Document:

Salary Continuation Agreement

 EXHIBIT 10.15 
  
 BANK OF WILMINGTON 
 SALARY CONTINUATION AGREEMENT 
  
 THIS SALARY CONTINUATION AGREEMENT (this
“Agreement”) is made and entered into as of this 23rd day of June, 2005, by and between Bank of Wilmington, a bank chartered under North Carolina law (the “Bank”), and Lynn M. Burney, its Senior Vice President and Chief
Operations Officer (the “Executive”). 
  
 WHEREAS, the Executive has contributed substantially to the success of the Bank, and the Bank desires that the Executive continue in its employ, 
  
 WHEREAS, to encourage the Executive to
remain an employee of the Bank, the Bank is willing to provide salary continuation benefits to the Executive. The Bank will pay the benefits from its general assets, 
  
 WHEREAS, none of the conditions or events included in the definition of the term
“golden parachute payment” that is set forth in section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists
or, to the best knowledge of the Bank, is contemplated insofar as the Bank is concerned, and 
  
 WHEREAS, the parties hereto intend that this Agreement shall be considered an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the
Executive, and to be considered a non-qualified benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Executive is fully advised of the Bank’s financial status. 
  
 NOW THEREFORE, in
consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Executive and the Bank hereby agree as follows. 
  
 Article 1 
 Definitions 
  
 The following words and phrases used in this Agreement have the meanings specified. 
  
 1.1 “Accrual Balance” means the liability that should be accrued by the Bank under generally accepted accounting principles (“GAAP”) for the Bank’s obligation to the Executive under
this Agreement, by applying Accounting Principles Board Opinion No. 12, as amended by Statement of Financial Accounting Standards No. 106, and the calculation method and discount rate specified hereinafter. The Accrual Balance shall be
calculated assuming a level principal 

 amount and interest as the discount rate is accrued each period. The principal accrual is determined such that when it is
credited with interest each month, the Accrual Balance at Normal Retirement Age equals the present value of the normal retirement benefits. The discount rate means the rate used by the Plan Administrator for determining the Accrual Balance. The rate
is based on the yield on a 20-year corporate bond rated Aa by Moody’s, rounded to the nearest 1/4%. The initial discount rate is 6.25%. In its sole discretion, the Plan Administrator may adjust the discount rate to maintain the rate within
reasonable standards according to GAAP. 
  
 1.2
“Beneficiary” means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive, determined according to Article 4. 
  
 1.3 “Beneficiary Designation Form” means the form
established from time to time by the Plan Administrator that the Executive completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries. 
  
 1.4 “Change in Control” shall mean any one of the following events occurs, provided the event constitutes a
change in control within the meaning of Internal Revenue Code section 409A and rules, regulations, and guidance of general application thereunder issued by the Department of the Treasury, and provided the occurrence of the event is objectively
determinable and does not require the exercise of discretion on the part of the Plan Administrator or any other person – 
  
 (a) Change in Ownership of Bank of Wilmington: a change in ownership of the Bank occurs on the date any one person or group
accumulates ownership of the Bank’s stock constituting more than 50% of the total fair market value or total voting power of the Bank’s stock, 
  
 (b) Change in Effective Control of Bank of Wilmington: (1) any one person, or more than one person acting as a group, acquires
within a 12-month period ownership of stock of the Bank possessing 35% or more of the total voting power of the Bank’s stock, or (2) a majority of the Bank’s board of directors is replaced during any 12-month period by directors whose
appointment or election is not endorsed in advance by a majority of the Bank’s board of directors, or 
  
 (c) Change in Ownership of a Substantial Portion of Bank of Wilmington’s Assets: a change in the ownership of a substantial
portion of the Bank’s assets occurs on the date any one person, or more than one person acting as a group, acquires assets from the Bank having a total gross fair market value equal to or exceeding 40% of the total gross fair market value of
all of the assets of the Bank immediately before the acquisition or acquisitions. For this purpose, gross fair market value means the value of the Bank’s assets, or the value of the assets being disposed of, determined without regard to any
liabilities associated with the assets. 
  

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 For purposes of paragraphs (a) through (c) of this Section 1.4, persons
shall be considered to be acting as a group if they would be considered to be acting as a group under Internal Revenue Code section 409A and rules, regulations, and guidance of general application issued thereunder by the Department of the Treasury.

  
 Anything in this Agreement to the contrary
notwithstanding, a transaction in which a company becomes the holding company for the Bank shall not be considered a Change in Control for purposes of this Agreement, provided the offer, sale, and issuance of shares of the holding company to Bank
stockholders as part of the holding company reorganization are exempt from registration under the Securities Act of 1933 by section 3(a)(12) of that Act. If a holding company reorganization occurs, references in this Section 1.4 to the Bank
shall mean the holding company instead, and after a holding company reorganization a sale of the holding company’s assets includes sale of the Bank alone. 
  

1.5 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 1.6 “Disability” means, because of a medically determinable physical or mental impairment that can be
expected to result in death or that can be expected to last for a continuous period of at least 12 months, (a) the Executive is unable to engage in any substantial gainful activity, or (b) the Executive is receiving income replacement
benefits for a period of at least three months under an accident and health plan of the Bank. Medical determination of disability may be made either by the Social Security Administration or by the provider of an accident or health plan covering
employees of the Bank. Upon request of the Plan Administrator, the Executive must submit proof to the Plan Administrator of the Social Security Administration’s or provider’s determination. 
  
 1.7 “Early Termination” means Termination of Employment
before Normal Retirement Age for reasons other than death, Disability, Termination for Cause or following a Change in Control. 
  
 1.8 “Effective Date” means April 1, 2005. 
  

1.9 “Intentional,” for purposes of this Agreement, no act or failure to act on the part of the Executive shall be deemed to have been
intentional if it was due primarily to an error in judgment or negligence. An act or failure to act on the Executive’s part shall be considered intentional if it is not in good faith and if it is without a reasonable belief that the action or
failure to act is in the best interests of the Bank. 
  
 1.10
“Normal Retirement Age” means the Executive’s 65th birthday. 
  
 1.11 “Plan Administrator” means the plan administrator described in Article 8. 
  

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 1.12 “Plan Year” means a twelve-month period commencing on January 1 and ending on
December 31 of each year. The initial Plan Year shall commence on the Effective Date of this Agreement. 
  
 1.13 “Termination for Cause” and “Cause” shall have the same meaning specified in any employment or severance agreement
existing on the date hereof or entered into after the date of this Agreement by the Executive and the Bank. If the Executive is not a party to a severance or employment agreement containing a definition of termination for cause, Termination for
Cause means the Executive’s employment terminates for any of the following reasons – 
  
 (a) the Executive’s gross negligence or gross neglect of duties or intentional and material failure to perform stated duties after
written notice thereof, causing material harm to the Bank or affiliates, or 
  
 (b) dishonesty by the Executive in the performance of her duties, or a breach of the Executive’s fiduciary duties for personal profit, in any case whether in her capacity as a director or officer, or 

 
 (c) intentional wrongful damage by the Executive to the
business or property of the Bank or its affiliates, including without limitation the reputation of the Bank, causing material harm to the Bank or affiliates, or 
  
 (d) a willful violation by the Executive of any applicable law or significant policy of the Bank or an
affiliate causing material harm to the Bank or affiliates, regardless of whether the violation leads to criminal prosecution or conviction. For purposes of this Agreement, applicable laws include any statute, rule, regulatory order, statement of
policy, or final cease-and-desist order of any governmental agency or body having regulatory authority over the Bank, or 
  
 (e) the occurrence of any event that results in the Executive being excluded from coverage, or having coverage limited for the Executive
as compared to other executives of the Bank, under the Bank’s blanket bond or other fidelity or insurance policy covering its directors, officers, or employees, or 
  
 (f) the Executive is removed from office or permanently prohibited from participating in the Bank’s
affairs by an order issued under section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or 
  
 (g) conviction of the Executive for or plea of nolo contendere to a felony or conviction of or plea of nolo contendere to a
misdemeanor involving moral turpitude, or the actual incarceration of the Executive for seven consecutive days or more. 
  

