Document:

Form of voting agreement

 Exhibit 10.3 
 EXECUTION COPY 
 VOTING AGREEMENT

 THIS VOTING AGREEMENT (“Agreement”), dated as of March 30, 2010, is made by and between FHB
Formation LLC, a Delaware limited liability company (“Investor”), and the undersigned holder (the “Shareholder”) of shares of common stock, par value $1.00 per share, of Northeast Bancorp, a Maine corporation (the
“Company”). 
 WHEREAS, Investor and the Company have entered into an Agreement and Plan of Merger,
dated as of even date herewith (as such agreement may be subsequently amended or modified, the “Merger Agreement”), providing for the merger of Investor with and into the Company (the “Merger”); 
 WHEREAS, the Shareholder beneficially owns and has sole or shared voting power with respect to the number of shares of the
Company’s common stock, and holds stock options or other rights to acquire beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of the number of shares
of the Company’s common stock indicated opposite the Shareholder’s name on Schedule 1 attached hereto (together with any New Shares (defined in Section 2 below), the “Shares”); 
 WHEREAS, as an inducement and a condition to the willingness of Investor to enter into the Merger Agreement, and in consideration of
the substantial expenses incurred and to be incurred by Investor in connection therewith, the Shareholder has agreed to enter into and perform this Agreement; and 
 WHEREAS, all capitalized terms used in this Agreement without definition herein shall have the meanings ascribed to them in the Merger Agreement. 
 NOW, THEREFORE, in consideration of, and as a condition to, Investor entering into the Merger Agreement and proceeding with the
transactions contemplated thereby, and in consideration of the expenses incurred and to be incurred by Investor in connection therewith, the Shareholder and Investor agree as follows: 
 1. Agreement to Vote Shares. The Shareholder agrees that, prior to the Expiration Date (as defined in Section 2 below), at any
meeting of the shareholders of the Company or any adjournment or postponement thereof, or in connection with any written consent of the shareholders of the Company, with respect to the Merger, the Merger Agreement or any Acquisition Proposal, the
Shareholder shall: 
 (a) appear at such meeting or otherwise cause the Shares to be counted as present thereat
for purposes of calculating a quorum; and 
 (b) from and after the date hereof until the Expiration Date, vote
(or cause to be voted), or deliver a written consent (or cause a written consent to be delivered) covering all of the Shares that such Shareholder shall be entitled to so vote: (i) in favor of adoption and approval of the Merger Agreement and
all other transactions contemplated by the Merger Agreement as to which shareholders of the Company are called upon to vote or consent in favor of any matter necessary for consummation of the

 
Merger and the other transactions contemplated by the Merger Agreement; (ii) against any action or agreement that would reasonably be expected to result in a breach in any material respect
of any covenant, representation or warranty or any other obligation or agreement of the Company or any of its Subsidiaries or Affiliates under the Merger Agreement or that would reasonably be expected to result in any of the conditions to the
Company’s or any of its Subsidiaries or Affiliates’ obligations under the Merger Agreement not being fulfilled; and (iii) against any Acquisition Proposal, or any agreement, transaction or other matter that is intended to, or would
reasonably be expected to, impede, interfere with, delay, postpone, discourage or materially and adversely affect the consummation of the Merger and all other transactions contemplated by the Merger Agreement. The Shareholder shall not take or
commit or agree to take any action inconsistent with the foregoing. 
 2. Expiration Date. As used in this Agreement, the
term “Expiration Date” shall mean the earliest to occur of (a) the Effective Time, (b) such date and time as the Merger Agreement shall be terminated pursuant to Article VIII thereof, or (c) upon mutual written
agreement of the parties to terminate this Agreement. Upon termination or expiration of this Agreement, no party shall have any further obligations or liabilities under this Agreement; provided, however, such termination or expiration shall
not relieve any party from liability for any fraud, willful breach of this Agreement or acts of bad faith prior to termination hereof. 
 3. Additional Purchases. The Shareholder agrees that any shares of capital stock of the Company that the Shareholder purchases or with respect to which the Shareholder otherwise acquires beneficial ownership (as defined in
Rule 13d-3 under the Exchange Act) after the execution of this Agreement and prior to the Expiration Date, whether by the exercise of any stock options or otherwise (“New Shares”), shall be subject to the terms and conditions
of this Agreement to the same extent as if they constituted Shares as of the date hereof and the representation and warranties in Section 5 below shall be true and correct as of the date that beneficial ownership (as defined in Rule 13d-3
under the Exchange Act) of such New Shares is acquired. The Shareholder agrees to promptly notify Investor in writing of the nature and amount of any New Shares. 
 4. Agreement to Retain Shares. From and after the date hereof until the Expiration Date, the Shareholder shall not, directly or indirectly, (a) sell, assign, transfer, tender, or otherwise
dispose of (including, without limitation, by the creation of a Lien (as defined in Section 5(c) below)) any Shares, (b) deposit any Shares into a voting trust or enter into a voting agreement or similar arrangement with respect to such
Shares or grant any proxy or power of attorney with respect thereto, (c) enter into any contract, option, commitment or other arrangement or understanding with respect to the direct or indirect sale, transfer, assignment or other disposition of
(including, without limitation, by the creation of a Lien) any Shares, or (d) take any action that would make any representation or warranty of the Shareholder contained herein untrue or incorrect or have the effect of preventing or disabling
the Shareholder from performing the Shareholder’s obligations under this Agreement Notwithstanding the foregoing, the Shareholder may make (i) transfers by will or by operation of law or other transfers for estate planning purposes, in
which case this Agreement shall bind the transferee, and (ii) as Investor may otherwise agree in writing in its sole and absolute discretion. 
  

