Document:

First Amendment to the CapitalBank Director Deferred Fee Agreement

 EXHIBIT 10.53 
 FIRST AMENDMENT 
 TO THE 
 CAPITALBANK 
 DIRECTOR DEFERRED FEE AGREEMENT 
 DATED AUGUST 12, 2003 
 FOR

 WAYNE Q. JUSTESEN 
 THIS FIRST AMENDMENT is adopted this 31st day of December, 2007, effective as of January 1, 2008 except as otherwise provided herein, by and between CapitalBank, a state-chartered commercial bank located in Greenwood, South Carolina
(the “Company”), and Wayne Q. Justesen (the “Director”). 
 The Company and the Director executed the Director Deferred
Fee Agreement on August 12, 2003 effective as of August 1, 2003 (the “Agreement”). 
 The undersigned hereby amend the
Agreement for the purpose of bringing the Agreement into compliance with Section 409A of the Internal Revenue Code. Therefore, the following changes shall be made: 
 Section 1.1 of the Agreement shall be deleted in its entirety and replaced by the following: 
  

	1.1	“Change of Control” means a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company,
as such change is defined in Section 409A of the Code and regulations thereunder. 

 Section 1.2 of the Agreement
shall be deleted in its entirety and replaced by the following: 
  

	1.2	“Code” means the Internal Revenue Code of 1986, and the implementing Treasury Regulations, rulings and pronouncements thereunder, all as may be amended from time to
time. 

 Section 1.6 of the Agreement shall be deleted in its entirety and replaced by the following: 

 

	1.6	 “Disability” means the Director: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health
plan covering employees or directors of the Company. Medical determination of Disability may be made by either the Social Security Administration or by the provider of an accident or health plan covering employees or directors of the Company
provided that the definition of “disability” applied under such disability insurance program complies with 

	 	 
the requirements of the preceding sentence. Upon the request of the plan administrator, the Director must submit proof to the plan administrator of the
Social Security Administration’s or the provider’s determination. 

 Effective as of December 31, 2007,
Section 1.10 of the Agreement shall be deleted in its entirety and replaced by the following: 
  

	1.10	“Normal Retirement Age” means the Director’s 70th birthday. 

 Section 1.11 of the Agreement shall be deleted in its entirety and replaced by the following: 
  

	1.11	“Normal Retirement Date” means the Director’s Termination of Service on or after the Normal Retirement Age. 

 Effective January 1, 2006, Section 1.12 of the Agreement shall be deleted in its entirety and replaced by the following: 
  

	 1.12
	 “Plan Year” means the twelve month period beginning on January 1st and ending on the following December 31st. 

The following Section 1.12a shall be added to the Agreement immediately following Section 1.12: 
  

	1.12a	“Specified Employee” means a service provider who, as of the date of the service provider’s Termination of Employment, death or Disability, is a key employee
(as defined in Section 416(i) of the Code without regard to paragraph 5 thereof) of the Company, which determination shall be made in accordance with Section 409A of the Code, but only if any stock of the Company is publicly traded on an
established securities market or otherwise. 

 Section 1.13 of the Agreement shall be deleted in its entirety and
replaced by the following: 
  

	1.13	“Termination of Service” means the termination of the Director’s service with the Company for reasons other than a Change of Control. Whether a Termination of
Service takes place is determined based on the facts and circumstances surrounding the termination of the Director’s service and whether the Company and the Director intended for the Director to provide significant services for the Company
following such termination. 

 The following Section 1.14 shall be added to the Agreement immediately following
Section 1.13: 
  

	1.14	 “Unforeseeable Emergency” means a severe financial hardship to the Director resulting from an illness or accident of the Director, the
Director’s spouse, or the Director’s dependent (as defined in Section 152(a) of the Code), loss of the Director’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a 

  

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result of events beyond the control of the Director. 

 Section 2.2.2 of the Agreement shall be deleted in its entirety and replaced by the following: 
  

	2.2.2	Hardship. If an Unforeseeable Emergency occurs, the Director, by written instructions to the Company, may discontinue deferrals hereunder. Any subsequent Deferral Elections
may be made only in accordance with Section 2.2 hereof. 