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 1.14 “Termination of Employment” means the Executive ceases to be employed by the Bank
for any reason whatsoever, other than because of a leave of absence approved by the Bank. For purposes of this Agreement, if there is a dispute about the employment status of the Executive or the date of the Executive’s Termination of
Employment, the Bank shall have the sole and absolute right to decide the dispute unless a Change in Control shall have occurred. 
  
 Article 2 
 Lifetime Benefits

  
 2.1 Normal Retirement Benefit. When the Executive
attains the Normal Retirement Age the Bank shall pay to the Executive the benefit described in this Section 2.1 instead of any other benefit under this Agreement, provided the Executive’s Termination of Employment does not occur before
Normal Retirement Age. If the Executive’s Termination of Employment after payment of benefits under this Section 2.1 commences is a Termination for Cause or if this Agreement terminates under Article 5, no further benefits shall be paid to
the Executive. 
  
 2.1.1 Amount of Benefit. The annual
benefit under this Section 2.1 is $72,300. 
  
 2.1.2
Payment of Benefit. The Bank shall pay the annual benefit to the Executive in 12 equal monthly installments payable on the first day of each month, beginning with the month immediately after the month in which the Executive attains the Normal
Retirement Age. The Normal Retirement annual benefit shall be paid to the Executive for her lifetime. 
  
 2.2 Early Termination Benefit. Upon Early Termination, the Bank shall pay to the Executive the benefit described in this Section 2.2 instead
of any other benefit under this Agreement. 
  
 2.2.1 Amount of
Benefit. The benefit under this Section 2.2 is the Early Termination annual benefit amount, which shall be calculated as the fixed annual amount that fully amortizes the Accrual Balance existing at the end of the month immediately preceding
the month in which Early Termination occurs, amortizing that Accrual Balance over the period beginning with the Executive’s Normal Retirement Age and ending when the Executive attains age 82 and taking into account interest at the discount rate
or rates established by the Plan Administrator. The Early Termination benefits shown on Schedule A are for illustrative purposes only and are based on the assumptions that Early Termination occurs immediately after the final day of a Plan Year and
that the Executive attains the Normal Retirement Age more than six months thereafter. 
  
 2.2.2 Payment of Benefit. The Bank shall pay the annual benefit to the Executive in 12 equal monthly installments payable on the first day of each month, beginning with the later of (a) the seventh month
after the Executive’s Termination of Employment, or (b) the month immediately after the month in which the Executive attains the Normal Retirement Age. The annual benefit shall be paid to the Executive for her lifetime. 
  

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 2.3 Disability Benefit. Upon Termination of Employment because of Disability before Normal
Retirement Age, the Bank shall pay to the Executive the benefit described in this Section 2.3 instead of any other benefit under this Agreement. 
  
 2.3.1 Amount of Benefit. The benefit under this Section 2.3 is the Disability annual benefit amount, which shall be calculated as the fixed
annual amount that fully amortizes the Accrual Balance existing at the end of the month immediately preceding the month in which Termination of Employment occurs, amortizing that Accrual Balance over the period beginning with the Executive’s
Normal Retirement Age and ending when the Executive attains age 82 and taking into account interest at the discount rate or rates established by the Plan Administrator. The Disability benefits shown on Schedule A are for illustrative purposes only
and are based on the assumptions that Termination of Employment occurs immediately after the final day of a Plan Year and that the Executive attains the Normal Retirement Age more than six months thereafter. 
  
 2.3.2 Payment of Benefit. The Bank shall pay the annual benefit to
the Executive in 12 equal monthly installments payable on the first day of each month, beginning with the later of (a) the seventh month after the Executive’s Termination of Employment, or (b) the month immediately after the month in
which the Executive attains the Normal Retirement Age. The annual benefit shall be paid to the Executive for her lifetime. 
  
 2.4 Change-in-Control Benefit. If a Change in Control occurs after the date of this Agreement, unless benefits are being paid under section 2.1 the
Bank shall exercise its discretion to terminate this Agreement and pay to the Executive the benefit described in this Section 2.4 instead of any other benefit under this Agreement. 
  
 2.4.1 Amount of Benefit: The benefit under this Section 2.4 is the Accrual Balance maintained by the Bank as of
the date of the Change in Control. 
  
 2.4.2 Payment of
Benefit: The Bank shall pay the Change-in-Control benefit under Section 2.4 of this Agreement to the Executive in one lump sum within three days after the Change in Control. Payment of the Change-in-Control benefit shall fully discharge the
Bank from all obligations under this Agreement, except the legal fee reimbursement obligation under Section 7.13. 
  
 2.5 Contradiction in Terms of Agreement and Schedule A. If there is a contradiction in the terms of this Agreement and Schedule A attached hereto
concerning the actual amount of a particular benefit amount due the Executive under Section 2.2, 2.3, or 2.4 hereof, then the actual amount of the benefit set forth in the Agreement shall control. If the Plan Administrator changes the discount
rate employed for purposes of calculating the Accrual Balance, the Plan Administrator shall prepare or cause to be prepared a revised Schedule A, which shall supersede and replace any and all Schedules A previously prepared under or attached to this
Agreement. 
  

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 2.6 Savings Clause Relating to Compliance with Code Section 409A. If any provision of this
Agreement does not satisfy the requirements of Code section 409A or rules, regulations, and guidance of general application issued by the Department of the Treasury under Code section 409A, such provision shall be applied in a manner consistent with
those requirements, notwithstanding any provision of this Agreement. 
  
 Article 3 
 Death Benefits 
  
 3.1 Death During Active Service. If the Executive dies in active service to the Bank, the Executive’s Beneficiary shall be entitled to
(a) an amount in cash equal to the Accrual Balance at the time of the Executive’s death, and (b) the benefit, if any, provided by the Endorsement Split Dollar Agreement attached to this Agreement as Addendum A, as the same may be
amended. 
  
 3.2 Death After Termination of Employment. If
the Executive dies after Termination of Employment and at Termination of Employment the Executive was entitled to the normal retirement benefit provided by Section 2.1, the Early Termination benefit provided by Section 2.2, or the
Disability benefit provided by Section 2.3, the Executive’s Beneficiary shall be entitled to (a) an amount in cash equal to the Accrual Balance remaining at the time of the Executive’s death, and (b) the benefit, if any,
provided by the Endorsement Split Dollar Agreement attached to this Agreement as Addendum A, as the same may be amended. However, no benefits under this Agreement or under the Endorsement Split Dollar Agreement shall be paid or payable to the
Executive or the Executive’s Beneficiary if this Agreement is terminated under Article 5. 
  
 Article 4 
 Beneficiaries 
  
 4.1 Beneficiary Designations. The Executive shall have the right to designate at any time a Beneficiary to receive
any benefits payable under this Agreement upon the Executive’s death. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of the Bank in which the
Executive participates. 
  
 4.2 Beneficiary Designation:
Change. The Executive shall designate a Beneficiary by completing and signing the Beneficiary Designation Form and delivering it to the Plan Administrator or its designated agent. The Executive’s Beneficiary designation shall be deemed
automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing, and
otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all
Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator before the Executive’s death.

  

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 4.3 Acknowledgment. No designation or change in designation of a Beneficiary shall be effective
until received, accepted, and acknowledged in writing by the Plan Administrator or its designated agent. 
  
 4.4 No Beneficiary Designation. If the Executive dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the
Executive, then the Executive’s spouse shall be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made to the personal representative of the Executive’s estate. 
  
 4.5 Facility of Payment. If a benefit is payable to a minor, to a
person declared incapacitated, or to a person incapable of handling the disposition of his or her property, the Bank may pay such benefit to the guardian, legal representative, or person having the care or custody of the minor, incapacitated person,
or incapable person. The Bank may require proof of incapacity, minority, or guardianship as it may deem appropriate before distribution of the benefit. Distribution shall completely discharge the Bank from all liability for the benefit. 

