Document:

Separation agreement

 Exhibit 10.1 
 August 16, 2011 
 Michael J. Borman 

 

	Re:	Separation Agreement 

 Dear Mike: 

This letter agreement (this “Agreement”) constitutes the agreement between you and Blue Coat Systems, Inc. (the
“Company”) regarding your separation from employment with the Company. 
 Separation Date. Your
employment with the Company will terminate on August 16, 2011 (hereinafter “Separation Date”). As of the Separation Date, you resign from all of your positions with the Company and its subsidiaries. As of the Separation Date,
you resign from the Company’s Board of Directors. 
 Final Salary; COBRA. Regardless of whether you sign the Release
(as defined in Section 4), you will be paid the balance of your earned salary through the Separation Date, which shall be paid in accordance with applicable law. As of the Separation Date, you will no longer be eligible to participate in any of
the Company’s benefit or compensation plans, except as provided by law or the terms of the applicable plans, and your Company equity awards will cease vesting. Information regarding your rights to continuation of your health insurance coverage
under the terms of COBRA will be sent to you under separate cover. To the extent that you have such rights, nothing in this Agreement will impair them. 
 Status as of Separation Date. As of your Separation Date, you will no longer be an employee of the Company or its affiliates. As of your Separation Date, you will return to the Company any building
key, security pass, or other access or identification cards (including any business cards) and any company property that is currently in your possession, including any documents, credit cards, computer equipment and mobile phones. By no later than
ten days after your Separation Date, you will clear all expense accounts and pay all amounts owed on any corporate credit card(s) that the Company previously issued to you. The Company will reimburse you in accordance with its existing policies for
any legitimate expenses you incurred on company business prior to the effective date of your termination consistent with the Company’s expense reimbursement policy. 

 Separation Benefits. In consideration of your execution of the execution of the
General Release of All Claims in the form attached hereto as Exhibit A (the “Release”), the Company will provide to you the following separation benefits (the “Separation Benefits”), less customary payroll
deductions, if you sign and do not revoke this Agreement, and subject to your compliance with this Agreement and the Release: 
 The amount of $1,170,000, representing an amount equal to your annual base salary and 100% of your annual target compensation, which shall be paid in a single lump sum on the 35th calendar day following
the Separation Date; and 
 If you timely elect COBRA coverage for yourself and your eligible dependents, reimbursement of COBRA premiums for up
to 12 months from your Separation Date (which payment shall be made no later than the month of such coverage), subject to earlier cessation in the event you become eligible for group health coverage from another employer. 

CEO Change in Control Severance Agreement. Notwithstanding anything to the contrary in this Agreement, including without limitation payment
of the Separation Benefits and your execution and non-revocation of this Agreement and/or the Release, in the event of a Change in Control (as defined in the CEO Change in Control Severance Agreement between you and the Company, dated
September 1, 2010 (the “CEO Change in Control Agreement”)) occurring on or prior to October 16, 2011 and provided you satisfy the conditions set forth in such CEO Change in Control Agreement, you shall be entitled to all
of the Change in Control Severance Benefits (as defined in the CEO Change in Control Agreement), less any amount previously paid as Separation Benefits under this Agreement. 
 Arbitration. Any dispute relating to the terms of your Separation or the Release (“Dispute”), shall be finally resolved by arbitration under the administration of JAMS and in accordance
with the then-current JAMS Employment Arbitration Rules & Procedures (“Rules”) in Santa Clara County, California. Copies of these rules are available at http://www.jamsadr.com, and shall be made available to you upon request. Any
disputes concerning the enforcement, scope, or applicability of this Arbitration Provision shall in the first instance be determined by the arbitrator in accordance with the Federal Arbitration Act. Should either of us disregard this provision and
initiate an action in any court or administrative agency with respect to a Dispute, the other party may apply to a court of competent jurisdiction to order the matter to arbitration. The prevailing party in any such hearing shall be entitled to
recover its reasonable costs and attorneys’ fees incurred in connection therewith. 
 Either of us may initiate arbitration
to resolve a Dispute by delivering to the other party through personal delivery, certified or registered mail, a written demand for arbitration. The demand shall include a concise statement of the issue(s) to be arbitrated, along with a statement
setting forth the relief requested. Along with the demand for arbitration, if you are the filing party, you shall submit a check or money order payable to “JAMS” in the amount of the then prevailing JAMS initial Case Management Fee, as
your portion of the administrative fees of the arbitration. Thereafter, the remaining costs of the arbitration (such as the arbitrator’s fees, costs of a court reporter, and room rental fees, if any), but not the cost of any transcript, shall
be paid by the Company. Any remaining fees and costs, including but not limited to attorneys’ fees shall, subject to any remedy to which the prevailing party may be entitled to under the law, be borne by each party to the same extent as that
party would be responsible for such fees and costs were the 

 
Dispute litigated in court. Any demand for arbitration by either of us must be filed within the statute or statutes of limitation that is or are applicable to the claim or claims relating to the
Dispute upon which arbitration is sought or required. Any failure to request arbitration within this time frame and according to this Arbitration Provision shall constitute a waiver of all rights to raise any claims in any forum arising out of the
Dispute. 
 The arbitrator shall be empowered to award either party any remedy at law or in equity to which the prevailing party
would otherwise have been entitled had the Dispute been litigated in court, including but not limited to, general, special and punitive damages, recoverable costs, attorney fees (where provided by statute or contract) and injunctive relief;
provided, however, that the authority to award any remedy is subject to whatever limitations, if any, exist in the applicable law on such remedies. The arbitrator shall have no jurisdiction to issue any award contrary to or inconsistent with law.
The arbitrator shall issue a signed written statement regarding the disposition of each claim of the Dispute and the relief, if any, awarded as to each claim. The arbitrator will also provide a concise written statement of the reasons for the award,
stating the essential findings and conclusions on which the award was based. 
 Governing Law. This Agreement will in all
respects be interpreted and governed under the laws of the State of California. 
 Governing Law. This Agreement will in
all respects be interpreted and governed under the laws of the State of California. 
 Severability. If any provision of
this Agreement is determined by an arbitrator or court of competent jurisdiction to be invalid, unenforceable or void, such provision shall be enforced to the extent permitted by law and the remainder of this Agreement shall remain in full force and
effect. 
 Consideration and Acceptance of Agreement; Effective Date of Agreement. You have 21 days to consider and
accept the terms of this Agreement and the Release (although you may accept it at any time within those 21 days). Once signed, please send the Agreement and the Release to the attention of Betsy E. Bayha, General Counsel, at the Company. The date of
your signature will constitute the “effective date” of this Agreement. This Agreement may be signed in counterparts, which together shall constitute one agreement. Notifications given under this Agreement and with respect to the Release
should be personally delivered, sent by recognized international courier (e.g. Federal Express) with a return receipt requested or sent certified mail. 
 No Further Claims. As of the date of your signature below, you agree that you have received all compensation and benefits owed to you by the Company (except your earned salary through the
Separation Date and, if you sign and do not revoke the Release, the Severance Payment). As of the date of your signature below, you have no employment-related claims against the Company and have no intention of filing such claims in the future. You
further acknowledge that you have not assigned any claims arising out of your employment to any third party. 

 We wish you every success in your future endeavors. 

 

			
	Sincerely,
	
	Blue Coat Systems, Inc.
		
	By:	 	 /s/ David W. Hanna

		 	David W. Hanna
		 	Chairman of the Board of Directors

 By signing this Agreement, I acknowledge that I have carefully reviewed and considered this Agreement; that I fully
understand all of its terms; and that I voluntarily agree to them. 
  

	
	 /s/ Michael J. Borman

	Michael J. Borman
	
	Dated: August 17, 2011

 GENERAL RELEASE OF CLAIMS 

Michael J. Borman (“Employee”), on Employee’s own behalf and on behalf of Employee’s heirs, executors, administrators
and assigns, to the fullest extent permitted by applicable law, hereby fully and forever releases and discharges Blue Coat Systems, Inc. (the “Company”) and its past, present and future directors, officers, employees, agents, successors,
predecessors, subsidiaries, parent, shareholders, employee benefit plans and assigns (together called “the Releasees”), from all known and unknown claims and causes of action including, without limitation, any claims or causes of action
arising out of or relating in any way to Employee’s employment with the Company, including the termination of that employment. 
 Employee understands and agrees that this General Release of All Claims (the “Release”) is a full and complete waiver of all claims including, without limitation, claims of wrongful discharge,
constructive discharge, breach of contract, breach of the covenant of good faith and fair dealing, harassment, retaliation, discrimination, violation of public policy, defamation, invasion of privacy, interference with a leave of absence, personal
injury or emotional distress and claims under Title VII of the Civil Rights Act of 1964, the Fair Labor Standards Act, the Equal Pay Act of 1963, the Americans With Disabilities Act, the Civil Rights Act of 1866, the Age Discrimination in Employment
Act of 1967 (ADEA), the California Labor Code, the California Fair Employment and Housing Act or any other federal or state law or regulation relating to employment or employment discrimination. Employee further understands and agrees that this
waiver includes all claims, known and unknown, to the greatest extent permitted by applicable law. Notwithstanding the foregoing, this Release does not apply to (x) claims which cannot be released as a matter of law, (y) any right Employee
may have to enforce the Agreement or (z) Employee’s eligibility for indemnification in accordance with applicable laws, the charter and bylaws of the Company or any indemnification agreement or fiduciary insurance policy Employee has with
the Company. 
 Employee also hereby agrees that nothing contained in this Release shall constitute or be treated as an
admission of liability or wrongdoing by the Releasees or Employee. 
 In addition, Employee hereby expressly waives any and all
rights and benefits conferred upon Employee by the provisions of Section 1542 of the Civil Code of the State of California, and any law of any jurisdiction of similar effect. Section 1542 states as follows: 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of
executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 

If any provision of this Release is found to be unenforceable, it shall not affect the enforceability of the remaining provisions and the
court shall enforce all remaining provisions to the fullest extent permitted by applicable law. 

