. Termination for Cause. If Executive’s employment is terminated
by the Bank for Cause, Executive shall receive only the payment of any accrued, unpaid Base Salary through the Termination Date. 
 6. Termination in Connection with a Change in Control. If Executive’s employment is terminated at any time within three years after a Change in Control that occurs during the term of this Agreement under those circumstances
stated in subparagraph (a) or (b) below of this Section 6, and only in such circumstances, provided that Executive executes and does not revoke a general release of claims in the Bank’s favor in a form acceptable to the Bank,
Executive shall be entitled to receive those payments and benefits from the Bank as set forth in Section 7 herein. The circumstances to which this Section 6 applies are: 
  

	 	(a)	 Termination by the Bank, unless Executive’s termination is due to (i) Cause; (ii) Executive’s death or Total and Permanent
Disability; (iii)

  

 3 

	 	 
Executive’s Retirement; or (iv) Executive’s attainment of normal Retirement as provided under any Bank retirement plan in effect immediately preceding such date or the attainment;
or 

  

	 	(b)	Executive’s voluntary termination following the occurrence of any of the following events: 

  

	 	(i)	the reduction of Executive’s then-current Base Salary (including any deferred portions thereof) or level of benefits or supplemental compensation; or

  

	 	(ii)	the transfer of Executive to a location that is more than fifty (50) miles from Executive’s current office location; or a material increase in the amount of
out of town business travel normally required of Executive in connection with his employment. 

 7. Change in
Control Benefits. If Executive’s employment is terminated pursuant to Section 6 hereof, and subject to Executive executing a release of claims in the Bank’s favor in a form acceptable to the Bank, the Bank agrees to provide or to
cause to be provided to Executive the following rights and benefits (collectively, the “Change in Control Benefits”): 
  

	 	(a)	Severance Payment. Executive shall be entitled to receive payment from the Bank in cash in an amount equal to three (3) years of Total Compensation, payable
monthly, over the three-year period beginning immediately after the Termination Date. In the event of Executive’s death before the Bank can complete all required payments under this Section 7(a), any remaining payments due Executive shall
be distributed to such beneficiary as Executive may from time to time designate in writing to the Bank, and if no such beneficiary is named, such sums shall be paid to Executive’s estate; 

  

	 	(b)	 Vesting Schedules for Other Compensation. Unless prohibited by law, if Executive is entitled to receive any sums or awards pursuant to
compensation plans in effect during Executive’s employment with the Bank, any and all vesting or maturity schedules or other rights conditioned upon the passage of time set forth in such compensation plans shall (i) if such plans have a
vesting schedule of less than three years, then the vesting schedule shall immediately lapse and Executive shall be fully vested in such plan; or (ii) if such plan has a vesting schedule of more than three years, then the vesting schedule of
such plan shall immediately be deemed to have a vesting schedule of three years. If any such immediate lapse or three-year vesting schedule set out in this Paragraph 7(b) causes any Bank compensation plan that is then a “qualified” plan
under the Internal Revenue Code to become non-qualified or causes any other materially adverse consequences to the Bank or its other employees, then

  

 4 

	 	 
such immediate lapse or three-year vesting schedule shall not occur. In such event, the Bank shall make such payments or otherwise provide comparable benefits or payments as may be, in the
opinion of a mutually acceptable qualified third party, necessary to make the payments or benefits to Executive substantially equal to those to which he would have been entitled if such immediate lapse or three-year vesting had occurred;

  

	 	(c)	Health Insurance Benefits. If Executive timely elects to continue his health insurance benefits under COBRA after the termination of his employment, for a period
of up to eighteen (18) months or such greater period as Executive is eligible for continuation coverage under COBRA, the Bank will continue to pay an amount equal to the employer portion of Executive’s insurance premiums such that
Executive’s coverage under such life insurance, medical insurance, and accident and disability insurance plans will continue at the level in effect on the Termination Date, subject to Executive making payments thereunder required of any
employees of the Bank in comparable positions to Executive; thereafter, the Bank will pay to Executive a monthly amount equal to the employer’s portion of Executive’s insurance premiums, as provided under the first clause of this
Section 7(c), through the third anniversary of the termination of Executive’s employment; provided, however, that if Executive commences employment with a new employer at any time during that three-year period and receives
comparable benefit coverage to that being provided by the Bank, then Executive’s participation in the benefit plans provided by the Bank shall cease immediately upon the date Executive begins participation in his new employer’s plan(s) and
the Bank shall be released from any further obligation under this Paragraph 7(c). 