 
 Article 5 
 General Limitations 
  
 5.1 Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not pay any benefit under this Agreement and this Agreement shall terminate if Termination of
Employment is a result of Termination for Cause. Likewise, no benefits shall be paid under the Endorsement Split Dollar Agreement attached to this Agreement as Addendum A, as the same may be amended, and the Endorsement Split Dollar Agreement also
shall terminate, if Termination of Employment is a result of Termination for Cause. 
  
 5.2 Suicide or Misstatement. No benefits shall be paid under this Agreement or under the Endorsement Split Dollar Agreement attached to this Agreement as Addendum A, as the same may be amended, if the Executive
commits suicide within two years after the date of this Agreement, or if the Executive makes any material misstatement of fact on any application or resume provided to the Bank or on any application for benefits provided by the Bank. 
  
 5.3 Removal. If the Executive is removed from office or permanently
prohibited from participating in the Bank’s affairs by an order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), all obligations of the Bank under this Agreement shall terminate as of
the effective date of the order. 
  
 5.4 Default.
Notwithstanding any provision of this Agreement to the contrary, if the Bank is in “default” or “in danger of default,” as those terms are defined in section 3(x) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(x), all
obligations under this Agreement shall terminate. 
  

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 5.5 FDIC Open-Bank Assistance. All obligations under this Agreement shall terminate, except to the
extent determined that continuation of the contract is necessary for the continued operation of the Bank, when the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Bank under the authority
contained in Federal Deposit Insurance Act section 13(c). 12 U.S.C. 1823(c). Rights of the parties that have already vested shall not be affected by such action, however. 
  
 Article 6 
 Claims and Review Procedures 
  
 6.1 Claims
Procedure. The Bank shall notify any person or entity that makes a claim for benefits under this Agreement (the “Claimant”) in writing, within 90 days of Claimant’s written application for benefits, of his or her eligibility or
ineligibility for benefits under the Agreement. If the Bank determines that the Claimant is not eligible for benefits or full benefits, the notice shall set forth (a) the specific reasons for such denial, (b) a specific reference to the
provisions of the Agreement on which the denial is based, (c) a description of any additional information or material necessary for the Claimant to perfect his or her claim, and a description of why it is needed, and (d) an explanation of
the Agreement’s claims review procedure and other appropriate information as to the steps to be taken if the Claimant wishes to have the claim reviewed. If the Bank determines that there are special circumstances requiring additional time to
make a decision, the Bank shall notify the Claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90 days. 
  
 6.2 Review Procedure. If the Claimant is determined by the Bank to be
ineligible for benefits, or if the Claimant believes that he or she is entitled to greater or different benefits, the Claimant shall have the opportunity to have such claim reviewed by the Bank by filing a petition for review with the Bank within 60
days after receipt of the notice issued by the Bank. Said petition shall state the specific reasons, which the Claimant believes entitle him or her to benefits or to greater or different benefits. Within 60 days after receipt by the Bank of the
petition, the Bank shall afford the Claimant (and counsel, if any) an opportunity to present his or her position to the Bank verbally or in writing, and the Claimant (or counsel) shall have the right to review the pertinent documents. The Bank shall
notify the Claimant of its decision in writing within the 60-day period, stating specifically the basis of its decision, written in a manner to be understood by the Claimant and the specific provisions of the Agreement on which the decision is
based. If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another 60 days at the election of the Bank, but notice of this deferral shall be given to the Claimant. 
  

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 Article 7 
 Miscellaneous 
  
 7.1
Amendments and Termination. Subject to Section 7.14 of this Agreement, this Agreement may be amended solely by a written agreement signed by the Bank and by the Executive, and except for termination occurring under Article 5 this
Agreement may be terminated solely by a written agreement signed by the Bank and by the Executive. 
  
 7.2 Binding Effect. This Agreement shall bind the Executive, the Bank, and their beneficiaries, survivors, executors, successors, administrators,
and transferees. 
  
 7.3 No Guarantee of Employment. This
Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Bank, nor does it interfere with the Bank’s right to discharge the Executive. It also does not require the Executive to
remain an employee or interfere with the Executive’s right to terminate employment at any time. 
  
 7.4 Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached, or encumbered in any manner.

  
 7.5 Successors; Binding Agreement. The Bank shall
require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Bank, by an assumption agreement in form and substance satisfactory to the Executive,
to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform this Agreement if no such succession had occurred. 
  
 7.6 Tax Withholding. The Bank shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement. 
  
 7.7 Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of the State of North Carolina, except to the extent preempted by the laws of the United States of America. 

 
 7.8 Unfunded Arrangement. The Executive and Beneficiary are general
unsecured creditors of the Bank for the payment of benefits under this Agreement. The benefits represent the mere promise by the Bank to pay benefits. Rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the Executive’s life is a general asset of the Bank to which the Executive and Beneficiary have no preferred or secured claim. 
  
 7.9 Entire Agreement. This Agreement and the Endorsement Split Dollar
Agreement attached to this Agreement as Addendum A, as the same may be amended, constitute the entire agreement between the Bank and the Executive as to the subject matter hereof. No rights are granted to the Executive under this Agreement other
than those specifically set forth herein. 
  

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 7.10 Severability. If for any reason any provision of this Agreement is held invalid, such
invalidity shall not affect any other provision of this Agreement not held invalid, and each such other provision shall continue in full force and effect to the full extent consistent with law. If any provision of this Agreement is held invalid in
part, such invalidity shall not affect the remainder of the provision not held invalid, and the remainder of such provision together with all other provisions of this Agreement shall continue in full force and effect to the full extent consistent
with law. 
  
 7.11 Headings. Caption headings and
subheadings herein are included solely for convenience of reference and shall not affect the meaning or interpretation of any provision of this Agreement. 
  
 7.12 Notices. All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given if
delivered by hand or mailed, certified or registered mail, return receipt requested, with postage prepaid, to the following addresses or to such other address as either party may designate by like notice. Unless otherwise changed by notice, notice
shall be properly addressed to the Executive if addressed to the address of the Executive on the books and records of the Bank at the time of the delivery of such notice, and properly addressed to the Bank if addressed to the Board of Directors,
Bank of Wilmington, 1117 Military Cutoff Road, Wilmington, North Carolina 28405. 
  
 7.13 Payment of Legal Fees. The Bank is aware that after a Change in Control management of the Bank could cause or attempt to cause the Bank to refuse to comply with its obligations under this Agreement, or
could institute or cause or attempt to cause the Bank to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt to take other action to deny Executive the benefits intended under this Agreement. In these
circumstances, the purpose of this Agreement would be frustrated. It is the intention of the Bank that the Executive not be required to incur the expenses associated with the enforcement of her rights under this Agreement, whether by litigation or
other legal action, because the cost and expense thereof would substantially detract from the benefits intended to be granted to the Executive hereunder. It is the intention of the Bank that the Executive not be forced to negotiate settlement of her
rights under this Agreement under threat of incurring expenses. Accordingly, if after a Change in Control occurs it appears to the Executive that (a) the Bank has failed to comply with any of its obligations under this Agreement, or
(b) the Bank or any other person has taken any action to declare this Agreement void or unenforceable, or instituted any litigation or other legal action designed to deny, diminish, or to recover from the Executive the benefits intended to be
provided hereunder, the Bank irrevocably authorizes the Executive from time to time to retain counsel of her choice, at the expense of the Bank as provided in this Section 7.13, to represent the Executive in connection with the initiation or
defense of any litigation or other legal action, whether by or against the Bank or any director, officer, stockholder, or other person affiliated with the Bank, in any jurisdiction. Notwithstanding any existing or previous attorney- 
  

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 client relationship between the Bank and any counsel chosen by the Executive under this Section 7.13, the Bank
irrevocably consents to the Executive entering into an attorney-client relationship with that counsel, and the Bank and the Executive agree that a confidential relationship shall exist between the Executive and that counsel. The fees and expenses of
counsel selected from time to time by the Executive as provided in this section shall be paid or reimbursed to the Executive by the Bank on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by such
counsel in accordance with such counsel’s customary practices, up to a maximum aggregate amount of $100,000, whether suit be brought or not, and whether or not incurred in trial, bankruptcy, or appellate proceedings. The Bank’s obligation
to pay the Executive’s legal fees provided by this Section 7.13 operates separately from and in addition to any legal fee reimbursement obligation the Bank may have with the Executive under any separate employment, severance, or other
agreement between the Executive and the Bank. 
  
