Document:

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 Exhibit 10(m) 
  
 SOUTHERN NATIONAL 
  
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) 
  
 Effective January 1, 1989 
  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	PAGE

			
	 ARTICLE I
	  	STATEMENT OF PURPOSE	  	1
			
	 ARTICLE II
	  	DEFINITIONS	  	2
			
	 ARTICLE III
	  	ELIGIBILITY AND PARTICIPATION	  	14
			
	 ARTICLE IV
	  	RETIREMENT BENEFITS	  	15
			
	 ARTICLE V
	  	PRE-RETIREMENT SURVIVOR BENEFITS	  	17
			
	 ARTICLE VI
	  	DISABILITY BENEFITS	  	18
			
	 ARTICLE VII
	  	SEVERANCE BENEFITS	  	20
			
	 ARTICLE VIII
	  	NONCOMPETITION	  	21
			
	 ARTICLE IX
	  	COMMITTEE	  	24
			
	 ARTICLE X
	  	AMENDMENT AND TERMINATION	  	26
			
	 ARTICLE XI
	  	MISCELLANEOUS	  	27
			
	 ARTICLE XII
	  	CONSTRUCTION	  	31

  

 i 

  
 ARTICLE I

  
 STATEMENT OF PURPOSE 
  
 This Plan is designed to enhance the earnings and growth of Southern National
Corporation and its Participating Subsidiaries. The Plan provides benefits to or on behalf of selected key management employees which supplement retirement and survivor benefits payable from the Southern National Retirement Plan, a qualified defined
benefit pension plan. Such supplemental benefits are intended to enable Southern National to attract and retain superior key management employees and to give such employees additional incentive to make Southern National more profitable. 

 

  
 ARTICLE II

  
 DEFINITIONS 
  
 When used herein and capitalized, the following terms shall have the meanings
denoted, unless the context clearly requires otherwise. 
  
 2.01
Actuarial Equivalent and Actuarially Equivalent. A form of benefit differing in time, period or manner of payment from a specified benefit provided by this Plan or provided by the Pension Plan, but having the same value when computed using
the same assumptions used for computing actuarial equivalence under the Pension Plan. 
  
 2.02 Change in Control. A Change in Control shall be deemed to have occurred upon the happening of any of the following: 
  

(a) the adoption of a plan of merger or consolidation of Southern National Corporation with any other corporation or association as a result of which
the holders of the voting capital stock of Southern National Corporation would receive less than 50% of the voting capital stock of the surviving or resulting corporation; 
  
 (b) the occurrence of any event (including, without limitation, any merger or consolidation) as a result of which Southern
National Corporation is not the owner beneficially and of record of 50% or more of the voting power of the capital stock of Southern National Bank of North Carolina, N.A. (the “Bank”); 
  

 2 

 (c) the sale, lease, exchange or other transfer (in one transaction or a series of transactions
contemplated or arranged by any party as a single plan) of all or substantially all of the assets of Southern National Corporation or the Bank (other than as security for the obligations of Southern National Corporation or the Bank); 
  
 (d) the approval by the shareholders of Southern National Corporation or the
Bank of any plan or proposal for the liquidation or dissolution of Southern National Corporation or the Bank; 
  
 (e) the acquisition by any person (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, (the
“Exchange Act”)), other than any Trustee under any employee benefit plan of Southern National Corporation or the Bank, and persons (as such term is so used) who are then affiliates and associates (as defined on January 1, 1989 in Rule
12b-2 under the Exchange Act) of such person, or any one of them, after the date this Plan is executed, directly or indirectly, of beneficial ownership (as defined on January 1, 1989 in Rules 13d-3 and 13d-5 under the Exchange Act) of securities of
Southern National Corporation representing in the aggregate 20% or more of the voting power of all then outstanding securities of Southern National Corporation having the right under ordinary circumstances to vote in an election of the Board of
Directors of Southern National Corporation (without limitation, any securities having such voting power that any such 

  

 3 

 
person has the right to acquire pursuant to any agreement, or upon exercise of conversion of rights, warrants or options, or otherwise, shall be deemed
beneficially owned by such person); or 
  
 (f) the failure, for
any reason, during any period of two consecutive years, of the individuals who at the beginning of such period constitute the entire Board of Directors of Southern National Corporation (the “Board”) and any new directors whose election by
the Board, or whose nomination for election by the shareholders, shall have been approved by a vote of at least two-thirds (2/3) of the directors of the Board then still in office who either were directors at the beginning of the period or whose
election or nomination for election shall previously have been so approved, to constitute a majority of the members of the Board. 
  
 2.03 Code. The Internal Revenue Code of 1986, as amended, and as it may be amended from time to time. 
  
 2.04 Committee. The committee which administers the Plan and which is
more particularly described in Article VIII below. The Committee shall be made up of the individuals who hold the following offices of Southern National Bank of North Carolina, N.A.: Chairman of the Board of Directors, President, Director of Human
Resources, and Chief Financial Officer. 
  
 2.05 Company.
Southern National Corporation, Participating Subsidiaries, and any successor by merger, acquisition or otherwise. All references to “Company” shall be 

  

 4 

 
applied to each such Company as if the Plan were solely the Plan of such Company. 
  
 2.06 Credited Service. This term shall have the meaning the Pension Plan ascribes to such term, except that for
purposes of this Plan a Participant shall be credited with Credited Service for any period he is under a Total Disability. 
  
 2.07 Designated Beneficiary. One or more beneficiaries, as designated by a Participant in writing delivered to the Committee, to whom certain SERP
Pre-Retirement Death Benefits shall be paid pursuant to the provisions of Article V below. In the event no such written designation is made by the Participant or such beneficiary shall not be living or in existence at the time payments are to
commence, the Participant shall be deemed to have designated his estate as such beneficiary. 
  
 2.08 Early Payment Reduction Percentage. The sum of (A) and (B) where (A) is the product of one thousand six hundred and sixty-seven ten thousandths percent ( .1667%) multiplied by the number of such whole
calendar months by which the date of the first monthly payment of a Participant’s SERP Retirement Benefit precedes the month of his sixty-fifth (65th) birthday, and where (B) is the product of one-half of one percent (.50%) multiplied by the
number of whole calendar months, in excess of sixty (60), by which the date of the first monthly payment of the Participant’s SERP Retirement Benefit precedes the month of his sixty-fifth (65th) birthday. 
  

 5 

 2.09 Early Retirement Date. The date on which a Participant under this Plan who has attained at
least age fifty-five (55) and has at least fifteen (15) years of Credited Service terminates employment with the Company prior to attaining age sixty-five (65). 
  

2.10 Eligible Spouse. The person, if any, who is legally married to the Participant on the Participant’s date of death; provided however
that such term shall not include a spouse who on the date of death is legally separated from the Participant pursuant to a court order or written agreement between the Participant and spouse. 
  
 2.11 ERISA. The Employee Retirement Income Security Act of 1974, as
amended, and as it may be amended from time to time. 
  
 2.12
ERISA Excess Benefit. 
  
 (a) If the
Participant is married, the difference between (i) the monthly amount he would receive as the primary annuitant of a joint and seventy-five percent (75%) survivor annuity which is Actuarially Equivalent to his Unlimited Pension Plan Benefit and
which commences when his SERP Retirement Benefit commences, and (ii) his Pension Plan Benefit. 
  
 (b) If the Participant is not married, the difference between (i) the monthly amount he would receive as the annuitant of a level life and
ten-year certain annuity which is Actuarially Equivalent to his Unlimited Pension Plan Benefit and 

  

 6 

 
which commences when his SERP Retirement Benefit commences, and (ii) his Pension Plan Benefit. 
  
