Document:

Employment Agreement between the Company and Avinash Salelkar

 Exhibit 10.21 
 Terms and Conditions: 
 1.0 WORK RELATED 

1.1 You will devote full time to the work of SYNTEL Ltd. (herein referred as SL), and shall not undertake any direct / indirect business /
work / assignment etc. even on part-time basis whether for any consideration or not, save with the prior written permission from the Company. 

1.2 You will use your best efforts in the performance of employment duties assigned to you from time to time and to, at all times, act in good
faith and in the best interests of SL, you will comply with all rules, regulations and procedures established by SL. 
 1.3 You will
retire from the SL’s services on reaching the age of 60 yrs or earlier if found medically unfit. The age or date of birth already given by you in your application form would be treated a binding and final. The actual date of retirement
shall be the last date of the calendar month in which you were born. 
 2.0 SOFTWARE RELATED 

You are strictly prohibited from bringing any unauthorized / infringed copies of software in the office premises, from any external sources or copying
software from one computer system to another which may include any violation of the provisions of the Copyrights Act. Non-compliance of this rule will be regarded as a serious offense and you will be subjected to appropriate disciplinary action.

 3.0 INTELLECTUAL PROPERTY RIGHTS 
 3.1 You will agree to inform SL of full details of all your inventions, discoveries, concepts and ideas (collectively called “Developments”), whether patentable or not, including
but not limited to, hardware and apparatus, products, processes and methods, formulae, computer programs and techniques, as well as any improvements and related knowledge, which you conceive, improve, complete, or put in to practice (whether alone
or jointly with others) while you continue in the employment of SL; and which relate to the present or prospective business, work or investigations of SL; or which result from any work you do using any equipment, facilities, materials or personnel
of SL; or which has or have been developed by you or under your supervision, or which result from or are suggested by any work, which you do or may do for SL. 
 3.2 The ownership of all “developmental” work and documentation created by you shall from the moment of its creation, vest in SL. Thus, you agree to assign and do hereby assign to SL,
SL’s nominee, your entire right, title and interest in - 
  

	 	•	 	 all Developments; 

  

	 	•	 	 all trademarks, copyrights and mast work rights in the developments; and 

 

	 	•	 	 all patent applications filed, patents granted on any development, including those in foreign countries, which you conceive or make (whether alone or
with others) while employed by SL or within two (2) years of the end of your employment (if conceived as a result of your Employment). 

  
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 3.3 You acknowledge existence of SL’s present and future products, know how, processes, software
products, programs, codes, documentation and flowcharts in any form and agree to abide by the procedures of the Copyright Law in force in India and foreign countries, which prohibits the reproduction of such protected works, in whole or in part, or
in any form or by any other means without the prior written permission of SL. 
 3.4 You will assign to SL your entire right, title and
interest in any invention or improvement that you might make solely or jointly with others, during the course of your employment with SL relating to any and all products / services / software / software tools marketed or manufactured or developed
and that you will perform any acts and execute such documents without expenses to you which, in the judgements of SL or its attorneys may be needful or desirable to secure to the Company patent protection and any / all rights relating to such
invention or improvement. 
 4.0 NONSOLICITATION / NONCOMPLETE / NONDIVERSION 
 4.1 During the term of this Employment Agreement and for a period of two (2) years subsequent to the termination of this Agreement, you will not, without the prior written consent of SL,
directly, indirectly, or through any other party solicit business from or perform services for any direct or indirect SL customer or any prospective SL customer whom you had any contact with or exposure to, at any time during the term of this
Employment Agreement. 
 4.2 During the term of this Employment Agreement and for a period of two (2) years subsequent to the
termination of this Agreement, you will not, without the prior written consent of SL, seek engagement or employment, either full-time or contractually with any organization that is likely to deploy you on project / assignment in Offshore or Onsite
client engagement where SL is already working for the same client and where you have been engaged in a project with the client organization for a period exceeding one month. This clause does not apply if a period of one year has already exceeded
from the last date of working with the specific client. 
 4.3 During the term of this Employment Agreement and for a period of two
(2) years subsequent to the termination of this Agreement, you will not, without the prior written consent of SL directly, indirectly, or through any other party solicit, offer to, or accept the employment of, persons who are then, or
were during the previous six (6) months, employees of SL or any SL subsidiary / associate / affiliate. 
 5.0 SPECIALIZED
TRAINING and KNOWLEDGE ACQUISITION 
 5.1 If you have to undergo any specialized training in SL or arranged by SL,
you will have to undertake a training agreement to serve SL for a minimum period of one year from the date of undergoing the specialized training. Liquidated damages in case of breach of agreement in this regard would be Rs. 1,00,000/- (Rupees One
Lac Only). During this training period if your performance if found to be unsatisfactory, the Company reserves the right to terminate you from this employment. 

  
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 5.2 On deputation to a client site for knowledge Acquisition and subsequent knowledge Transfer on a
client’s application, either for development, enhancement, maintenance or support, you will be understood to have gathered intellectual property on behalf of SL while on such deputation. As a consequence, you shall commit to serving SL for a
minimum period of six months from the date of return to India from the Onsite engagement. This clause does not apply in the event that you are transferred, within SL, to another client engagement where the value of the initial knowledge acquisition
has diminished and therefore does not constitute knowledge attrition. 
 6.0 CONFIDENTIALITY 

6.1 In connection with your providing certain products and / or services to SL and / or on behalf of SL, you will have access to information
concerning SL and SL’s clients. As a condition to your being given access to such information, you agree to treat any information concerning SL and / or SL’s clients (whether prepared by SL, its advisors or otherwise) which is furnished to
you by or on behalf of SL and / or SL’s clients (herein collectively referred to as the “Confidential Information”) in accordance with the provisions of this letter and to take or abstain from taking certain other actions herein set
forth. The term “Confidential Information” does not include information which (i) is already in your possession, or (ii) becomes generally available to the public other than as a result of a disclosure by you or
(iii) becomes available to you on a non-confidential basis from a source other than SL and / or SL’s clients. The confidential Information shall be solely used for the purpose of and on behalf of SL and you further agree that disclosure of
the same shall be with prior permission of SL. 
 6.2 You agree to promptly redeliver to SL, upon request, all Confidential Information
including all Intellectual property rights, whether registered or unregistered on any tangible media and that you will not retain any copies, extracts or other reproductions in whole or in part of such material. You further agree that breach of this
confidentiality letter agreement could cause irreparable harm to SL and that SL shall be entitled to any and all injunctive relief, as well as monetary damages, including reasonable attorney fees, for such breach. 

