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Exhibit 4b

DESCRIPTION OF FIRST BANCORP’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
General 

As of December 31, 2020, the Company had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: common stock, no par value per share.

Securities 

The authorized capital stock of the Company currently consists of 40,000,000 shares of common stock, no par value per share, and 5,000,000 shares of preferred stock, no par value per share. The outstanding shares of the Company's common stock are duly authorized, validly issued, fully paid, and nonassessable. 

Voting Rights 

All voting rights are vested in the holders of the common stock. Each holder of common stock is entitled to one vote per share on each matter submitted to a vote at a meeting of shareholders. With respect to the election of directors, holders of common stock may choose to elect directors by cumulative voting. If cumulative voting is in effect, each shareholder is entitled to multiply the number of votes he, she or it is entitled to cast by the number of directors for whom he, she or it is entitled to vote, and to cast the product for a single candidate or distribute the product among two or more candidates. Cumulative voting procedures will not be followed at an annual meeting unless a shareholder calls for cumulative voting as provided in the articles of incorporation, by announcing at the meeting before the voting for directors starts, his, her or its intention to vote cumulatively. 

Liquidation Rights 

Subject to the rights of the holders of any series of outstanding preferred stock, upon liquidation, holders of common stock will be entitled to receive on a pro rata basis, after payment or provision for payment of all debts and liabilities, all of the Company’s assets available for distribution, in cash or in kind. Because the Company is a bank holding company, its rights and the rights of its creditors and shareholders to receive the assets of any subsidiary upon liquidation or recapitalization may be subject to prior claims of its bank subsidiary’s creditors, except to the extent the Company may be deemed a creditor with recognized claims against its bank subsidiary. 

Dividends 

Subject to the rights of the holders of any series of outstanding preferred stock, all shares of the Company’s common stock are entitled to share equally in any dividends that the Board of Directors may declare on its common stock from sources legally available for distribution. 

Other Provisions 

Holders of common stock have no preemptive, subscription, redemption or conversion rights. The common stock is not subject to any sinking fund. 

Anti-Takeover Provisions 

Certain provisions of the articles of incorporation, bylaws and the North Carolina Business Corporation Act, as well as certain banking regulatory restrictions, may make it more difficult for someone to acquire control of the Company or to remove management. 

Advance Notice Provisions.  The bylaws of the Company provide that for business to be brought properly before an annual meeting by a shareholder, the shareholder must have given timely notice of the business in writing to the Secretary. To be timely, the notice must be delivered or mailed to and received at the principal offices of the Company not less than 60 days before the first anniversary of the mailing date of the proxy statement for the 

preceding year’s annual meeting. Notice of director nominations made by shareholders must be made in writing and received by the Secretary not less than 50 nor more than 75 days before the first anniversary of the date of the Company’s proxy statement in connection with the last meeting of shareholders called for the election of directors. The notices must set forth certain information described in the Company'’s bylaws. 

Special Meetings of Shareholders.  Under the bylaws, special meetings of shareholders may be called only by the Company's President, Chief Executive Officer or Board of Directors. So long as the Company is a public company, under North Carolina law, its shareholders are not entitled to call a special meeting. In addition, at a special meeting, its shareholders may only consider business related to the purposes of the meeting set forth in the notice of meeting. 

Regulatory Ownership Restrictions.  The Bank Holding Company Act of 1956, or “BHCA,” requires any “bank holding company,” as defined in the BHCA, to obtain the approval of the Board of Governors of the Federal Reserve System before acquiring 5% or more of the Company's common stock. Any person, other than a bank holding company, is required to obtain the approval of the Federal Reserve before acquiring 10% or more of the Company's common stock under the Change in Bank Control Act. Any holder of 25% or more of the Company's common stock, a holder of 33% or more of the Company’s total equity or a holder of 5% or more of the Company's common stock if such holder otherwise exercises a “controlling influence” over the Company, is subject to regulation as a bank holding company under the BHCA. 

Preferred Stock. The Company is authorized to issue 5,000,000 shares of preferred stock, issuable in specified series and having specified voting, dividend, conversion, liquidation, and other rights and preferences as the Company's Board of Directors may determine. Shares of preferred stock may be issued for any lawful corporate purpose without further action by the Company's shareholders. The issuance of any preferred stock that has conversion rights might have the effect of diluting the interests of the Company’s other shareholders. In addition, shares of preferred stock could be issued with certain rights, privileges, and preferences, which would deter a tender or exchange offer or discourage the acquisition of control of the Company. No shares of preferred stock are issued and outstanding. 

