Document:

Change in Control Agreement

 Exhibit 10.6 
 AMENDMENT NO. 1 TO AGREEMENT 
 THIS AMENDMENT NO. 1 TO
AGREEMENT (the “Agreement”) is made and entered into on this 24th day of October, 2002 (the “Effective Date”), by and between North State Bank, a North Carolina banking corporation (the “Bank”) and Sandra A. Temple
(“Executive”). 
 WITNESSETH: 
 WHEREAS, the Bank and Executive entered into that certain Agreement dated as of June 1, 2000 (the “Agreement”); 
 WHEREAS, capitalized terms used in this First Amendment shall have the same meaning as assigned to them in the Agreement; 
 WHEREAS, the Bank and Executive agree that Section 7(e) of the Agreement contained a mutual mistake and that neither party hereto
intended the benefits described in Section 7(e) of the Agreement to continue until Executive’s Retirement (as defined in the Agreement) or beyond the date that Executive began receiving comparable benefit coverage with a new employer;

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

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

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

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

			
	 NORTH STATE BANK:

		
	BY:	 	 /s/ LARRY D. BARBOUR

		 	Larry D. Barbour
		 	President and Chief Executive Officer
	
	EXECUTIVE:
		
		 	 /s/ SANDRA TEMPLE

		 	Sandra Temple

  

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

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

  

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

  

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

  

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

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

  

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

  

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

  

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

  

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

  

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

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

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

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

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

  

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

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

	 	(a)	Termination by the Bank, unless Executive’s termination is due to (i) Cause; (ii) Executive’s death or Total and Permanent Disability;
(iii) Executive’s Retirement; or (iv) Executive’s attainment of normal Retirement as provided under any Bank retirement plan in effect immediately preceding such date or the attainment; or 

  

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

  

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

  

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

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

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

  

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

  

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

  

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

  

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

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

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

  

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

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

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

			
	 NORTH STATE BANK:
  
  

	BY:	 	 
		 	Larry D. Barbour
		 	President and Chief Executive Officer

  

	
	 EXECUTIVE:
  
  

	Sandra A. Temple

  

 7Employment Agreement

 Exhibit 10.19 
 Portions of this exhibit marked [*] are requested to be treated confidentially. 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is made and entered into on this 12th day of February, 2010, by and between North State Bank (hereinafter referred to as the “Bank”) and J. Kenneth Sykes (hereinafter referred to as “Employee”). 

WITNESSETH THAT: 
 WHEREAS, immediately prior to entering into this Agreement, Employee was the sole member of and employed by Affiliated Mortgage, L.L.C. (“Affilated”); 
 WHEREAS, the Bank and Affiliated are entering into an Asset Purchase Agreement of even date herewith (the “Purchase Agreement”), pursuant to which the Bank will acquire substantially all of
Affiliated’s assets; 
 WHEREAS, immediately following the execution of the Purchase Agreement, Employee’s employment
with Affiliated will terminate, and Employee will be employed by the Bank under the terms and conditions described in this Agreement; 
 NOW, THEREFORE, for and in consideration of the premises and the following covenants, the parties do hereby mutually agree: 
 1. EMPLOYMENT; DUTIES. The Bank agrees to employ Employee as its President of North State Bank Mortgage Division, reporting to the Chief Financial Officer, and Employee hereby accepts employment in such position. During employment
with the Bank, Employee will faithfully discharge his responsibilities and perform all duties as are generally performed by the owner-operator of a similarly-situated entity, including any additional duties, if any, as are reasonably prescribed to
him from time to time by his superiors; provided however, in no event shall Employee routinely be required to perform any duties which are not consistent with his position as an executive officer of a mortgage company. In addition Employee will not
be required to relocate his office to perform services under this Agreement other than to one of Bank’s existing facilities in Wake County, North Carolina. Employee will fulfill his duties and responsibilities in a reasonable and appropriate
manner in compliance with the Bank’s policies and practices and the laws and regulations that apply to the Bank’s operation and administration. Employee will devote his full business time and attention to the business and affairs of the
Bank. 
 2. COMPENSATION. While employed by the Bank, Employee’s compensation will be determined and paid as
follows: 
 (a) Base Salary. While Employee is employed by the Bank, the Bank will pay Employee as compensation a minimum
annual base salary of Seventy Five Thousand Dollars ($75,000.00). Employee will be entitled to regular salary reviews during the term of this Agreement and will be eligible to be considered for periodic raises in the same general manner as other
officers of the Bank. The base salary payable to Employee by the Bank, as adjusted, if applicable, will be referred to in this Agreement as the “Base Salary.” The Base Salary and any