7.0 ARBITRATION 
 All disputes or
difference what so ever arising between the parties out of or related to this contract or the construction or meaning and operation or effect of this contract or the breach thereof shall be settled by arbitration in accordance with rules of
arbitration of the Indian Merchant Chambers and award made in pursuant thereof shall be binding on the parties. 
 You or SL may demand
arbitration by giving a written notice to the other party stating the nature of the controversy. 
 8.0 GOVERNING LAW 

The validity, constructing, interpretation and performance of this Contract will be governed by Indian Laws and adjudicated upon by a competent Court in
Mumbai. 

  
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 9.0 REMEDIES 
 9.1 Notwithstanding paragraph (Arbitration clause), you agree that your failure or neglect to perform, keep, or observe any term, provision, condition, covenant, warranty, or representation
contained in this Contract, the confidentiality Contract or any other agreement between you and SL will cause SL immediate and irreparable harm and that SILL is, in addition to all other remedies available to it, entitled to immediate injunctive and
equitable relief from a court having jurisdiction to prevent any breach and to secure the enforcement of its rights hereunder. 
 9.2
Remedies for damages procuring prior to SL’s knowledge of breach or until action in breach ends and related in any way to the effects of the breach shall include but not be limited to monetary damage, liquidated damage, attorney’s fees
and other cause related to the action. 
 10.0 OTHERS 
 10.1 You will also be covered by the Company’s Mediclaim and Accident Insurance Policy. 
 10.2 This appointment is being made in good faith on the basis of your CV and other information provided by you during the course of SL and you mutual discussions. Any data, which is not in
consonance with the information provided by you, shall result in termination of employment forthwith and you shall indemnify SL in full, for any losses suffered by SL. SILL reserves the right to make suitable formal / informal checks with your
educational institutions and previous employers as may be applicable. You are requested to produce all the documents as mentioned in the checklist attached on your date of joining. 
 10.3 You shall not accept any presents, commissions, or any kind of gratification in cash or kind from any person, party, firm or company having dealings with SL group of if any companies and if
you are offered you will report the same immediately to SL. 
 10.4 On matters not specifically covered in this Employment Contract, you
shall be governed by SL’s service rules, practices, etc. which are liable for modifications, additions, total or partial withdrawal, suspension / revocation, etc. from time to time. SL’s decision on all such matters shall be final and
binding on you. 
 11.0 SEVERABILITY 
 If any clause in this agreement is held invalid, illegal or unenforceable for any reason, that provision shall be severed and the remainder of the provisions of this agreement will continue in full force
and effect as if this agreement had been executed without such invalid provision. 
  

									
	For, SYNTEL Ltd.	 		 	Confirmed and Agreed to
					
	Signature	 	/s/ Kirti K	 		 	Signature	 	/s/ Avinash Salelkar
	Name	 	Kirti K	 		 	Your Name	 	Avinash Salelkar
	DATE:	 	1/2/11	 		 	DATE:	 	01 Feb 2011

  
 Page 4 of 4Conversion Agreement

 Exhibit 10.1 
 CONVERSION AGREEMENT 
 THIS CONVERSION AGREEMENT (this
“Agreement”) is dated as of February 28, 2011 by and among SunTrust Bank, a Georgia banking corporation (“SunTrust”), CommunityOne Bank, N.A., a national banking association (the “Bank”), and,
for purposes of Sections 9 and 10 only, FNB United Corp., a North Carolina corporation (“FNB”). 
 WHEREAS, as
of the date hereof, SunTrust is the holder and the Bank is the maker of the Amended and Restated Subordinated Note Due 2015, the principal amount of which is $7,500,000 (the “Note”), a copy of which is attached hereto; and

 WHEREAS, the Bank and SunTrust are each willing to convert $5,000,000 of the principal amount of the Note into shares of the
Preferred Stock of the Bank, par value of $1 per share, as hereinafter provided, provided that the Bank pays all interest accrued on the Note and unpaid to February 28, 2011 immediately prior to the conversion; 

WHEREAS, the Bank and SunTrust are each willing to amend and restate the terms of the Note; 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows: 
 1. Subject to the terms and conditions hereof, the Bank and SunTrust agree to convert, on
February 28, 2011, $5,000,000 of the principal amount of the Note into 5,000,000 shares of the Bank’s non-voting, non-convertible, non-redeemable cumulative preferred stock of the par value of One Dollar ($1) having the preferences and
rights set forth in the Bank’s Articles of Association, as amended (“Preferred Stock”). 
 On
February 28, 2011, the Bank shall deliver to SunTrust (i) a stock certificate representing 5,000,000 shares of Preferred Stock and (ii) a Second Amended and Restated Subordinated Note Due 2015 in the form attached hereto as Exhibit
A (the “Second Amended Note”). The deliveries shall take place in the offices of McKenna Long & Aldridge LLP at 303 Peachtree Street, NE, Suite 5300, Atlanta, GA 30308 at 3 P.M. ET. Upon receipt by SunTrust from the Bank of
such stock certificate and Second Amended Note, SunTrust agrees that the Note shall be cancelled, and SunTrust shall promptly deliver to the Bank the original Note marked cancelled. 

2. The Bank agrees to pay all interest accrued on the Note and unpaid to February 28, 2011 immediately prior to the conversion.

 3. The Bank agrees that the Preferred Stock to be issued by the Bank hereunder will rank pari passu with or senior to
all other series or classes of preferred 