 Sections 4.3, 4.3.1 and 4.3.2 of the Agreement shall be
deleted in their entirety and replaced by the following: 
  

	4.3	Disability Benefit. Upon the Director experiencing a Disability prior to Normal Retirement Age, the Company shall pay to the Director the benefit described in this
Section 4.3 in lieu of any other benefit under this Agreement. 

  

	4.3.1	Amount of Benefit. The benefit under this Section 4.3 is the Deferral Account balance as of the date of such Disability. 

  

	4.3.2	Payment of Benefit. The Company shall pay the benefit to the Director in one hundred twenty (120) equal monthly installments commencing with the month following such
Disability. The Company shall credit interest at an annual rate of four percent (4.0%), compounded monthly, on the remaining account balance during any applicable installment period. 

 Sections 4.4.1 and 4.4.2 of the Agreement shall be deleted in their entirety and replaced by the following: 
  

	4.4.1	Amount of Benefit. The benefit under this Section 4.4 shall be the Deferral Account balance at the time of the Change of Control. 

  

	4.4.2	Payment of Benefit. The Company shall pay the benefit to the Director in a lump sum within 60 days after the Change of Control. 

 Section 4.5 of the Agreement shall be deleted in its entirety and replaced by the following: 
  

	4.5	 Hardship Distribution. If an Unforeseeable Emergency occurs, the Director may petition the Board to receive a distribution from the Agreement. The Board in
its sole discretion may grant such petition. If granted, the Director shall receive, within sixty (60) days, a distribution from the Agreement (i) only to the extent deemed necessary by the Board to remedy the Unforeseeable Emergency, plus
an amount necessary to pay taxes reasonably anticipated as a result of the distribution; and (ii) after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the Director’s assets (to the extent the liquidation would not itself cause severe financial hardship). In any event, the maximum amount which may be paid out pursuant to this Section 4.5 is the Deferral Account
balance as of the day that the Director petitioned the Board to receive a Hardship 

  

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Distribution under this Section. 

 The following Sections 4.6, 4.7 and 4.8 shall be added to the Agreement immediately following Section 4.5: 
  

	4.6	Restriction on Timing of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Director is considered a Specified Employee at
Termination of Employment under such procedures as established by the Company in accordance with Section 409A of the Code, benefit distributions that are made upon Termination of Employment may not commence earlier than six (6) months
after the date of such Termination of Employment, or if earlier, the date of death. Therefore, in the event this Section 2.5 is applicable to the Director, any distribution which would otherwise be paid within the first six months
following the Termination of Employment shall be accumulated and paid in a lump sum on the first day of the seventh month following the Termination of Employment, or, if earlier, within sixty (60) days from the date of the Director’s
death. All subsequent distributions shall be paid in the manner specified. 

  

	4.7	Distributions Upon Income Inclusion Under Section 409A of the Code. Upon the inclusion of any amount into the Director’s income as a result of the failure of this
non-qualified deferred compensation plan to comply with the requirements of Section 409A of the Code, to the extent such tax liability can be covered by the Director’s Deferral Account balance, a distribution shall be made as soon as is
administratively practicable following the discovery of the plan failure. 

  

	4.8	Change in Form or Timing of Distributions. All changes in the form or timing of distributions hereunder must comply with the following requirements. The changes:

  

	 	(a)	may not accelerate the time or schedule of any distribution, except as provided in Section 409A of the Code and the regulations thereunder; 

  

	 	(b)	must, for benefits distributable under Sections 4.1, 4.2, 4.3 and 4.4, delay the commencement of distributions for a minimum of five (5) years from the date the first
distribution was originally scheduled to be made; and 

  

	 	(c)	must take effect not less than twelve (12) months after the election is made. 

 The following Sections 5.2 and 5.3 shall be added to the Agreement immediately following Section 5.1.2: 
  

	5.2	Death During Distribution of a Benefit. If the Director dies after any benefit distributions have commenced under this Agreement but before receiving all such payments, the
Company shall pay the remaining Deferral Account balance at the time of the Director’s death to the Beneficiary in a lump sum within sixty (60) days following the Director’s death. 