 7.14
Termination or Modification of Agreement Because of Changes in Law, Rules or Regulations. The Bank is entering into this Agreement on the assumption that certain existing tax laws, rules, and regulations will continue in effect in their
current form. If that assumption materially changes and the change has a material detrimental effect on this Agreement, then the Bank reserves the right to terminate or modify this Agreement accordingly, subject to the written consent of the
Executive, which shall not be unreasonably withheld. This Section 7.14 shall become null and void effective immediately upon a Change in Control. 
  
 Article 8 
 Administration of
Agreement 
  
 8.1 Plan Administrator Duties. This
Agreement shall be administered by a Plan Administrator consisting of the board or such committee or person(s) as the board shall appoint. The Executive may be a member of the Plan Administrator. The Plan Administrator shall also have the discretion
and authority to (a) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Agreement and (b) decide or resolve any and all questions, including interpretations of this Agreement, as may
arise in connection with the Agreement. 
  
 8.2 Agents. In
the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel,
who may be counsel to the Bank. 
  
 8.3 Binding Effect of
Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation, and application of the Agreement and the rules and regulations promulgated
hereunder shall be final and conclusive and binding upon all persons having any interest in the Agreement. No Executive or Beneficiary shall be deemed to have any right, vested or nonvested, regarding the continued use of any previously adopted
assumptions, including but not limited to the discount rate and calculation method described in Section 1.1. 
  

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 8.4 Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the members of the
Plan Administrator against any and all claims, losses, damages, expenses, or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its
members. 
  
 8.5 Bank Information. To enable the Plan
Administrator to perform its functions, the Bank shall supply full and timely information to the Plan Administrator on all matters relating to the date and circumstances of the retirement, Disability, death, or Termination of Employment of the
Executive and such other pertinent information as the Plan Administrator may reasonably require. 
  
 IN WITNESS WHEREOF, the Executive and a duly authorized officer of the Bank have
executed this Salary Continuation Agreement as of the date first written above. 
  

					
	EXECUTIVE:	 	BANK:
	 	 	Bank of Wilmington
			
	 /s/ Lynn M. Burney

	 	By:	 	 /s/ Cameron Coburn

	Lynn M. Burney	 	Its:	 	Chairman, President and CEO

  

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 BENEFICIARY DESIGNATION 
 BANK OF WILMINGTON 
 SALARY CONTINUATION AGREEMENT 
  
 I, Lynn M. Burney, designate the following as beneficiary of any death benefits under this Salary Continuation Agreement – 
  

			
	   Primary:
	 	 
	  

	 	.
	   Contingent:
	 	 
	  

	 	.

  
 Note: To name a
trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement. 
  
 I understand that I may change these beneficiary designations by filing a new written designation with the Bank. I further understand that the
designations will be automatically revoked if the beneficiary predeceases me, or if I have named my spouse as beneficiary and our marriage is subsequently dissolved. 
  

			
	   Signature:
	  	

	 	  	 Lynn M. Burney

		
	   Date:
	  	                    , 2005
	
	   Accepted by the Bank this      day of
                    , 2005.

  
 By: 
  
 Print Name: 
  
 Title: 
  

 14 

 SCHEDULE A 
 BANK OF WILMINGTON 
 SALARY CONTINUATION AGREEMENT 
  
 Lynn M. Burney 
  

																		
	 Plan
 Year

	  	 Plan Year
ending
December
 31,

	  	Age at
Plan
Year
end

	  	Accrual
Balance @
6.25% (1)

	 	 	Early Termination
annual benefit
payable at Normal
Retirement Age (2)

	  	 Disability annual
benefit payable
 at Normal
Retirement Age (2)

	  	Change-in-Control
benefit payable in
a lump sum (3)

	 1
	  	2005	  	58	  	$	64,573	 	 	$	9,166	  	$	9,166	  	$	64,573
	 2
	  	2006	  	59	  	$	155,503	 	 	$	20,739	  	$	20,739	  	$	155,503
	 3
	  	2007	  	60	  	$	252,281	 	 	$	31,613	  	$	31,613	  	$	252,281
	 4
	  	2008	  	61	  	$	355,285	 	 	$	41,830	  	$	41,830	  	$	355,285
	 5
	  	2009	  	62	  	$	464,914	 	 	$	51,429	  	$	51,429	  	$	464,914
	 6
	  	2010	  	63	  	$	581,595	 	 	$	60,448	  	$	60,448	  	$	581,595
	 7
	  	2011	  	64	  	$	705,781	 	 	$	68,922	  	$	68,922	  	$	705,781
	 	  	May 2012	  	65	  	$	759,854 4	)	 	$	72,300	  	$	72,300	  	$	759,854
	 8
	  	2012	  	65	  	$	744,931	 	 	 	 	  	 	 	  	 	 
	 9
	  	2013	  	66	  	$	718,051	 	 	 	 	  	 	 	  	 	 
	 10
	  	2014	  	67	  	$	689,442	 	 	 	 	  	 	 	  	 	 
	 11
	  	2015	  	68	  	$	658,993	 	 	 	 	  	 	 	  	 	 
	 12
	  	2016	  	69	  	$	626,586	 	 	 	 	  	 	 	  	 	 
	 13
	  	2017	  	70	  	$	592,094	 	 	 	 	  	 	 	  	 	 
	 14
	  	2018	  	71	  	$	555,384	 	 	 	 	  	 	 	  	 	 
	 15
	  	2019	  	72	  	$	516,312	 	 	 	 	  	 	 	  	 	 
	 16
	  	2020	  	73	  	$	474,727	 	 	 	 	  	 	 	  	 	 
	 17
	  	2021	  	74	  	$	430,467	 	 	 	 	  	 	 	  	 	 
	 18
	  	2022	  	75	  	$	383,361	 	 	 	 	  	 	 	  	 	 
	 19
	  	2023	  	76	  	$	333,224	 	 	 	 	  	 	 	  	 	 
	 20
	  	2024	  	77	  	$	279,863	 	 	 	 	  	 	 	  	 	 
	 21
	  	2025	  	78	  	$	223,069	 	 	 	 	  	 	 	  	 	 
	 22
	  	2026	  	79	  	$	162,622	 	 	 	 	  	 	 	  	 	 
	 23
	  	2027	  	80	  	$	98,287	 	 	 	 	  	 	 	  	 	 
	 24
	  	2028	  	81	  	$	29,814	 	 	 	 	  	 	 	  	 	 
	 25
	  	2029	  	82	  	$	0	 	 	 	 	  	 	 	  	 	 

	(1)	Calculations are approximations. Benefit calculations are based on prior year-end accrual balances. The accrual balance reflects payment at the beginning of each month.

  
  

 15 

	(2)	The Early Termination benefit and the Disability benefit continue for the Executive’s lifetime. The Early Termination and Disability benefits are calculated as the fixed annual
amount that fully amortizes the Accrual Balance existing at the end of the month immediately preceding the month in which Termination of Employment occurs, amortizing that Accrual Balance over the period beginning with the Executive’s Normal
Retirement Age and ending when the Executive attains age 82 and taking into account interest at the discount rate or rates established by the Plan Administrator. Using a standard discount rate (6.25%), Early Termination and Disability benefits are
shown for illustrative purposes only and are based on the assumption that Termination of Employment occurs immediately after the final day of a Plan Year. The Early Termination and Disability benefits shown also assume the Executive’s
Termination of Employment occurs more than six months before the Executive’s Normal Retirement Age, and that the Early Termination benefit or the Disability benefit therefore becomes payable beginning in the month after the Executive attains
the Normal Retirement Age. 

	(3)	The benefit payable under Section 2.4 for a Change in Control is the Accrual Balance that exists when the Change in Control occurs. The benefit is shown for illustrative
purposes only. 

