Document:

Contingent Value Rights Agreement dated January 28, 2011

 Exhibit 10.12 
 EXECUTION COPY 
 CONTINGENT VALUE RIGHTS AGREEMENT 

THIS CONTINGENT VALUE RIGHTS AGREEMENT, dated as of January 28, 2011 (this “Agreement”), is entered into by
CAPITAL BANK CORPORATION, a corporation organized under the laws of the State of North Carolina (the “Company”) for the benefit of the Holders (as defined herein).

 RECITALS: 
 WHEREAS, North American Financial Holdings, Inc. (“Purchaser”), the Company and Capital Bank, a North Carolina state-chartered banking corporation and a banking subsidiary of the Company
(the “Bank”), have entered into an Investment Agreement dated as of November 3, 2010 (the “Investment Agreement”), pursuant to which the Company intends to issue and sell to Purchaser, and Purchaser intends to
purchase from the Company, as an investment in the Company, 71,000,000 shares of common stock, no par value, of the Company (the “Common Stock”) at a purchase price of $2.55 per share on the terms and conditions described in the
Investment Agreement. 
 WHEREAS, as a condition to the Closing of the Investment Agreement, the Company agreed to issue
contingent value rights to its shareholders, as described herein. 
 WHEREAS, the Company has done all things necessary to make
the contingent value rights, when issued pursuant to the Investment Agreement and hereunder, the valid obligations of the Company and to make this Agreement a valid and binding agreement of the Company, in accordance with its terms. 

NOW, THEREFORE, for and in consideration of the premises and the consummation of the transactions referred to above, it is mutually
covenanted and agreed, for the equal and proportionate benefit of all Holders (as hereinafter defined), as follows: 
 ARTICLE
I 
 DEFINITIONS 
 Section 1.1 Definitions. 
 (a) For all purposes of this Agreement,
except as otherwise expressly provided or unless the context otherwise requires: 
 (i) the terms defined in this
Article have the meanings assigned to them in this Article; 
 (ii) all accounting terms used herein and not
expressly defined herein shall have the meanings assigned to such terms in accordance with U.S. generally accepted accounting principles, as in effect on the date hereof; 

(iii) the words “herein,” “hereof” and “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular Article, Section or other subdivision; 

 (iv) unless the context otherwise requires, words describing the singular
number shall include the plural and vice versa, words denoting any gender shall include all genders; and 
 (v)
all references to “including” shall be deemed to mean including without limitation. 
 (b) The following terms shall
have the meanings ascribed to them as follows: 
 “Agreement” has the meaning set forth in the first paragraph
of this agreement. 
 “Bank” has the meaning set forth in the first recital. 

“Board Resolution” means a copy of a resolution certified by the secretary or an assistant secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification. 

“Business Day” means any day except Saturday, Sunday and any day that shall be a legal holiday or a day on which banking
institutions in the State of New York or in the State of North Carolina generally are authorized or required by law or other governmental action to close. 
 “Change of Control” means the consummation of any transaction resulting in the holders of the equity interests of the Parent immediately prior to such transaction owning, directly or
indirectly, less than 50% of the equity interests of the Parent immediately following such transaction. For purposes of the preceding sentence, the “Parent” shall mean the ultimate Person or Group that together with their
affiliates, directly or indirectly. owns or controls, by share ownership, contract or otherwise, a majority of the equity interests of the Company. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended and the Treasury Regulations promulgated thereunder. 

“Common Stock” has the meaning set forth in the first recital. 

“Company” has the meaning set forth in the first paragraph of this Agreement. 

“Credit Losses” means the charge-offs with respect to any loans or prior charged-off loans outstanding as of
November 3, 2010 as set forth on Schedule 1 to this Agreement for the period commencing on November 3, 2010 and ending on the Maturity Date less any recoveries in respect of such charge-offs. 

“CVRs” means the contingent value rights issued by Company pursuant to the Investment Agreement and this Agreement.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Group” has the meaning assigned to such term in Section 13(d)(3) of the Exchange Act. 

“Holder” means a Person in whose name a CVR is registered in the CVR Register. 

  
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 “Investment Agreement” has the meaning set forth in the first recital.

 “Loan Portfolio Committee” means the Loan Portfolio Committee of the Bank, established pursuant to
Section 4.1(c) of the Investment Agreement and any successor or replacement committee. 
 “Loss Shortfall”
has the meaning set forth in Section 2.4. 
 “Maturity Date” means January 28, 2016. 

“Maximum Payment Amount” means an amount equal to $0.75 per CVR, payable in cash. 

“Paying Agent” has the meaning set forth in Section 2.4. 

“Payment Amount” has the meaning set forth in Section 2.4. 

“Payment Certificate” has the meaning set forth in Section 2.4. 

“Payment Date” means the date that a Payment Amount is paid by the Company to the Holders, which date shall be
established pursuant to Section 2.4. 
 “Permitted Transfer” means any transfer of a CVR held by a natural
person upon the death of such Holder by will or the laws of descent or distribution, in which case the designee, legal representative, legatee, successor trustee of such Holder’s inter vivos trust or the person who acquired the right to the CVR
by reason of such death shall succeed to such Holder’s rights with respect to the CVR. 
 “Person” has the
meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 
 “Purchaser” has the meaning set forth in the first recital. 

“Redemption Date” means the date that the Redemption Price is paid by the Company to the Holders, which date shall be
established pursuant to Section 2.5. 
 “Redemption Price” has the meaning set forth in Section 2.5.

 “Registrar” shall have the meaning set forth in Section 2.3. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Surviving Person” has the meaning set forth in Section 5.1. 

“Stipulated Amount” means $103,000,000. 

  
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 ARTICLE II 
 CONTINGENT VALUE RIGHTS 
 Section 2.1 Holders of CVRs. 

Immediately prior to the Closing, existing shareholders of the Company as of January 27, 2011 will become the Holder of one CVR for
each share of Common Stock owned by such shareholder as of such date. 
 Section 2.2 Transferability; Attachment 

The CVRs shall not be subject, in whole or in part, to attachment, execution, or levy of any kind, and any attempt to sell, pledge,
assign, hypothecate, transfer or otherwise dispose of the CVRs or any interest therein, other than through a Permitted Transfer, shall be void ab initio. 
 Section 2.3 No Certificate; Registration; Change of Address. 
 (a) The
CVRs shall not be evidenced by a certificate or other instrument. 
 (b) The Company, or an agent appointed by the Company,
shall keep a register (the “CVR Register”) for the registration of CVRs. The Company is hereby initially appointed “CVR Registrar” for the purpose of registering CVRs and transfers of CVRs as herein provided. For
the avoidance of doubt, the Company shall be permitted, at its discretion, to appoint the transfer agent for the Company as CVR Registrar. 
 (c) A Holder may make a written request to the CVR Registrar to change such Holder’s address of record in the CVR Register. The written request must be duly executed by the Holder. Upon receipt of
such written notice, the CVR Registrar shall promptly record the change of address in the CVR Register. 
 (d) Upon the
occurrence of a Permitted Transfer, the recipient may make a written request to the CVR Registrar to record such transfer in the CVR Register. The written request must be accompanied by written evidence that the transfer qualifies as a Permitted
Transfer in such form as may be acceptable to the CVR Registrar and such other documentation as may be required by the CVR Registrar. Upon receipt of such written notice, the CVR Registrar shall promptly record the transfer in the CVR Register.