 This Release constitutes the entire agreement between Employee and Releasees with regard to
the subject matter of this Release. It supersedes any other agreements, representations or understandings, whether oral or written and whether express or implied, which relate to the subject matter of this Release. Employee understands and agrees
that this Release may be modified only in a written document signed by Employee and a duly authorized officer of the Company. 

Employee agrees that the Company shall have no duty to provide to Employee any severance benefits described in the Agreement unless and
until Employee (a) has signed the Company’s Proprietary Information and Inventions Agreement (“PIIA”) and (b) has returned to the Company any and all of the Company’s property in Employee’s possession or under
Employee’s control (including, but not limited to, cellular phones; computers; keys; credit cards; access badges; Company files or documents, including copies thereof; or facsimile machines). Employee further agrees that at all times in the
future Employee shall remain bound by the PIIA. 
 Employee understands that Employee has the right to consult with an attorney
before signing this Release. Employee also understands that Employee has 21 days after receipt of this Release to review and consider this Release, discuss it with an attorney of Employee’s own choosing, and decide to execute it or not execute
it. Employee also understands that Employee may revoke this Release during a period of seven days after Employee signs it and that this Release will not become effective for seven days after Employee signs it (and then only if Employee does not
revoke it). In order to revoke this Release, within seven days after Employee executes this Release Employee must deliver to Betsy E. Bayha, General Counsel, at the Company a letter stating that Employee is revoking it. Employee understands that if
Employee chooses to revoke this Release within seven days after Employee signs it, Employee will not receive any Severance Payment and the Release will have no effect. 
 Employee states that before signing this Release, Employee: 
 Has read it;

 Understands it; 
 Knows that he is giving up important rights; 
 Is aware of his or her right to
consult an attorney before signing it; and 
 Has signed it knowingly and voluntarily. 

 

	
	 /s/ Michael J. Borman

	Michael J. Borman
	
	Dated: August 17, 2011Exchange Agreement

 Exhibit 10.1 

 
  

 
  
 EXCHANGE AGREEMENT 
 by and between 

FNB UNITED CORP. 
 and 
 THE UNITED STATES DEPARTMENT OF THE TREASURY 

 
 Dated as of August 12, 2011 

 
  
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	ARTICLE I THE CLOSING; CONDITIONS TO THE CLOSING	  			
			
	 Section 1.1
	  	The Closing.	  	 	2	  
	 Section 1.2
	  	Interpretation.	  	 	4	  
		
	ARTICLE II EXCHANGE	  			
			
	 Section 2.1
	  	Preferred Exchange.	  	 	5	  
	 Section 2.2
	  	Warrant Exchange.	  	 	5	  
	 Section 2.3
	  	Exchange Documentation.	  	 	5	  
	 Section 2.4
	  	Status of Preferred Shares after Closing.	  	 	5	  
		
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  			
			
	 Section 3.1
	  	Existence and Power.	  	 	5	  
	 Section 3.2
	  	Authorization and Enforceability.	  	 	6	  
	 Section 3.3
	  	Exchange Shares.	  	 	6	  
	 Section 3.4
	  	Amended Warrant and Warrant Shares.	  	 	6	  
	 Section 3.5
	  	Non-Contravention.	  	 	7	  
	 Section 3.6
	  	Anti-Takeover Provisions and Rights Plan.	  	 	8	  
	 Section 3.7
	  	No Company Material Adverse Effect.	  	 	8	  
	 Section 3.8
	  	Offering of Securities.	  	 	8	  
	 Section 3.9
	  	Brokers and Finders.	  	 	8	  
		
	ARTICLE IV COVENANTS	  			
			
	 Section 4.1
	  	Commercially Reasonable Efforts.	  	 	8	  
	 Section 4.2
	  	Expenses.	  	 	8	  
	 Section 4.3
	  	Exchange Listing.	  	 	8	  
	 Section 4.4
	  	Access, Information and Confidentiality.	  	 	9	  
	 Section 4.5
	  	Executive Compensation.	  	 	9	  
	 Section 4.6
	  	Certain Notifications Until Closing.	  	 	10	  
	 Section 4.7
	  	Sufficiency of Authorized Common Stock.	  	 	11	  
	 Section 4.8
	  	Monthly Lending Reports.	  	 	11	  
	 Section 4.9
	  	Status Reports.	  	 	11	  
		
	ARTICLE V ADDITIONAL AGREEMENTS	  			
			
	 Section 5.1
	  	Unregistered Exchange Shares.	  	 	12	  
	 Section 5.2
	  	Legend.	  	 	12	  
	 Section 5.3
	  	Certain Transactions.	  	 	12	  
	 Section 5.4
	  	Transfer of Exchange Shares and Warrant Shares.	  	 	13	  
	 Section 5.5
	  	Registration Rights.	  	 	13	  
	 Section 5.6
	  	Voting Matters.	  	 	14	  
	 Section 5.7
	  	Restriction on Dividends and Repurchases.	  	 	14	  
	 Section 5.8
	  	Repurchase of Investor Securities.	  	 	15	  
	 Section 5.9
	  	Bank Holding Company Status.	  	 	15	  
	 Section 5.10
	  	Compliance with Employ American Workers Act.	  	 	15	  
	 Section 5.11
	  	Observer to the Board of Directors	  	 	16	  

  
 i 

							
		
	ARTICLE VI MISCELLANEOUS	  			
			
	 Section 6.1
	  	Termination.	  	 	16	  
	 Section 6.2
	  	Survival of Representations and Warranties.	  	 	16	  
	 Section 6.3
	  	Amendment.	  	 	16	  
	 Section 6.4
	  	Waiver of Conditions.	  	 	17	  
	 Section 6.5
	  	Governing Law; Submission to Jurisdiction, etc.	  	 	17	  
	 Section 6.6
	  	Notices.	  	 	17	  
	 Section 6.7
	  	Definitions.	  	 	18	  
	 Section 6.8
	  	Assignment.	  	 	19	  
	 Section 6.9
	  	Severability.	  	 	20	  
	 Section 6.10
	  	No Third-Party Beneficiaries.	  	 	20	  
	 Section 6.11
	  	Entire Agreement, etc.	  	 	20	  
	 Section 6.12
	  	Counterparts and Facsimile.	  	 	20	  
	 Section 6.13
	  	Specific Performance.	  	 	20	  

 LIST OF ANNEXES 
 ANNEX A: FORM OF AMENDED WARRANT 
 ANNEX B: FORM OF OPINION 

ANNEX C: FORM OF WAIVER 
 LIST
OF SCHEDULES 
 SCHEDULE A: CAPITALIZATION 
 SCHEDULE B: COMPANY MATERIAL ADVERSE EFFECT 
 SCHEDULE 5.7(a)(D): WARRANT OFFERING 

  
 ii 

			
	Defined Terms	  	
		
	Additional Equity Investors	  	Recitals
	Affiliate	  	Section 6.7(b)
	Agreement	  	Preamble
	Amended Warrant	  	Recitals
	Anchorage	  	Recitals
	Articles Amendment	  	Section 1.1(d)(i)
	Articles Amendment Proposal	  	Section 1.1(d)(i)
	Benefit Plans	  	Section 1.1(d)(xv)
	Business Combination	  	Section 6.7(c)
	Capitalization Date	  	Section 3.1(b)
	Carlyle	  	Recitals
	Closing	  	Section 1.1(a)
	Closing Date	  	Section 1.1(a)
	Code	  	Section 3.5(c)
	Common Stock	  	Recitals
	CommunityONE	  	Recitals
	Company	  	Preamble
	Company Material Adverse Effect	  	Section 6.7(d)
	Company Subsidiaries	  	Section 4.4(a)
	Compensation Regulations	  	Section 1.1(d)(xv)
	Designated Matters	  	Section 6.7(e)
	EAWA	  	Section 6.7(f)
	EESA	  	Section 1.1(d)(xv)
	Equity Investor	  	Recitals
	Exchange	  	Recitals
	Exchange Act	  	Section 5.3(b)
	Exchange Shares	  	Recitals
	GAAP	  	Section 5.7(a)(ii)
	Governmental Entities	  	Section 1.1(c)
	Granite	  	Recitals
	Information	  	Section 4.4(c)
	Investor	  	Preamble
	Junior Stock	  	Section 6.7(g)
	Merger	  	Recitals
	Merger Agreement	  	Recitals
	NASDAQ	  	Section 1.1(d)(xiii)
	Oak Hill	  	Recitals
	Observer	  	Section 5.11
	Old Warrant	  	Recitals
	Other Transactions	  	Section 4.9
	Parity Stock	  	Section 6.7(h)
	Preferred Exchange	  	Recitals
	Preferred Shares	  	Recitals
	Preferred Stock	  	Section 6.7(i)
	Previously Disclosed	  	Section 6.7(j)
	Private Placement	  	Recitals
	Purchase Price	  	Recitals
	Relevant Period	  	Section 1.1(d)(xv)
	Requisite Shareholder Vote	  	Section 1.1(d)(i)
	Reverse Stock Split	  	Recitals

  
 iii

			
	Defined Terms	  	
		
	SEC	  	Section 3.5(b)
	Securities Act	  	Recitals
	Section 4.5 Employee	  	Section 4.5(b)
	Securities Purchase Agreement	  	Recitals
	Senior Executive Officers	  	Section 1.1(d)(xv)
	Share Dilution Amount	  	Section 5.7(a)(ii)
	Share Issuance Proposal	  	Section 1.1(d)(i)
	Shareholder Proposals	  	Section 1.1(d)(i)
	Status Report	  	Section 4.9
	Stock Split Proposal	  	Section 1.1(d)(i)
	subsidiary	  	Section 6.7(a)
	SunTrust	  	Recitals
	SunTrust Settlement	  	Recitals
	Targeted Completion Date	  	Section 4.9
	Tax Benefits Preservation Plan	  	Section 3.6
	Transfer	  	Section 5.4
	Warrant Exchange	  	Recitals
	Warrant Shares	  	Section 3.2(a)
	Warrant Offering	  	Recitals

  
 iv 

 EXCHANGE AGREEMENT, dated as of August 12, 2011 (this “Agreement”) by
and between FNB United Corp., a North Carolina corporation (the “Company”), and the United States Department of the Treasury (the “Investor”). All capitalized terms used herein and not otherwise defined shall have
the respective meanings ascribed to them in the Securities Purchase Agreement. 
 BACKGROUND 

WHEREAS, the Investor is, as of the date hereof, the beneficial owner of 51,500 shares of the Company’s preferred stock designated
as “Fixed Rate Cumulative Perpetual Preferred Stock, Series A”, having a liquidation amount of $1,000 per share (the “Preferred Shares”); 
 WHEREAS, the Company issued the Preferred Shares pursuant to that certain Securities Purchase Agreement – Standard Terms incorporated into a Letter Agreement, dated as of February 13,
2009, between the Company and the Investor (the “Securities Purchase Agreement”); 
 WHEREAS, the Company and
Bank of Granite Corporation (“Granite”) entered into an agreement and plan of merger, dated April 26, 2011, as amended by Amendment No. 1 dated June 16, 2011 (the “Merger Agreement”), pursuant to
which a wholly owned subsidiary of the Company would, subject to the terms and conditions of the Merger Agreement, merge with and into Granite, with Granite surviving as a subsidiary of FNB (the “Merger”). 