 
stock of the Bank, whether or not issued or outstanding as of or after the date hereof, with respect to the payment of dividends and the distribution of assets in the event of any dissolution,
liquidation or winding up of the Bank. 
 4. The Bank represents and warrants that the Preferred Stock to be issued by the Bank
hereunder has been duly authorized, validly issued, fully paid and nonassessable, and not subject to any liens. 
 5. The Bank
represents and warrants to SunTrust as follows: The Bank has the requisite corporate power and authority to enter into this Agreement and each agreement or instrument to be executed and delivered in connection with or pursuant hereto, to perform its
obligations hereunder and to consummate the transactions contemplated hereby. The Bank has taken all requisite corporate action and obtained due authorization for its execution, delivery and performance of this Agreement and the Second Amended Note
and its consummation of the transactions contemplated hereby. The Bank has duly executed and delivered this Agreement and the Second Amended Note, and assuming due authorization, execution and delivery of this Agreement by SunTrust, this Agreement
and the Second Amended Note each constitute a legal, valid and binding agreement enforceable against the Bank in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application
relating to or affecting creditors’ rights and to general equity principles. The execution and delivery of this Agreement and the Second Amended Note, the consummation of the transactions contemplated hereby, and the compliance with any of the
provisions hereof by the Bank do not (i) violate or conflict with any provisions of its organizational documents, (ii) result in a default (or an event that, with notice or lapse of time or both, would become a default), or give rise to
any right of termination or buy-out by any third party, cancellation, amendment or acceleration of any obligation, or the loss of any benefit under any contract to which it or any of its subsidiaries is a party or by which it or any of its
subsidiaries or any of their respective assets or properties is bound or affected, (iii) results in the creation of a lien on any of its issued and outstanding equity interests or on any of its assets or the assets of any of its subsidiaries,
or (iv) violates or conflicts with any law applicable to it or any of its subsidiaries, or any of the properties, businesses or assets of any of the foregoing, other than such exceptions in the case of each of clauses (ii), (iii), and
(iv) above as would not, individually or in the aggregate, reasonably be expected to materially impair or delay the Bank’s ability to perform each of its obligations hereunder or to consummate the transactions contemplated hereby. When
issued, the Preferred Stock issued to SunTrust in the conversion will rank senior to the Bank’s common stock, and no equity securities or subordinated debt shall rank senior to such shares of Preferred Stock issued to SunTrust by reason of such
conversion (other than the subordinated debt that continues to be held by SunTrust under the Second Amended Note after the conversion). To the extent applicable, the Bank has obtained any consent, approval, authorization or permit, made any
registration, declaration or filing with, and submitted any notification to, any regulatory authority or any other person required to execute and deliver this Agreement, consummate the transactions contemplated hereby, or comply with any of the
provisions hereof. 

  
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 6. SunTrust represents and warrants to the Bank as follows: SunTrust has the requisite
corporate power and authority to enter into this Agreement and each agreement or instrument to be executed and delivered in connection with or pursuant hereto, to perform its obligations hereunder and to consummate the transactions contemplated
hereby. SunTrust has taken all requisite corporate action and obtained due authorization for its execution, delivery and performance of this Agreement and its consummation of the transactions contemplated hereby. SunTrust has duly executed and
delivered this Agreement, and assuming due authorization, execution and delivery of this Agreement by the Bank, this Agreement constitutes a legal, valid and binding agreement enforceable against SunTrust in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting creditors’ rights and to general equity principles. The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the compliance with any of the provisions hereof by SunTrust do not (i) violate or conflict with any provisions of its organizational documents, (ii) result in a default (or an event that, with notice
or lapse of time or both, would become a default), or give rise to any right of termination or buy-out by any third party, cancellation, amendment or acceleration of any obligation, or the loss of any benefit under any contract to which it or any of
its subsidiaries is a party or by which it or any of its subsidiaries or any of their respective assets or properties is bound or affected, (iii) results in the creation of a lien on any of its issued and outstanding equity interests or on any
of its assets or the assets of any of its subsidiaries, or (iv) violates or conflicts with any law applicable to it or any of its subsidiaries, or any of the properties, businesses or assets of any of the foregoing, other than such exceptions
in the case of each of clauses (ii), (iii), and (iv) above as would not, individually or in the aggregate, reasonably be expected to materially impair or delay SunTrust’s ability to perform each of its obligations hereunder or to
consummate the transactions contemplated hereby. To the extent applicable, SunTrust has obtained any consent, approval, authorization or permit, made any registration, declaration or filing with, and submitted any notification to, any regulatory
authority or any other person required to execute and deliver this Agreement, consummate the transactions contemplated hereby, or comply with any of the provisions hereof. 
 7. SunTrust understands and acknowledges that the Preferred Stock to be transferred to it hereunder has not been and will not be registered under the Securities Act of 1933 (the “Securities
Act”) or the regulations of the Comptroller of the Currency and is being issued and delivered hereunder pursuant to an exemption from the registration requirements inasmuch as the issuance of such shares involves a transaction by an issuer
not involving a public offering, and that reliance upon such exemption is predicated in part upon the following representations and warranties of SunTrust: 
 (a) SunTrust is acquiring the Preferred Stock hereunder for investment purposes only, for its own account, and not for the benefit of others, nor with any view to, or in connection with any distribution
or public offering thereof within the meaning of the Securities Act. 

  
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 (b) SunTrust understands that such Preferred Stock has not been registered
under the Securities Act, the regulations of the Comptroller of the Currency, or any state securities law by reason of its issuance in a transaction that is exempt from the registration requirements of the Securities Act, such regulations, and such
laws, and such Preferred Stock must be held indefinitely unless it is subsequently registered under the Securities Act, such regulations, and such laws to the extent applicable or a subsequent disposition thereof is exempt from registration under
the applicable provisions of the Securities Act, such regulations, and such laws. SunTrust acknowledges that the certificate evidencing such Preferred Stock will contain a legend to the foregoing effect. 

(c) SunTrust has sufficient knowledge and expertise in business and financial matters so as to enable it to analyze and
evaluate the merits and risks of acquiring such Preferred Stock pursuant to the terms of this Agreement and is able to bear the economic risk of such acquisition, including a complete loss of its investment in such Preferred Stock. 

(d) SunTrust acknowledges that it has made detailed inquiries concerning the Bank’s business, and that the officers
of the Bank have made available to it any and all written information that it has requested and have answered to its satisfaction all its inquiries. 
 8. The Bank agrees that the Subordinated Debt Loan Agreement, dated June 30, 2008 (the “Loan Agreement”) and the other Loan Documents (as such term is defined in the Loan Agreement),
to the extent not modified by this Agreement and the Second Amended Note, are ratified and confirmed and shall continue in full force and effect after giving effect to this Agreement and the issuance of the Second Amended Note. The Bank and SunTrust
each agree that the Loan Agreement, as modified by this Agreement and the issuance of the Second Amended Note, and the other Loan Documents shall continue to be legal, valid, binding, and enforceable in accordance with their respective terms.