 
other compensation paid to Employee pursuant to this Agreement or otherwise will be paid to Employee less any federal, state and local payroll taxes and other withholdings legally required or
properly requested by Employee, on the Bank’s regularly scheduled paydays in accordance with the Bank’s payroll practices and procedures. 
 (b) Commissions. During employment with the Bank, Employee will be eligible to receive a commission of [*] ([*]) basis points on his personal mortgage loan production and on third party production
for closed mortgage loans (“Commissions”). Commissions are calculated on a monthly basis. Commissions will be paid on the Bank’s next regular pay day after Commissions are calculable. Upon termination of employment by either party for
any reason whatsoever, Employee will be entitled to payment of Commissions on his personal mortgage loan production and on third party production only to the extent such mortgage loans have closed on or before the period ending thirty (30) days
after Employee’s termination date. 
 (c) Incentive Compensation. In addition to Commissions, during the Incentive
Period (as defined below), the Bank will also pay Employee [*] Dollars ($[*]) (less any withholdings required by law or requested by Employee) for each loan closed by the mortgage division of the Bank (the “Incentive Compensation”). The
Incentive Compensation will continue until the first of the following occurs (the “Incentive Period”): (1) the expiration of five (5) years from the date of Employee’s hire with the Bank; (2) the Bank has paid Employee
$1.25 Million Dollars in gross Incentive Compensation; or (3) Employee’s employment relationship with the Bank terminates at any time, for any reason. Incentive Compensation is calculated on a quarterly basis. Incentive Compensation will
be paid on the Bank’s next regular pay day after Incentive Compensation is calculated at the end of each calendar quarter and Bank agrees to provide Employee with any information as may be reasonably necessary to determine or confirm the
calculation of such Incentive Compensation. 
 (d) Benefits. Subject to applicable eligibility requirements, while
employed by the Bank, Employee will be entitled to participate in any employee benefit plans or programs as are provided from time to time to other similarly-situated employees of the Bank pursuant to the Bank’s policies and procedures. Nothing
in this Agreement will be deemed to alter the Bank’s rights to modify or terminate any such plans or programs in its sole discretion. 
 (e) Business Expenses. The Bank will reimburse Employee for all reasonable and appropriate business expenses he incurs in connection with performing his duties for the Bank; provided,
however, that Employee agrees to comply with the Bank’s policies and procedures for reimbursement or advancement of business expenses established by the Bank from time to time. 
 (f) Vacation. Employee will be entitled to accrue paid vacation time during each calendar year in accordance with the Bank’s
vacation policy. Employee’s paid vacation time is to be taken at such times as may be reasonably approved by the Bank. 
 [*]
Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