WHEREAS, in connection with the Merger Agreement, the Company entered into separate investment agreements, dated April 26, 2011, as
amended by Amendment No. 1 dated June 16, 2011 and Amendment No. 2 dated August 4, 2011 (the “Investment Agreements”) with an affiliate of The Carlyle Group (“Carlyle”) and affiliates of Oak Hill
Capital Partners (together, “Oak Hill Capital” and collectively with Carlyle, the “Lead Investors”), pursuant to which each of Oak Hill Capital and Carlyle agreed, subject to certain conditions, to purchase
493,750,000 shares of the Company’s common stock, no par value (together with the associated preferred share purchase rights under the Tax Benefits Preservation Plan (as defined herein)) (the “Common Stock”) at a price of $0.16
per share (the “Purchase Price”). 
 WHEREAS, the Company has entered into subscription agreements (the
“Subscription Agreements”) with accredited investors, including certain directors and officers of the Company, pursuant to which those investors will agree, subject to certain conditions, to purchase shares of Common Stock at the
Purchase Price, yielding aggregate gross proceeds that, together with the investments by the Lead Investors, will equal no less than $310,000,000, with each such investor to own less than 5% of the outstanding shares of Common Stock as of the
Closing Date after giving effect to the investments by the Equity Investors and the Preferred Exchange (collectively, but excluding the Investor and the Lead Investors, the “Additional Equity Investors” and, together with the Lead
Investors, the “Equity Investors”), in a private placement (the “Private Placement”) exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”); 

WHEREAS, following the Closing, the Company intends to commence a warrant offering, providing holders of record of the Common Stock as of
5:00 p.m., Eastern time, on the date that is one business day prior to the Closing Date with the right to invest in Common Stock at the Purchase Price (the “Warrant Offering”), with such warrants being transferable and
providing for the purchase of a maximum of 3,000,000 shares of Common Stock by the holders of such rights; 
 WHEREAS,
CommunityONE Bank, National Association, a subsidiary of the Company (“CommunityONE”), has entered into an agreement with SunTrust Bank (“SunTrust”) dated August 1, 2011, pursuant to which CommunityONE will
purchase (i) all of the outstanding non-voting, non-convertible, non-redeemable cumulative preferred stock, par value $1.00 per share, of CommunityONE held by SunTrust, for cash consideration equal to (A) 25% of the aggregate liquidation
preference thereof, plus (B) 100% of the accrued and unpaid dividends thereon, and (ii) the Floating Rate Subordinated Note Due 2015 of CommunityONE held by SunTrust, for cash consideration equal to (A) 35% of the aggregate principal
amount thereof, plus (B) 100% of the accrued and unpaid interest thereon ((i) and (ii) together, the “SunTrust Settlement”); 

  
 1 

 WHEREAS, on April 26, 2011, CommunityONE agreed to enter into a deferred prosecution
agreement with the U.S. Attorney for the Western District of North Carolina (the “U.S. Attorney”) and the U.S. Department of Justice (the “DOJ”) to settle potential claims arising from a Grand Jury Subpoena received
by CommunityONE from the U.S. Attorney dated August 11, 2010 (the “DPA”); 
 WHEREAS, the Company and the
Investor desire, in connection with the foregoing recapitalization of the Company, (i) to exchange (the “Preferred Exchange”) all of the Preferred Shares beneficially owned and held by the Investor for shares of Common Stock
representing twenty-five percent (25%) of the aggregate liquidation preference of the Preferred Shares at the Purchase Price, (ii) to exchange (the “Dividend Exchange”) all accrued and unpaid dividends under the Preferred
Shares outstanding immediately prior to the Closing Date for additional shares of Common Stock at the Purchase Price (such shares of Common Stock described in clauses (i) and (ii), the “Exchange Shares”), and (iii) to
amend the terms of that certain warrant, dated February 13, 2009, to purchase 2,207,143 shares of Common Stock granted by the Company for the benefit of the Investor (the “Old Warrant”) pursuant to an amended and restated
warrant to purchase 2,207,143 shares of Common Stock, in substantially the form attached hereto as Annex A (the “Amended Warrant”), on the terms and subject to the conditions set forth herein (the “Warrant
Exchange” and together with the Preferred Exchange and the Dividend Exchange, the “Exchange”). 
 NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows: 

ARTICLE I 

THE CLOSING; CONDITIONS TO THE CLOSING 
 Section 1.1    The Closing. 

(a)    The closing of the Exchange (the “Closing”) will take place at the offices of Paul, Weiss,
Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New York, 10019, or remotely via the electronic or other exchange of documents and signature pages, as the parties may agree. The Closing shall take place on
the day of the closing of the transactions contemplated by the Investment Agreements; provided that the conditions set forth in Section 1.1(c) and (d) shall have been satisfied or waived, or at such other place, time and date as
shall be agreed between the Company and the Investor. The time and date on which the Closing occurs is referred to in this Agreement as the “Closing Date”. 
 (b)    Subject to the fulfillment or waiver of the conditions to the Closing in this Section 1.1, at the Closing (i) the Company will deliver the Amended Warrant and the
Exchange Shares to the Investor, as evidenced by one or more certificates dated the Closing Date and registered in the name of the Investor or its designee(s) (or if shares of Common Stock are uncertificated, cause the transfer agent for the Common
Stock to register the Exchange Shares in the name of the Investor and deliver reasonably satisfactory evidence of such registration to the Investor) and (ii) the Investor will deliver the certificate representing the Preferred Shares and the
original Old Warrant to the Company. 
 (c)    The respective obligations of each of the Investor and the
Company to consummate the Exchange are subject to the fulfillment (or waiver by the Company and the Investor, as applicable) prior to the Closing of the conditions that (i) any approvals or authorizations of all United States and other
governmental, regulatory or judicial authorities (collectively, “Governmental Entities”) required for the consummation of the Exchange shall have been obtained or made in form and substance reasonably satisfactory to each party and
shall be in full force and effect and all waiting periods required by United States and other applicable law, if any, shall have expired, and (ii) no provision of any applicable United States or other law and no judgment, injunction, order or
decree of any Governmental Entity shall prohibit consummation of the Exchange as contemplated by this Agreement. 

  
 2 

 (d)    The obligation of the Investor to consummate the Exchange is also
subject to the fulfillment (or waiver by the Investor) at or prior to the Closing of each of the following conditions: 
 (i)    the Company shall have called a meeting of its shareholders to vote on (A) an amendment to the Company’s Articles of Incorporation (the “Articles
Amendment”) reflecting an increase in the amount of authorized shares of Common Stock sufficient to issue all shares of Common Stock to be issued to the Equity Investors and to the Investor as contemplated by this Agreement (the
“Articles Amendment Proposal”), (B) the issuance of shares of Common Stock to the Equity Investors and the Investor as contemplated by this Agreement and as required by Rule 5635 of the NASDAQ Listing Rules (the
“Share Issuance Proposal”), and (C) an amendment to the Company’s Articles of Incorporation reflecting the approval of a 100 for 1 reverse stock split of the Common Stock (the “Reverse Stock Split”), if
such approval is required by the NASDAQ Listing Rules or as the Company otherwise deems necessary (the “Stock Split Proposal,” and together with the Articles Amendment Proposal and the Stock Split Proposal, the “Shareholder
Proposals”), and each of the Shareholder Proposals shall have been approved by a majority of the votes cast on such proposal at such meeting (the “Requisite Shareholder Vote”); 

(ii)    all conditions precedent to the Merger (other than those conditions that by their nature are
to be satisfied at the closing of the Merger) shall have been satisfied on the terms set forth therein; 

(iii)    the Company shall have filed with the State of North Carolina the Articles Amendment and
such filing shall have been accepted; 
 (iv)    all conditions precedent to the
transactions contemplated by the Investment Agreements (other than those conditions that by their nature are to be satisfied at the closing of the transactions contemplated by the Investment Agreements) shall have been satisfied on the terms set
forth therein so that simultaneously with the Closing, the Company shall issue Common Stock to the Lead Investors in accordance with the Investment Agreements and shall issue Common Stock to the Additional Equity Investors in the Private Placement
for aggregate gross proceeds to the Company of not less than $310,000,000; 
 (v)    the
SunTrust Settlement shall have been effected; 
 (vi)    the DPA shall have become
effective; 
 (vii)    all approvals required to be obtained under the written agreement
entered into by the Company with the Federal Reserve Bank of Richmond shall have been obtained; 

(viii)    (A) the representations and warranties of the Company set forth
in Article III of this Agreement shall be true and correct in all respects as though made on and as of the Closing Date (other than representations and warranties that by their terms speak as of another date, which representations and
warranties shall be true and correct in all respects as of such other date) and (B) the Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing;