 Section 2.4 Payment Procedures. 
 (a) Promptly following the Maturity Date, but in no event later than thirty (30) days after such date, the Company shall appoint a paying agent (the “Paying Agent”) and deliver to
the Paying Agent a certificate (the “Payment Certificate”) setting forth (i) the amount of Credit Losses, on an aggregate and per-CVR basis, (ii) the calculation of the Payment Amount. The “Payment Amount”
shall be equal to: 
 (i) if the difference between the Stipulated Amount and the amount of Credit Losses
expressed on a per CVR basis (such difference, the “Loss Shortfall”) is less than or equal to $0.20 per CVR, then 100% of the Loss Shortfall; 

  
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 (ii) if the Loss Shortfall is greater than $0.20 per CVR, then $0.20 per CVR
plus 50% of the excess of the Loss Shortfall over $0.20 per CVR with a maximum of the Maximum Payment Amount; and 
 (iii) if the amount of Credit Losses equals or exceeds the Stipulated Amount, zero. 
 (b) All determinations with respect to the calculation of Credit Losses and the Payment Amount shall be made by the Loan Portfolio Committee of the Company’s Board of Directors in its sole
discretion, whose determinations shall be binding on the Company and the Holders. The Loan Portfolio Committee, in its sole discretion, may utilize a third party financial advisor to assist in verifying the amount of Credit Losses and the
calculation of the Payment Amount and may rely on a report of such financial advisor for purposes of making its determinations hereunder. 
 (c) Except as otherwise requested by any Holder, the Paying Agent shall promptly (and in no event later than five Business Days after its receipt thereof) send each Holder a copy of the Payment
Certificate at its registered address. 
 (d) If Company delivers a Payment Certificate to the Paying Agent pursuant to
Section 2.4(a) above and the Payment Amount is greater than zero, the Company shall establish a Payment Date with respect to such Payment Amount that is no later than 60 days after the Maturity Date. At least 5 business days prior to such
Payment Date, the Company shall cause an amount in cash equal to the Payment Amount multiplied by the number of CVRs outstanding to be delivered to the Paying Agent, who will in turn, on the Payment Date, pay to each of the Holders an amount in cash
equal to the Payment Amount multiplied by the number of CVRs held by such Holder as reflected on the CVR Register by check mailed to the address of each Holder as reflected in the CVR Register as of the close of business on the last Business Day
prior to such Payment Date. Upon such payment, this Agreement shall terminate as provided in Section 6.10. 
 (e) The
Company shall be entitled to deduct and withhold, or cause to be deducted or withheld, from each Payment Amount otherwise payable pursuant to this Agreement, such amounts as it is required to deduct and withhold with respect to the making of such
payment under the Code, or any provision of state, local or foreign tax law. To the extent that amounts are so withheld or paid over to or deposited with the relevant governmental entity, such withheld amounts shall be treated for all purposes of
this Agreement as having been paid to the Holder in respect of which such deduction and withholding was made. 
 Section 2.5 Redemption.

 (a) The Company may, at its option, at any time prior to the Maturity Date, redeem the CVRs, in whole or in part, at a
redemption price of $0.75 per CVR (the “Redemption Price”). Partial redemptions shall be made on a pro rata basis, based on the number of CVRs held by each Holder. The redemption of CVRs by the Board of Directors of the Company may
be made effective at such time and with such conditions as the Board of Directors of the Company, in its sole discretion, may establish. 

  
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 (b) From and after the date hereof but prior to the Maturity Date, in the event of a Change
of Control, the Company shall, upon the consummation of such Change of Control, redeem all of the CVRs at the Redemption Price. 

(c) Immediately upon the action of the Company ordering the redemption of CVRs pursuant to Section 2.5(a) or the consummation of the
Change of Control under Section 2.5(b), and without any further action and without any further notice, each CVR subject to redemption shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall
cease, except for the right to receive the Redemption Price. Within 10 days after such action or consummation, the Company shall mail, or cause to be mailed, a notice of redemption to each of the Holders of the then outstanding CVRs at its
registered address. 
 (d) If the Company orders the redemption of the CVRs pursuant to Section 2.5(a) or consummates a
Change of Control under Section 2.5(b), the Company shall establish the date of such order or consummation as the Redemption Date. On or immediately following such Redemption Date, the Company shall appoint a Paying Agent and cause an amount in
cash equal to the Redemption Price multiplied by the number of CVRs outstanding to be delivered to the Paying Agent, who will in turn, as promptly as practicable, pay to each of the Holders an amount in cash equal to the Redemption Price multiplied
by the number of CVRs held by such Holder as reflected on the CVR Register by check mailed to the address of each Holder as reflected in the CVR Register as of the close of business on the last Business Day prior to such Redemption Date. 

(e) The Company shall be entitled to deduct and withhold, or cause to be deducted or withheld, from the Redemption Price otherwise
payable pursuant to this Agreement, such amounts as it is required to deduct and withhold with respect to the making of such payment under the Code, or any provision of state, local or foreign tax law. To the extent that amounts are so withheld or
paid over to or deposited with the relevant governmental entity, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Holder in respect of which such deduction and withholding was made 

Section 2.6 No Voting, Dividends Or Interest; No Equity Or Ownership Interest In The Company. 

(a) The CVRs shall not have any voting or dividend rights, and interest shall not accrue on any amounts payable on the CVRs to any Holder.

 (b) The CVRs shall not represent any equity or ownership interest in, or confer any rights of any kind or nature whatsoever
as, a shareholder of the Company or any of its affiliates either at law or in equity. 
 ARTICLE III 

COVENANTS 

Section 3.1 Payment of Payment Amount. 

  
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 The Company shall duly and promptly pay, or cause to be paid to, each Holder the applicable
Payment Amount or Redemption Price, if any, in the manner provided for in Sections 2.4 and 2.5 and in accordance with the terms of this Agreement. 
 ARTICLE IV 
 AMENDMENTS 

Section 4.1 Amendments Without Consent of Holders. 
 (a) Without the consent of any Holders, the Company, when authorized by a Board Resolution, at any time and from time to time, may enter into one or more amendments hereto, for any of the following
purposes: 
 (i) subject to Section 5.1, to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants of the Company herein; or 
 (ii) to evidence the termination
of the CVR Registrar and the succession of another Person as a successor CVR Registrar and the assumption by any successor of the obligations of the CVR Registrar herein. 

(iii) to evidence the succession of another Person as a successor Paying Agent and the assumption by any successor of the
covenants and obligations of the Paying Agent herein; 
 (iv) to add to the covenants of the Company such further
covenants, restrictions, conditions or provisions as the Board of Directors shall consider to be for the protection of the Holders; provided, that in each case, such provisions shall not adversely affect the interests of the Holders in any
material respect; 
 (v) to cure any ambiguity, to correct or supplement any provision herein that may be
defective or inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Agreement; provided, that in each case, such provisions shall not adversely affect the
interests of the Holders in any material respect; 
 (vi) as may be necessary or appropriate to ensure that the
CVRs are not subject to registration under the Securities Act or the Exchange Act; provided that such provisions shall not adversely affect the interests of the Holders in any material respect; or 

(vii) any other amendments hereto for the purpose of adding, eliminating or changing any provisions of this Agreement
unless such addition, elimination or change is adverse to the interests of the Holders in any material respect. 
 (b) Promptly
after the execution by the Company of any amendment pursuant to the provisions of this Section 4.1, the Company shall mail a notice thereof by first-class mail to the 

  
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Holders at their addresses as they shall appear on the CVR Register, setting forth in general terms the substance of such amendment. 
 Section 4.2 Amendments With Consent of Holders. 
 (a) Subject to
Section 4.1 (which amendments pursuant to Section 4.1 may be made without the consent of the Holders), with the consent of the Holders of not less than a majority of the outstanding CVRs, whether evidenced in writing or taken at a meeting
of the Holders, the Company, when authorized by a Board Resolution, may enter into one or more amendments hereto for the purpose of adding, eliminating or changing any provisions of this Agreement, even if such addition, elimination or change is in
any way adverse to the interest of the Holders. 
 (b) Promptly after the execution by the Company of any amendment pursuant to
the provisions of this Section 4.2, the Company shall mail a notice thereof by first-class mail to the Holders at their addresses as they shall appear on the CVR Register, setting forth in general terms the substance of such amendment.