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 3. TERM. This Agreement shall commence on the date first above written, and shall
remain in full force for a period of six (6) years thereafter. 
 4. TERMINATION. Either party to this Agreement may
terminate the employment relationship between the Bank and Employee at any time, and the parties agree Employee’s employment relationship with the Bank is terminable at the will of either party. In addition nothing in this Agreement shall be
read as obligating the Bank to make any payment other than Accrued Compensation (as defined below) through the Employee’s termination date. 
 5. OBLIGATIONS UPON TERMINATION. 
 (a) Accrued Compensation. In the
event of termination of Employee’s employment with the Bank at any time, by either party, for any reason whatsoever, the Bank will pay Employee for all of the following, through the termination date: (a) all accrued, unpaid Base Salary,
Commissions and/or Incentive Compensation then due and owing to Employee; (b) all accrued, unused vacation time provided such payment is required by the Bank’s vacation policy as it is then in effect; and (c) reimbursement of any
accrued, unpaid business expenses that are timely submitted by Employee and are otherwise in compliance with the Bank’s business expense reimbursement policy as it is then in effect (collectively, such amounts are referred to in this Agreement
as the “Accrued Compensation”). In the event that Employee’s employment with the Bank is terminated for any reason whatsoever or is terminated by the Bank for any reason whatsoever other than death or disability, then the Bank will
pay Employee for his Accrued Compensation only. 
 6. CONFIDENTIALITY; NONDISCLOSURE. 
 (a) Definition. Employee acknowledges and agrees that due to his position with the Bank, Employee will have access to certain
confidential information, trade secrets and other proprietary information belonging to the Bank. For purposes of this Agreement, “Confidential Information” means: (i) any information that the Bank possesses that has been created,
discovered or developed by or for the Bank, including that information developed by Employee pursuant to this Agreement or in connection with his employment with or service to the Bank, or that has otherwise been made known to the Bank, and that has
or could have commercial value or utility in the business in which the Bank is engaged; or (ii) any information that is related to the business of the Bank and is generally not known by non-Bank personnel. By way of illustration, but not
limitation, Confidential Information includes all sales information, product information, profit information, customer information, prospect information, financial information, budgets, projections, know-how, trade secrets, marketing plans,
strategies, licenses, prices, and/or costs. Any trade secrets of the Bank and its affiliates shall be entitled to all of the protections and benefits under the North Carolina Trade Secrets Protection Act, N.C. Gen. Stat. § 66-152 et
seq., and any other applicable law. If any information that the Bank or any of its affiliates deems to be a trade secret is found by a court of competent jurisdiction not to be a trade secret, such information will, nevertheless, be considered
Confidential Information for purposes of this Agreement. Employee hereby waives any requirement that the Bank or its affiliates submit proof of the economic value of any trade secret or post a bond or other security. 
  

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 (b) Exclusions. Notwithstanding the foregoing, the term Confidential Information
shall not include: (i) any information that is or becomes generally available to the public other than as a result of a breach of this Agreement, or any other agreement requiring confidentiality between the Bank and Employee; (ii) any
information, the disclosure of which is required by law or court order, provided that Employee gives the Bank as much prior written notice of any such disclosure as possible and takes all necessary action or assists Bank in taking all necessary
action, in either case at the Bank’s expense, to minimize the extent of any such disclosure; (iii) any information whose disclosure is made with the prior written consent of the Bank; and/or (iv) any information as may be reasonably
necessary to determine or confirm the calculation of the Incentive Compensation under Section 2(c). 
 (c)
Nondisclosure/Non-use. Employee agrees that he will hold in trust and confidence all Confidential Information and will not disclose to others, directly or indirectly, any Confidential Information or anything relating to such information
without the prior written consent of the Bank, except as may be necessary in the course of Employee’s employment with the Bank. Employee further agrees that he will not use any Confidential Information without the prior written consent of the
Bank, except as may be necessary in the course of performing his duties for the Bank, and that the provisions of this Section 6(c) shall survive termination of this Agreement by either party for any reason. 
 (d) Return of Documents. Employee will promptly return any files, customer files, notes, formulae, programs, data, records, machines
or any other documents or items that in any manner contain or constitute Confidential Information, along with any reproductions or copies, to the Bank upon the Bank’s demand or upon termination of Employee’s employment with the Bank by
either party for any reason. 
 7. RESTRICTIVE COVENANTS. By signing this Agreement, Employee specifically agrees and
acknowledges that before entering into this Agreement, Employee had no employment relationship with the Bank and that the Bank’s promise of new employment to Employee, in addition to any other consideration provided to Employee by the Bank, is
adequate consideration to support Employee’s promise not to engage in the activities described in this Section 7. During the period (the “Restricted Employment Period”) beginning on the date of this Agreement and ending on the
date [*] ([*]) months after the termination of Employee’s employment with the Bank by Employee for any reason, Employee agrees not to: 
 (a) on Employee’s own behalf, or on behalf of any third party individual or entity other than the Bank, compete with the Bank by engaging in the Restricted Business (as defined below) within the
Restricted Territory (as defined below); and/or 
 (b) on Employee’s own behalf, or on behalf of any third party individual
or entity other than the Bank, have any direct or indirect ownership or financial interest in any business venture or entity that is engaged or proposes to be engaged in the Restricted Business 
 [*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