Transfer Agent and Registrar 

The transfer agent and registrar for the Company's common stock is Computershare Limited.Document

Exhibit 10.q

First Bancorp Annual Incentive Plan

February 24, 2015

Updated February 4, 2020

This is a summary of the First Bancorp Annual Incentive Plan and is not a formal legal document.

First Bancorp Annual Incentive Plan

Introduction

First Bancorp (“First Bancorp” or the “Bank”) is committed to rewarding key employees for their contributions to First Bancorp’s success. The First Bancorp Annual Incentive Plan (the “Plan”) is part of a total compensation package which may include base salary, annual incentives, long-term incentives and benefits. The Plan is designed to:

–Focus executives on building a strong foundation for success and long-term sustainability that will         enhance shareholder value.
–Communicate expectations in terms of business goals and results.
–Recognize and reward achievement of the Bank’s annual business goals.
–Motivate and reward Maximum performance.
–Attract and retain talent needed for First Bancorp’s success.
–Be competitive with the market.
–Encourage teamwork and collaboration.
–Ensure incentives are appropriately risk-balanced.

Effective Date and Plan Administrator

The Plan is effective January 1, 2015.   The Plan Administrator is the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”).   Participation and the aggregate amount of the payments to be awarded under this Plan are approved by the Committee Members.  The Committee shall make its determinations regarding eligibility, performance criteria, payouts and other terms and conditions typically within 90 days of the commencement of the performance period.  The Committee may delegate authority to appropriate officers, employees or agents of the Company to perform ministerial duties related to Plan administration, subject to compliance with applicable laws.

Performance Period / Plan Year

The Performance Period is January 1st through December 31st (the “Plan Year”), although the Committee shall have discretion to establish performance periods that are longer or shorter than the Plan Year.

Participation and Eligibility

The Chief Executive Officer (“CEO”) participates in the Plan unless the Committee deems otherwise.  The CEO recommends other participants for inclusion in the Plan.

Credit Quality and Regulatory Examinations

In the Committee’s discretion, awards will not be paid (or in the case of restricted stock, granted), regardless of performance, if 1) any regulatory agency issues a formal, written enforcement action, memorandum of understanding or other negative directive action (excluding MRAs) where the Committee considers it imprudent to provide awards under this Plan, and/or 2) after a review of the Company’s credit quality measures, the Committee considers it imprudent to provide awards under this plan.

Incentive Award Opportunities

Each Participant eligible for an award for a Performance Period will be assigned a target award, expressed as a percentage of the Participant’s annual salary as of December 31 of the Performance Period (the “Target Award”).   Based on market conditions and an assessment of the Company’s financial condition and anticipated performance, the Committee shall have the ability at the beginning of the Plan Year to reduce each participant’s Target Award for that Plan Year by a stated percentage, as deemed appropriate.

Participants that will receive a portion of their payout in restricted stock, as determined by the CEO, will be notified at the beginning of the period. The Committee will be provided a summary of participants receiving payouts as a combination of cash and stock.

Establishment of Performance Measures, Goals, Weightings and Definitions

The CEO recommends for approval by the Committee the performance measures, goals, weightings and definitions at the beginning of the Plan Year.  For purposes of this Plan, these terms have the following meanings:

Performance Measures – The criteria for which awards may be paid. Performance measures may be financial or non-financial.

Goals – Identifies the specific results required to achieve a certain level of performance.  Goals may be quantitative or qualitative.   For each performance measure, a threshold, target and Maximum goal is established.

–Threshold – is the minimum level of performance for which an award is paid. If performance is below threshold, the score for the goal is zero. Performance at threshold results in a payment equal to 50% of the targeted incentive opportunity
–Target – is the expected level of performance.  Performance at target results in a score for the goal equal to 100% of the targeted incentive opportunity.
–Maximum – is considered outstanding performance. Performance at Maximum results in a score for the goal equal to 150% of the participant’s targeted incentive opportunity, which is the highest amount to be paid under the Plan.

Weightings – Weightings are used to differentiate the relative importance/priority of the performance measures.  Each performance measure is weighted, and the total of all performance measures for a Plan Year equals 100%.

Definitions – Each performance measure is described at the beginning of the Plan Year. Qualitative measures should carry, at a minimum, a general description of the criteria which will be reviewed in order to make an assessment regarding performance.