 Section 4.3 Effect of Amendments. 
 Upon the execution of any amendment under this Article IV, this Agreement shall be modified in accordance therewith, such amendment shall form a part of this Agreement for all purposes and every Holder
shall be bound thereby. 
 ARTICLE V 
 CONSOLIDATION, MERGER, SALE OR CONVEYANCE 
 Section 5.1 Company May Consolidate,
Etc. 
 (a) The Company shall not consolidate with or merge into any other Person or convey, transfer or lease its properties
and assets substantially as an entirety to any Person, unless the Person formed by such consolidation or into which the Company is merged or the Person that acquires by conveyance or transfer, or that leases, the properties and assets of the Company
substantially as an entirety (the “Surviving Person”) shall expressly assume payment of amounts on all the CVRs and the performance of every duty and covenant of this Agreement on the part of Company to be performed or observed.

 (b) For purposes of this Section 5.1, “convey, transfer or lease its properties and assets substantially as an
entirety” shall mean properties and assets contributing in the aggregate at least 80% of the Company’s total consolidated revenues as reported in the Company’s last available periodic financial report (quarterly or annual, as the case
may be). 
 Section 5.2 Successor Substituted. 
 Upon any consolidation of or merger by the Company with or into any other Person, or any conveyance, transfer or lease of the properties and assets substantially as an entirety to any Person in accordance
with Section 5.1, the Surviving Person shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Agreement with the same effect as if the Surviving Person had been named as the Company herein,
and thereafter, 

  
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except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under this Agreement and the CVRs. 

ARTICLE VI 

OTHER PROVISIONS OF GENERAL APPLICATION 
 Section 6.1 Notices To The Company. 
 Any notice, request, instruction
or other document to be given hereunder by any party to another will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally or by telecopy or facsimile, upon confirmation of receipt,
(b) on the first business day following the date of dispatch if delivered by a recognized next-day courier service, or (c) on the third business day following the date of mailing if delivered by registered or certified mail, return receipt
requested, postage prepaid. 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 

(a) If to the Company or the Bank: 
 Capital Bank Corporation 
 333 Fayetteville Street, Suite 700 

Raleigh, North Carolina 27601 
 Attention: Christopher G. Marshall, Chief Financial Officer 
 Telephone:
(919) 645-3494 Fax: (919) 645-6353 
 with a copy to (which copy alone shall not constitute notice): 

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. 

2500 Wachovia Capitol Center 
 Raleigh, North Carolina 27601 
 Attention: Margaret Rosenfeld 

Telephone: (919) 821-6714 
 Fax: (919) 821-6800 
 Section 6.2 Notice To Holders. 

Where this Agreement provides for notice to Holders, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at his, her or its address as it appears in the CVR Register, not later than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other
Holders. 
 Section 6.3 Effect of Headings. 
 The Article and Section headings herein are for convenience only and shall not affect the construction hereof. 

  
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 Section 6.4 Successors and Assigns. 

All covenants and agreements in this Agreement by the Company shall bind its successors and assigns, whether so expressed or not.

 Section 6.5 Benefits of Agreement. 
 Nothing in this Agreement, express or implied, shall give to any Person (other than the Company, the Holders and their permitted successors and assigns hereunder) any benefit or any legal or equitable
right, remedy or claim under this Agreement or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the Company, the Holders and their permitted successors and assigns. 

Section 6.6 Governing Law. 
 This Agreement will be governed by and construed in accordance with the laws of the State of North Carolina applicable to contracts made and to be performed entirely within such State. The Company
irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the federal courts of the United States of America located in the State of North Carolina, or, if jurisdiction in such federal courts is not available, the courts of
the State of North Carolina, for any actions, suits or proceedings arising out of or relating to this Agreement and the transactions contemplated hereby. 
 Section 6.7 Legal Holidays. 
 In the event that a Payment Date or
Redemption Date shall not be a Business Day, then, notwithstanding any provision of this Agreement to the contrary, any payment required to be made in respect of the CVRs on such date need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the applicable payment date. 
 Section 6.8 Severability Clause.

 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 Company shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the Company. 
 Section 6.9 Counterparts. 
 This Agreement may be signed in any number
of counterparts (which may be effectively delivered by facsimile or other electronic means), each of which shall be deemed to constitute but one and the same instrument. 

  
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 Section 6.10 Termination. 

(a) This Agreement shall be terminated and of no force or effect, and the Company shall have no liability hereunder, upon the earlier to
occur of (a) the payment of the Payment Amount required to be paid under the terms of this Agreement, (b) if the Payment Certificate reflects a Payment Amount of zero, the date such Payment Certificate is sent to Holders pursuant to
Section 2.4(d), and (c) the payment of the Redemption Price pursuant to Section 2.5. 
 (b) Notwithstanding any
other provisions of this Agreement, any portion of the cash provided by the Company to the Paying Agent that remains unclaimed two (2) years after termination of this Agreement in accordance with this Section 6.10 (or such earlier date
immediately prior to such time as such amounts would otherwise escheat to, or become property of, any governmental entity) shall, to the extent permitted by law, become the property of the Company free and clear of any claims or interest of any
person previously entitled thereto. 
 Section 6.11 Entire Agreement. 

This Agreement and the Investment Agreement represent the entire understanding of the Company with reference to the transactions and
matters contemplated hereby and thereby and this Agreement supersedes any and all other oral or written agreements hereto made except for the Investment Agreement. If and to the extent that any provision of this Agreement is inconsistent or
conflicts with the Investment Agreement, this Agreement shall govern and be controlling. 
 [REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK] 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its
behalf by its duly authorized officers as of the day and year first above written. 
  

					
	CAPITAL BANK CORPORATION
		
	By:	 	/s/ B. Grant Yarber
		 	Name:	 	B. Grant Yarber
		 	Title:	 	President & CEO

 [Signature Page to CVR Agreement] 

 Schedule 1 
 Loans or Prior Charged-off Loans Outstanding as of November 3, 2010Registration Rights Agreement dated January 28, 2011

Table of Contents

 Exhibit 10.13 
 EXECUTION VERSION 
  

 
  

REGISTRATION RIGHTS AGREEMENT 
 dated as of January 28, 2011 
 by and between 

CAPITAL BANK CORPORATION 
 and 
 NORTH AMERICAN FINANCIAL HOLDINGS, INC. 