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 within the Restricted Territory, including without limitation, as an individual, partner, officer, director,
principal or shareholder (other than as a shareholder of a publicly-owned corporation in which Employee owns less than 2% of the outstanding shares of such corporation). 
 During the period (the “Restricted Solicitation Period”) beginning on the date of this Agreement and ending on the date [*] ([*]) months after the termination of Employee’s employment with
the Bank by either party for any reason (unless the termination is a Termination Other Than for Cause), Employee agrees not to: 
 (c) on Employee’s own behalf, or on behalf of any third party individual or entity other than the Bank, directly or indirectly initiate contact with, solicit, entice or attempt to entice in any manner, for purposes that would be
competitive with the Bank or any of its affiliates (i) the business of any of the existing customers or clients of the Bank with whom Employee had business contacts on the Bank’s behalf during the last twelve (12) months of his
employment with the Bank, and/or (ii) the business of any prospective customers or clients to whom Employee submitted any written proposals on behalf of the Bank during the last twelve (12) months of his employment with the Bank; and/or

 (d) on Employee’s own behalf, or on behalf of any third party individual or entity other than the Bank, directly or
indirectly initiate contact with, solicit, entice or attempt to entice in any form, fashion or manner any employee or service provider of the Bank (who is then employed or engaged by the Bank or who was employed or engaged by the Bank in the prior
six (6) months) for the purpose of inducing that person to either be employed or engaged by a third party or to terminate his employment or engagement with the Bank. 
 For purposes of this Agreement, the following definitions apply. The “Restricted Business” is any bank or other business venture or entity that engages in whole or in part in the business of
residential mortgage lending. The “Restricted Territory” covers the following geographic areas: (A) Wake, Orange, Durham, Franklin and Johnston Counties, North Carolina; and/or (B) any other county in North Carolina in which
Employee was employed during employment with the Bank. If any court should construe the foregoing geographic scope to be too broad to permit enforcement to its fullest extent, then such restrictions shall be enforced to the maximum extent that such
court finds reasonable and enforceable. 
 The parties agree that the geographic areas and the other restrictions set forth in
this Section 7 are reasonable and completely severable and independent, and any invalidity or unenforceability of this Agreement with respect to any one area or restriction shall not render any other provision of this Agreement unenforceable.
If any court should construe the geographic areas and the other restrictions set forth above to be too broad to permit enforcement to its fullest extent, then such restrictions shall be enforced to the maximum extent that such court finds reasonable
and enforceable. 
 [*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