 For purposes of this Section and Section 2.19, (A) a “joint and seventy-five percent (75%) survivor annuity” means
an annuity providing a monthly benefit for the life of the Participant with a monthly benefit payable to his surviving spouse, if any, for the remainder of her life in an amount equal to seventy-five percent (75%) of the monthly benefit payable to
him during his lifetime; and (B) a “level life and ten-year certain annuity” means an annuity providing a monthly benefit payable for a minimum of one hundred and twenty (120) months and, if longer, for the life of the Participant.

  
 2.13 Final Average Earnings. A Participant’s
average Monthly Earnings (as defined in Section 2.14) for the sixty (60) calendar months during which his Monthly Earnings were the highest (which sixty months may or may not be consecutive) within the one hundred and twenty (120) calendar months
(or if less the total number of calendar months during which he was employed with the Company) immediately preceding the earliest to occur of his Severance Date, date of death, or date his employment with the Company terminates by reason of Total
Disability. In the event the Participant does not have at least sixty (60) months of employment with the Company, Final Average Earnings shall mean the average Monthly Earnings for his total period of employment. 
  

 7 

 2.14 Monthly Earnings. Monthly Earnings, for any calendar month, shall mean the quotient obtained
by dividing by twelve (12) the total earnings paid to a Participant by the Company during the calendar year in which the calendar month falls. For purposes of the preceding sentence, “total earnings paid to a Participant by the Company during
the calendar year” shall mean the total earnings paid by the Company to the Participant reported or reportable for that calendar year on U.S. Treasury Department Wage and Tax Statement Form W-2 or similar form required for such purpose,
increased by (i) any deferrals under the Southern National Employee Stock Ownership Plan as amended from time to time, and (ii) any reductions in compensation resulting from participation in any deferred compensation plan or cafeteria plan to the
extent that such deferrals and reductions are excluded from reporting on Form W-2 or other similar form required for such purpose. For purposes of the preceding sentence, noncash items, including company car income and income from stock options, and
benefits paid under this Plan or any other employee benefit plan of the Company shall be excluded from “total earnings paid to a Participant by the Company during the calendar year.” 
  
 2.15 Normal Retirement Date. The first day of the month next following
the month of the Participant’s sixty-fifth (65th) birthday. 
  
 2.16 Participant. An employee selected by the Committee pursuant to the provisions of Article III to 

  

 8 

 
participate in this Plan. The Committee may designate new Participants as it, in its sole discretion, deems proper. 
  
 2.17 Participating Subsidiary. Each subsidiary of Southern National
Corporation who, pursuant to action duly adopted by its board of directors, has adopted this Trust Agreement. “Subsidiary” means a corporation over 50% of the voting stock of which is owned by Southern National Corporation, by another
subsidiary or other subsidiaries of Southern National Corporation. The foregoing notwithstanding, the Board of Directors of Southern National Corporation may designate any company affiliated with Southern National Corporation as a
“subsidiary” for purposes of this Plan. 
  
 2.18
Pension Plan. The Southern National Retirement Plan as it may be amended from time to time. 
  
 2.19 Pension Plan Benefit. One-twelfth (l/l2th) of the annual amount of the benefit which would be payable to a Participant under the Pension Plan
if the Participant’s vested accrued benefit in the Pension Plan were paid as follows: 
  
 (A) In the case of a married Participant, in the form of a joint and seventy-five percent (75%) survivor annuity which is Actuarially Equivalent to his vested accrued benefit in the Pension Plan and which commences
when his SERP Retirement Benefit commences; 
  
 (B) In the case
of an unmarried Participant, in the form of a level life and ten-year 

  

 9 

 
certain annuity which is Actuarially Equivalent to his vested accrued benefit in the Pension Plan and which commences when his SERP Retirement Benefit
commences. 
  
 The foregoing assumptions are made solely for
purposes of this Plan, and such assumptions shall apply without regard for the form in which or the time at which a Participant’s vested accrued benefit under the Pension Plan is actually paid or authorized to be paid. 
  
 2.20 Plan. This Southern National Supplemental Executive Retirement
Plan (SERP) as contained herein and as it may be amended from time to time. 
  
 2.21 Postponed Retirement Date. The first day of the month next following the month of the Participant’s Severance Date if such Severance Date is later than his Normal Retirement Date. 
  
 2.22 SERP Retirement Benefit. Subject to Section 4.03 below, an amount
equal to the greater of (A) or (B) below: 
  

	 	(A)	The product of (1) the Participant’s Target Retirement Benefit reduced by the sum of (i) his Pension Plan Benefit and (ii) fifty percent (50%) of his Social Security Benefit,
multiplied by (2) the difference between one hundred percent (100%) and the Early Payment Reduction Percentage. 

  

	 	(B)	The Participant’s ERISA Excess Benefit. 

  

 10 

 2.23 Severance Date. The date on which a Participant terminates his employment with the Company
other than by reason of death; provided, however, that if his employment with the Company terminates prior to Early or Normal Retirement by reason of the onset of Total Disability, then his Severance Date shall be the earlier of (a) the date such
Total Disability ceases and he does not return to the employ of the Company or (b) the date he first becomes eligible to retire on his Early Retirement Date or Normal Retirement Date. 
  
 2.24 Social Security Benefit. An amount equal to the annual Primary Old Age Insurance benefit to which the
Participant would be entitled to receive commencing on his Normal Retirement Date (assuming that he will have no earnings after such date that would cause a reduction in such benefit) under the Federal Social Security Act, as such Act is in effect
on the Participant’s Severance Date, divided by twelve (12). The Social Security Benefit shall be calculated on the basis of the Participant’s estimated earnings history, constructed as follows: 
  

	 	(a)	If the Participant has not reached age sixty-five (65) on his Severance Date, it shall be assumed that he will receive no additional compensation during the period between his
Severance Date and his attainment of age sixty-five (65); 

  

	 	(b)	 The Participant’s Monthly Earnings shall be used for the one hundred and twenty (120) calendar month period 

  

 11 

	 	 
(or for the Participant’s total months of employment if shorter) that is considered in the determination of Final Average Earnings; and

  

	 	(c)	For years beginning the later of 1951, or the calendar year in which the Participant attained age twenty-two (22), and ending with the year immediately preceding the period
described in (b) above, the Participant’s wages for purposes of the Federal Social Security Act shall be calculated by projecting backwards, using a salary scale of six percent (6%) per annum, his Monthly Earnings for the earliest calendar year
in the period described in (b) above. 

  
 Notwithstanding the foregoing, a Participant shall have the right to have his Social Security Benefit recomputed on the basis of his actual Social Security earnings history by providing appropriate documentation to the Committee. For a
Participant whose Social Security full-benefit retirement age is later than age sixty-five (65), the Social Security Benefit shall be determined at age sixty-five (65) subject to applicable Social Security reduction for months before his
full-benefit retirement age. 
  
 2.25 Target Retirement
Benefit. An amount equal to fifty-five percent (55%) of the Participant’s Final Average Earnings. 
  
 2.26 Total Disability. Total disability shall have the same meaning as is ascribed to such term by the long-term 

  

 12 

 
disability benefits plan sponsored by the Company and in which the Participant participates. If the Participant does not participate in such plan or if the
Company does not sponsor such a plan, then the Participant shall be under a Total Disability if by reason of sickness or injury he cannot perform each of the material duties of his regular occupation; provided, however, that after the first
twenty-four (24) months he shall be under a Total Disability if he cannot perform each of the material duties of any gainful occupation for which he is reasonably fitted by training, education or experience. 
  