 
  

 

Table of Contents

 Table of Contents 

 

							
	1.	  	Certain Definitions	  	 	1	  
			
	2.	  	Shelf Registration Statements	  	 	4	  
			
	3.	  	Additional Demand Registrations	  	 	4	  
			
	4.	  	Piggyback Registrations	  	 	6	  
			
	5.	  	Other Registrations	  	 	7	  
			
	6.	  	Selection of Underwriters	  	 	7	  
			
	7.	  	Holdback Agreements	  	 	8	  
			
	8.	  	Procedures	  	 	8	  
			
	9.	  	Registration Expenses	  	 	13	  
			
	10.	  	Indemnification	  	 	14	  
			
	11.	  	Rule 144	  	 	15	  
			
	12.	  	Transfer of Registration Rights	  	 	16	  
			
	13.	  	Conversion or Exchange of Other Securities	  	 	16	  
			
	14.	  	Miscellaneous	  	 	16	  

Table of Contents

 REGISTRATION RIGHTS AGREEMENT, dated as of January 28, 2011, by and between Capital
Bank Corporation, a corporation organized under the laws of the State of North Carolina (the “Company”), and North American Financial Holdings, Inc., a Delaware corporation (“Purchaser”). 

In consideration of the mutual covenants and agreements herein contained and other good and valid consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows: 
  

	 	1.	Certain Definitions. 

 In
addition to the terms defined elsewhere in this Agreement, the following terms shall have the following meanings: 

“Affiliate” of any Person means any other Person that, directly or indirectly, through one or more intermediaries,
controls, or is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) as used with respect to any
Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

“Agreement” means this Registration Rights Agreement, including all amendments, modifications and supplements and any
exhibits or schedules to any of the foregoing, and shall refer to this Registration Rights Agreement as the same may be in effect at the time such reference becomes operative. 
 “Blackout Period” has the meaning set forth in Section 8(e) hereof. 
 “Business Day” means any day, except a Saturday, Sunday or legal holiday on which banking institutions in the State of New York or State of North Carolina are authorized or obligated by
law or executive order to close. 
 “Closing Date” has the meaning set forth in the Investment Agreement.

 “Common Stock” means common stock, no par value, of the Company. 

“Company” has the meaning set forth in the introductory paragraph and includes any other person referred to in the
second sentence of Section 14(c) hereof. 
 “Delay Period” has the meaning set forth in Section 3(d)
hereof. 
 “Demand Registration” has the meaning set forth in Section 3(a) hereof. 

“Demand Registration Statement” has the meaning set forth in Section 3(a) hereof. 

Table of Contents

 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “FINRA” means the Financial Industry Regulatory Authority, Inc. 

“Full Cooperation” means, in connection with any underwritten offering, where, in addition to the cooperation otherwise
required by this Agreement, (a) members of senior management of the Company (including the chief executive officer and chief financial officer) fully cooperate with the underwriter(s) in connection therewith and, at the recommendation or
request of the underwriters, make themselves available to participate in “road-show” and other customary marketing activities in such locations (domestic and foreign) as recommended by the underwriter(s) (including one-on-one meetings with
prospective purchasers of the Registrable Common Stock) and (b) the Company prepares preliminary and final prospectuses (preliminary and final prospectus supplements in the case of an offering pursuant to the Shelf Registration Statement) for
use in connection therewith containing such additional information as reasonably requested by the underwriter(s) (in addition to the minimum amount of information required by law, rule or regulation). 

“Fully Marketed Underwritten Offering” means an underwritten offering in which there is Full Cooperation. 

“Governmental Entity” means any national, federal, state, municipal, local, territorial, foreign or other government or
any department, commission, board, bureau, agency, regulatory authority or instrumentality thereof, or any court, judicial, administrative or arbitral body or public or private tribunal. 

“Investment Agreement” means the Investment Agreement, dated as of November 3, 2010, by and among the Company,
Capital Bank, a North Carolina state-chartered banking corporation and a banking subsidiary of the Company, and Purchaser. All capitalized terms used herein but not otherwise defined shall have those meanings set forth in the Investment Agreement.

 “NASDAQ” means The NASDAQ Stock Market LLC. 

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust,
unincorporated organization, association, corporation, institution, public benefit corporation, Governmental Entity or any other entity. 
 “Piggyback Registration” has the meaning set forth in Section 4(a) hereof. 
 “Piggyback Registration Statement” has the meaning set forth in Section 4(a) hereof. 
 “Prospectus” means the prospectus or prospectuses forming a part of, or deemed to form a part of, or included in, or deemed included in, any Registration Statement, as

  
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Table of Contents

 
amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Common Stock covered by such Registration Statement and by all
other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus or prospectuses. 
 “Registrable Common Stock” means (i) any shares of Common Stock issued as Stock Consideration, (ii) any other security into or for which the Common Stock referred to in clause
(i) has been converted, substituted or exchanged, and any security issued or issuable with respect thereto upon any stock dividend or stock split or in connection with a combination of shares, reclassification, recapitalization, merger,
consolidation or other reorganization or otherwise. 
 “Registration Expenses” has the meaning set forth in
Section 9(a) hereof. 
 “Registration Statement” means any registration statement of the Company that
covers any of the Registrable Common Stock pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all materials
incorporated by reference in such Registration Statement. 
 “Rule 144” means Rule 144 promulgated by the SEC
pursuant to the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC as a replacement thereto having substantially the same effect as such rule. 

“Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC as a replacement thereto having substantially the same effect as such rule. 
 “SEC” means the Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Shelf Registration Statement” has the meaning set forth in Section 2(a) hereof. 

“Stock Consideration” means the shares of Common Stock issued to Purchaser pursuant to the Investment Agreement.

 “Purchaser” has the meaning set forth in the introductory paragraph. 

“Suspension Notice” has the meaning set forth in Section 8(e) hereof. 

  
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 “underwritten registration or underwritten offering” means an offering in
which securities of the Company are sold to one or more underwriters (as defined in Section 2(a)(11) of the Securities Act) for resale to the public. 
  

	 	2.	Shelf Registration Statements. 

 (a) Right to Request Registration. At the request of Purchaser, the Company shall use its reasonable best efforts to promptly file a registration statement on Form S-3 or such other form under the
Securities Act then available to the Company providing for the resale pursuant to Rule 415 from time to time by Purchaser of such number of shares of Registrable Common Stock requested by Purchaser to be registered thereby (including the
Prospectus, amendments and supplements to the shelf registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if
any, in such shelf registration statement, the “Shelf Registration Statement”). The Company shall use its reasonable best efforts to cause the Shelf Registration Statement to be declared effective by the SEC as promptly as
practicable following such filing. The Company shall maintain the effectiveness of the Shelf Registration Statement for a period of at least eighteen (18) months in the aggregate plus the duration of any Blackout Period. The plan of
distribution contained in the Shelf Registration Statement (or related Prospectus supplement) shall be determined by Purchaser in consultation with the Company. 
 (b) Number of Fully Marketed Underwritten Offerings. Purchaser shall be entitled to request an aggregate of four (4) Fully Marketed Underwritten Offerings pursuant to the Shelf Registration
Statement; provided, however, that Purchaser shall be entitled to request no more than two (2) underwritten offerings pursuant to the Shelf Registration Statement in any twelve (12)-month period that require involvement by
management of the Company in “road-show” or similar marketing activities. If Purchaser requests a Fully Marketed Underwritten Offering, the Company shall cause there to occur Full Cooperation in connection therewith. An underwritten
offering shall not count as one of the permitted Fully Marketed Underwritten Offerings if there is not Full Cooperation in connection therewith or Purchaser is not able to sell at least 50% of the Registrable Common Stock desired to be sold in such
Fully Marketed Underwritten Offering. Except as provided in this Section 2(b), there shall be no limitation on the number of takedowns off the Shelf Registration Statement. 