	(4)	The Executive attains Normal Retirement Age on May 5, 2012. The first monthly normal retirement benefit payment will be made on June 1, 2012. 

  
 If there is a contradiction between the terms of the Agreement and Schedule A
concerning the actual amount of a particular benefit amount due the Executive under Section 2.2, 2.3, or 2.4 of the Agreement, then the actual amount of the benefit set forth in the Agreement shall control. If the Plan Administrator changes the
discount rate employed for purposes of calculating the Accrual Balance, the Plan Administrator shall prepare or cause to be prepared a revised Schedule A, which shall supersede and replace any and all Schedules A previously prepared under or
attached to the Agreement. 
  

 16Change in Control Agreement

 Exhibit 10.16 
  
 STATE OF NORTH CAROLINA 
  
 COUNTY OF NEW HANOVER 
  
 CHANGE OF CONTROL AGREEMENT 
  
 THIS CHANGE OF CONTROL AGREEMENT (hereinafter referred to as this “Agreement”) is entered into as of March 22, 1999, by and between BANK OF WILMINGTON, Wilmington, North Carolina
(“BOW”) and LARRY W. FLOWERS (“Officer”). 
  
 WHEREAS, Officer is employed by BOW as its Business Banking Officer in charge of Lending; and 
  
 WHEREAS, the services of Officer, Officer’s experience and knowledge of the affairs of BOW and reputation and contacts in the industry are
extremely valuable to BOW; and 
  
 WHEREAS, BOW wishes to
attract and retain such well-qualified executives and it is in the best interests of BOW and of Officer to secure the continued services of Officer notwithstanding any Change of Control of BOW; and 
  
 WHEREAS, BOW considers the establishment and maintenance of a sound
and vital management team to be part of its overall corporate strategy and to be essential to protecting and enhancing the best interests of BOW and its shareholders; and 
  
 WHEREAS, the parties desire to enter into this Agreement to provide Officer with security in the event of a Change of
Control of BOW and to insure the continued loyalty of officer during any such Change of Control in order to maximize shareholder value as well as the continued safe and sound operation of BOW. 
  
 WHEREAS, both Officer and BOW acknowledge and agree that this
agreement is not an employment agreement but is limited to circumstances giving rise to a Change of Control of BOW as set forth herein. 

 NOW, THEREFORE, for and in consideration of the premises and mutual promises, covenants, and
conditions hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereby do agree as follows: 
  
 1. Term. The initial term of this Agreement shall be for the period commencing upon the date of execution of
this Agreement (the “Effective Date”) and ending three (3) calendar years from the Effective Date of this Agreement. At the end of the first twelve months from the Effective Date of this Agreement, the term shall be extended for an
additional twelve (12) month period of time unless prior to the expiration of the first twelve (12) months of the term of this Agreement, BOW, through action of its Board of Directors, shall have given Officer written notice that such
twelve (12) month extension shall not occur. Similarly, at the end of each twelve (12) month period of time thereafter, the term of this Agreement shall be extended an additional twelve (12) month period unless such written notice
shall have been given to the Officer. 
  
 2. Payment in
Certain Events. 
  
 (a) If at the
Effective Date of, or at any time within twelve (12) months following, a “Change of Control”: 
  
 (i) BOW terminates Officer’s employment other than for “Cause” (as defined in Paragraph 4 below), or, 
  
 (ii) a “Termination Event” (as defined
below) occurs and, thereafter, Officer voluntarily terminates his own employment with BOW in the manner described below, then (subject to the limitations set forth herein) Officer shall be entitled to receive from BOW, and BOW shall be obligated to
pay or cause to be paid to Officer (i) an amount equal to one hundred percent (100%) of the base salary and short term bonus paid by BOW to Officer during the immediately preceding twelve (12) months, and, (ii) to cause the
immediate vesting of all employee benefits that have been credited to Officer by virtue of Officer’s participation in any non-qualified plan and which benefits had not, as of such date, become one hundred percent (100%) vested. All such
benefits under all such employment benefit plans shall be paid to Officer in accordance with the terms of such plans without regard to any provision of any such plans concerning length of time for vesting of benefits for Officer. 
  
 (b) For purposes of this Agreement, a
“Termination Event” shall be deemed to have occurred if BOW’s obligations under this Agreement are not assumed (by agreement, operation of law or otherwise) by a Successor (as defined hereinafter) in connection with the transaction or
event in which such Person (as defined hereinafter) or entity becomes a 

  

 2 

 
Successor to BOW, or if at the Effective Date of or within twelve (12) months following a Change of Control: 
  
 (i) Officer’s executive position, duties,
responsibilities or reporting responsibilities with BOW in effect at the time of the Change of Control are, as the case may be, either eliminated, diminished, lessened or diluted, unless Officer expressly agrees, in writing, to any such change;

  
 (ii) Officer’s annual base salary
rate is reduced below the amount in effect as of the Effective Date of a Change of Control or as the same shall have been increased from time to time following such Effective Date; 
  
 (iii) Officer’s life insurance, medical or hospitalization insurance, disability insurance,
grants or rights under any stock option plans, stock purchase plans, deferred compensation plans, management retention plans, retirement plans, or similar plans or benefits being provided by BOW to Officer as of the Effective Date of the Change of
Control are reduced in their level, scope, or coverage, or any such insurance, plans, or benefits are eliminated, unless such reduction or elimination applies proportionately to all salaried employees of BOW who participated in such benefits prior
to such Change of Control; or 
  
 (iv)
Officer is transferred to a job location which is more than fifty (50) miles (by most direct highway route) from his principal work location at the Effective Date of the Change of Control, without Officer’s express written consent.

  
 A Termination Event shall be deemed to have occurred on the
date such action or event is implemented or takes effect. However, notwithstanding anything contained herein to the contrary, no such action or event shall be considered a “Termination Event” if, prior to the occurrence of such event,
Officer and BOW agree in writing that the same shall not be treated as a Termination Event for purposes of this Agreement 
  
 (c) For the purposes of this Agreement, a “Change of Control” shall be deemed to have occurred if: 
  
 (i) any “Person” or “Group” (as
defined in or pursuant to Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), but not including BOW, or any “employee benefit plan” (as defined in or pursuant to the Employee Retirement
Income Security Act of 1974, 29 U.S.C. §1002(3), and as used herein 

  

 3 

 
“Person” or “Group”) becoming the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act) or otherwise acquiring
control, directly or indirectly, of securities of BOW representing twenty-five percent (25%) or more of the voting power of BOW’s then outstanding securities; (ii) the acquisition by any Person or Group in any manner of the ability to
elect, or to control the election, of a majority of the directors of BOW; (iii) the merger of BOW into another entity, the merger of any entity into BOW or the acquisition of assets by BOW, in any such case with the result that the beneficial
owners of BOW’s outstanding securities immediately prior to such transaction do not beneficially own more than sixty percent (60%) of BOW’s outstanding securities after the consummation of such transaction; (iv) the sale or other
transfer of more than fifty percent (50%) of the assets of BOW to any entity not controlled by BOW; (v) the consummation of any transaction by BOW that results (A) in the majority of the Board of Directors of BOW after the
consummation of such transaction not being composed of Incumbent Directors, or (B) the beneficial owners of BOW’s outstanding securities immediately prior to the consummation of such transaction not beneficially owning more than sixty
percent (60%) of BOW’s outstanding securities after such transaction; or (vi) the occurrence of any other event or circumstance which is not described in the foregoing provisions of this Section 2(c) but which the Board
determines affects control of BOW and constitutes a Change of Control for purposes of this Agreement. The term “Incumbent Director” shall mean any director who as of the date of execution of this Agreement was a member of the Board, or any
individual becoming a member of the Board subsequent to the date of execution of this Agreement whose election by BOW shareholders was recommended by at least two-thirds (2/3) of the then Incumbent Directors on the Board. 
  