 9. FNB and the Bank each covenants to SunTrust as follows: 

(a) that FNB shall raise no less than $300 million through the issuance of equity securities no later than July 31,
2011 (the “Recapitalization”); and 
 (b) if, in connection with the Recapitalization, FNB
negotiates with the U.S. Department of the Treasury (“U.S. Treasury”) on its investment in FNB under the Troubled Asset Relief Program, FNB and the Bank agree that SunTrust shall be notified of any such negotiations and that any
terms of any conversion or exchange of securities of FNB held by the U.S. Treasury that may be agreed to by FNB with the U.S. Treasury shall not be more favorable than those set forth in this Agreement without first consulting with SunTrust, and

  
 4 

 
obtaining SunTrust’s approval, which approval shall not be unreasonably withheld or delayed. 
 10. TO INDUCE SUNTRUST TO AGREE TO THE TERMS OF THIS AGREEMENT, EACH OF THE BANK AND FNB (BY THEIR RESPECTIVE EXECUTION BELOW) REPRESENTS AND WARRANTS THAT AS OF THE DATE OF THIS AGREEMENT THERE ARE NO
CLAIMS OR OFFSETS AGAINST OR DEFENSES OR COUNTERCLAIMS TO THE BANK’S OR FNB’S OBLIGATIONS UNDER THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS, AND WAIVES ANY AND ALL SUCH CLAIMS, OFFSETS, DEFENSES, OR COUNTERCLAIMS, WHETHER KNOWN OR
UNKNOWN, ARISING PRIOR TO THE DATE OF THIS AGREEMENT AND RELEASES AND DISCHARGES SUNTRUST AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SHAREHOLDERS, AFFILIATES, AND ATTORNEYS (COLLECTIVELY THE “RELEASED PARTIES”) FROM ANY AND ALL
OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, RIGHTS, CAUSES OF ACTION, OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, AT LAW OR IN EQUITY, WHICH THE BANK OR FNB NOW HAS OR MAY HAVE AGAINST ANY RELEASED PARTY ARISING
PRIOR TO THE DATE HEREOF AND FROM OR IN CONNECTION WITH THE LOAN AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED THEREBY. 
 11. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Georgia, without regard to conflict of laws provisions of the State of Georgia or of any other state.

 12. This Agreement may be executed in more than one counterpart, each of which will be deemed to be an original but all of
which together will constitute one and the same instrument. 
 13. This Agreement, including any exhibits or schedules herein,
constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements or understandings, both written and oral, between the parties or any of them with respect to the subject
matter hereof. The only representations and warranties made by the parties hereto with respect to the subject matter hereof are the representations and warranties contained in or made pursuant to this Agreement. 

14. The Bank agrees to promptly pay or promptly reimburse all reasonable and documented costs and expenses of SunTrust in connection with
the negotiation, execution and delivery of this Agreement, the Second Amended Note and that certain Amendment No. 1 to Conversion Agreement, dated as of February 28, 2011, by and among the parties hereto, including the reasonable and
documented fees and disbursements of counsel for SunTrust. 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on their
behalf as of the date first above written. 
  

			
	SunTrust Bank
		
	By:	 	 /s/ Amanda K. Parks

	Name: Amanda K. Parks
	Title: Senior Vice President
	
	CommunityOne Bank, N.A.
		
	By:	 	 /s/ R. Mark Hensley

	Name: R. Mark Hensley
	Title: Executive Vice President
	
	Joining for purposes of Sections 9 and 10 only:
	
	FNB United Corp.
		
	By:	 	 /s/ R. Larry Campbell

	Name: R. Larry Campbell
	Title: President and Chief Executive Officer

  
 6 

  
 Exhibit A 

 

 SECOND AMENDED AND RESTATED SUBORDINATED NOTE DUE 2015 

THIS NOTE IS NOT REQUIRED TO BE, AND IS NOT, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF DEPOSITORS AND GENERAL CREDITORS OF THE BORROWER, IS UNSECURED, AND IS INELIGIBLE AS COLLATERAL FOR A LOAN BY THE BORROWER. 

 

			
	Principal Amount: $2,500,000	  	Original Issue Date: June 30, 2008

 COMMUNITYONE BANK, NATIONAL ASSOCIATION 
 FOR VALUE RECEIVED, CommunityONE
Bank, National Association (the “Borrower”), hereby promises to pay to SunTrust Bank (the “Bank”) at its offices at 303 Peachtree Street, Atlanta, GA, 30308, or at any other place as the Bank may from time to time designate, the
principal amount of TWO MILLION, FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) on June 30, 2015 (the “Maturity Date”) and to pay interest thereon in arrears (a) beginning on September 30, 2008, and ending on February 28,
2011, on each March 31, June 30, September 30 and December 31 of each year and (b) beginning on March 31, 2011, until the Maturity Date, on the last day of each month of each year and on the Maturity Date
(each, an “Interest Payment Date”), at the following rate: (a) beginning on September 30, 2008, and ending on December 31, 2010, at a rate equal to LIBOR plus three and one-half percent (3.50%) per annum (the
“Initial Interest Rate”) and (b) from January 1, 2011, until the Maturity Date at a rate equal to eight percent (8%) per annum (as such rate may be increased pursuant to Section 11 of this Note, the “Modified
Interest Rate” and together with the Initial Interest Rate, the “Interest Rate”). 
 Notwithstanding the
foregoing, the Interest Rate for the initial interest period from the Original Issue Date to September 30, 2008 shall be 6.30063% per annum, which was determined by reference to the then prevailing LIBOR. Thereafter the Initial Interest
Rate shall be reset quarterly (the “Initial Interest Reset Period” and the first day of each Initial Interest Reset Period shall be an “Initial Interest Reset Date”) by reference to the then prevailing LIBOR. The Initial Interest
Reset Dates for this Note shall be March 31, June 30, September 30 and December 31 of each year, beginning on September 30, 2008 and ending on December 31, 2010. If any Initial Interest Reset Date falls on a
date that is not a Business Day, the Initial Interest Reset Date shall be postponed to the next succeeding Business Day, except if that Business Day is in the next succeeding calendar month, the Initial Interest Reset Date shall be the immediately
preceding Business Day. Commencing January 1, 2011, the Interest Rate shall be fixed at the Modified Interest Rate of 8% per annum. 
 “LIBOR” means that rate per annum that is equal to the London interbank offered rate for deposits in U.S. Dollars for a three-month period, which rate appears on Reuters Screen LIBOR01 Page (or
any successor page), or such similar service as determined by the Bank that displays British Bankers’ Association interest settlement rates for deposits in U.S. dollars, as of 11:00 A.M. (London, England time) two (2) London Business Days
prior to the Original Issue Date and each Initial Interest Reset Date; provided, that if no such offered rate appears on such page, the rate used will be the per annum rate of interest determined by the Bank to be the rate at which deposits
in U.S. dollars for a three-month period are offered to the Bank in the London Inter-Bank Market as of 10:00 A.M. (Atlanta, Georgia time) on the date which is two (2) Business Day prior to each Initial Interest Reset Date. 