 (ix)    the Investor shall have received a certificate signed on behalf of the Company by
a senior executive officer certifying to the effect that the conditions set forth in Section 1.1(d)(viii) have been satisfied; 
 (x)    the Investor shall have received a certificate signed on behalf of the Company by a senior executive officer thereof certifying that all conditions precedent to the Closing have
been satisfied or waived; 

  
 3 

 (xi)    the Company shall have executed the Amended
Warrant and delivered such executed Amended Warrant to the Investor or its designee(s); 

(xii)    the Company shall have delivered certificates in proper form or, with the prior consent of
the Investor, evidence in book-entry form, evidencing the Exchange Shares to the Investor or its designee(s); 

(xiii)    the Company shall have delivered to the Investor written opinions from counsel to the
Company, addressed to the Investor and dated as of the Closing Date, in substantially the form attached hereto as Annex B; 
 (xiv)    the Exchange Shares and Warrant Shares (as defined below) shall have been authorized for listing on the NASDAQ Stock Market (“NASDAQ”), subject to official
notice of issuance; and 
 (xv)    (A) the Company shall have effected such changes to its
compensation, bonus, incentive and other benefit plans, arrangements and agreements (including golden parachute, severance and employment agreements) (collectively, “Benefit Plans”) with respect to its Senior Executive Officers and
any other employee of the Company or its Affiliates subject to Section 111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, or otherwise from time to time
(“EESA”), as implemented by any guidance, rule or regulation thereunder, as the same shall be in effect from time to time (collectively, the “Compensation Regulations”) (and to the extent necessary for such changes
to be legally enforceable, each of its Senior Executive Officers and other employees shall have duly consented in writing to such changes), as may be necessary, during the period in which any obligation of the Company arising from financial
assistance under the Troubled Asset Relief Program remains outstanding (such period, as it may be further described in the Compensation Regulations, the “Relevant Period”), in order to comply with Section 111 of EESA or the
Compensation Regulations and (B) the Investor shall have received a certificate signed on behalf of the Company by a Senior Executive Officer certifying to the effect that the condition set forth in Section 1.1(d)(xv)(A) has been
satisfied; “Senior Executive Officers” means the Company’s “senior executive officers” as defined in Section 111 of the EESA and the Compensation Regulations. 

Section 1.2    Interpretation. When a reference is made in this Agreement to “Recitals,”
“Articles,” “Sections,” “Annexes” or “Schedules” such reference shall be to a Recital, Article or Section of, or Annex or Schedule to, this Agreement, unless otherwise indicated. The terms
defined in the singular have a comparable meaning when used in the plural, and vice versa. References to “herein”, “hereof”, “hereunder” and the like refer to this Agreement as a whole and not to any particular section
or provision, unless the context requires otherwise. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of
this Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars” mean the lawful currency of the United States of America. Except as expressly
stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations
promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section. References to a “business day” shall mean any day except Saturday, Sunday and any day on which banking institutions
in the State of New York generally are authorized or required by law or other governmental actions to close. 

  
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 ARTICLE II 
 EXCHANGE 
 Section
2.1    Preferred Exchange; Dividend Exchange. 
 On the terms and subject to the
conditions set forth in this Agreement, upon the Closing (i) the Company agrees to issue to the Investor, in exchange for its 51,500 Preferred Shares, 80,468,750 Exchange Shares (representing 25% of the aggregate liquidation preference of the
Preferred Shares divided by the Purchase Price) and (ii) the Investor shall deliver to the Company the Preferred Shares in exchange for such number of Exchange Shares. 
 Simultaneously with the Preferred Exchange, the Company shall deliver to the Investor pursuant to the Dividend Exchange the number of Exchange Shares (rounded to the nearest whole number) determined by
dividing the total amount of accrued and unpaid dividends in respect of the Preferred Shares as of the Closing Date that would otherwise be payable to the Investor (rounded to the nearest whole cent) by the Purchase Price. Following consummation of
the Dividend Exchange, no further cash dividends shall be payable in respect of the Preferred Shares outstanding immediately prior to the Closing Date. 
 Section 2.2    Warrant Exchange. On the terms and subject to the conditions set forth in this Agreement, upon the Closing the Company and the Investor mutually
agree to amend and restate the Old Warrant to reflect the terms and conditions of the Amended Warrant. 

Section 2.3    Exchange Documentation. Settlement of the Exchange will take place on the
Closing Date, at which time the Investor will cause delivery of the Preferred Shares and the Old Warrant to the Company or its designated agent and the Company will cause delivery of the Exchange Shares and the Amended Warrant to the Investor or its
designated agent. 
 Section 2.4    Status of Preferred Shares after Closing. The
Preferred Shares exchanged for the Exchange Shares pursuant to this Article II are being reacquired by the Company and shall have the status of authorized but unissued shares of Preferred Stock of the Company undesignated as to series and may
be designated or redesignated and issued or reissued, as the case may be, as part of any series of preferred stock of the Company; provided that such shares shall not be reissued as Preferred Shares. 

ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Except as Previously
Disclosed, the Company represents and warrants to the Investor as of the date hereof and as of the Closing Date that: 

Section 3.1    Existence and Power. 

(a)    Organization, Authority and Significant Subsidiaries. The Company is duly organized and
validly existing under the laws of the State of North Carolina and has all necessary power and authority to own, operate and lease its properties and to carry on its business in all material respects as it is being currently conducted, and except as
has not, individually or in the aggregate, had and would not reasonably be expected to have a Company Material Adverse Effect, has been duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws of
each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification; each subsidiary of the Company that is a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation
S-X under the Securities Act, including, without limitation, CommunityONE, has been duly formed under the laws of the 

  
 5 

 
United States and is authorized thereunder to transact the business of banking. The Charter and bylaws of the Company, copies of which have been provided to the Investor prior to the date hereof,
are true, complete and correct copies of such documents as in full force and effect as of the date hereof. 

(b)    Capitalization. The authorized capital stock of the Company, and the outstanding
capital stock of the Company (including securities convertible into, or exercisable or exchangeable for, capital stock of the Company) as of the most recent fiscal month-end preceding the date hereof (the “Capitalization Date”) is
set forth on Schedule A. The outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights (and were not issued in
violation of any preemptive rights). Except as provided in the Old Warrant, as of the date hereof, the Company does not have outstanding any securities or other obligations providing the holder the right to acquire Common Stock that is not reserved
for issuance as specified on Schedule A, and the Company has not made any other commitment to authorize, issue or sell any Common Stock except pursuant to this Agreement, the Investment Agreements, the Merger Agreement, the Subscription
Agreements and the Warrant Offering. Since the Capitalization Date, except pursuant to this Agreement, the Investment Agreements, the Merger Agreement, the Subscription Agreements and the Warrant Offering, the Company has not issued any shares of
Common Stock other than (i) shares issued upon the exercise of stock options or delivered under other equity-based awards or other convertible securities or warrants which were issued and outstanding on the Capitalization Date and disclosed on
Schedule A and (ii) shares disclosed on Schedule A. 
 Section
3.2    Authorization and Enforceability. 
 (a)    The
Company has the corporate power and authority to execute and deliver this Agreement and the Amended Warrant and, subject to receipt of the Requisite Shareholder Vote, to carry out its obligations hereunder and thereunder (which includes the issuance
of the Exchange Shares, the Amended Warrant and the shares of Common Stock issuable upon exercise of the Amended Warrant (the “Warrant Shares”)). 

(b)    The execution, delivery and performance by the Company of this Agreement and the Amended
Warrant and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of the Company and its shareholders, and no further approval or authorization is required on the
part of the Company or its shareholders, except for the approval of the Share Issuance Proposal by the Requisite Shareholder Vote. This Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its
terms, subject to the Bankruptcy Exceptions. 
 Section 3.3    Exchange Shares. The
Exchange Shares have been duly and validly authorized by all necessary action except for the approval of the Articles Amendment Proposal by the Requisite Shareholder Vote, and, when issued and delivered pursuant to this Agreement following receipt
of such Shareholder Requisite Vote, such Exchange Shares will be duly and validly issued and fully paid and nonassessable, will not be issued in violation of any preemptive rights, and will not subject the holder thereof to personal liability.

 Section 3.4    Amended Warrant and Warrant Shares. The Amended Warrant has been
duly and validly authorized and, when executed and delivered as contemplated hereby, will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be
limited by applicable Bankruptcy Exceptions. The Warrant Shares have been duly authorized and reserved for issuance by the Company and when so issued and delivered in accordance with the terms of the Amended Warrant will be validly issued, fully
paid and non-assessable, without the necessity of any approval of its stockholders. 

  
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 Section 3.5    Non-Contravention. 