 Notwithstanding the other provisions of this Paragraph 2, for purposes of
this Agreement, the term “Change of Control” shall not include a transaction approved by BOW’s Board of Directors which results in BOW merging with, transferring its assets to, or becoming the subsidiary of, a corporation newly formed
at the direction of BOW’s Board of Directors for the purpose of such transaction or serving as a bank holding company for BOW, and in connection with which transaction BOW’s shareholders (other than those who exercise statutory rights of
dissent and appraisal) become the holders of substantially all of the voting stock of such 

  

 4 

 
corporation. Further, notwithstanding the other provisions of this Paragraph 2, a transaction or event shall not be considered a Change of Control if, prior
to the consummation or occurrence of such transaction or event, Officer and BOW agree in writing that the same shall not be treated as a Change of Control for purposes of this Agreement. 
  
 (d) For purposes of this Agreement, all references to “BOW” shall include any
“Successor” (as defined below) to BOW which shall have assumed and become liable for BOW’s obligations hereunder (whether such assumption is by agreement, operation of law or otherwise). “Successor” refers to any Person or
entity (corporate or otherwise) into or with which BOW (or any such Successor) shall be merged or consolidated or to which all or substantially all of BOW’s (or any such Successor’s) assets shall be transferred in any manner. 

 
 (e) If Officer’s employment is terminated by
BOW without Cause prior to the effective time of a Change of Control but following the date on which the Board of Directors of BOW takes action to approve an agreement (including any definitive agreement or an agreement in principle) relating to a
Change of Control, then, for purposes of this Agreement, such termination of employment shall be deemed to have occurred at the effective time of the Change of Control. 
  
 (f) Cash amounts payable pursuant to this Paragraph 2 shall be paid in one lump sum payment which
shall be due and payable by BOW within forty-five (45) days following the “Termination Date” (as defined below) or twelve (12) equal monthly payments as determined by the Officer. For purposes of this Agreement, the
‘Termination Date” will be the effective date of any termination of Officer’s employment which gives rise to BOW’s payment obligation under this Paragraph 2 (whether such termination is effected by BOW without Cause or
voluntarily by Officer following the occurrence of a Termination Event). 
  
 (g) In order to become entitled to any payments under this Paragraph 2 on account of a Termination Event, Officer must effectively terminate his employment with BOW within twelve (12) months following the
date of occurrence of such Termination Event. For purposes of this Agreement, the Termination Date relating to Officer’s voluntary termination of his employment following such a Termination Event shall be the date of delivery by Officer to BOW
(or to any Successor) of a written notice of termination which describes the Change of Control and Termination Event which have occurred. If the Officer does not so terminate his 

  

 5 

 
employment with BOW within such twelve (12) month period, the Officer shall thereafter have no further rights hereunder with respect to that Termination
Event, but shall retain rights, if any, hereunder with respect to any other Termination Event occurring within twelve (12) months following the Change of Control and as to which such period has not expired. 
  
 (h) It is the intent of the parties hereto that all
payments made pursuant to this Agreement be deductible by BOW for federal income tax purposes and not result in the imposition of an excise tax on Officer. Notwithstanding anything contained in this Agreement to the contrary, any payments to be made
to or for the benefit of Officer which constitute “parachute payments” as that term is defined in Section 280G of the Internal Revenue Code of 1986 (the “Code”), shall be modified or reduced to the extent necessary to avoid
the imposition of an excise tax on Officer under Section 4999 of the Code or the disallowance of a deduction to BOW under Section 280G of the Code. 
  

(i) In the event any dispute shall arise between the Officer and BOW as to the terms or interpretation of this Agreement,
including this Paragraph 2, whether instituted by formal legal proceedings, arbitration, or otherwise, including any action taken by the Officer to enforce the terms of this Paragraph 2 or in defending against any action taken by BOW, BOW shall
reimburse the Officer for all costs and expenses, proceedings or actions, in the event the Officer prevails in any such action. 
  
 3. Exclusions. Notwithstanding anything contained herein to the contrary, it is expressly understood and agreed by Officer that: 

 
 (a) Officer shall not be entitled to any payments
under this Agreement in the event (i) BOW terminates Officer’s employment for Cause, or (ii) Officer voluntarily terminates his employment with BOW other than as provided in Paragraph 2(g) above, or
(iii) Officer’s employment with BOW terminates or is terminated due to his death, “Retirement” (as defined below), or “Disability” (as defined below); and, 
  
 (b) Officer’s employment with BOW is on an
“at will” basis and this Agreement does not constitute an employment contract or an agreement by BOW to employ Officer for any particular period of time or in any particular capacity. Nothing in this Agreement is intended or should be
interpreted to confer upon Officer the right to continue in the employ of BOW or to interfere with or restrict in any way the right of BOW to discharge Officer or 

  

 6 

 
terminate his employment at any time or for any reason whatsoever, with or without Cause, and without any obligation or liability to Officer except as herein
provided, it being the intent of the parties hereto only to provide for payment of the severance benefits specified herein in the event of the termination of Officer’s employment with BOW under the circumstances set forth herein. 
  
 4. Other Definitions. 
  
 (a) For purposes of this Agreement, BOW shall have
“Cause” to terminate Officer’s employment as a result of: 
  
 (i) Officer’s continued failure (following reasonable notice of such failure and an opportunity to correct performance deficiencies) to perform or discharge the duties of his employment in a reasonably
competent and satisfactory manner, or a determination by BOW, in good faith, that Officer is engaging or has engaged in willful misconduct or conduct which is detrimental to the business prospects of BOW or which has had or likely will have a
material adverse effect on BOW’s business or reputation; 
  
 (ii) The violation by Officer of any applicable federal or state law, or any applicable rule, regulation, order or statement of policy promulgated by any governmental agency or authority having jurisdiction
over BOW or any of its affiliates or subsidiaries (any of the foregoing being hereinafter referred to as a “Regulatory Authority”, which will include, without limitation, the Federal Deposit Insurance Corporation, the North Carolina
Banking Commissioner, the North Carolina Banking Commission, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of Richmond, or any other banking regulator), which results from Officer’s gross negligence, willful
misconduct or intentional disregard of such law, rule, regulation, order or statement of policy and results in any substantial damage, monetary or otherwise, to BOW or any of its affiliates or subsidiaries or to their reputation; 
  
 (iii) The commission in the course of Officer’s
employment with BOW of an act of fraud, embezzlement, theft or proven personal dishonesty (whether or not resulting in criminal prosecution or conviction); 
  
 (iv) The conviction of Officer of any felony or any criminal offense involving dishonesty or breach of trust, or the occurrence of
any event described in Section 19 of the Federal Deposit Insurance Act or any other event or circumstance which 

  

 7 

 
disqualifies Officer from serving as an employee or executive officer of, or a party affiliated with, BOW; or, in the event Officer becomes unacceptable to,
or is removed, suspended or prohibited from participating in the conduct of BOW’s affairs (or if proceedings for that purpose are commenced) by, any Regulatory Authority; or 
  
 (v) The occurrence of any event believed by BOW, in good faith, to have resulted in Officer being
excluded from coverage, or having coverage limited as to Officer as compared to other covered officers or employees, under BOW’s then current “blanket bond” or other fidelity bond or insurance policy covering its directors, officers
or employees. 
  
 (b)
“Disability” means the absence of Officer from his employment duties on a full-time basis for one hundred eighty (180) consecutive business days as a result of incapacity due to physical or mental illness or injury (subject to
BOW’s obligations and Officer’s rights under (i) Title I of the Americans with Disabilities Act, §504 of the Rehabilitation Act, and the Family and Medical Leave Act, and to (ii) the vacation leave, disability leave, sick
leave and any other leave policies of BOW). 
  
 (c) “Retirement” means Officer’s retirement (whether early, normal or delayed retirement) under the terms of any retirement benefit plan generally applicable to BOW’s salaried employees. 
  