The amount of interest payable for any interest period shall be computed and paid on the basis of a 360 day year and the actual number of
days elapsed in the relevant interest period. The interest so payable, and punctually paid or duly provided for on any Interest Payment Date, whether at the Initial Interest Rate or the Modified Interest Rate, shall be paid to the person in whose
name this Note is registered at the close of business on the date for such interest installment. Such interest shall be paid only if permitted by applicable law. 
 The term “Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banking institutions are generally authorized or required to be closed in Atlanta, Georgia.
The term “London 

  
 Exhibit A 

 

 
Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banking institution are generally authorized or required to be closed in Atlanta, Georgia and
London, England. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Note is an amendment and
restatement of that certain Subordinated Note due 2015 with an original issue date of June 30, 2008, as first amended and restated on December 30, 2010 (the “Existing Note”). The Borrower acknowledges and agrees that this Note
supersedes and replaces the Existing Note but does not extinguish the obligations thereunder or with respect thereto and that, by entering into and performing its obligations hereunder, it is not causing a novation under the Existing Note.

 IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed and its corporate seal to be hereunder affixed and
attested. 
  

			
	COMMUNITYONE BANK, NATIONAL ASSOCIATION
		
	By:	 	  

			
	Name:	 	  

			
	Title:	 	  

  
 Exhibit A 

 

 [Reverse Side of Note] 

1. Payment of the principal on the Maturity Date and interest payable on each Interest Payment Date will be made by wire transfer in
immediately available funds to a bank account in the United States designated by the Bank (the Bank, and any assignee or transferee of the Bank, shall herein be referred to as the “Holder”), in a written notice received by the Borrower. To
the extent permitted by applicable law, interest shall accrue at the rate at which interest accrues on the principal of this Note, on any amount of principal of or interest on this Note not paid when due. All payments on this Note shall be
applied first to accrued interest and the balance, if any, to principal. 
 2. Payments of principal and interest on this Note
shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. Until the date on which the Note shall have been surrendered or delivered to the
Borrower for cancellation or destruction, or become due and payable and a sum sufficient to pay the principal of and interest on the Note shall have been made available for payment and either paid or returned to the Borrower as provided herein, the
Borrower shall at all times maintain an office where the Note or Notes may be presented or surrendered for payment, and the location shall be communicated promptly to the Holder of this Note. 

3. Except as otherwise provided on the face of this Note, this Note is transferable, in whole or in part, and may be exchanged for a like
aggregate principal amount of Notes of other authorized denominations, by the Holder in person, or by his attorney duly authorized in writing, at the office of the Borrower. Upon surrender or presentation of this Note for exchange or transfer,
the Borrower shall execute and deliver in exchange therefor a Note or Notes, which has or have an aggregate denomination equal to the denomination of this Note and is or are issued in such name or names requested by the Holder. Any Note
presented or surrendered for registration of transfer or exchange shall be duly endorsed, or accompanied by a written instrument of transfer with such evidence of due authorization and guarantee of signature as may reasonably be required by the
Borrower in form satisfactory to the Borrower, duly executed by the Holder or his attorney duly authorized in writing, and with such tax identification number or other information for each person in whose name a Note is to be issued as the Borrower
may reasonably request to comply with applicable law. No exchange or transfer of this Note shall be made on or after the 15th day immediately preceding the Maturity Date. 
 No service charge (other than any cost of delivery) shall be imposed for any exchange or transfer of this Note, but the Borrower may require the payment of a sum sufficient to cover any stamp or other tax
or governmental charge that may be imposed in connection therewith (or presentation of evidence that such tax or charge has been paid). 
 Prior to due presentment of this Note for exchange or transfer, the Borrower and its respective agents may treat the Holder on its books as the absolute owner of this Note for the purpose of receiving
payments of principal of and interest on this Note and for all other purposes whatsoever, whether or not this Note be overdue, and the Borrower shall not be affected by any notice to the contrary. 

4. ANYTHING TO THE CONTRARY HEREIN NOTWITHSTANDING, THIS NOTE IS NOT SUBJECT TO ANY SINKING FUND. 

5. This Note ranks pari passu with all other Notes issued hereunder and pari passu, in the event of a liquidation or similar proceeding
with respect to the Borrower, with all other present or future unsecured subordinated debt obligations of the Borrower, except any unsecured subordinated debt which may be expressly stated to be subordinated to this Note and any other Notes issued
hereunder. 
 6. The indebtedness of the Borrower evidenced by this Note, including the principal and interest, is unsecured and
subordinate and junior in right of payment to the Borrower’s obligations to its depositors, its obligations under bankers’ acceptances and letters of credit, its obligations to any Federal Reserve Bank or the Federal Deposit Insurance
Corporation (“FDIC”) and its obligations to its other creditors, and to any rights acquired by the FDIC as a result of loans made by the FDIC to the Borrower or the purchase or guarantee of any of its assets by the FDIC pursuant to the
provisions of 12 U.S.C. Section 1823(c), (d) or (e), in each case whether outstanding at the date of this Note or hereafter incurred (except any obligations which expressly rank on a parity with or junior to this Note). In the event
of any insolvency proceedings, receivership, conservatorship, reorganization, readjustment 

 Exhibit A 

 