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 5. Representations and Warranties of the Shareholder. The Shareholder hereby
represents and warrants to Investor as follows: 
 (a) the Shareholder has the full power and authority to
execute and deliver this Agreement and to perform the Shareholder’s obligations hereunder; 
 (b) this
Agreement (assuming this Agreement constitutes a valid and binding agreement of Investor) has been duly executed and delivered by or on behalf of the Shareholder and constitutes a valid and binding agreement with respect to the Shareholder,
enforceable against the Shareholder in accordance with its terms, except as enforcement may be limited by general principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar laws affecting
creditors’ rights and remedies generally; 
 (c) the Shareholder beneficially owns the number of Shares
indicated opposite such Shareholder’s name on Schedule 1 free and clear of any liens, claims, charges or other encumbrances or restrictions of any kind whatsoever (“Liens”), and has sole or shared, and otherwise
unrestricted, voting power with respect to such Shares and none of the Shares are subject to any voting trust or other agreement, arrangement, or restriction with respect to the voting of the Shares, except as contemplated by this Agreement;

 (d) the execution and delivery of this Agreement by the Shareholder does not, and the performance by the
Shareholder of his obligations hereunder and the compliance by the Shareholder with any provisions hereof will not, violate or conflict with, result in a material breach of or constitute a default (or an event that with notice or lapse of time or
both would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien on any Shares pursuant to, any agreement, instrument, note, bond, mortgage,
contract, lease, license, permit or other obligation or any order, arbitration award, judgment or decree to which the Shareholder is a party or by which the Shareholder is bound, or any law, statute, rule or regulation to which the Shareholder is
subject or, in the event that the Shareholder is a corporation, partnership, trust or other entity, any bylaw or other organizational document of the Shareholder; and 
 (e) the execution and delivery of this Agreement by the Shareholder does not, and the performance of this Agreement by the
Shareholder does not and will not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority by the Shareholder except for applicable requirements, if any, of the Exchange
Act, and except where the failure to obtain such consents, approvals, authorizations or permits, or to make such filings or notifications, would not prevent or delay the performance by the Shareholder of his obligations under this Agreement in any
material respect. 
 6. Irrevocable Proxy. Subject to the last sentence of this Section 6, by execution of this
Agreement, the Shareholder does hereby appoint Investor with full power of substitution and resubstitution, as the Shareholder’s true and lawful attorney and irrevocable proxy, to the fullest extent of the Shareholder’s rights with respect
to the Shares, to vote, each of such Shares solely

  