 5. Regulatory Requirements. Notwithstanding anything contained
in this Agreement to the contrary, it is understood and agreed that BOW (or any of its successors in interest) shall not be required to make any payment or take any action under this Agreement if: (a) BOW is declared by any Regulatory
Authority to be insolvent, in default or operating in an unsafe or unsound manner, or if 
  
 (b) in the opinion of counsel to BOW such payment or action (i) would be prohibited by or would violate any provision of state
or federal law applicable to BOW, including without limitation, the Federal Deposit Insurance Act as now in effect or hereafter amended, (ii) would be prohibited by or would violate any applicable rules, regulations, orders or formal statements
of policy, whether now existing or hereafter promulgated, of any Regulatory Authority, or (iii) otherwise is prohibited by any Regulatory Authority. 
  
 6. Termination of Agreement. Notwithstanding anything contained herein to the contrary, this Agreement automatically shall terminate and
become null and void upon any 

  

 8 

 
termination of Officer’s employment with BOW other than a termination of employment which results in BOW’s payment obligation provided for under
Paragraph 2(a) above. Following any such termination of this Agreement, it shall be of no further force or effect and Officer shall have no further rights hereunder. 
  
 7. Successors and Assigns. This Agreement shall inure to the benefit of and be binding on Officer and his
heirs, successors and assigns, and on BOW and any corporate or other successor to BOW which shall acquire, directly or indirectly, by conversion, merger, consolidation, purchase, share exchange, or otherwise, all or substantially all of the assets
of BOW. BOW shall cause its obligations under this Agreement to be expressly assumed by any Person or entity that becomes a Successor to BOW. However, BOW’s failure to obtain any such express assumption shall have no effect on the obligations
of any such Successor to the extent that such Successor is deemed to have assumed and become liable for BOW’s obligations hereunder by operation of law. Notwithstanding anything contained herein to the contrary, in no event may Officer transfer
or assign his rights under this Agreement to any other person without the prior written consent of BOW. 
  
 8. Modification; Waiver; Amendments. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing and signed by the Officer and BOW, except as herein otherwise provided. No waiver by either party hereto, at any time, of any breach by the other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No amendments or additions to this Agreement shall be binding unless in
writing and signed by both parties, except as herein otherwise provided. 
  
 9. Applicable Law. This Agreement shall be governed in all respects, whether as to validity, construction, capacity, performance, or otherwise, by the laws of North Carolina, except to the extent that
federal law shall be deemed to apply. The parties hereto agree that any action relating to this Agreement shall be instituted and prosecuted in the Courts of New Hanover County, North Carolina, and each party hereto does hereby waive any and all
defenses relating to venue and jurisdiction over the person. 
  

 9 

 10. Severability. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. 
  
 IN TESTIMONY WHEREOF, BOW has caused this instrument to be executed under seal and in such form as to be binding, all by authority of its Board of
Directors first duly given; and the individual party hereto has set said party’s hand hereto and has adopted as said party’s seal the typewritten word “SEAL” appearing beside said party’s name, this the day and year first
above written. 
  

			
	BANK OF WILMINGTON
		
	By:	 	/s/    J. M. COBURN        
	 	 	Chairman

  

			
	ATTEST:
		
	 	 	/s/    MICHELLE
SOUTHERLAND        
	 	 	Corporate Secretary

  

					
	 	 	 
			
	 	 	/s/    LARRY W. FLOWERS        	 	(SEAL)
	 	 	Officer	 	 

  

 10 

 STATE OF NORTH CAROLINA 
 COUNTY OF NEW HANOVER 
  
 AMENDMENT NO. 1 TO

 CHANGE OF CONTROL AGREEMENT 
  
 THIS AMENDMENT NO. 1 TO CHANGE OF CONTROL AGREEMENT (the “Amendment”) is made and entered into as of this 21 day of March, 2002, by and
between BANK OF WILMINGTON, Wilmington, North Carolina (“BOW”) and LARRY W. FLOWERS (the “Officer”). 
  
 WHEREAS, BOW and the Officer previously entered into a Change of Control Agreement dated as of March 22, 1999 (the “Agreement”)
under which BOW agreed to make certain payments to the Officer in the event that, during the term of the Agreement, the Officer’s employment with BOW is terminated under certain circumstances described therein in conjunction with a “Change
of Control” as defined therein; and, 
  
 WHEREAS, BOW
and the Officer have mutually agreed to modify the Agreement as described herein. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties, and for other good and valuable considerations to each given by the other, BOW and the Officer mutually agree that the
Agreement be, and it hereby is, modified and amended as follows: 
  
 1. The text of Paragraph 2 (a)(ii) of the Agreement is deleted in its entirety and the following new text is inserted in its place and stead: 
  

“(ii) a “Termination Event” (as defined below) occurs and, thereafter, Officer voluntarily terminates his own employment with BOW
in the manner described below, then (subject to the limitations set forth herein) Officer shall be entitled to receive from BOW, and BOW shall be obligated to pay or cause to be paid to Officer (i) an amount equal to two hundred percent
(200%) of the base salary and short term bonus paid by BOW to Officer during the immediately preceding twelve (12) months, and, (ii) to cause the immediate vesting of all employee benefits that have been credited to Officer by virtue
of Officer’s participation in any non-qualified plan and which benefits had not, as of such date, become one hundred percent (100%) vested. All such benefits under all such employment benefit plans shall be paid to Officer in accordance
with the terms of such plans without regard to any provision of any such plans concerning length of time for vesting of benefits for Officer.” 
  
 2. The text of Paragraph 2(f) of the Agreement is deleted in its entirety and the following new text is inserted in its place and stead:

  
 “(f) Cash amounts payable pursuant to this
Paragraph 2 shall be paid in one lump sum payment which shall be due and payable by BOW within forty-five (45) days following the “Termination Event” (as defined below) or twenty-four (24) equal monthly payments as determined by
the Officer. For purposes of this Agreement, the “Termination Date” will be the effective date of any termination of Officer’s employment which gives rise to BOW’s payment obligation under this Paragraph 2 (whether such
termination is effected by BOW without Cause or voluntarily by Officer following the occurrence of a Termination Event).” 

 3. Except as modified and amended as expressly described above, the Agreement shall be and remain
in full force and effect in accordance with its original terms. 
  
 IN TESTIMONY WHEREOF, BOW has caused this Amendment to be executed under seal and in such form as to be binding, all by authority of its Board of Directors first duly given, and the Officer has executed this Amendment and adopted as
his or her seal the typewritten work “SEAL” appearing beside his or her name, all as of this the day and year first above written. 
  

											
	 	 	 	 	BANK OF WILMINGTON	 	 
				
	[Corporate Seal]	 	 	 	 By:
	 	/s/    JOHN CAMERON
COBURN        
	 	 	 	 	 	 	 	 	 John Cameron Coburn
 President and Chief Executive Officer

				
	ATTEST:-	 	 	 	 	 	 
						
	 	 	/s/    MICHELLE SOUTHERLAND        	 	 	 	 	 	 	 	 
	 	 	Secretary	 	 	 	 	 	 	 	 
				
	 	 	 	 	OFFICER:	 	 
					
	 	 	 	 	 	 	/s/    LARRY W. FLOWERS        	 	(SEAL)
	 	 	 	 	 	 	 	 	Larry W. Flowers	 	 

  

 2 

  
 AMENDMENT
NO. 2 OF CHANGE OF CONTROL AGREEMENT 
  
 This AMENDMENT NO. 2 OF CHANGE OF CONTROL
AGREEMENT (this “Amendment”) is entered into as of this 23 day of June, 2005 by and between Bank of Wilmington, a North Carolina bank, and Larry W. Flowers, its Executive Vice President and Chief
Credit Officer (the “Officer”). 
  
 WHEREAS, the Officer and Bank of Wilmington entered into a Change of Control Agreement dated as of March 22, 1999, which agreement was amended by Amendment No. 1 in March 2002 (as amended, the
“Change of Control Agreement”), 
  
 WHEREAS, the parties desire now to amend certain provisions of the Change of Control Agreement, consistent with the terms of section 8 of that agreement, and 
  
 WHEREAS, the parties intend that the
amendments of the Change of Control Agreement made by this Amendment shall become effective immediately, and that the Change of Control Agreement shall, as amended, remain in full force and effect according to its terms. 
  
 NOW THEREFORE, in
consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows. 
  