 
of debt, marshalling of assets and liabilities or similar proceedings or any liquidation, dissolution or winding-up of or relating to the Borrower, whether voluntary or involuntary, all such
obligations, except obligations that expressly rank on a parity with or junior to this Note, shall be entitled to be paid in full before any payment shall be made on account of the principal of, or interest on, this Note. In the event of any
such proceedings, after payment in full of all sums owing with respect to such prior obligations, the Holder, together with the holders of any other obligations of the Borrower ranking on a parity with this Note, shall be entitled to be paid from
the remaining assets of the Borrower, the unpaid principal of, and the unpaid interest on, this Note or such other obligations before any payment or other distribution, whether in cash, property or otherwise, shall be made on account of any capital
stock or any obligations of the Borrower ranking junior to this Note. Nothing herein shall impair the obligation of the Borrower, which is absolute and unconditional, to pay the principal of and any premium and any interest on this Note in
accordance with its terms. 
 7. Notwithstanding any other provisions of this Note, including specifically those set forth in
the sections relating to subordination, events of default and covenants of the Borrower, it is expressly understood and agreed that the Office of the Comptroller of the Currency (the “Comptroller”) or any receiver or conservator of the
Borrower appointed by the Comptroller shall have the right in the performance of his legal duties, and as part of any transaction or plan of reorganization or liquidation designed to protect or further the continued existence of the Borrower or the
rights of any parties or agencies with an interest in, or claim against, the Borrower or its assets, to transfer or direct the transfer of the obligations of this Note to any national banking association, state bank or bank holding company selected
by such official which shall expressly assume the obligation of the due and punctual payment of the unpaid principal, interest and premium, if any, on this Note and the due and punctual performance of all covenants and conditions hereof; and the
completion of such transfer and assumption shall serve to supersede and void any default, acceleration or subordination which may have occurred, or which may occur due or related to such transaction, plan, transfer or assumption, pursuant to the
provisions of this Note, and shall serve to return the Holder to the same position, other than for substitution of the obligor, it would have occupied had no default, acceleration or subordination occurred; except that any interest and principal
previously due, other than by reason of acceleration, and not paid shall, in the absence of a contrary agreement by the Holder of this Note, be deemed to be immediately due and payable as of the date of such transfer and assumption, together with
the interest from its original due date at the rate provided for herein. 
 8. All notices to the Borrower under this Note shall
be in writing and addressed to the Borrower at 150 South Fayetteville, Asheboro, North Carolina 27203, Attention: Treasurer, or to such other address of the Borrower as the Borrower may notify to the Holder. 

9. The term “Event of Default,” as used in this Note, means any of the following events (whatever the reason for such event and
whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any decree, order, rule or regulation of any governmental agency or body): 

(i) the Borrower shall consent to the appointment of a receiver, liquidator, trustee or other similar official in any
receivership, liquidation, insolvency or similar proceeding with respect to the Borrower or all or substantially all of the property of the Borrower; or 
 (ii) a court or other governmental agency or body having jurisdiction in the premises shall enter a decree or order for the appointment of a receiver, liquidator, trustee or other similar official of the
Borrower in any receivership, liquidation, insolvency or similar proceeding with respect to the Borrower or all or substantially all of the property of the Borrower, or for the winding up or liquidation of the affairs or business of the Borrower.

 The Borrower will promptly notify the Holder upon the occurrence of an Event of Default. 

10. If an Event of Default shall occur and be continuing, the Holder may, at its option, by written notice to the Borrower, declare this
Note to be, and on the day of such declaration shall have been delivered to the Borrower, this Note shall become, immediately due and payable at its principal amount, together with accrued and unpaid interest thereon to the date of
payment; provided, however, that to the extent then required under or pursuant 

 Exhibit A 

 

 
to applicable regulations of the Comptroller (including, without limitation 12 C.F.R. § 5.47) no accelerated payment may be made without the prior written approval of the Comptroller.

 The Holder of this Note may rescind a declaration of an Event of Default and acceleration with respect to this Note under
certain circumstances and may waive any past Event of Default and its consequences. 
 11. There is no right of acceleration in
the case of a default in the payment of the principal of or interest on this Note or the performance of any other obligation of the Borrower under this Note, or a default in the performance or observance of any agreement, undertaking or covenant
contained in Section 9 of the Conversion Agreement, dated as of December 30, 2010, by and among the Borrower, the Bank and FNB United Corp., a North Carolina corporation ( “FNB”), as amended by the Amendment No. 1 to
Conversion Agreement , dated as of February 28, 2011, by and among the Borrower, the Bank and FNB, or Section 9 of the Conversion Agreement, dated as of February 28, 2011, by and among the Borrower, the Bank and FNB (each, a
“Conversion Agreement”); provided that if a default in the performance or observance of any agreement, undertaking or covenant contained in Section 9 of either Conversion Agreement occurs, the Interest Rate shall automatically
increase to fourteen percent (14%) per annum. 
 12. Subject to paragraph 7 hereof, the Borrower shall not consolidate with
or merge into any other person or convey, transfer or lease its properties and assets substantially as an entirety to any person, unless (a) the person formed by such consolidation or into which the Borrower is merged or the person which
acquires by conveyance or transfer, or which leases, the properties and assets of the Borrower substantially as an entirety shall be a corporation, partnership or other entity organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia and shall expressly assume the due and punctual payment of the principal of and any premium and interest on this Note and the performance or observance of every provision of this Note on the
part of the Borrower to be performed or observed and (b) immediately after giving effect to such transaction, no Event of Default or nonpayment as described in Section 13 of this Note, and no event which, after notice or lapse of time or
both, would become such an Event of Default or nonpayment, shall have happened and be continuing. 
 13. No provision of this
Note shall alter or impair the obligation of the Borrower, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. No failure or delay
on the part of the Holder in exercising any right under this Note shall operate as a waiver of, or impair, any such right. No waiver of any such rights shall be effective unless given in writing. 

14. This Note constitutes subordinated debt which qualifies as capital as provided in 12 C.F.R. Part 3, Appendix A. 

15. This Note is a debt of the Borrower only and is not an obligation of FNB United Corp. or any of its affiliates other than the
Borrower. 
 16. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NORTH CAROLINA AND, WHERE APPROPRIATE, THE LAWS OF THE UNITED STATES. 

 AMENDED AND RESTATED SUBORDINATED NOTE DUE 2015 

THIS NOTE IS NOT REQUIRED TO BE, AND IS NOT, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF DEPOSITORS AND GENERAL CREDITORS OF THE BORROWER, IS UNSECURED, AND IS INELIGIBLE AS COLLATERAL FOR A LOAN BY THE BORROWER. 

 

			
	Principal Amount: $7,500,000	 	Original Issue Date: June 30, 2008

 COMMUNITYONE BANK, NATIONAL ASSOCIATION 
 FOR VALUE RECEIVED, CommunityONE
Bank, National Association (the “Borrower”), hereby promises to pay to SunTrust Bank (the “Bank”) at its offices at 303 Peachtree Street, Atlanta, GA, 30308, or at any other place as the Bank may from time to time designate, the
principal amount of SEVEN MILLION, FIVE HUNDRED THOUSAND DOLLARS ($7,500,000) on June 30, 2015 (the “Maturity Date”) and to pay interest thereon in arrears on each March 31, June 30, September 30 and
December 31 of each year and on the Maturity Date (each,+ an “Interest Payment Date”), (a) beginning on September 30, 2008, and ending on December 31, 2010, at a rate equal to LIBOR plus three and one-half percent
(3.50%) per annum (the “Initial Interest Rate”) and (b) from January 1, 2011, until the Maturity Date at a rate equal to eight percent (8%) per annum (as such rate may be increased pursuant to Section 11 of this
Note, the “Modified Interest Rate” and together with the Initial Interest Rate, the “Interest Rate”). 