 

	 	3.	Additional Demand Registrations. 

 (a) Right to Request Registration. Any time after the date hereof, Purchaser may request registration for resale under the Securities Act of all or part of the Registrable Common Stock pursuant to
a Registration Statement separate from the Shelf Registration Statement (a “Demand Registration”). As promptly as practicable after such request, but in any event within twenty (20) days of such request by Purchaser, the

  
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Company shall file a registration statement registering for resale such number of shares of Registrable Common Stock held by Purchaser as requested to be so registered (including the Prospectus,
amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if any, in such
registration statement, a “Demand Registration Statement”). In connection with each such Demand Registration, the Company shall cause there to occur Full Cooperation. 

(b) Number of Demand Registrations. Purchaser will be entitled to request four (4) Demand Registrations pursuant to
Section 3(a) minus the number of Fully Marketed Underwritten Offerings completed off of the Shelf Registration Statement. A registration shall not count as one of the permitted Demand Registrations pursuant to Section 3(a) (i) until
the related Demand Registration Statement has become effective, (ii) if Purchaser is not able to register and sell at least 50% of the Registrable Common Stock requested to be included in such registration, or (iii) if there was not Full
Cooperation in connection therewith. For avoidance of doubt, the aggregate number of Demand Registrations and Fully Marketed Underwritten Offerings completed off of the Shelf Registration Statement shall not exceed four (4). 

(c) Priority on Demand Registrations. If a Demand Registration pursuant to this Section 3 involves an underwritten offering
and the managing underwriter shall advise the Company that in its opinion the number of securities requested to be included in such registration exceeds the number of securities that can be sold in such offering without having an adverse effect on
such offering, including the price at which such securities can be sold, then the Company shall include in such registration the maximum number of shares that such underwriter advises can be so sold without having such effect, allocated
(i) first, to Registrable Common Stock requested by Purchaser to be included in such registration and (ii) second, among all shares of Common Stock requested to be included in such registration by any other Persons (including securities to
be sold for the account of the Company) allocated among such Persons in such manner as they may agree. 
 (d) Restrictions on
Demand Registrations. The Company may postpone the filing or the effectiveness of a Demand Registration Statement if, based on the good faith judgment of the Company’s Board of Directors, such postponement is necessary in order to avoid
premature disclosure of a matter the Board of Directors has determined would not be in the best interest of the Company to be disclosed at such time; provided, however, that Purchaser requesting such Demand Registration Statement shall
be entitled, at any time after receiving notice of such postponement and before such Demand Registration Statement becomes effective, to withdraw such request and, if such request is withdrawn, such Demand Registration shall not count as one of the
permitted Demand Registrations. The Company shall provide written notice to Purchaser of (x) any postponement of the filing or effectiveness of a Demand Registration Statement pursuant 

  
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to this Section 3(d), (y) the Company’s decision to file or seek effectiveness of such Demand Registration Statement following such postponement and (z) the effectiveness of
such Demand Registration Statement. The Company may defer the filing or effectiveness of a particular Demand Registration Statement pursuant to this Section 3(d) only once during any twelve (12)-month period. Notwithstanding the provisions of
this Section 3(d), the Company may not postpone the filing or effectiveness of a Demand Registration Statement past the date that is the earliest of (a) the date upon which any disclosure of a matter the Board of Directors has determined
would not be in the best interest of the Company to be disclosed is disclosed to the public or ceases to be material, (b) forty-five (45) days after the date upon which the Board of Directors has determined such matter should not be
disclosed and (c) such date that, if such postponement continued, would result in there being more than ninety (90) days in the aggregate in any twelve (12)-month period during which the filing or effectiveness of one or more Registration
Statements has been so postponed. The period during which filing or effectiveness is so postponed hereunder is referred to as a “Delay Period.” 
 (e) Effective Period of Demand Registrations. After any Demand Registration filed pursuant to this Agreement has become effective, the Company shall use its reasonable best efforts to keep such
Demand Registration Statement effective for a period of at least 90 days from the date on which the SEC declares such Demand Registration Statement effective plus the duration of any Delay Period and any Blackout Period, or such shorter period that
shall terminate when all of the Registrable Common Stock covered by such Demand Registration Statement has been sold pursuant to such Demand Registration Statement in accordance with the plan of distribution set forth therein. 

 

	 	4.	Piggyback Registrations. 

(a) Right to Piggyback. Whenever the Company proposes to publicly sell or register for sale any of its common equity securities
pursuant to a registration statement (a “Piggyback Registration Statement”) under the Securities Act (other than a registration statement on Form S-8 or on Form S-4 or any similar successor forms thereto), whether for its own
account or for the account of one or more securityholders of the Company (a “Piggyback Registration”), the Company shall give prompt written notice to Purchaser of its intention to effect such sale or registration and, subject to
Sections 4(b) and 4(c), shall include in such transaction all Registrable Common Stock with respect to which the Company has received a written request from Purchaser for inclusion therein within fifteen (15) days after the receipt of
the Company’s notice. The Company may postpone or withdraw the filing or the effectiveness of a Piggyback Registration at any time in its sole discretion, without prejudice to Purchaser’s right to immediately request a Demand Registration
or Shelf Registration Statement hereunder. A Piggyback Registration shall not be considered a Demand Registration for purposes of Section 3 of this Agreement or a Shelf Registration Statement for purposes of Section 2 of this Agreement.

  
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 (b) Priority on Primary Registrations. If a Piggyback Registration is initiated as an
underwritten primary registration on behalf of the Company where the primary use of proceeds does not include the repurchase, redemption, subscription or retirement of capital stock of the Company (a “Stock Repurchase”), and the
managing underwriter advises the Company in writing that in its opinion the number of securities requested to be included in such registration exceeds the number of securities that can be sold in such offering without having an adverse effect on
such offering, including the price at which such securities can be sold, then the Company shall include in such registration the maximum number of shares that such underwriter advises can be so sold without having such effect, allocated
(i) first, to the securities the Company proposes to sell, (ii) second, to the Registrable Common Stock requested to be included therein by Purchaser, and (iii) third, among other securities requested to be included in such
registration by other security holders of the Company on such basis as such holders may agree among themselves and the Company. 

(c) Priority on Secondary Registrations. If a Piggyback Registration is initiated as an underwritten registration on behalf of a
holder of the Company’s securities other than Registrable Common Stock or on behalf of the Company where the use of proceeds includes a Stock Repurchase, and the managing underwriter advises the Company in writing that in its opinion the number
of securities requested to be included in such registration exceeds the number that can be sold in such offering without having an adverse effect on such offering, including the price at which such securities can be sold, then the Company shall
include in such registration the maximum number of shares that such underwriter advises can be so sold without having such effect, allocated (i) first, to the securities requested to be included therein by the holder(s) requesting such
registration and the Registrable Common Stock requested to be included in such registration, pro rata among the holders of such securities on the basis of the number of shares requested to be registered by such holders and (ii) second, to other
securities (including Registrable Common Stock) requested to be included in such registration by other security holders, the Company and Purchaser, pro rata among such holder(s), the Company and Purchaser on the basis of the number of shares
requested to be registered by them. 
  