 1. Paragraph 2(a), clause (ii). Clause (ii) of Paragraph 2(a) of the Change of Control Agreement, reproduced
below but with the text struck through, shall be deleted in its entirety and replaced by a new clause (ii) of Paragraph 2(a). 
  
 (ii) a “Termination Event” (as defined below) occurs and, thereafter, Officer voluntarily terminates his own employment with BOW
in the manner described below, then (subject to the limitations set forth herein) Officer shall be entitled to receive from BOW, and BOW shall be obligated to pay or cause to be paid to Officer (i) an amount equal to two hundred percent
(200%) of the base salary and short term bonus paid by BOW to Officer during the immediately preceding twelve (12) months, and, (ii) to cause the immediate vesting of all employee benefits that have been credited to Officer by virtue
of Officer’s participation in any non-qualified plan and which benefits had not, as of such date, become one hundred percent (100%) vested. All such benefits under all such employment benefit plans shall be paid to Officer in accordance
with the terms of such plans without regard to any provision of any such plans concerning length of time for vesting of benefits for Officer. 

 The following new clause (ii) of Paragraph 2(a) shall replace the deleted clause (ii) of
Paragraph 2(a). 
  
 (ii) a “Termination
Event” (as defined below) occurs and, thereafter, Officer voluntarily terminates his own employment with BOW in the manner described below, then (subject to the limitations set forth herein) Officer shall be entitled to receive from BOW, and
BOW shall be obligated to pay or cause to be paid to Officer (a) an amount equal to 200% of the base salary and short term bonus paid by BOW to Officer during the immediately preceding 12 months, and (b) specific change-in-control benefits
Officer is entitled to under any non-qualified plan in which Officer participates, and (c) if any non-qualified plan in which Officer participates fails to specify change-in-control benefits, then Officer shall be immediately vested in all
employee benefits that have been credited to Officer by virtue of Officer’s participation in the non-qualified plan and which benefits had not, as of such date, become 100% vested. All such benefits under all such employment benefit plans shall
be paid to Officer in accordance with the terms of such plans without regard to any provision of any such plans concerning length of time for vesting of benefits for Officer. 
  
 2. Paragraph 2(f). Paragraph 2(f) of the Change of Control Agreement, reproduced below but with the text struck
through, shall be deleted in its entirety and replaced by a new Paragraph 2(f). 
  
 (f) Cash amounts payable pursuant to this Paragraph 2 shall be paid in one lump sum payment which shall be due and payable by BOW within
forty-five (45) days following the “Termination Event” (as defined below) or twenty-four (24) equal monthly payments as determined by the Officer. For purposes of this Agreement, the “Termination Date” will be the
effective date of any termination of Officer’s employment which gives rise to BOW’s payment obligation under this Paragraph 2 (whether such termination is effected by BOW without Cause or voluntarily by Officer following the occurrence of
a Termination Event). 
  
 The following new Paragraph 2(f) shall
replace the deleted Paragraph 2(f). 
  
 (f) BOW
shall pay to the Officer cash amounts payable under this Paragraph 2 in one lump sum within three days after the Officer’s “Termination Date.” For purposes of this Agreement, the “Termination Date” will be the effective date
of any termination of Officer’s employment which gives rise to BOW’s payment obligation under this Paragraph 2 (whether such termination is effected by BOW without Cause or voluntarily by Officer following the occurrence of a Termination
Event.) 
  
 3. Paragraph 2(h). Paragraph 2(h) of the Change
of Control Agreement, reproduced below but with the text struck through, shall be deleted in its entirety. 
  
 (h) It is the intent of the parties hereto that all payments made pursuant to this Agreement be deductible by BOW for federal income tax
purposes and not 

 
result in the imposition of an excise tax on Officer. Notwithstanding anything contained in this Agreement to the contrary, any payments to be made to or for
the benefit of Officer which constitute “parachute payments” as that term is defined in Section 280G of the Internal Revenue Code of 1986 (the “Code”), shall be modified or reduced to the extent necessary to avoid the
imposition of an excise tax on Officer under Section 4999 of the Code or the disallowance of a deduction to BOW under Section 280G of the Code. 
  
 4. Deletion of Paragraph 2(i). Paragraph 2(i) of the Change of Control Agreement, reproduced below but with the text struck through, shall be
deleted in its entirety. 
  
 (i) In the event any
dispute shall arise between the Officer and BOW as to the terms or interpretation of this Agreement, including this Paragraph 2, whether instituted by formal legal proceedings, arbitration, or otherwise, including any action taken by the Officer to
enforce the terms of this Paragraph 2 or in defending against any action taken by BOW, BOW shall reimburse the Officer for all costs and expenses, proceedings or actions, in the event the Officer prevails in any such action. 
  
 5. New Paragraph 11. A new Paragraph 11 shall be added to the Change
of Control Agreement, as follows. 
  
 11.
Payment of Legal Fees after a Change in Control Occurs. BOW is aware that after a Change of Control management could cause or attempt to cause BOW to refuse to comply with the obligations under this Agreement, or could institute or cause or
attempt to cause BOW to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt to take other action to deny the Officer the benefits intended under this Agreement. In these circumstances the purpose of
this Agreement would be frustrated. It is BOW’s intention that the Officer not be required to incur the expenses associated with the enforcement of his rights under this Agreement, whether by litigation or other legal action, because the cost
and expense thereof would substantially detract from the benefits intended to be granted to the Officer hereunder. It is BOW’s intention that the Officer not be forced to negotiate settlement of his rights under this Agreement under threat of
incurring expenses. Accordingly, if after a Change of Control occurs it appears to the Officer that (a) BOW has failed to comply with any of its obligations under this Agreement, or (b) BOW or any other person has taken any action to
declare this Agreement void or unenforceable, or instituted any litigation or other legal action designed to deny, diminish, or to recover from the Officer the benefits intended to be provided to the Officer hereunder, BOW irrevocably authorizes the
Officer from time to time to retain counsel of his choice, at BOW’s expense as provided in this Paragraph 11, to represent the Officer in connection with the initiation or defense of any litigation or other legal action, whether by or against
BOW or any director, officer, stockholder, or other person affiliated with BOW, in any jurisdiction. Notwithstanding any existing or 

 
previous attorney-client relationship between BOW and any counsel chosen by the Officer under this Paragraph 11, BOW irrevocably consents to the Officer
entering into an attorney-client relationship with that counsel, and BOW and the Officer agree that a confidential relationship shall exist between the Officer and that counsel. The fees and expenses of counsel selected from time to time by the
Officer as provided in this section shall be paid or reimbursed to the Officer by BOW on a regular, periodic basis upon presentation by the Officer of a statement or statements prepared by such counsel in accordance with such counsel’s
customary practices, up to a maximum aggregate amount of $100,000, whether suit be brought or not, and whether or not incurred in trial, bankruptcy, or appellate proceedings. BOW’s obligation to pay the Officer’s legal fees provided by
this Paragraph 11 operates separately from and in addition to any legal fee reimbursement obligation BOW may have with the Officer under any separate severance, employment, salary continuation, or other agreement. Anything in this Paragraph 11 to
the contrary notwithstanding however, BOW shall not be required to pay or reimburse the Officer’s legal expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal
Deposit Insurance Corporation [12 CFR 359.3]. 
  
 6.
Counterparts. This Amendment may be executed in one or more counterparts, each of will be deemed an original, but all of which taken together will constitute one and the same document. 
  
 7. Change of Control Agreement Remains in Force. As modified and
amended by this Amendment, the Change of Control Agreement remains in full force and effect in accordance with its terms. 
  
 IN WITNESS WHEREOF, this Amendment No. 2 of Change of Control Agreement has been
executed by Larry W. Flowers and by Bank of Wilmington as of the date first written above. 
  

									
	THE OFFICER	 	 	 	BANK OF WILMINGTON
				
	/s/    LARRY W.
FLOWERS        	 	 	 	By:	 	/S/    CAMERON COBURN
	Larry W. Flowers	 	 	 	 Its:   
	 	Chairman, President and CEO

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