Notwithstanding the foregoing, the Interest Rate for the initial interest period from the Original Issue Date to September 30, 2008
shall be 6.30063% per annum, which was determined by reference to the then prevailing LIBOR. Thereafter the Initial Interest Rate shall be reset quarterly (the “Initial Interest Reset Period” and the first day of each Initial Interest
Reset Period shall be an “Initial Interest Reset Date”) by reference to the then prevailing LIBOR. The Initial Interest Reset Dates for this Note shall be March 31, June 30, September 30 and December 31 of
each year, beginning on September 30, 2008 and ending on December 31, 2010. If any Initial Interest Reset Date falls on a date that is not a Business Day, the Initial Interest Reset Date shall be postponed to the next succeeding Business
Day, except if that Business Day is in the next succeeding calendar month, the Initial Interest Reset Date shall be the immediately preceding Business Day. Commencing January 1, 2011, the Interest Rate shall be fixed at the Modified Interest
Rate of 8% per annum. 
 “LIBOR” means that rate per annum that is equal to the London interbank offered rate for
deposits in U.S. Dollars for a three-month period, which rate appears on Reuters Screen LIBOR01 Page (or any successor page), or such similar service as determined by the Bank that displays British Bankers’ Association interest settlement rates
for deposits in U.S. dollars, as of 11:00 A.M. (London, England time) two (2) London Business Days prior to the Original Issue Date and each Initial Interest Reset Date; provided, that if no such offered rate appears on such page, the
rate used will be the per annum rate of interest determined by the Bank to be the rate at which deposits in U.S. dollars for a three-month period are offered to the Bank in the London Inter-Bank Market as of 10:00 A.M. (Atlanta, Georgia time) on the
date which is two (2) Business Day prior to each Initial Interest Reset Date. 
 The amount of interest payable for any
interest period shall be computed and paid on the basis of a 360 day year and the actual number of days elapsed in the relevant interest period. The interest so payable, and punctually paid or duly provided for on any Interest Payment Date, whether
at the Initial Interest Rate or the Modified Interest Rate, shall be paid to the person in whose name this Note is registered at the close of business on the date for such interest installment. Such interest shall be paid only if permitted by
applicable law. 
 The term “Business Day” means any day that is not a Saturday or Sunday and that is not a day on
which banking institutions are generally authorized or required to be closed in Atlanta, Georgia. The term “London 

 
Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banking institution are generally authorized or required to be closed in Atlanta, Georgia and
London, England. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Note is an amendment and
restatement of that certain Subordinated Note due 2015 with an original issue date of June 30, 2008 (the “Existing Note”). The Borrower acknowledges and agrees that this Note supersedes and replaces the Existing Note but does not
extinguish the obligations thereunder or with respect thereto and that, by entering into and performing its obligations hereunder, it is not causing a novation under the Existing Note. 

IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed and its corporate seal to be hereunder affixed and attested.

  

			
	COMMUNITYONE BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ R. Mark
Hensley

			
	Name:	 	 R. Mark
Hensley

			
	Title:	 	 Executive Vice President

 [Reverse Side of Note] 

1. Payment of the principal on the Maturity Date and interest payable on each Interest Payment Date will be made by wire transfer in
immediately available funds to a bank account in the United States designated by the Bank (the Bank, and any assignee or transferee of the Bank, shall herein be referred to as the “Holder”), in a written notice received by the Borrower. To
the extent permitted by applicable law, interest shall accrue at the rate at which interest accrues on the principal of this Note, on any amount of principal of or interest on this Note not paid when due. All payments on this Note shall be
applied first to accrued interest and the balance, if any, to principal. 
 2. Payments of principal and interest on this Note
shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. Until the date on which the Note shall have been surrendered or delivered to the
Borrower for cancellation or destruction, or become due and payable and a sum sufficient to pay the principal of and interest on the Note shall have been made available for payment and either paid or returned to the Borrower as provided herein, the
Borrower shall at all times maintain an office where the Note or Notes may be presented or surrendered for payment, and the location shall be communicated promptly to the Holder of this Note. 

3. Except as otherwise provided on the face of this Note, this Note is transferable, in whole or in part, and may be exchanged for a like
aggregate principal amount of Notes of other authorized denominations, by the Holder in person, or by his attorney duly authorized in writing, at the office of the Borrower. Upon surrender or presentation of this Note for exchange or transfer,
the Borrower shall execute and deliver in exchange therefor a Note or Notes, which has or have an aggregate denomination equal to the denomination of this Note and is or are issued in such name or names requested by the Holder. Any Note
presented or surrendered for registration of transfer or exchange shall be duly endorsed, or accompanied by a written instrument of transfer with such evidence of due authorization and guarantee of signature as may reasonably be required by the
Borrower in form satisfactory to the Borrower, duly executed by the Holder or his attorney duly authorized in writing, and with such tax identification number or other information for each person in whose name a Note is to be issued as the Borrower
may reasonably request to comply with applicable law. No exchange or transfer of this Note shall be made on or after the 15th day immediately preceding the Maturity Date. 
 No service charge (other than any cost of delivery) shall be imposed for any exchange or transfer of this Note, but the Borrower may require the payment of a sum sufficient to cover any stamp or other tax
or governmental charge that may be imposed in connection therewith (or presentation of evidence that such tax or charge has been paid). 
 Prior to due presentment of this Note for exchange or transfer, the Borrower and its respective agents may treat the Holder on its books as the absolute owner of this Note for the purpose of receiving
payments of principal of and interest on this Note and for all other purposes whatsoever, whether or not this Note be overdue, and the Borrower shall not be affected by any notice to the contrary. 