  

	5.3	 Death After Termination of Service But Before Benefit Distributions Commence. If the Director is entitled to benefit distributions under this Agreement, but
dies prior to the commencement of said benefit distributions, the Company shall distribute the Deferral Account balance at the time of the Director’s death to the Beneficiary in a lump sum 

  

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within sixty (60) days of the Director’s death. 

 Section 7.1 of the Agreement shall be deleted in its entirety and replaced by the following: 
  

	7.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement that is in excess of the Deferrals
(i.e. Deferral Account balance less any interest credited to the Deferral Account) if the Company terminates the Director’s service for: 

  

	 	(a)	Gross negligence or gross neglect of duties to the Company 

  

	 	(b)	Commission of a felony or of a gross misdemeanor involving moral turpitude in connection with the Director’s service to the Company; or 

  

	 	(c)	Fraud, disloyalty, dishonesty or willful violation of any law or significant Company policy committed in connection with the Director’s service and resulting in an adverse
effect on the Company. 

 The Director’s Deferrals shall be paid to the Director pursuant to Section 4.2. No interest
shall be credited on the Deferrals during any applicable installment period. 
 Article 9 of the Agreement shall be deleted in its
entirety and replaced by the following: 
 Article 9 
 Amendments and Termination 
  

	9.1	Amendments. This Agreement may be amended only by a written agreement signed by the Company and the Director. However, the Company may unilaterally amend this Agreement to
conform with written directives to the Company from its auditors or banking regulators or to comply with legislative changes or tax law, including without limitation Section 409A of the Code. 

  

	9.2	Plan Termination Generally. The Company and Director may terminate this Agreement at any time. Except as provided in Section 9.3, the termination of this Agreement shall
not cause a distribution of benefits under this Agreement. Rather, upon such termination benefit distributions will be made at the earliest distribution event permitted under Article 4 or Article 5. 

  

	9.3	Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in Section 9.2, if the Company terminates this Agreement in the following
circumstances: 

  

	 	(a)	 Upon the Company’s termination and liquidation of the Agreement pursuant to irrevocable action taken within thirty (30) days before, or twelve
(12) months after a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company as described in Section 409A(2)(A)(v) of the Code, provided that all distributions
are made no later than twelve (12) months following such termination of the Agreement and further provided that all the Company’s arrangements which are substantially 

  

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similar to the Agreement are terminated so the Director and all participants in the similar arrangements are required to receive all amounts of
compensation deferred under the terminated arrangements within twelve (12) months of the termination of the arrangements; 

  

	 	(b)	Upon the Company’s termination and liquidation of the Agreement within twelve (12) months of a corporate dissolution taxed under Section 331 of the Code or with the
approval of a bankruptcy court provided that the amounts deferred under the Agreement are included in the Director’s gross income in the latest of the following years (or, if earlier, the taxable year in which the amount is actually or
constructively received): (i) the calendar year in which the Agreement terminates; (ii) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which
the distribution is administratively practical; or 

  

	 	(c)	Upon the Company’s termination and liquidation of this and all other non-account balance plans (as referenced in Section 409A of the Code) provided that (i) such
action does not occur proximate to a downturn in the financial health of the Company; (ii) all distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination, and
(iii) the Company does not adopt any new non-account balance plans for a minimum of three (3) years following the date of such termination; the Company may distribute the Deferral Account balance, determined as of the date of the
termination of the Agreement, to the Director in a lump sum subject to the above terms. 

 The following Sections 10.11 and
10.12 shall be added to the Agreement immediately following Section 10.10: 
  

	10.11	Compliance with Section 409A. This Agreement shall at all times be administered and the provisions of this Agreement shall be interpreted consistent with the
requirements of Section 409A of the Code and any and all regulations thereunder, including such regulations as may be promulgated after the Effective Date of this Agreement. 

  

	10.12	Rescission. Any modification to the terms of this Agreement that would inadvertently result in an additional tax liability on the part of the Director, shall have no effect
provided the change in the terms of the plan is rescinded by the earlier of a date before the right is exercised (if the change grants a discretionary right) and the last day of the calendar year during which such change occurred.