  

	 	(d)	Other Insurance Benefits. For the three (3) year(s) after the Termination Date, the Bank shall continue Executive’s coverage under such life insurance
and accident and disability insurance plans at the level in effect for the Executive on the Termination Date, subject to Executive making payments thereunder required of any employees in comparable positions to Executive; provided,
however, that if Executive commences employment with a new employer during that three-year period and receives comparable benefit coverage to that being provided by the Bank, then Executive’s participation in such benefit plans of the
Bank shall cease immediately upon the date Executive begins participation in his new employer’s plan(s). 

 However, payment of the Change of Control Benefits shall be subject to the following restrictions and reductions: 
  

	 	(a)	If the Change of Control Benefits otherwise payable to Executive hereunder would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended (the “Code”), such Payment shall be reduced to the extent necessary to prevent imposition of such excise tax. 

  

 5 

	 	(b)	If the Change of Control Benefits provided to the Executive under this Agreement in connection with his termination of employment are determined, in whole or in part,
to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code, and the Executive is a “specified employee” as defined in Section 409A(2)(B)(i) of the Code, such Change of Control
Benefits shall not be paid before the day that is six (6) months plus one (1) day after the termination date (the “New Payment Date”). The aggregate of any payments that otherwise would have been paid to the Executive during the
period between the termination date and the New Payment Date shall be paid to the Executive in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be
paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. 

 8. Nonexclusion. The foregoing Change in Control Benefits are not intended to exclude Executive’s participation in other benefit plans in which Executive currently participates or which may become available to Executive, nor to
preclude Executive’s participation in any other compensation or benefit plans that the Bank has in effect during Executive’s employment with the Bank. 
 9. Tax Liability. The Bank has and shall have no responsibility or obligation for any income tax or other tax costs or liabilities incurred by Executive as a result of or in connection with any,
payments or payment obligations by the Bank to Executive under this Agreement, and all such payments and payment obligations shall be computed without regard to any tax effects to Executive. 
 10. No Duty to Mitigate. Except as otherwise provided in Section 7(c), the Bank’s promise to pay or cause to be paid to
Executive pursuant to the provisions of Section 7 are absolute and unconditional, and shall not be affected by any duty by Executive to mitigate damages or by any other circumstances, including, without limitation, any rights of set-off,
counterclaim, recoupment, defense, or other rights which the Bank may have against Executive or others. 
 11. Additional
Actions and Documents. Bank and Executive acknowledge and agree that there may be significant legal issues or restrictions arising under banking, securities, corporate or other laws that may affect the Bank’s and Executive’s ability to
comply with the terms of this Agreement (particularly with respect to stock option and restricted stock award plans), but that have not been determined as of the Effective Date. Accordingly, Bank and Executive agree to take or cause to be taken such
further actions to execute, deliver, and file or cause to be executed, delivered and file such further documents, and will obtain such consents, as may be necessary or as may be reasonably requested in order to fully effectuate the purposes, terms,
and conditions of this Agreement. 
  

 6 

 12. Miscellaneous. This Agreement constitutes the entire Agreement between the
parties and supersedes all memoranda, discussions, correspondence and agreements prior to the date of execution of this Agreement. This Agreement shall be binding on the heirs, executors, administrators, successors and assigns of the parties. This
Agreement is to be governed by the laws of the state of North Carolina. The state or federal courts sitting in Wake County, North Carolina will have the exclusive power to adjudicate any disputes arising out of this Agreement. If any part of this
Agreement shall be held invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the validity of this Agreement as a whole or other remaining parts thereof. This Agreement may not be modified or amended orally,
but only by an instrument in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. 
 IN WITNESS WHEREOF, the parties have executed this Change in Control Agreement as of the Effective Date. 
  

			
	 NORTH STATE BANK:
  
  

	BY:	 	 
		 	Larry D. Barbour
		 	President and Chief Executive Officer

  

			
	 EXECUTIVE:
  
  

		 	Kirk A. Whorf

  

 7

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