Schedules detailing the Performance Measures, Goals and Weights, including those applicable to the NEOs, will be provided to the Committee for approval annually within 90 days of the Plan Year commencement. In addition, NEO participants and their payout options (cash and stock combination) will be presented to the Committee annually for approval.

Award Criteria
If the Bank meets or exceeds the award funding goals, award payouts are based on the participant achieving Bank and/or Branch/Department goals using a balanced scorecard.  The following provides an example of the scorecard:
																					
	

Performance Measure
		

Weight
		Threshold
(50% payout
	Target
(100% payout
	Maximum
(150% payout

	Bank Goal #1		x%		TBD	TBD	TBD
	Bank Goal #2		x%		TBD	TBD	TBD
	Branch/Department Goal #1		x%		TBD	TBD	TBD
	Branch/Department Goal #2		X%		TBD	TBD	TBD

Managers shall have the discretion to adjust payouts for Participants they oversee based on an assessment of relative performance.

Determination of Payout Level

Following the end of the applicable Performance Period, actual performance will be compared to the relevant Performance Measures and Goals.  Performance between Threshold and Target and Target and Maximum will be interpolated. A listing of actual performance levels of, and proposed award payments to, Participants will be available to the Committee for review. Payout information will be presented in summary format as deemed appropriate, except that the Committee shall review individual payouts for Named Executive Officers (as determined in accordance with securities laws).

Award Payouts

Awards will be paid within two and one half months following the end of the program year or otherwise in a manner intended to be exempt from, or in compliance with, Section 409A of the Code. Awards will be paid out as a percentage of a participant’s base earnings, modified as appropriate for manager discretionary adjustments.

Certain Participants may receive a portion of their award in restricted stock. In determining the number of shares granted, the Company will determine the dollar value to be awarded as restricted stock divided by the closing price on the grant date, rounded up to the closest share. These shares may be subject to vesting and other terms and conditions, which will be indicated in a separate award agreement.

Awards shall be subject to withholding for required income and other applicable taxes, and the Company’s obligation to pay such awards shall be subject to compliance with applicable withholding or other tax requirements.

The employee must be employed on a full or part-time basis at the date of payment or in the case of restricted stock, the date of the award. Participants who have an unsatisfactory performance rating at the time of payment are not eligible to receive an award.

Without Committee approval, the total amount of all award payouts shall not exceed the general ledger accrual on the company’s books and records. This may result in a proration of awards paid to all employees.

New Hires, Promotions, Transfers, Role Changes and Leave of Absence

New hires eligible for participation in year of hire will receive a pro-rated award based on the number of months worked during the Plan Year.

Participants that are promoted or change roles where the participant becomes eligible or ineligible for an award or experience a change in incentive opportunity will be paid out on a pro-rated basis using their status and the effective date of their eligibility for the Plan.   Award amounts will be calculated using the participant’s base earnings and the incentive target for the applicable period.

Participants that move from one branch to another will have their payout based the performance score of the branch they worked at for the majority of the year.

Participants that have an approved leave of absence are eligible to receive a pro-rated award calculated using their time in active status as permitted by the Family Medical Leave Act or other applicable state and federal laws and regulations.

Termination of Employment

To encourage retention, a participant must be an active employee of the Bank on the payment date to receive an award or in the case of restricted stock, the date of the award. Please see below for exceptions in the event of death, disability and retirement.   Participants who terminate employment prior to the payment date will not be eligible to receive an award.

Death and Disability

If a participant ceases to be employed by the Bank due to disability as defined under the Bank’s long-term disability program, his/her incentive award for the Plan Year will be paid in cash and pro-rated to the date of termination.

In the event of death, the Bank will pay to the participant’s estate in cash the pro rata portion of award that had been earned by the participant during his/her period of employment.

Plan Documentation

Each participant will receive documentation at the beginning of the Plan Year indicating their specific performance measures, weightings and goals for the Plan Year.   This Plan Summary is available to all participants at any time upon request.

Administration

The Program is authorized by First Bancorp’s Board of Directors and administered by the Committee.  To ensure proper alignment with the Company’s business objectives, the Program will be reviewed periodically by the Committee.  First Bancorp’s Board of Directors has the authority to amend the Program but the Committee has the authority to determine awards and performance measures under the Program, to interpret the Program and to make or nullify any rules and procedures, as necessary, for proper administration of the Program.   Any determination by the Committee will be final and binding on all participants.