 The Company and the Director expressly intend that the change to the Normal Retirement Age contained in this First Amendment
to the Agreement constitute a new payment election with respect to the time and form of payment of the amounts deferred pursuant to certain transitional relief under Section 409A of the Internal Revenue Code of 1986, as amended, that was
included in Part XI.C. of the Preamble to the Proposed Treasury Regulations published at 70 Federal Register 57930, pages 57954-57955 (October 4, 2005) and extended by Section 3.02 of IRS Notice 2006-79, the Final Treasury Regulations published
at 72 Federal Register 19234, page 19272 (April 17, 2007) and again by Paragraph .02 of Section 3.01(B) of IRS Notice 2007-86 (the “Transitional Relief”). The Company shall have the authority to amend the Agreement and any election
made hereunder, retroactively if necessary, in order to effectuate the Company’s 

  

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and the Director’s intent to satisfy the requirements of the Transitional Relief. 
 By signing below, Director elects to receive the Normal Retirement Benefit under the Agreement, as amended, as of his Normal Retirement Age, as such term
is defined by this First Amendment to the Agreement. Director understands that this election is conditioned upon Director’s continued service with the Company until Director’s Normal Retirement Age. Director’s entitlement to any Early
Retirement Benefit attributable to his Termination of Service prior to his Normal Retirement Age or any other form of benefit shall be governed by and subject to the terms of the Agreement, as amended from time to time. 
 IN WITNESS OF THE ABOVE, the Company and the Director hereby consent to this First Amendment. 
  

									
	Director:	 		 	CapitalBank	 	
					
	 /s/ Wayne Q. Justesen
	 		 	By	 	 /s/ R Wesley Brewer
	 	
	Wayne Q. Justesen	 		 	Title	 	CFO	 	

  

 7CapitalBank Director Deferred Fee Agreement for Lex D. Walters

 EXHIBIT 10.54 
 CAPITALBANK 
 DIRECTOR DEFERRED FEE AGREEMENT 
 THIS AGREEMENT is made this 20th day of August, 2003, by and between CAPITALBANK, a state-chartered commercial bank, located in Greenwood, South Carolina
(the “Company”), and LEX D. WALTERS (the “Director”). 
 INTRODUCTION 
 To encourage the Director to remain a member of the Company’s Board of Directors, the Company is willing to provide to the Director a deferred fee
opportunity. The Company will pay the Director’s benefits from the Company’s general assets. 
 AGREEMENT 
 The Director and the Company agree as follows: 
 Article 1 
 Definitions 
 Whenever used in this Agreement, the following words and phrases shall have the meanings specified: 
 1.1
“Change of Control” means the first to occur of the following: 
  

	 	   a.	Any person or entity, or any two or more persons or entities acting as a group as defined in Section 13(d)(3) of the Federal Securities and Exchange Act of 1934, shall acquire
ownership of fifty(50%) percent or more of the outstanding voting stock of the Company; or 

  

	 	   b.	The acquisition of , or sale of, all or substantially all of the assets of the Company, except to an Affiliate as defined hereinbelow; or 

  

	 	   c.	The merger of the Company into another entity that is not an Affiliate as defined hereinbelow, and the Company is not the survivor of such merger. For purposes hereof, an
“Affiliate” is any entity controlling, controlled by, or under common control with the Company. For this purpose, “control” means legal or beneficial ownership of fifty (50%) percent or more of the equity or voting interests
in an entity. 

  

	 	1.2	“Code” means the Internal Revenue Code of 1986, as amended. 

	 	1.3	“Crediting Rate 1” means the lesser of 10% or the Wall Street Journal prime rate on the first business day of the Plan Year 

  

	 	1.4	“Deferral Account” means the Company’s accounting of the Director’s accumulated Deferrals plus accrued interest. 

  

	 	1.5	“Deferrals” means the amount of the Director’s Fees, which the Director elects to defer according to this Agreement. 

  

	 	1.6	“Disability” means the Director’s suffering a sickness, accident or injury which has been determined by the carrier of any individual or group disability
insurance policy covering the Director, or by the Social Security Administration, to be a disability rendering the Director totally and permanently disabled. The Director must submit proof to the Company of the carrier’s or Social Security
Administration’s determination upon the request of the Company. 

  

	 	1.7	“Effective Date” means August 1, 2003. 

  

	 	1.8	“Election Form” means the Form attached as Exhibit 1. 

  

	 	1.9	“Fees” means the total fees payable to the Director during a Plan Year for board meetings and committee meetings. 