 5 

 Employee acknowledges that the Bank and its affiliates shall have no adequate means of
protecting their rights under this Section 7 other than by securing an injunction (a court order prohibiting the Employee from violating this Section 7). Accordingly, Employee agrees that the Bank and its affiliates are entitled to enforce
this Section 7 by obtaining a preliminary and permanent injunction and any other appropriate equitable relief. Nothing contained in this Agreement shall prohibit the Bank or any of its affiliates from pursuing any remedies in addition to
injunctive relief, including recovery of damages. 
 Notwithstanding anything to the contrary in this Agreement, the Bank
acknowledges that the restrictions set forth in Sections 7(a) and 7(b) shall not apply in the event Bank terminates Employee for any reason, and in such event, Employee shall not be subject to the restrictions of Sections 7(a) and 7(b) on the
business activities available to him. 
 For purposes of this Agreement, the following definitions apply: “Termination
Other than For Cause” means termination by the Bank of Employee’s employment by Bank for reasons other than those which constitute Termination for Cause, including for Employee’s Disability. “Termination for Cause” means
termination by Bank of Employee’s employment due to Employee’s: (i) intentional failure or refusal to perform his duties for the Bank; (ii) breach of a material obligation of Sections 6 or 7 of this Agreement;
(ii) malfeasance of office or disloyalty to the Bank; (iii) conviction or or plea of guilty or no contest to either a felony or an unlawful act involving fraud or moral turpitude; and/or (iv) removal of Employee by federal or state
regulators following a takeover of the Bank by such regulators. “Disability” means, with respect to the Employee, that Employee: (i) has established to the satisfaction of the Bank that he is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than six months; and (ii) has satisfied any requirement imposed by the Bank in regard to
evidence of such disability. 
 8. EMPLOYEE REPRESENTATIONS AND WARRANTIES. Employee hereby represents and warrants to
the Bank as follows: 
 (a) Employee has the full right, power and authority to execute and deliver this Agreement and to
perform all of Employee’s obligations hereunder. 
 (b) This Agreement constitutes the legal, valid and binding obligation
of Employee and is enforceable against Employee in accordance with its terms. 
 (c) Neither Employee’s execution and
delivery of this Agreement, Employee’s consummation of the transactions contemplated hereby, nor the compliance by Employee with any of the provisions hereof, will constitute a breach, default or violation of applicable law or any agreement or
other instrument or obligation to which Employee is a party or is otherwise bound. Employee further represents that Employee will not knowingly disclose to the Bank or induce the Bank to use any confidential or proprietary information or material
belonging to any third party. 
  

 6 

 9. NOTICES. Any notice required to be given hereunder will be sufficient if in
writing and hand delivered or sent by certified or registered mail, return receipt requested, first-class postage prepaid, in the case of Employee, to his address shown on the Bank’s records, and in the case of the Bank, to its principal
office. 
 10. WAIVER. No waiver of any provision of this Agreement will be valid unless the same is in writing and
signed by the party against whom such waiver is sought to be enforced. Failure to insist upon strict compliance with any of the terms, covenants or conditions hereof will not be deemed a waiver of such terms, covenants or conditions, nor will any
waiver or relinquishment of any right or power granted hereunder at any particular time be deemed a waiver or relinquishment of such rights or power at any other time or times. 
 11. MISCELLANEOUS. This Agreement constitutes the entire Agreement between the parties with regard to the subject matter hereof
(i.e., Employee’s employment at the Bank) and supersedes all memoranda, discussion, correspondence and agreements prior to the date of execution of this Agreement regarding such subject matter. This Agreement shall be binding on the
heirs, executors, administrators, successors and assigns of the parties. This Agreement is to be governed by the laws of the state of North Carolina. The state or federal courts in Wake County, North Carolina will have the sole and exclusive power
to adjudicate any disputes between the parties arising out of or related to this Agreement, and the parties hereto irrevocably consent to the personal jurisdiction of such courts over them. The paragraphs, subparagraphs and provisions of this
Agreement are all separable, and if any part of this Agreement shall be held invalid or unenforceable, it shall not affect the validity of this Agreement as a whole or other remaining parts thereof. This Agreement may not be changed orally, but may
be modified only by written agreement of both parties to this Agreement. 
 [Signature pages follow.] 
  

 7 

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

			
	 NORTH STATE BANK:
  
  

	By:	 	 /s/ Larry D. Barbour

		 	Larry D. Barbour
		 	President and Chief Executive Officer
	
	 EMPLOYEE:
  
 /s/ J. Kenneth Sykes

	  
 J. Kenneth Sykes

  

 8

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