	 	5.	Other Registrations 

 The
Company shall not grant to any Person the right, other than as set forth herein, to request the Company to register any securities of the Company except such rights as are not more favorable than or not inconsistent with the rights granted to
Purchaser and that do not adversely affect the priorities set forth herein of Purchaser. 
  

	 	6.	Selection of Underwriters. 

If any of the Registrable Common Stock covered by a Demand Registration Statement or a Shelf Registration Statement is to be sold in an
underwritten offering, 

  
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Purchaser shall have the right to select the managing underwriter(s) to administer the offering subject to the prior approval of the Company, which approval shall not be unreasonably withheld.

  

	 	7.	Holdback Agreements. 

 The
Company agrees not to, and shall exercise its reasonable best efforts to obtain agreements (in the underwriters’ customary form) from its directors, executive officers and beneficial owners of 5% or more of the Company’s outstanding voting
stock not to, directly or indirectly offer, sell, pledge, contract to sell, (including any short sale), grant any option to purchase or otherwise dispose of any equity securities of the Company or enter into any hedging transaction relating to any
equity securities of the Company during the ninety (90) days beginning on the effective date of any underwritten Demand Registration Statement or any underwritten Piggyback Registration Statement or the pricing date of any underwritten offering
pursuant to any Registration Statement (except as part of such underwritten offering or pursuant to registrations on Form S-8 or S-4 or any successor forms thereto) unless the underwriter managing the offering otherwise agrees to a shorter period.

  

	 	8.	Procedures. 

 (a) In
connection with the registration and sale of Registrable Common Stock pursuant to this Agreement, the Company shall use its reasonable best efforts to effect the registration and the sale of such Registrable Common Stock in accordance with
Purchaser’s intended methods of disposition thereof, and pursuant thereto the Company shall as expeditiously as reasonably practicable: 
 (i) prepare and file with the SEC a Registration Statement with respect to such Registrable Common Stock and use its reasonable best efforts to cause such Registration Statement to become effective as
soon as practicable thereafter; and before filing a Registration Statement or Prospectus or any amendments or supplements thereto (including any prospectus supplement for a shelf takedown), furnish to Purchaser and the underwriter or underwriters,
if any, copies of all such documents proposed to be filed, including documents incorporated by reference in the Prospectus and, if requested by Purchaser, the exhibits incorporated by reference, and Purchaser (and the underwriter(s), if any) shall
have the opportunity to review and comment thereon, and the Company will make such changes and additions thereto as reasonably requested by Purchaser (and the underwriter(s), if any) prior to filing any Registration Statement or amendment thereto or
any Prospectus or any supplement thereto; 
 (ii) prepare and file with the SEC such amendments and supplements
to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration 

  
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Statement effective for a period of not less than 90 days, in the case of a Demand Registration Statement or an aggregate of eighteen (18) months, in the case of a Shelf Registration
Statement (plus, in each case, the duration of any Delay Period and any Blackout Period), or such shorter period as is necessary to complete the distribution of the securities covered by such Registration Statement and comply with the provisions of
the Securities Act with respect to the disposition of all securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by Purchaser thereof set forth in such Registration Statement and,
in the case of the Shelf Registration Statement, prepare such prospectus supplements containing such disclosures as may be reasonably requested by Purchaser or any underwriter(s) in connection with each shelf takedown; 

(iii) furnish to Purchaser such number of copies of such Registration Statement, each amendment and supplement thereto,
each Prospectus (including each preliminary Prospectus and Prospectus supplement) and such other documents as Purchaser and any underwriter(s) may reasonably request in order to facilitate the disposition of the Registrable Common Stock,
provided, however, that the Company shall have no such obligation to furnish copies of a final prospectus if the conditions of Rule 172(c) under the Securities Act are satisfied by the Company; 

(iv) use its reasonable best efforts to register or qualify such Registrable Common Stock under such other securities or
blue sky laws of such jurisdictions (domestic or foreign) as Purchaser and any underwriter(s) reasonably requests and do any and all other acts and things that may be reasonably necessary or advisable to enable Purchaser and any underwriter(s) to
consummate the disposition in such jurisdictions of the Registrable Common Stock (provided, that the Company will not be required to (1) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify
but for this subparagraph (iv), (2) subject itself to taxation in any such jurisdiction or (3) consent to general service of process in any such jurisdiction); 

(v) notify Purchaser and any underwriter(s), at any time when a Prospectus relating thereto is required to be delivered
under the Securities Act, of the occurrence of any event as a result of which any Prospectus contains an untrue statement of a material fact or omits any material fact necessary to make the statements therein not misleading, and, at the request of
Purchaser or any underwriter(s), the Company shall prepare a supplement or amendment to such Prospectus so that, as thereafter supplemented and/or amended, such Prospectus shall not contain an untrue

  
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statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading; 

(vi) in the case of an underwritten offering, (i) enter into such customary agreements (including underwriting
agreements in customary form), (ii) take all such other actions as Purchaser or the underwriter(s) reasonably request in order to expedite or facilitate the disposition of such Registrable Common Stock (including, without limitation, causing
senior management and other Company personnel to cooperate with Purchaser and the underwriter(s) in connection with performing due diligence) and (iii) cause its counsel to issue opinions of counsel in form, substance and scope as are customary
in primary underwritten offerings, addressed and delivered to the underwriter(s) and Purchaser; 
 (vii) in
connection with each Demand Registration pursuant to Section 3 and each Fully Marketed Underwritten Offering requested by Purchaser under Section 2, cause there to occur Full Cooperation and, in all other cases, cause members of senior
management of the Company to be available to participate in, and to cooperate with the underwriter(s) in connection with customary marketing activities (including select conference calls and one-on-one meetings with prospective purchasers);

 (viii) make available for inspection by Purchaser, any underwriter participating in any disposition pursuant
to a Registration Statement, and any attorney, accountant or other agent retained by Purchaser or underwriter, all pertinent financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s
officers, directors, employees and independent accountants to supply all information reasonably requested by Purchaser, any underwriter, any attorney, any accountant or any agent in connection with such Registration Statement; 

(ix) use its reasonable best efforts to cause all such Registrable Common Stock to be listed on NASDAQ, or any exchange on
which securities of the same class issued by the Company are then listed or, if no such similar securities are then listed, on a national securities exchange selected by the Company and agreed to by Purchaser; 

(x) provide a transfer agent and registrar for all such Registrable Common Stock not later than the effective date of such
Registration Statement; 
 (xi) if requested, cause to be delivered, immediately prior to the pricing of any
underwritten offering, immediately prior to effectiveness of each Registration Statement (and, in the case of an underwritten offering, 

  
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at the time of closing of the sale of Registrable Common Stock pursuant thereto), letters from the Company’s independent registered public accountants addressed to Purchaser and each
underwriter, if any, stating that such accountants are independent public accountants within the meaning of the Securities Act and the applicable rules and regulations adopted by the SEC thereunder, and otherwise in customary form and covering such
financial and accounting matters as are customarily covered by letters of the independent registered public accountants delivered in connection with primary underwritten public offerings; 

(xii) make generally available to Purchaser and its Affiliates a consolidated earnings statement (which need not be
audited) for the 12 months beginning after the effective date of a Registration Statement as soon as reasonably practicable after the end of such period, which earnings statement shall satisfy the requirements of an earning statement under
Section 11(a) of the Securities Act; and 
 (xiii) promptly notify Purchaser and the underwriter or
underwriters, if any: 
 (1) when the Registration Statement, any pre-effective amendment, the Prospectus or any Prospectus
supplement or post-effective amendment to the Registration Statement has been filed and, with respect to the Registration Statement or any post-effective amendment, when the same has become effective; 

(2) of any written request by the SEC for amendments or supplements to the Registration Statement or any Prospectus or of any inquiry by
the SEC relating to the Registration Statement or the Company’s status as a well-known seasoned issuer; 
 (3) of the
notification to the Company by the SEC of its initiation of any proceeding with respect to the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement; and 

(4) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Common Stock
for sale under the applicable securities or blue sky laws of any jurisdiction. 
 (b) The Company represents and warrants that
no Registration Statement (including any amendments or supplements thereto and Prospectuses contained therein) 

  
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shall contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein not misleading (except that the
Company makes no representation or warranty with respect to information relating to Purchaser furnished to the Company by or on behalf of Purchaser specifically for use therein). 