  

	 	 1.10
	 “Normal Retirement Age” means the later of the Director’s 60th birthday or the last day of the fifth Plan Year. 

  

	 	1.11	“Normal Retirement Date” means the later of the Normal Retirement Age or Termination of Service. 

  

	 	 1.12
	 “Plan Year” means the twelve month period beginning on August 1st and ending on the following July 31st. 

 

	 	1.13	“Termination of Service” means that the Director ceases to be a member of the Company’s Board of Directors for any reason, voluntary or involuntary, other than
by reason of a leave of absence approved by the Company. 

 Article 2 
 Deferral Election 
 2.1 Initial
Election. The Director shall make an initial deferral election under this Agreement by filing with the Company a signed Election Form within 30 days after the Effective Date of this Agreement. The Election Form shall set forth the amount of Fees
to be deferred and shall be effective to defer only Fees earned after the date the Election Form is received by the Company. The minimum deferral permitted by the Director under this Agreement is 25% of the 

  

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Director’s Fees. 
 2.2 Election
Changes 
 2.2.1 Generally. Upon the Company’s approval, the Director may modify the amount of Fees to
be deferred annually by filing a new Election Form with the Company prior to the beginning of the calendar in which the Fees are to be deferred. The modified deferral election shall not be effective until the calendar year following the year in
which the subsequent Election Form is received and approved by the Company. 
 2.2.2 Hardship. If an unforeseeable
financial emergency arising from the death of a family member, divorce, sickness, injury, catastrophe or similar event outside the control of the Director occurs, the Director, by written instructions to the Company, may reduce future deferrals
under this Agreement. 
 Article 3 
 Deferral Account 
 3.1 Establishing and Crediting. The Company shall establish a Deferral Account on its books for
the Director and shall credit to the Deferral Account the following amounts: 
 3.1.1 Deferrals. The Fees deferred by
the Director as of the time the Fees would have otherwise been paid to the Director. 
 3.1.2 Interest. At the end of
each Plan Year under this Agreement and immediately prior to the payment of any benefits, but only until commencement of the benefit payments under this Agreement, unless otherwise stated, interest is to be credited on the account balance at an
annual rate equal to Crediting Rate 1, compounded monthly. 
 3.2 Statement of Accounts. The Company shall provide to the Director,
within 120 days after the end of each Plan Year, a statement setting forth the Deferral Account balance. 
 3.3 Accounting Device
Only. The Deferral Account is solely a device for measuring amounts to be paid under this Agreement. The Deferral Account is not a trust fund of any kind. The Director is a general unsecured creditor of the Company for the payment of benefits.
The benefits represent the mere Company promise to pay such benefits. The Director’s rights are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the
Director’s creditors. 
 Article 4 
 Benefits During Lifetime 
 4.1 Normal Retirement Benefit. Upon the Normal Retirement Date, the
Company shall pay 

  

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to the Director the benefit described in this Section 4.1 in lieu of any other benefit under this Agreement. 
 4.1.1 Amount of Benefit. The benefit under this Section 4.1 is the Deferral Account balance at the Director’s Normal
Retirement Date. 
 4.1.2 Payment of Benefit. The Company shall pay the benefit to the Director in one hundred twenty
equal monthly installments commencing with the month following the Director’s Normal Retirement Date. The Company shall credit interest at an annual rate of four percent (4.0%), compounded monthly, on the remaining account balance during any
applicable installment period. 
 4.2 Early Retirement Benefit. Upon Termination of Service prior to the Normal Retirement Age for
reasons other than death, Change of Control or Disability, the Company shall pay to the Director the benefit described in this Section 4.2 in lieu of any other benefit under this Agreement. 
 4.2.1 Amount of Benefit. The benefit under this Section 4.2 is the Deferral Account balance at the Director’s Termination
of Service plus interest, as defined in Section 4.2.2, from the Director’s Termination of Service to the Normal Retirement Age. 
 4.2.2 Payment of Benefit. The Company shall pay the benefit to the Director in one hundred twenty equal monthly installments commencing with the month following the Director’s Normal Retirement Age. The
Company shall credit interest at an annual rate of four percent (4.0%), compounded monthly,] on the remaining account balance from Termination of Service through any applicable installment period. 
 4.3 Disability Benefit. If the Director terminates service as a Director due to Disability prior to Normal Retirement Age, the Company shall pay
to the Director the benefit described in this Section 4.3 in lieu of any other benefit under this Agreement. 
 4.3.1
Amount of Benefit. The benefit under this Section 4.3 is the Deferral Account balance at the Director’s Termination of Service. 
 4.3.2 Payment of Benefit. The Company shall pay the benefit to the Director in one hundred twenty equal monthly installments commencing with the month following the Director’s Termination of Service. The
Company shall credit interest at an annual rate of four percent (4.0%), compounded monthly, on the remaining account balance during any applicable installment period. 
 4.4 Change of Control Benefit. Upon a Change of Control, the Company shall pay to the Director the benefit described in this Section 4.4 in lieu of any other benefit under this Agreement. 
 4.4.1 Amount of Benefit. The benefit under this Section 4.4 shall be the Deferral Account balance at the Director’s
Termination of Service. 
  