(a)    Subject to the approval of the Shareholder Proposals by the Required Shareholder Vote, the
execution, delivery and performance by the Company of this Agreement, the Amended Warrant, and the consummation of the transactions contemplated hereby and thereby, including the Other Transactions (as defined below), and compliance by the Company
with the provisions hereof and thereof, will not (A) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or
result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of, any lien, security interest, charge or encumbrance upon any of the properties or assets of
the Company or any Company Subsidiary under any of the terms, conditions or provisions of (i) its organizational documents or (ii) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or
obligation to which the Company or any Company Subsidiary is a party or by which it or any Company Subsidiary may be bound, or to which the Company or any Company Subsidiary or any of the properties or assets of the Company or any Company Subsidiary
may be subject, or (B) subject to compliance with the statutes and regulations referred to in the next paragraph, violate any statute, rule or regulation or any judgment, ruling, order, writ, injunction or decree applicable to the Company or
any Company Subsidiary or any of their respective properties or assets except, in the case of clauses (A)(ii) and (B), for those occurrences that, individually or in the aggregate, have not had and would not reasonably be expected to have
a Company Material Adverse Effect. 
 (b)    Other than the filing of the amendment to its
Articles of Incorporation as contemplated by Section 1.1(d)(iii) with the State of North Carolina, any current report on Form 8-K required to be filed with the Securities and Exchange Commission (“SEC”), such filings and
approvals as are required to be made or obtained, and such approvals as are required to be obtained under the written agreement entered into by the Company with the Federal Reserve Bank of Richmond, under any state “blue sky” laws and such
consents and approvals that have been made or obtained, no notice to, filing with or review by, or authorization, consent or approval of, any Governmental Entity is required to be made or obtained by the Company in connection with the consummation
by the Company of the Exchange except for any such notices, filings, reviews, authorizations, consents and approvals the failure of which to make or obtain would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect. 
 (c)    Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, (A) the execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby (including for this purpose the
consummation of the Exchange and the Other Transactions) and compliance by the Company with the provisions hereof will not (1) result in any payment (including any severance payment, payment of unemployment compensation, “excess parachute
payment” (within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”)), “golden parachute payment” (as defined in the EESA, as implemented by the Compensation Regulations) or forgiveness of
indebtedness or otherwise) becoming due to any current or former employee, officer or director of the Company or any Company Subsidiary from the Company or any Company Subsidiary under any benefit plan or otherwise, (2) increase any benefits
otherwise payable under any benefit plan, (3) result in any acceleration of the time of payment or vesting of any such benefits, (4) require the funding or increase in the funding of any such benefits or (5) result in any limitation
on the right of the Company or any Company Subsidiary to amend, merge, terminate or receive a reversion of assets from any benefit plan or related trust and (B) neither the Company nor any Company Subsidiary has taken, or permitted to be taken,
any action that required, and no circumstances exist that will require the funding, or increase in the funding, of any benefits or resulted, or will result, in any limitation on the right of the Company or any Company Subsidiary to amend, merge,
terminate or receive a reversion of assets from any benefit plan or related trust. 

  
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 Section 3.6    Anti-Takeover Provisions and Rights Plan.
The Board of Directors has taken all necessary action to ensure that the transactions contemplated by this Agreement and the Amended Warrant and the consummation of the transactions contemplated hereby and thereby, including the exercise of the
Amended Warrant in accordance with its terms, will be exempt from any anti-takeover or similar provisions of the Company’s Charter and bylaws, and any other provisions of any applicable “moratorium”, “control share”,
“fair price”, “interested stockholder” or other anti-takeover laws and regulations of any jurisdiction. The Company has taken all actions necessary to render the Tax Benefits Preservation Plan, dated April 15, 2011, as
amended by an amendment dated April 26, 2011, between the Company and Registrar and Transfer Company as Rights Agent (the “Tax Benefits Preservation Plan”) and any other shareholders’ rights plan of the Company inapplicable to
this Agreement, the Exchange Shares and the Amended Warrant and the consummation of the transactions contemplated hereby and thereby, including the exercise of the Amended Warrant by the Investor in accordance with its terms. 

Section 3.7    No Company Material Adverse Effect. Since December 31, 2010, no fact,
circumstance, event, change, occurrence, condition or development has occurred that, individually or in the aggregate, has had or would reasonably be likely to have a Company Material Adverse Effect, except as disclosed on Schedule B.

 Section 3.8    Offering of Securities. Neither the Company nor any person acting on its
behalf has taken any action (including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of the Exchange Shares under the Securities Act and the rules and
regulations of the SEC promulgated thereunder), which might subject the offering, issuance or sale of the Exchange Shares to the Investor pursuant to this Agreement to the registration requirements of the Securities Act. 

Section 3.9    Brokers and Finders. No broker, finder or investment banker is entitled to any
financial advisory, brokerage, finder’s or other fee or commission in connection with this Agreement or the transactions contemplated hereby based upon arrangements made by or on behalf of the Company or any Company Subsidiary for which the
Investor could have any liability. 
 ARTICLE IV 
 COVENANTS 
 Section 4.1    Commercially
Reasonable Efforts. Subject to the terms and conditions of this Agreement, each of the parties will use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things
necessary, proper or desirable, or advisable under applicable laws, so as to permit consummation of the Exchange, including the consummation of the investments contemplated by the Investment Agreements and Subscription Agreements, the Merger
Agreement, the SunTrust Settlement and the DPA as promptly as practicable and otherwise to enable consummation of the transactions contemplated hereby and shall use commercially reasonable efforts to cooperate with the other party to that end.

 Section 4.2    Expenses. If requested by the Investor, the Company shall pay all
reasonable out of pocket and documented costs and expenses associated with the Exchange, including, but not limited to, the reasonable fees, disbursements and other charges of the Investor’s legal counsel and financial advisors. 

Section 4.3    Exchange Listing. If requested by the Investor, the Company shall, at the
Company’s expense, cause the Amended Warrant, to the extent the Amended Warrant complies with applicable listing requirements, to be listed on the NASDAQ or other national stock exchange, subject to official notice of issuance, and shall
maintain such listing for so long as any Common Stock is listed on such exchange. On or 

  
 8 

 
prior to the Closing, the Company shall, at its expense, cause the Exchange Shares and the Warrant Shares to be listed on the NASDAQ, subject to official notice of issuance, and shall maintain
such listing for so long as any Common Stock is listed on such exchange. 
 Section 4.4    Access,
Information and Confidentiality. 
 (a)    From the date hereof until the date when
the Investor no longer holds any debt or equity securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement or the Amended Warrant, the Company will permit the Investor and its agents, consultants, contractors and
advisors (i) acting through the Company’s Appropriate Federal Banking Agency, to examine the corporate books and make copies thereof and to discuss the affairs, finances and accounts of the Company and the subsidiaries of the Company (the
“Company Subsidiaries”) with the principal officers of the Company, all upon reasonable notice and at such reasonable times and as often as the Investor may reasonably request and (ii) to review any information material to the
Investor’s investment in the Company provided by the Company to its Appropriate Federal Banking Agency. 

(b)    From the date hereof until the date when the Investor no longer holds any debt or equity
securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement or the Amended Warrant, the Company shall permit, and shall cause each of the Company’s Subsidiaries to permit (A) the Investor and its agents,
consultants, contractors, (B) the Special Inspector General of the Troubled Asset Relief Program, and (C) the Comptroller General of the United States access to personnel and any books, papers, records or other data, in each case, to the
extent relevant to ascertaining compliance with the financing terms and conditions; provided that prior to disclosing any information pursuant to clause (B) or (C), the Special Inspector General of the Troubled Asset Relief Program and
the Comptroller General of the United States shall have agreed, with respect to documents obtained under this Agreement in furtherance of its function, to follow applicable law and regulation (and the applicable customary policies and procedures)
regarding the dissemination of confidential materials, including redacting confidential information from the public version of its reports and soliciting the input from the Company as to information that should be afforded confidentiality, as
appropriate. 
 (c)    The Investor will use reasonable best efforts to hold, and will use
reasonable best efforts to cause its agents, consultants, contractors, advisors, and United States executive branch officials and employees, to hold, in confidence all non-public records, books, contracts, instruments, computer data and other data
and information (collectively, “Information”) concerning the Company furnished or made available to it by the Company or its representatives pursuant to this Agreement (except to the extent that such information can be shown to have
been (i) previously known by such party on a non-confidential basis, (ii) in the public domain through no fault of such party or (iii) later lawfully acquired from other sources by the party to which it was furnished (and without
violation of any other confidentiality obligation)); provided that nothing herein shall prevent the Investor from disclosing any Information to the extent required by applicable laws or regulations or by any subpoena or similar legal process.
The Investor understands that the Information may contain commercially sensitive confidential information entitled to an exception from a Freedom of Information Act request. 

(d)    Nothing in this Section shall be construed to limit the authority that the Special
Inspector General of the Troubled Asset Relief Program, the Comptroller General of the United States or any other applicable regulatory authority has under law. 
 Section 4.5    Executive Compensation. 
 (a)    Benefit Plans. During the Relevant Period, the Company shall take all necessary action to ensure that the Benefit Plans of the Company and its Affiliates comply in all
respects with, and shall take all other actions necessary to comply with, Section 111 of the EESA, as implemented by the Compensation 

  
 9 

 
Regulations, and neither the Company nor any Affiliate shall adopt any new Benefit Plan (i) that does not comply therewith or (ii) that does not expressly state and require that such
Benefit Plan and any compensation thereunder shall be subject to any relevant Compensation Regulations adopted, issued or released on or after the date any such Benefit Plan is adopted. To the extent that EESA and/or the Compensation Regulations are
amended or otherwise change during the Relevant Period in a manner that requires changes to then-existing Benefit Plans, or that requires other actions, the Company and its Affiliates shall effect such changes to its or their Benefit Plans, and take
such other actions, as promptly as practicable after it has actual knowledge of such amendments or changes in order to be in compliance with this Section 4.5(a) (and shall be deemed to be in compliance for a reasonable period to effect such
changes). In addition, the Company and its Affiliates shall take all necessary action, other than to the extent prohibited by applicable law or regulation applicable outside of the United States, to ensure that the consummation of the transactions
contemplated by this Agreement will not accelerate the vesting, payment or distribution of any equity-based awards, deferred cash awards or any nonqualified deferred compensation payable by the Company or any of its Affiliates. 

(b)    Additional Waivers. After the Closing Date, in connection with the hiring or promotion
of a Section 4.5 Employee and/or the promulgation of applicable Compensation Regulations or otherwise, to the extent any Section 4.5 Employee shall not have executed a waiver with respect to the application to such Section 4.5
Employee of the Compensation Regulations, the Company shall use its best efforts to (i) obtain from such Section 4.5 Employee a waiver in substantially the form attached hereto as Annex C and (ii) deliver such waiver to
the Investor as promptly as possible, in each case, within sixty days of the Closing Date or, if later, within sixty days of such Section 4.5 Employee becoming subject to the requirements of this Section. “Section 4.5
Employee” means (A) each Senior Executive Officer and (B) any other employee of the Company or its Affiliates determined at any time to be subject to Section 111 of EESA and the Compensation Regulations. 