 2.27 Unlimited Pension Plan Benefit. The vested accrued benefit to
which the Participant would have been entitled under the Pension Plan if such benefit were computed without giving effect to the compensation and annual benefit limitations as set forth in Sections 401(a)(17) and 415 of the Code and corresponding
provisions of the Pension Plan. 
  

 13 

  
 ARTICLE III

  
 ELIGIBILITY AND PARTICIPATION 

 
 3.01 Eligibility. The Committee shall have the sole discretion to
determine the employees of the Company who are eligible to become Participants; provided, however, that no employee who is not a member of the “select group of management or highly compensated employees,” as defined in Sections 201(2),
301(a)(3) and 401(a) of ERISA shall be eligible to become a Participant in the Plan. 
  
 3.02 Participation. The Committee shall cause those employees selected by it to become Participants to be notified of their participation and of the benefits available to them under the Plan. Once selected to
participate in the Plan, a Participant shall remain a Participant as long as he is employed by the Company. 
  

 14 

  
 ARTICLE IV

  
 RETIREMENT BENEFITS 
  
 4.01 Retirement. 
  
 (a) Benefit Payable to Participant. Upon a
Participant’s retirement on his Early Retirement Date, Normal Retirement Date or Postponed Retirement Date, the Company shall make monthly payments to the Participant of his SERP Retirement Benefit commencing with the month immediately
following the month of the Participant’s Severance Date and continuing for each month thereafter until and including the month of his death. 
  
 (b) Spousal Survivor Benefit. Upon the death of a retired Participant who is either receiving or entitled to receive a SERP
Retirement Benefit, the Company shall make monthly payments to the Participant’s Eligible Spouse, if any, commencing with the month next following the month of the retired Participant’s death and continuing for each month thereafter until
and including the month of the Eligible Spouse’s death. Each monthly payment shall equal seventy-five percent (75%) of the monthly amount of the deceased Participant’s SERP Retirement Benefit. 
  
 4.02 Reemployment of Retired Participant. A retired Participant
receiving or eligible to receive supplemental retirement benefits under this Plan and who is reemployed by the Company shall not be entitled to any increased benefits under 

  

 15 

 
this Plan by reason of accumulating additional years of Credited Service or Monthly Earnings after his reemployment. 
  
 4.03 Actuarial Reduction. Notwithstanding the foregoing provisions of
Sections 2.22 and 4.01, in the event the Eligible Spouse is more than ten (10) years younger than the Participant, the monthly amount of the Participant’s SERP Retirement Benefit (as otherwise calculated under Sections 2.22 and 4.01(a) above)
and, consequently, the derivative spousal survivor benefit under Section 4.01(b), shall be reduced in order that the Participant’s SERP Retirement Benefit and the spousal survivor benefit, when considered together, is the Actuarial Equivalent
of the benefits that would be payable to the Participant and his Eligible Spouse if the Eligible Spouse were ten (10) years younger than the Participant. 
  

 16 

  
 ARTICLE V

  
 PRE-RETIREMENT SURVIVOR BENEFITS

  
 5.01 Death Benefit. 
  
 (a) If a Participant who has not attained age sixty-five
(65) dies prior to his Severance Date, the Company shall pay to the Participant’s Eligible Spouse or, if none, his Designated Beneficiary a monthly benefit for one hundred and eighty (180) consecutive months. The amount of the monthly benefit
shall equal twenty percent (20%) of the Participant’s Final Average Earnings. The benefits shall commence in the first month following the month of the Participant’s death. 
  
 (b) If a Participant who has attained age sixty-five (65) dies prior to his Severance Date, he shall be
considered to have retired on the day before his death and, accordingly, the Company shall pay to his Eligible Spouse, if any, the spousal survivor benefit set forth in Section 4.01(b). 
  
 (c) Except as set forth in this Article V, no survivor benefit is payable under this Plan if a Participant
dies prior to his Severance Date. 
  

 17 

  
 ARTICLE VI

  
 DISABILITY BENEFITS 
  
 6.01 Disability Prior to Retirement Date. 
  
 (a) Except as provided in Article IV in the case of
retirement by Participants, this Plan provides no disability benefits. 
  
 (b) If the Participant’s employment with the Company terminates by reason of the onset of Total Disability, and the termination of employment occurs prior to the Participant’s Early Retirement Date and
Normal Retirement Date, then for purposes of qualifying for the Early Retirement Date the Participant will receive credit for Credited Service during his period of Total Disability. If the Participant’s Total Disability continues until a
Severance Date which qualifies him for a benefit under Article IV, his Final Average Earnings is calculated based on his Monthly Earnings during the one hundred and twenty (120) calendar month period immediately preceding the date on which his Total
Disability commenced. 
  
 (c) If the
Participant’s Total Disability ceases, and he does not return to regular active employment with the Company, then for the purpose of determining his years of Credited Service his employment shall be deemed terminated on the date that the Total
Disability ceased. 
  
 (d) The Committee may from
time to time request that a Participant who is under a Total Disability submit to a 

  

 18 

 
medical examination or related series of examinations by a physician or physicians acceptable to the Committee to determine whether the Total Disability
continues. A Participant’s refusal to submit to such an examination or related series of examinations shall be deemed an admission by him that he is no longer under a Total Disability. All examinations requested by the Committee pursuant to
this provision shall be at the expense of the Company. 
  

 19 

  
 ARTICLE VII

  
 SEVERANCE BENEFITS 
  
 7.01 No Severance Benefits. Except as provided in Article IV in the
case of retirement by Participants, this Plan provides no severance benefits. 
  

 20 

  
 ARTICLE VIII

  
 NONCOMPETITION 
  
 Notwithstanding any provision of this Plan to the contrary but subject to the
proviso below, if any Participant terminates employment with the Company for any reason and accepts employment with, or assumes any other position with, any national bank, state bank, savings and loan association, or any other similar financial
institution with one or more offices in a state in which a subsidiary of Southern National Corporation has a banking office, the Participant shall forfeit all rights to all retirement and survivor benefits to which he, his Eligible Spouse, or his
Designated Beneficiary is or may become entitled to under this Plan; provided, however, that no such forfeiture shall occur if, within two (2) years following a Change in Control, either the Company terminates the Participant’s employment other
than for cause or the Participant quits or resigns for good reason. Termination by the Company of the Participant’s employment for “cause” shall mean termination due to (i) an act or acts of dishonesty by the Participant constituting
a felony and resulting or intended to result in substantial gain or personal enrichment for the Participant at the expense of the Company or (ii) willful and continued failure by the Participant to substantially perform his duties with the Company,
other than for incapacity due to mental or physical illness, after a written demand for substantial performance is 

  

 21 

 
delivered to the Participant by the Chairman of the Board of Directors of the Company which specifies how the Participant has failed to substantially perform
his duties; provided, however, in no event shall the Participant’s termination by the Company be considered to have been for cause if such termination shall have been the result of (i) the Participant’s bad judgment or negligence, (ii) any
act or omission without intent of gaining a profit to which the Participant was not legally entitled, or (iii) any act or omission believed by the Participant in good faith to have been in, or not opposed to, the interests of the Company. “Good
reason” shall mean: (i) the assignment to the Participant of any duties inconsistent with his duties immediately prior to the Change in Control or any removal of the Participant from or any failure to reelect or reappoint the Participant to his
positions, except in connection with promotions to higher office; (ii) a reduction by the Company in the Participant’s base salary as in effect immediately prior to the Change in Control; (iii) the failure by the Company to maintain, and to
continue the Participant’s participation in, the Company’s benefit or compensation plans as in effect immediately prior to the Change in Control (including but not limited to bonus and incentive compensation plans, stock option, bonus,
award and purchase plans, life insurance, medical, health and accident insurance, disability plans and deferred compensation plans); or the taking of any action by the Company which would adversely affect the Participant’s participation in or
reduce the 

  

 22 

 
Participant’s benefits under any of such plans or deprive the Participant of any fringe benefit he enjoyed immediately prior to the Change in Control;
or the failure to provide the Participant with the number of paid vacation days to which he was entitled under the Company’s normal vacation policy in effect immediately prior to the Change in Control; (iv) the relocation of the
Participant’s office to anywhere other than a location within 25 miles of the Participant’s office immediately prior to the Change in Control or the Company’s requiring the Participant to be based anywhere other than within 25 miles
of the Participant’s office immediately prior to the Change in Control, except for required travel on the Company’s business to an extent consistent with the Participant’s business travel obligations immediately prior to the Change in
Control; or (v) Total Disability. 
  