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with respect to the matters set forth in Section 1 hereof. The Shareholder intends this proxy to be irrevocable and coupled with an interest hereunder until the Expiration Date and hereby
revokes any proxy previously granted by the Shareholder with respect to the Shares. Notwithstanding anything contained herein to the contrary, this irrevocable proxy shall automatically terminate upon the Expiration Date of this Agreement. The
Shareholder hereby revokes any proxies previously granted, and represents that none of such previously-granted proxies are irrevocable. 
 7. No Solicitation. From and after the date hereof until the Expiration Date, Shareholder shall not (a) solicit, initiate or knowingly encourage (including by way of furnishing non-public
information or other assistance), or take other action to facilitate, any inquiries or the making of any proposal that constitutes, or would reasonably be expected to lead to, an Acquisition Proposal, (b) participate in any discussions or
negotiations regarding, or that would reasonably be expected to lead to, an Acquisition Proposal, (c) enter into any agreement with respect to an Acquisition Proposal (other than the Merger Agreement), (d) solicit proxies, become a
“participant” in a “solicitation” or take any action to facilitate a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act) with respect to an Acquisition Proposal (other than the Merger
Agreement), (e) initiate a shareholders’ vote or action by consent of the Company’s shareholders with respect to an Acquisition Proposal, or (f) except by reason of this Agreement become a member of a “group” (as such
term is used in Rule 13d-5(b)(1) of the Exchange Act) with respect to any voting securities of the Company that takes any action in support of an Acquisition Proposal. 
 8. No Limitation on Discretion as Director or Fiduciary. Notwithstanding anything herein to the contrary, the covenants and
agreements set forth herein shall not prevent the Shareholder, (a) if the Shareholder is serving on the Board of Directors of the Company, from exercising his duties and obligations as a director of the Company or otherwise taking any action,
subject to the applicable provisions of the Merger Agreement, while acting in such capacity as a director of the Company, or (b) if the Shareholder is serving as a trustee or fiduciary of any ERISA plan or trust, from exercising his duties and
obligations as a trustee or fiduciary of such ERISA plan or trust. The Shareholder is executing this Agreement solely in his capacity as a shareholder. 
 9. Specific Enforcement. The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms hereof or was
otherwise breached. It is accordingly agreed that the parties shall be entitled to specific relief hereunder, including, without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to
enforce specifically the terms and provisions hereof, in any state or federal court in any competent jurisdiction, in addition to any other remedy to which they may be entitled at law or in equity. Any requirements for the securing or posting of any
bond with respect to any such remedy are hereby waived. 
 10. Further Assurances. The Shareholder shall, from time to
time, execute and deliver, or cause to be executed and delivered, such additional or further consents, documents and other instruments as Investor may reasonably request for the purpose of effectively carrying out the transactions contemplated by
this Agreement. 
  

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 11. Notice. All notices and other communications hereunder shall be in writing and
shall be deemed given if delivered personally or sent by overnight courier (providing proof of delivery) to Investor in accordance with Section 9.5 of the Merger Agreement and to each Shareholder at its address set forth on
Schedule 1 attached hereto (or at such other address for a party as shall be specified by like notice). 
 12.
Severability. If any term or other provision of this Agreement is determined to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect 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 that any term or other provision is invalid,
illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in an
acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 
 13. Binding
Effect and Assignment. All of the covenants and agreements contained in this Agreement shall be binding upon, and inure to the benefit of, the respective parties and their permitted successors, assigns, heirs, executors, administrators and other
legal representatives, as the case may be. This Agreement may not be assigned by any party hereto without the prior written consent of the other party hereto; provided, however, that, notwithstanding the foregoing, Investor may assign its
rights and obligations under this Agreement to any Subsidiary wholly owned by it. 
 14. No Waivers. No waivers of any
breach of this Agreement extended by Investor to the Shareholder shall be construed as a waiver of any rights or remedies of Investor with respect to any other shareholder of the Company who has executed an agreement substantially in the form of
this Agreement with respect to Shares held or subsequently held by such shareholder or with respect to any subsequent breach of the Shareholder or any other such shareholder of the Company. No waiver of any provisions hereof by either party shall be
deemed a waiver of any other provisions hereof by any such party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by such party. 
 15. Governing Law; Jurisdiction and Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without regard to its rules of conflict of laws.
The parties hereto hereby irrevocably and unconditionally consent to and submit to the exclusive jurisdiction of the courts of the State of Delaware and of the United States of America located in such state (the “Delaware Courts”)
for any litigation arising out of or relating to this Agreement and the transactions contemplated hereby (and agree not to commence any litigation relating thereto except in such courts), waive any objection to the laying of venue of any such
litigation in the Delaware Courts and agree not to plead or claim in any Delaware Court that such litigation brought therein has been brought in any inconvenient forum. 
 16. Waiver of Jury Trial. The parties hereto hereby waive any right to trial by jury with respect to any action or proceeding related to or arising out of this Agreement, any document executed in
connection herewith and the matters contemplated hereby and thereby. 
  