(c)    Clawback. In the event that any Section 4.5 Employee receives a payment in
contravention of the provisions of this Section 4.5, the Company shall promptly provide such individual with written notice that the amount of such payment must be repaid to the Company in full within fifteen business days following receipt of
such notice or such earlier time as may be required by the Compensation Regulations and shall promptly inform the Investor (i) upon discovering that a payment in contravention of this Section 4.5 has been made and (ii) following the
repayment to the Company of such amount and shall take such other actions as may be necessary to comply with the Compensation Regulations. 
 (d)    Limitation on Deductions. During the Relevant Period, the Company agrees that it shall not claim a deduction for remuneration for federal income tax purposes in excess of
$500,000 for each Senior Executive Officer that would not be deductible if Section 162(m)(5) of the Code applied to the Company. 
 (e)    Amendment to Prior Agreement. The parties agree that, effective as of the date hereof, Section 4.10 of the Securities Purchase Agreement shall be amended in its
entirety by replacing such Section 4.10 with the provisions set forth in this Section 4.5 and any terms included in this Section 4.5 that are not otherwise defined in the Securities Purchase Agreement shall have the meanings ascribed
to such terms in this Agreement. 
 Section 4.6    Certain Notifications Until Closing.

 From the date hereof until the Closing, the Company shall promptly notify the Investor of (i) any fact, event or
circumstance of which it is aware and which would reasonably be likely to cause any representation or warranty of the Company contained in this Agreement to be untrue or inaccurate in any material respect or to cause any covenant or agreement of the
Company contained in this Agreement not to be complied with or satisfied in any material respect and (ii) except as Previously Disclosed, any fact, circumstance, event, change, occurrence, condition or development of which the Company is aware
and which, individually or in the 

  
 10 

 
aggregate, has had or would reasonably be likely to have a Company Material Adverse Effect; provided, however, that delivery of any notice pursuant to this Section 4.6 shall
not limit or affect any rights of or remedies available to the Investor; provided, further, that a failure to comply with this Section 4.6 shall not constitute a breach of this Agreement or the failure of any condition set forth in
Section 1.1 to be satisfied unless the underlying Company Material Adverse Effect or material breach would independently result in the failure of a condition set forth in Section 1.1 to be satisfied. 

Section 4.7    Sufficiency of Authorized Common Stock. During the period from the Closing Date until
the date on which the Amended Warrant has been fully exercised, the Company shall at all times have reserved for issuance, free of preemptive or similar rights, a sufficient number of authorized and unissued shares of Common Stock to effectuate such
exercise. Nothing in this Section 4.7 shall preclude the Company from satisfying its obligations in respect of the exercise of the Amended Warrant by delivery of shares of Common Stock which are held in the treasury of the Company. 

Section 4.8    Monthly Lending Reports. During the Relevant Period, the Company will detail in monthly
reports submitted to the Investor the information required by the CPP Monthly Lending Reports, as published on www.financialstability.gov from time to time. 
 Section 4.9    Status Reports. The Company has informed the Investor that the Company intends to pursue certain other transactions described below (the “Other
Transactions”) each with a target date for consummation as indicated (a “Targeted Completion Date”): 
 (a)    The closings of the investments contemplated by the Investment Agreements and Subscription Agreements in the Private Placement in which Equity Investors will provide a minimum
aggregate amount of $310,000,000 in gross cash proceeds to the Company in exchange for Common Stock concurrently with the Closing; 
 (b)    The closing of the Merger immediately following the Closing; 
 (c)    The approval of the Shareholder Proposals prior to the Closing; 
 (d)    The filing of the Articles Amendment prior to the Closing; 
 (e)    The effectuation of the Reverse Stock Split on or before the three (3) month anniversary of the Closing; 

(f)    The closing of the SunTrust Settlement at or prior to the Closing; 

(g)    The effectiveness of the DPA prior to the Closing; 

(h)    The status of all approvals required to be obtained under the written agreement entered into
by the Company with the Federal Reserve Bank of Richmond prior to the Closing; 
 (i)    The
receipt of the approvals of the Federal Reserve Bank of Richmond prior to the Closing; and 

(j)    The closing of the Warrant Offering on or before the first anniversary of the Closing Date.

 The Company will use its commercially reasonable efforts to consummate each of the Other Transactions by its applicable
Targeted Completion Date. Until all of the Other Transactions have been consummated (or the Company and the Investor agree that one or more of the Other Transactions is no longer susceptible to consummation on terms and conditions that are in the
Company’s best interest), the Company shall provide the Investor with a reasonably detailed written report regarding the status of each of the Other Transactions at least 

  
 11 

 
once every two weeks and more frequently if reasonably requested by the Investor; provided, however, that if any one or more of the Other Transactions is not consummated by the time
of its Targeted Completion Date, the Company shall, with respect to any such non-consummated Other Transaction, (x) within five business days after the Targeted Completion Date for such Other Transaction provide to the Investor a reasonably
detailed written description of the status of such Other Transaction including the Company’s best estimate of the steps and timeline to complete such Other Transaction (the “Status Report”) and (y) thereafter, no less
frequently than monthly and more frequently if reasonably requested by the Investor until such Other Transactions have been consummated, provide to the Investor an updated version of the Status Report. 

Section 4.10    Amendment of Agreements relating to Other Transactions. The Company will not, without
the prior written consent of the Investor, (i) agree to any amendment, waiver or modification of the Investment Agreements, the Subscription Agreements, and any other documents governing the terms of the Other Transactions (other than
corrections of obvious errors, if any, or other ministerial amendments) or (ii) enter into any new agreements relating to the Other Transactions, in each case to the extent such amendment, waiver, modification or new agreement is adverse to the
Investor’s interests under this Agreement. 
 ARTICLE V 

ADDITIONAL AGREEMENTS 
 Section 5.1    Unregistered Exchange Shares.    The Investor acknowledges that the Exchange Shares and the Warrant Shares have not been registered
under the Securities Act or under any state securities laws. The Investor (a) is acquiring the Exchange Shares pursuant to an exemption from registration under the Securities Act solely for investment with no present intention to distribute
them to any person in violation of the Securities Act or any applicable U.S. state securities laws, (b) will not sell or otherwise dispose of any of the Exchange Shares or the Warrant Shares, except in compliance with the registration
requirements or exemption provisions of the Securities Act and any applicable U.S. state securities laws, and (c) has such knowledge and experience in financial and business matters and in investments of this type that it is capable of
evaluating the merits and risks of the Exchange and of making an informed investment decision. 
 Section
5.2    Legend. 
 (a)    The Investor agrees that all
certificates or other instruments representing the Exchange Shares, the Amended Warrant and the Warrant Shares will bear a legend substantially to the following effect: 
 “THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.” 

(b)    In the event that any Exchange Shares or Warrant Shares (i) become registered under the
Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A), the Company shall issue new certificates or other
instruments representing such Exchange Shares or Warrant Shares, which shall not contain the applicable legend in Section 5.2(a) above; provided that the Investor surrenders to the Company the previously issued certificates or other
instruments. 
 Section 5.3    Certain Transactions. 

(a)    The Company will not merge or consolidate with, or sell, transfer or lease all or
substantially all of its property or assets to, any other party unless the successor, transferee or lessee party (or its ultimate 

  
 12 

 
parent entity), as the case may be (if not the Company), expressly assumes the due and punctual performance and observance of each and every covenant, agreement and condition of this Agreement
and the Amended Warrant to be performed and observed by the Company. 
 (b)    Without the
prior written consent of the Investor, until such time as the Investor shall cease to own any securities of the Company acquired pursuant to this Agreement or the Amended Warrant (including, for the avoidance of doubt, the Exchange Shares and the
Warrant Shares), the Company shall not permit any of its “significant subsidiaries” (as such term is defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) to
(i) engage in any merger, consolidation, statutory share exchange or similar transaction following the consummation of which such significant subsidiary is not wholly-owned by the Company, (ii) dissolve or sell all or substantially all of
its assets or property other than in connection with an internal reorganization or consolidation involving wholly-owned subsidiaries of the Company or (iii) issue or sell any shares of its capital stock or any securities convertible or
exercisable for any such shares, other than issuances or sales in connection with an internal reorganization or consolidation involving wholly-owned subsidiaries of the Company. 

Section 5.4    Transfer of Exchange Shares and Warrant Shares. Subject to compliance
with applicable securities laws, the Investor shall be permitted to transfer, sell, assign or otherwise dispose of (“Transfer”) all or a portion of the Exchange Shares, Amended Warrant or Warrant Shares at any time, and the Company
shall take all steps as may be reasonably requested by the Investor to facilitate the Transfer of the Exchange Shares, the Amended Warrant and the Warrant Shares. 
 Section 5.5    Registration Rights. 
 (a)    The Exchange Shares, Amended Warrant and Warrant Shares shall be Registrable Securities under the Securities Purchase Agreement and, upon their issuance, the provisions of
Section 4.5 of the Securities Purchase Agreement shall be applicable to them, including with the benefit, to the extent available, of the tacking of any holding period from the date of issuance of the Preferred Shares and Old Warrant. The
Investor acknowledges that, on the date hereof, the Company is not eligible to file a registration statement on Form S-3 covering the Exchange Shares, the Amended Warrant and Warrant Shares, and the Company shall not be obligated to file a Shelf
Registration Statement (as defined in Section 4.5 of the Securities Purchase Agreement) unless and until requested to do so in writing by the Investor. 
 (b)    In connection with any underwritten offering of the Exchange Shares, the Amended Warrant and/or the Warrant Shares by the Investor, the Company shall cause each of its
directors, officers and all holders of its shares who beneficially own in excess of four (4) percent of the then outstanding shares of the Company, to execute and deliver customary lock up agreements, in such form and for such time period as
may be requested by the managing underwriter. 
 (c)    Notwithstanding anything to the contrary set forth
in the Securities Purchase Agreement, all Selling Expenses (as defined in Section 4.5 of the Securities Purchase Agreement) relating to any offering of the Exchange Shares, Amended Warrant and Warrant Shares shall be borne by the Company.