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 4.4.2 Payment of Benefit. The Company shall pay the benefit to the Director in a
lump sum within 60 days after the Director’s Termination of Service. 
 4.5 Hardship Distribution. Upon the Board of
Director’s determination (following petition by the Director) that the Director has suffered an unforeseeable financial emergency as described in Section 2.2.2, the Company shall distribute to the Director all or a portion of the Deferral
Account balance as determined by the Company, but in no event shall the distribution be greater than is necessary to relieve the financial hardship. 
 Article 5 
 Death Benefits 
 5.1 Death During Active Service. If the Director dies while in the active service of the Company, the Company shall pay to the Director’s beneficiary the benefit described in this Section 5.1 in lieu
of any other benefit under this Agreement. 
 5.1.1 Amount of Benefit. The benefit under this Section 5.1 is the
Deferral Account balance at the Director’s death. 
 5.1.2 Payment of Benefit. The Company shall pay the benefit
to the beneficiary in a lump sum within 60 days following the Director’s death. 
 Article 6 
 Beneficiaries 
 6.1 Beneficiary
Designations. The Director shall designate a beneficiary by filing a written designation with the Company. The Director may revoke or modify the designation at any time by filing a new designation. However, designations will only be effective if
signed by the Director and acknowledged by the Company during the Director’s lifetime. The Director’s beneficiary designation shall be deemed automatically revoked if the beneficiary predeceases the Director or if the Director names a
spouse as beneficiary and the marriage is subsequently dissolved. If the Director dies without a valid beneficiary designation, all payments shall be made to the Director’s estate. 
 6.2 Facility of Payment. If a benefit is payable to a minor, to a person declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Company may require proof of incompetence,
minority or guardianship as it may deem appropriate prior to distribution of the benefit. Such distribution shall completely discharge the Company from all liability with respect to such benefit. 
 Article 7 
 General Limitations 

  

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 7.1 Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the
Company shall not pay any benefit under this Agreement that is in excess of the Director’s Deferrals (i.e. the interest earned on the Deferral Account) if the Company terminates the Director’s service for: 
 (a) Gross negligence or gross neglect of duties to the Company; 
 (b) Commission of a felony or of a gross misdemeanor involving moral turpitude in connection with the Director’s service to the
Company; or 
 (c) Fraud, disloyalty, dishonesty or willful violation of any law or significant Company policy committed in
connection with the Director’s service and resulting in an adverse effect on the Company. 
 The Director’s Deferrals shall be paid to the Director
in a manner to be determined by the Company. No interest shall be credited on the Deferrals during any applicable installment period. 
 Article 8 
 Claims and Review Procedures 
 8.1 Claims Procedure. An Director or beneficiary (“claimant”) who has not received benefits under the Agreement that he or she believes should be paid shall make a claim for such benefits as
follows: 
 8.1.1 Initiation – Written Claim. The claimant initiates a claim by submitting to the Company a
written claim for the benefits. 
 8.1.2 Timing of Company Response. The Company shall respond to such claimant
within 90 days after receiving the claim. If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 90 days by notifying the claimant in
writing, prior to the end of the initial 90-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 
 8.1.3 Notice of Decision. If the Company denies part or all of the claim, the Company shall notify the claimant in writing
of such denial. The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth: 
 8.1.3.1 The specific reasons for the denial, 
 8.1.3.2 A reference to the specific provisions
of the Agreement on which the denial is based, 
  