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 17. No Agreement Until Executed. Irrespective of negotiations among the parties or
the exchanging of drafts of this Agreement, this Agreement shall not constitute or be deemed to evidence a contract, agreement, arrangement or understanding between the parties hereto unless and until (a) the Board of Directors of the Company
has approved, for purposes of any applicable anti-takeover laws and regulations, and any applicable provision of the Company’s Articles of Incorporation, the transactions contemplated by the Merger Agreement, (b) the Merger Agreement is
executed by all parties thereto, and (c) this Agreement is executed by all parties hereto 
 18. Entire Agreement;
Amendment. This Agreement supersedes all prior agreements, written or oral, among the parties hereto with respect to the subject matter hereof and contains the entire agreement among the parties with respect to the subject matter hereof. This
Agreement may not be amended, supplemented or modified, and no provisions hereof may be modified or waived, except by an instrument in writing signed by each party hereto. 
 19. Effect of Headings. The section headings herein are for convenience only and shall not affect the construction of interpretation
of this Agreement. 
 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be
deemed an original but all of which together shall constitute one and the same instrument. 
 [Signature Page Follows Next]

  

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 EXECUTED as of the date first above written. 
  

			
	SHAREHOLDER
	
	  

	Name:	 	
	
	FHB FORMATION LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

 SCHEDULE 1 
  

					
	 Shareholder & Address
	 	 Shares
	 	 OptionsBank of Oak Ridge 2009 Semi-Annual Incentive Plan

 Exhibit 10(xvi) 
 BANK OF OAK RIDGE 
 2009 SEMI-ANNUAL INCENTIVE PLAN

 1. Purpose  
 The purpose of the Bank of Oak Ridge Annual Incentive Plan (the “Plan”) is to provide key employees of Bank of Oak Ridge (the “Bank”) with the opportunity to receive payments of
additional compensation distributed based upon the earnings of the Bank, and on the achievement of a broad set of corporate and/or individual objectives (the “Objectives”). The Plan provides an incentive to employees to enhance the size
and earnings of the Bank, within the constraints of safe, sound banking practices. 
 At the same time it must be emphasized
that the Plan in no way contravenes the importance of either long-term goal achievement or the proper exercise of appropriate management accountability. These goals and areas of accountability include, but are not limited to, the following items:

  

	 	1.	Collection, recovery, charge-off, and bankruptcy activity. 

  

	 	2.	Maintenance and increase in market share through salesmanship and customer service. 

  

	 	3.	Continued salesmanship (call programs) and improved customer service. 

  

	 	4.	Employee management and development (staff supervision, tracking and cross-training, employee turnover, etc.) 

  

	 	5.	Development of new and better ways of doing business. 

  

	 	6.	Appropriate audit and documentation procedures. 

  

	 	7.	Responsible management of fixed assets/resources. 

  

	 	8.	Adherence to all Bank policy and philosophy. 

  

	 	9.	Maintenance of the highest ethical standards. 

 It is anticipated that the limited amount of incentive potential available through the Plan, as compared to the size of salaries and incentives paid for performance of these long term management
accountabilities, in conjunction with the controls built into the performance measures in the Plan, will create the appropriate focus. The Board of Directors, through the Compensation Committee (the “Committee”), and the Chief Executive
Officer administers the plan. 
 At the Committee’s discretion funds may be used to pay discretionary bonuses. As an
example an employee with outstanding overall performance could receive a discretionary bonus in recognition of performance unaccounted for through the plan. It is understood that discretionary bonuses will be an exception as opposed to the rule.

 2. Effective Date and Plan Year  
 The Effective Date of the Plan shall be January 1, 2010. The Plan Year shall be the calendar year. 
 3. Eligibility  
 An individual shall be eligible to become a
Participant in the Plan who satisfied the following requirements: 
  

	 	a.	The individual is an employee of the Bank. For this purpose, an individual shall be considered to be an “employee” if there exists between the individual and
the Bank the legal and bona fide relationship of employer and employee. An individual shall be considered an employee if he/she is regularly scheduled to work at least 20 hours per week. 

  

	 	b.	The individual employees’ position is considered by the Committee to be “key” and to have a direct impact on the size and earnings of the Bank.

  

	 	c.	The individual is approved by the Compensation Committee as a Participant in the Plan. 