 (d)    Section 4.5(a)(vi) of the Securities Purchase Agreement is hereby amended and restated as
follows: 
 If either (x) the Company grants “piggyback” registration rights to one or more third parties to
include their securities in an underwritten offering under the Shelf Registration Statement pursuant to Section 4.5(a)(ii) or (y) a Piggyback Registration under Section 4.5(a)(iv) relates to an underwritten offering, and in either
case, following consultation with the Investor, the managing underwriters advise the Company and the Investor that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold
without adversely affecting the marketability of such offering (including any adverse effect on the per share offering price), the Company will include in such offering only such number of securities that in the

  
 13 

 
reasonable opinion of such managing underwriters can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which
securities will be so included in the following order of priority: (A) first, in either case, the Registrable Securities of the Investor, (B) second, in the case of a Piggyback Registration under Section 4.5(a)(iv), the securities the
Company proposes to sell, (C) third, the Registrable Securities of all other Holders who have requested inclusion of Registrable Securities pursuant to Section 4.5(a)(ii) or Section 4.5(a)(iv), as applicable, pro rata on the basis of
the aggregate number of such securities or shares owned by each such person and (D) fourth, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement. 

Section 5.6    Voting Matters. 

(a)    The Investor will vote, or cause to be voted, or exercise its right to consent (or cause its right to consent
to be exercised) with respect to, all Exchange Shares and Warrant Shares beneficially owned by it and its controlled Affiliates (and which are entitled to vote on such matter) with respect to each matter on which holders of Common Stock are entitled
to vote or consent, other than a Designated Matter, in the same proportion (for, against or abstain) as all other shares of the Company’s Common Stock (other than those shares held by holders of greater than 20% of the Company’s Common
Stock) are voted or consents are given with respect to each such matter. The Investor agrees to attend all meetings of the Company’s shareholders in person or by proxy for purposes of obtaining a quorum. In order to effectuate the foregoing
agreements, to the maximum extent permitted by applicable law, the Investor hereby grants a proxy appointing each of the Chairman of the Board and Secretary of the Company attorney-in-fact and proxy for it and its controlled Affiliates with full
power of substitution, for and in the name of it and its controlled Affiliates, to vote, express consent or dissent, or otherwise to utilize such voting power in the manner and solely on the terms provided by this Section 5.6 with respect to
the Exchange Shares and the Warrant Shares and the Investor hereby revokes any and all previous proxies granted with respect to the Exchange Shares and the Warrant Shares for purposes of the matters contemplated in this Section 5.6;
provided that such proxy may only be exercised if the Investor fails to comply with the terms of this Section 5.6. The proxy granted hereby is irrevocable prior to the termination of this Agreement, is coupled with an interest and is
granted in consideration of the Company entering into this Agreement and issuing the Exchange Shares and Amended Warrant to the Investor. 
 (b)    The Investor shall retain the right to vote in its sole discretion all Exchange Shares and Warrant Shares beneficially owned by it and its controlled Affiliates (and which are
entitled to vote on such matter) on any Designated Matter. 
 Section 5.7    Restriction on Dividends
and Repurchases. 
 (a)    Until the earlier of (i) February 13, 2012, or (ii) such
time as the Investor ceases to own any debt or equity securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement or the Amended Warrant, neither the Company nor any Company Subsidiary shall, without the consent of
the Investor: 
 (i)    declare or pay any dividend or make any distribution on the Common
Stock (other than (A) regular quarterly cash dividends of not more than the amount of the last quarterly cash dividend per share declared or, if lower, publicly announced an intention to declare, on the Common Stock prior to February 13,
2009 as adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction, (B) dividends payable solely in shares of Common Stock, (C) dividends or distributions of rights or Junior Stock in
connection with a stockholders’ rights plan (including the Tax Benefit Preservation Plan) and (D) dividends or distributions of rights in the Warrant Offering, in accordance with the terms set forth on Schedule 5.7(a)(D)); or 

(ii)    redeem, purchase or acquire any shares of Common Stock or other capital stock or other equity
securities of any kind of the Company, or any trust preferred securities issued by the Company or any Affiliate of the Company, other than (A) redemptions, purchases or other acquisitions of shares

  
 14 

 
of Common Stock or other Junior Stock, in each case in this clause (A) in connection with the administration of any employee benefit plan in the ordinary course of business (including
purchases to offset the Share Dilution Amount (as defined below) pursuant to a publicly announced repurchase plan) and consistent with past practice; provided that any purchases to offset the Share Dilution Amount shall in no event exceed the
Share Dilution Amount, (B) purchases or other acquisitions by a broker-dealer subsidiary of the Company solely for the purpose of market-making, stabilization or customer facilitation transactions in trust preferred securities of the Company or
an Affiliate of the Company, Junior Stock or Parity Stock in the ordinary course of its business, (C) purchases by a broker-dealer subsidiary of the Company of trust preferred securities or capital stock of the Company or an Affiliate of the
Company for resale pursuant to an offering by the Company of such trust preferred securities or capital stock underwritten by such broker-dealer subsidiary, (D) purchase of the preferred stock of CommunityONE held by SunTrust in order to
consummate the SunTrust Settlement, (E) any redemption or repurchase of rights pursuant to any stockholders’ rights plan (including the Tax Benefits Preservation Plan, (F) the acquisition by the Company or any of the Company
Subsidiaries of record ownership in Junior Stock, Parity Stock or trust preferred securities of the Company or an Affiliate of the Company for the beneficial ownership of any other persons (other than the Company or any other Company Subsidiary),
including as trustees or custodians, and (G) the exchange or conversion of Junior Stock for or into other Junior Stock or of Parity Stock or of trust preferred securities of the Company or an Affiliate of the Company for or into other Parity
Stock (with the same or lesser aggregate liquidation amount) or Junior Stock, in each case set forth in this clause (G), solely to the extent required pursuant to binding contractual agreements entered into prior to the date hereof or any
subsequent agreement for the accelerated exercise, settlement or exchange thereof for Common Stock. “Share Dilution Amount” means the increase in the number of diluted shares outstanding (determined in accordance with United States
generally accepted accounting principles (“GAAP”), and as measured from the date of the Company’s most recently filed consolidated financial statements prior to the Closing Date) resulting from the grant, vesting or exercise of
equity-based compensation to employees and equitably adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction. 
 (b)    The parties agree that, effective as of the date hereof, Section 4.8 of the Securities Purchase Agreement shall be amended in its entirety by replacing such
Section 4.8 with the provisions set forth in this Section 5.7 and any terms included in this Section 5.7 that are not otherwise defined in the Securities Purchase Agreement shall have the meanings ascribed to such terms in this
Agreement. 
 Section 5.8    Repurchase of Investor Securities. From and after the date of
this Agreement, the agreements set forth in Section 4.9 of the Securities Purchase Agreement shall be applicable (including to the Amended Warrant) following the Transfer by the Investor of all of the Exchange Shares held by the Investor to one
or more third parties not affiliated with the Investor. For the avoidance of doubt, the Exchange Shares may not be repurchased by the Company pursuant to this Section 5.8 or Section 4.9 of the Securities Purchase Agreement. 

Section 5.9    Bank Holding Company Status. The Company shall maintain its status as a Bank Holding
Company for as long as the Investor owns any debt or equity securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement. 
 Section 5.10    Compliance with Employ American Workers Act. Until the Company is no longer deemed a recipient of funding under Title I of EESA or Section 13 of the
Federal Reserve Act for purposes of the EAWA, as the same may be determined pursuant to any regulations or other legally binding guidance promulgated under EAWA, the Company shall comply, and the Company shall take all necessary action to ensure
that its subsidiaries comply, in all respects with the provisions of the EAWA and any regulations or other legally binding guidance promulgated under the EAWA. 

  
 15 

 Section 5.11    Observer to the Board of Directors. So
long as the Investor and its Affiliates beneficially own at least 5% of the issued and outstanding Common Stock (treating all securities beneficially owned by the Investor and its Affiliates that are convertible into or exchangeable or exercisable
for Common Stock as converted, exchanged or exercised), the Investor shall be entitled to designate one individual to serve as an observer (the “Observer”) to the Board of Directors of the Company, which designation may be changed
from time to time in the sole discretion of the Investor. The Observer shall be entitled to (i) attend all meetings of the Board of Directors of the Company and the board of directors of each subsidiary of the Company, including any committee
meetings of such boards of directors, (ii) receive notices of such meetings concurrently with the members of the Board of Directors of the Company or such boards of directors or committees thereof and (iii) receive all information provided
to members of the Board of Directors of the Company or such boards of directors or committees thereof at such meetings. 
 The
Observer shall have no voting rights and his or her presence shall not be required for determining a quorum at any meeting he or she is entitled to attend pursuant to this Section 5.11. 

ARTICLE VI 

MISCELLANEOUS 
 Section 6.1    Termination. This Agreement may be terminated at any time prior to the Closing: 

(a)    by either the Investor or the Company if the Closing shall not have occurred by
October 31, 2011; provided, however, that in the event the Closing has not occurred by such date, the parties will consult in good faith to determine whether to extend the term of this Agreement, it being understood that the
parties shall be required to consult only until the fifth day after such date and not be under any obligation to extend the term of this Agreement thereafter; provided, further, that the right to terminate this Agreement under this
Section 6.1(a) shall not be available to any party whose breach of any representation or warranty or failure to perform any obligation under this Agreement shall have caused or resulted in the failure of the Closing to occur on or prior to such
date; 
 (b)    by either the Investor or the Company in the event that any Governmental
Entity shall have issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and
nonappealable; or 
 (c)    by the mutual written consent of the Investor and the Company.

 In the event of termination of this Agreement as provided in this Section 6.1, this Agreement shall forthwith become
void and there shall be no liability on the part of either party hereto except that nothing herein shall relieve either party from liability for any breach of this Agreement. 
 Section 6.2    Survival of Representations and Warranties. The representations and warranties of the Company made herein or in any certificates delivered in connection
with the Closing shall survive the Closing without limitation. 
 Section 6.3    Amendment.
No amendment of any provision of this Agreement will be effective unless made in writing and signed by an officer or a duly authorized representative of each of the Company and the Investor; provided that the Investor may unilaterally amend
any provision of this Agreement to the extent required to comply with any changes after the date hereof in applicable federal statutes. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any rights or remedies provided by law.