4. ANYTHING TO THE CONTRARY HEREIN NOTWITHSTANDING, THIS NOTE IS NOT SUBJECT TO ANY SINKING FUND. 

5. This Note ranks pari passu with all other Notes issued hereunder and pari passu, in the event of a liquidation or similar proceeding
with respect to the Borrower, with all other present or future unsecured subordinated debt obligations of the Borrower, except any unsecured subordinated debt which may be expressly stated to be subordinated to this Note and any other Notes issued
hereunder. 
 6. The indebtedness of the Borrower evidenced by this Note, including the principal and interest, is unsecured and
subordinate and junior in right of payment to the Borrower’s obligations to its depositors, its obligations under bankers’ acceptances and letters of credit, its obligations to any Federal Reserve Bank or the Federal Deposit Insurance
Corporation (“FDIC”) and its obligations to its other creditors, and to any rights acquired by the FDIC as a result of loans made by the FDIC to the Borrower or the purchase or guarantee of any of its assets by the FDIC pursuant to the
provisions of 12 U.S.C. Section 1823(c), (d) or (e), in each case whether outstanding at the date of this Note or hereafter incurred (except any obligations which expressly rank on a parity with or junior to this Note). In the event
of any insolvency proceedings, receivership, conservatorship, reorganization, readjustment 

 
of debt, marshalling of assets and liabilities or similar proceedings or any liquidation, dissolution or winding-up of or relating to the Borrower, whether voluntary or involuntary, all such
obligations, except obligations that expressly rank on a parity with or junior to this Note, shall be entitled to be paid in full before any payment shall be made on account of the principal of, or interest on, this Note. In the event of any
such proceedings, after payment in full of all sums owing with respect to such prior obligations, the Holder, together with the holders of any other obligations of the Borrower ranking on a parity with this Note, shall be entitled to be paid from
the remaining assets of the Borrower, the unpaid principal of, and the unpaid interest on, this Note or such other obligations before any payment or other distribution, whether in cash, property or otherwise, shall be made on account of any capital
stock or any obligations of the Borrower ranking junior to this Note. Nothing herein shall impair the obligation of the Borrower, which is absolute and unconditional, to pay the principal of and any premium and any interest on this Note in
accordance with its terms. 
 7. Notwithstanding any other provisions of this Note, including specifically those set forth in
the sections relating to subordination, events of default and covenants of the Borrower, it is expressly understood and agreed that the Office of the Comptroller of the Currency (the “Comptroller”) or any receiver or conservator of the
Borrower appointed by the Comptroller shall have the right in the performance of his legal duties, and as part of any transaction or plan of reorganization or liquidation designed to protect or further the continued existence of the Borrower or the
rights of any parties or agencies with an interest in, or claim against, the Borrower or its assets, to transfer or direct the transfer of the obligations of this Note to any national banking association, state bank or bank holding company selected
by such official which shall expressly assume the obligation of the due and punctual payment of the unpaid principal, interest and premium, if any, on this Note and the due and punctual performance of all covenants and conditions hereof; and the
completion of such transfer and assumption shall serve to supersede and void any default, acceleration or subordination which may have occurred, or which may occur due or related to such transaction, plan, transfer or assumption, pursuant to the
provisions of this Note, and shall serve to return the Holder to the same position, other than for substitution of the obligor, it would have occupied had no default, acceleration or subordination occurred; except that any interest and principal
previously due, other than by reason of acceleration, and not paid shall, in the absence of a contrary agreement by the Holder of this Note, be deemed to be immediately due and payable as of the date of such transfer and assumption, together with
the interest from its original due date at the rate provided for herein. 
 8. All notices to the Borrower under this Note shall
be in writing and addressed to the Borrower at 150 South Fayetteville, Asheboro, North Carolina 27203, Attention: Treasurer, or to such other address of the Borrower as the Borrower may notify to the Holder. 

9. The term “Event of Default,” as used in this Note, means any of the following events (whatever the reason for such event and
whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any decree, order, rule or regulation of any governmental agency or body): 

(i) the Borrower shall consent to the appointment of a receiver, liquidator, trustee or other similar official in any
receivership, liquidation, insolvency or similar proceeding with respect to the Borrower or all or substantially all of the property of the Borrower; or 
 (ii) a court or other governmental agency or body having jurisdiction in the premises shall enter a decree or order for the appointment of a receiver, liquidator, trustee or other similar official of the
Borrower in any receivership, liquidation, insolvency or similar proceeding with respect to the Borrower or all or substantially all of the property of the Borrower, or for the winding up or liquidation of the affairs or business of the Borrower.

 The Borrower will promptly notify the Holder upon the occurrence of an Event of Default. 

10. If an Event of Default shall occur and be continuing, the Holder may, at its option, by written notice to the Borrower, declare this
Note to be, and on the day of such declaration shall have been delivered to the Borrower, this Note shall become, immediately due and payable at its principal amount, together with accrued and unpaid interest thereon to the date of
payment; provided, however, that to the extent then required under or pursuant 

 
to applicable regulations of the Comptroller (including, without limitation 12 C.F.R. § 5.47) no accelerated payment may be made without the prior written approval of the Comptroller.

 The Holder of this Note may rescind a declaration of an Event of Default and acceleration with respect to this Note under
certain circumstances and may waive any past Event of Default and its consequences. 
 11. There is no right of acceleration in
the case of a default in the payment of the principal of or interest on this Note or the performance of any other obligation of the Borrower under this Note, or a default in the performance or observance of any agreement, undertaking or covenant
contained in Section 9 of the Conversion Agreement, dated as of December 30, 2010, by and among the Borrower, the Bank and FNB United Corp., a North Carolina corporation (the “Conversion Agreement”); provided that if a default in
the performance or observance of any agreement, undertaking or covenant contained Section 9 of the Conversion Agreement occurs, the Interest Rate shall automatically increase to fourteen percent (14%) per annum. 

12. Subject to paragraph 7 hereof, the Borrower shall not consolidate with or merge into any other person or convey, transfer or lease
its properties and assets substantially as an entirety to any person, unless (a) the person formed by such consolidation or into which the Borrower is merged or the person which acquires by conveyance or transfer, or which leases, the
properties and assets of the Borrower substantially as an entirety shall be a corporation, partnership or other entity organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and
shall expressly assume the due and punctual payment of the principal of and any premium and interest on this Note and the performance or observance of every provision of this Note on the part of the Borrower to be performed or observed and
(b) immediately after giving effect to such transaction, no Event of Default or nonpayment as described in Section 13 of this Note, and no event which, after notice or lapse of time or both, would become such an Event of Default or
nonpayment, shall have happened and be continuing. 
 13. No provision of this Note shall alter or impair the obligation of the
Borrower, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. No failure or delay on the part of the Holder in exercising any right
under this Note shall operate as a waiver of, or impair, any such right. No waiver of any such rights shall be effective unless given in writing. 
 14. This Note constitutes subordinated debt which qualifies as capital as provided in 12 C.F.R. Part 3, Appendix A. 
 15. This Note is a debt of the Borrower only and is not an obligation of FNB United Corp. or any of its affiliates other than the Borrower. 

16. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA AND, WHERE
APPROPRIATE, THE LAWS OF THE UNITED STATES.

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