 4. Participation  
 Prior to the beginning of
each Plan Year, the Chief Executive Officer shall recommend to the Compensation Committee each individual or position eligible to become a Participant in the Plan (a “Participant”) with respect to such Plan Year. Participants shall be
approved by the Compensation Committee in its discretion. In the event of the promotion of an employee or the hiring of a new employee during the Plan Year, the Compensation Committee, upon the recommendation of the Chief Executive Officer, may
approve the entry of a Participant into the Plan Year. However, if the position has been previously approved, no such approval shall be required. In such case, the Incentive Award determined under Section 5 with respect to such Participant
shall be the percentage as determined by the Compensation Committee for the position multiplied by the individual’s job salary grade range mid-point during the period of time he or she was eligible to participate. However, in no event shall an
employee be a Participant for less than the full final three months of the Plan Year. Participation in the Plan shall be subject to the provisions of the Plan and such other terms and conditions, as the Compensation Committee shall provide.

  

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 5. Incentive Award  
 5.1 Subject to Section 5.2, each Participant for a Plan Year shall receive an Incentive Award determined by multiplying the percentage
achieved of each of the individual’s objectives (“key drivers”) by a weighting factor (positive or negative). A Potential Award is then multiplied by the sum of the weights derived. When no individual objectives related to a Plan Year
have been determined for a Participant, then the Participant’s objectives for the purpose of this Plan shall be the Corporate Objectives approved by the Committee at the beginning of such Plan Year. 
 For purposes of this section 5, the following definitions shall apply: 
 “Potential Award” means with respect to each Participant for the Plan Year a dollar amount determined by multiplying the
individual’s salary by a percentage designed by the Compensation Committee. The Potential Award represents the Incentive Award payable to the Participant in the event that Corporate and Participant’s personal objectives are achieved for
the Plan Year. In the event that no personal objectives are established for a Plan Year, the Potential Award represents the Incentive Award payable to the Participant in the event that all of the Corporate Objectives established at the beginning of
the Plan Year are fully achieved for the Plan Year. 
 “Adjusted Potential Award” is the pro-rata share of a pool
established by the sum of all participants’ Potential awards in the Plan year. The pool is accrued based upon the achievements of net income (pre-incentive, pretax) objectives established by the CEO and approved by the Compensation Committee.

 “Incentive Award” means by multiplying the actual cash value paid to the participant at the end of the Plan period,
determined by multiplying the percentage of each of the individual’s objectives (established by the Chief Executive Officer), by weighting factor (positive or negative) established by the Chief Executive Officer, and multiplying that by the
adjusted potential Award pro-rata as to salary. 
 5.2 Notwithstanding any other provision of this Plan, the Compensation
Committee shall review and approve the payment of the Incentive Award as determined under Section 5.1 and, in its discretion, may adjust the amount of the payment as it deems necessary to meet the purpose of this Plan and the best interest of
the Bank. In no event shall an Incentive Award be paid to a Participant who in the sole determination of the Compensation Committee has violated established policies and practices of the Bank as reflected in the minutes of the Board. Where
interpretations of achievement of objectives are inconsistent, the judgment of the Compensation Committee will prevail. 
 Individual objectives are not to be achieved at the expense of the overall Bank objectives or long-term objectives of any individual. For example, if an employee achieves individual objectives, but in so doing clearly creates unnecessary
strife among peers or subordinates, violates policy, avoids behaviors that develop business in the long term, or in any way ignores the best interest of the Bank, then no Incentive Award will be paid. 
 6. Termination of Employment during Plan Year  
 The Participant shall not receive an Incentive Award with respect to a Plan Year if, for reasons other than a Termination Event as defined in this Section 6, the employment of the Participant by the
Bank, or a Subsidiary, is terminated during the Plan Year or the duties of the position of the Participant are changed during the Plan Year so that he/she is no longer in a position as described in Section 3. The following shall each constitute
a “Termination Event”: 
  

	 	a.	Death of the Participant while employed by the Bank. 

  

	 	b.	Retirement of the Participant from the Bank with the approval of the Board. 

  

	 	c.	Disability of the Participant while employed by the Bank. For this purpose, the term “disability” shall mean the inability of a Participant, by reason of any
medically determinable physical or mental impairment which can be expected to result in death or to be of long continued or of indefinite duration, to perform his duties for the Bank. The determination of disability shall be made by the Compensation
Committee based on medical evidence from an independent physician selected by the Participant with the approval of the Compensation Committee; and, shall date from the original cessation of work. 