 23 

  
 ARTICLE IX

  
 COMMITTEE 
  
 9.01 Authority. The Committee shall be responsible for the
administration and interpretation of the Plan, and shall have all powers necessary to enable it to carry out its duties in the administration and interpretation of the Plan, and shall have the duty and power to determine all questions that may arise
hereunder as to the status and rights of Participants in the Plan. 
  
 9.02 Voting. The Committee shall act by a majority of the number then constituting the Committee, and such action may be taken either by vote at a meeting or in writing without a meeting. 
  
 9.03 Records. The Committee shall keep a complete record of all its
proceedings and all data relating to the administration of the Plan. The Committee shall make such rules and regulations for the conduct of its business as it shall deem advisable. 
  
 9.04 Liability. No member of the Committee shall be personally liable for any actions taken or omitted by the
Committee unless the member’s action or inaction involves willful misconduct. To the extent permitted by applicable law, the Company shall indemnify and hold harmless each member of the Committee and each employee of the Company acting pursuant
to the direction of the Committee from and against any and all 

  

 24 

 
liability, claims, demands, costs and expenses (including reasonable attorneys’ fees) arising out of or incident to any act or failure to act in
connection with the administration of the Plan, except for any such act or failure to act that involves willful misconduct. 
  

 25 

  
 ARTICLE X

  
 AMENDMENT AND TERMINATION 
  
 Southern National Corporation reserves the right, at any time and from time
to time, by action of its Board of Directors, to amend or terminate the Plan, and each Participating Subsidiary reserves the right by action of its Board of Directors to terminate the Plan with respect to it and the Participants employed by it;
provided, however, no such amendment or termination shall reduce or eliminate the benefits (including survivor benefits) of a Participant (or Eligible Spouse or Designated Beneficiary) to whom payments under this Plan have commenced or who is then
eligible under Article IV to retire and begin receiving benefits under this Plan. In addition, each other Participant in the Plan on the date of such amendment or termination shall be entitled to benefits (including survivor benefits) under this
Plan, at such times as such benefits would have been paid absent such amendment or termination, in an amount not less than the amount that would have been paid absent such amendment or termination multiplied by an “accrual fraction” (which
may not exceed 1.0) the numerator of which is equal to the number of his years of Credited Service at the time of such amendment or termination and the denominator of which is equal to the lesser of fifteen (15) or the number of years of Credited
Service he would have had if the Plan had not been amended or terminated and if he had continued in the employ of the Company until the date he attained age sixty (60); provided, however, that upon and after a Change in Control, each
Participant’s accrual fraction shall be 1.0. 
  

 26 

  
 ARTICLE XI

  
 MISCELLANEOUS 
  
 11.01 Nonalienation of Benefits. No right or benefit under the Plan
shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge any right or benefit under the Plan shall be void. No right or benefit
hereunder shall in any manner be liable for or subject to the debts, contracts, liabilities or torts of the person entitled to such benefits. If a Participant or Eligible Spouse hereunder shall become bankrupt, or attempt to anticipate, alienate,
sell, assign, pledge, encumber, or charge any right hereunder, then such right or benefit shall, in the discretion of the Committee, cease and terminate, and in such event, the Committee may hold or apply the same, or any part thereof, for the
benefit of the Participant or Eligible Spouse in such manner and in such amounts and proportions as the Committee may deem proper. 
  
 11.02 No Trust Created. The obligations of the Company to make payments hereunder shall constitute a liability of the Company to the Participants.
Such payments shall be made from the general funds of the Company and the Company shall not be required to establish or maintain any special or separate fund, or to purchase or acquire life insurance on a Participant’s life, or otherwise to
segregate assets to assure that such 

  

 27 

 
payments shall be made. Neither a Participant, Eligible Spouse, or Designated Beneficiary shall have any interest in any particular asset of the Company by
reason of the obligations hereunder, and the right of any of them to receive payments under this Plan shall be no greater than the right of any other unsecured general creditor of the Company. Nothing contained in the Plan shall create or be
construed as creating a trust of any kind or any other fiduciary relationship between the Company and a Participant, Eligible Spouse, or Designated Beneficiary. 
  

11.03 No Employment Agreement. Neither the execution of this Plan nor any action taken by the Company pursuant to this Plan shall be held or
construed to confer on a Participant any legal right to be continued as an employee of the Company. This Plan shall not be deemed to constitute a contract of employment between the Company and a Participant, nor shall any provision herein restrict
the right of any Participant to terminate his employment with the Company. 
  
 11.04 Binding Effect.
Southern National Corporation and Participating Subsidiaries shall be jointly and severally liable with respect to the obligations incurred pursuant to this Plan and such obligations shall be binding upon and inure to the benefit of their successors
and assigns, and the Participant and his Eligible Spouse and Designated Beneficiary. 
  
 11.05 Claims for Benefits. Any Participant, Eligible Spouse or Designated Beneficiary claiming a benefit under this Plan must give written notification thereof to the Committee. If 

  

 28 

 
a claim is denied, it must be denied within a reasonable period of time and the denial must be accompanied by a written notice stating the following:

  

	 	(a)	Specific reason for the denial; 

  

	 	(b)	Specific reference to the Plan provision on which the denial is based; 

  

	 	(c)	Description of additional information necessary for the claimant to present his claim, if any, and an explanation of why such material is necessary; and 

  

	 	(d)	Explanation of the Plan’s claims review procedure. 

  
 The claimant will have 60 days to request a review of the denial by the Committee. The request for review must be in writing delivered to the Committee,
which will then provide a full and fair review. The claimant may review pertinent documents, and he may submit issues and comments in writing. The decision by the Committee with respect to the review must be given within 60 days after receipt of the
request, unless special circumstances require an extension (such as for a hearing). In no event shall the decision be delayed beyond 120 days after receipt of the request for review. The decision shall be written in a manner calculated to be
understood by the claimant, and it shall include the specific reasons and refer to the specific Plan provisions on which it is based. 
  

 29 

 11.06 Entire Plan. This document and any amendments hereto contain all the terms and provisions of
the Plan and shall constitute the entire Plan, any other alleged terms or provisions being of no effect. 
  
 11.07 Merger or Consolidation. In the event of a merger or a consolidation of the Company or a Participating Subsidiary with another corporation or
entity, or the acquisition of substantially all of the assets or outstanding stock of the Company or a Participating Subsidiary by another corporation or entity, then and in such event the obligations and responsibilities of such merged or acquired
corporation under this Plan shall be assumed by any such successor or acquiring corporation or entity, and all of the rights, privileges and benefits of the Participants hereunder shall continue. 
  