(c) The Company shall make available to Purchaser (i) promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company, one copy of each Registration Statement and any amendment thereto, each preliminary Prospectus and Prospectus and each amendment or supplement thereto, each letter written by or on behalf of the Company to the SEC or
the staff of the SEC (or other governmental agency or self-regulatory body or other body having jurisdiction, including any domestic or foreign securities exchange), and each item of correspondence from the SEC or the staff of the SEC (or other
governmental agency or self-regulatory body or other body having jurisdiction, including any domestic or foreign securities exchange), in each case relating to such Registration Statement or to any of the documents incorporated by reference therein,
and (ii) such number of copies of each Prospectus, including a preliminary Prospectus, and all amendments and supplements thereto and such other documents as Purchaser or any underwriter may reasonably request in order to facilitate the
disposition of the Registrable Common Stock. The Company will promptly notify Purchaser of the effectiveness of each Registration Statement or any post-effective amendment or the filing of any supplement or amendment to such Shelf Registration
Statement or of any Prospectus supplement. The Company will promptly respond to any and all comments received from the SEC, with a view towards causing each Registration Statement or any amendment thereto to be declared effective by the SEC as soon
as practicable and shall file an acceleration request, if necessary, as soon as practicable following the resolution or clearance of all SEC comments or, if applicable, following notification by the SEC that any such Registration Statement or any
amendment thereto will not be subject to review. 
 (d) The Company may require Purchaser to furnish to the Company any other
information regarding Purchaser and the distribution of such securities as the Company reasonably determines, based on the advice of counsel, is required to be included in any Registration Statement. 

(e) Purchaser agrees that, upon notice from the Company of the happening of any event as a result of which the Prospectus included (or
deemed included) in such Registration Statement contains an untrue statement of a material fact or omits any material fact necessary to make the statements therein not misleading (a “Suspension Notice”), Purchaser will forthwith
discontinue disposition of Registrable Common Stock pursuant to such Registration Statement for a reasonable length of time not to exceed 10 days (45 days in the case of an event described in Section 3(d)) until Purchaser is advised in writing
by the Company that the use of the Prospectus may be resumed and is furnished with a supplemented or amended Prospectus as contemplated by Section 8(a) 

  
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hereof; provided, however, that such postponement of sales of Registrable Common Stock by Purchaser shall not exceed ninety (90) days in the aggregate in any 12 month period.
If the Company shall give Purchaser any Suspension Notice, the Company shall extend the period of time during which the Company is required to maintain the applicable Registration Statements effective pursuant to this Agreement by the number of days
during the period from and including the date of the giving of such Suspension Notice to and including the date Purchaser either is advised by the Company that the use of the Prospectus may be resumed or receives the copies of the supplemented or
amended Prospectus contemplated by Section 8(a) (a “Blackout Period”). In any event, the Company shall not be entitled to deliver more than a total of three (3) Suspension Notices or notices of any Delay Period in any
twelve (12)-month period. 
 (f) The Company shall not permit any officer, director, underwriter, broker or any other person
acting on behalf of the Company to use any free writing prospectus (as defined in Rule 405 under the Securities Act) in connection with any registration statement covering Registrable Common Stock, without the prior written consent of Purchaser and
any underwriter. 
  

	 	9.	Registration Expenses. 

(a) All expenses incident to the Company’s performance of or compliance with this Agreement, including, without limitation, all
registration and filing fees (including SEC registration fees and FINRA filing fees), fees and expenses of compliance with securities or blue sky laws, listing application fees, printing expenses, transfer agent’s and registrar’s fees,
cost of distributing Prospectuses in preliminary and final form as well as any supplements thereto, and fees and disbursements of counsel for the Company and all accountants and other Persons retained by the Company (all such expenses being herein
called “Registration Expenses”) (but not including any underwriting discounts or commissions or transfer taxes, if any, attributable to the sale of Registrable Common Stock), shall be borne by the Company. In addition, the Company
shall pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit or quarterly review, the expense of any liability
insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which they are to be listed. 
 (b) The Company shall pay, or shall reimburse Purchaser for, the reasonable fees and disbursements of one law firm chosen by Purchaser as its counsel in connection with each Registration Statement and
sale of Registrable Common Stock pursuant thereto. 
 (c) The obligation of the Company to bear the expenses described in
Section 9(a) and to pay or reimburse Purchaser for the expenses described in Section 9(b) shall 

  
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apply irrespective of whether any sales of Registrable Common Stock ultimately take place. 
  

	 	10.	Indemnification. 

 (a) The
Company shall indemnify, to the fullest extent permitted by law, Purchaser and its officers, directors, employees and Affiliates and each Person who controls Purchaser (within the meaning of the Securities Act) against all losses, claims, damages,
liabilities and expenses arising out of or based upon any untrue or alleged untrue statement of material fact contained in any Registration Statement, Prospectus, preliminary Prospectus or any “issuer free writing prospectus” (as defined
in Securities Act Rule 433) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading or any violation or alleged
violation by the Company of the Securities Act, the Exchange Act or applicable “blue sky” laws, except insofar as the same are made in reliance and in conformity with information relating to Purchaser furnished in writing to the Company by
Purchaser expressly for use therein. In connection with an underwritten offering, the Company shall indemnify such underwriter(s), their officers, employees and directors and each Person who controls such underwriter(s) (within the meaning of the
Securities Act) at least to the same extent as provided above with respect to the indemnification of Purchaser. 
 (b) In
connection with any Registration Statement in which Purchaser is participating, Purchaser shall furnish to the Company in writing such information as the Company reasonably determines, based on the advice of counsel, is required to be included in
any such Registration Statement or Prospectus and shall indemnify, to the fullest extent permitted by law, the Company, its officers, employees, directors, Affiliates, and each Person who controls the Company (within the meaning of the Securities
Act) against all losses, claims, damages, liabilities and expenses arising out of or based upon any untrue or alleged untrue statement of material fact contained in the Registration Statement, Prospectus or preliminary Prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that the same are made in reliance and in
conformity with information relating to Purchaser furnished in writing to the Company by Purchaser expressly for use therein. 

(c) Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim
with respect to which it seeks indemnification and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified
party without its consent (but such consent will not be 

  
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unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel
(in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party there may be one or more legal or equitable defenses available to such
indemnified party that are in addition to or may conflict with those available to another indemnified party with respect to such claim. Failure to give prompt written notice shall not release the indemnifying party from its obligations hereunder.

 (d) The indemnification provided for under this Agreement shall remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities. 