 In the event of a Termination Event, the Participant or his Beneficiary shall receive an Incentive Award with respect to such Plan Year
equal to the amount determined under Section 5 multiplied by a fraction, the numerator of which is the number of full calendar months during the Plan Year in which he was a Participant prior to the Termination Event and the denominator of which
is twelve. Participants in multiple selected positions, each determined to be a participant position should receive an amount reflecting the time-weighted service in each position. Participants departing a Participant position for a non-Participant
position, provided that such departure is not pursuant to poor performance, shall receive an award reflecting the period of the year in which they served. 
  

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 7. Leaves of Absence  
 In general, the determination of award for an individual who has taken a leave of absence during the Plan Year shall mirror the pro-rata
payout provisions of termination. However, the Compensation Committee, acting on behalf of the Board of Directors, shall in its sole discretion determine the amount of award in each case so as to preserve the intent of the Plan. 
 8. Payment of Incentive Awards  
 Unless otherwise determined by the Compensation Committee, the Incentive Award for a Plan Year shall be paid by the Bank in cash to the Participant or his Beneficiary by the later of
(i) March 15 following the end of the Plan Year, or (ii) thirty days following the determination of the actual financial results for the Plan Year and the final achievement of the Participant’s individual objectives (if
applicable). A Participant must be an employee on the day of payment in order to be eligible. 
 9. Nonassignability of
Incentive Awards  
 The right to receive payment of the Incentive Award shall not be assignable or transferable
(including by pledge or hypothecation) other than by will or the laws of intestate succession. 
 10. No Trust Fund:
Unsecured Interest  
 A Participant shall have no interest in any fund or specified asset of the Bank. No trust fund
shall be created in connection with the Plan or any Incentive Award, and there shall be no required funding of amounts, which may become payable under this Plan. Any amounts which are or may be set aside under the provisions of this Plan shall
continue for all purposes to be a part of the general assets of the Bank, and no person other than the Bank shall, by virtue of the provisions of this Plan, have any interest in such assets. No right to receive payment from the Bank pursuant to the
Plan shall be greater than the right of any unsecured creditor of the Bank. 
 11. No Right or Obligation of Continued
Employment  
 Nothing contained in the Plan shall require the Bank to continue to employ the Participant, nor shall the
Participant be required to remain in the employment of the Bank. 
 12. Withholding  
 There shall be deducted from the payment of the Incentive Award the amount of any tax or other amount required by any governmental authority
to be withheld and paid over by the Bank to such authority for the account of the person entitled to such payment. 
 13.
Retirement Plans  
 In no event shall any amounts accrued or payable under this Plan be treated as compensation for
the purpose of determining the amount of contributions or benefits to which a Participant shall be entitled under any retirement plan to which the Bank may be a party. Actual payments (as opposed to accruals) will be treated as compensation for
accruing benefits under all retirement/pension plans, if such plans include bonuses or incentives in their definition of compensation. 
 14. Dilution or Other Adjustments  
 If there is any change in the Bank because of a merger,
consolidation or reorganization involving the Bank, the Compensation Committee shall make such adjustments to any provisions of this Plan, as the Compensation Committee deems desirable to prevent the dilution or enlargement of rights granted
hereunder. 
 15. Administration of the Plan  
 The Plan shall be administered by the Chief Executive Officer of the Bank with the consent and approval of the Board; provided, that all
matters pertaining to the Incentive Award of the Chief Executive Officer shall be determined by the Compensation Committee. Subject to the provisions of the Plan, the Compensation Committee shall have plenary authority in its discretion, among other
things, to designate the Participants to receive Incentive Awards, to determine the Potential Award of each Participant, to interpret the Plan and to prescribe, amend and rescind rules and regulations relating to the Plan, provided that no member of
the Board shall take part in any action with respect to the decisions to pay an Incentive Award to such member, or with respect to the terms or conditions of any Incentive Award awarded to such member. 
 16. Amendment and Termination of the Plans  
 The Plan may be amended or terminated at any time by the Board. 
 17. Binding
on Successors  
 The obligations of the Bank under the Plan shall be binding upon any organization, which shall
succeed, to all or substantially all of the assets of the Bank, and the term “Bank,” whenever used in the Plan, shall mean and include any such organization after the succession. 
  

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 18. Applicable Law  
 The Plan shall be governed by and construed in accordance with the laws of the State of North Carolina 
  

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