 11.08 Payment to Incompetent. The Committee shall make the payments
provided herein directly to a Participant or beneficiary entitled thereto, or if such Participant or beneficiary has been determined by a court of competent jurisdiction to be mentally or physically incompetent, then payment shall be made to the
duly appointed guardian, conservator or other authorized representative of such Participant or beneficiary. The Company shall have the right to make payment directly to a Participant or beneficiary until it has received actual notice of the physical
or mental incapacity of such Participant or beneficiary and notice of the appointment of a duly authorized representative of his estate. Any such payment to an authorized representative for the benefit of a Participant or beneficiary shall be a
complete discharge of all liability of the Company herefor. 
  

 30 

  
 ARTICLE XII

  
 CONSTRUCTION 
  
 12.01 Governing Law. This Plan shall be construed and governed in
accordance with the laws of the State of North Carolina. 
  
 12.02
Gender. The masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly indicates to the contrary. 
  
 12.03 Headings, Etc. The cover page of the Plan, the Table of Contents
and all headings used in this Plan are for convenience of reference only and are not part of the substance of this Plan. 
  
 12.04 Date. The effective date of this Plan is January 1, 1989. 
  
 IN WITNESS WHEREOF, this Plan is duly executed by Southern National Corporation’s duly authorized officers as of the 15th day of June, 1989. 
  

			
	SOUTHERN NATIONAL CORPORATION
		
	 BY:
	 	 /s/ Hector MacLean

	 	 	 

  

	
	 ATTEST:

	
	 /s/ Faye M. Hollowell

	 Secretary (Acting)

	
	 [Corporate Seal]

  

 31 

  
 DECLARATION OF AMENDMENT
TO 
 SOUTHERN NATIONAL 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) 
  
 THIS DECLARATION OF AMENDMENT, made the 25th day of March, 1997, by SOUTHERN NATIONAL CORPORATION
(the “Company”), as sponsor of the Supplemental Executive Retirement Plan (SERP) (the “Plan”). 
  
 R E C I T A L S: 
  
 The Company sponsors the Plan for the benefit of selected key management employees. On February 28,1995, the Company and
BB&T Financial Corporation were merged. It is deemed advisable for the Company to amend the Plan to change the name of the Plan to the “Southern National Corporation Target Pension Plan” and to update and clarify certain provisions.

  
 NOW, THEREFORE, it is declared that the Plan shall be and
hereby is amended as follows: 
  
 1. Effective as of January 1,
1997, the name of the Plan shall be changed to the “Southern National Corporation Target Pension Plan.” On and after January 1,1997, all references to the word “Plan” shall mean “Southern National Corporation Target Pension
Plan.” 
  
 2. Effective as of February 28,1995, Article II of
the Plan shall be amended by deleting the reference in Section 2.04 to “Southern National Bank of North Carolina, N.A.” and substituting therefor “Branch Banking and Trust Company.” 
  
 3. Effective as of January 1, 1996, Article II of the Plan shall be further
amended by deleting Section 2.18 in its entirety and substituting therefor the following: 
  
 “2.18 ‘Pension Plan’ means the Southern National Corporation Pension Plan (amended and restated as of January 1,
1996), as it may be amended from time to time.” 
  

 4. Effective as of January 1, 1997, Article II of the Plan shall be further amended by deleting Section
2.20 in its entirety and substituting therefor the following: 
  
 “2.20 ‘Plan.’ This Southern National Corporation Target Pension Plan as contained herein and as it may be amended from time to time.” 
  
 5. Effective as of January 1, 1997, Article III of the Plan shall be amended
by adding the following new material to the end of Section 3.02: 
  
 “The Participants in the Plan are designated in Exhibit A attached hereto, as the same may be amended from time to time by the Committee.” 
  
 6. Effective as of February 28, 1995, Article XI of the Plan shall be amended by deleting Section 11.02 in its entirety and substituting therefor the
following: 
  
 “11.02 Funding. The
Plan is intended to be an unfunded plan of deferred compensation maintained for a select group of highly compensated or management employees. The obligation of the Company to make payments hereunder shall constitute a general unsecured obligation of
the Company to the Participant. Notwithstanding the foregoing, the Company has established and maintains a special separate fund as provided for in the document entitled “Southern National Executive Compensation Trust.” Notwithstanding the
foregoing, no Participant, Eligible Spouse or Designated Beneficiary shall have any legal or equitable rights, interest or claims in any particular asset of the trust or the Company by reason of the Company’s obligation hereunder, and nothing
contained herein shall create or be construed as creating any other fiduciary relationship between the Company and a Participant or any other person. To the extent that any person acquires a right to receive payments from the trust or the Company
hereunder, such right shall be no greater than the right of an unsecured creditor of the Company.” 
  
 7. Except as otherwise provided in this Declaration of Amendment, the Plan shall continue and benefits shall be payable in accordance with its terms, as
amended. 
  

 2 

 IN WITNESS WHEREOF, this Amendment has been executed by the Company on the day and year first above
stated. 
  

			
	SOUTHERN NATIONAL CORPORATION
		
	By:	 	 /s/ Robert E. Greene

	 	 	 Authorized Officer

  

	
	 Attest:

	
	 /s/ Jerone C. Herring

	 (Assistant) Secretary

	
	 [Corporate Seal]

  

 3SETTLEMENT AND NONCOMPETITION AGREEMENT

  
 Exhibit 10(af)

  
 SETTLEMENT AND NONCOMPETITION 
 AGREEMENT 
  
 THIS SETTLEMENT AND NONCOMPETITION AGREEMENT (the “Agreement”) made and entered into this 1st day of July 1997, by and between
BB&T CORPORATION, a North Carolina corporation with its principal office at Winston-Salem, North Carolina (“BB&T”), and E. RHONE SASSER, an individual residing in Whiteville, North Carolina (“Sasser”).

  
 R E C I T A
L S : 
  
 Sasser has been employed by United
Carolina Bancshares Corporation (“UCB”) as its Chairman of the Board of Directors and Chief Executive Officer pursuant to an Employment Agreement entered into by Sasser and UCB dated as of January 18,1995 (the “UCB Employment
Agreement”). As of November 1, 1996, BB&T and UCB entered into an Agreement and Plan of Reorganization (later modified as of the same date in an Amended and Restated Agreement and Plan of Reorganization, and referred to herein as the
“Reorganization Agreement”), pursuant to which UCB has been merged with and into BB&T (the “Merger”). The parties hereto acknowledge that the UCB Employment Agreement constitutes a legally enforceable agreement by Sasser,
that Sasser has complied with his obligations thereunder in all material respects, and that Sasser is willing and able to continue to perform his obligations thereunder. BB&T, as successor to UCB, desires to terminate the UCB Employment
Agreement and Sasser’s employment by BB&T and to enter into this Agreement in full settlement of the UCB Employment Agreement. BB&T and Sasser acknowledge that this Agreement has been negotiated at arms-length, that both parties hold
equal bargaining positions, and that each has relied on the advice of experienced counsel in negotiating the terms and provisions of this Agreement. 
  
 BB&T also recognizes that Sasser has broad experience in the banking business and close relations with many of UCB’s major customers, has close
relations with key employees of UCB, and has extensive knowledge of UCB trade secrets and other proprietary information, and BB&T thus believes that Sasser could substantially damage the business of BB&T were he to compete with BB&T or
attempt to solicit away customers or employees of BB&T. 
  
 Sasser, in consideration of the payments in Article I and the benefits provided in Article II, agrees that the UCB Employment Agreement shall be and hereby is terminated in its entirety effective on the date hereof, and acknowledges and
agrees that he has no further rights or entitlements thereunder. 
  

 NOW, THEREFORE, for and in consideration of the premises and the mutual promises and agreements
hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, BB&T and Sasser covenant and agree as follows: 
  
 ARTICLE I 
  
 COMPENSATION 
  

	1.01. 	Annual Compensation. 

  

	 	(a)	Payments to Sasser. 