Plan Changes or Discontinuance

First Bancorp has developed the Plan on the basis of existing business, market and economic conditions; current services; and staff assignments. If substantial changes occur that affect these conditions, services, assignments, or forecasts, the Committee may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time.  Examples of substantial changes may include mergers, dispositions or other corporate transactions, changes in laws or accounting principles or other events that would in the absence of some adjustment, frustrate the intended operation of this arrangement.

The Committee may, at its sole discretion, waive, change or amend the Plan as it deems appropriate.

No Entitlement to Incentive Compensation

Each Plan participant is eligible for a distribution under the Plan only upon attainment of certain performance objectives defined under the Plan and after the approval by the Participant’s manager and approval of the award by the Committee.

Participants Rights not Assignable; No Right to Participate

Any participant awards shall not be subject to assignment, pledge or other disposition, nor shall such amounts be subject to garnishment, attachment, transfer by operation of law, or any legal process. Nothing contained in this Plan shall confer upon any employee any right to continued employment, nor does the Plan affect the right of First Bancorp to terminate a Plan participant’s employment. Participation 

in the Plan does not confer rights to participation in other Bank plans, including annual or long-term incentive plans, non- qualified retirement or deferred compensation plans or other perquisite plans.

Recoupment in the Event of Accounting Restatements (Clawback)

Participants may be subject to a clawback policy.  Participants who are determined to be subject to the clawback policy will be notified in writing.

If the Bank is required to restate its financial statements for any reporting period due to any misstatement or omission of material fact, any failure to report its financial condition or financial results in accordance with GAAP in any material respect, or any requirement of federal law or regulation, each Participant shall, unless otherwise determined in the sole discretion of the Committee, reimburse the Bank upon receipt of written notification for any portion of an award payment resulting from the circumstance requiring such restatement.  In calculating such amount, the Committee shall compare the calculation of the amount of award payment based on the restated financial statements to the amount of award payment based on the financial statements that were required to be restated. The Company has the right to modify a Participant’s future incentive payments or cancel unvested restricted stock awards should repayment by the Participant not occur.

Risk Mitigation

First Bancorp seeks to appropriately balance risk with financial rewards in the Plan design and implementation. The compensation arrangements in this Plan are designed to be sufficient to incent participants to achieve approved strategic and tactical goals while at the same time not be excessive or lead to material financial loss to the Bank.  As stated in the Credit Quality and Regulatory Examinations section above, in the Committee’s discretion, awards will not be paid (or in the case of restricted stock, granted), regardless of performance, if 1) any regulatory agency issues a formal, written enforcement action, memorandum of understanding or other negative directive action (excluding MRAs) where the Committee considers it imprudent to provide awards under this Plan, and/or 2) after a review of the Company’s credit quality measures, the Committee considers it imprudent to provide awards under this plan.

Ethics and Interpretation

If there is any ambiguity as to the meaning of any terms or provisions of this Plan or any questions as to the correct interpretation of any information contained therein, the Bank's interpretation expressed by the Committee will be final and binding.

The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards, will subject the employee to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by this Plan to which the employee would otherwise be entitled will be revoked or if paid, be obligated to repay any incentive award earned during the award period in which the wrongful conduct occurred regardless of employment status.

Severability

Each provision in this Plan is severable, and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby.

Section 409A

This Plan is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith.  Any payments described in the 

Plan that are due within the “short-term deferral period” as defined in Section 409A shall not be treated as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following “Specified Employee’s” “Separation from Service” (as those terms are defined in Section 409A) shall instead be paid on the first payroll date after the six-month anniversary of such Specified Employee’s Separation from Service (or death, if either). Notwithstanding the foregoing, the Bank shall have no obligation to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section 409A, nor will the Bank have any liability to any Participant for such tax or penalty.

Choice of Law

The Plan and the transactions and payments described herein shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the state of North Carolina, except to the extent preempted by federal law.

Plan Approval

IN WITNESS WHEREOF, the parties have executed and approved the Plan effective as of February 4, 2020.

/s/ Richard H. Moore

Chief Executive Officer

/s/ James C. Crawford, III

Chair, Compensation Committee

This Plan is proprietary and confidential to First Bancorp and its employees and should not be shared outside the organization other than as required by executive compensation reporting and disclosure requirements.

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