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 8.1.3.3 A description of any additional information or material necessary for the
claimant to perfect the claim and an explanation of why it is needed, 
 8.1.3.4 An explanation of the Agreement’s review
procedures and the time limits applicable to such procedures, and 
 8.1.3.5 A statement of the claimant’s right to bring
a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 
 8.2 Review Procedure.
If the Company denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows: 
 8.2.1 Initiation – Written Request. To initiate the review, the claimant, within 60 days after receiving the
Company’s notice of denial, must file with the Company a written request for review. 
 8.2.2 Additional
Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Company shall also provide the claimant, upon request and
free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits. 
 8.2.3 Considerations on Review. In considering the review, the Company shall take into account all materials and information
the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 
 8.2.4 Timing of Company Response. The Company shall respond in writing to such claimant within 60 days after receiving the request for review. If the Company determines that special circumstances require
additional time for processing the claim, the Company can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of
extension must set forth the special circumstances and the date by which the Company expects to render its decision. 
 8.2.5
Notice of Decision. The Company shall notify the claimant in writing of its decision on review. The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

 8.2.5.1 The specific reasons for the denial, 
 8.2.5.2 A reference to the specific provisions of the Agreement on which the denial is based, 
  

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 8.2.5.3 A statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits, and 
 8.2.5.4 A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 
 Article 9 
 Amendments and
Termination 
 This Agreement may be amended or terminated only by a written agreement signed by the Company and the Director.

 Notwithstanding the previous paragraph in this Article 9, the Company may amend or terminate this Agreement at any time if, pursuant to
legislative, judicial or regulatory action, continuation of the Agreement would (i) cause benefits to be taxable to the Director prior to actual receipt, or (ii) result in significant financial penalties or other significantly detrimental
ramifications to the Company (other than the financial impact of paying the benefits). In no event shall this Agreement be terminated under this section without payment to the Director of the Deferral Account balance attributable to the
Director’s Deferrals and interest credited on such amounts. 
 Article 10 
 Miscellaneous 
 10.1 Binding Effect. This Agreement shall bind the
Director and the Company, and their beneficiaries, survivors, executors, administrators and transferees. 
 10.2 No Guarantee of
Service. This Agreement is not a contract for services. It does not give the Director the right to remain in the service of the Company, nor does it interfere with the shareholders’ rights to replace the Director. It also does not require
the Director to remain in the service of the Company nor interfere with the Director’s right to terminate services at any time. 
 10.3
Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner. 
 10.4 Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement. 
 10.5 Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the State of South Carolina, except to the extent preempted by the laws of the United States of America. 

 

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 10.6 Unfunded Arrangement. The Director and the Director’s beneficiary are general unsecured
creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere promise by the Company to pay such benefits. The 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 Director’s life is a general asset of the Company to which the Director and the Director’s beneficiary have no preferred or secured claim.

 10.7 Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially
all of its assets to another company, firm, or person unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term
“Company” as used in this Agreement shall be deemed to refer to the successor or survivor company. 
 10.8 Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the Director as to the subject matter hereof. No rights are granted to the Director by virtue of this Agreement other than those specifically set forth herein. 

10.9 Administration. The Company shall have powers which are necessary to administer this Agreement, including but not limited to: 

(a) Interpreting the provisions of the Agreement; 
 (b) Establishing and revising the method of accounting for the Agreement; 
 (c) Maintaining a record of benefit payments; and 
 (d) Establishing rules and prescribing any forms necessary or desirable to administer the Agreement. 
 10.10 Named Fiduciary. The Company shall be the named fiduciary and plan administrator under the Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the plan including the Service of advisors and the delegation of ministerial duties to qualified individuals. 
 IN WITNESS WHEREOF, the Director and a duly authorized Company officer have signed 

  

 9 

 
this Agreement. 
  

					
	Director	 	Company
		
		 	CAPITALBANK
			
	 /s/ Lex D. Walters
	 	By	 	 /s/ R. Wesley Brewer

	LEX D. WALTERS	 	Title	 	CFO

  

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