  
 Commencing on the date hereof and continuing through the earlier of (i) attainment by Sasser of his sixty-fifth birthday, or (ii)
Sasser’s death, BB&T shall pay to Sasser $769,392 per annum, as adjusted as provided in Section 1.01(d) (such amount as adjusted is referred to herein as the “Base Amount”). The payments made pursuant to this Section 1.01 are in
addition to the benefits provided in Article II. One-twelfth of the Base Amount shall be paid for each calendar month in accordance with the normal payroll practices of BB&T on the date set from time to time for payment of monthly salary to
BB&T senior executives (the “Payment Date”). If Sasser shall survive to tie date of his sixty-fifth birthday (the “Determination Date”), he shall receive for the remainder of his lifetime monthly amounts (payable on the
Payment Date each month) of seventy percent of the highest monthly Base Amount paid to him during the twelve calendar months preceding the Determination Date, reduced as provided in Section 1.02. 
  

	 	(b)	Payments following Death of Sasser. 

  
 If Sasser’s death occurs before the Determination Date, BB&T shall pay through and including the Determination Date, to
Sasser’s current spouse, Dorothy F. Sasser (“Current Spouse”), if she survives him and was married to Sasser at the date of his death, or if not, in equal portions to Sasser’s two sons, Edward Craig Sasser and Douglas Bryon
Sasser, if they both survive him, or if they do not both survive him, to Sasser’s estate (the foregoing to be referred to hereinafter, as appropriate, as “Sasser’s Beneficiary”) a monthly death benefit equal to one-twelfth of the
Base Amount, including continuing adjustments as provided in Section 1.01 (d). The monthly payment for each calendar month shall be made on the Payment Date for the month. Upon the occurrence of the Determination Date (if Sasser’s death occurs
before the Determination Date), or upon Sasser’s death if he dies following the Determination Date, BB&T shall pay to his Current Spouse, if she is then living and was married to Sasser at the date of his death, a monthly death benefit for
her life, payable on the Payment Date each month, equal to thirty-five percent of the highest monthly Base Amount paid by BB&T to Sasser or Sasser’s Beneficiary during the twelve-month period immediately preceding the Determination Date,
reduced as provided in Section 1.02. No payments shall be made under this Section 1.01(b) following the Determination Date if Sasser dies prior to the Determination Date and his Current Spouse either is not married to him on the date of his death or
does not survive beyond the Determination Date, or following Sasser’s death if Sasser dies following the Determination Date and his Current Spouse is not married to him on the date of his death. 
  

	 	(c)	Partial Month. 

  
 If any payment pursuant to 1.01 (a) or (b) commences on a day other than the first day of a calendar month, or ceases on a day other than
the last day of a calendar month, the monthly amount payable for such partial month shall equal the amount payable for a full month multiplied by a fraction, the numerator of which is the number of days in the month during the period for which the
payment is to be made, and the denominator of which is the number of days in the month. 
  

 2 

	 	(d)	CPI Adjustment. 

  
 The Base Amount shall be automatically increased as of each year (commencing on July 1,1998 and ending with July 1 next preceding the
Determination Date) to reflect increases in the cost of living (as hereinafter described). The amount of any annual automatic cost of living increase in the Base Amount shall be determined by multiplying the most recent Base Amount by a fraction,
the numerator of which shall be the Consumer Price Index (the “CPI”) [All Urban Consumers, South Region Average (1982-84 = 100); All Items, Bureau of Labor Statistics of The United States Department of Labor], for the month of May
preceding the July 1 of the current calendar year, and the denominator of which shall be the CPI for May of the calendar year preceding the current year. If the quotient obtained in the foregoing fraction shall be less than one, the Base Amount
shall not be adjusted for the current year (and, for the purpose of determining the CPI adjustment, if any, for future years, the denominator of the above fraction shall be the CPI for May of the calendar year in which a CPI adjustment was last made
to the Base Amount) In the event (i) the CPI ceases to use the 1982-84 average of 100 as the base of calculation, or (ii) a substantial change is made in the quality or quantity of the items utilized in determining the CPI, or (iii) the publishing
of the CPI shall be discontinued for any reason, the parties hereto shall thereafter accept and use such other index or comparable statistics to measure the cost of living as shall be mutually agreeable to BB&T and Sasser or Sasser’s
Beneficiary. 
  

	 	(e)	Parachute Payment Adjustment. 

  
 In the event that any amount required to be paid or distributed to Sasser pursuant to this Agreement shall constitute a parachute payment
within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder (the “Code”), and the aggregate of such parachute payments and any other amounts otherwise required to be paid or
distributed to Sasser by BB&T shall cause Sasser to be subject to the excise tax on excess parachute payments under Section 4999 of the Code (the “Excise Tax”), BB&T shall pay to Sasser an additional amount (the “Gross-Up
Payment”) such that the net amount Sasser shall receive after the payment of any Excise Tax shall equal the amount which he would have received if the Excise Tax had not been imposed. The Gross-Up Payment shall be determined by BB&T’s
regular independent auditors and shall equal the sum of the following: 
  
 (i) The rate of the Excise Tax multiplied by the amount of the excess parachute payments; 
  
 (ii) Any federal income tax, social security tax, unemployment tax or Excise Tax imposed upon Sasser as a result of the Gross-Up Payment
required to be made under this paragraph (e); and 
  
 (iii) Any state income or other tax imposed upon Sasser as a result of the Gross-Up Payment required to be made under this paragraph (e). 
  
 For purposes of determining the amount of the Gross-Up Payment, Sasser shall be deemed to pay federal income taxes at the highest marginal rate of federal
income taxation for individuals in the calendar year in which the Excise Tax is required to be paid. In addition, Sasser shall be deemed to pay state income taxes at a rate determined in accordance with the following formula: 
  
 ( 1 - (highest marginal rate of federal income taxation for
individuals)) x (highest marginal rate of North Carolina income taxes for individuals in the calendar year in which the Excise Tax is required to be paid). 
  

 3 

 The Gross-Up Payment shall be made on or before the date that Sasser is required to pay the Excise Tax; provided, that if
the amount of such Payment cannot be finally determined on or before such date, BB&T shall pay to Sasser on such date an estimate, as determined in good faith by BB&T’s regular independent auditors, of the minimum amount of such payment
and shall pay the remainder of such payment (together with interest at the rate provided under Section 1274(b)(2)(B) of the Code) as soon as the amount can be determined but no later than the thirtieth day after the date Sasser becomes subject to
the payment of the Excise Tax. In the event that the Excise Tax is subsequently determined to be less than the amount taken into account hereunder at the time the Gross-Up Payment is made, Sasser shall repay to BB&T at the time that the amount
of such reduction in Excise Tax is finally determined, the portion of the Gross-Up Payment attributable to such reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax, federal and state taxes imposed on the Gross-Up
Payment being repaid by Sasser, if such repayment results in a reduction in Excise Tax and/or a federal or state tax deduction) plus interest on the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the Code. In the event
that the Excise Tax is determined to exceed the amount taken into account hereunder at the time the Gross-Up Payment is made (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up
Payment), BB&T shall make an additional Gross-Up Payment in respect of such excess (plus any interest payable with respect to such excess) at the time that the amount of such excess is finally determined. 
  

	1.02.	  Other Payments. 

  
 The payments due after the Determination Date to Sasser or his Current Spouse under Section 1.01 shall be reduced by the sum of the following amounts:

  

	 	(a)	BB&T Pension Plan. 