  
 16 

 Section 6.4     Waiver of Conditions. The conditions to
each party’s obligation to consummate the Exchange are for the sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable law. No waiver will be effective unless it is in a writing
signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver. 
 Section 6.5    Governing Law; Submission to Jurisdiction, etc. This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the
relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be enforced, governed, and construed in all respects (whether in contract or in tort) in accordance with the federal law of the
United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the parties hereto agrees
(a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating
to this Agreement or the Amended Warrant or the Exchange contemplated hereby and (b) that notice may be served upon (i) the Company at the address and in the manner set forth for notices to the Company in Section 6.6 and (ii) the
Investor at the address and in the manner set forth for notices to the Company in Section 6.6, but otherwise in accordance with federal law. To the extent permitted by applicable law, each of the parties hereto hereby unconditionally waives
trial by jury in any civil legal action or proceeding relating to this Agreement or the Amended Warrant or the Exchange contemplated hereby. 
 Section 6.6    Notices. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have
been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second business day following the date of dispatch if delivered by a recognized next day courier service. All
notices hereunder shall be delivered as set forth below or pursuant to such other instructions as may be designated in writing by the party to receive such notice. 
 If to the Company: 
 FNB United Corp. 

150 South Fayetteville Street 
 Asheboro, North Carolina 27203 
 Chief Financial Officer 

Fax: (336) 328-1633 
 with a copy (which copy alone shall not constitute notice) to each of: 

Arnold & Porter LLP 
 555 Twelfth Street NW 
 Washington, DC 20004 

Attn: Brian McCormally 
 Beth DeSimone 
 Fax: (202) 942-5999 

and 
 Schell
Bray Aycock Abel & Livingston PLLC 
 230 North Elm Street, Suite 1500 

Greensboro, NC 27401 
 Attn: Melanie Samson Tuttle 
 Fax: (336) 370-8830 

  
 17 

 If to the Investor: 

United States Department of the Treasury 
 1500 Pennsylvania Avenue, NW 
 Washington, DC 20220 

Attention: Chief Counsel Office of Financial Stability 
 Facsimile: (202) 927-9225 
 Email: OFSChiefCounselNotices@do.treas.gov

 With a copy to: 
 Paul, Weiss, Rifkind, Wharton & Garrison LLP 
 1285 Avenue of the Americas

 New York, New York 10019 
 Attention: T. Robert Zochowski, Jr., Esq. 
 Telephone: (212) 373-3000

 Facsimile: (212) 757-3990 
 Section 6.7     Definitions. 

(a)      When a reference is made in this Agreement to a subsidiary of a person, the term
“subsidiary” means any corporation, partnership, joint venture, limited liability company or other entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which a majority of the
voting securities or other voting interests, or a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the board of directors or persons performing similar functions with respect
to such entity, is directly or indirectly owned by such person and/or one or more subsidiaries thereof. 
 (b)
     The term “Affiliate” means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person. For purposes of this definition,
“control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any person, means the possession, directly or indirectly, of the power to cause the
direction of management and/or policies of such person, whether through the ownership of voting securities by contract or otherwise. 
 (c)      The term “Business Combination” means a merger, consolidation, statutory share exchange or similar transaction that requires the approval of the
Company’s stockholders. 
 (d)      The term “Company Material Adverse
Effect” means a material adverse effect on the business, results of operation or financial condition of the Company and its consolidated subsidiaries taken as a whole; provided, however, that Company Material Adverse
Effect shall not be deemed to include: (i) the effects of (A) changes after the date hereof in general business, economic or market conditions (including changes generally in prevailing interest rates, credit availability and liquidity,
currency exchange rates and price levels or trading volumes in the United States or foreign securities or credit markets), or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally
affecting the industries or geographic areas in which the Company and its subsidiaries operate, (B) changes or proposed changes after the date hereof in GAAP or regulatory accounting requirements, or authoritative interpretations thereof,
(C) changes or proposed changes after the date hereof in securities, banking and other laws of general applicability or related policies or interpretations of Governmental Entities (in the case of each of these clauses (A), (B) and
(C), other than changes or occurrences to the extent that such changes or occurrences have or would reasonably be expected to have a materially disproportionate adverse effect on the Company and its consolidated subsidiaries taken as a whole
relative to comparable U.S. banking or 

  
 18 

 
financial services organizations), (D) changes in the market price or trading volume of the Common Stock or any other equity, equity-related or debt securities of the Company or its
consolidated subsidiaries (it being understood and agreed that the exception set forth in this clause (D) does not apply to the underlying reason giving rise to or contributing to any such change); (E) actions or omissions of the Company
or any Company Subsidiary expressly required by the terms of the Exchange; or (ii) the ability of the Company to consummate the Exchange and the other transactions contemplated by this Agreement and perform its obligations hereunder on a timely
basis. 
 (e)      “Designated Matters” means (i) the election and
removal of directors, (ii) the approval of any Business Combination, (iii) the approval of a sale of all or substantially all of the assets or property of the Company, (iv) the approval of a dissolution of the Company, (v) the
approval of any issuance of any securities of the Company on which holders of Common Stock are entitled to vote, (vi) the approval of any amendment to the Charter or bylaws of the Company on which holders of Common Stock are entitled to vote
and (vii) the approval of any other matters reasonably incidental to the foregoing subclauses (i) through (vi) as determined by the Investor. 
 (f)      The term “EAWA” means the Employ American Workers Act (Section 1611 of Division A, Title XVI of the American Recovery and Reinvestment Act of 2009),
Public Law No. 111-5, effective as of February 17, 2009, as may be amended and in effect from time to time. 
 (g)      The term “Junior Stock” means the Common Stock and any other class or series of stock of the Company the terms of which expressly provide that it ranks junior
to the Exchange Shares as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company. 
 (h)      The term “Parity Stock” means any class or series of stock of the Company the terms of which do not expressly provide that such class or series will rank
senior or junior to the Exchange Shares as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company (in each case without regard to whether dividends accrue cumulatively or non-cumulatively). 

(i)      The term “Preferred Stock” means any and all series of preferred stock of
the Company. 
 (j)      The term “Previously Disclosed” means information
set forth or incorporated in the Company’s Annual Report on Form 10-K for the most recently completed fiscal year of the Company filed with the SEC prior to the date hereof or in its other reports and forms filed with or furnished to the SEC
under Section 13(a), 14(a) or 15(d) of the Exchange Act on or after the last day of the most recently completed fiscal year of the Company and prior to the date hereof. 

(k)      To the extent any securities issued pursuant to this Agreement or the transactions
contemplated hereby are registered in the name of a designee of the Investor pursuant to Section 1.1 or 6.8 or transferred to an Affiliate of the Investor, all references herein to the Investor holding or owning any debt or equity securities of
the Company, Exchange Shares or Registrable Securities (and any like variations thereof) shall be deemed to refer to the Investor, together with such designees and/or Affiliates, holding or owning any debt or equity securities, Exchange Shares or
Registrable Securities (and any like variations thereof), as applicable. 
 Section
6.8    Assignment. Neither this Agreement nor any right, remedy, obligation nor liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of each other
party, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be void, except (a) an assignment, in the case of a Business Combination where such party is not the surviving entity, or a sale of
substantially all of its assets, to the entity which is the survivor of such Business Combination or the purchaser in such sale, (b) as provided in Sections 5.4 and 5.5 and (c) an assignment by the Investor of this Agreement to an
Affiliate of the Investor; provided that if the Investor assigns this Agreement to 

  
 19 

 
an Affiliate, the Investor shall be relieved of its obligations under this Agreement but (i) all rights, remedies and obligations of the Investor hereunder shall continue and be enforceable
and exercisable by such Affiliate, and (ii) the Company’s obligations and liabilities hereunder shall continue to be outstanding. 
 Section 6.9    Severability. If any provision of this Agreement, or the application thereof to any person or circumstance, is determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force
and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination,
the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties. 
 Section 6.10    No Third-Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person or entity other than the
Company and the Investor any benefit, right or remedies, except that (i) the provisions of Section 4.4 shall inure to the benefit of the persons referred to in that Section and (ii) the provisions of Section 5.5 shall inure
to the benefit of the persons holding Exchange Shares and the Warrant Shares during any tacked holding period, as contemplated by that Section. 
 Section 6.11    Entire Agreement, etc. This Agreement (including the Annexes and Schedules hereto) constitutes the entire agreement, and supersedes all other prior
agreements, understandings, representations and warranties, both written and oral, between the parties, with respect to the subject matter hereof. For the avoidance of doubt, the Securities Purchase Agreement shall remain in full force and effect,
but shall be deemed amended hereby, and any provisions in this Agreement that supplement, duplicate or contradict any provision of the Securities Purchase Agreement shall be deemed to supersede the corresponding provision of the Securities Purchase
Agreement from and after the effective date hereof. 
 Section 6.12    Counterparts and
Facsimile. For the convenience of the parties hereto, this Agreement may be executed in any number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute
the same agreement. Executed signature pages to this Agreement may be delivered by facsimile and such facsimiles will be deemed as sufficient as if actual signature pages had been delivered. 

Section 6.13    Specific Performance. The parties agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled (without the necessity of posting a bond) to specific performance of the terms
hereof, this being in addition to any other remedies to which they are entitled at law or equity. 
 [Remainder of
Page Intentionally Left Blank] 

  
 20 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

					
		 	FNB UNITED CORP.
			
		 	By:	  	 /s/ R. Larry Campbell

		 		  	Name: R. Larry Campbell
		 		  	Title:   Interim President and CEO
		
		 	UNITED STATES DEPARTMENT OF THE TREASURY
			
		 	By:	  	 /s/ Mathew Pendo

		 		  	Name: Mathew Pendo
		 		  	Title:   Chief Investment Officer

  
  
  

 
  

[Signature Page to Exchange Agreement] 

  
 21

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