(e) If the indemnification provided for in or pursuant to this Section 10 is due in accordance with the terms hereof, but is held by
a court to be unavailable or unenforceable in respect of any losses, claims, damages, liabilities or expenses referred to herein, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified Person as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party
on the other in connection with the statements or omissions that result in such losses, claims, damages, liabilities or expenses as well as any other relevant equitable considerations. The relative fault of the indemnifying party on the one hand and
of the indemnified party on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party, and by such party’s relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. In no event shall the liability of Purchaser
be greater in amount than the amount of net proceeds received by Purchaser upon such sale. 
  

	 	11.	Rule 144. 

 The Company
covenants that it will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder, and it will take such further action as Purchaser may reasonably request to
make available adequate current public information with respect to the Company meeting the current public information requirements of Rule 144(c) under the Securities Act, to the extent required to enable Purchaser to sell Registrable Common Stock
without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (ii) any similar rule or regulation hereafter
adopted by the SEC. Upon the request of 

  
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Purchaser, the Company will deliver to Purchaser a written statement as to whether it has complied with such information and requirements. 

 

	 	12.	Transfer of Registration Rights. 

 (a) Purchaser may transfer all or any portion of its then-remaining rights under this Agreement to any transferee who acquires at least ten percent (10%) of the Stock Consideration (each, a
“transferee”). Any transfer of registration rights pursuant to this Section 12 shall be effective upon receipt by the Company of (x) written notice from Purchaser stating the name and address of any transferee and
identifying the amount of Registrable Common Stock with respect to which the rights under this Agreement are being transferred and the nature of the rights so transferred and (y) a written agreement from the transferee to be bound by all of the
terms of this Agreement. In connection with any such transfer, the term “Purchaser” as used in this Agreement shall, where appropriate to assign such rights to such transferee, be deemed to refer to the transferee holder of such
Registrable Common Stock. Purchaser and such transferees may exercise the registration rights hereunder in such proportion (not to exceed the then-remaining rights hereunder) as they shall agree among themselves. 

(b) After such transfer, Purchaser shall retain its rights under this Agreement with respect to all other Registrable
Common Stock owned by Purchaser. Upon the request of Purchaser, the Company shall execute a Registration Rights Agreement with such transferee or a proposed transferee substantially similar to the applicable sections of this Agreement. 

 

	 	13.	Conversion or Exchange of Other Securities. 

 If Purchaser offers Registrable Common Stock by forward sale, or any options, rights, warrants or other securities issued by it or any other person that are offered with, convertible into or exercisable
or exchangeable for any Registrable Common Stock, the Registrable Common Stock subject to such forward sale or underlying such options, rights, warrants or other securities shall be eligible for registration pursuant to Sections 2, 3 and 4 of this
Agreement. 
  

	 	14.	Miscellaneous. 

 (a)
Notices. All notices, requests, consents and other communications required or permitted hereunder shall be in writing and shall be hand delivered or mailed postage prepaid by registered or certified mail or by facsimile transmission (with
immediate telephone confirmation thereafter) and, in the case of Purchaser, shall also be sent via e-mail, 
  

	 	(a)	If to Purchaser to it at: 

  
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 North American Financial Holdings, Inc. 

4725 Piedmont Row Drive 
 Charlotte, North Carolina 28210 
 Attn: Christopher G. Marshall 

Telephone: 704-554-5901 
 Fax: 704-964-2442 
 with a copy to (which copy alone shall not constitute notice):

 Wachtell, Lipton, Rosen & Katz 
 51 West 52nd Street 
 New York, New York 10019 

Attn: David E. Shapiro 
 Telephone: (212) 403-1000 
 Fax: (212) 403-2000 

(b) If to the Company: 
 Capital Bank Corporation 
 333 Fayetteville Street, Suite 700 

Raleigh, North Carolina 27601 
 Attention: B. Grant Yarber, President 
 Telephone: (919) 645-3494 

Fax: (919) 645-6353 
 with a copy (which copy alone shall not constitute notice): 
 Smith, Anderson,
Blount, Dorsett, Mitchell & Jernigan, L.L.P. 
 150 Fayetteville Street, Suite 2500 

Raleigh, North Carolina 27601 
 Attention: Margaret N. Rosenfeld, Esq. 
 Telephone: (919) 821-6714

 Fax: (919) 821-6800. 
 or at such other address as such party each may specify by written notice to the others, and each such notice, request, consent and other communication shall for all purposes of the Agreement be treated
as being effective or having been given when delivered personally, upon one business day after being deposited with a courier if delivered by courier, upon receipt of facsimile confirmation if transmitted by facsimile, or, if sent by mail, at the
earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of United States mail, addressed and postage prepaid as aforesaid. 

  
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 (b) No Waivers. 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 thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by law. 
 (c) Successors and Assigns. The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. If the outstanding Common Stock is converted into or exchanged or substituted for other securities issued
by any other Person, as a condition to the effectiveness of the merger, consolidation, reclassification, share exchange or other transaction pursuant to which such conversion, exchange, substitution or other transaction takes place, such other
Person shall automatically become bound hereby with respect to such other securities constituting Registrable Common Stock and, if requested by Purchaser or a permitted transferee, shall further evidence such obligation by executing and delivering
to Purchaser and such transferee a written agreement to such effect in form and substance satisfactory to Purchaser. 
 (d)
Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. 

(e) Jurisdiction. The parties hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the
federal courts of the United States of America located in the State of Delaware, or, if jurisdiction in such federal courts is not available, the courts of the State of Delaware, for any actions, suits or proceedings arising out of or relating to
this Agreement and the transactions contemplated hereby, and each party hereby irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum. Without limiting the foregoing, each party agrees that service of process on such party as
provided in Section 14(a) shall be deemed effective service of process on such party. 
 (f) Waiver of Jury Trial.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

(g) Counterparts; Effectiveness. This Agreement may be executed in any number of counterparts (including by facsimile) and by
different parties hereto in separate counterparts, with the same effect as if all parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument.
This Agreement shall become effective when 

  
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each party hereto shall have received counterparts hereof signed by all of the other parties hereto. 
 (h) Entire Agreement. This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes and replaces all other prior agreements,
written or oral, among the parties hereto with respect to the subject matter hereof. 
 (i) Captions. The headings and
other captions in this Agreement are for convenience and reference only and shall not be used in interpreting, construing or enforcing any provision of this Agreement. 
 (j) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated 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 a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 
 (k) Amendments. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to or departures from the
provisions hereof may not be given, without the written consent of the Company and Purchaser. 
 (l) Aggregation of
Stock. All Registrable Common Stock held by or acquired by any Affiliated Persons will be aggregated together for the purpose of determining the availability of any rights under this Agreement. 

(m) Equitable Relief. The parties hereto agree that legal remedies may be inadequate to enforce the provisions of this Agreement
and that equitable relief, including specific performance and injunctive relief, may be used to enforce the provisions of this Agreement. 

  
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 IN WITNESS WHEREOF, this Registration Rights Agreement has been duly executed and
delivered by the duly authorized officers of the parties hereto as of the date first herein above written. 
  

					
	CAPITAL BANK CORPORATION
		
	By:	 	/s/ B. Grant Yarber
		 	Name:	 	B. Grant Yarber
		 	Title:	 	President & CEO
	
	NORTH AMERICAN FINANCIAL HOLDINGS, INC.
		
	By:	 	/s/ R. Eugene Taylor
		 	Name:	 	R. Eugene Taylor
		 	Title:	 	Chairman & CEO

 [Signature Page to Registration Rights Agreement] 

  
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