  
 The amount actually paid each month to Sasser (and to his Current Spouse, if applicable) under the BB&T Pension Plan (which plan shall
succeed by plan merger to the assets and liabilities under the UCB defined benefit pension plan), based on the payment option applicable with respect to Sasser under the BB&T Pension Plan. 
  

	 	(b)	Benefit Equivalency Plan. 

  
 The amount actually paid each month to Sasser (and to his Current Spouse, if applicable) under the UCB Benefit Equivalency Plan, based on
the payment option applicable with respect to Sasser under such Plan. 
  

	1.03. 	Liquidated Damages. 

  
 The amounts payable pursuant to this Article I and the life insurance coverages and other benefits provided in Article II are payable to or for the
benefit of Sasser as liquidated damages for settlement of the UCB Employment Agreement, as well as compensation for the covenants in Article III. 
  

 4 

 ARTICLE II 
  

ADDITIONAL BENEFITS 
  
 In order to protect Sasser against the loss of certain rights and benefits to which he is entitled under the UCB Employment Agreement, and to provide
certain additional benefits, BB&T hereby agrees to the following: 
  

	2.01.	  Life Insurance. 

  
 BB&T shall maintain Sasser’s split-dollar life insurance policies and shall provide additional life insurance, as follows:

  

	 	(a)	Split-Dollar Life Insurance. 

  
 BB&T shall continue to pay through the earlier of the Determination Date or Sasser’s death the employer’s portion of the
premiums on the UCB split-dollar insurance policies on Sasser’s life. Sasser or his designee shall continue to own the policies subject to BB&T’s interest therein. 
  

	 	(b)	Life Insurance. 

  
 BB&T has acquired and shall maintain one or more life insurance policies with an insurer reasonably acceptable to Sasser with an
aggregate death benefit of $1,000,000 on Sasser’s life, payable to one or more beneficiaries designated from time to time by Sasser. BB&T shall pay the premium payments for such policies until the date of Sasser’s death. 
  

	2.02.	  Medical Insurance. 

  
 BB&T shall provide medical benefits coverage to Sasser, including dependent coverage for his Current Spouse (if she shall remain married to Sasser),
at the same level as provided by BB&T to participants under the BB&T Corporation Retiree Health Care Plan (the “BB&T Plan”) for the period beginning on the date hereof and ending on the date of death of Sasser or, if later, the
date of death of his Current Spouse if she shall be married to him at the date of his death; provided, however, that in no event will the level of such benefits be less than that provided under UCB’s retiree health plan in effect immediately
prior to the effective time of the Merger. Sasser (or, if coverage extends beyond Sasser’s death, his Current Spouse) shall be responsible for that percentage of the cost of his coverage (and that of his dependent spouse) under the BB&T
Plan which is paid by other similarly situated participants under the BB&T Plan 
  

	2.03.	  Other Benefits. 

  
 In addition to the benefits provided in Section 2.02, Sasser shall be entitled to participate in the benefit plans or arrangements under the BB&T
Corporation Flexible Compensation Program (the “BB&T Flexible Benefits Plan”), if and to the extent he is eligible to participate in accordance with the terms and provisions of the BB&T Flexible Benefits Plan. Sasser shall be
responsible for that portion of the cost of his coverage under the BB&T Flexible Benefits Plan which is paid by other similarly situated 

  

 5 

 
participants under the BB&T Plan. If Sasser is not eligible to participate in accordance with the terms and conditions of the BB&T Flexible Benefits
Plan, BB&T shall, if Sasser so requests, provide similar coverage outside such plan at a level not less than that provided under UCB’s flexible benefits plan in effect immediately prior to the effective time of the Merger, and Sasser will
pay an amount towards such alternate coverage as he would have paid had he been eligible to participate in the BB&T Flexible Benefits Plan. 
  

	2.04. 	Long Term Incentive Plan. 

  
 In accordance with the UCB Long Term Incentive Plan, immediately prior to the effective time of the Merger, the dollar amount of Sasser’s accrued
benefits under such plan were converted to shares of UCB common stock based on the average of the closing price of such stock over the 20 trading days immediately preceding the Merger. Such UCB shares were converted to shares of BB&T common
stock in the Merger, based on the Exchange Ratio (as defined in the Reorganization Agreement). Such shares of BB&T common stock shall be distributed to Sasser in a single lump sum on the date hereof. 
  

	2.05. 	Stock Options. 

  
 Any Stock Options (as defined in the Reorganization Agreement) issued pursuant to the Stock Option Plan (as defined in the Reorganization Agreement) in
which Sasser is vested as of the date hereof shall be converted to options to acquire shares of common stock of BB&T pursuant to Section 2.10 of the Reorganization Agreement. Such Stock Options as so converted shall be subject to and governed by
the terms of the Stock Option Plan as defined in the Reorganization Agreement. 
  
 ARTICLE III 
  
 NONCOMPETITION AND CONFIDENTIALITY 
  

	3.01. 	Background for Covenants. 

  
 Sasser has been an employee of UCB for approximately 29 years, of which 14 years have been as Chairman of the Board of Directors, Chief Executive Officer
or in other senior executive positions. During his tenure with UCB, Sasser has established close personal relationships with many of UCB’s largest and most significant customers. In addition, he has established close personal relationships with
many of UCB’s key employees at all levels within the organization, many of whom will be important to BB&T in the transition period following the merger of UCB into BB&T and in conducting the former business of UCB on an on-going basis.
Sasser and BB&T recognize and acknowledge that Sasser could cause serious harm to the business formerly conducted by UCB (and now to be conducted by BB&T) if he were to compete with BB&T in its market area or if he were to attempt to
entice key employees of UCB (now employees of BB&T) to terminate their employment with BB&T. The parties further acknowledge that the terms and provisions of this Article III have been negotiated at arms-length, that both parties hold equal
bargaining positions, that each party has relied on the advice of experienced legal counsel in negotiating the terms and provisions of this Article III, and that each party intends to be legally bound by these terms and provisions. 
  

 6 

	3.02. 	Noncompetition and Nonsolicitation Covenants. 

  
 Following the date of this Agreement, Sasser shall not directly or indirectly, (i) anywhere in the states of North Carolina, South Carolina and Virginia
and in any county outside such states contiguous to one or more of such states, either as a principal, agent, employee, employer, stockholder, owner, member, proprietor, partner or in any other individual or representative capacity whatsoever,
engage in the banking and financial services business, which includes consumer, savings and commercial banking and the insurance and trust businesses, or the savings and loan or mortgage banking business, or any other business in which BB&T is
engaged at this time; (ii) solicit or assist any other person in soliciting, any depositors or customers of BB&T (including without limitation any former depositors or customers of UCB) to become depositors or customers of any other institution;
or (iii) induce any employee of BB&T (including without limitation any former employee of UCB) to terminate his or her employment with BB&T; provided, that nothing contained in part (i) of this Section 3.02 shall be deemed to limit
Sasser’s right to invest in a business similar to BB&T’s business if such investment is limited to less than one percent of the capital stock or other securities of any corporation or similar organization with stock or securities
publicly owned or regularly traded on any public exchange or market. This Section 3.02 shall apply for a period of ten years from the date hereof. 
  

	3.03. 	Proprietary and Confidential Information. 

  
 Sasser acknowledges that during his employment with UCB he learned a substantial amount of information which is now proprietary and confidential to
BB&T. Such proprietary and confidential information includes, but is not limited to, UCB’s business, marketing, customer development, strategic planning and expansion plans, methods of doing business, trade secrets and similar information
as related to the business formerly conducted by UCB. Sasser acknowledges that BB&T would be damaged if such proprietary and confidential information were made available to BB&T’s competitors. Sasser agrees that, except as required by
law, he shall not at any time divulge to any person, agency, institution, company or other entity any information which he knows or has reason to believe is proprietary or confidential to BB&T. Sasser agrees that his duties and obligations under
this Section 3.03 shall continue for as long as such information remains proprietary or confidential to BB&T. 
  

	3.04. 	Breach of Obligations. 

  
 Payments and benefits due Sasser under Article I (other than under Section 1.01(e)) shall be discontinued in the event Sasser breaches the provisions of
Section 3.02 or 3.03; provided that Sasser has received written notice from BB&T of such breach and such breach remains uncured thirty days after the delivery of such notice. If there is a disagreement between the parties as to whether Sasser
has breached Section 3.02 or 3.03, then after the above thirty-day period, if such breach remains uncured in BB&T’s opinion, BB&T may suspend payments and benefits to Sasser until such time as BB&T and Sasser shall agree as to
BB&T’s right to discontinue payments and benefits or until there is a final determination of the issue. In the event such determination results in a continuation of payments and benefits to Sasser, BB&T shall pay any suspended payments
in a lump sum, together with interest at the rate provided under Section 1274(b)(2)(B) of the Code from the date of suspension, and shall resume regular payments and benefits in accordance with Article I. 
  

 7 

	3.05. 	Reasonableness of Restrictions. 

  
 BB&T and Sasser acknowledge and agree that this Agreement, including without limitation the noncompetition provisions of Section 3.02 and the
nondisclosure provisions of Section 3.03, does not unduly or unfairly curtail Sasser’s ability to support himself and his family due to Sasser’s financial resources, extensive business experience and expertise, and ability to engage in
banking and related businesses outside of North Carolina, South Carolina and Virginia. BB&T and Sasser further acknowledge and agree that the protections to BB&T in this Article III are reasonable and necessary in relation to the need of
BB&T to protect its business. 
  
 ARTICLE IV 

 
 AMENDMENT OR TERMINATION 
  
 BB&T may, with the prior written consent of Sasser or Sasser’s
Beneficiary following his death, modify, alter, amend or terminate this Agreement, in whole or in part at any time. An amendment may be made retroactively if it is necessary to make this Agreement conform to applicable law or if agreeable to the
parties. No amendment or modification of this Agreement or any covenant, condition or limitation shall be valid unless in writing and duly executed by the parties to this Agreement. 
  
 ARTICLE V 
  
 BOARD OF DIRECTOR AND EXECUTIVE COMMITTEE SERVICE 
  
 At the first meeting of the Board of Directors of BB&T following the date hereof, Sasser will be appointed to BB&T’s Board of Directors,
which appointment will continue for so long as Sasser is willing and able to serve and until the next annual meeting of shareholders of BB&T. Sasser will also at such meeting be appointed as a member of the Executive Committee of BB&T’s
Board of Directors. Thereafter, BB&T will use its best efforts, subject to the fiduciary duties of the members of the Nominating Committee and the other members of its Board of Directors, to nominate Sasser for election to BB&T’s Board
of Directors and to appoint him to the Executive Committee, in each case so that he will serve on the Board and Executive Committee until the normal retirement age for BB&T directors as established from time to time (currently age 70). Sasser
will receive the normal compensation of an outside director or committee member with respect to these services. 
  
 ARTICLE VI 
  
 GENERAL PROVISIONS 
  

	6.01. 	Construction. 

  
 Headings and subheadings used in this Agreement have been inserted for convenience of reference only and shall be ignored in any construction of the
provisions. If a provision of this Agreement is illegal or invalid, that illegality or invalidity does not affect other provisions in this Agreement. 
  

 8 

	6.02. 	Governing Law. 

  
 This Agreement shall be construed, enforced, and administered in accordance with the laws of the State of North Carolina (other than its choice of law
rules), except to the extent that those laws are superseded by the laws of the United States of America. 
  

	6.03. 	Mitigation. 

  
 Sasser shall not be required to mitigate the amounts of any payments provided for in this Agreement by seeking other employment or otherwise, nor shall
the amount of any such payment be reduced by any compensation earned by Sasser as the result of employment by another employer, subject to compliance by Sasser with the provisions of Sections 3.02 and 3.03. 
  

	6.04. 	Withholding. 

  
 All payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law. 
  

	6.05. 	Notice. 

  
 For purposes of this Agreement, notices and all other communications shall be in writing. All notices to BB&T shall be directed to the attention of
the Chief Executive Officer. Notices and communications are effective when personally delivered or sent by nationally recognized air courier, charges prepaid, addressed to the addressee at the addressee’s last known address. Notices of change
in address are effective only upon receipt. 
  

	6.06. 	Certain Expenses. 

  
 In the event a dispute arises as to Sasser’s entitlements to any rights or benefits hereunder, and thereafter Sasser incurs legal fees and other
expenses, including court costs or arbitrator fees, in seeking to obtain or to enforce such rights or benefits, and Sasser prevails in obtaining or enforcing such rights or benefits through settlement, arbitration, judgment or otherwise, BB&T
shall promptly pay Sasser’s reasonable legal fees and expenses incurred in so enforcing this Agreement. Except to the extent provided in the preceding sentence, each party hereto shall pay its own legal fees and other expenses associated with
any dispute. 
  

	6.07. 	Entire Agreement. 

  
 This Agreement sets forth all of the promises, covenants, agreements, conditions and understandings between the parties to this Agreement with respect to
the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements or conditions, express or implied, oral or written, with respect thereto, except as contained herein. Specifically, without limitation,
Sasser agrees that (i) this Agreement fulfills the obligations of BB&T with respect to him as set forth in that letter agreement between UCB and BB&T dated November 1, 1996, as amended and supplemented, (ii) the UCB Employment Agreement is
terminated in its entirety effective on the date hereof, and he has no further rights or entitlements under the UCB Employment Agreement, and (iii) his employment with UCB 

  

 9 

 
is terminated and the benefits and payments herein are in full settlement of all obligations to him under the UCB Employment Agreement or otherwise arising
out of his employment with UCB. 
  

	6.08. 	Recitals. 

  
 The Recitals to this Agreement shall form a part of this Agreement. 
  

	6.09. 	Counterparts. 

  
 This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument. 
  

	6.10. 	Contests and Audits. 

  
 Sasser agrees that for tax purposes he shall report the payments made to him hereunder in a manner that is consistent with the tax treatment of such
payments by BB&T. Sasser shall promptly notify BB&T in writing upon receipt of notice of any pending or threatened audit or assessment with respect to Sasser which may relate to the treatment of payments hereunder. BB&T shall have the
right at its option and expense to exclusively control and have responsibility for the conduct of any audit, examination, proceeding or litigation (a “Contest”) to tie extent such Contest relates to the treatment of payments hereunder, but
Sasser shall retain control of any other matter included in such Contest. BB&T agrees to notify Sasser reasonably in advance of any proposed settlement. 
  
 [signature page follows] 
  

 10 

 IN WITNESS WHEREOF, BB&T, by its duly authorized officer and Sasser have hereunto set their hands as
of the day and year first written above. 
  

			
	BB&T CORPORATION
		
	 By:
	 	/s/ John A. Allison, IV
	 	 	John A. Allison, IV
	 	 	 Chairman of the Board of Directors and
 Chief Executive Officer

	
	 
	E. RHONE SASSER

  

 IN WITNESS WHEREOF, BB&T, by its duly authorized officer and Sasser have hereunto set their hands as
of the day and year first written above. 
  

			
	BB&T CORPORATION
		
	 By:
	 	 
	 	 	John A. Allison, IV
	 	 	 Chairman of the Board of Directors and
 Chief Executive Officer

	
	/s/ E. RHONE SASSER
	E. RHONE SASSER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}]]